Use Your Credit Cards To Your Advantage

Owning a credit card has many advantages. For example, you can use a credit card to buy goods online. Unfortunately, when you apply for a new credit card, there are a few thing that you should always keep in mind. Here are some tips that will make obtaining and using a credit card, easy.

Do not use your credit cards to make emergency purchases. Many people believe that this is the best use of credit cards, but the best use is actually for things that you purchase on a regular basis, like groceries. The key is, to only charge things that you will be able to pay back in a timely manner.

Ensure you understand how closing an account will affect your credit score. Sometimes, closing a card can have a negative impact on your credit scoring and this is something nobody wants. Additionally, try keeping the card accounts open that comprise the main part of your payment and spending history.

If you have credit cards be sure to check your monthly statements thoroughly for errors. Everyone makes errors, and this applies to credit card companies as well. To prevent from paying for something you did not purchase you should save your receipts through the month and then compare them to your statement.

When you are looking over all of the rate and fee information for your credit card make sure that you know which ones are permanent and which ones may be part of a promotion. You do not want to make the mistake of going for a card with very low rates and then they balloon shortly after.

Avoid being the victim of credit card fraud by keeping your credit card safe at all times. Pay special attention to your card when you are using it at a store. Double check to make sure you have returned your card to your wallet or purse, when the purchase is finished.

Make it your goal to never pay late or over the limit fees. Both fees can be very pricey, both to your wallet and your credit report. Monitor things closely, and never exceed your personal limit.

Take advantage of the fact that you can get a free credit report yearly from three separate agencies. Make sure to get all three of them, so that you can be sure there is nothing going on with your credit cards that you may have missed. There may be something reflected on one that was not on the others.

If you have a credit card with high interest you should consider transferring the balance. Many credit card companies offer special rates, including 0% interest, when you transfer your balance to their credit card. Do the math to figure out if this is beneficial to you before you make the decision to transfer balances.

There are many cards that offer rewards just for getting a credit card with them. While this should not solely make your decision for you, do pay attention to these types of offers. Im sure you would much rather have a card that gives you cash back than a card that doesnt if all other terms are close to being the same.

Exercise

It is an excellent idea to open one credit card account that you do not use. Tuck this credit card away for emergency expenses. Exercise discipline in this matter. Your emergency credit card should only be used in real "last resort" situations. If you ever have to use it, pay it off as quickly as possible after the emergency has passed.

As previously stated, owning a credit card or two has many advantages. By applying some of the advice contained in the tips featured above, you can be sure that using a credit card doesnt end up costing you a lot of money. Furthermore, some of the tips could help you to, actually, make some extra money when you use a credit card.