Credit cards are a responsible means of money once you remain informed and respectful of them. To help you in your quest, we’ve compiled a list of great credit card tips to ensure you don’t.
Knowledge is Power
Knowing the sort of card that best suits you and what you can expect from your card is so important and can really mean a card is a friend or a foe. Of course, the card you get is down mainly to your history – so, we’d advise you to pull your credit history first and take a look. This will show you how likely you are to get the card you wish.
Credit reports offer a good idea of what you can expect from your application, however they’re not always right and with a little bit of work you can change things around to suit you. Check for mistakes on your credit report and contact the company if there are. These factors, though not true, may still affect your score and rectifying them is something that must be done.
Depending on the credit score you have, you now have a choice of card. Credit cards with benefits and free perks can be ideal for some, whereas low interest rates and long days of interest free fees are perfect for others. Decide on what card could be best for you.
Even when you choose a card that’s within one of the brackets – low interest, perks or a card for those with poor credit, you should then compare different products within that sector. There can be a significant difference and all is not often as it seems, meaning you should be careful to compare credit card benefits. For instance cards with low APR may seem appealing, but may have high late fees and this can cause problems for some who thought they were getting a good deal. In short, read the small print.
Credit cards can be used to your benefit and by being extremely responsible and paying off your balance in full each month; you quickly increase your credit score. It also ends up saving you money on interest rates. Be sure to always pay on time and if you’re forgetful set up a direct debit to pay off the card. Finally, don’t go over or near your limit as this will really affect your score.
Check your card regularly. Most providers allow you to do so online in an easy manner and this can allow you to keep tabs on your card easily. Take care of details too and don’t access by public computer and don’t give details out to unsolicited calls or emails. If you do notice a problem contact your provider and the police – it’s better to be safe than sorry.
If you do end up in trouble then contact your creditor. It’s better to be responsible and often creditors set up temporary payment plans until you get back on your feet. There are also a number of non-profit advisory services that can help.
By taking heed of this advice you can go a long way to making a card work for you.