With all of the credit card horror stories out there, it is no wonder that some people are afraid of credit cards. It is not necessary to fear credit cards. After all, credit cards are extremely useful when you find yourself in a situation where you need to buy an item but you don’t have any cash on you. Read on to find tips and advice for using your credit cards in an educated and beneficial way.
Decide what rewards you would like to receive for using your credit card. There are many options for rewards that are offered by credit card companies to entice you to applying for their card. Some offer miles that can be used to purchase airline tickets. Others give you an annual check. Choose a card that offers a reward that is right for you.
Do not accept the first credit card offer that you receive, regardless of how good it sounds. While you may be tempted to jump on an offer, you do not want to take any chances that you will end up signing up for a card and then, seeing a better deal shortly after from another company.
If you need to use credit cards, it is best to use one credit card with a larger balance, than 2, or 3 with lower balances. The more credit cards you own, the lower your credit score will be. Use one card, and pay the payments on time to keep your credit score healthy!
Never keep a written record of your pin number or password. You have to take the time to memorize these passwords and pin numbers to ensure that only you know what they are. If you write down these passwords or pins, you could potentially give someone who you do not want to have access to your accounts an open door to them.
Check out the integrity of your seller before using your credit card for online purchases. Call the company to talk with representatives and never buy from a merchant that does not provide a physical address.
Many companies advertise that you can transfer balances over to them and carry a lower interest rate. This sounds appealing, but you need to carefully consider your options. Think about it. If a company consolidates a higher amount of money onto one card and then the interest rate spikes, you are going to have a hard time making that payment. Know all the terms and conditions, and be careful.
An important tip when it comes to smart credit card usage is, resisting the urge to use cards for cash advances. By refusing to access credit card funds at ATMs, you will be able to avoid the frequently exorbitant interest rates, and fees credit card companies often charge for such services.
Hopefully, the advice about credit cards will help you alleviate your unnecessary fear of using credit cards for purchases. When used properly, credit cards are a great convenience and a useful tool for improving your financial life. Always remember the good advice you have been given and you will not have any problems.