Universities are expensive … without a doubt! As with most things that are extremely expensive that we can not afford, we use our credit cards to buy them. If you have used a credit card to help alleviate your college debt, you may be in a difficult situation. No matter how much debt you have and how much you want to stop the bleeding … DO NOT cut up your credit cards to avoid excessive use of them. A better alternative is to learn how to use your credit cards correctly. Not having any credit cards can affect your credit score, so you can’t afford not to use the credit. So I have found 5 tips that you can use to manage your credit cards … however many cards you have.
- Before choosing a credit card company, be sure to compare interest rates. There is no standard when it comes to interest rates, even when it is based on your credit. Each company uses a different formula to calculate what interest rate to charge. Be sure to compare rates to ensure you get the best possible offer.
- Decide what rewards you would like to receive for using your credit card. There are many rewards options offered by credit card companies to encourage you to apply for your card. Some offer miles that can be used to buy plane tickets. Others give you an annual check. Others give you points that you can use in department stores. Choose a card that offers a reward that is right for you. In my case, I travel a lot, so I can constantly get into First Class using my miles of the uses of my credit cards.
- To make sure you’re not paying too much for a premium card, make sure the credit card does not require you to pay an annual fee. Some cards may have charges that reach $ 1000 per year! Avoid paying these fees by refraining from registering to obtain exclusive credit cards if you don’t really need them.
- Credit cards are often essential for young people or couples. Even if you do not feel comfortable having a large amount of credit, it is important to have a credit account and perform some activity. Opening and using a credit account helps you build your credit score.
When using your credit card at an ATM, be sure to pass it and return it to a safe place as quickly as possible. There are many people who will look over their shoulder to try to see the information on the card and use it for fraudulent purposes.
- Instead of simply requesting blind cards, waiting for approval and letting the credit card companies decide their terms for you, know what it is. An effective way to do this is to obtain a free copy of your credit report. This will help you get a general idea of the cards for which you could receive the approval and appearance of your terms.
An important point to remember is this: more damage will be done if you cut up your credit cards. For some strange reason, companies will penalize you if you do NOT have a card. I don’t get it, but there it is. So my advice is that you really should keep one or two cards and use them quite frequently. Don’t rush to discard those applications or freeze your cards in blocks of ice. Just use your credit responsibly and in a conscientious manner.