Credit Card Do’s And Don’ts – Good Tips To Save You Pain And Money

Many people have used credit cards ever since they can remember. It is easy to run into trouble if you try to manage credit cards on your own without educating yourself or getting good advice. If you want to learn more about how to use credit appropriately, read this article.

Ensure you understand how closing an account will affect your credit score. Sometimes it is better to leave an unused credit account open than it is to close it. Also, keep open all the accounts that make up most of your history.

Make timely payments on your credit card accounts to maintain a high credit score. Your credit score can suffer if your payments are late, and hefty fees are frequently imposed. It can be very helpful to set up some kind of automatic payment schedule through your bank or credit card company.

Be sure to check your credit card’s terms to see if it charges an annual fee to use the card. You want to make sure that you don’t pay a premium for the credit card. Depending on how exclusive the card is, a platinum or black card may carry a fee of $100 to $1000. 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.

Odds are you’re well aware that late fees can be killer, but keep in mind that fees for going over your limit can also be quite harsh. Both of these are pretty large fees and going over your limit can put a blemish on your credit report. Keep an eye on your finances, and don’t go over your limits.

Avoid closing accounts. You might think doing so would help, but your credit score may be damaged by closing accounts. This is so because it subtracts how much credit you can have from your overall credit. Then it lowers how much you owe and how much credit you are able to maintain.

As this article said before, a credit card can be hard to use as well as frustrating for some that have to deal with them. However, the right advice can help you to get a grip on the way you use your cards. You can better handle your credit cards with this article’s advice.