Check Out This Great Credit Card Advice
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Posted on: 08/30/22
It can be tempting to put charges on your credit card every time you cant afford something, but you probably know this isnt the right way to use credit. You may not be sure what the right way is, however, and thats how this article can help you. Read on to learn some essential things about credit card use, so that you use your credit card properly from now on.
Make friends with your credit card issuer. Most major credit card issuers have a Facebook page. They might offer perks for those that "friend" them. They also use the forum to address customer complaints, so it is to your advantage to add your credit card company to your friend list. This applies, even if you dont like them very much!
Carefully consider those cards that offer you a zero percent interest rate. It may seem very alluring at first, but you may find later that you will have to pay sky high rates down the road. Learn how long that rate is going to last and what the go-to rate will be when it expires.
Always know what your utilization ratio is on your credit cards. This is the amount of debt that is on the card versus your credit limit. For instance, if the limit on your card is $500 and you have a balance of $250, you are using 50% of your limit. It is recommended to keep your utilization ratio of around 30%, in order to keep your credit rating good.
Be cautious when you are using credit cards online. Before entering any of the information for your credit card, ensure that the website you are on is completely secure. Secure sites protect your card information from being stolen. Additionally, ignore those emails that want your credit card information, because these are attempts to steal your credit identity.
If you ever have a charge on your card that is an error on the credit card companys behalf, you can get the charges taken off. The way you do this is by sending them the date of the bill and what the charge is. You are protected from these things by the Fair Credit Billing Act.
If you find that you cannot pay your credit card balance in full, slow down on how often you use it. Though its a problem to get on the wrong track when it comes to your credit cards, the problem will only become worse if you allow it to. Try to stop using your cards for awhile, or at least slow down, so you can avoid owing thousands and falling into financial hardship.
Do your research on the best rewards cards. Whether you are interested in cash back, gifts, or airline miles, there is a rewards card that can really benefit you. There are many out there, but there is a lot of information available online to help you find the right one. Be careful to not carry a balance on these rewards cards, as the interest you are paying can negate the positive rewards effect!
It is an excellent idea to open one credit card account that you do not use. Tuck this credit card away for emergency expenses. Exercise discipline in this matter. Your emergency credit card should only be used in real "last resort" situations. If you ever have to use it, pay it off as quickly as possible after the emergency has passed.
If youve been guilty of using your credit card incorrectly, hopefully, you will reform your ways after what you have just read. Dont try to change all your credit habits at once. Use one tip at a time, so that you can develop a more healthy relationship with credit and then, use your credit card to improve your credit score.