If you want to get your first credit card, but you aren’t sure which one to get, don’t panic. Credit cards aren’t nearly as complicated to understand as you might think. The tips in this article can help you to figure out what you need to know, in order to sign up for a credit card.
Be wary of late payment charges. Many of the credit companies out there now charge high fees for making late payments. Most of them will also increase your interest rate to the highest legal interest rate. Before you choose a credit card company, be sure that you are fully aware of their policy regarding late payments.
Always pay your credit card on time. Credit card balances all have a due date and if you ignore it, you run the risk of being charged some hefty fees. Also, you run the risk of having your interest rate increased.
Consider the different loyalty programs offered by different companies. Look for a useful loyalty program if you use credit cards regularly. Over time, the perks add up and will give you some great additional income or discounts.
If you want a brand new credit card, try limiting the search to those with lower interest rates and that do not have annual fees. There are many credit cards available with no annual fee, so choose one of these to save you money.
Be aware that there are credit card scams out there as well. Many of those predatory companies prey on people that have less than stellar credit. Some fraudulent companies for example will offer credit cards for a fee. When you send in the money, they send you applications to fill out instead of a new credit card.
Keep track of what you are purchasing with your card, much like you would keep a checkbook register of the checks that you write. It is far too easy to spend spend spend, and not realize just how much you have racked up over a short period of time.
Many companies advertise that you can transfer balances over to them and carry a lower interest rate. This sounds appealing, but you need to carefully consider your options. Think about it. If a company consolidates a higher amount of money onto one card and then the interest rate spikes, you are going to have a hard time making that payment. Know all the terms and conditions, and be careful.
You may want to consider using layaway, instead of credit cards during the holiday season. Credit cards traditionally, will cause you to incur a higher expense than layaway fees. This way, you will only spend what you can actually afford during the holidays. Making interest payments over a year on your holiday shopping will end up costing you far more than you may realize.
When looking for a new card, it is very important to comparison shop and try to find a card that is offering great deals to new customers. Using a card that offers points or airline miles is great because you will be able to get a bit of an incentive, every time you use your card.
Shop different credit cards before applying to find out the perks each offers. Some offer roadside assistance, while others offer airline perks, like free baggage check. Some will also offer buyer protections, above and beyond what a store offers. Depending on your buying habits, one credit card may offer perks that fit you best.
Make sure that you are honest about your income when applying for a bank credit card. There are some creditors that won’t verify how much income you make and raise your limit regardless, which can put you in serious financial trouble if you charge beyond your means.
Negotiate interest rates with your credit card company. Your credit card provider may be open to negotiation if you want to secure a lower rate. You can request an APR that is a bit lower if you are a good consumer.
After having used your secured credit card responsibly over a period of time, you may be able to switch to one that is unsecured. You will also see new offers begin to appear in the mail. You will now need to re-assess your circumstances before deciding what to do next.
Any credit cards that you have that you do not use, should be closed. Open accounts may be a target for identity theft. You could be charged fees annually by having a credit card that you’re not using.
If you feel that the interest rate that you are paying on your card is too high, you can call your credit card company and ask them to lower it. Many people do not know this and the credit card companies are not going to openly tell people that they may receive lower rates by request.
Don’t use rewards cards exclusively and forget about your debit card. You will almost certainly spend enough to earn the points. However, you may get interest and fees equal to several flights.
Credit cards are a lot simpler than you thought, aren’t they? Now that you’ve learned the basics of getting a credit card, you’re ready to sign up for your first card. Have fun making responsible purchases and watching your credit score begin to soar! Remember that you can always reread this article if you need extra help figuring out which credit card to get. Now you can go and get your card.