Many people are fearful about owning a credit card because they are aware of some of the devastating consequences of large debts. Credit cards should not instill fear. They can be very helpful when a person needs to make a large purchase, or prefers not to carry or use cash. This article presents some tips to follow to ensure you use your credit wisely.
In terms of a retail store’s credit options, you should never get a card with them unless you’re a loyal, regular customer. When stores submit an inquiry into your credit history for a card, this gets reported on your credit report whether or not you ultimately get the card. A lot of inquiries from stores can lower your credit rating.
Be sure to check your credit card’s terms to see if it charges an annual fee to use the card. You want to make sure that you don’t pay a premium for the credit card. Platinum and black cars charge very high fees normally, that can range from one hundred dollars all the way up to one thousand dollars. More exclusive cards have higher fees. If you do not require a card like this, choose a card with lower or no fees.
If you do not have credit and want a credit card, consider getting a co-signer. A friend that you trust, a parent, sibling or anyone else with established credit can be a co-signer. It’s important to know that being a co-signer means that person is liable for the credit card bill in full if you don’t pay it. This can help you get a first credit card, and start building your own credit.
Know what interest rate your card has. You simply must understand the interest charges your card will bring before you agree to accept it. If you don’t, you might end up paying so much more money in interest. If you are paying a high interest rate, you might not ever be able to pay the bill completely every month.
Even cards that do not offer rewards, perks and points applicable to vacations can still be a benefit to your life. People that don’t use their cards in the right way will think that things are okay for a moment, but later on when the bills pile up they will get stressed out trying to pay them off. Just remember to implement the tips you have read above to get in the situation that best suits your needs.
