Credit cards offer a convenient way to make purchases and build your credit history. However it can also be easy to make expensive mistakes when using them. Here are some suggestions to manage your credit cards.
- Read the fine print: Before you apply for a card read the terms and conditions. In particular the card comes with a low introductory rate know when the rate ends and what the higher rate will be.
- Know your limits: Avoid extra fees by not going over your credit limit. Don’t request that overages be automatically added over your credit limit.
- Pay off balances on time: Try to pay the entire balance on time, every month. You’ll avoid interest charges and save money! If you can’t try to pay as much as possible and at the least pay the minimum required. Keep in mind late payments can have a negative effect on your credit score.
- Keep it simple: Don’t get any more credit cards than you really need. Low introductory rates, special promotions, discounts on goods or services may look good in the short term but prove expensive in the long run.
- Credit Checks: Remember that each time you apply for a card it appears on your credit report. Multiple applications or inquiries within a short time can have a negative impact on your credit score.
- Stay Alert: Ensure you sign up for automated alerts from your credit card company. Many lenders offer calls, emails or text reminders to notify consumers of payments, balances or if there is suspicious activity or possible fraud. There may be fees associated with these alerts so inquire about those as well.
We hope this article helps you avoid problems with your credit cards and thanks for visiting.