Credit Cards Do Not Have To Make You Cringe
Keep in mind that if you are making a purchase on a credit card, you are paying with borrowed money. Many people forget this concept and charge too many large items. At a certain point, you really need to be able to pay for these items. When you view your cards in the same way that you view money, you are more likely to skip the impulse purchases. Make sure that you have the discipline to use a credit card before opening an account. The temptation to over-spend when using credit is irresistible to some people. These people shouldn’t have credit cards. When they choose to open an account, they are opening themselves up to a devastating financial future.
Don’t put your pin or password to paper, no matter what the circumstances. You must remember the number so that others can’t access your account. Writing down your PIN, especially if you store it with your card, can put your account in jeopardy if the information falls into the wrong hands.
If you go to make a purchase with your credit card and you are told that there will a surcharge for using that payment method, you can refuse to pay it and demand they accept your purchase. Many credit card companies do not allow merchants to impose fees, so you should check out the policies of your card company.
Pay off your higher interest credit cards first. You should never have a large debt on a high interest card because this interest can add an additional several hundred dollars to your accumulating debt every year. To save yourself money, pay off high interest rate credit cards first.
Keep a list of the “lost/stolen card” phone numbers for each of your credit card issuers along with your credit card number for reference. Put the list somewhere safe, in a place that is separate from where you keep your credit cards. Use this list to contact your credit card issuers if your credit cards are ever lost or stolen.
Read, memorize and then, understand the terms and conditions of each and every credit card you have. Know what the interest rate is, as well as, what each fee is and have the payment and bill cycles marked on your calendar. Doing this means there will be no surprises when it comes to your card.
If you are looking for a credit card and are a student, be particularly mindful of the hidden costs and terms of anything offered to you. Student credit cards may have hidden costs such as penalties, annual fees or other charges. Research and compare cards to find the card that best meets your needs. Do not utilize a credit card to buy casino ships or withdraw funds at an ATM machine. Both of these types of transactions have large fees attached to them. Therefore, it is best to only get a cash advance on your credit card in an emergency situation. It is good credit card practice to pay your full balance at the end of each month. This will force you to charge only what you can afford, and reduces the amount of interest you carry from month to month which can add up to some major savings down the line. Always verify your charges and fees to make sure they are accurate instead of simply focusing on interest rates. There are sometimes charges like application fees, service charges and cash advance fees, that may make your card not worth having.
When you receive any credit card correspondence, whether in the form of a letter or email, take the time to read it. Creditors are always allowed to change certain things about your fee schedule if they let you know about it in writing. You can cancel your account if you don’t agree with this.