Use Your Credit Cards To Your Advantage

Many people think all credit cards are the same, but this is not true. Credit cards can have different limits, rewards, and even interest rates. Selecting the right credit card takes a lot of thought. Here are some tips that will help you select the right credit card.

Be wary of late payment charges. Many of the credit companies out there now charge high fees for making late payments. Most of them will also increase your interest rate to the highest legal interest rate. Before you choose a credit card company, be sure that you are fully aware of their policy regarding late payments.

Be safe when giving out your credit card information. If you like to order things online with it, then you have to be sure the website is secure. If you notice charges that you didnt make, call the customer service number for the credit card company. They can help deactivate your card and make it unusable, until they mail you a new one with a new account number.

Keep track of your purchases made by credit card to make sure that you do not spend more than you can afford. Unless you track your purchases, its easy to spend way too much.

There are often great bonuses for accepting a new card. Be sure that you fully understand the fine print, though, because many of these cards have very specific terms that you must meet to qualify for the bonus. One of the typical conditions placed on a credit card bonus is a requirement that you use the card to make a fixed amount of purchases within a given time frame. A bonus offer that you do not want to claim is not a very tempting one!

Take advantage of the fact that you can get a free credit report yearly from three separate agencies. Make sure to get all three of them, so that you can be sure there is nothing going on with your credit cards that you may have missed. There may be something reflected on one that was not on the others.

Whenever you can manage it, you should pay the full balance on your credit cards every month. You should only use credit cards for convenience and you should always pay the full amount when it is due. Using credit helps the credit score, and when you pay the balance completely you ensure that you avoid finance charges.

If you need to use credit cards, it is best to use one credit card with a larger balance, than 2, or 3 with lower balances. The more credit cards you own, the lower your credit score will be. Use one card, and pay the payments on time to keep your credit score healthy!

An important tip for saving money on gas is to never carry a balance on a gas credit card or when charging gas on another credit card. Plan to pay it off each month, otherwise, you will not only pay todays outrageous gas prices, but interest on the gas, as well.

Exercise

It is an excellent idea to open one credit card account that you do not use. Tuck this credit card away for emergency expenses. Exercise discipline in this matter. Your emergency credit card should only be used in real "last resort" situations. If you ever have to use it, pay it off as quickly as possible after the emergency has passed.

Now that you realize that all credit cards arent created equal, you can give some proper thought to the type of credit card you might want. Since cards differ in interest rates, rewards, and limits, it can be tough to choose one. Luckily, the tips youve received can help you make that choice.