Understand how the U.S. Fair Credit Billing- Act affects you. This law prevents consumers from being responsible for unauthorized charges to their credit cards. You can find this very helpful in the case of fraud. Sometimes credit card companies will try to make consumers responsible when they shouldn’t be, which is where this law comes in.
Never use your credit to buy things that are out of your price range that you cannot pay off. It can be tempting to buy large items on credit, but this practice can quickly get out of hand, leaving you with more debt than you can pay off. So, pass up the big purchases unless you have the cash.
If you have a history of managing your credit well, consider opening a cash-back rewards card for purchases like gas and groceries. This type of card is great for people who use their credit cards daily. The fact is that you might get upwards of $50-$100 back each month just because you bought things that you would have purchased anyway. The money that you save each month will add up over time. However, make sure that you pay off your credit card balance in full each month in order to avoid paying any interest on your balance and negating the cash-back rewards.
To cut your interest payments, do not hesitate to phone your credit companies and ask for better interest rates. If you have a good payment history with your creditor, you might be able to get better interest rates. You may be able to save money on your interest rates just by picking up the phone and calling your creditors.
Check with card companies about whether they’re willing to reduce their rates. If you have been a good customer for a while, many credit card providers will be more than happy to lower the interest rate that they are charging you. It could save you a lot of money and there is no cost to asking for it.
A great way to solve your credit card payments is to actually pay it down with an additional credit card. Just make sure that the other card has better rates. Even if interest rates are similar, other cards might give perks or points towards airline tickets. Make sure you make accurate comparisons before you make the decision.
You can get a lot of benefit from using a credit card if you use it as part of your overall financial strategy and think about what you’re doing. Whether its financial flexibility, emergency funds, or accumulating rewards, credit cards can really make your life quite a bit easier. Just use your credit wisely so that it benefits you, instead of increasing your financial challenges.
Porter Franjo Gorell interests includes buying on credit meditation, kitchen chemistry. Also, he really likes watching an Ottawa senators ice-hockey game live.