While there is a need for cash, credit card use is quickly increasing. As banks raise fees for regular accounts and debit cards, many people are using only credit cards for storing money and making transactions. Continue reading and you will learn a lot about this growing financial industry.
Be sure to limit the number of credit cards you hold. Having too many credit cards with balances can do a lot of harm to your credit. Many people think they would only be given the amount of credit that is based on their earnings, but this is not true.
Do not close credit card accounts until you know the full effect it could have on your credit score. Often, closing out a credit card accounts will adversely effect your credit rating. Also, try to keep the cards open that make up the majority of your credit history.
Check your credit report regularly. By law, you are allowed to check your credit score once a year from the three major credit agencies. This may be often enough, if you use credit sparingly and always pay on time. You may want to spend the extra money, and check more often if you carry a lot of credit card debt.
The reason a credit card company will ask you to make a minimum payment is because they want you to pay this amount over time to make the most money off of you. Never pay just the minimum payment. This will help you avoid pricey interest fees in the long term.
A great way to keep your revolving credit card payments manageable is to shop around for the most advantageous rates. By seeking low interest offers for new cards or negotiating lower rates with your existing card providers, you have the ability to realize substantial savings, each and every year.
Consider getting a co-signer if you haven’t yet established credit. Co-signers can be friends, relatives or anyone with a solid credit history of their own. They have to understand that they will sign a document stating that if you fail to pay your credit card, they will be responsible for the balance. This is a great way to get your first credit card and begin to build your credit.
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.
Instead of just blindly applying for cards, hoping for approval, and letting credit card companies decide your terms for you, know what you are in for. One way to effectively do this is, to get a free copy of your credit report. This will help you know a ballpark idea of what cards you might be approved for, and what your terms might look like.
Many people are turning to credit cards because of all of the fees associated with debit. Given the expansion and growth in this area, you could also benefit from the perks that credit cards can give. Just use everything about credit cards that you’ve learned here.