Bank cards can be extremely useful because they enable individuals to buy items instantly and then pay for them at a later date. If you want to take advantage of this utility without making financial mistakes, piling up debt, and hurting your credit score, you need to educate yourself on wise credit card usage. Carefully look through this article for advice about bank cards.

It’s a smart practice to have 2 or 3 open bank cards in good standing. If you can pay your bill in full each month, this number of cards will help you to improve your credit score. However, if there are more than three cards to your name, a lender may think that’s no good when looking at your personal credit bureau report.

Before closing any credit card, understand the impact it will have on your credit score. There’s times when you close a card that can have negative affects on your next credit report. Also, be sure that you keep a few cards open that are responsible for most of your history, credit wise.

Fraudulent Charges

Report any fraudulent charges on your credit cards right away. This gives the credit card companies the most opportunity to catch the person responsible. It also ensures you are not responsible for any charges made on the lost or stolen card. Fraudulent charges could be reported through a phone call or through email to your card provider.

Odds are you’re well aware that late fees can be killer, but keep in mind that fees for going over your limit can also be quite harsh. These can both amount to significant sums, and can also do damage to your credit score. Track your spending carefully so that you don’t go over your limit.

If you want a card but don’t have credit, you might need a co-signer. A co-signer could be a trusted friend, sibling or parent and anyone that already has established credit. Your co-signer must sign a statement that makes them responsible for the balance if you default on the debt. This method is a smart way to help build your credit with a first credit card.

Credit Card

Credit card use is a lifesaver sometimes, but only when used wisely. After reading this article, you should have enough information to utilize your credit card responsibly to buy things, maintain a favorable credit score and remain debt-free.