Credit cards may make or break you, when it comes to your personal credit. Not only can you use them to help build up a great credit score and secure your future finances. You may also find that irresponsible use can bury you in debt and ruin you. Use this article for great credit card advice.
It is a good idea to have two to three credit card accounts open. Having two or three cards will help you to improve your credit rating. Having tons and tons of credit cards, however, will not look very good to lenders.
Only open retail store cards if you shop there on a regular basis. Every time you try to open a card, this action is recorded. Repeated applications for credit could negatively affect your overall credit score.
Check whether there is an annual fee attached to your credit card, to make sure you aren’t overpaying for a premium card. Annual fees for high end cards can be very high depending on how exclusive they are. If you do not need a premium card, don’t get one.
Carefully look over your balance and statement. Be sure that you’re aware of what kind of limits are on your credit card account. Going over your credit limit will raise your fees and your overall debt. Exceeding the limit also means taking more time to pay off your balance, increasing the total interest you pay.
Always use credit cards in a smart way. Limit your spending and only purchase things with your card that you can afford. Only use your credit cards for purchases that you know you can pay in full the following month. If you carry a balance, your debt will grow and the total balance will be harder to pay off.
Always make timely credit card payments. Every credit account has a due date, which triggers a late fee if you have not yet made your payment. Furthermore, it is common for card issuers to increase interest rates, which means that every expenditure will be more expensive going forward.
If you have several credit cards with balances on each, consider transferring all of your balances to one, lower-interest credit card. Almost everyone gets mail from various banks offering low or even zero balance credit cards if you transfer your current balances. These lower interest rates usually last for 6 months or a year. You can save a lot of interest and have one lower payment each month!
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.
As mentioned earlier in this article, credit cards can make or break you and it is up to you to make sure that you are doing all that you can to be responsible with your credit. This article provided you with some great credit card advice and hopefully, it will help you make the best decisions now and in the future.