Practical Tips To Manage Your Credit Cards Wisely

Don’t go overboard and apply for a ton of different credit cards. When you have a lot of credit cards, it can over complicate your finances, and will making dealing with them take much longer than it would otherwise. Also, if you have greater access to credit, you may be tempted to rack up too much debt.

It is very important when you get a credit card to keep the account open as long as you can. Once you open a card, keep it open and use it regularly; don’t constantly switch credit cards. Your credit score is affected by the overall duration of your account history. Another element to establishing credit is to maintain and keep you credit accounts open and active at all times. A great way to solve your credit card payments is to actually pay it down with an additional credit card. Just make sure that the other card has better rates. This also applies if the cards have similar interest rates, but one offers better rewards or perks attached to it. Remember to take the time to evaluate the pluses and minuses before doing a balance transfer.

Never give your credit card number or information to any company you are not familiar with. A company may appear to be legitimate, but you never know what may happen behind closed doors. If you do not feel comfortable with a certain company, only use cash when making purchases from them.

Don’t ever let anyone borrow your credit card. It’s a bad idea to lend them out to anyone, even friends in need. It may lead to large fees if your friend spends more than you authorized. Commit to gradually reducing any debt you’ve been carrying. By doing this, you will improve your financial health, as well as your credit score. Budget an amount that is more than the minimum required payment, and pay that new amount each month. Do not be scared to ask your creditor to raise your credit limit. Most companies will increase the limit if their record with them is a positive one. A bigger credit limit allows you to spend more as well as be more flexible financially. If you have multiple credit cards that you use regularly, you should try and prioritize their use according to their APR. Try to use the card with the lowest interest before the ones with higher interest. You should always try to have the lowest possible debt carried from one month to the next. If you have to keep a balance, prioritizing the order in which your cards get used can lower the total amount of interest that you pay.

Make sure that your children are financially responsibly before you give them a credit card. It can be hard to say no to a child, but it’s better to deny them something that could cause them financial disaster if they are not ready.

It is a mistaken action to not have credit cards at all to avoid having any debt. It is important, though, to have at least a single card in order to build a credit history. Use the card to make a few purchases, and pay it in full each month. If you have no credit at all, lenders are not able to ascertain if you are good at debt management or not. Keep the amount of credit card applications to a minimum. Every time you fill out an application for a credit card it has a negative impact on your credit score. Be cautious of pre-approved credit offers. You will often find higher rates with these companies. Many times, the reasoning behind the minimum payments that credit card companies set is due to the fact that they want you to pay more over time than you would if you paid more toward your debt. This naturally means that you should pay more than simply the least allowable amount. Don’t incur expensive interest costs over time.

Be careful when using credit cards. Only use your card to purchase items that you can actually pay for. Before you buy something with your card, be certain you can pay for it in full when you get your statement. When you have a balance on the card, it is too easy for the debt to grow and this makes it more difficult to clear completely.


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    Ivan S. Martin

    He that is master of himself, will soon be master of others.