Credit Cards

How You Could Maximize Your Credit Cards

Credit card use can be a tricky thing, given high interest rates, hidden charges and changes in laws. As a consumer, you need to be educated and aware of the best practices when it comes to using your credit cards. Read on for some valuable tips on how to use your cards wisely.

Before closing any credit card, understand the impact it will have on your credit score. There’s times when you close a card that can have negative affects on your next credit report. Also, maintain cards that have most of your credit history.

Practice sound financial management by only charging purchases that you know you will be able to pay off. Credit cards can be a quick and dangerous way to rack up large amounts of debt that you may not be able to pay off. Don’t use them to live off of, if you are unable to come up with the funds to do so.

To help you get the maximum value from your credit card, choose a card which provides rewards based on the amount of money you spend. Many credit card rewards programs will give you up to two percent of your spending back as rewards which can make your purchases much more economical.

If you have credit cards be sure to check your monthly statements thoroughly for errors. Everyone makes errors, and this applies to credit card companies as well. To prevent from paying for something you did not purchase you should save your receipts through the month and then compare them to your statement.

Double check for annual fees when signing up for premium credit cards. If you are the owner of a platinum card, or a black card, the annual fees can be up to $1000. If it is not necessary for you to have an exclusive card, avoid fees by not getting one.

Card issuers designate minimum payments so that they stand a better chance of maximizing the profits they make on interest charges. Pay more than the minimum payment. This will help you avoid pricey interest fees in the long term.

There are many cards that offer rewards just for getting a credit card with them. While this should not solely make your decision for you, do pay attention to these types of offers. I’m sure you would much rather have a card that gives you cash back than a card that doesn’t if all other terms are close to being the same.

Don’t use passwords and pin codes on your credit cards that can easily be figured out. It’s a bad idea to use a common password like a middle name or phone number since people could guess these.

Hopefully, this article has provided you with some helpful guidance in the use of your credit cards. Getting into trouble with them is much easier than getting out of trouble, and the damage to your good credit standing can be devastating. Keep the wise advice of this article in mind, the next time you are asked if you are paying in cash or credit.