Everyone looks for tips on how to manage credit cards. Often, these are the ones that give us severe financial troubles. However, you should know one essential truth with these things, there’s no single tip or guideline or advice to correctly manage your credit cards. This article can give you simple thoughts but the rest of the methods are up to you. Later on, you will discover that you have more options rather than just looking at these words.
The real answer is right in your hands so, if you’re ready, here are some of the useful pointers for your credit card management.
Your credit interest rate and credit limit can depend on your credit history. The sad news is that a lot of people do not know how good or bad they are. To overcome this, you should pull your credit report from about three credit reporting agencies. There are free services in which you can get this data from like the AnnualCreditReport.com. It will show you the factors that can greatly affect your credits like late payments. All in all, more negative records will mean less chances of having the best interest rates.
To get higher chances, you have to wait. For about six months, you should fix everything with your former credit problems. The most important thing to remember is to put everything in order. As a guide, you can use your credit report. Basing in your credit report which you should first check for inaccuracies, learn about the mistakes that you have made and start from there. If not paying on time is your problem then make a habit to pay earlier or better. The bottom line is that you should stand up for good record. This will help increase your chances in getting the best benefits later on.
Experts advice that even if you can’t afford to pay the full sum then at least pay the least amount. It will help you to avoid hefty penalty fees.
Let’s assume that your credit is now in order and so, the next move is learning the kind of benefits that you really want. For example, if you love to travel, then it’s good to consider cards that are affiliated with hotels or airlines. These cards should also allow you to have reward points that can be used to buy tickets or hotel bookings. If you are a road freak, there are cards that have gas rewards. Just know your type of life and base your credit card benefits there.
It’s always a great idea to use one credit card at a time to optimize the benefits. Use Visa, Mastercard or American express as they are accepted everywhere. Amex card by and large gets you more points on every dollar spent.
However, it is beneficial to use an extra credit card if you have a business venture and want to compartmentalize between your personal and business expenses. If you are a globetrotter and are fond of traveling to foreign countries, then using Westpac credit card is a convenient option to consider.
Beware of the fraudulent activities if you have already acquired the EMV chip card. It is believed that the skimmers devices can steal your confidential credit card information effectively. Closely monitor your credit reports and statements for protecting against frauds.
Our credit cards are often more precious than we think it to be. It can provide rental car insurance, trip cancellation insurance, purchase protection, price protection and even prolonged warranties. During shopping and vacation, these things can make a great difference and save up plenty of dollars.
Though it looks good to pay the minimum amount every month since it only uses lesser money from your pocket, you have to consider it again. Interest rates between 13 and 15% is the minimum payment that will increase your payments later on. Therefore, the key here is to charge only those that you will be able to pay each month. Next, pay on time. You can actually set up an automatic payment so that in case you forget about this, you won’t have to worry. If you are consistent with this, it can boost your credit score which means you will have lower interest rates. Lastly, consider your limit. One of the best factors to calculate your score is called the utilization rate. The lower your rate, the better your score will become.
Credit card laws are your friends. That’s one thing you should realize for a fact. Two huge acts that cover credit cards are the Credit Accountability Responsibility and Disclosure Act or CARD Act and the Fair Credit Bill Act. The first one eradicates a lot of typical but questionable credit card practices like retroactive rate increases, double-cycle billing and applying to lower-rate balances. Also, this act requires advance notice for rate hikes and more provisions. The second one is about all the rights of the card holders the moment he encounters a billing dispute with the credit editor.
Set a budget from the beginning
In order to keep a track of your expenditures, it is important to set a budget on your credit card right from the beginning. It will help you understand where you are spending your money and what should curb your spending. Credit card owners also should check their transactions regularly. They can use both PIN numbers or signature while operating it. At familiar shops and trustworthy companies, using PIN operated credit cards are the best. Many modern credit cards come with an integrated microchip for more safety and protection.
Knowledge of these things can greatly help you master the world of credit cards. These tips will really pull you off from credit card trouble you may be in today. If you have any question contact me today!