You will be faced with a barrage of credit card promotions and offers over the years and it is sometimes overwhelming to deal with them. Some offer low interest rates, others are easy to obtain, and others have great reward programs. How is the average person supposed to separate the wheat from the chaff? The tips presented below will teach you just about everything that you need to be aware of when considering a credit card.
Learn how closing the account associated with your credit card will affect you before you shut it down. Sometimes it is better to leave an unused credit account open than it is to close it. Also, be sure that you keep a few cards open that are responsible for most of your history, credit wise.
Always make sure there is not a yearly fee attached to any credit card that offers rewards or perks. Annual fees for platinum or black cards could be in the range of $100 to $1,000 depending on the exclusivity of the card. 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.
Consider getting a co-signer if you haven’t yet established credit. Co-signers can be friends, relatives or anyone with a solid credit history of their own. By signing, they agree to be responsible for your credit card payment if you default on it, so they have to be completely willing to do this. Doing this is an ideal way to obtain a first credit car, while also building credit.
Keep track of your credit score. Most companies consider a credit, or FICO, score of 700 to be the cutoff for good credit. Use your credit wisely to maintain that level, or if you are not there, to reach that level. When you have a score that is around 700, or even higher, then you can get good credit offers that have minimal rates.
There are a lot of financial pitfalls waiting out there for the unwary consumer; punitively high interest charged on credit card debt is certainly one of them! This article has given you information on how to proper utilize your credits cards and manage your daily spending.
