Tips That All Credit Card Users Must Know
Credit cards can be a convenient way to make purchases without carrying cash. This article will help you to learn how to obtain credit cards and use them wisely without getting buried in debt.
Young? Just Got Approved For Your First Credit Card?
If you have just turned eighteen, you might want to think twice before applying for a credit card. Before you apply, you should investigate how the industry works, and what your responsibilities will be when you have a credit card. Spend some time living as an adult and learning what it will take to incorporate credit cards.
- If you do feel that its the right time to open your first credit , you should consider opening a secured credit card. A secured credit card is one that is secured with a security deposit that you give to the issuing bank. When you are using this card, you are basically borrowing against the money you put down as a security deposit. Your credit limit will be the amount of your security deposit. Secured credit cards are a great way to “get used to paying with and managing your credit” .
- Read the credit card agreement thoroughly before you sign your agreement with the company. When you first use a card, you are basically accepting the terms the company offers. Be aware of all of the “fine print” that comes with your credit card!
- Understand the recent developments in credit card law. Credit card issuers may not assess retroactive interest rate hikes, as an example. The companies are also not allowed to bill in a double-cycle. Take the time to learn the governing credit card laws. Look up federal legislation regarding credit card usage and fraud.
- Do not falsify information about how much your income is so that you can get a credit card with a high limit. There are some creditors that won’t verify how much income you make and raise your limit regardless, which can put you in serious financial trouble if you charge beyond your means.
- Never, ever use your credit card to purchase something that you cannot afford. Even if you want a high-priced item, it’s not worth going into debt in order to get it. Paying huge amounts of money on interest is not smart and should be avoided. Make a habit of waiting 48 hours before making any large purchases on your card. Talk to the store if you still want to buy a big-ticket item after thinking it over. You may be able to get financing in the store, and many times this is a better deal than using your credit card.
Protect Your Credit Cards From Credit Card Scammers
- Make certain you do not request credit cards through the mail if your mailbox doesn’t have a lock. Many scammers have admitted to stealing cards that were in mailboxes with no locks on them.
- Don’t give credit card numbers out, online or over the telephone, without knowing that the company you’re dealing with is trustworthy. When receiving unsolicited requests for credit card numbers, be very cautious. Many scammers exist who want your card number. Be wary and keep it safe.
- Make sure that you keep a constant eye on all of the transactions on your credit card bills. Sign up to receive mobile alerts if they are offered by your provider. That way, you can question irregular activity on your account right away. If you are aware of suspicious account activity, call the authorities immediately.
We hope that this article has been helpful to you. We can never be too careful with our credit or spending and too often we realize the errors of our ways when it is too late! Take in all of the information here so you can heighten the benefits of having credit cards and cut down on the risk.