Charge cards can cause a great deal of frustration. If you know what you are doing, credit cards can be hassle-free. Read this article to find great credit card suggestions.
Carefully study all of the small print. If there’s an offer for a pre-approved credit card or if a person says they can help you get a card, get all of the details beforehand. Know what the real interest rate is, if it goes up after the first year and how much time they allow for payment of it. Also, look into the amount of fees that can be assessed as well as any grace periods.
Always track your credit card purchases, so that you do go over budget. You can easily lose track of what you have put on the card if you do not commit to keeping track of the charges on a spreadsheet or notebook.
Many people wonder if it is better to have one credit card or many. For most people, it is best to have two or three credit cards open. Not only does this increase your credit ranking, but when you pay every month, you also increase your line of credit. However, if you do open more than 3 accounts, it will not be a positive for prospective lenders.
Exclusive Charge Cards
Make sure your card doesn’t have any annual fees, or you will pay too much. The exclusive charge cards, like the platinum or black cards, are known to charge it’s customers an annual fee from $100 to $1,000 a year. Unless you have some specific need for exclusive charge cards, remember this tip and save yourself some money.
Minimum payments are designed to maximize the credit card company’s profit off of your debt in the long run. Make payments beyond what your minimum payment is set at. You will save a lot of money on interest in the end.
Do not bother with retail credit cards unless you have a serious intent to shop at a given store on a regular basis. When retail stores put in an inquiry on your credit to qualify you for a card, it gets recorded on your credit report whether you open the card or not. A report that is peppered with too many credit inquiries like those made by retail stores can hurt your overall credit score.
As was mentioned earlier, people are often frustrated and upset by card companies. However, you may find it easier to get the right card if you take the proper precautions and learn as much as you can first about charge cards. Make sure you have all the information about the costs associated with using your credit card.