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TIP! Retail credit card accounts should only be opened at stores that you will be shopping in quite frequently. Each time a retail store inquires about your credit report, it gets recorded, regardless of whether you actually take the card.

Credit cards can be useful when buying something, because you don’t have to pay for it instantly. Before you do get a card and begin spending with it, you have to know a little bit about charge cards so you don’t end up in too much debt. Read the following article for some great credit card tips.

TIP! Paying annual fees on a credit card can be a mistake; make sure to understand if your card requires these. Depending on how exclusive the card is, a platinum or black card may carry a fee of $100 to $1000.

Don’t use cards to buy something that you cannot afford. While it’s fine to use your card to purchase an item you can pay for later, it is not a good idea to purchase something you will have trouble paying down the line.

TIP! Know what interest rate your card has. You must understand the interest rate before agreeing to accept a credit card.

Do not close credit card accounts until you know the full effect it could have on your credit score. Sometimes closing a card can have a negative affect on your credit, so you should avoid doing so. Additionally, try keeping the card accounts open that comprise the main part of your payment and spending history.

TIP! Fees from going over the limit want to be avoided, just as late fees should be avoided. Both fees can be very pricey, both to your wallet and your credit report.

Many credit cards offer significant bonuses for signing up for a new card. Make sure that you’re fully aware of what’s in the fine print, as bonuses offered by credit card companies often have strict requirements. For instance, it could be listed in your contract that you can only receive a bonus if you spend X amount of money every period. If this is something you’re not comfortable with, you need to know before you enter a contract.

TIP! Create a spending budget for your credit cards. Most people use a budget for their income, so budgetting your credit card is a great idea too.

It is good to keep in mind that credit card companies are not your friends when you look at minimum monthly payments. They set minimum payments in order to maximize the amount of interest you pay them. This is why you should always pay some amount over the minimum due. Paying off your balance faster helps you avoid expensive finance charges over the life of your debt.

TIP! Always make timely credit card payments. Your credit card payments have a date that they are due by and ignoring them will cost you additional fees.

Make sure to schedule a spending budget when using your charge cards. You should already be budgeting your income, so just include your credit cards in your existing budget. A credit card’s available balance should not be considered extra money. Determine an amount that you are comfortable charging each month. Stick to that budget and pay it in full every month.

Credit Card

TIP! Don’t write your password or pin number down. Memorizing your password is the only way to ensure that nobody else is able to access it.

If you cannot afford something, don’t put it on a credit card. Just because you desire to have a new TV, it does not mean that buying using your credit card is a good option. You will pay loads of interest, and the monthly payments may be out of your reach. Exit the store and mull over your purchase for a couple of days before making your final decision. If you still decide to purchase it, the store’s financing usually gives low interest rates.

TIP! Don’t use your credit card for more than you can pay off. If you can’t make your payments, you risk damaging your credit score.

Don’t make a written record of your credit card’s PIN or password. You have to take the time to memorize these passwords and pin numbers to ensure that only you know what they are. If you write it down, other people will be able to access your credit.

TIP! Avoid exaggerated income statements when applying for a card, just to get a higher limit. If the company does not confirm your income, the results may be a limit that is way too high for your needs, causing you to spend too much money, and getting into huge debt.

Charge cards are a great tool if used the right way. Keeping yourself as debt free as possible and upholding a solid credit score is possible when you apply the tips from this article. When you accomplish this, your cards stay available to make purchases when you need to make them.