Credit cards can be your best friend or your worst enemy. With just a little attention or energy, you can go out on a shopping spree that ruins you financially for months or maybe even, rack enough points for airline tickets to Europe. To make the most out of your credit cards, read on.
Be sure to limit the number of credit cards you hold. Having too many credit cards with balances can do a lot of harm to your credit. Many people think they would only be given the amount of credit that is based on their earnings, but this is not true.
Don’t use passwords and pin codes on your credit cards that can easily be figured out. Information like birth dates or middle names make terrible passwords because they can be easily figured out.
When you use a credit card online, keep a copy of your sales receipt. Check the receipt against your credit card statement once it arrives to ensure that you were charged the correct amount. If they did not, contact the company and file a dispute immediately. This can be an excellent method of assuring you don’t get overcharged for purchases.
Be careful when you use credit cards online. Before entering card information online, ensure you’re using a secure site. Secure sites protect your card information from being stolen. Also never respond to an email that asks you for a credit card number as this is likely fraudulent.
Try setting up a monthly, automatic payment for your credit cards, in order to avoid late fees. The amount you need for your payment can be automatically withdrawn from your bank account and it will take the worry out of getting your monthly payment in on time. It can also save money on stamps!
If anyone ever asks for credit card numbers by phone, do not give out this information. This is a common ploy for scammers. Only allow those that you trust to have your credit card number. Do not give your credit card information to anyone who calls you. No matter who they claim to be, you do not know who they are.
You may want to consider using layaway, instead of credit cards during the holiday season. Credit cards traditionally, will cause you to incur a higher expense than layaway fees. This way, you will only spend what you can actually afford during the holidays. Making interest payments over a year on your holiday shopping will end up costing you far more than you may realize.
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.
As was mentioned earlier, credit cards can accelerate your life. This can happen towards piles of debt or rewards that lead to dream vacations. To properly manage your credit cards, you must manage yourself and intentions towards them. Apply what you have read in this article to make the most of your cards.