Many people become completely terrified when they hear the word credit. If you are one of these people, that means you need to expose yourself to a better financial education. Credit is not something to fear, rather, it is something that you should use in a responsible manner.
A lot of people do not use their credit cards the right way. Sometimes debt is unavoidable; however, too many people use credit cards to buy things they cannot afford. This abuse leaves them with payments that they do not have the money to make. One of the best things you can do is pay your balances off each month. By doing this, you can access credit, keep out of debt and improve your credit rating.
Check your credit report regularly. By law, you are allowed to check your credit score once a year from the three major credit agencies. This may be often enough, if you use credit sparingly and always pay on time. You may want to spend the extra money, and check more often if you carry a lot of credit card debt.
Credit cards should always be kept below a specific amount. This total depends on the amount of income your family has, but most experts agree that you should not be using more than ten percent of your cards total at any time. This helps insure you don't get in over your head.
Pay your minimum payment on time each month, to avoid more fees. If you can afford to, pay more than the minimum payment so that you can reduce the interest fees. Just be sure to pay the minimum amount before the due date.
If you are not satisfied with the high interest rate on your credit card, but aren't interested in transferring the balance somewhere else, try negotiating with the issuing bank. You can sometimes get a lower interest rate if you tell the issuing bank that you are considering transferring your balances to a different credit card that offers low-interest transfers. They may lower your rate in order to keep your business!
Never use a credit card to buy things you can't afford. You might want a flat-screen television, but that doesn't mean that you should use your credit card to buy it. Paying huge amounts of money on interest is not smart and should be avoided. Slow down and think things over before deciding whether to buy an expensive item on credit. Talk to the store if you still want to buy a big-ticket item after thinking it over. You may be able to get financing in the store, and many times this is a better deal than using your credit card.
If your mailbox is not secure, do not request credit cards through the mail. Lots of credit card thieves say that they have taken cards from people's unlocked mailboxes.
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 determined to stop using credit cards, cutting them up is not necessarily the best way to do it. Just because the card is gone doesn't mean the account is no longer open. If you get desperate, you may ask for a new card to use on that account, and get trapped in the same cycle of charging you wanted to get out of in the first place!
Keep contact information for credit card companies, your account number, and all other relevant data in a safe place that is easy for you to access. Maintain it in a secure place, like a safe, and keep it separated from your cards. This list will assist you in getting in contact with lenders in case you have a lost or stolen card.
Never allow yourself to open too many credit card accounts. Instead, find two or three that really work for you and stick to those. Having too many credit cards can harm your credit and it makes using money that you do not have that much easier. Stick to a couple cards and you will remain safe.
Some people avoid getting any credit cards, to afford the appearance of having no debt at all, and this can be a mistake. It's important use one credit card, at least, in order for you to build a credit history. Use the card, and pay it in full every month. When people check your credit score, they are trying to evaluate your financial management skills. You cannot raise your credit score unless you use credit responsibly.
If you pay your credit card bill with a check each month, make sure you send that check out as soon as you get your bill so that you avoid any finance charges or late payment fees. This is good practice and will help you create a good payment history too.
Prior to applying for a credit card, try to build your credit up at least six months in advance. Then, be sure to take a look at your credit report. By doing this, you are more likely to get approved for the credit card and get a higher credit limit, as well.
A useful tip for ensuring smart usage of credit cards is to only use them for purchases in amounts that are sure to be available in your bank account by the time the monthly statement arrives. By restricting purchases to amounts that can be easily repaid in full, you will build a solid credit record and maintain a strong relationship with your card issuer.
After reading this article, you should feel more comfortable when it comes to credit questions. By using each of the tips you have read here, you will be able to come to a better understanding of exactly how credit works, as well as, all the advantages and disadvantages it can bring to your life.
Check your credit report regularly. By law, you are allowed to check your credit score once a year from the three major credit agencies. This may be often enough, if you use credit sparingly and always pay on time. You may want to spend the extra money, and check more often if you carry a lot of credit card debt.
Credit cards should always be kept below a specific amount. This total depends on the amount of income your family has, but most experts agree that you should not be using more than ten percent of your cards total at any time. This helps insure you don't get in over your head.
Pay your minimum payment on time each month, to avoid more fees. If you can afford to, pay more than the minimum payment so that you can reduce the interest fees. Just be sure to pay the minimum amount before the due date.
If you are not satisfied with the high interest rate on your credit card, but aren't interested in transferring the balance somewhere else, try negotiating with the issuing bank. You can sometimes get a lower interest rate if you tell the issuing bank that you are considering transferring your balances to a different credit card that offers low-interest transfers. They may lower your rate in order to keep your business!
Never use a credit card to buy things you can't afford. You might want a flat-screen television, but that doesn't mean that you should use your credit card to buy it. Paying huge amounts of money on interest is not smart and should be avoided. Slow down and think things over before deciding whether to buy an expensive item on credit. Talk to the store if you still want to buy a big-ticket item after thinking it over. You may be able to get financing in the store, and many times this is a better deal than using your credit card.
If your mailbox is not secure, do not request credit cards through the mail. Lots of credit card thieves say that they have taken cards from people's unlocked mailboxes.
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 determined to stop using credit cards, cutting them up is not necessarily the best way to do it. Just because the card is gone doesn't mean the account is no longer open. If you get desperate, you may ask for a new card to use on that account, and get trapped in the same cycle of charging you wanted to get out of in the first place!
Keep contact information for credit card companies, your account number, and all other relevant data in a safe place that is easy for you to access. Maintain it in a secure place, like a safe, and keep it separated from your cards. This list will assist you in getting in contact with lenders in case you have a lost or stolen card.
Never allow yourself to open too many credit card accounts. Instead, find two or three that really work for you and stick to those. Having too many credit cards can harm your credit and it makes using money that you do not have that much easier. Stick to a couple cards and you will remain safe.
If you pay your credit card bill with a check each month, make sure you send that check out as soon as you get your bill so that you avoid any finance charges or late payment fees. This is good practice and will help you create a good payment history too.
Prior to applying for a credit card, try to build your credit up at least six months in advance. Then, be sure to take a look at your credit report. By doing this, you are more likely to get approved for the credit card and get a higher credit limit, as well.
A useful tip for ensuring smart usage of credit cards is to only use them for purchases in amounts that are sure to be available in your bank account by the time the monthly statement arrives. By restricting purchases to amounts that can be easily repaid in full, you will build a solid credit record and maintain a strong relationship with your card issuer.
After reading this article, you should feel more comfortable when it comes to credit questions. By using each of the tips you have read here, you will be able to come to a better understanding of exactly how credit works, as well as, all the advantages and disadvantages it can bring to your life.
No comments:
Post a Comment