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November 18, 2012

How To Be A Wise Credit Card Consumer

Many people have used charge cards ever since they can remember. It can be hard to manage charge cards without some knowledge or helpful advice. Keep reading to learn more about managing your credit cards well.

Credit Card

Do not close credit card accounts until you understand the impact it may have. There are things that can happen that negatively affect your credit score when you close a credit card account. In addition, it’s good to keep the credit cards associated with your credit history active and in good standing.

TIP! Beware of cards that offer introductory interest rates of 0%. They sound too good to be true, because oftentimes they are.

If you ask an expert, they will recommend that you should not have a credit limit greater than three-quarters of the income you bring in every month If you have credit limits that are more than you make every month, you need to start paying off that debt right away. This is because the interest you are paying will quickly snowball out of control.

Check your receipts to verify your credit card purchases before you leave the store. Doing this ensures that, if you catch a mistake, you can get it fixed immediately instead of waiting, which may cause you to forget.

Credit Card

As tempting as it can be, don’t get a credit card that has yearly fees. These days, there’s so much competition that you could easily find a credit card without any annual fees. In the longer term, these types of fees can amount to a great deal of money.

TIP! All credit cards come with a spending limit. Make certain this limit isn’t exceeded, and get in the practice of only using your credit card in a financial emergency.

If you have the money to do so, pay your entire balance on your credit statement monthly. If you pay in full now before the interest starts piling up, you can save a lot of money. Using the credit is good for your credit score, and paying off the balance ensures that you will not be paying finance charges.

Never give anyone credit card numbers on the Internet or on the phone unless you know and trust the company. Be extra careful if you receive an unsolicited offer for which credit card information is requested. There are numerous scams around that all wish to obtain your credit card information. Be relentless in protecting yourself.

TIP! If you want to have more money, be sure you approach the company that issued your credit card for a lower interest rate. If you maintain a good history with your company and have always made payments on time, you should be able to come up with a better rate.

Lots of cards give large bonuses simply for signing up. Be sure that you fully understand the fine print, though, because many of these cards have very specific terms that you must meet to qualify for the bonus. For instance, it could be listed in your contract that you can only receive a bonus if you spend X amount of money every period. If this is something you’re not comfortable with, you need to know before you enter a contract.

Credit Card

TIP! Never provide your card number online or over the phone without really knowing the company that you are in contact with. If you’re getting unsolicited offers that require a card number, you should be suspicious.

It is important to be knowledgeable of credit card legislation passed in recent years. For example, credit card companies cannot impose retroactive rate increases. They are also not allowed to engage in double-cycle billing. Know what the laws are. You should pay especially close attention to both Fair Credit Billing and the CARD Acts.

You can avoid the negative financial consequences of using a credit card by spending wisely, paying on time and learning about all the costs associated with making purchases. However, the right advice can help you to get a grip on the way you use your cards. Take heed of the advice featured above and managing your charge cards will become simple.

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