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Solid Information About Using Credit Cards Wisely

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Solid Information About Using Credit Cards Wisely Powered By Docstoc
					Solid Information About Using Credit Cards Wisely

Great credit cards can be lifelines in financial jams. Do you have to
make a purchase, but have no money to make the payment? That's not a
problem! A credit card can alleviate this kind of problem. Would you like
to build up your credit? Using a credit card makes this easy. Read this
article to learn about more benefits you can get from a credit card.

Be wary when making online purchases with your credit card. Ensure the
site is secure before entering any credit card information online. Any
site that is secure will protect your identity, and keep your credit card
data under lock and key. Be very careful when replying to any emails you
receive that ask for personal information: you should call the company or
go to their website and do not reply to those emails.

One way to stop yourself from using a credit card on a whim is to
position them behind your bank cards in your purse or wallet. This helps
because you will know which card you are using if you are in a hurry
and/or not being very attentive.

Never use a cash advance to cover the bill for a credit card. Sometimes,
in desperation, card owners will use cash advances to get themselves
through a month that they cannot afford to make any credit card payments.
However, the interest rates and fees involved with this supposed trick is
really just creating an even bigger emergency disaster the next month.

Don't use your credit card for more than you can pay off. If you can't
make your payments, you risk damaging your credit score. If your credit
rating is damaged, it can be hard to get insurance, a car, or an
apartment. Sometimes it affects your ability to get a job.

These days, many credit card companies offer large incentives for using
their card. Pay close attention to the fine print so that you actually
qualify for the promised bonus. The most common is that you have to spend
a certain amount of money within a few months, so be sure that you will
actually meet the qualifications before you are tempted by the bonus
offer.

When looking for a new card, find one that has low interest and fees. It
doesn't make sense to pay an annual fee when there are many credit cards
that charge no fee.

Check out the integrity of your seller before using your credit card for
online purchases. Call vendor numbers to verify the company's validity.
If there is no physical address on the site, avoid transacting with them.

If your credit card company doesn't mail or email you the terms of your
card, make it a point to contact the company to get them. It is not
uncommon for issuers to change terms and conditions with relative
frequency. In many cases, the changes that you should really know about
are buried deep in legal jargon. Be sure to read through everything to
see the changes that may affect you, like rate adjustments and additional
fees.
Never lie about your income to get a card with a higher limit. A lot of
companies won't take a look at your income and they'll hand out cards
with bigger limits. This might end up making you charge too much, so it
will be impossible to pay it back.

Keep a running list of those items you are purchasing on credit this
month as a reminder of your accumulating debt. This way, you'll be
reminded of how much you owe and what you are spending your money on. A
lot of times, we allow credit card spending to get beyond our control by
not monitoring it.

If you apply for a store branded credit card, make sure it is a store
that you shop at regularly. The initial credit inquiry with the credit
bureaus that a retail store makes to sign you up will end up on your
credit report, whether or not you end up opening an account. Too many
inquiries can make your credit score go down.

Before canceling a credit card and closing your account, ensure you
understand how canceling it affect your credit. Sometimes, closing an
account can cause your credit score to decrease. In addition, if you have
cards that make up a large portion of your entire credit history, try to
keep them open and active.

Record the credit card account number and contact information for all
credit cards that you have. File the information away in a secure place.
This way, if someone's wallet is lost, they can call the company to
report it. It's vital to report lost cards as early as possible, to avoid
having to pay for fraudulent charges.

It is remarkable how many uses a credit card has. You can use them for
everyday purchases and to raise your credit rating. Make use of the tips
above and learn to use your credit cards wisely.

				
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