Credit cards give people the ability to make purchases without making instant payment. Before you start to take advantage of this benefit, it is advised that you learn a few basics about the credit card industry. Read on for great credit card tips.
It is a good idea to have a couple of open credit cards. You will improve your credit score. Paying off all of your cards monthly helps even more. If you have more than 3 credit cards however, that might not look right to a lender who looks as your credit report.
Ensure you understand how closing an account will affect your credit score. There are things that can happen that negatively affect your credit score when you close a credit card account. For the oldest cards that make up a big chunk of your credit score, it is worth trying to keep them open.
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.
If you have multiple cards that have a balance on them, you should avoid getting new cards. Even if you are paying everything back on time, there is no reason for you to take the chance of getting another card and making your financial situation any more strained than it already is.
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.
If you want to get your hands on a great credit card, watch your credit score. Your credit score is directly proportional to the level of credit you will be offered by card companies. The best cards are offered to people with great scores.
Be sure to get assistance, if you’re in over your head with your credit cards. Try contacting Consumer Credit Counseling Service. This nonprofit organization offers many low, or no cost services, to those who need a repayment plan in place to take care of their debt, and improve their overall credit.
If you are having a problem getting a credit card, consider a secured account. A secured credit card will require you to open a savings account before a card is issued. If you ever default on a payment, the money from that account will be used to pay off the card and any late fees. This is a good way to begin establishing credit, so that you have opportunities to get better cards in the future.
Do not lend out credit cards under any circumstance. It could be a very good friend that is in need of one thing or another, but it is not a very good idea to lend it out. That can lead to charges for over-limit spending, should your friend charge more than you’ve authorized.
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.
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.
If you get into trouble, and cannot pay your credit card bill on time, the last thing you want to do is to just ignore it. Call your credit card company immediately, and explain the issue to them. They may be able to help put you on a repayment plan, delay your due date, or work with you in ways that won’t be as damaging to your credit.
One subtle trick you can use to avoid making unintentional credit card charges is to place your debit cards in front of your credit cards in your wallet. By doing this you will make yourself more likely to select the debit card first, especially if you are in a hurry or generally just not paying attention.
Having a credit card can be of great help if it is used properly. Those ideas that have been provided in this reading should be able to help you to use your card in a safe and efficient manner while remaining debt free and with a great credit score.
