Having a credit card is useful for those people that want to buy things and pay for them later. Prior to applying for a new credit card and starting to use it, you must be aware of some information that may keep you from incurring too much debt. Read on for great credit card tips.
To keep your credit score high, make sure to pay your credit card payment by the date it is due. A payment that you make too late, will lower your credit score, while costing you a lot of money. If you set your accounts on an auto pay schedule, you will save time, and possibly money, when you pay your bill.
Be aware of any interest rates you are being charged. This is very important: prior to singing up with a credit card company, be sure you know what rate you’re paying. When you lack this knowledge you find yourself paying much more in interest than you anticipated. If the rate is higher, you may find that you can’t pay the card off every month.
Ensure you are always paying your credit card bill on time. Credit card balances must be paid by a certain date. If this does not occur, hefty fees may be imposed. Card companies will give you a higher interest rate as well, increasing the cost of purchases made in the future.
Make sure that you sign your card as soon as it arrives in the mail. It is easy to forget to do, but if your card is stolen, there is no signature for cashiers to compare. A lot of merchants require cashiers to verify the signatures to make sure they match.
Before you get something online with a credit card, be sure that you can trust the seller. Call the contact numbers on the website to ensure they are working, and avoid venders that do not list a physical address.
Check your credit score regularly. 700 is generally the minimum score necessary to be considered a solid credit risk. Use your credit properly to maintain this level, or if you’re not there, use this method to reach this level. When you have a 700 or higher credit score, you will get the best card offers with rates that are the lowest.
Read the fine print to determine what conditions may affect your interest rate as they can change. Since credit card companies compete with one another, they all have the option of changing your interest rate to another one of their standard rates to keep you satisfied. If you are unhappy with your current interest rate, call the bank or company and ask for a lower one.
Try not to close your accounts. It may seem like the obvious thing to do to help your credit score, but closing accounts can actually be detrimental to your credit score. This is because the ratio of how much you currently owe is compared to how much total credit you have available.
Credit cards are a great tool if used the right way. The basic tips provided in this article should have given you enough information, so that you can use your credit card to purchase items, while still maintaining a good credit score and staying free of debt.…