When it comes to both in-person and online purchases, credit cards can be of use. If you need some useful advice on using your credit cards responsibly, keep reading to find some great tips.
You should try to have at least two open cards or possibly three open credit accounts. Having two or three cards will help you to improve your credit rating. However, if you have over three, a lender may think that looks bad when pulling up your personal credit bureau report.
Always review the fine print on your credit card disclosures. If you receive an offer touting a pre-approved card, or a salesperson offers you help in getting the card, make sure you know all the details involved. Be aware of how much the interest rates are going to be, and how much time it will take you to pay for it. Also, look into the amount of fees that can be assessed as well as any grace periods.
Understand your interest rate. It is crucial that you know the rate of interest prior to getting a credit card. If you are unaware of the number, you might pay a great deal more than you anticipated. It’s always a good idea to pay off your credit card in full every month, but this may be impossible if you are paying more than you expected.
You want to try and avoid the fee for going over your limit just as much as late fees. Both of these are pretty large fees and going over your limit can put a blemish on your credit report. Watch carefully and don’t go more than your credit limit.
As soon as your credit card arrives in the mail, sign it. This will protect you should your credit card get stolen. Lots of merchants make the cashier verify that the signature matches in order to ensure your card is safe.
Now it is probably clear that credit card usage can help people as they work on building up their credit history and taking control of their money. But before one can properly grasp how to handle dealing with credit, the first step is learning a bit about finances in general, particularly credit cards. Knowing what to expect from having a credit card will help you make better choices.
