No one knows more about your own patterns and spending habits than you do. How credit cards affect you is a very personal thing. This cryptodiscipline article will try to shine a light on credit cards and how you can make the best decisions for yourself, when it comes to using them.
Obtain a copy of your credit score, before you begin applying for a credit card. Credit card companies will determine your interest rate and conditions of credit by using your credit history, among other factors. Checking your credit score before you apply, will allow you to make sure you are getting the best rate possible.
Do not use your credit cards to make emergency purchases. Many people believe that this is the best use of credit cards, but the best use is actually for things that you purchase on a regular basis, like groceries. The key is, to only charge things that you will be able to pay back in a timely manner.
You should only open up retail credit cards if you plan on actually shopping at this store on a regular basis. Every time you apply for a retail credit card, an inquiry is noted on your credit report. Excessive inquiries from those retailers on your report can drop your credit score.
When you are looking over all of the rate and fee information for your credit card make sure that you know which ones are permanent and which ones may be part of a promotion. You do not want to make the mistake of going for a card with very low rates and then they balloon shortly after.
Emergency, business or travel purposes, is all that a credit card should really be used for. You want to keep credit open for the times when you need it most, not when purchasing luxury items. You never know when an emergency will crop up, so it is best that you are prepared.
If you have poor credit and want to repair it, consider a pre-paid credit card. This type of credit card can usually be found at your local bank. You can only use the money that you have loaded onto the card, but it is used as a real credit card, with payments and statements. By making regular payments, you will be repairing your credit and raising your credit score.
Never, ever use your credit card to purchase something that you cannot afford. Just because you can use your card to get a new TV doesn’t mean you can afford it. It costs a lot of interest, and that makes monthly payments pretty much impossible. Take some time to sleep on the the decision and make sure it is really something you want to do. Then, if you decide to purchase it, you may be able to get low interest rates through in-house financing.
When you make online purchases with your credit card, always print out a copy of the sales receipt. Keep your copy at least until you receive your monthly statement, to be sure that you were charged the authorized amount. If they did not, contact the company and file a dispute immediately. This smart technique will serve you well and ensure that you never get overcharged for your purchases.
If you are new to the world of personal finance, or you’ve been in it a while, but haven’t managed to get it right yet, this finance article has given you some great advice. If you apply the information you read here, you should be well on your way to making smarter decisions in the future.
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