Credit cards have gotten a very bad rap over the last few years. This article will show you how credit cards can be used to your advantage, how to keep from making mistakes that can cost you, and most importantly, how to get yourself out of trouble if you’ve already waded in too deep.
When you are unable to pay off one of your credit cards, then the best policy is to contact the credit card company. Letting it just go to collections is bad for your credit score. You will find that most companies will let you pay it off in smaller amounts, as long as you don’t keep avoiding them.
Keep track of how much money you are spending when using a credit card. Small, incidental purchases can add up quickly, and it is important to know how much you have spend on them, so you can understand how much you owe. You can keep track with a check register, spreadsheet program, or even with an online option offered by many credit card companies.
Speak with the credit card company right after you see a charge on your statement that you did not make. This will help your creditor catch the person who is using your card fraudulently. Also, by notifying the credit card company immediately, you can ensure that you aren’t in any way responsible for the charges. It is fairly simple to report erroneous charges, either with an email or phone call to the credit card company.
Learn how to responsibly handle your credit card accounts. Although it is possible to get into debt in times of crisis, it should not be a regular occurrence under ordinary circumstances or a result in spending beyond your means, which leaves you with payments you cannot make. Ensure that your balance is paid in full each month. This will help you establish credit and improve your credit rating.
Check your credit report regularly. By law, you are allowed to check your credit score once a year from the three major credit agencies. This may be often enough, if you use credit sparingly and always pay on time. You may want to spend the extra money, and check more often if you carry a lot of credit card debt.
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.
Those people looking to acquire a new card should look for no annual fee, lower interest rates and lots of perks. There are many credit cards available with no annual fee, so choose one of these to save you money.
Some people need help getting out of a jam that they have created, and others are trying to avoid the pitfalls that they know are out there. Regardless of which camp you came from, this article has shown you the best ways to use credit cards and avoid the deep debt that comes along with them.