Many people think all credit cards are the same, but this is not true. Credit cards can have different limits, rewards, and even interest rates. Selecting the right credit card takes a lot of thought. Here are some tips that will help you select the right credit card.
Keep track of how much money you are spending when using a credit card. Small, incidental purchases can add up quickly, and it is important to know how much you have spend on them, so you can understand how much you owe. You can keep track with a check register, spreadsheet program, or even with an online option offered by many credit card companies.
If a fraudulent charge appears on the credit card, let the company know straightaway. If you do this, your credit card company will have a good chance of tracking down the thief. It’s also the most efficient way to limit the liability you face for the incurred charges. All it takes is a quick email or phone call to notify the issuer of your credit card and keep yourself protected.
In terms of a retail store’s credit options, you should never get a card with them unless you’re a loyal, regular customer. Every application for a credit card is recorded on your credit file, even if you do not actually open up a store card account. If you have too many credit inquiries, your credit score may take a hit.
Take advantage of the freebies offered by your credit card company. Many companies have some sort of cash back or points system that is attached to the card you own. When you use these things, you can receive cash or merchandise, just for using your card. If your card does not offer an incentive like this, call your credit card company and ask if it can be added.
It is important for people not to purchase items that they cannot afford with credit cards. Just because an item is within your credit card limit, does not mean you can afford it. Make sure anything you buy with your card can be paid off by the end of the month.
Pay off as much of your balance as you can each month. The more you owe the credit card company each month, the more you will pay in interest. If you pay even a small amount in addition to the minimum payment each month, you can save yourself a great deal of interest each year.
Always make a copy of receipts made from online purchases. Keep receipts until you can verify the store that sold you the item charged you the same amount that you are charged on your credit card. If they did not, contact the company and file a dispute immediately. This will ensure you don’t get overcharged for your purchases.
Now that you realize that all credit cards aren’t created equal, you can give some proper thought to the type of credit card you might want. Since cards differ in interest rates, rewards, and limits, it can be tough to choose one. Luckily, the tips you’ve received can help you make that choice.