It’s easy to get confused when you look at all the credit card offers that are out there. However, if you educate yourself about credit cards, you won’t sign up for a card with a high interest rate or other problematic terms. Read this article to learn more about credit cards, so that you can figure out which card best suits your needs.
Don’t fall for the introductory rates on credit cards when opening a new one. Be sure to ask the creditor what the rate will go up to after, the introductory rate expires. Sometimes, the APR can go up to 20-30% on some cards, an interest rate you definitely don’t want to be paying once your introductory rate goes away.
Just like you wish to avoid late fees, be sure to avoid the fee for being over the limit too. Both are costly, but you will pay not only the fees tied to these mistakes, but your credit score will dip as well. Pay attention and make sure you stay under your credit limit.
If you have multiple cards that have a balance on them, you should avoid getting new cards. Even if you are paying everything back on time, there is no reason for you to take the chance of getting another card and making your financial situation any more strained than it already is.
If you are not satisfied with the high interest rate on your credit card, but aren’t interested in transferring the balance somewhere else, try negotiating with the issuing bank. You can sometimes get a lower interest rate if you tell the issuing bank that you are considering transferring your balances to a different credit card that offers low-interest transfers. They may lower your rate in order to keep your business!
It is important for people not to purchase items that they cannot afford with credit cards. Just because an item is within your credit card limit, does not mean you can afford it. Make sure anything you buy with your card can be paid off by the end of the month.
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.
Find a credit card that rewards you for your spending. Spend money on the card that you would need to spend anyway, such as gas, groceries and even, utility bills. Pay this card off each month as you would those bills, but you get to keep the rewards as a bonus.
Now that you have read this article, you hopefully, have a better understanding of how credit cards work. Next time you get a credit card offer in the mail, you should be able to figure out whether this credit card is for you. Refer back to this article if you need extra help in evaluating credit card offers.