Credit Card Advice For Rookies And Pros

If you're like many Americans, you've developed a bad habit of whipping out your credit card to pay for purchases and figuring out how to pay the bill later. This is not the right way to use credit. The good news is that with a little education, you can change the way you use your credit cards. Read on to find out what to do.



When you are unable to pay off one of your credit cards, then the best policy is to contact the credit card company. Letting it just go to collections is bad for your credit score. You will find that most companies will let you pay it off in smaller amounts, as long as you don't keep avoiding them.

Make sure you know what your interest rate will be with a given credit card. It's vital that you know what the interest rate is before signing up for a credit card. Choosing a card with a high interest rate will cost you dearly if you carry a balance. If you have to pay higher balances, you might find you cannot pay the card off every month.

Always adhere to a budget when it comes to using credit cards. Many people budget their income and cash, and credit spending should be included as well. Do not consider your available credit as extra income. Set a limit for yourself on how much you are able to spend for your credit card every month. Adhere to that budget, and pay your balance in full each month.

Be aware of your balance at all times. Know the credit limit of that card. If you inadvertently go over your credit limit, you will either be heavily penalized or your credit card will be blocked. It will take much longer for someone to pay their balance down if they exceed their limit consistently.

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.

Consider unsolicited credit card offers very carefully before you accept them. If an offer that comes to you looks good, read all the fine print to make sure you understand the time limit for any introductory offers on interest rates. Also, be aware of fees that are required for transferring a balance to the account.

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.

Never, ever, under any circumstance lend out your credit card to someone. Even if you're talking about a relative, you can never trust someone enough to deal with the potential consequences. You might have over the limit charges if more is charged by your friend than you authorized .

Each month when you receive your statement, take the time to look over it. Check all the information for accuracy. A merchant may have accidentally charged a different amount or may have submitted a double payment. You may also find that someone accessed your card and went on a shopping spree. Immediately report any inaccuracies to the credit card company.

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.

Now that you've read this article, you know there's a lot more to responsible credit card use, than just abstaining from using credit altogether. Reform your credit card habits, using the tips you have just read, so that your use of credit cards can help improve your credit scores, instead of interfering with you having good credit.

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