Need Some Tips About Credit Cards? Keep Reading
Consumers today can use a lot of help when it comes to keeping their financial situation in good order, this is certainly true when it comes to managing credit cards. Although credit cards are quite useful, they could also cause you debt. The following article will help you with some great tips on how to wisely use credit cards.
Don’t close an account without understanding the consequences. You should avoid closing an account if it gives you a negative mark. In addition, keep the oldest credit card accounts open because a major factor in your overall credit score is the length of time since credit was established.
Make sure your card doesn’t have any annual fees, or you will pay too much. Certain exclusive cards charge annual fees upwards of $1,000. If you do not require a card like this, choose a card with lower or no fees.
You should only open up retail credit cards if you plan on actually shopping at this store on a regular basis. Even applying for a card with the store will reflect badly on your credit score if you’re not accepted, and there’s no sense in applying if you’re not a regular shopper. Racking up a list of inquiries from several different retail stores can cause your credit score to drop.
It is common for credit cards to be linked to loyalty or affinity programs. Choose a credit card whose loyalty program offers you something valuable. This can actually provide a lot of benefits, if you use it wisely.
Any time you receive emails or physical mail regarding your credit card, open them immediately. Creditors are always allowed to change certain things about your fee schedule if they let you know about it in writing. If you are not in agreement, you have the freedom to cancel your card.
As you have seen, it can be all too easy to cause problems for yourself by using credit cards improperly. Too many credit cards, too many shopping sprees and soon, you will be in big financial trouble. This article should prepare you for avoiding these types of situations.
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