If you’ve never had a credit card of your own, you may be wondering if it’s worth it. The truth is, there are several tips first-time credit cardholders should follow in order to protect their finances and make using a credit card worth their while. Click below to learn the basics of opening and using your first credit card.
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If you’re looking to deduct your credit card interest from your taxes, here are some ways you can do it:
Fraudulent charges happen everyday on credit cards. That’s why identity theft protection is a multi billion dollar industry. People want to protect themselves in the event of a security breach.
In order to avoid liability for fraudulent charges, be proactive about checking your credit card accounts often. Also sign up for spending alerts so you’ll know when a purchase has been made. Some companies give daily alerts. Or, the moment a purchase happens.
Areas of your credit card statement to pay attention to:
Finance charges. These charges are the amount of money you will be charged if you do not pay off your balance in full.
Grace period. This is the period of time you have to until your payment will be deemed as late.
There is also an area that will break down how your current debt was calculated.
Use this information as your tool for helping you manage your credit. The more you understand, the more power you have over your finances.
You don’t want to finance purchases on your retail card because they typically carry a high APR rate. It’s best to not carry your balance and to instead pay it off before interest accrues. Most store cards may only offer awards worth only 1% of your spending. In other cases, non-store cards may offer up to 2% cashback on all purchases. It’s better to just use your retail cards for purchases in the store and to pay the balance off as soon as possible.
When you’re ready to apply for a new credit card, keep in mind the terms and conditions. Read through them carefully. By doing so, you ensure that you are aware of the introductory rates, annual fees, overseas transactions fees, APR details, balance transfer fees, and more.