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Wednesday, 4 September 2013

The Right Way Of Using Credit Cards

By Marian Scott


Credit cards are often sounding boards for warnings of dangers of spending, borrowing and high interest rates. If used the right way, credit cards can be very beneficial. To find out how to make credit cards work for you, read the following article.

Should you notice a charge that is fraudulent on any credit card, immediately report it to the credit card company. When you do that, you will give the credit company a good chance of making sure the thief is caught. Doing this also helps ensure that you will not have to pay for such charges. You can usually report fraudulent activity through a quick telephone call to your credit company.

Understand the terms and conditions for any credit card prior to agreeing to the use of the card. You might see that their payment schedule, fees, and interest rate are higher than what you thought that would appear in your small business bookkeeping. The credit card policy should be read and understood before you use the card.

Review the specific terms of the offer. We have all been pre-approved for one card or another, but it's important to understand all of the specifics about that card before accepting it. Always be aware of what your interest rates are, as well as the amount of time you have to pay those rates. Finding out about these details, including other details like grace periods and add-on fees, will help you stay out in front of your payments.

Avoid the temptation to lend your credit cards to anyone. Even if it is a great friend of yours, that should still be avoided. Doing so can cause over-limit charges when someone else charges more to the credit card than you said he could.

It is commonly thought that high limits on credit cards should never exceed 3/4 of a consumer's monthly pay. If your balances exceed one month's pay, try to repay them as quickly as possible. That is simply due to the fact that you will end up paying an extremely large amount of interest.

Know that some charges, like restaurant and grocery charges, take longer to appear on your statement than others. That may cause you to spend greater sums of money, because you had the impression that more credit was available to you.

If you're not able to pay back something on a credit card bill, you may damage your credit rating. This can make it difficult to rent accommodation, get insurance or even become employed.

Go through old credit accounts and close the ones you don't use. Closure of old accounts makes it less likely that they will be used fraudulently. You can also close an account that you no longer want to use, even if there is a balance on the account. You simply pay the balance off after you close the account.

Don't have any new credit cards sent to you if you have a mailbox that is not locked at all times. Many people that steal credit cards have admitted that they have stolen cards that were delivered and placed in mailboxes that did not have a lock on them.

There are still many beneficial aspects to cards that provide no reward programs or other perks. People who don't use their cards properly may be gratified in the short term but suffer long-term stress over bills. Use the information you have learned here to be in the group you want to be in.




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