Some people fear getting credit cards because of the problems associated with them. Don’t be afraid of a credit card, just commit to using it wisely. Credit cards are especially useful for buying expensive items or buying items online. In the following article you will find some good credit card advice.
Don’t close an account without understanding the consequences. Sometimes, closing an account can cause your credit score to decrease. Also, keep open all the accounts that make up most of your history.
Sign credit cards as soon as you receive them. Many people don’t do that, their cards get stolen, and cashiers do not realize the theft. Many merchants require the cashier to verify the signature matches so that you can keep your card safer.
Don’t close accounts. This may seem like a smart thing to do when trying to raise a credit score, but it actually can damage the score. This is because the ratio of how much you currently owe is compared to how much total credit you have available.
There are many credit cards that offer rewards programs for your spending. If you use credit cards on a regular basis, it is wise to find one with a loyalty or rewards program that you find personally useful. A loyalty program can be an excellent way to make some extra income.
Only apply for one or two credit cards. Each time you apply for one, it will show up on your credit report and reflect negatively on your score. Offers that show up in your mailbox or email should be avoided completely, especially if they offer guaranteed approval. These often carry extremely high interest rates.
Be sure to pay your credit card bill in a timely manner each month. Even one late payment can cause pricey late fees, higher interest rates and even a “ding” to your credit score. Pay your bill online if possible to reduce the likelihood that your payment is lost or delayed in the mail.
Before accepting a balance transfer read the contract fully. Understand exactly what the terms mean. Oftentimes, such offers come in tandem with super-high interest rates that are retroactive if you haven’t paid off your balance. Read the fine print and understand the terms and conditions before you jump at a low-rate card.
When under 18 years, credit cards are difficult to obtain without parental help. You might gain access to a card through an adult’s joint account. Retail stores might cater to teenagers but major companies do not.
A secured credit card may be an option you want to look into if your credit score is in trouble. Cards like these need a collateral. Basically, you borrow your own money, paying interest to be able to do so. This is not a great situation to be in, but it can be a way to dig yourself out of a credit hole. Just make sure you are working with a reputable company. Later, you will be able to get an unsecured card.
The advice you have read here can help even the most credit-shy consumer conquer their fears. Credit cards are useful when used properly, so it is unnecessary to fear them. Just keep in mind the advice in this article and you are going to be just fine.