John Costello CPA Helpful Credit Card Tips and Advice for Consumers

1. John Costello CPA How to Find the Cheapest Interest Rate on A Credit Card John Costello CPA Skilled tips provider. Credit cards are essential in modern day society. They help individuals to build credit and purchase the things that they need. When it comes to accepting a credit card, making an educated decision is important. It is also important to use credit cards wisely, so as to avoid financial pitfalls. When you are unable to pay off one of your credit cards, then the best policy is to contact the credit card company. Letting it just go to collections is bad for your credit score. You will find that most companies will let you pay it off in smaller amounts, as long as you don't keep avoiding them. If you see any suspicious charges to your credit card, call your credit card company right away. This gives the credit card companies the most opportunity to catch the person responsible. This will also prevent you from becoming responsible for too many unauthorized charges. Credit card companies have an interest in making it easy to report fraud. Usually, it is as quick as a phone call or short email. John Costello CPA Skilled tips provider. The majority of people do not deal with credit cards in the proper manner. Although it is possible to get into debt in times of crisis, it should not be a regular occurrence under ordinary circumstances or a result in spending beyond your means, which leaves you with payments you cannot make. What you want to do is pay off your balance every month. This will allow you to use your credit cards while maintaining a low balance and raising your credit score.

2. A co-signer can help you obtain a credit card if you have yet to establish credit. A parent or other relative may be willing to be a co-signer. Your co-signer must sign a statement that makes them responsible for the balance if you default on the debt. This works great for getting a first credit card that you can use for building credit. Always sign the back of any new credit card as soon as you receive them. A lot of people forget to sign the back of their credit cards and this can have bad consequences if a credit card is stolen. Many merchants require the cashier to verify the signature matches so that you can keep your card safer. In order to keep a good credit rating, be sure to pay your bills on time. Avoid interest charges by picking a card that has a grace period. Then you can pay the entire balance that is due each month. If you cannot pay the full amount, pick a card that has the lowest interest rate available. John Costello CPA Skilled tips provider. To make sure you select an appropriate credit card based on your needs, determine what you would like to use your credit card rewards for. Many credit cards offer different rewards programs such as those that give discounts on travel, groceries, gas or electronics so pick a card that suits you best! Always know what your utilization ratio is on your credit cards. This is the amount of debt that is on the card versus your credit limit. For instance, if the limit on your card is $500 and you have a balance of $250, you are using 50% of your limit. It is recommended to keep your utilization ratio of around 30%, in order to keep your credit rating good.

3. Live by a zero balance goal, or if you can't reach zero balance monthly, then maintain the lowest balances you can. Credit card debt can quickly spiral out of control, so go into your credit relationship with the goal to always pay off your bill every month. This is especially important if your cards have high interest rates that can really rack up over time. John Costello CPA Skilled tips provider. There are many different kinds of credit cards that each come with their 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 credit cards you have available to you. It is best to stay away from charging holiday gifts and other holiday-related expenditures. If you can't afford it, either save to buy what you want or just buy less-expensive gifts. Your best friends and relatives will understand that you are on a budget. You can always ask ahead of time for a limit on gift amounts or draw names. The bonus is that you won't be spending the next year paying for this year's Christmas! Discuss lowering your interest rates with the credit card companies you use. If you have built a positive relationship with the company, they may reduce your interest rate. It never hurts to ask, and you could possibly save a bundle! John Costello CPA Skilled tips provider. Don't place your credit card number on anything that is visible to the public. This includes on the backs of postcards, on the outside of envelopes, and on publicly visible (and unsecure) areas of social media sites like Facebook, LinkedIn and Twitter. Sharing your information on mail or on social media can lead to serious credit theft.

4. When using your credit card online, only use it at an address that begins with https:\\. The "s" indicates that this is a secure connection that will encrypt your credit card information and keep it safe. If you use your card elsewhere, hackers could get hold of your information and use it for fraudulent activity. There are so many cards available that you should avoid signing up with any company that charges you a monthly fee just for having the card. This will end up being very costly and might end up making you owe much more money to the company, than you can comfortably afford. John Costello CPA Skilled tips provider. Credit is something that is on the minds of individuals everywhere, and the credit cards that help individuals to establish that credit arenol as well. This article has provided some valuable tips that can help you to understand credit cards, and use them wisely. Using the information to your advantage will make you an informed consumer.