How to Manage Multiple Credit Cards
Learning how to manage multiple credit cards is the secret to a successful financial future. Instead of running all of them up to their maximum limits, and having to get a second job to pay off debt, there is a trick to managing the debt ratio compared to available credit. If you can do this successfully, then even though you have balances on them, it will actually work to your benefit. Ideally, you should never use more than a third of your available credit on your card. Even if you think that using the maximum amount on your card and then paying it off right away is a good idea, it's not working like you think. Instead, the credit card providers are looking to see that you know how to manage your accounts in a responsible manner.
Credit Scores and Interest Rates
By showing them that you can manage several accounts, you are giving yourself a higher credit score. Not only will this benefit you right away but you will have a chance at more credit in the future with higher limits. Consider how valuable this will be when you are getting ready to purchase a house or a car, and you want to get a great interest rate. The better your score, the lower this rate will be. This one factor alone could save you thousands on a purchase where other clients would be paying much more. This is why education on the use of credit cards is so important, even from your very first account. If you are trying to share this with your teenager, then give them access to materials and documents that explain all of this.
Taking Credit Card Use Classes
The providers of credit are happy to direct you to some online classes that can be taken at any time. Usually, there is no enrollment fee; it is just some great advice on how you can start building a credit score from a young age. The way the world works today, credit is a necessity. In previous times, it was considered a luxury; however, that is no longer the case. It is necessary to even get a job if you plan on doing more than working at a fast food place. Keep that in mind when you get tempted to run up that balance and then hope and pray that something comes in where you can pay it off. Look at each transaction carefully and remember that it's going to be a part of your permanent credit score record.
When you do this, you'll be better prepared to answer the question of, "Do I really need this?" While it's not the fun answer, most of the time, the answer is no. By mastering this art, you'll be able to save up that credit for things you do need and emergency situations where you get stuck in the middle of nowhere. If you were stranded somewhere, wouldn't it be nice to put a hotel room on your credit card and feel good about it?
The interest rate that you'll be charged will be low and you'll have a plan in place where you can pay it back on time. This kind of planning and learning how to manage multiple credit cards is a lesson that many credit customers could benefit from. If you have further questions that you want to submit to your credit card company, then you can do this either over the phone or through online communication. Figure out which one is most convenient and proceed on from there.
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State Guides to Credit Card Laws
- North Carolina
- West Virginia