Having a credit card can be a good way to build a responsible credit history. Understanding the cards is important, so that a consumer always makes educated choices. This is a listing of top credit tips to help make great credit choices.
Check the details and fine print. If you receive a pre-approved card offer, make sure you understand the full picture. It’s important to know what your interest rate is and will be in the future. Furthermore, make sure you are aware of potential fees or billing grace periods.
Ensure you don’t overspend by carefully tracking your spending habits. It can be easy to spend more on your credit card than you intended, so make the decision to keep a total on a spreadsheet or in a written record.
Make sure you know what your interest rate will be with a given credit card. This is very important: prior to singing up with a credit card company, be sure you know what rate you’re paying. When you don’t know this, you could possibly have a much higher rate than you anticipated. If you have to pay a lot of interest, then it may be impossible for you to make your monthly payments.
Get into the habit of paying your credit cards billing on a timely basis. Every bill you receive will have a due date and failing to pay by then will result in penalties and costly fees. Also, you run the risk of having your interest rate increased.
If you want a brand new credit card, try limiting the search to those with lower interest rates and that do not have annual fees. There are so many credit card companies that a card with annual fees is just a waste.
Never, ever use your credit card to purchase something that you cannot afford. Just because you want a new flat-screen TV, doesn’t mean a credit card is the best way to buy it. Not only will you be saddled with interest, it may cause your monthly payments to become too high for you to keep up with. Take your time outside of the store before making a purchase. If you still decide to purchase it, the store’s financing usually gives low interest rates.
When signing a credit cards receipt, make sure you do not leave a blank space on the receipt. If there is a blank for a tip, cross it out so that a tip cannot be written in after you’ve signed. Additionally, check your credit statements to ensure that the recorded purchases match your expectations and your receipts.
As was stated at the start of this article, when used wisely credit cards can help you build your credit and manage your finances. It is important that you understand everything about your cards, because that will lead you to make better decisions where they are involved. Having a good understanding of the basics related to credit cards can help consumers make smart decisions in using their credit cards.