Credit cards can have a big impact on your life. Whether that impact is good or bad is up to you and how you handle them. This article will give you some practical advice for getting the most out of your credit cards without them getting the most out of you.

Before you choose a credit card company, be sure that you compare interest rates. There is no standard when it comes to interest rates, even when it is based on your credit. Every company uses a different formula to figure what interest rate to charge. Be sure that you compare rates, to ensure that you get the best deal possible.

Ensure you understand how closing an account will affect your credit score. Many times it leads to lowering your credit score which you do not want. In addition, it’s good to keep the credit cards associated with your credit history active and in good standing.

Review the specific terms of the offer. If you have a pre-approved credit offer, or if someone claims they can assist you in getting a card, gather all the details first. Find out the exact interest rate and the time that rate is in effect for your card. Remember to check out any grace periods and finance charges involved, too.

Be vigilant of all purchases, so you can make sure not to overspend. It can be easy to spend more on your credit card than you intended, so make the decision to keep a total on a spreadsheet or in a written record.

When you are getting your first credit card, or any card for that matter, make sure you pay close attention to the payment schedule, interest rate, and all terms and conditions. Many people neglect to read this information, but it is definitely to your benefit if you take the time to read through it.

Be sure that you fully understand the terms of the credit card prior to signing up for it. The fees and interest of the card may be different than you originally thought. Read each word in the fine print so that you completely understand their policy.

Do not use credit cards to buy items that you cannot afford. Credit cards should not be used to buy things that you want, but don’t have the money to pay for. You will end up being charged lots of interest and you may be unable to keep up with the monthly repayments on your credit card. Get out of the store so you can think about it for a while prior to making a decision. If you still plan to buy it, the store’s in-house financing usually offers lower interest rates.

An important tip for saving money on gas is to never carry a balance on a gas credit card or when charging gas on another credit card. Plan to pay it off each month, otherwise, you will not only pay today’s outrageous gas prices, but interest on the gas, as well.

Try to reduce your interest rate. Call your credit card company, and request that this be done. Before you call, be sure you know how long you have had the credit card, your overall payment record, and your credit score. If all of these show positively on you as a good customer, then use them as leverage to get that rate lowered.

Prior to applying for a credit card, try to build your credit up at least six months in advance. Then, be sure to take a look at your credit report. By doing this, you are more likely to get approved for the credit card and get a higher credit limit, as well.

Keep the total number of credit cards you use to an absolute minimum. Carrying balances on multiple credit cards can complicate your life needlessly. Shift your debt onto the card with the lowest interest. You will be able to keep better track of your debts and pay them off faster if you stick with a single credit card.

When possible, pay off your credit card bill in full. Unless you have 0% interest, you will get a finance charge put on your bill when it is not paid for completely. These added costs can make it very difficult to pay down even a modest credit card balance if you stick to making the minimum payment every month.

If have a missing or stolen credit card, report it as soon as possible to the card issuers. Several companies have a 24-hour service and toll free number on their statement for this reason. To protect yourself, after calling, write a letter to every issuer. The letter should provide your card’s number, the date it went missing, and the date it was reported.

Now that you can see what ways credit is good for you and how to avoid the pitfalls and negative consequences that they can bring, you are ready to dive into the world of modern credit. When credit cards are necessary, an educated consumer like yourself, can make the most of them.