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.
When you are getting your first credit card, or any card for that matter, make sure you pay close attention to the payment schedule, interest rate, and all terms and conditions. Many people neglect to read this information, but it is definitely to your benefit if you take the time to read through it.
Consider getting a co-signer if you wish to open a credit card without established credit. A parent, friend, sibling or other trusted person with previously established credit can be a co-signer. Of course, they are putting themselves on the line, by becoming responsible for your credit. This method is a smart way to help build your credit with a first credit card.
Be careful when using credit cards. Try not to spend too much and only make purchases you’re able to pay back. Before committing to a purchase on your card, ask yourself if you can pay the charges off when you get your statement, or will you be paying for a long time to come? It is very easy to create too much debt that cannot be paid off at the end of the month.
Make sure that you sign your card as soon as it arrives in the mail. It is easy to forget to do, but if your card is stolen, there is no signature for cashiers to compare. Lots of venders will require a signature verification when purchasing from them.
When shopping for a new card, look for one that offers points, has a low interest rate and comes with no annual fee. There are many credit cards available with no annual fee, so choose one of these to save you money.
As a general rule, you should avoid applying for any credit cards that come with any type of free offer. More often than not, anything that you get free with credit card applications will always come with some sort of catch or hidden costs that you are sure to regret later on down the road.
It may seem unnecessary to many people, but be sure to save receipts for the purchases that you make on your credit card. Take the time each month to be sure that the receipts match up to your credit card statement. It will help you manage your charges, as well as, help you catch unjust charges.
Always know who you are dealing with and make sure they are legitimate companies when you give out your credit card information online. Call phone numbers given on the website to ensure they’re working, and do not purchase from a seller that doesn’t have an actual address listed.
An important tip for saving money on gas is to never carry a balance on a gas credit card or when charging gas on another credit card. Plan to pay it off each month, otherwise, you will not only pay today’s outrageous gas prices, but interest on the gas, as well.
A secured credit card may be an option you want to look into if your credit score is in trouble. Secured credit cards require you to deposit money in advance to cover the charges you will make. Essentially, you’re borrowing your money and you pay interest on it. Not the best idea, but it can help you better your credit. Just remember that you still need to ensure the company you’re dealing with is honest. Later, you will be able to get an unsecured card.
It is a good idea to avoid walking around with any credit cards on you that already have a balance. If the card balance is zero or very close to it, then that is a better idea. Walking around with a card with a large balance will only tempt you to use it and make things worse.
After reading this article, you should be able to see why it’s important to have one or two credit cards and use them regularly. So forget about ripping those applications apart or hiding them in some unknown spot, never to be found again. Keep the information presented here in mind and you will be responsible with credit.