Credit Card Do's And Don'ts - Good Tips To Save You Pain And Money

Credit cards are detrimental at best, for most people, and have been this way since their inception. If you don't know what to do or don't have access to good advice, credit cards can be hard to manage. Keep reading to learn more about managing your credit cards well.

Some people use their credit cards to avoid high bank fees or other problems. Avoid those pesky debit card fees with a credit card that you can pay in full each month and not incur any monthly fees. Some people, particularly the poor, are loading their paychecks on prepaid credit cards in order to save money on bank fees.

Save the plastic for larger purchases. Stores often have a minimum purchase amount for credit, meaning you may find yourself looking for extra items to add to your purchase that you did not intend to buy. Do not use a credit card for anything costing less than ten dollars.

Never lie about how much money you make just so you can apply for a card with an extremely high limit. There are some creditors that won't verify how much income you make and raise your limit regardless, which can put you in serious financial trouble if you charge beyond your means.

Carefully review all statements you get from your credit card company. Check each statement for any inaccuracies as well as changes you did not authorize. Report errors and mistakes to your credit company right away. Your credit score may benefit, and you can avoid overpaying.

As soon as you notice your credit card missing or stolen make sure you contact your credit company immediately. You can still be charged a total of the first $50 that someone else charges on your credit card, but remember it is still better than paying the whole amount. Just make sure you inform your credit card company as soon as you can.

To make sure that you don't end up in over your head, study a bit about credit before taking on a card. There's a new billing act out there that can shed some light on the subject: the FCBA. What this act does is makes it so consumers don't have to pay for any purchases on their credit that was unauthorized. It can help prevent fraud if you know how it works. There are times when companies may try to make you responsible for unauthorized charges; this is why it is important to stay abreast to all governing credit card laws.

Don't apply for more than two credit cards. Every application for credit is recorded on your credit file, and large numbers of applications could negatively affect your overall credit score. Many times, guaranteed approval cards will charge you really high rates.

As you have read, credit cards are a complicated business that can frustrate almost anyone. If you know how to use them, though, they do not have to cause you trouble. Implement the tips in this article and deal with your credit cards effectively.