It’s important to use credit cards properly, so that you stay out of financial trouble, and boost your credit scores. If you don’t do these things, you’re risking a poor credit score, and the inability to rent an apartment, buy a house or get a new car. Read on for some tips about how to use credit cards.
Be wary of late payment charges. Many of the credit companies out there now charge high fees for making late payments. Most of them will also increase your interest rate to the highest legal interest rate. Before you choose a credit card company, be sure that you are fully aware of their policy regarding late payments.
When choosing the right credit card for your needs, you need to make sure that you pay attention to the interest rates offered. If you see an introductory rate, pay close attention to how long that rate is good for. Interest rates are one of the most important things when getting a new credit card.
Don’t fall for the introductory rates on credit cards when opening a new one. Be sure to ask the creditor what the rate will go up to after, the introductory rate expires. Sometimes, the APR can go up to 20-30% on some cards, an interest rate you definitely don’t want to be paying once your introductory rate goes away.
Carefully consider those cards that offer you a zero percent interest rate. It may seem very alluring at first, but you may find later that you will have to pay sky high rates down the road. Learn how long that rate is going to last and what the go-to rate will be when it expires.
Be smart with credit card use. Try not to spend too much and only make purchases you’re able to pay back. Before any purchase, make sure you have the money to pay back what you’re going to owe; this is a good mindset to have. If you can avoid carrying a balance over from month to month, you will remain in charge of your financial health.
One way to cut down on monthly payments is to ask for a lower interest rate from the companies that have extended credit to you. You should be able to negotiate a more beneficial interest rate if you have a reasonably long history of timely payments to your credit card company. Picking up the phone may be all you need to improve your interest rates.
Keep track of what you are purchasing with your card, much like you would keep a checkbook register of the checks that you write. It is far too easy to spend spend spend, and not realize just how much you have racked up over a short period of time.
Credit card use is important. It isn’t hard to learn the basics of using credit cards properly, and reading this article goes a long way towards doing that. Congratulations, on having taken the first step towards getting your credit card use under control. Now you just need to start practicing the advice you just read.