If you want to get your first credit card, but you aren’t sure which one to get, don’t panic. Credit cards aren’t nearly as complicated to understand as you might think. The tips in this article can help you to figure out what you need to know, in order to sign up for a credit card.
Consumers should shop around for credit cards before settling on one. Many different credit cards are available, each offering a different interest rate, annual fee, and some, even offering bonus features. By shopping around, an individual can find one that best meets their needs. They can also get the best deal when it comes to using their credit card.
Do not close any credit card accounts without finding out how it affects your credit report. In some circumstances, closing credit card accounts can negatively affect the credit report, which is something that should be avoided. Also, keep open all the accounts that make up most of your history.
If possible, pay your credit cards in full, every month. Use them for normal expenses, such as, gasoline and groceries and then, proceed to pay off the balance at the end of the month. This will build your credit and help you to gain rewards from your card, without accruing interest or sending you into debt.
Practice sound financial management by only charging purchases that you know you will be able to pay off. Credit cards can be a quick and dangerous way to rack up large amounts of debt that you may not be able to pay off. Don’t use them to live off of, if you are unable to come up with the funds to do so.
To help you get the maximum value from your credit card, choose a card which provides rewards based on the amount of money you spend. Many credit card rewards programs will give you up to two percent of your spending back as rewards which can make your purchases much more economical.
Never give out your credit card number to anyone, unless you are the person that has initiated the transaction. If someone calls you on the phone asking for your card number in order to pay for anything, you should ask them to give you a way to contact them, so that you can arrange the payment at a better time.
Never pay a credit card late. Credit card balances must be paid by a certain date. If this does not occur, hefty fees may be imposed. Additionally, many credit companies will increase your card’s interest rate, meaning you will have to pay off higher balances in the future.
It is important for people not to purchase items that they cannot afford with credit cards. Just because an item is within your credit card limit, does not mean you can afford it. Make sure anything you buy with your card can be paid off by the end of the month.
If you are going to make purchases over the Internet you need to make all of them with the same credit card. You do not want to use all of your cards to make online purchases because that will increase the chances of you becoming a victim of credit card fraud.
Each month when you receive your statement, take the time to look over it. Check all the information for accuracy. A merchant may have accidentally charged a different amount or may have submitted a double payment. You may also find that someone accessed your card and went on a shopping spree. Immediately report any inaccuracies to the credit card company.
Know your credit history before applying for new cards. The new card’s credit limit and interest rate will depend on how bad or good your credit history is. Avoid any surprises by getting a report on your credit from each of the three credit agencies once a year. You can get it free once per year from AnnualCreditReport.com, a government-sponsored agency.
To avoid interest charges, don’t treat your credit card as you would an ATM card. Don’t get in the habit of charging every single item that you buy. Doing so, will only pile on charges to your bill, you may get an unpleasant surprise, when you receive that monthly credit card bill.
If you pay your credit card bill with a check each month, make sure you send that check out as soon as you get your bill so that you avoid any finance charges or late payment fees. This is good practice and will help you create a good payment history too.
Stay away from high interest credit cards. Many people see no harm in getting a credit card with a high interest rate, as they are sure that they will always pay the balance off in full each month. Unfortunately, there are bound to be some months when paying the full bill is not possible.
One way to stop yourself from using a credit card on a whim is to position them behind your bank cards in your purse or wallet. This helps because you will know which card you are using if you are in a hurry and/or not being very attentive.
Credit cards are a lot simpler than you thought, aren’t they? Now that you’ve learned the basics of getting a credit card, you’re ready to sign up for your first card. Have fun making responsible purchases and watching your credit score begin to soar! Remember that you can always reread this article if you need extra help figuring out which credit card to get. Now you can go and get your card.
