Some people choose to live without credit cards because they fear that they might run up lots of debt if they got one. It is not necessary to fear credit cards. They can be very helpful when a person needs to make a large purchase, or prefers not to carry or use cash. In this article, you will discover some excellent advice about charge cards.
Make sure you have the money to pay for any charges you make on your bank cards. While it’s suitable to pay for an item that you can afford to pay for later, don’t buy something that’s seriously out of reach.
Credit Score
It’s useful credit practice to continuously keep two or three active credit cards. This will increase your credit score over time, especially if you don’t carry a balance from month to month. Keep in mind though that if you have more cards than three, this could have a negative effect on your credit score.
Always track all purchases you make on any charge cards. It does not take much to let your spending get out of control, so commit to recording your spending in a spreadsheet or on paper.
Prior to shopping online with a credit card, it is important to know that you are buying from a reputable merchant. Try calling the listed phone numbers to ensure the company is in business and always avoid purchases from companies that do not have a physical address listed.
Credit Card
Do not ever provide credit card numbers to people who call you and ask for them. Many dishonest people use this ploy to get credit card information from unsuspecting people. Make it a point to only give your credit account number to trusted businesses when you have originated the call. Never give your credit information to someone that has called you. No matter who a caller says they represent, you cannot trust them.
If you owe too much money, to a point you can’t pay it back, you will run risks of ruining your credit score. If this happens, it could make it hard for you to rent an apartment, get insured, finance a car or even get a job.
Don’t lie about your income to get a higher limit credit card. There are companies that will not do an income verification, which often leads to higher limits that are difficult to control.
If you are nervous about using your charge cards, the tips in this article can help you reduce your worries. Bank cards can be very useful when used wisely and there is no good reason to fear using them. Just remember the tips you have learned here and your financial situation will be fine.
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