When you use it well, a credit card can help you reduce stress and rack up perks. Other people who don’t use credit cards wisely deal with unexpected, large bills. To alleviate the chances of getting in over your head, read the tips contained in this article.
Only if you regularly shop at a certain store should you think about applying for a store credit card. When a store runs a credit check to see if you qualify for a card, it shows up on your credit report, even if you ultimately decide not to open an account. An excessive amount of inquiries from retail stores on your credit report can actually lower your credit score.
Anyone seeking a new charge card ought to restrict their hunt to those cards offering low interest and no annual membership fees. Given the sheer number of cards on the market that do not have annual fees, acquiring cards that do require such fees is unnecessary.
Keep track of your credit score. Many credit card companies look at a score of 700 to be good. Use your credit wisely to maintain that level, or if you are not there, to reach that level. When you have a 700 score or higher, you get some of the best offers available.
While it may be tempting for credit card users to make payments immediately after using their card, it isn’t always the best option. Instead, pay the balance as soon as you receive the statement. This improves your credit score and better reflects your ability to manage your credit when prospective lenders access your report.
Ask your credit card provider if they are willing to reduce the interest rates associated to your credit card. If you have been a good customer for a while, many credit card providers will be more than happy to lower the interest rate that they are charging you. It never hurts to ask, and you could possibly save a bundle!
Secured cards are an excellent way for credit companies to weigh your credit worthiness. This type of account will usually lead to an unsecured credit account if you are diligent with your payments. You will also start to receive offers in the mail. You will now need to re-assess your circumstances before deciding what to do next.
You should close all credit card accounts that you don’t use. Having cards lying around, even if you’re not using them, can lead to identity theft. It’s not worth the risk. You might also be forced to pay annual fees on something that you do not use.
Do not get a credit card with an annual fee if you have any other options. Credit cards that don’t have annual fees are usually reserved for individuals that have good credit scores. Annual fees can make perks of a card worthless. Take the time to do the calculations. Any fees for a card are more than likely typed in fine print. Make sure you are aware of all the costs associated with using your credit cards. You’re going to want to check closely to look at if the fees are worth the benefits. Normally, they don’t.
Even cards which don’t offer rewards can still help you. Those who do not mindfully use their cards wisely with some of the sound strategies presented here might have momentary gratification, but also long term stress from bills. Use what you have learned from the tips above to help you to become a happy credit card owner.