Bank cards are helpful when it comes to buying things over the Internet or at other times when cash is not handy. The following article will give you advice on how to use your bank cards without getting into trouble.
Know the interest rate you are getting. It is crucial that you know the rate of interest prior to getting a credit card. If you are unsure, over time you might pay much more than what items actually cost. Paying more may keep you from having the ability to pay the debt off every month.
A co-signer may be an option to consider if you have no established credit. Co-signers can be friends, relatives or anyone with a solid credit history of their own. This person needs to be willing to agree to paying the balance if you don’t make the payments. This is a perfect way to start building your credit.
Credit Card
Just because you have reached the age to acquire a credit card, does not mean you should jump on board right away. Although many people do this, it’s in your best interest to learn more about how credit works before you make this decision. There are several responsibilities associated with being an adult; having a credit card is only one of them. Get comfortable with financial independence before you obtain your first card.
When signing a credit receipt at a store or restaurant, don’t leave anything blank. Always fill up the signature line on your credit card tip receipt, so you don’t get charged extra. Also, check that your purchase amounts match the amounts on your statement.
Do not document your password or pin number. Keep it stored in your head so that nobody else can access it. If you write it down on a bill or keep it in your financial files, a thief could easily steal this information.
Keep a list of phone numbers for your credit card companies and your own account numbers in a safe location. Put the list somewhere safe, in a place that is separate from where you keep your bank cards. You’ll be grateful for this list in the event that your cards get lost or stolen.
Every year you should make sure to ask for a free credit report from each of the credit bureaus. Compare your statements with any debts you may have to be sure they’re a match.
Try avoiding paying for your restaurant bills on your card since it will take a while to show up and shock you a few days later. This may make you spend too much because you will think the balance is lower than it actually is.
As you can see, there are many things to keep in mind when opening and using bank cards. It is important to learn the importance of good credit and how to spend less than we earn before incurring too much debt. Reasonable credit card use will increase your credit score while giving you more spending power.
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.
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