Tips For Successful Credit Card Ownership

Donna Lewis

TIP! Many people misuse their credit cards. While some situations understandably cause debt, too many people abuse credit cards and go into debt.

Many people find charge cards to be frustrating. With the right advice, living with credit cards isn’t all that bad. Keep reading to find great advice for making informed decisions about your credit.

TIP! Paying only the minimum payment on your credit cards will result in the lenders getting a lot of money from you over time and it taking you forever to fully pay off your cards. Pay more than the minimum payment.

You should try to have at least two open cards or possibly three open credit accounts. This is especially helpful when building a good credit score, but remember these cards should be paid in full monthly. Do not over-do it. Having more than three charge cards can concern a lender looking at your credit report.

Interest Rate

TIP! Don’t use credit cards to buy items that are too expensive for you to afford. You might want a flat-screen television, but that doesn’t mean that you should use your credit card to buy it.

Know what interest rate your card comes with. You should never sign up for any credit card without knowing the interest rate. If you do not know, you could end up paying much more than the original price. When your interest rate is higher than you expected, paying off the card each month becomes more difficult.

TIP! Be careful when you use credit cards to make purchases online. Ensure the site is secure before entering any credit card information online.

Understand the terms and conditions for any credit card prior to agreeing to the use of the card. You may find that the interest rate, payment schedule and fees, are more than what you initially thought they would be. Make sure to read each word of your credit card policy.

TIP! Prior to shopping online with a credit card, it is important to know that you are buying from a reputable merchant. You do not want to deal with a merchant that does not provide a physical address on his or her site.

Be careful when you choose to use your credit card for payments online. Ensure the site is secure before entering any credit card information online. A secure site keeps your credit card information safe. In addition, do not respond to email requests for credit card data; they are not legitimate.

TIP! Keep an eye on your credit rating. 700 is generally the minimum score necessary to be considered a solid credit risk.

It happens to almost everyone. “You have been pre-approved for a credit card!” You may be looking for a new one, but you might not be. When you dispose of this mail, make sure to tear it up. Do not simply toss it away, as many of these letters contain your personal information.

Interest Rate

TIP! Always keep your credit card accounts open, if possible. Unless you have to, don’t change accounts.

Never believe your offered interest rate is absolute and should remain this way. Credit card issuers have several interest rates they can use at their discretion. If you do not like your current interest rate, contact your bank and request that they lower it.

TIP! Never provide your card number online or over the phone without really knowing the company that you are in contact with. Be weary if you’re receiving unsolicited offers that require you to give out your credit card number.

As this article previously discussed, people often get frustrated and disappointed by their credit card companies. However, if you do your homework, choosing the right card and using it properly is easy. Make sure you have all the information about the costs associated with using your credit card.