A Wise Credit Card Owner

How do you use your credit cards? Do you consider yourself to be completely responsible or completely lost when it comes to credit usage? No matter how responsible you feel, there is always a bit more that you can learn, and this article will provide you with great credit card tips!

Paying only the minimum payment on your credit cards will result in the lenders getting a lot of money from you over time and it taking you forever to fully pay off your cards. To help decrease the length of time it takes to pay of your unpaid balance, pay at least 10 percent more than what is due. Minimize the amount of interest you end up paying.

A Wise Credit Card Owner

Before you get something online with a credit card, be sure that you can trust the seller. You should contact whoever runs the site on the phone prior to ordering and don’t use a company that has no real address on their website.

Look into whether a balance transfer will benefit you. Yes, balance transfers can be very tempting. The rates and deferred interest often offered by credit card companies are typically substantial. But if it is a large sum of money you are considering transferring, then the high interest rate normally tacked onto the back end of the transfer may mean that you actually pay more over time than if you had kept your balance where it was. Do the math before jumping in.

Watch rewards programs. These programs are quite popular with credit cards. You can earn things like cash back, airline miles, or other incentives just for using your credit card. A reward is a nice addition if you’re already planning on using the card, but it may tempt you into charging more than you usually would just to get those bigger rewards.

Financial experts agree that you should not let your debt on a credit card go above a level equal to 75% of your salary each month. If your limit is larger than one month’s salary, you need to pay it off as soon as you can. If you don’t the interest you pay could quickly get out of control.

A great way to save money on credit cards is to spend the time necessary to comparison shop for cards that offer the most advantageous terms. If you have a decent credit history, it is highly likely that you can obtain cards with no annual fee, low interest rates and perhaps, even incentives such as airline miles.

Do not sign up for store cards in order to save money on a purchase. Often times, the amount you will pay for annual fees, interest or other charges, will easily be more than any savings you will get at the register that day. Avoid the trap, by just saying no in the first place.

It is wise to refrain from giving a credit card to a child. It is best to let children wait to get credit cards until they reach the age of 18, or when they can get their own. Instead, consider opening them a checking account and giving them an allowance. This will help them learn to manage a small amount of money so that they will be ready to manage a credit card when the time comes.

It is a good idea to get a copy of your personal credit report every year to make sure that everything on there is accurate. Compare your statements to the debt in your report to see if they are the same.

Check with your credit card company about their willingness to reduce your interest rates. There may be some companies that could reduce the interest rates they charge if they know that they have a good relationship with their customers. It doesn’t cost you a penny to ask, but it can save you a lot of money.

If you find that you cannot pay your credit card balance in full, slow down on how often you use it. Though it’s a problem to get on the wrong track when it comes to your credit cards, the problem will only become worse if you allow it to. Try to stop using your cards for awhile, or at least slow down, so you can avoid owing thousands and falling into financial hardship.

Keep the total number of credit cards you use to an absolute minimum. Carrying balances on multiple credit cards can complicate your life needlessly. Shift your debt onto the card with the lowest interest. You will be able to keep better track of your debts and pay them off faster if you stick with a single credit card.

Did these tips help you? Do you feel more prepared to use your credit cards now? Hopefully, you feel more confident and comfortable, as well as, more able to avoid the common “credit traps” that exist. This article and others like it can provide you with a wealth of useful credit card knowledge.