In the modern world, having good credit is almost a necessity, but managing credit card debt presents some pitfalls. There are things to watch out for. Credit cards are really useful, but they might also cause a lot of debt! Read on to gain some knowledge on how to use your card responsibly.
Annual Fees
Make sure your card doesn’t have any annual fees, or you will pay too much. Depending on the card, annual fees for platinum or other premium cards, can run between $100 and $1,000. If you don’t have to have a card that’s exclusive, avoid fees and keep that in mind.
Just as you want to avoid paying late fees, you want to avoid that over the limit fee as well. Both are pretty steep, and the cost of going over the limit can not only affect your wallet but also your credit report. Keep an eye on your balance and exercise more caution as you approach your credit limit.
Pay 100% of your credit card bill each month if you can afford it. If you pay in full now before the interest starts piling up, you can save a lot of money. The credit usage builds a good history and by not carrying a balance, you will not pay finance fees.
When it comes to your credit card, do not use a pin or password that is simple for others to figure out. Using something like your initials, middle name or birth date can be a costly mistake, as all of those things may be easy for someone to decipher.
If you use your credit card to make online purchases, be sure the seller is a legitimate one. Call the toll-free or other phone numbers on the website to see if they work, and avoid buying from merchants that do not list an address on their website.
Write down the card numbers, expiration dates, and customer service numbers associated with your cards. Put this list in a safe place, like a deposit box at your bank, where it is away from your cards. The list will assist you in promptly notifying card lenders should you lose your cards or have them stolen.
If you ask an expert, they will recommend that you should not have a credit limit greater than three-quarters of the income you bring in every month Taking on a card, whose limit is greater than this amount, may leave you struggling to pay the bill. This is because your interest will just keep growing bigger and bigger.
As you can now see, people are often very unaware of the terms regarding their credit use. This article has covered the best methods for utilizing credit cards. It would be great if you apply what you have read to your 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.
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