Credit Card Do’s And Don’ts – Good Tips To Save You Pain And Money
It is possible for credit cards to assist people throughout the world in attaining their lifestyle goals. Having a credit card dramatically increases a person’s financial freedom. However, it is vital that one looks into all their options and does their homework before opening any credit card accounts. The following article has excellent tips on doing exactly that.
Be sure that you only use your credit card on a secure server, when making purchases online to keep your credit safe. When you input your credit card information on servers that are not secure, you are allowing any hacker to access your information. To be safe, be sure that the website starts with the “https” in its url.
To help you get the maximum value from your credit card, choose a card which provides rewards based on the amount of money you spend. Many credit card rewards programs will give you up to two percent of your spending back as rewards which can make your purchases much more economical.
Keep a watchful eye on your balance. In addition, you should ensure you know the limit your creditor has provided you. If for some reason you exceed your limit, you will be liable for large fees that you might not know about. It will take longer for you to pay the balance down if you keep going over your limit.
Never pay a credit card late. Not making your credit card payment by the date it is due can result in high charges being applied. Also, you run the risk of having your interest rate increased.
Always know what your utilization ratio is on your credit cards. This is the amount of debt that is on the card versus your credit limit. For instance, if the limit on your card is $500 and you have a balance of $250, you are using 50% of your limit. It is recommended to keep your utilization ratio of around 30%, in order to keep your credit rating good.
If you are determined to stop using credit cards, cutting them up is not necessarily the best way to do it. Just because the card is gone doesn’t mean the account is no longer open. If you get desperate, you may ask for a new card to use on that account, and get trapped in the same cycle of charging you wanted to get out of in the first place!
Don’t write your password or pin down in any circumstances. It is vital that you know your password, and that you’re the only one who has access related to it. Writing down your PIN, especially if you store it with your card, can put your account in jeopardy if the information falls into the wrong hands.