How Many Credit Cards Should You Have?

Would you like to know a little more about how to use credit, but are scared to ask? This article is prepared to teach anyone a little more about proper credit usage and inform all consumers about common credit issues that they may face. Continue reading to learn more good credit card information.

Use a credit card that offers rewards. Not every credit card company offers rewards, so you need to choose wisely. Reward points can be earned on every purchase, or for making purchases in certain categories. There are many different rewards including air miles, cash back or merchandise. Be wary though because some of these cards charge a fee.

Stay away from pre-approved offers from credit card companies. Remember, it is not the credit card companies responsibility to find the best card for you, it is their job to sign up as many people as possible. Using whatever marketing techniques they can. The pre-approved offers sound tempting, but they tend to include extremely high interest rates.

If you can, wait six months before applying for a highly desired card. This will give you time to get your affairs in order, and improve your chances of being accepted. Use this time to improve your score. Pay your bills on time, and reduce outstanding debt. If you are turned down because you did not qualify, this will be disappointing.

Shop around for different credit cards. Interest rates and other terms tend to vary greatly. There are also various types of cards, such as cards that are secured which require a deposit to cover charges that are made. Make sure you know what kind of card you are signing up for, and what you’re being offered.

If you travel internationally a lot and you will be using your credit card frequently, go with a company that does not charge a foreign transaction fee. These fees can end up costing you tons of money, even up to as much as 3% more than what you would normally pay.

Read the fine print on any credit card you receive. There can be many hidden fees, rules, and penalties in tiny print that is often ignored by credit card users. Knowing what they are, can give you the power you need to manage your credit card the best that you can.

Anytime you apply for a credit card, you should always familiarize yourself with the terms of service that comes along with it. This will allow you to know what you can and cannot use your card for, as well as, any fees that you might possibly incur in different situations.

Watch rewards programs. These programs are quite popular with credit cards. You can earn things like cash back, airline miles, or other incentives just for using your credit card. A reward is a nice addition if you’re already planning on using the card, but it may tempt you into charging more than you usually would just to get those bigger rewards.

We hope this “Credit Card” article has been helpful to you. You should also feel better about making purchases or paying bills with your card.