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Credit Cards And Personal Finance: Tips For Finding Balance

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Although they are not going to completely supplant cash money anytime soon, credit cards are a vital part of personal finance and will certainly remain so in the future. As debit card fees are increased, many individuals are choosing to turn to credit cards to make their daily transactions. Continue reading and you will learn a lot about this growing financial industry.

Don’t consider opening a store credit card unless you plan to make purchases at the store on a regular basis. When a retail store inserts an inquiry onto your credit in order to qualify you for a card, this is recorded onto your credit report regardless of whether you actually open up the card. A report that is peppered with too many credit inquiries like those made by retail stores can hurt your overall credit score.

If you only pay the minimum amount each month on your credit card, only the credit card company benefits. The monthly minimums are deliberately designed to be so low that you will be paying for years in in order to pay off your balance. In the meantime, the credit card company will be collecting inordinate amounts of interest from you. Make payments beyond what your minimum payment is set at. By doing this, you will avoid paying high amounts of interest that can really add up in the long run.

You surely wish to steer clear of late charges as well as over limit fees. Both fees are pretty expensive and can also affect your credit score. Don’t pass your credit limit or you will suffer.

If you do not have credit and want a credit card, consider getting a co-signer. A friend that you trust, a parent, sibling or anyone else with established credit can be a co-signer. A co-signer states they are willing to be responsible for the debt if you default. This works great for getting a first credit card that you can use for building credit.

Before you get something online with a credit card, be sure that you can trust the seller. Try calling the listed phone numbers to ensure the company is in business and always avoid purchases from companies that do not have a physical address listed.

Never give the number of your credit card out when you receive a telephone call asking you for it. Scammers often employ these shady tactics. Only give your number out to trusted businesses and your credit card company when you call them. Never give any personal information to anyone who calls you. Regardless of who they claim they are, you have no way of verifying it if you did not call them.

If you have damaged your credit, think about getting a credit card that is secured. These cards require a collateral, which is the balance. Think of it as borrowing against your own savings account, and paying an interest for that right. Not the best idea, but it can help you better your credit. If you want a secured credit card, stick with large, well-established credit card companies. Down the road, you may even be able to switch to an unsecured (regular) credit card.

Review credit card statements as soon as they are available. Look for any inaccuracies in the charges you have made, as well as any changes that you did not make at all. If you see a questionable charge, immediately report it to the credit card company. By keeping a close eye on all of your statements, you will prevent inaccurate charges and keep your credit score high.

Always verify your charges and fees to make sure they are accurate instead of simply focusing on interest rates. There are also charges like service charges, cash advance fees and application fees. These can make a card seem worthless if they cost too much.

Credit cards are fast becoming the preferred method of payment for most people as debit cards are becoming more regulated. With the way that the credit card industry is expanding and involving, you can certainly take advantage of the available opportunities yourself. Just use everything about credit cards that you’ve learned here.

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