It can be tempting to put charges on your credit card every time you can’t afford something, but you probably know this isn’t the right way to use credit. You may not be sure what the right way is, however, and that’s how this article can help you. Read on to learn some essential things about credit card use, so that you use your credit card properly from now on.
Do not close any credit card accounts without finding out how it affects your credit report. In some circumstances, closing credit card accounts can negatively affect the credit report, which is something that should be avoided. In addition, it’s good to keep the credit cards associated with your credit history active and in good standing.
If possible, pay your credit cards in full, every month. Use them for normal expenses, such as, gasoline and groceries and then, proceed to pay off the balance at the end of the month. This will build your credit and help you to gain rewards from your card, without accruing interest or sending you into debt.
Do not apply for a new credit card before understanding all the fees and costs associated with its use, regardless of the bonuses it may provide. It is important to really understand the specific details buried in the fine print for actually getting the bonus. Typically, you are required to charge a certain amount on the card in a limited time period to get the bonus.
Pay your minimum payment on time each month, to avoid more fees. If you can afford to, pay more than the minimum payment so that you can reduce the interest fees. Just be sure to pay the minimum amount before the due date.
Keep an eye on mailings from your credit card company. While some might be junk mail offering to sell you additional services, or products, some mail is important. Credit card companies must send a mailing, if they are changing the terms on your credit card. Sometimes a change in terms can cost you money. Make sure to read mailings carefully, so you always understand the terms that are governing your credit card use.
When you are making a purchase with your credit card you, make sure that you check the receipt amount. Refuse to sign it if it is incorrect. Many people sign things too quickly, and then they realize that the charges are incorrect. It causes a lot of hassle.
Do not apply for any credit cards by mail if your mailbox is not lockable. It is common for thieves to steal credit cards from unlocked mailboxes. To prevent this, make sure your credit cards are mailed only to secured mail boxes.
Use a credit card to pay for a recurring monthly expense that you already have budgeted for. Then, pay that credit card off each and every month, as you pay the bill. Doing this will establish credit with the account, but you don’t have to pay any interest, if you pay the card off in full each month.
Each month when you receive your statement, take the time to look over it. Check all the information for accuracy. A merchant may have accidentally charged a different amount or may have submitted a double payment. You may also find that someone accessed your card and went on a shopping spree. Immediately report any inaccuracies to the credit card company.
A great tip for saving on today’s high gas prices is to get a reward card from the grocery store where you do business. These days, many stores have gas stations, as well and offer discounted gas prices, if you sign up to use their customer reward cards. Sometimes, you can save up to twenty cents per gallon.
Many people, especially when they are younger, feel like credit cards are a type of free money. The fact is, they are exactly the opposite, paid money. Remember, every time you use your credit card, you are basically taking out a micro-loan with incredibly high interest. Never forget that you must repay this loan.
If you’ve been guilty of using your credit card incorrectly, hopefully, you will reform your ways after what you have just read. Don’t try to change all your credit habits at once. Use one tip at a time, so that you can develop a more healthy relationship with credit and then, use your credit card to improve your credit score.