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Credit cards can be a very useful tool, when used wisely. There are some people that will benefit greatly through the use of a credit card, by not only having the extra borrowed funds, but rewards associated with these cards. I personally have managed to accumulate enough airmiles from this credit card reward scheme to get a free return flight to America!

On the other hand however, if not used properly, or misused or abused, credit cards can be a downward spiral into bad debt. But to the majority of people who use their credit cards wisely, there are so many benefits to having them.

Here are several ways to get the most out of your credit cards:

Select wisely in the first place. Be sure to read the fine print in any offer you are contemplating, especially credit cards offers. Sounds like I am teaching you to suck eggs, but if you think you know what the card offers, please check again, many cards will have clauses and terms and conditions associated with certain transactions. If needs be go to the credit card providers own website to thoroughly check out the card.

Make regular buys on rewards cards. Do this mainly to accrue the rewards; just make sure you plan accordingly so that you can pay it in full at the end of the month. (Paying interest on groceries is not fun.) Set up a direct debit to come out of your current statement that pays off the minimum amount at least apiece month

If you get cash back, don’t waste it. It can be seen as “extra money” to splurge with, maybe go out to dinner, but be warned, cash back and using your credit card at ATMs to get cash will result in fees and charges, is that extra paper in your hand worth the money?

Interest-free purchases. Several credit cards offer a “new card” or “new member” period where they don’t charge interest on purchases. If you get one of these, take advantage of it (while still minding your budget), but keep an eye on when they are due to finish. Many people will forget and get charged a higher rate after this period finishes. Remember credit card companies are in it to make money; they will be counting on you to forget!

Maximize your rewards. See if there are any circumstances wherein you get double points, or extra bonus awards. You might be pleasantly surprised. (This is also something to look for when you apply for a credit card.) MBNA offers airmile bonus points if you spend certain amounts within a certain time. Trust me they are well worth it!

Ask for help if you need it. If you find yourself in a situation, such as loss of employment, disability, hospitalisation, etc., call your card issuer and see if they can work with you. Perhaps you had disability insurance on your card and weren’t aware. In any case, communication is superior than burying your head in the sand and getting into more debt.

Watch your credit card limit. The fees associated with going over your limit can be unreasonably high, and in some cases even your interest rate for the entire card could increase. Be careful and refrain this.

But of the many benefits of using credit cards to your advantage and not to your detriment, these are the but some ways. Be sure to take advantage of them and take control of your financial destiny!

You might have many dreams when you begin your independent life. Your own credit card is one of them. Getting your first credit card is a major step in financial independence.  It is important that your first steps be solid and successful.

Banks first look at credit history when determining if they will issue you a credit card.  You will want to check your credit record before applying for your first credit card.  That way you can clean it up if there are any mistakes.  If you have no credit history, don’t worry; this is your first card.
You should have a savings and checking statement at your bank.  This is seen as sound financial status.  It will help with your application process.
Approach your bank for a card before you approach anyone else.  Your bank knows you.  Since you probably have established no or very tiny credit history, your own bank is the ideal place to start.
Don’t apply with numerous sources.  Each time you apply for credit, credit-reporting agencies take note and post it on your credit report.  Too many applications at many different places will seriously harm your credit report.
Know what fees you are being charged.  Many fees, fees for cash advances, late payment fees and annual fees, are standard to cards.  Still, you should know these fees and how they will affect you.  You should refrain credit cards with membership fees, if possible.
If your bank refuses your card application, find out why and what you can do to correct or improve upon the situation.  Often, when a mortal is turned down for their first card it is because they have no established credit history.

You can establish a credit history by showing utility bills paid in your study and, most often, by obtaining a department store or gasoline retailer credit card.  These cards have lower standards and are usually easier to get than a traditional card.  Lastly, you can get a secured credit card, which is guaranteed by a savings or checking account.  This is not a prepaid card since you do not “load” the card with your deposit funds.  The secured card is just like a traditional card; only it is secured or “vouched for” by your funds with the bank.  After six months to a year of clear and regular payments on any of these cards, you should have tiny trouble being allowed your first traditional credit card.

After all, it is your first jump in the deep waters of financial challenges!

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You can see many people shopping with a fat notecase full of shining credit cards. Then you might ask yourself the question – how many credit cards I should possess?  Well, how much food should I have daily?  You will swiftly admit that the answer is difficult.  But what food should I have?  The answer might be easier.

You always need a credit card.  If you are checking in at a hotel, you might be required to show them a credit card which will act as a security for your payment.  You might or might not pay your hotel bills by that card but the management of the hotel will require it.  You might also need a card if you are a businessman travelling crossways the country.  You might need it to match your lifestyle.

So you need a credit card.  But how many of them you need?

The studies have shown that average American has two to five cards in his wallet.  Some have more than that.  But the experts state 2 to 3 cards is an saint number.

If you have many credit cards, it is a time consuming task to keep track of all of them and meet their payment deadlines.  Even a small delay might be looked upon as a sign of financial trouble by the creditors and it will hit your credit score as well as credit history.

Whatever number of cards you have, you should not utilize more than 30 per cent of the limit acquirable on apiece card.  That will give you advantage of high credit score, in turn superior rates of interest for mortgages or auto loans.  Even one per cent reduction in the rate on your mortgage will save thousands of dollars over a number of years.

If you want to take a decision to cancel some of your cards, you should never cancel cards which are with you for a long time.  Old credit cards are very important in maintaining high credit score.

While deciding on which cards to keep, you should give preference to huge card issuers like VISA, MasterCard or American Express.  Credit cards of departmental stores usually charge you very high rate of interest and they can be used for that particular company.

When you get a new credit card, you should not feel like getting some more money for spending.  It is on the other hand an indication of increase in your debts!

To sum up, credit cards are required for building a good credit score which will be useful for buying a home or for applying an auto loan.  However you should not go beyond three cards at a time, you should be regular in their payments and you should keep on monitoring the credit card transactions regularly.

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Financial experts usually advise against canceling your credit card.  They show you the fears of adverse remarks on your credit report and reduced credits scores. However, you can't promise a lifetime relationship with all your credit cards!

You are attached to credit cards from an primeval age. You might have a bundle of good and bad experiences while using them.  Financial gurus advise to maintain a good relationship with them and advise you not to cancel them even though you don’t use them. However there are some compelling situations when you have to take this hard decision.  Here are some of them –

1. When your rewards begin shrinking – In this period of economic downturn, the card issuers also feel the pinch.  In an effort to maintain profits, they play with the rewards.  Sometimes they will reduce the points which you will get on your spending; sometimes they will increase the rates of redemption.

Generally such changes will take place after they send you some intimation in advance.  In this situation, it is advisable to redeem maximum acquirable points and request them to cancel credit card.  You can go for some other credit card offering superior rewards.

2. If the customer service standards are falling – In their credit crunch, credit card companies will outsource most of their work.  You might be talking each time with someone who is not a properly trained representative. Sometimes such representatives might not initiate prompt actions on your requests. They might not be healthy to abandon some of your fees which you feel are unreasonable.

You should always get the prompt and courteous customer service.  If you repeatedly experience poor service, it is superior to state goodbye to such credit card company.

3. High annual fees on unused cards – On the basis of lucrative offers, you might have accepted a credit card.  The rewards might be weakening out in the course of time and you might have stopped using such card.  However the annual fees might continue to appear on your statements.

If this is the situation, you can contact the card issuer and request for a relinquishment or reduction in the annual fee.  If the response is negative, you might get rid of such card.

4. Clipping your credit card limits – For no apparent reason, your card issuer might reduce your acquirable credit.  Perhaps it might be due to the overall credit crunch; perhaps it might be due to the fact that they don’t trust you.  Sometimes, they reduce the limits in order to charge you more on your spending over the limit.

If you are using regularly half of your acquirable credit and making prompt payments, there is no reason for your card issuer to curtail your limits.  If they do so, you can go ahead and cancel the card to find some other card issuer who will trust you.

5. If the card issuer is encouraging you to cancel the card – Believe it or not, this has happened recently.  One credit card company sent letters to some of its customers offering them cash reward if they pay off the equilibrise entirely.  This was apparently a move to get rid of some customers. If you receive such offer, you should promptly take it.

The relationship between you and your card issuers is mutual.  If you are prompt in your payments, they need to trust you.  They should value your business. If they begin playing with you some cheap tricks, you can always find someone better.