Credit cards and credit card debt is a way of life for some people today. In few of today's hard economic times, I wanted to share some tips on handling your credit cards effectively.
Read the box that comes with credit offers and updates. The complete disclosure about fees is complicated. My advice is to find the box that gives the basic information like:
- Introductory Rate
- ‘Regular Rate’
- Annual Fees (if any)
- Over the limit fee
- Late Fees
It's the law for companies to have that information available for consumers. If you have an annual fee, see if you can negotiate it off. Why should you be charged a fee to be a cardholder? If your company refuses to waive the fee, try searching for another card. Check your bills to see if they changed any of the rates or fees, since they can do this at any time. Use sites like Bankrate and Credit Card Tune-Up to see if there is a better deal for you.
Calculate the Real Interest Rate (on a $1000 balance for example it can be around $200-$280/year). Many credit cards for students today fall within the 20%-28% interest rate range. If you always pay off your balance every month, interest isn’t a big issue. If you tend to carry a balance on your credit cards, try getting a lower rate. When looking at other cards please check if there are transfer fees and what the rate is after the introductory period.
Avoid Fees Credit cards are known to charge their customers $39 for late fees and $39 for going over the limit. Those fees don't include the interest rate! Do yourself the favor and pay on time and keep it under the limit. Sign up for online bill pay through your bank to minimize the late fees and keep you account current. keep in mind, if you are late on any card for another company, some credit card companies charge you on their card even if you paid on time!
Using a credit card responsibly can help your credit history, but having bad habits can quickly destroy it. Remember it’s easier to lower your credit score than raise it. Do yourself a huge favor and be reasonable with your credit card.
Laura Pilkington -
http://www.greenpandatreehouse.com/2008/04/how-to-use-credit-cards-wisely/
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