Have A Credit Card? Then Read These Tips!

Fully read the disclosure statement before you accept a credit card. This statement explains the terms of use for that card, including any associated interest rates and late fees. By reading the statement, you can understand the card you are choosing, in order to make effective decisions when it comes to paying it off.

When it comes to credit cards, always try to spend no more than you can pay off at the end of each billing cycle. By doing this, you can help to avoid high interest rates, late fees and other such financial pitfalls. This is also a great way to keep your credit score high.

Be aware that there are credit card scams out there as well. Many of those predatory companies prey on people that have less than stellar credit. Some fraudulent companies for example will offer credit cards for a fee. When you send in the money, they send you applications to fill out instead of a new credit card.

If you have poor credit and want to repair it, consider a pre-paid credit card. This type of credit card can usually be found at your local bank. You can only use the money that you have loaded onto the card, but it is used as a real credit card, with payments and statements. By making regular payments, you will be repairing your credit and raising your credit score.

Read all the fine print before applying for a credit card, to avoid getting hooked into paying excessively high interest rates. Many introductory offers are just ploys to get consumers to bite and later, the company will show their true colors and start charging interest rates that you never would have signed up for, had you known about them!

Protect yourself from credit card theft or loss, in order to safeguard your finances and credit rating. If a credit card becomes lost or stolen, immediately inform the credit card company. Doing so will limit your liability for any unauthorized charges. In fact, the law states that your maximum liability for paying for unauthorized transactions is limited to an amount of $50.

If you are having a problem getting a credit card, consider a secured account. A secured credit card will require you to open a savings account before a card is issued. If you ever default on a payment, the money from that account will be used to pay off the card and any late fees. This is a good way to begin establishing credit, so that you have opportunities to get better cards in the future.

To avoid interest charges, don't treat your credit card as you would an ATM card. Don't get in the habit of charging every single item that you buy. Doing so, will only pile on charges to your bill, you may get an unpleasant surprise, when you receive that monthly credit card bill.

Your oldest credit card is the one that affects your credit report the most. Do not close this account unless the cost of keeping it open is too high. If you are paying an annual fee, ridiculous interest rates, or something similar, then close the account. Otherwise, keep that one open, as it can be the most beneficial to your credit score.

Pay close attention to all of the interest rates on your credit cards. Many cards charge you different rates depending on the type of transaction you execute. Cash advances and balance transfers commonly command a higher rate than ordinary purchases. You must keep this in mind before you begin shifting money on and off various cards.

Having the right habits and proper behaviors, takes the risk and stress out of credit cards. If you apply what you have learned from this article, you can use them as tools towards a better life. Otherwise, they can be a temptation that you will eventually succumb to and then regret it.

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