We've all been warned of the dangers of credit cards, and how they can work against you. However, they can also work in your best interest if you follow these five simple rules.
1. Pay off the balance each month. This will keep you from having to pay interest on your purchases and keep your spending from snowballing out of control.
2. Make your payments on time. If you don't, you can accrue late fees and trigger an interest rate increase.
3. Limit the number of cards you have. You really don't need more than a few. Applying for lots of cards causes inquiries on your credit report and can hurt you credit score.
4. Read the fine print of your contract so that you know what your credit limit is, your interest rate & when your payment is due. You need to know what you're getting into.
5. Don't exceed 50% of your credit limit. Keep it no more than 30% if possible. Credit Bureaus are interested in how much of your credit is available at any given time and that can affect your credit score as well.
If you're sick of credit cards and want to swear them off, that's understandable. If you're tired of receiving those pre-approved offers in the mail, you can opt out by calling 1-888-5 OPT-OUT or visiting this website .
United Credit Source can help educate you on your rights as a consumer and how to help improve your financial outlook and stability. There's hope, no matter what your situation.
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