Check Out This Great Credit Card Advice
Posted at by CreditWiz on category Credit CardsMany people have despised credit cards since they were first invented. Along with other things, a credit card can be hard to manage if you aren’t sure how to use one. This article will go over some tips that can help you learn a little more on the subject of credit cards.
It’s useful credit practice to continuously keep two or three active credit cards. You can improve your credit score by managing these cards responsibly, especially if you keep from carrying month-to-month balances on the cards. That said, if you go all out and open four or more cards, it may look bad to lenders when they evaluate your credit reports.
Always check the fine print. If there are offers that allow you to be pre-approved for a card or if the person is saying you can be helped to get a card, you have to know the details before signing up. It’s important to know what your interest rate is and will be in the future. Research extra fees, as well as grace periods.
To keep your credit score high, make sure to pay your credit card payment by the date it is due. Making your payments late will negatively affect your score and cost you additional fees. Avoid this problem by setting up automatic payments to come out of your bank account on the due date or earlier.
Be sure to check your credit card’s terms to see if it charges an annual fee to use the card. You want to make sure that you don’t pay a premium for the credit card. Annual fees for black or platinum cards can range from $100 to $1000 depending on the card’s exclusivity. The best bet is that if you do not need a premium credit card, avoid them and do not pay the fees.
If you have not yet established your own credit history, a co-signer can help you get your first credit card. This can be a family member or friend with existing credit. They need to be willing to pay for your balance if you cannot pay for it. This works great for getting a first credit card that you can use for building credit.
Make sure you use any credit card you obtain wisely. Try not to spend too much and only make purchases you’re able to pay back. Before using credit cards to get something, you need to know if you’re able to pay it off right when you get a statement. If you carry balances, you are more likely to get caught in a cycle of debt that is difficult to escape.
Never use passwords or pin codes on credit cards that are easy to figure out. It is a huge mistake to use something like your middle name, date of birth or the names of your children because this is information that anyone could find out.
A lot of experts agree that a credit card’s maximum limit shouldn’t go above 75% of the amount of money you make every month. If your limit is higher than this, try to pay it off quickly. If you do not or cannot, the amount of interest you pay quickly skyrockets to excessively high amounts.
As this article said before, a credit card can be hard to use as well as frustrating for some that have to deal with them. However, with the right tips and advice, dealing with them could be easier than what you’ve expected. Implement the tips in this article and deal with your credit cards effectively.