Basic tips for using credit cards wisely Using a credit card seems simple.

Take it out of your wallet, slip it into your credit card reader (if you upgrade to an EMV chip credit card, plug it in) and leave with what you bought.

If it were so simple! Understanding all the knowledge about credit cards is the key to staying away from the hassles of the credit card.

Basic knowledge about the use of credit cards

The card issuer provides you with a certain amount of credit limit so you can borrow money again and again. All you have to do is adhere to the terms of the credit card agreement.

This usually means paying on time, staying within your credit limit, not using your credit card for scams or buying illegal items. Purchases with your credit card must be reimbursed, but the issuer of your credit card gives you the option to pay your balance after a period of time. You can continue to use your credit card even if you have a balance as long as you have sufficient credit available.

For example, if your credit limit is $ 1,000 and your current balance is $ 400, then you still have $ 600 in credit that can be used for future purchases. If you decide to pay after a period of time, you must pay at least once a month before the due date of each month. Otherwise, you will face any fine for overdue payments.

In addition, you will have to pay interest on any balance you pay over a period of time. That is the point of using a credit card.

We will delve into the details.

Choose the correct credit card

You can not simply choose a credit card because you see it in the ad, or you get a job invitation in the email. There are many credit cards with different rates, interest rates, rewards and other benefits in the market.

Here are some suggestions for choosing the correct credit card. Decide what you want to obtain from your credit card.

Do you want to pay the balance at a lower rate? Do you have a reward for shopping? Buy many things without paying interest? Start to build or create your credit?

These are the main types of credit cards you can choose from:

Standard or “normal” credit cards are basic credit cards and offer no reward or special benefit. Credit cards pay in cash, miles or points.

The credit card transfer balance provides (temporarily) a lower introductory interest rate for the balance you transfer to your credit card. Low interest rates on credit cards offer a low entry rate for purchases.

Some credit cards offer low interest rates on balance transfers and purchases. Premium credit cards offer higher rewards and other luxurious benefits.

These credit cards usually charge a high annual fee.

Credit cards for students are mainly intended for young people enrolled in regular four-year colleges or universities.

Retail credit cards can only be used at specific retail stores. Check the cost and interests. Reduce your options, look at the price of your credit card and find out the price of your credit card.

If you choose an annual fee credit card, make sure these benefits are worth it. Compare similar credit cards. Compare the interest rates, fees, rewards and benefits of credit cards from different card issuers.

You can view the terms of the credit card online on the website of each credit card issuer or using the credit card comparison website. Know your credit rating. Your credit history will play an important role in the process of applying for a credit card.

Generally, you need a higher credit score to qualify for reward credit cards, credit cards and promotional rates, and Premium credit cards.

Once you have chosen a credit card, you can complete your credit card application online and determine in a few minutes if it is approved.

Get information about credit card charges Credit cards may be accompanied by some charges. Some can be avoided, depending on how you use your credit card. It must be anything else.

The general charges of the credit card include: Annual fee. This is the fee for your credit card account that will be charged once a year.

Some credit cards are exempt from annual fees in the first year. Charges for late payments

Credit card issuers charge late fees if you pay less than the minimum amount per month or receive it after the due date. Balance transmission costs.

When transferring the balance of another credit card, you will be charged a balance transfer fee, which is the percentage of the amount of the transfer. Charges for early payment. If you use a credit card overdraft to withdraw money, you will be charged a cash advance.

Advance charges in cash are a percentage of the amount you pay in advance. Financial costs.

When you have a balance on your credit card, you will be charged interest in the form of a financial rate. Transaction fees for foreign countries. The fee was bought in other currencies.

The handling fee is usually a percentage of the transaction amount and certain types of credit cards can be exempted.

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Most credit cards allow you to perform three operations: purchase, transfer of balance and advance payment in cash. When you buy with a credit card, you are buying. Most of your transactions are susceptible to purchase and can be made by person, online or by phone. Generally speaking, there is no charge for purchases with credit cards. However, you will have to pay interest on any balance on your credit card.

Balance transfer means that you transfer the balance from one credit card to another. You can transfer the balance to take advantage of lower interest rates or consolidate your credit card balance.

Balance transfers are generally subject to a balance transfer fee and may have to be paid at a higher rate than the purchase. Cash advance means that you use a credit card to withdraw money from an ATM. Equivalent cash transactions can also be considered cash advances. This includes transfers of protection against overdrafts and the purchase of money orders or bank transfers. Cash advances generally charge cash prepayments and higher interest rates.

Avoid cash advances on credit cards because they are much more expensive than other types of transactions.

Get information about the interest of credit cards The issuer of the credit card charges interest on the transactions of your credit card.

Interest rates are expressed in annual or annual interest rates. Your credit card will have several different CPRs: one for the purchase, one for balance transfer, one for cash advance and a CPR penalty that is charged when the terms of your credit card are predetermined. The interest rate on your credit card has something to do with your credit.

In general terms, the better your credit is, the lower the interest rate you get. Most credit cards have variable CPR, which means they can float up and down according to the underlying index rates, such as preferential rates.

If you default on refunds for more than 60 days, your credit card fee will also increase to a fine of April 4.

Interest is recorded on your credit card in the form of a financial rate, which is calculated based on your balance (or your average daily balance) and your RCP. Your credit card can have a grace period during which you can pay your outstanding balance in full and avoid being charged a fee. According to the terms of your credit card, the grace period is between 20-30 days. If you start the billing cycle with a balance, or if the transaction does not receive a grace period, the grace period may not apply.

Cash advances and balance transfers generally do not have a grace period.

Earn rewards with a credit card Reward your credit card purchase rewards.

You can accumulate rewards and then redeem them for cash, travel expenses, gift cards and merchandise. Many reward credit cards give more rewards for certain types of purchases.

For example, a travel credit card may pay more for flights and hotels that you book with a credit card. It is important to know the terms of your reward credit card-the amount of reward you receive when you buy, the minimum amount of redemption, any due date of the reward, and what you can do to confiscate your reward.

For example, if you default on your credit card payments, you may lose the rewards you accumulate.

Manage your credit limit Most credit cards have lines of credit-the maximum amount you can spend on your credit card.

Your credit limit is based on your credit history, income and the type of credit card you request. Maintaining your credit limit allows you to avoid fines and keep your account in good standing. Also, keeping your credit card balance below your credit limit is better for your credit score.

The issuer of your credit card can automatically increase your credit limit and be responsible for your use of your account on a regular basis, and your income increases. You can also ask the issuer of your credit card to increase your credit limit if you have not received the last improvement in months.

When you request an increase in your credit limit, the credit card issuer verifies your account history, income and credit history to determine if you are eligible. Some credit cards do not have a previously established spending limit. Having a credit card without a pre-set spending limit does not mean you have an unlimited expense on your credit card. Instead, it means how much you can spend on your credit card depends on your typical spending habits, credit history and ability to pay.

If you want to know if you can buy a large sum of money with your credit card, you can call the issuer of your credit card to ask about your spending limit.

Read the invoice Each month, you will receive an invoice that will include all the transactions made in your account during the billing cycle.

The invoice also lists your outstanding balance, your current minimum payment amount and the due date. Your bill will arrive at your billing address to the issuer of the credit card.

Or, if you have signed up for a paperless invoice, you will receive an email that lets you know if you log in to see your account online to see your bill. Do not take it for granted that everything in your credit card statement is accurate.

Carefully read each transaction on your credit card to make sure that your previous payment and other lines of credit were used correctly, that you paid the correct amount for all purchases, and that there were no unauthorized transactions on your credit card. If you find an error in your invoice, you have the right to discuss the problem with the issuer of your credit card. The moment of the argument is important. You have 60 days from the date the invoice is sent to you, and you can raise your dispute. In order to protect your rights under the fair credit bill, your dispute must be made in writing.

Check your invoice to find the mailing address of the sender. Any unauthorized fees must also be reported to your credit card issuer so they can be removed from your account.

If you suspect that your credit card account has been stolen, you can also receive a new credit card with a new account number.

Pay by credit card In accordance with your credit card agreement, you must pay monthly. Unless you have a debit card (which requires you to pay your balance in full), you only have to pay the minimum amount.

The minimum payment is only a fraction of your unpaid balance and is generally easy to pay. Even if the issuer of your credit card only asks you to pay the minimum amount, it will usually be better to pay more. With the minimum payment, your balance will only fall by a fraction per month, since most payments will be used to pay interest. This increases the time it takes to pay the arrears.

Ideally, you must pay your full balance each month. It is important to pay by credit card on time each month. Otherwise, you will receive payment dates for past due payments that are not received.

If your payment is delayed by more than 30 days, the notice of delay will be added to your credit report and will affect your credit score. The issuer of your credit card offers you some options for payment. You can use your checking account and your routing number to send checks by mail, make phone calls or pay online. You can not pay for your credit card with another credit card or even with a debit card.

You can even set up automatic transfers to make sure your payment is made on time, if you have trouble remembering each month. The worst thing you can do is give up your credit card payments, whatever the reason. If you notify them before you default on their repayments, most creditors will help you.

Call your creditors, give a brief description of the situation and ask about your options.

Deactivate credit cards Not all credit cards must be permanently maintained. You can consider reducing the number of credit cards. Alternatively, you can deactivate your credit card because the issuer of the card has changed the terms of the credit card.

Turning off your credit card is as simple as calling your credit card editor, but there are some things you should know before taking action. Deactivating a credit card can damage your credit score, especially if the credit card has a balance or rep

If you close a credit card while you still have a balance, your credit score may be affected.

Fortunately, when you pay off your debt, your credit score should go up. Until you reach more than 0, your monthly recurring payments will still be due, even after your credit card is closed.

When your account is closed, you will continue to suffer the same consequences: late fees, increasing interest rates and credit reports. Before closing your credit card, cancel any automatic payment or subscription, such as music or streaming services, that you have set up with your credit card. Otherwise, these payments will be withdrawn. You may face cancellation or other fines from your service provider.

Check your credit card’s recent bill to see how you pay automatically with your credit card. Use any reward you accumulate before closing your credit card.

Once your account is closed, you may lose any unused reward.

Avoid credit card debt Because when you use a credit card, you are borrowing money, so you are at risk of falling into debt. Paying off the debt can take years, thousands of dollars and many sacrifices.

It is much easier to be proactive and away from credit card debt. The key to avoiding credit card debt is to get into the habit of only receiving rates that you can afford. Once you start paying for a lifestyle that is beyond your reach with a credit card, you risk falling into credit card debt.

The more credit cards you have, the easier it will be to enter your account. Make informed decisions when buying the items you need and the items you want. We have all used the word “need” to describe what we really want.

Using a credit card responsibly means identifying what you need and what you only want. Avoid using a credit card for everyday purchases, unless it is about getting a reward or better manage your money. Replacing cash with a credit card is a habit that can lead to debt.

In general, when you buy, place your credit card in your wallet and replace it with a debit or cash card. Pay your balance each month. As long as you pay back your credit card balance, you will not be in debt.

Once you can not pay your full balance, it’s time to control the expense of your credit card until you pay your balance.

How to handle credit card scams Nowadays, having a single credit card is at risk of becoming a victim of credit card fraud. Hackers can steal your credit card information from companies where you use credit cards. They are increasingly adept at stealing credit card information from gas stations and other businesses.

In addition, they are intended to be your bank or another company that does business with you, enticing you to deliver your credit card information.

Many credit card companies will prevent your account from being tricked by rejecting unusual purchases until they confirm that you are the person trying to make a deal. You can avoid credit card scams by protecting your credit card information. Do not enter your credit card information on a suspicious website or post it on the Internet.

And keep a record of your credit card. Monitor your credit card transactions by creating an online account with the credit card publisher.

In this way, you can often check your credit card transactions to find any suspicious charges. If you find an unauthorized fee, please inform your credit card issuer immediately so you can cancel these charges and you can receive a new credit card.

Most credit card issuers do not have a fraud liability policy, which will keep you from being responsible for fraudulent charges in your account.

Credit cards and your credit score Your credit score is a number that summarizes the information on your credit report.

Many creditors and lenders use your credit score to decide whether to approve your application and set your price. Most major credit card issuers send updated information to the credit bureaus, which are responsible for compiling and maintaining information about their credits.

This means that the way you use your credit card will have a direct impact on your credit score. Using a credit card responsibly will help you build and maintain a good credit score. The two best things I could