Many people have used credit cards ever since they can remember. As is the case with many topics, credit cards can be vexing without the right type of information. This article will go over some tips that can help you learn a little more on the subject of credit cards.
Exercise some caution before you start the process of applying for a credit card offered by a retail store. When a retail store inquires about your credit prior to opening an account, that inquiry is recorded on your report whether you go through with opening a card or not. A report that is peppered with too many credit inquiries like those made by retail stores can hurt your overall credit score.
You should develop a budget for your credit card usage. Your income is already budgeted, so make sure you make an allowance for credit card payments within this. Do not consider your available credit as extra income. Set a limit for yourself on how much you are able to spend for your credit card every month. Don’t go over that amount, and pay the balance off every month.
When you use a credit card online, keep a copy of your sales receipt. Retain the receipt until the bill arrives so you can ensure that you were charged the proper amount. If they mis-charged you, first contact the company, and if they do not fix it, file a dispute with your credit company. This will ensure you don’t get overcharged for your purchases.
Don’t let anyone else use your credit cards. Even if it is a great friend of yours, that should still be avoided. This can lead to your friendship being ruined. Or it can result in over the limit charges should your friend charge more than you authorized.
If you don’t like the interest rate you are being charged, feel free to ask your credit card company to change it. Make it clear you are considering closing your account, and if they still won’t help you out, look for a better company. If you find a card with better interest rates, switch credit card companies so that you can more easily meet your needs.
Try to avoid paying for grocery and restaurant bills on a credit card because they sometimes take a long time to show up on your statement and you will underestimate your available balance. This may result in you spending too much money when you see an artificially low balance.
Be aware of recent credit card laws. For example, a credit card company cannot increase your interest rate retroactively. The companies are also not allowed to bill in a double-cycle. Research the relevant laws. Two primary changes that have occurred in recent years involve the Fair Credit Billing Act and the CARD Act.
As discussed previously, frustration and confusion can often come with attempting to understand your credit card accounts. If you know how to use them, though, they do not have to cause you trouble. You can better handle your credit cards with this article’s advice.
