Whenever you’re choosing or comparing credit cards from different companies, you probably look for various rewards and offers that make you feel they’re the right cards for you. Maybe you’re a new credit card holder such as a college student or new company employee and you’re looking for something that works well with your situation. Maybe you’re looking for certain features on a credit card such as fraud prevention or protection mechanisms, or various programs included with your credit card company such as traveler’s insurance or rental discounts. But whichever credit cards Minneapolis MN you’re accepted for, you can only truly go right when you have your spending habits in order.
What You Can Do to Keep Your Spending Under Control
Often when you hear about credit card spending and bad habits, you think of someone using a high limit on it to buy a brand-new car, go on a luxury cruise or buy something else outrageous that they can’t really afford. In some cases that is true, but sometimes it’s simply putting too many small purchases on the credit card and not realizing the bill just went up a lot. Now you might think the way to make sure you keep your spending down is to have the credit card company lower your credit limit and keep it low, but as Nerdwallet explains, that’s likely to hurt your credit score and raise your interest rates. What they recommend is either keeping your spending during your billing cycle at a maximum of 30℅ of your limit or have a defined weekly amount that you will spend no more than. When you get your bill, pay it in full so your interest isn’t adding up.
What You Can Do When Your Credit Is Damaged
Sometimes if you’ve had to learn the hard way from bad credit card spending habits, you need to get restarted using credit cards but this time on the right track. There are ways to do that even if you had a default plus closure of a previous credit card, or even if you’ve had a settlement or judgment filed against you. What you may need to do is start off with a secured credit card, which is one that requires a cash deposit to open and usually has minimal requirements as far as credit score and history are concerned. You keep a low credit limit at first and take baby steps to build it back up. You also may be able to get a cosigner for a new credit card but be very careful about how you work out the bill payment with that person.
In conclusion, instead of having credit cards just to buy things you probably don’t need anyway, you should look at them as tools to improve your credit and better your chances of taking out future loans. You also always should get a copy of your credit report and always make sure everything you see is accurate because it stays on your history permanently. Get started in good usage habits today so that when you upgrade to high level platinum credit cards tomorrow, you’ll be keeping them debt free while enjoying your life.