Your 5-Minute Credit Card Guide
Consumers from around the country have found it beneficial to live off of credit cards these days. The tides are beginning to turn though. As the economy continues to spiral into a downward disaster, credit card interest rates are getting higher and higher. Use this 5-minute credit card guide to protect you and your finances.
The most important rule to follow when using a credit card is to pay off your credit card balance every month. If you can’t do this, you need to put that credit card away. Most often, it isn’t worth it to pay interest on everyday balances. Over 40 percent of American households carry credit card balances each month.
If you plan on ever using a credit card, it is so important that you protect your good name and your credit score. It does take discipline to do this, but it is well worth it. Make your payments on time. If you pay your bill late, expect to pay $29 or more. Paying your bills on time will protect your name and your credit score. Each time you miss a payment, your credit score drops. Each time you make a late payment, your credit score drops. Keep your score up by making your payments on time.
Don’t have too many cards. Carefully limit the number of cards that you have and carry. A common misconception is that the more credit cards you have, the more it benefits your credit. The opposite is true in fact. Financial experts recommend having between two and six credit cards.
Read the fine print. Make sure you know all of the terms of your agreement before signing up for these cards. You wouldn’t want to apply for a credit card and find out months later that there is a $125 annual fee. It is in your best interest to read the fine print carefully and several times if you have to.
Don’t hesitate to negotiate. People who have a credit score above 700 can get a lower interest rate. These low-risk consumers can also get the late fee reduced. Negotiating is fair game in the credit card industry.
Try to not go over 30 percent of your credit limit. Doing this makes it more difficult to pay off your card each month, not to mention killing any attempts at money management. Keeping your limit open also increases your credit score.
Credit cards can really save your life, your name and your credit score. On the other hand, too many people let their credit cards damage their names and severely reduce their credit scores. Use this 5-minute guide to take control of your credit cards.
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