When you come to the end of your rope, tie a knot and hang on. ~Franklin D. Roosevelt
Be smart with how you use your credit. Many people are in debt, due to taking on more credit than they can manage or else, they haven’t used their credit responsibly. Do not apply for any more cards unless you need to and do not charge any more than you can afford. Credit card companies calculate their minimum payments so that you can pay a small amount and let them earn a large amount of interest from you over time. Never pay just the minimum payment. This helps you pay much less interest in the long run. Make sure to verify all charges and fees that are associated with a credit card that you are considering, instead of just focusing on the interest rates and the annual percentage rate. There are, sometimes, charges like application fees, service charges and cash advance fees, that may make your card not worth having. Don’t open a credit card account if you don’t have enough self-discipline to use the card responsibly. Some consumers cannot help but spend more than they are able to. These are the type of people who should think twice about having a credit card. When they choose to open an account, they are opening themselves up to a devastating financial future. To verify you are not paying for premium features you don’t need on your credit card, see if the card company charges an annual fee for it. The annual fee for a platinum or black card could cost from $100, all the way up to $1,000, depending on how exclusive the card is. If you don’t really need an exclusive card, then you can save money and avoid annual fees if you switch to a regular credit card.
Keep an eye on your credit score to see if you’re managing your credit well. Taking this step also enables you to make sure that others are managing your accounts well. Be sure to report errors when you see them. If you find one, contact the credit bureau and your card company to dispute it. Never sign up for a credit card without learning its interest rate. This is especially true before signing up for a new card, so read the fine print or ask the right questions to determine the interest rate you would be paying with the card. You may end up paying a lot more than you planned on if you are unaware of what you are being charged. A higher interest rate will make it more difficult to pay off your debt. If you are not an experienced credit card user, do not apply for a card with rewards. These cards motivate you to use your card constantly, which can quickly lead to problems. It is far better to begin your credit card journey with a card which has a small credit limit, rather than a rewards card.
Never give anyone credit card numbers on the Internet or on the phone unless you know and trust the company. When receiving unsolicited requests for credit card numbers, be very cautious. A number of scams are circulating whose sole purpose is to procure your credit card information. Protect yourself by being diligent. In order to maintain a high credit card, ensure you are paying off your card payment on the day that it’s due. If you don’t do this, you could incur costly fees and harm your credit score. It can be very helpful to set up some kind of automatic payment schedule through your bank or credit card company. When you are able to obtain a credit card you can put your picture on, then do it. While there might be fees involved in having the card personalized, the fees might be worth it for someone who is very concerned about someone else being able to use their card. Individuals under 18 can rarely obtain a credit card by themselves. An adult might be able to add you on to their account, though. Major card companies won’t cater to teenagers, but retail stores might.
If your credit card company offers airline rewards, be certain that you know haw they work. Read all the documentation thoroughly. There could easily be restrictions, such as blackout dates, that will render such rewards completely useless to you. It’s not uncommon for a company to make these things confusing on purpose. After all, credit card providers do not want their customers to actually claim any rewards. They just offer them to convince you to apply.