Choosing amongst all the credit card solicitations one receives can be a daunting task. Many credit cards offer such things as minimal interest rates, credit in spite of not-so-stellar credit rates, or rewards like frequent flyer miles. What should you do in this situation? The following information is just what you need to figure out which offers are worth pursuing and which should be shredded.
Only inquire in regards to opening retail cards if you seriously shop at that store regularly. 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. If you have too many credit inquiries, your credit score may take a hit.
In order to keep your spending under control, make a record of the purchases that you make with your credit card. It can be easy to run up a huge debt without realizing it, unless you keep tabs on how much you’re spending.
To help ensure you do not over pay for a premium credit card, double check whether the card has an annual fee attached to it. Annual fees for platinum or black cards could be in the range of $100 to $1,000 depending on the exclusivity of the card. If you do not need a premium card, don’t get one.
If you need to acquire a credit card, though you lack a lengthy credit history, think about getting someone to co-sign your application. Anyone with good credit can be a co-signer on your credit account. Be aware that they will be responsible for your balance if you fail to pay it. This can help you get a first credit card, and start building your own credit.
As mentioned earlier, consumers usually don’t have the necessary resources to make sound decisions when it comes to choosing a credit card. The best way to manage and use a credit card is with some common sense and a little education, as this leads to an improved life and financial situation.
