Know thy Credit Rules

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Know thy Credit Rules

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Think before you charge it, as there are financial repercussions for every mistake you make with your credit card. Here are some things that you just shouldn`t do when it you sign up for a new card.

Don`t forget to ask.If you call up the credit card issuer they can actually help you or offer you lower APR rates, if you are knowledgeable about the market. The good news is that gaining knowledge about the market is easy. The research material is delivered to your mailbox. Gather up some of those annoying credit card flyers that offer lower interest rates, and explain to your credit card issuer that this other company has an attractive offer. Then explain that you would like to cancel your card, but wanted to see if they had any similar offers. Most credit card issuer representatives are prepared to offer you better interest rates if you have been a loyal customer with a good credit standing.

Don`t give away your signing rights. Don`t add to many people as authorized users on your card. You will be liable for those expenses if the primary spender can’t afford to cover those bills. Be careful of whom you sign for and whom you join accounts with. If they are not a responsible spender and an on-time bill payer, don`t do it.

Don`t put more credit on your card than you have money in the bank.This can lead to surefire debt, and credit card debt is one of the most expensive debts out there. With multiplying interest rates and penalty fees, if you miss a payment it can keep you behind for years to come. In order to avoid this keep in mind your cash assets and how they stack up to your spending limit on your new credit limit. If you keep these numbers pretty much about the same, payments should be easy, and credit card debt shouldn`t get out of control.

Don`t sign up for every offer.Every credit card offer is not meant for you to sign up for. This can be expensive and detrimental to your credit score. While some offer cool little knick-knacks such as free t-shirts, Frisbees, blankets, etc., they will more than likely end up charging you high interest rates after the introductory rate fades or the shine of the new toy fades.

Don`t forget to watch your statement.Your credit card statement has vital information about your payment history, and is the first place to look when you suspect you are a victim of identity theft, unauthorized or reoccurring purchases.

Having a credit card requires some discipline and attention to detail. Once you get your new credit card pay attention to these key details in order to keep yourself out of debt, and to protect your credit score.

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