It is important to understand all the fine print before using a credit card. Charge cards can either be an excellent tool for building your financial life or a huge liability that can wreak havoc on your finances. Read on to learn some of the best practices to use when dealing with credit cards.
Cannot Pay
Never use your credit to buy things that are out of your price range that you cannot pay off. While credit can help you afford things you can pay off over a few months, avoid charging expensive items that you cannot pay off quickly.
If a fraudulent charge appears on the credit card, let the company know straightaway. The earlier the credit card issuer knows, the better chance they have of stopping the thief. This will also prevent you from becoming responsible for too many unauthorized charges. A simple phone call is usually all it takes to report fraudulent charges or put a hold on a stolen card.
Many charge cards offer significant bonuses for signing up for a new card. Read the fine print before signing up, however, because there are often many ways you could be disqualified from the bonus. A common requirement is to spend enough on the card within a short period of time. Only apply for the card if you expect to meet the level of spending needed to get the bonus.
Minimum Payment
Credit card companies state your minimum payment and hope you will not pay more so they can collect more interest on your balance over time. Always pay as much as possible in excess of the minimum payment. Paying off your balance faster helps you avoid expensive finance charges over the life of your debt.
Pay 100% of your credit card bill each month if you can afford it. Really, credit cards should be used for convenience, and the bills should be paid on time and in full. When you keep balances off your cards, you avoid interest and other finance charges. Making use of the cards helps build up your credit score, too.
Always read the terms and conditions of your card before using it. The first use of your card is perceived as an acceptance of its terms by most credit card issuers. Although some of this agreement may be in fine print, it is very important to thoroughly read all sections.
Credit Card
Be sure to always pay for your credit cards on time. You may have to pay large fees if you ignore the due date on your credit card statement. On top of that, the majority of credit card companies reward this behavior by raising interest rates, which means that anything you buy in the future will cost more money.
Frequently, consumers are left to their own devices when it comes to finances, and they often are victims of high interest rates on their bank cards. This article has mentioned the best methods for proper credit card use in an everyday life.
Iris Carter � speaker is straight-from-the-heart, high-energy, passionate message motivates audiences to never give up on your dream as an entrepreneur.
She has written numerous articles about how to build business credit, what to look for when applying for business credit without using your personal credit and many others.
For more information visit:
www.corporatefasttrack.com