It is possible to use Credit Cards responsibly for Financial Freedom

Credit Cards are Essential in Modern Day Society

Many people think credit cards are bad but they help individuals to build credit and purchase the things that they need. When it comes to accepting a credit card, it is important to make an educated decision. It is also important to avoid financial pitfalls by using credit cards wisely.

Tips to Facilitate the Credit Card Maze

There are many different kinds of credit cards and each comes with its own pros and cons. Before you settle on a bank or specific credit card to use, be sure to understand all of the fine print and hidden fees related to the different available credit cards.

Before making that life-changing decision, you should research any of the credit service companies available today. You can go to Credit Karma to see which cards are recommended based on your current financial status. Also, MyFico is another good place to find out your credit score and credit history. Did you know…every year you can access your credit report for free via annualcreditreport.com from all three credit reporting agencies (Equifax, Experian, and Transunion).

If you are fortunate and your credit score is not low, try to find a credit card that does not charge a slew of origination fees, especially a costly annual fee. Surprisingly, there are many credit cards out there that do not charge an annual fee. It is likely that you will find one that you can get started with. Then you can develop a credit relationship with a credit card that you feel comfortable with the fee.

Another point to note when applying for a credit card is to be sure that you know what the annual percentage rate is on your agreement. This is very important because the APR can greatly affect your ability to pay your balance off since the interest charges add up. Since they add up quickly, having a high APR will end up costing you a lot more money in the future. Therefore, it is very wise to pay off the balance in full every month, if possible. This way, you will avoid the nagging interest payments and enjoy your purchases for the price you paid.

An absolute must is to sign up for alerts from your credit card company. Most, if not all companies offer alerts that can be conveniently sent via email or text. These alerts are vital to your credit portfolio. They inform you when you are nearing your credit card limit, when you are close to the due date for your payment or even, when suspected fraudulent activities have occurred. Technology has made it easier for you to manage your credit effectively, so take advantage of it and preserve your credit.

It is extremely important to retain credit card receipts whenever you charge an item or service. When your bill arrives each month, make sure that you compare your saved receipts with the monthly statement. You are looking for any discrepancies between the charges you have made and those that appear on your bill. If you notice any discrepancies, immediately report these issues to the company which issued your credit card. By following this necessary step, you can help protect yourself from human error and credit card fraud.

When it comes to paying your credit cards, there is no room for irresponsibility or forgetfulness. Your payment must be made timely or it may have an adverse effect on your credit report. Late credit card payments may show up on your credit report for up to 7 years and this will greatly affect your credit score.

The final tip…Before opting to purchase a roadside assistance plan, check to see if your credit card company offers this service. Some companies offer free roadside assistance to their credit card consumers, just for owning their card. So, you won’t need an extra roadside assistance plan, at all. Just make sure that you read and understand the terms of use for the roadside assistance, as well as any associated costs of the service.

Resources

Here are some books that can help you further to ensure that you are responsible with your credit cards…Click here

The Choice is Yours

We live in a society where credit is something that is on the minds of individuals everywhere. Remember, credit cards can help individuals establish credit. This article has provided some valuable tips to help you maneuver through the credit card process with a better understanding. It also pointed out the need to use them wisely. Of course, it is up to you to use the information to your advantage. If you follow the tips, you will be an informed consumer ready to join the ranks of responsible credit card holders.