Friday, October 11, 2013

The Right Way Of Using Credit Cards

By Marian Scott


With all of the credit card horror stories out there, it is no wonder that some people are afraid of credit cards. There is no reason to fear owning a credit card. They help to build your financial history and credit score, making it easier for you to get loans and low interest rates. The following article contains some valuable credit card advice.

Should you notice a charge that is fraudulent on any credit card, immediately report it to the credit card company. When you do that, you will give the credit company a good chance of making sure the thief is caught. Doing this also helps ensure that you will not have to pay for such charges. You can usually report fraudulent activity through a quick telephone call to your credit company.

By keeping track of all your credit card purchases, this will help you from spending more money than you can actually afford. It is quite easy to lose track of what you are using your credit card for, so you should commit yourself to keeping track of all of these expenditures in either a small business accounting software or on a spreadsheet.

Do not get credit cards the minute that you are old enough to get them. Although people love to spend and have credit cards, you should truly understand how credit works before you decide to establish it. See how adult life is before you decide to get your very first credit card.

Always make certain you are monitoring your credit score. Good credit typically starts around the 700 range. Boost or maintain your credit score by using credit appropriately. Once you have a credit score of around 700 or more, you'll be offered excellent credit offers with very low rates.

It is commonly thought that high limits on credit cards should never exceed 3/4 of a consumer's monthly pay. If your balances exceed one month's pay, try to repay them as quickly as possible. That is simply due to the fact that you will end up paying an extremely large amount of interest.

Be sure to regularly monitor your credit card transactions. Sign up to receive mobile alerts if they are offered by your provider. This way, irregular activity can be questioned immediately. If you are aware of suspicious account activity, call the authorities immediately.

If you're not able to pay back something on a credit card bill, you may damage your credit rating. This can make it difficult to rent accommodation, get insurance or even become employed.

Go through old credit accounts and close the ones you don't use. Closure of old accounts makes it less likely that they will be used fraudulently. You can also close an account that you no longer want to use, even if there is a balance on the account. You simply pay the balance off after you close the account.

It can be tempting to break out your credit card for every purchase, especially if you earn rewards; however, if the purchase is very small, opt for cash instead. Lots of retailers have a minimum amount for credit usage, so you may end up purchasing extra to reach this. Save your credit card for purchases of $10 or more.

Anyone who is scared to use their credit card should feel better after reading this article. Credit cards can be a useful tool when used correctly, and should not be feared. Just keep the given advice in mind and you should be fine.




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