People need all the help they can get these days when it comes to managing finances. Credit cards can offer some great benefits, but they also have the ability to put you deep into debt. This article provides great advices for the ways to best use credit cards.
Do not use your credit card to make purchases or everyday items like milk, eggs, gas and chewing gum. Doing this can quickly become a habit and you can end up racking your debts up quite quickly. The best thing to do is to use your debit card and save the credit card for larger purchases.
When it comes to credit cards, always try to spend no more than you can pay off at the end of each billing cycle. By doing this, you can help to avoid high interest rates, late fees and other such financial pitfalls. This is also a great way to keep your credit score high.
Be sure to limit the number of credit cards you hold. Having too many credit cards with balances can do a lot of harm to your credit. Many people think they would only be given the amount of credit that is based on their earnings, but this is not true.
You should try to have at least two open cards or possibly three open credit accounts. You can improve your credit score by managing these cards responsibly, especially if you keep from carrying month-to-month balances on the cards. Do not over-do it. Having more than three credit cards can concern a lender looking at your credit report.
You want to try and avoid the fee for going over your limit just as much as late fees. Both are pretty steep, and the cost of going over the limit can not only affect your wallet but also your credit report. Track your spending carefully so that you don’t go over your limit.
Credit cards should always be kept below a specific amount. This total depends on the amount of income your family has, but most experts agree that you should not be using more than ten percent of your cards total at any time. This helps insure you don’t get in over your head.
Carefully monitor all communications from your credit card company, and open everything as soon as possible. Card issuers have the ability to adjust fees and interest rates, provided they let you know about it in writing. If you have an issue with these changes, you have every right to cancel your card.
If you have any credit cards that you have not used in the past six months, then it would probably be a good idea to close out those accounts. If a thief gets his hands on them, you may not notice for a while, because you are not likely to go looking at the balance to those credit cards.
As mentioned before, consumers often feel like they have no allies when it comes to credit card companies. Apply what you’ve just learned here, and be wiser about using your credit cards in the future.