Find a credit card that rewards you for your spending. Spend money on the card that you would need to spend anyway, such as gas, groceries and even, utility bills. Pay this card off each month as you would those bills, but you get to keep the rewards as a bonus. Beware of credit cards that offer interest-free or low-interest introductory periods. Using such offers can lead to more debt than one would normally accrue. Although this may sound like a great deal, sometimes in the end you end up spending more because of making the mistake of signing up for this kind of offer.
As soon as your monthly card statements are received, immediately check them. Compare all charges on the statement to your receipts for your purchases to ensure there’s no errors or unauthorized purchases listed. You want to pay special attention to any charges you did not make. Also be on the lookout for double charges, a common error. Contact your card company with any problems right away so the issues can be resolved. Once you have closed your credit card account, be sure that you completely destroy your card. If you just toss it aside, it may end up being used fraudulently by someone else.
Keep your accounts open. You might think that by doing so you will help your overall credit score, but you might actually hurt it instead. This is because you are actually subtracting from the total amount of credit you have, which then lowers the ratio between that and what you owe.
After you have demonstrated that you can wisely handle a credit card that is secured, you may find the company will allow you to change it to an unsecured card. If you’re a loyal customer who pays on time, the company may start mailing you unsecured applications. Take the time to re-evaluate your personal financial situation as you go into the decision making mode.