Comm101

The first thing I learned while researching credit cards was something called  the Credit Score . It turns out that maintaining a high credit score is imperative, as it will save you a lot of money. Any loan is technically credit but amongst all loans credit cards are the most important to understand given how frequently they are used in daily life. Learning how to manage them makes them worth having.

Pay off your bills regularly. 35% of credit score is represented by your debt payment history. A tardy payment will drop your score and increase your APR.  APR= ~ >14% Annual Percentage Rate. There is also a late payment fee.  Keep your cards active for a lengthy period of time, this shows that you are reliable. Once you start paying off your bills regularly, request for a credit increase. This will improve your credit utilization rate. A lower  rate is preferred since lenders want to see that you will not default on loans. Avoid closing accounts especially before making a big purchase. The credit score is partially calculated using credit utilization rate and a lower credit utilization rate implies a higher score which in turn leads to lower interest charged on future credit.

http://www.investopedia.com/terms/c/credit_score.asp

http://www.investopedia.com/university/credit-cards/