Important Reminders for Credit Cardholders
Credit cardholders, like you, should pay close attention to the reminders we have listed below. We believe that by keeping these things in mind, you can improve your chances not only of building a solid credit profile but also of protecting your financial prospects.
4 Things You Should Always Remember
Your spending habits can have a huge impact on your credit history. After all, most card issuers today submit reports of your credit and payment transactions to the three major credit bureaus. And these firms, in turn, compute your credit score based on the reports they receive. This means that an irresponsible credit habit – like spending beyond your credit limit or skipping or completely defaulting on your credit card bills - can have a negative impact on your credit history. In fact, it can pull your score down and ruin your chances of scoring excellent credit deals. So, you should resolve to manage your credit card in the best way you can. Bear in mind that good credit habits can help you maintain an excellent credit standing or rehabilitate your damaged credit history.
Making on-time and complete payments can help you save a great deal of money. Keeping up with your credit card bills is not just the best way for you to build or maintain a good credit history. It is also an excellent way for you to generate huge personal savings. After all, by making prudent payments, you can avoid incurring penalties usually charged to cardholders who pay their bills late. Moreover, by paying your bills in full, you won’t have to worry about shelling out way too much funds on interest charges. That way, you can set aside and use your money for more important expenses.
Submitting multiple card applications is a big NO-NO especially if you’re already managing at most two lines of credit. Keep in mind that applying for more unsecured credit cards for poor credit will only increase your likelihood of falling into debt traps. At the same time, it can cost you your good credit standing. After all, you lose valuable points from your credit score each time your credit report gets pulled out in response to a credit application. This only means that you have to content yourself with your existing lines of credit. And resolve to apply for another credit program ONLY WHEN IT IS ABSOLUTELY NECESSARY.
Always examine your billing statements. Make sure that the statements you will receive are always accurate and up-to-date. Find time to review all your transactions and look for receipts or proofs of purchases that will help validate each transaction you’ve made. In case you discover an unauthorized charge made on your credit card, immediately write a letter requesting the card issuer to investigate the transaction. That way, you won’t be held liable for charges you never made. At the same time, the charge won’t have a negative impact on your credit history. More importantly, you can help the authorities apprehend the party responsible for the fraudulent or unauthorized transactions made using your credit card.