Never accept the first "pre-approved" offer you get in the mail. The "pre-approved" offer is sent out to millions of consumers who fall within a certain credit rating area. You can contact the company and find out you are actually denied credit or your limit is small or you are charged a higher interest rate due to a bad credit score. You should contact the credit card company you want to work with directly instead of from a mailed offer. Web sites like CreditorWeb.com allow you to compare hundreds of credit card offers and help you find the best deal by shopping around on their web site.

The fine print terms that come with a credit card need to be reviewed before you sign up for the credit card. The terms and conditions are often tossed into the garbage, but they include all the vital information about the credit card that you need to be aware of. The terms and conditions discuss what will happen if you miss a payment, go over your total credit limit, and what you are getting for your rewards. Some also include information about increasing interest rates for consumers who go over limit or miss a payment. This is one area that you need to consider when applying for a credit card as you will save money by properly controlling your spending.

You should always inquire about a lower interest rate. After you have been a credit card consumer for a few months, you need to contact the credit card company and discuss your options. Ask them for a lower interest rate or a larger credit limit. Both will help your credit score because you won't be paying as much money in fees and interest. If you have been a good customer for the credit card company, they will actually consider your offer and work hard to retain you as a customer. If you ever feel you are being treated unfairly, ask to speak with the retention department. The retention department is in charge of keeping customers, so they are willing to bend over backwards to keep you as a paying customer.

A great way to save money on credit cards is to pay off the balance in full at the end of each month. Credit cards generally have higher interest rates than other types of loans and you will pay twice the amount in interest to the credit card company as you would to a bank who offers you a line of credit.

Never, ever use your credit card to obtain a cash advance. The fees with cash advances are extremely high, usually upwards of 19% interest rate plus a cash advance fee. Cash advances are the second worst thing you can do with a credit card. The worst thing you can do is miss a payment. Cash advances will take longer to pay off then the rest of the balance on your card. Typically credit card companies take your monthly payment and apply it all to the lower interest rate purchase and will only pay off your higher interest rate cash advance once all the other items on your credit card have been paid in full.

The best thing you can do with a credit card is to pay on time and in full. If you ever miss a payment, you will incur a late fee and your interest rate will increase significantly. Missed payments are also reported to your credit report and can cause your other loans or credit card interest rates to increase. A late payment will remain on your credit report for 5-7 years. Having a late payment on your credit report will make it harder to obtain credit in the future.

Avoid overspending your total credit limit. Like a missed payment, overspending your total credit card limit will incur heavy fees and increased interest rates. It also is reported to your credit report and will lower your credit score. You should only plan to purchase 30% of the total credit limit on your credit card. Anything more than 30% that is carried month to month will have increased fees and will lower your credit report.

Take a look at your existing credit cards and write down the interest rates on each card. If you are paying more than 12% interest rate on your card, you are paying too much. A credit card company that charges 13% or higher in interest is basically stealing money from you. Some credit card companies will tell you that you are stuck with a higher interest rate because you have a lower credit score. Before you even apply for a credit card, check your credit score to make sure you fall in the "good" credit score rating. Anything below a good score means you will pay higher interest rates and using a credit card is probably not a smart decision on your part.

If you are carrying debt on a higher interest rate credit card, consider opening a 0% interest rate credit card or a lower interest rate credit card and transfer the entire balance from the higher interest rate card to the new card. This will save you a fortune on interest rates. Beware of companies who charge for balance transfers, as this will negate the entire reason for obtaining the new credit card. Make sure you can pay off the balance of the credit card within the specified term. If the new card will allow you to keep a 0% interest rate for one year, pay off that balance before the interest rate is over.

Another thing you need to consider when you open a credit card is if you have enough money to pay off the balance each month. If you are in debt with your credit card, consider using part of your savings to pay off credit card debt. You should still leave yourself with enough savings to cover any emergency expenses you may have. If you don't have enough savings to pay back your credit card debt, consider getting a home equity line of credit. The interest rate on a home equity line of credit is much lower than most credit cards so you will save money on the interest costs and you can deduct the home equity loan from your taxable income.

If you are carrying balances on your credit cards, begin paying down the balance on the card with the highest interest rate first. Make the minimum payment on the other credit cards while you are paying more to the higher interest rate card. Once the card with the highest interest rate is paid off, begin doing this to the next card with a high interest rate. By following this strategy, you will avoid paying more money in interest than you will pay with the lower interest rate credit cards. If you can, pay as much as you can to each year to your credit cards. Paying off $500 to one card will save you $100 in interest fees.

Always talk to your bank about their credit cards. Using a bank credit card is easier because you can set up automatic transfers from your checking account to your credit card. You can also set the limit on your credit card. If you know you overspend on credit cards, then you can ask your bank to set you limit at $500. This will help you stay within a reasonable amount and avoid overspending.