Whether you have one or one hundred credit cards, it is important to manage them properly. A late or missed payment can lower your score. If you have difficulty remembering to pay each one, you may want to close or consolidate your debts. Find a credit card that has a promotional period without interest.
You can transfer your existing credit card debt into this account, so you can work on reducing your debt without getting interest charges. Make sure there are little-to-no fees for transferring your existing balance onto your new card.
One of the best credit tips is to pay off your balances each month. By paying off the balance, you can avoid interest charges and late-payment fees. Some other great credit card usage tips include:
Use your credit cards for what you need, not what you want. Little shopping purchases can lead to big debt in just a few months if you are not careful. If you have a rewards card and want to gain points, put your recurring expenses on your cards instead of frivolous or luxury items.
Your budget should accommodate these expenses, so you can pay off your balance each month.
Stay under 30 percent utilization on all your cards. Once you go over 30 percent, your credit score will start to lower.
Your interest charges will also be higher with a higher balance, which makes paying down the principal take longer.
Leave your cards at home. If shopping is too tempting, keep your cards where you will not use them. You will never get out of debt if you keep adding to it, even while you are chipping away.