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Whenever possible, prior to the due date, pay your debt off in full. By doing this, you are building your credit up, which in turn, opens up many doors. Paying in full is not absolutely necessary, but if you can do it you can avoid paying interest charges and therefore save money. It’s easy to get confused when you look at all the credit card offers that are out there. However, if you educate yourself about credit cards, you won’t sign up for a card with a high interest rate or other problematic terms. Read this article to learn more about credit cards so that you can figure out which card best suits your needs.
If your card is stolen or lost, immediately contact your credit card issuer to report it. The majority of companies, nowadays, just hold you accountable for $50 of charges that a thief makes; however, it is a good idea to involve them as soon as you can.
Always make sure to pay the minimum balance each much, but it is better to pay more. If you don’t send in any money, your credit score may go down, impacting your ability to get credit later. In addition, you could pay an addition fee because many card companies tack on a hefty late-payment fee.
Many companies advertise that you can transfer balances over to them and carry a lower interest rate. This sounds appealing, but you need to carefully consider your options. Think about it. If a company consolidates a higher amount of money onto one card and then the interest rate spikes, you are going to have a hard time making that payment. Know all the terms and conditions, and be careful.
Check through your old credit card accounts and consider closing any that you no longer use. Closing old accounts will prevent those accounts from being 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 can continue to pay off the balance until it is repaid. You may want to try a cash-back type of credit card. These cards offer a cash incentive when you purchase gas or groceries. These cards are great for everyday purchases. By purchasing gas and groceries on your credit card, you can get back over $50 every single month. You can use this for extra holiday cash. The key is to not carry a balance and pay interest payments, which cancel out rewards.
Pay close attention to all of the interest rates on your credit cards. Many cards charge you different rates depending on the type of transaction you execute. Cash advances and balance transfers commonly command a higher rate than ordinary purchases. You must keep this in mind before you begin shifting money on and off various cards.
Ask for reduced fees and interest rates if you ever miss a particular payment or if you pay it late. Some credit companies raise your interest rates, plus add extra fees when you send in a late payment. You may be able to reduce these charges by calling the credit company.
» Martin J. Peacock