September 18, 2019

Curious About Credit Cards? Dig In With These Credit Tips

Credit cards can give you a lot of points for things like vacations, leaving your wallet happy. Other people who do not utilize the advantages of credit cards may charge their vacation expenses and be faced will a stressful bill later. If you want to learn to use credit cards wisely, keep reading this article.

Keeping two or three credit card accounts open is a sound financial practice. This will assist you in raising your credit rating if you pay all balances in full monthly. If you have too many cards open at a time, it may be difficult for you to find a loan, as too many cards on your credit report can be a red flag to lenders.

Do not close any credit card accounts without finding out how it affects your credit report. In some circumstances, closing credit card accounts can negatively affect the credit report, which is something that should be avoided. Also, try to keep the cards open that make up the majority of your credit history.

Always track your credit card purchases, so that you do go over budget. Sometimes plastic makes it easy to lose track of your spending decisions, which can result in you owing more than you can afford to pay.

A cosigner can help you obtain a credit card if you have yet to establish credit. Anyone who has an established credit score can cosign, such as a friend, parent, or sibling. Your co-signer will be legally obligated to make payments on your balance if you either do not or cannot make a payment. That can be a terrific method of acquiring a first card for credit building purposes.

If you are desperate to get approval for good credit cards, make sure that you keep an eye on your credit score. Credit scores are always used by card issuers to decide which cards an individual consumer may receive. You must carry great credit to take advantage of the lower rates, cash back offers or points programs that are promoted by the card companies.

Keep a list of the “lost/stolen card” phone numbers for each of your credit card issuers along with your credit card number for reference. Keep it in a safe spot, such as a safety deposit box, separate from all of your cards. The list will assist you in promptly notifying card lenders should you lose your cards or have them stolen.

If you have a spotty credit record, think about getting a secured card. These cards require that you first have a savings account established with the company, and that account will serve as collateral. What these cards let you do is borrow money from yourself and you will pay interest to do so. This is not a perfect situation, but it can help rebuild damaged credit. If you want a secured credit card, stick with large, well-established credit card companies. They may later offer an unsecured card to you, and that will boost your credit score even more.

Avoid closing accounts. Although you may think this will improve your credit, it could actually hurt your credit score. The reason is due to the fact that you’re subtracting from the credit amount that you have. This lowers your ratio between your credit and the amount you owe.

While secured cards can prove beneficial for boosting your credit, don’t use any prepaid cards. Prepaid cards are essentially debit cards, so your activity with them does not improve your credit. They do not offer any advantages over a checking account and may charge additional fees. By putting a deposit down to obtain a secured card, your credit score will begin to improve.

Always check all the extra fees that your credit card carries so you don’t have any surprises. Sometimes, all the additional fees and charges end up making the card too expensive.

You can benefit from a credit card even if it does not offer you any type of rewards. The convenience and fun of using a credit card without giving the matter any real thought can often send the user into a stressful downward spiral of debt. It is better to heed some wise credit card advice. Use the information here to decide which group you belong to.

Shane Marine is owner of the Consumer Assistance Center based in Tampa FL. Shane has pledged his career towards providing individuals the tools needed to handle aggressive unsecured debt collection practices.

Shane helps individuals by means of his website http://myassistancecenter.com where one can easily register free of charge and have access to a treasure trove of information and sample letters.