Even though it is necessary to have some cash on you, the future of finance depends on charge cards. As banks ramp up fees for debit cards and regular accounts, a growing number of individuals are just using bank cards for all their electronic money storage and transactions. Continue reading to find out how these cards work and how to use them properly.
You may want to find a co-signer if you don’t have enough credit to get your own card. Anyone with established credit can be a co-signer. They must be willing to sign stating they will pay the balance due on the card if you do not pay it. This can help you get a first credit card, and start building your own credit.
Actual Due Date
Figure out if your payment date is a suggested due date or a true due date. Some companies are giving out the suggested due date rather than the real due date. This could be 15 days before the actual due date. It would be helpful to know what day your actual due date falls on so you can get all of the money together.
If you want a secure card, dismiss the idea of getting one that is prepaid. Prepaid cards are not actually charge cards, they are debit cards, and their use isn’t reported to credit bureaus. In addition, a number of them also charge additional fees, and they are really only another checking account. Place a deposit and get a proper secured credit card which will report to all major credit bureaus and raise your credit score.
Try to avoid using cards that have annual fees. Generally, cards with no annual fees are given to people who have better credit scores. An annual fee can quickly cancel out any rewards a card offers. Do the calculations. These fees are usually not heralded by credit card companies; they can usually be read in the small print of the terms and conditions. Dig out the reading glasses and take a good look at the terms. Look at the small print to determine if the fees of using the card outweigh all of the benefits. More often than not, the fees lessen any rewards the card may carry.
Always be sure to carefully look over credit card statements. Try to find anything that doesn’t seem accurate and look for charges you may not have made. Immediately report any inaccurate charges to the credit card company. This will help you reduce the amount you pay and will raise your credit score.
Any credit card you don’t use should be cancelled. Keeping them open makes it easier for you to be a victim of identity theft. You could be charged fees if you are holding a card you don’t use.
If you think that your credit card has too high of an interest rate, don’t be scared to have a discussion with the company. Don’t hesitate to give them a call and see if they can’t lower the rate for you. Many times, you will find that they are willing to lower your rate in order to keep you as a customer.
If you see a charge on your card that isn’t yours, talk to your credit card issuer immediately. By doing this, you will help the card company to catch the person responsible. This is also the best way to make sure that you are not held responsible for these charges. Many false charges can be fixed with a simple phone call.
If you use more than one credit card, try singling one out and paying it off monthly. Even if you need to carry a hefty balance on your other cards, having a card that you use and pay off every month can build a stronger credit history.
Credit cards have become the preferred payment method for people that do not like the charges and regulations that are imposed on debit cards. You can also use the benefits that bank cards offer thanks to its increased use. Implement the information you have gleaned from this article to work to your best advantage.
Article By Your Debt Relief Company