Tricks On How To Properly Use Credit Cards

Credit card use can be a tricky thing, given high interest rates, hidden charges and changes in laws. As a consumer, you need to be educated and aware of the best practices when it comes to using your credit cards. Read on for some valuable tips on how to use your cards wisely.

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Do not use your credit card to make purchases or everyday items like milk, eggs, gas and chewing gum. Doing this can quickly become a habit and you can end up racking your debts up quite quickly. The best thing to do is to use your debit card and save the credit card for larger purchases.

 

Speak with the credit card company right after you see a charge on your statement that you did not make. When you do that, you will give the credit company a good chance of making sure the thief is caught. It also ensures you are not responsible for any charges made on the lost or stolen card. It usually just takes a brief email or phone call to report fraudulent charges.

 

Most people do not handle credit cards correctly. It can be okay to get into debt every once in a while; however, many people just get in way over their heads and can't afford the monthly payments associated with their bills. It is ideal to pay off credit card balances every month. Using credit wisely and keeping low balances will help to improve your credit score.

 

Before opening a credit card, be sure to check if it charges an annual fee. The annual fees for platinum and black cards range from one hundred to one thousand dollars, according to how exclusive the card is. If you don't care about exclusivity, these cards aren't for you.

 

Emergency, business or travel purposes, is all that a credit card should really be used for. You want to keep credit open for the times when you need it most, not when purchasing luxury items. You never know when an emergency will crop up, so it is best that you are prepared.

 

Keep a close eye on your credit card balance. It is also important to know your credit limits. If you exceed your card's limit, you will end up paying big penalty fees. If fees are assessed, it will take a longer period of time to pay off the balance.

 

It is good credit card practice to pay your full balance at the end of each month. This will force you to charge only what you can afford, and reduces the amount of interest you carry from month to month which can add up to some major savings down the line.

 

Hopefully, this article has provided you with some helpful guidance in the use of your credit cards. Getting into trouble with them is much easier than getting out of trouble, and the damage to your good credit standing can be devastating. Keep the wise advice of this article in mind, the next time you are asked if you are paying in cash or credit.