Don’t cut up your credit cards to stop yourself from overusing them. Instead, read this article to learn how to use credit cards properly. Not having any credit cards at all can hurt your credit score, so you can’t afford not to use credit. Continue reading, to learn how to use it appropriately.
Only apply for store cards with merchants you shop with 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. Too many inquiries into your credit history will be a red flag to possible lenders and will lower your overall credit score.
Always make sure there is not a yearly fee attached to any credit card that offers rewards or perks. Depending on how exclusive the card is, a platinum or black card may carry a fee of $100 to $1000. If you don’t really need an exclusive card, then you can save money and avoid annual fees if you switch to a regular credit card.
Card issuers designate minimum payments so that they stand a better chance of maximizing the profits they make on interest charges. Whenever you can afford to, send in payments that exceed the minimum amount. Don’t get stuck paying high interest.
Keep a close eye on your credit card balance. You should also remain aware of your credit limit. When you exceed the limit, many fees may be awaiting you. Try contacting your credit card company for an increased limit if you consistently go over your current limit.
Pay your minimum payment on time each month, to avoid more fees. If you can afford to, pay more than the minimum payment so that you can reduce the interest fees. Just be sure to pay the minimum amount before the due date.
Many credit cards offer loyalty programs. If you utilize a credit card on a regular basis, you should locate a beneficial loyalty program that suits your needs. The extra cash back or free flights and hotel rooms can be great bonuses and money-savers.
Be sure to get assistance, if you’re in over your head with your credit cards. Try contacting Consumer Credit Counseling Service. This nonprofit organization offers many low, or no cost services, to those who need a repayment plan in place to take care of their debt, and improve their overall credit.
If you are having a problem getting a credit card, consider a secured account. A secured credit card will require you to open a savings account before a card is issued. If you ever default on a payment, the money from that account will be used to pay off the card and any late fees. This is a good way to begin establishing credit, so that you have opportunities to get better cards in the future.
Now that you’ve read the article above, you should have a better understanding of why you should have two credit cards that you use regularly. There is no need to turn down every application for credit or destroy your cards so they are not available in an emergency. Just be sure to keep the information you just read in mind so that you can use your credit properly.