You will be faced with a barrage of credit card promotions and offers over the years and it is sometimes overwhelming to deal with them. Some offer low interest rates, others are easy to obtain, and others have great reward programs. What should a person do? The following information is just what you need to figure out which offers are worth pursuing and which should be shredded.
Always check the fine print. Before accepting any offer for a credit card, be informed of all the details. Find out the exact interest rate and the time that rate is in effect for your card. Also, make sure to research any associate grace periods and/or fees.
Keep a close eye on your balance. Be sure you know your card’s limit before making purchases. If you happen to charge an amount over your limit, you will face fees that are quite costly. It is going to take longer to pay down the balance if you keep exceeding your limit.
Read the terms of your credit card agreement carefully before you use your credit card for the first time. As a general rule of thumb, usage of a credit card represents acceptance of all terms in the credit card’s agreement policy. The fine print may be small; however, you still need to read it all.
Read the fine print to determine what conditions may affect your interest rate as they can change. Because there is a large amount of competition in this industry, the interest rate is always negotiable. Call your bank if you are unhappy with the interest rate given to you.
Do not close active credit accounts. Closing an account can hurt your credit score instead of helping. When you close an account, the amount of overall credit you have is lowered, and this could make your current lending ratio percentage higher.
A good tip for every credit card user is to request a free copy of your credit report each year and make sure that that everything is accurate. Make sure that everything in the report matches up and that your credit history is being reported with a great level of accuracy.
Document everything you put on your card each month. Keep in mind that impulse and incidental purchases can add up really fast. Use cash or a debit card for these purchases to avoid paying interest fees and overspending on credit cards.
Never send your card number by phone, fax or email to anyone unless you are certain it’s secure. If you are receiving an unsolicited offer that is requesting a credit card number, be doubly suspicious. There are a lot of shady people out there and they often try to get credit information over the phone. Keep your credit card information save by being alert for scams.
People get bombarded with credit card offers week after week, and figuring out what to do with them can be a hassle. With a little bit of research, making the right credit card selection becomes a simplified process. This article has helpful advice that may help you make smarter credit card decisions.