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3 Reasons Why You Shouldn’t Go To Credit Cards To Help Build Credit On Your Own | credit cards to help build credit

Many people do not realize it, but having credit cards to help build credit can be a great idea. There are many perks to owning a card such as being able to make purchases online, receiving free checks, and even get cash back for the expense of your purchases! However, credit cards come with lots of responsibilities. Always be careful who you are giving your card to. Here are some suggestions that will help keep you safe.

Get Informed: The most important reason for learning all about credit cards, is to know when and how to use them. Be sure to check your monthly statements and make sure that the items you charge on your card are yours. If you find yourself missing payments, contact your credit card company right away. They will not charge you until they receive confirmation that the item is yours.

Protect Your Credit: The best way to protect your credit is to pay your bills on time. By paying your bills on time you show that you are credit worthy. Also, by limiting the amount of credit you have available you are keeping your credit cards to help build credit off limits. This is actually good practice for preventing debt. You never want to have more credit on you then you can afford to pay off.

Not all credit cards are equal. Always read the terms and conditions. Know exactly what you are charged for. Know if you are paying fees or interest and this will help you determine if your credit card is right for you.

Beware Credit Card Companies: Many credit card companies offer special cards with great interest rates. But don't fall for these. Only use a credit card company that is trustworthy and has a good track record. You need to know you will get your money when you need it. Shop carefully and make sure the credit card you choose will provide you with what you want and pay off your bills.

Apply For New Credit Cards: Apply online for credit cards that will help you build credit. You may find a card that was advertised online but be careful, they may not be credit worthy. Only apply online for credit cards if you are 18 years old or older and in good standing with your current bank.

Build Credit by Paying Your Bills on Time: The key to building credit is paying your bills on time. It is important to always pay the bill before the due date. If you wait until the last minute you will see late charges on your credit reports. This will hurt your credit. So, being sure to pay your bills on time will help build credit. Also try to avoid credit cards with high balances, these will also affect your credit score.

Use Credit Cards for Small Purchases: Some people use credit cards for things such as diapers and groceries. While this may seem harmless to other people it will hurt you. All those monthly purchases will have a negative impact on your credit score. If possible do not over utilize credit cards. Use them only when absolutely necessary.

Maintain Open Accounts: Many lenders will look at your existing credit history to determine whether or not you are credit worthy. If you currently have a revolving line of credit with a zero balance, you are seen as less of a risk than if you have no credit cards. Having an open account is another way of building credit. This shows that you can handle credit wisely. And by being responsible with your credit cards you will begin to see improvements in your credit score.

Apply For Zero Rate Financing: If you need a loan but have no credit cards you can still apply for a loan at a bank or other institution. Most banks offer special financing rates for those who have no credit. And if you have one or more credit cards you can inquire about no fee finance options.

Apply For Combination Credit Cards: Combination credit cards are great if you don't use all the available credit in your wallet. You can get a credit card and a checking account all in one. And by combining these two you can build credit faster. It is also easier to manage the accounts if you have them in the same name and you are both registered on the financial institution.

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