Advice On How To Handle Your Credit Cards
Given the economic conditions of the modern world, there are few consumers out there who couldn’t make use of some extra financial management advice to help them keep from spending too much money. Credit can be a great boon to a financial plan, but they can also be very dangerous. Read on to learn some of the best practices to use when dealing with credit cards.
Decide what rewards you would like to receive for using your credit card. There are many options for rewards that are offered by credit card companies to entice you to applying for their card. Some offer miles that can be used to purchase airline tickets. Others give you an annual check. Choose a card that offers a reward that is right for you Update UAE.
Don’t fall for the introductory rates on credit cards when opening a new one. Be sure to ask the creditor what the rate will go up to after, the introductory rate expires. Sometimes, the APR can go up to 20-30% on some cards, an interest rate you definitely don’t want to be paying once your introductory rate goes away.
Always know what your utilization ratio is on your credit cards. This is the amount of debt that is on the card versus your credit limit. For instance, if the limit on your card is $500 and you have a balance of $250, you are using 50% of your limit. It is recommended to keep your utilization ratio of around 30%, in order to keep your credit rating good.
If you are going to make purchases over the Internet you need to make all of them with the same credit card. You do not want to use all of your cards to make online purchases because that will increase the chances of you becoming a victim of credit card fraud.
Each month when you receive your statement, take the time to look over it. Check all the information for accuracy. A merchant may have accidentally charged a different amount or may have submitted a double payment. You may also find that someone accessed your card and went on a shopping spree. Immediately report any inaccuracies to the credit card company.
The credit card that you use to make purchases is very important and you should try to use one that has a very small limit. This is good because it will limit the amount of funds that a thief will have access to.
An important tip for saving money on gas is to never carry a balance on a gas credit card or when charging gas on another credit card. Plan to pay it off each month, otherwise, you will not only pay today’s outrageous gas prices, but interest on the gas, as well.
Although it can be tempting to make payments right after purchasing something, avoid this. Instead, pay off the balance in full each month. This will improve your credit score and look better on your credit history.
Use a credit card that offers rewards. Not every credit card company offers rewards, so you need to choose wisely. Reward points can be earned on every purchase, or for making purchases in certain categories. There are many different rewards including air miles, cash back or merchandise. Be wary though because some of these cards charge a fee.
As you can now see, people are often very unaware of the terms regarding their credit use. Ideally, you have picked up some handy spending advice from this article and have a better idea about how to use your credit cards in a safe and responsible manner.…