When you think of fiscal responsibility, what are the words that come to mind? Many people think of stocks, bonds, or saving, but few people consider Credit Cards to be responsible. The truth is, that most successful people do use credit cards, however, they are responsible with their usage.
Always review the fine print on your credit card disclosures. If you receive an offer touting a pre-approved card, or a salesperson offers you help in getting the card, make sure you know all the details involved. Find out what your interest rate is and the amount of you time you get to pay it. Be sure to also find out about grace periods and fees.
When you are looking over all of the rate and fee information for your credit card make sure that you know which ones are permanent and which ones may be part of a promotion. You do not want to make the mistake of going for a card with very low rates and then they balloon shortly after.
Make sure that you pore over your credit card statement each and every month, to make sure that every single charge on your bill has been authorized by you. Many people fail to do this and it is much harder to fight fraudulent charges after a lot of time has passed.
To make the best decision regarding the best credit card for you, compare what the interest rate is amongst several credit card options. If a card has a high interest rate, it means that you will pay a higher interest expense on your card’s unpaid balance, which can be a real burden on your wallet.
You want to try and avoid the fee for going over your limit just as much as late fees. Both fees can be very pricey, both to your wallet and your credit report. Don’t pass your credit limit or you will suffer.
Do not hesitate to pay off your card balances, in full, each month. In general, it’s best to use credit cards as a pass-through, and pay them before the next billing cycle starts, instead of as a high-interest loan. Your credit score benefits from the credit card use, and you won’t have finance charges if paid in full.
If you are having trouble making your payment, inform the credit card company immediately. When you fear you must pay late, talking things out with your company ahead of time often results in an offer of help from them. This can help make them not turn in a report to a reporting agency about a late payment.
Pay your minimum payment on time each month, to avoid more fees. If you can afford to, pay more than the minimum payment so that you can reduce the interest fees. Just be sure to pay the minimum amount before the due date.
If you would like to use a credit card, you must understand the ins and outs. This is because the truth is that credit cards, while useful, can also be dangerous in the wrong hands. You need to be aware of the common traps that happen with credit usage, in order to avoid them.