Credit Card Tips That Can Help You Out


Credit cards have the power to cause financial ruin, but they don’t have to. However, if used properly, they could offer great benefits, rewards and even peace of mind. This article will provide you with information about making sound financial decisions with your bank cards.

TIP! You should only open up retail credit cards if you plan on actually shopping at this store on a regular basis. Even applying for a card with the store will reflect badly on your credit score if you’re not accepted, and there’s no sense in applying if you’re not a regular shopper.

Try to keep at least two, but not more than three, credit lines open simultaneously. This helps build up your credit, particularly if you pay your cards in full monthly. But, if you have more than three cards, lenders may not view that favorably.

A retail card should only be opened if you really use that store often. If a retail store puts out an inquiry to the credit bureaus to check about your qualification status for their card, it will impact your score. Excessive inquiries from those retailers on your report can drop your credit score.

TIP! To help ensure you do not over pay for a premium credit card, double check whether the card has an annual fee attached to it. The fees for premium credit cards can range from a small amount to a very large amount depending on how many cards the company issues.

Talk to the credit card company if you are having financial problems. When you fear you must pay late, talking things out with your company ahead of time often results in an offer of help from them. Doing so could help you avoid being reported to major reporting agencies for the late payment.

Carefully look over your balance and statement. Also be aware of what your credit card spending limit is and adhere to it. Going over this limit will result in greater fees incurred. It is going to take a longer time to pay off the balance when you’re always going over the limit.

Credit History

If you need to acquire a credit card, though you lack a lengthy credit history, think about getting someone to co-sign your application. Co-signers can be friends, relatives or anyone with a solid credit history of their own. They have to be willing to state they will pay what you owe if you are unable to pay it. Doing so is a good way to start building credit.

TIP! Anyone who is in the market for new credit cards is wise to look for cards with no annual fee and low interest rates. There are a lot of credit cards that have no annual fee, so you should avoid the ones that do.

Those people looking to acquire a new card should look for no annual fee, lower interest rates and lots of perks. There are many credit cards available with no annual fee, so choose one of these to save you money.

When it comes to your credit card, do not use a pin or password that is simple for others to figure out. When you use something such as when you were born or what your middle name is then people can easily get that information.

TIP! It is always worth your time to ask for a lower interest rate. You can negotiate better interest rates if you have a good relationship with your credit card company.

Never leave a blank space when signing credit card receipts. Draw a pen line through the “tip” area, so that an employee cannot write something in the space and give themselves a tip. Make sure your statement matches the purchases you have made.

To cut your interest payments, do not hesitate to phone your credit companies and ask for better interest rates. If you are a long-time customer, and have a good payment history, you might succeed in negotiating a more advantageous rate. Making one simple phone call can result in a better rate and help you save money.

TIP! It is a mistaken action to not have credit cards at all to avoid having any debt. You need to carry at least one credit card, so that you can build credit.

Do not write your password or your pin number down. Memorizing your PIN or password is essential, and it helps to ensure that only you can access your account. Writing your pin number down increases the chance that someone else uses it.

Credit Score

TIP! Contact your creditor about lowering your interest rates. Many companies will do this if you have had a very long relationship with them that has been positive.

Check your credit score annually. Most bank cards consider a good credit score to be anything above 700. Be wise with your credit to maintain that score or to attain it, if your score is lower. At a score of 700 or higher, you’ll receive the best credit offers with the lowest rates.

While secured cards can prove beneficial for boosting your credit, don’t use any prepaid cards. Prepaid cards are not actually credit cards, they are debit cards, and their use isn’t reported to credit bureaus. Many prepaid cards charge extra fees and they are really just a checking account. Make a deposit to get a secured credit card which reports to credit bureaus and can improve your credit rating.

TIP! Keep a credit card account open for as long as you can, this is very important to remember. Avoid closing out one account to open another, unless it is essential.

Charge cards can be a very convenient payment option if used properly. From the peace of mind of having some flexibility and emergency space, to the possibility of racking up perks and rewards, the credit cards now or soon to be in your wallet can actually make your life a brighter one. You can have these benefits by using what this article has taught you.