While credit cards are a major part of many people’s lives but there will still always be the need for real cash. However, almost everything can be done with a credit card, including paying utility bills and for almost any purchase you can think of. Used in a sensible manner, having a credit card can be a huge advantage to you. However, this does depend on you and your financial management skills, along with your ability to not be tempted to use your credit card for everything. Read on for some top credit tips:
- If you think you are being charged too high an interest rate, speak to the credit company. They may be able to do something about giving you a more preferable rate, especially if you are a long-standing customer who keeps their account up to date. You are the type of customer they want and they will usually do whatever they can to accommodate you and keep you as a customer.
- Start off with a secured credit card. This will build up your credit history and give you a chance to prove that you can manage it and keep up the payments. Later on down the line you may be offered an unsecured one.
- Keep track of your spending and peruse your monthly statements carefully. Any problems will come to light straight away and they will be easier to fix if too much time hasn’t been allowed to pass.
- Make sure you only give out your card numbers to trustworthy companies, especially on the internet or the telephone. Check out online sellers before making any payment and verify that they are a genuine company or individual. Don’t fall for offers that require your credit card number as many of them are just scams.
- Don’t take out a retail credit card unless you use the retail store on a regular basis.
- Put your debit card first in your wallet. That way, you might think twice about using your credit card and it might stop you using it by accident if you are in a hurry or not paying attention at the checkout.
More and more people are using credit cards these days. This is partly because they are convenient and they are also starting to work out cheaper than using debit cards. Banks are starting to increase debit card fees quite a bit now, making them untenable to actually use in some circumstances.
Using a credit card sensibly, making your minimum payments on time every month and not going mad and buying everything you see will all help you to get the best out of your card and increase your credit score considerably. Some people will put all of their monthly expenses onto their credit card – this may be because they get reward points or air miles for example. However, this is only advisable if you know that you can pay the balance in full every month. This will also reduce your interest rate and eliminate any penalties for late payment.