Many people have become afraid of credit cards because of the many financial horror stories that they have heard. There is no need to be scared of credit cards. Credit cards are very helpful if you want to buy something and you would prefer not to utilize cash. This article contains some credit card advice that will help you to make smart financial decisions.
Never use your credit to buy things that are out of your price range that you cannot pay off. While it is okay to use your card for something that you know you will be able to afford to pay in the near future, you should avoid impulse and high-ticket purchases until you can save enough money to truly afford them.
Make sure your card doesn't have any annual fees, or you will pay too much. Annual fees for platinum or black cards could be in the range of $100 to $1,000 depending on the exclusivity of the card. If you don't really need an exclusive card, then you can save money and avoid annual fees if you switch to a regular credit card.
Monitor your balance regularly. Know the credit limit of that card. If you exceed your card's credit limit, you could be charged some hefty fees. Exceeding the limit also means taking more time to pay off your balance, increasing the total interest you pay.
Credit card companies state your minimum payment and hope you will not pay more so they can collect more interest on your balance over time. Always pay as much as possible in excess of the minimum payment. Don't get stuck paying high interest.
Talk to the credit card company if you are having financial problems. If it is possible that you will miss your next payment, you may find that a card issuer will help by allowing you to pay less or pay in installments. That may cause them to hold off reporting you to the credit agencies as being late.
Be wise with your use of credit cards. Limit your spending and only purchase things with your card that you can afford. Before using a credit card, make sure your income will cover the balance on your statement. It is very easy to create too much debt that cannot be paid off at the end of the month.
If you use your credit card to make online purchases, be sure the seller is a legitimate one. Call the toll-free or other phone numbers on the website to see if they work, and avoid buying from merchants that do not list an address on their website.
Don't send a credit card number through fax to anyone. A fax can be left in an office for a long time while anyone can get the card number. Any one of those people could unknowingly be a thief. This opens you up to fraudulent activity and all of the problems that come with it.
Before you get something online with a credit card, be sure that you can trust the seller. Call the company to talk with representatives and never buy from a merchant that does not provide a physical address.
As previously stated, people are frequently frustrated with their own credit card companies. To get a credit card that works well for you, spend the time to learn about your options before you apply. Use the advice featured in this article and start getting your credit cards to work for you, rather than against you. Click here!