Credit cards are detrimental at best, for most people, and have been this way since their inception. It can be hard to handle your credit cards without the right knowledge. Read the advice in this article to learn more about the use of credit cards.
You may want to consider keeping a couple of credit card accounts open at any given time. This helps build up your credit, particularly if you pay your cards in full monthly. You should have no more than three open credit cards. If you have more than three credit cards, it may be more difficult to qualify for a loan.
Make sure your card doesn't have any annual fees, or you will pay too much. The annual fees for platinum and black cards range from one hundred to one thousand dollars, according to how exclusive the card is. If you do not require a card like this, choose a card with lower or no fees.
Do not forget to factor in your credit cards when creating a budget. It is important to budget your income, and it is equally important to budget your credit card spending habits. Never view credit cards as extra money. Set a limit for yourself on how much you are able to spend for your credit card every month. Adhere to that budget, and pay your balance in full each month.
When you make online purchases with your credit card, always print out a copy of the sales receipt. Keep receipts until you can verify the store that sold you the item charged you the same amount that you are charged on your credit card. If the amount is not correct, contact the vender and dispute the charge immediately. This is a great way to make sure you are never overcharged for the items you buy.
Never leave a blank space when signing credit card receipts. If you do not want to leave a tip make sure to write a zero or draw a line to indicate no tip is included and nobody can add an amount in. Also, check that your purchase amounts match the amounts on your statement.
Many times, the reasoning behind the minimum payments that credit card companies set is due to the fact that they want you to pay more over time than you would if you paid more toward your debt. Always pay as much as possible in excess of the minimum payment. You will save a lot of money on interest in the end.
Avoid prepaid cards when you are looking for a secured card. Prepaid cards are not actually credit cards, they are debit cards, and their use isn't reported to credit bureaus. A lot of them will charge extra fees and are basically no more than a checking account. Apply for a true secured card that reports to the three major bureaus. This will require a deposit, though.
You want to stay away from both late fees and over the limit ones. Both are high fees and going over your limit will also damage your credit score. Don't pass your credit limit or you will suffer.
Credit cards are becoming increasingly popular with the newer regulations and fees attached to many debit cards. Given the growth and expansion of this area, you too can benefit from the advantages that credit cards have to offer. Apply what you have learned in this article to make the most of this.