Need Some Credit Card Advice? Read On
Posted at by CreditWiz on category Credit CardsThe first step in choosing a credit card is making sure the benefits outweigh the costs. This article was written to teach you about the proper way to use credit cards. Many people have cards, but don’t know properly use them.
Always make sure there is not a yearly fee attached to any credit card that offers rewards or perks. If you are the owner of a platinum card, or a black card, the annual fees can be up to $1000. If you do not require a card like this, choose a card with lower or no fees.
The reason credit card companies have minimum payments is because this is the amount they would like you to pay so they get the most money out of you over a longer period of time. Always pay above the minimum. By doing this, you will avoid paying high amounts of interest that can really add up in the long run.
Watch your balance carefully. You also need to know how close you are to your credit limit. Going over your credit limit will raise your fees and your overall debt. Exceeding your credit card limit can impede your ability to pay off your balance quickly.
If you wish to have credit cards but you have no established credit, get a co-signer. A co-signer can be a parent, sibling, trusted friend or anyone else who has already established credit. Your co-signer must sign a statement that makes them responsible for the balance if you default on the debt. This method is a smart way to help build your credit with a first credit card.
Make sure you use any credit card you obtain wisely. Limit spending and just buy things you can afford with that card. Before using a credit card, make sure your income will cover the balance on your statement. A balance that is carried makes it easier to create a higher amount of debt and makes it more difficult to pay it off.
Check out the types of loyalty rewards and bonuses that a credit card company is offering. If you use credit cards often, try to find a card with a great loyalty program. If you use your card wisely, you can get quite a lot back from your card.
The best credit cards come along with having great credit. Credit card companies use these scores to figure out what card you are eligible for. The best credit cards, those with low rates, cash back, and great points options, are only given to consumers with superb credit scores.
Select a password for your card that’s tough to identify for someone else. Don’t use something obvious, like your birthday or your pet’s name, because that is information anyone could know.
As previously discussed, it is extremely easy to get in over your head when you utilize credit cards. Too many credit cards, too many shopping sprees and soon, you will be in big financial trouble. With any luck, this piece can provide the help you need to steer clear of credit card dilemmas and maintain your financial health.