Don’t cut up your credit cards to stop yourself from overusing them. Instead, read this article to learn how to use credit cards properly. Not having any credit cards at all can hurt your credit score, so you can’t afford not to use credit. Continue reading, to learn how to use it appropriately.
Try your best to stay within 30 percent of the credit limit that is set on your card. Part of your credit score is made up of assessing the amount of debt that you have. By staying far under your limit, you will help your rating and make sure it does not start to dip.
Take the time to play around with numbers. Before you go out and put a pair of fifty dollar shoes on your credit card, sit with a calculator and figure out the interest costs. It may make you second-think the idea of buying those shoes that you think you need.
Be smart with how you use your credit. Many people are in debt, due to taking on more credit than they can manage or else, they haven’t used their credit responsibly. Do not apply for any more cards unless you need to and do not charge any more than you can afford.
If you have any credit cards that you have not used in the past six months, then it would probably be a good idea to close out those accounts. If a thief gets his hands on them, you may not notice for a while, because you are not likely to go looking at the balance to those credit cards.
If you are having trouble with overspending on your credit card, there are several ways to save it only for emergencies. One of the best ways to do this is to leave the card with a trusted friend. They will only give you the card, if you can convince them you really need it.
Take advantage of the freebies offered by your credit card company. Many companies have some sort of cash back or points system that is attached to the card you own. When you use these things, you can receive cash or merchandise, just for using your card. If your card does not offer an incentive like this, call your credit card company and ask if it can be added.
Anytime you apply for a credit card, you should always familiarize yourself with the terms of service that comes along with it. This will allow you to know what you can and cannot use your card for, as well as, any fees that you might possibly incur in different situations.
It is good credit card practice to pay your full balance at the end of each month. This will force you to charge only what you can afford, and reduces the amount of interest you carry from month to month which can add up to some major savings down the line.
Do not sign up for store cards in order to save money on a purchase. Often times, the amount you will pay for annual fees, interest or other charges, will easily be more than any savings you will get at the register that day. Avoid the trap, by just saying no in the first place.
Pay close attention to all of the interest rates on your credit cards. Many cards charge you different rates depending on the type of transaction you execute. Cash advances and balance transfers commonly command a higher rate than ordinary purchases. You must keep this in mind before you begin shifting money on and off various cards.
When deciding which credit card is best for you, be sure to take its reward program into consideration. For example, some companies may offer travel assistance or roadside protection, which could come in handy at some point. Inquire about the details of the reward program prior to committing to a card.
Take advantage of security features that your credit card company might offer. These might include things like adding your picture to your credit card. This is an additional step that merchants can use to verify that you are the person using the card, allowing them to help you keep your card safe from criminal activity.
Transferring a credit card balance from a high interest credit card to a card where the rate is less, can save you money every month. Credit card companies offer special introductory rates to attract new business to their credit cards. If you take advantage of one of these offers, make sure that you understand the amount of time that the introductory rate offer lasts.
By spending some time with a secured card, the company may offer you an unsecured credit card. You may also find that you start receiving mail offers for credit cards. This is the moment you must make important decisions about your situation.
Keep multiple credit card accounts open. Having multiple credit cards will keep your credit score healthy, as long as you pay on them consistently. The key to keeping a healthy credit score with multiple credit cards is to use them responsibly. If you do not, you could end up hurting your credit score.
When it comes to credit cards, be sure that you are weary of any sort of free offers. This is important, because a lot of times, the freebies that you are offered can be thought of as traps that may lure you in and end up costing you a lot of money in the future.
Now that you’ve read the article above, you should have a better understanding of why you should have two credit cards that you use regularly. So do not tear up your credit applications or try hiding them where you can’t find them. The important thing is to be responsible in using your credit, and the pointers in this article will help you to do that.
