Tips For Being A Wise Credit Card Owner
There are many things that you have to have a credit card to do. Making hotel reservations, booking flights or reserving a rental car, are just a few things that you will need a credit card to do. You must carefully consider the use of a credit card and how much you are using it. Following are a few suggestions to help you.
Try your best to stay within 30 percent of the credit limit that is set on your card. Part of your credit score is made up of assessing the amount of debt that you have. By staying far under your limit, you will help your rating and make sure it does not start to dip.
Emergency, business or travel purposes, is all that a credit card should really be used for. You want to keep credit open for the times when you need it most, not when purchasing luxury items. You never know when an emergency will crop up, so it is best that you are prepared.
Do not be hesitant to inquire about getting a lower interest rate. Based on your history with your credit card company and your personal financial history, they may agree to a more favorable interest rate. You may be able to save money on your interest rates just by picking up the phone and calling your creditors.
Do not write your password or your pin number down. Memorizing your PIN or password is essential, and it helps to ensure that only you can access your account. If you write it down, other people will be able to access your credit.
Keep yourself updated on the status of your credit score. Most creditors think of 700 as the lowest number you can have while still being considered to have good credit. Use your credit properly to maintain this level, or if you’re not there, use this method to reach this level. At a score of 700 or higher, you’ll receive the best credit offers with the lowest rates.
Financial experts agree that you should not let your debt on a credit card go above a level equal to 75% of your salary each month. If you have limits that go higher than what you make a month, you should try paying these cards off as soon as possible. This becomes critical because the interest charges will continue to push your balances higher and higher.
If you cannot pay your entire credit card bill each month, you should definitely keep your available credit limit above 50% after each billing cycle. Having a good credit to debt ratio is an important part of your credit score. Make sure that your credit card is not constantly near its limit.
If your credit score is not low, try to find a credit card that does not charge many origination fees, especially a costly annual fee. There are plenty of credit cards out there that do not charge an annual fee. Find one that you can get started with, in a credit relationship that you feel comfortable with the fee.
When deciding which credit card is best for you, be sure to take its reward program into consideration. For example, some companies may offer travel assistance or roadside protection, which could come in handy at some point. Inquire about the details of the reward program prior to committing to a card.
Knowing these suggestions is just a starting point to learning how to properly manage credit cards and the benefits of having one. You are sure to benefit from taking the time to learn the tips that were given in this article. Read, learn and save on hidden costs and fees.