Great Advice For Picking A Credit Card
Posted at by CreditWiz on category Credit CardsWhen you use it well, a credit card can help you reduce stress and rack up perks. Other people who do not utilize the advantages of credit cards may charge their vacation expenses and be faced will a stressful bill later. If you want to manage a credit card well, read here for great ideas on ways to manage it wisely.
Always read everything, even the small print. If you receive a pre-approved card offer, make sure you understand the full picture. Understand the interest rate you will receive, and how long it will be in effect. You should also learn of grace periods and any fees.
Card issuers designate minimum payments so that they stand a better chance of maximizing the profits they make on interest charges. Pay more than the minimum payment. Avoid paying interest as much as possible in the long run.
If you are looking to open a credit card though you do not have any type of established credit, finding someone to co-sign for you can do the trick. You can have a friend, parent, sibling or anyone else that is willing to help you and has an established line of credit. Your co-signer must sign a statement that makes them responsible for the balance if you default on the debt. This is a great way to get your first credit card and begin to build your credit.
Don’t let anyone else use your credit cards. Although you might be tempted to help out a good friend, lending out your credit cards is not a good idea. You may end up exceeding your credit limit and incurring charges if they make charges you were not expecting.
Check your credit score regularly. Having a credit score that’s about 700 is what a lot of companies consider the limit for good credit. Wisely use your credit in order to maintain this level or to reach this level if you aren’t this high yet. When your score is 700 or more, you will receive the best offers at the lowest rates.
We have all experienced it: You get a credit card advertisement in the mail and it asks you to get a card from them. You may be looking for a new one, but you might not be. When you’re tossing out the mail you should tear it up first. Simply tossing it away leaves you at the risk of identity theft.
Always keep in mind that the introductory interest rate offered to you is not set in stone. The industry that runs credit cards are competing all the time, so they always have various interest rates. If you do not like your current rate, get in contact with your bank and request for a change.
Do not close too many credit accounts at once. Open accounts always help a credit score while closed accounts can end up hurting it. This is the case because closing a credit card account results in a lower amount of total credit for you, and that means that you will have a lower ratio between your total credit and the amount you owe.
Even without the advantages of points and perks like vacations, credit cards can be great tools to have at your disposal. People that are not smart about using their cards will be happy temporarily, but that will not last once the debt piles up. Use the things that you’ve learned from this guide to make wise decisions on spending money using your credit cards.