Credit cards represent the best and worst in life. On the one hand, pulling them out of your wallet and sliding them at the store register means you get your hands on what you wanted to buy. On the other hand, you get to curse and swear at the bill that shows up in your mailbox a few weeks later. Read on the find out how to maximize the good while minimizing the bad.
To ensure that you don’t over pay for your premium credit card, check whether your card has annual fees attached to it. Certain exclusive cards charge annual fees upwards of $1,000. 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.
Pay your minimum payment on time each month, to avoid more fees. If you can afford to, pay more than the minimum payment so that you can reduce the interest fees. Just be sure to pay the minimum amount before the due date.
Don’t automatically run out and get a bit of plastic as soon as you are of age. Instead, wait a few months and ask questions so that you completely understand the pros and cons to a credit card. You should have a good grasp on the responsibilities that will be required of you as an adult before establishing your first line of credit!
A key credit card tip that everyone should use is to stay within your credit limit. Credit card companies charge outrageous fees for going over your limit, and these fees can make it much harder to pay your monthly balance. Be responsible and make sure you know how much credit you have left.
To make sure you select an appropriate credit card based on your needs, determine what you would like to use your credit card rewards for. Many credit cards offer different rewards programs such as those that give discounts on travel, groceries, gas or electronics so pick a card that suits you best!
A great tip for saving on today’s high gas prices is to get a reward card from the grocery store where you do business. These days, many stores have gas stations, as well and offer discounted gas prices, if you sign up to use their customer reward cards. Sometimes, you can save up to twenty cents per gallon.
Never apply for more credit cards than you actually need. It’s true that you need a few credit cards to help build your credit, but there is a point at which the amount of credit cards you have is actually detrimental to your credit score. Be mindful to find that happy medium.
The credit cards in your life can swing both ways. While they can mean the instant gratification of that new item you wanted at the mall, they can also mean a headache in the mail a month later. This article has provided you with ideas on how to reap your rewards without sweating the downside much. Apply what you have learned to excel at both.