Review the specific terms of the offer. Always get the full details before signing up for a pre-approved card. Find out what your interest rate is and the amount of you time you get to pay it. Also, find out about any fees and grace periods.
There are often great bonuses for accepting a new card. It is important to really understand the specific details buried in the fine print for actually getting the bonus. Some companies, for example, specify that you must charge a minimum amount on your card within a specific time period. Make sure you will truly be able to qualify for such bonuses.
Pay your monthly statements on time. Know what the due date is and open your statements as soon as you get them. Any and all late payments will negatively impact your credit ranking, and could lead to expensive fees. It can be very helpful to set up some kind of automatic payment schedule through your bank or credit card company.
It is good to keep in mind that credit card companies are not your friends when you look at minimum monthly payments. They set minimum payments in order to maximize the amount of interest you pay them. Always pay above the minimum. Minimize the amount of interest you end up paying.
Consider getting a co-signer if you wish to open a credit card without established credit. This can be anyone who trusts you, like a relative or close friend. Of course, they are putting themselves on the line, by becoming responsible for your credit. That can be a terrific method of acquiring a first card for credit building purposes.
Always pay your credit card on time. Neglecting your credit card’s due date can result in late charges for you. Additionally, most companies will increase the interest rate on your credit card, which means an increase in the cost of every purchase you put on that card thereafter.
Before getting a credit card, make certain that you completely understand the policies you are agreeing to. You might see that their payment schedule, fees, and interest rate are higher than what you thought. Read through the entire terms of agreement pamphlet to make sure you are clear on all the policies.
Avoid paying off your credit card balance immediately after you use the card. Instead of paying right away, only pay when your statement comes in. Then you can pay the full balance to be done with it for another month. This will reflect better on your payment history and give you a better credit score.
It is very important when you get a credit card to keep the account open as long as you can. Don’t switch to another credit card account unless you really have to. The length of time you have had accounts open is an important factor in calculating your credit score. Part of having good credit is keeping the accounts open.
You can really damage your credit score if you use a credit card to make purchases for more than what you can pay for with cash. If this happens, it could make it hard for you to rent an apartment, get insured, finance a car or even get a job.
If you have several charge cards, try to pay at least one in full every month. Your other cards may have high debt, but paying off one select card in full each month helps to build stronger credit.
Do not carry any cards with you that you do not use daily. Even if you have multiple cards, it is wise to have only the ones you use most often. You should have access to a charge card you use daily and a card that is used for gas. Keep those only in your wallet or purse, and hide the rest in a secure location at your house.
Read the fine print if you’re thinking about a credit card with an introductory rate or a balance transfer. It is important that you know what charges you will be up for once the honeymoon period is over. In general, after the introductory period has ended, these credit card providers will start to charge you extortionate interest rates and administration fees. Always do your homework, so you know where you will be going with these cards.