Having a credit card is useful for those people that want to buy things and pay for them later. Before applying for new charge cards and making any purchases you should research as much as you can so that you do not end up in debt. Read on for great credit card tips.
Open Credit
Try to keep at least three open credit card accounts. That will assist you in building up your credit score; this is especially true if you can pay the cards off each month. You should have no more than three open credit cards. If you have more than three charge cards, it may be more difficult to qualify for a loan.
To retain a favorable credit score, be sure to make your payment for your credit card by the due date. A late payment can do a number on your credit score, and can also require you to pay pricey fees. Establishing automatic payments through your bank can be a great way to streamline the process and generate savings.
To ensure that you don’t over pay for your premium credit card, check whether your card has annual fees attached to it. Certain exclusive cards charge annual fees upwards of $1,000. The best bet is that if you do not need a premium credit card, avoid them and do not pay the fees.
Don’t automatically run out and get a bit of plastic as soon as you are of age. Though this is commonly done, it is important to educate yourself thoroughly on charge cards before jumping in. Get used to your responsibilities as an adult prior to dealing with a credit card.
When you are applying for a credit card, only consider those with a low interest rate and no annual fee. Given the sheer number of cards on the market that do not have annual fees, acquiring cards that do require such fees is unnecessary.
Interest Rate
Do not hesitate to ask your creditors if they can give you a lower interest rate. If you have a strong credit rating and have always made payments on time, an improved interest rate might be yours for the asking. A quick call might be all that is necessary to lower your rate and facilitate real savings.
Do not allow anyone to use your cards. Even if a close friend needs to use one, don’t do it. Doing so can result in over the limit fees if your friend charges more than you allowed them to.
If used correctly by the right people, bank cards are helpful. By following some basic credit rules presented in the article, you should be able to use charge cards for purchases and maintain excellent credit without going into debt.