Published: 2016-03-28   Views: 148
Author: Jackjones
Published in: Debt Consolidation

Everyone seems to have a credit card, but most people don’t really know all the facts about how they work and how they can affect your credit score. If used properly, they can be a great asset. Here are a few things you should know.

Annual fees aren’t a bad thing

Many cards you can get come with an annual fee typically just charged to your credit card yearly. These range in price, but an annual fee may be worth it for the amount of rewards you get in exchange. One example, according to Time, is the American Express Blue Cash Preferred card that charges $75 a year but gives huge cash back rewards and signing bonuses on the card. It really ends up helping more than hurting, so who cares if you have to pay a fee once a year?

Get and keep as many cards as you want

A lot of people think they need to only hold one or two credit card accounts at a time, but the truth is, you can have as many cards as you want and still maintain a good credit score. The big credit companies are more concerned with you being able to handle your credit than how much is actually extended to you. The only thing you may want to be cautious about is not getting them all at once. It will count against you every time a company checks your score, so you don’t want a bunch of those happening at one time.

Pay off your balance monthly

Some people think they need to keep a balance on their card every month in order to have a good credit score. The truth is you should actually spend less than 10% of whatever your limit is and pay it off every month before you start accruing fees. If you are already struggling with debt already, there are options available to you such as debt consolidation to help you get out of it. The experts at First Choice can help you figure out the best option to drop your credit card amounts as soon as possible.

Do not close old accounts

If you are done with a credit account and don’t want to use it anymore, which may be the case if you are trying to get away from debt, just cut it up. Don’t worry about actually closing the account. This can actually hurt your score. As long as there is no annual fee on the card, don’t worry about closing it out. Just stop using it and call it good.



Jack is renowned for various finance related articles. He expertise in debt, mortgage and insurance article and have various published works in other networks. You can get more information and tips to get rid of credit card debts from his articles.

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