Your Quick Guide For Credit Cards

tnmccask · #1 (**permalink**) 11-17-2009, 05:42 PM

Credit cards are not all bad if they are used responsibly. It is only when they are misused that people incur mounds of debt, high interest rates, late fees, etc. If you learn to use them wisely, you can maximize their benefits such as cash back, bonus points, airline miles and better credit scores. To protect your credit scores and your finances, there are certain guidelines that you should follow.

#1: Experts recommend that you have between two to six cards.

(Applying for a lot of credit cards can hurt your score. Also, closing several at once will lower your score as well.)

#2: Always read the fine print to know what your interst rate will be, your credit limit, the grace period and how your payment is applied.

#3: Stay within 30% of your credit limit. Credit bureaus look at how much of your available credit you use. Using your card excessively will negatively impact your credit scores.

btacay · #2 (**permalink**) 10-03-2010, 07:48 PM

The number one rule with a credit card is to pay off the total balance every month. Never incur interest on a credit card. If you can't do that, cut it up today.

Even if you are getting the best credit card rewards around, if you are paying interest each month, you are losing money.

Alton Dawsey · #3 (**permalink**) 10-03-2010, 10:22 PM

Quote:

Originally Posted by tnmccask

#1: Experts recommend that you have between two to six cards.

What "experts" are you referring to?

You can bet your bottom dollar these "experts" work for or are getting paid by the credit card companies to say these things.

One credit card? OK, I'll give you that much but 6? Come on!

DavidBibby · #4 (**permalink**) 10-03-2010, 11:34 PM

When asked "How many credit cards a person should have", a spokesperson from credit.com said:

"There is no set number... a person should have AS MANY credit cards as they can responsibly manage"

Unfortunately.. for most people.. they don't know how many cards they can responsibly manager until they have ONE CARD TOO MANY... and then begins the downward spiral or late fee's, over the limit fee's, then collection calls and a whole lot of interest and stress you didn't want.

The perfect number for how many credit cards you should have is ZERO.

annikawilliams · #5 (**permalink**) 10-06-2010, 12:20 AM

Having a credit card isn't a bad thing, but it still depends on those who use it. Make it a habit to spend less than you make. Realize that if you can't pay for it today, you can't afford it.

Nick · #6 (**permalink**) 10-10-2010, 12:24 AM

here's some quick advice on plastic: Credit cards can be like crack

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