Using Credit Cards Responsibly For Financial Freedom

Many people have used credit cards ever since they can remember. Like most things, credit cards are difficult to deal with if you don't have the proper knowledge or advice. The following advice will teach you what you need to know to use credit cards properly.

Never use a credit card for purchases that are beyond your means. Though you may want to use a card to make a purchase that you are certain you can repay down the road, it is not smart to buy something that you clearly cannot easily afford.

Retail credit card accounts should only be opened at stores that you will be shopping in quite frequently. When a retail store inserts an inquiry onto your credit in order to qualify you for a card, this is recorded onto your credit report regardless of whether you actually open up the card. Racking up a list of inquiries from several different retail stores can cause your credit score to drop.

Read the small print. If you receive a pre-approved offer, look over the conditions and terms. Knowing the details is important. Know what the real interest rate is, if it goes up after the first year and how much time they allow for payment of it. Also, make sure to research any associate grace periods and/or fees.

It may not be a wise idea to apply for a credit card when you first meet the age requirement. Though it is a common occurrence, it is best to spend time learning about the inner workings of the credit industry before you wade in. Spend a few months just being an adult before applying for your very first credit card.

If you cannot afford something, don't put it on a credit card. Wanting a new TV or game console is not a good reason to put it on a credit card. You will be paying much more than the initial cost due to interest. Just leave this store, think about it for a couple of days, and then make a decision. If you are still going to purchase, then the store probably offers a financing plan that gives you a lower interest rate.

Be certain you are buying from a legitimate vendor before you use a credit card to buy anything on the internet. Make sure to call the listed phone numbers to ensure that the company is who they say they are. Also look for a physical address listed.

If someone calls requesting your card number, don't give it to them. Scammers commonly use this ploy. You should give your number only if you call a trusted company first to pay for something. Don't just give these numbers out when someone asks on the phone. Regardless of who they say they are, you cannot be sure.

Restaurant and grocery bills shouldn't always be paid with a credit card. These will take a while to appear on the statement you get and that makes you balance hard to know. This can lead to you spending more money since you will have the perception that your balance is actually lower than it is.

Do not just concentrate on the APR and the interest rates of the card; check on any and all fees and charges that are involved. Other fees like service charges and cash advance fees can quickly add up.

Never lie about how much money you make just so you can apply for a card with an extremely high limit. A lot of companies won't take a look at your income and they'll hand out cards with bigger limits. This might end up making you charge too much, so it will be impossible to pay it back.

Only keep cards on you if you use them regularly. Look over your cards and choose only those you use frequently. You should have access to a charge card you use daily and a card that is used for gas. Keep only these with you; leave the others at home.

Many people who try to deal with their credit cards on their own run into significant complications, frustrations, and problems. But, proper information can make it more simple to deal with credit cards. You can manage your credit cards wisely if you make use of the suggestions this article has provided.