Whether you are 18 years old with no credit history or in your mid 40’s trying to get over that Chapter 11 bankruptcy, building credit is a slow and tedious process that should be taken rather seriously. There are a lot of credit cards that help you build credit while others not only tarnish it but could also prevent you from receiving other credit cards in the future.

Things like annual fees and high APR’s can really hurt you in the end if you are not careful. Be wary of the credit cards with small credit limit. If you have a taste for spending and your credit limit is only $400, chances are that you will go over that limit pretty quickly. One of the worst things you can do is go over your credit limit. To you it might seem just a few extra dollars that you accidently spent without doing the proper math in your head but to credit card companies, that means you are irresponsibe person who should not have a credit card in the first place. So what happens to irresponsible spenders? First, expect your interest rate to rise to mid 20% which even with $400 limit can put a nice dent in your pocket. Second, have fun explaining to other credit companies why your credit score took a nice dip all of a sudden just because you didn’t have cash to pay for that venti coffee at Starbucks.

Always pay your balance in full. That way, the credit card companies don’t make any money off of you and can’t charge you monthly interest. Also, pay your credit card ahead of the due date. The sooner you get it over with, the lesser are your chances of forgetting to make that midnight payment the night before. If you are responsible with your spending and pay your card off on time, credit card companies will be compelled to raise your credit limit in hopes that somewhere down the road you end up skipping a payment or won’t be able to pay it in full. Make your money work for you, don’t work for your money. balance each month. Soon you will be on your way to larger credit limits, and lower interest rates.

Credit cars such as HSBC, Orchard Bank, Capital One, Horizon Bank are good to start building and rebuilding credit. They are considered subprime cards so expect to pay above average interest rate if you are unable to pay the balance in full each month. And make sure to add your credit card companies to your speed dial and always call them to see if they can increase your credit limit or lower your interest rate. Sometimes you might stumble onto fortune and save more money in the long run.