Everyone should have one credit card simply to build good credit and learn basic money-management skills. You should understand the advantages and pitfalls of having access to easy credit. The following article offers some basic ideas on credit card use that any consumer can apply to their circumstances to use plastic more wisely.

Don’t consider opening a store credit card unless you plan to make purchases at the store on a regular basis. Every time you try to open a card, this action is recorded. A lot of inquiries from stores can lower your credit rating.

Read the fine print. If you receive a pre-approved card offer, make sure you understand the full picture. It’s important to know what your interest rate is and will be in the future. Be sure to also find out about grace periods and fees.

Monitor your credit card spending closely to avoid overspending. It’s easy to lose track of your spending, so keep a detailed spreadsheet to track it.

When it comes to premium charge cards, find out if an annual fee is involved to make sure that you do not pay too much for the card. The fees for premium credit cards can range from a small amount to a very large amount depending on how many cards the company issues. If you don’t really need an exclusive card, then you can save money and avoid annual fees if you switch to a regular credit card.

Always know the rate of interest on all your bank cards. It is essential that you find out before you ever sign up for the card. If you take a card with a high interest rate, you could pay two or three times the cost of your original purchase over time. Paying more may keep you from having the ability to pay the debt off every month.

Consider getting a co-signer if you haven’t yet established credit. A co-signer might be a friend, parent or sibling who has credit already. Your co-signer must sign a statement that makes them responsible for the balance if you default on the debt. This works great for getting a first credit card that you can use for building credit.

Following the tips above, an individual can benefit while trying to build credit and manage their finances. You need to understand each card’s terms and benefits in order to make informed choices for yourself. Knowing what to expect from having a credit card will help you make better choices.