Having a credit card can sometimes make you feel powerful, but you don’t want to feel your power draining from you when you get the bill! Read on to learn how to use your credit card correctly, so that you don’t end up in financial trouble after using the card.

When you are unable to pay off one of your credit cards, then the best policy is to contact the credit card company. Letting it just go to collections is bad for your credit score. You will find that most companies will let you pay it off in smaller amounts, as long as you don’t keep avoiding them.

You should try to have at least two open cards or possibly three open credit accounts. This will help you build one’s credit score, particularly if you pay your bill in full. However, opening too many is a mistake and it can hurt your credit score.

When you are getting your first credit card, or any card for that matter, make sure you pay close attention to the payment schedule, interest rate, and all terms and conditions. Many people neglect to read this information, but it is definitely to your benefit if you take the time to read through it.

Shop around for a card. Interest rates and terms can vary widely. There are also various types of cards. There are secured cards, cards that double as telephone calling cards, cards that let you either charge and pay later or they take out that charge from your account, and cards used only for charging catalog merchandise. Carefully look at the offers and know what you need.

If you are having trouble with overspending on your credit card, there are several ways to save it only for emergencies. One of the best ways to do this is to leave the card with a trusted friend. They will only give you the card, if you can convince them you really need it.

A credit card should not be used for purchases you cannot afford. Just because you desire to have a new TV, it does not mean that buying using your credit card is a good option. If you cannot pay the charges off at the end of the month, you will pay a lot of interest and may run the risk of not being able to afford the monthly payments. Go home and take a day or two to think it over before making your choice. If you are dead set on buying the item, ask the store if they can beat your credit card’s interest rate.

Always know what your utilization ratio is on your credit cards. This is the amount of debt that is on the card versus your credit limit. For instance, if the limit on your card is $500 and you have a balance of $250, you are using 50% of your limit. It is recommended to keep your utilization ratio of around 30%, in order to keep your credit rating good.

Understand that the credit card interest rate you currently have is always subject to change. Just like any other business, credit card companies are in competition with each other and have many interest rates available to them. Call your bank if you don’t like your current interest rate. Ask the bank to change your rate.

Paying off your credit card in full can help you keep that power going that you got, when you handed the card over at the register. After reading this article, you should know some things to do if you want to use your credit card responsibly. Credit cards are a wonderful thing when used correctly.