Keep track of your credit score. Most companies consider a credit, or FICO, score of 700 to be the cutoff for good credit. Be smart with the way you are using your credit. Keeping your score at 700 or better gives you the chance to take advantage of offers for the lowest interest rates. Make your credit card payments on time and in full, each and every month. Most credit card companies will charge an expensive late fee if you are even a day late. If you pay your bill 30 days late or more, creditors report this late payment to the credit bureaus. If you have poor credit, you may want to apply for a credit card that is secured. These cards require some kind of balance to be used as collateral. Think of it as borrowing against your own savings account, and paying an interest for that right. Although this arrangement is less than ideal, it can help you repair your credit. If you want a secured credit card, stick with large, well-established credit card companies. Eventually, the company may offer you a normal, unsecured credit card. That will do even more to improve your score. When getting a premium card you should verify whether or not there are annual fees attached to it, since they can be pretty pricey. Some exclusive credit cards require you to pay between $100 and $1,000 per year to keep the card, depending on exactly how exclusive the card is. 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. You can negotiate if you think a card’s interest rate is too high. See if they will lower your rate considering your good history. In most cases they will agree in order to keep you as a customer.
Watch your balance carefully. You should also be sure that you are aware of the limit that your creditor has given you. If you go over that limit, you are going to pay more fees than you realize. It will take longer for you to pay the balance down, if you keep going over your limit. Before applying for a credit card ensure you understand the terms and conditions. You could discover the interest rate, fees, and payment schedule are a lot more than you anticipated them to be. Read each word in the fine print so that you completely understand their policy. Call your credit card company as soon as you notice your card has been lost or stolen. This can prevent anyone from using your card since it will not be valid The credit card company will then issue you with a new credit card. Make sure to sign your cards as soon as your receive them. At some stores, cashiers will verify your signature on the card against the signature you sign to the receipt as an added security measure.
Make sure that you are honest about your income when applying for a bank credit card. The limit given to you by your credit card company may be too high if they don’t verify your income – this can lead to overspending. Everyone should have one credit card simply to build good credit and learn basic money-management skills. Staying educated on each card is vitally important for consumers who choose to use credit cards for these purposes. Read on for a list of informative tips on credit cards that can help people make better decisions when using their plastic. Don’t lie about your income when applying for credit cards. If a company doesn’t verify that the information regarding your income is true, you may get that higher limit – and you may rack up charges that you truly cannot afford to repay.