Credit Cards National Average: 12.2%
Rewards Cards National Average: 14.8%
How Long will it take to pay off my credit card(s)
When it comes to your credit card, take your promise to pay seriously. Everyone makes mistakes or has hard times but credit will follow you and hurt your eligibility for mortgages or loans down the road.
Look at your statement carefully and call the company right away if you have any questions. It’s easy just to look at the amount due and not much more. Errors do occur on credit card transactions.
There is usually a large finance charge for cash advances and interest begins accruing as soon as you take the money out, not after the next statement closing.
Be aware of annual fees. Many times you are charged $50 or more just to have the card. It seems like a small thing when you apply for the card, but first try a card that has no annual fee.
Watch out for introductory offers! When you receive a credit card offer in the mail with a low rate, it may expire in three or six months. Note when and by how much the rate increases after the "introductory offer" expires. You may not remember when it expires, but the card company will.
Think carefully about the items you purchase with a credit card. If you are not able to afford the purchase now, chances are you won't be able to afford it in a month when the credit card bill comes in!
If you get behind on your expenses cut your recreational expenses or get into the habit of paying for cash for things like movies so you know that you can really afford them.
Call your credit card company if you get behind. They may be willing to work out a repayment schedule with you.
People who have a very poor credit history often not qualify of a regular credit card. A secured credit card may be the only way for such people to enjoy the benefits of credit card use. By using one of thes card responsibly, this can be a way to establish or repair your credit profile.
Offers vary so be sure to shop around. You aren’t just looking for a good deal. You are looking to avoid a really bad deal.
Some secured credit card issuers will charge an application fee and others will not. Most all secured credit cards have an annual fee, normally around $50, but they vary widely. Make sure that you know exactly how much you will pay to receive the card. It is possible that with an application fee and an annual fee applied to the first month you will have very little available credit remaining.
Even with secured credit cards there will be fees for overspending your deposit and failing to make additional payments on time, so normal good credit behavior will be important. If you have had credit problems before you will have to be sure not to repeat the behaviors that created that situation.
On a secured credit card the amount that you must deposit varies from card to card. Most cards range from $250 to $500, and that will normally be your credit limit.
With secured credit cards it is especially important to watch out for really bad terms that can totally defeat the purpose of having the card. Some issuers have low fees and provide reasonable service. Others will try to impose more and higher fees, especially if you deviate even a small bit from the terms of your agreement. The worst ones will charge outrageous monthly fees hidden in small print in the application or will harshly penalize a card holder for overspending even by a small amount.
As always it’s important to understand the terms of your agreement and live up to your responsibilities. That’s the only way to improve your credit.
Beware of offers of easy credit or credit without a credit check. No one can guarantee to get you credit. Before deciding whether to give you a credit card, legitimate credit providers examine your credit report.
Don’t ever follow instructions to call a "900" number to apply for a credit card. You pay for calls with a "900" prefix --and you may never receive a credit card. (The operators, of course, make their money from the telephone calls.)
Offers that promise a credit card if you send in an application fee. These are "advance fee loan scams" and are illegal.
Credit cards offered by "credit repair" companies or "credit clinics." These businesses also may offer to clean-up your credit history for a fee. However, you can correct genuine inaccuracies or outdated information yourself by contacting the credit bureaus directly. Only time and good credit habits will restore your credit worthiness.
Any credit card offer that sounds too good to be true almost certainly is.
Get help if you feel you're in over your head with credit cards.
The best credit card tip is to gather all your credit card statements and see which credit card charges the highest interest rate. When you find the credit card with the highest rate you should make the biggest payment to that credit card while making minimum payments on the other credit cards
It is important to make sure you spread out any balances over a few different credit cards. For a maximum credit rating, you do not want to exceed a 30% balance to credit limit ratio. If you have recently paid off a card, do not close it but rather use it for small purchases and pay it off monthly. Closing out a card reflects negatively on your credit.
While it may be tempting to adopt a policy that more is better when it comes to credit cards, it is not necessary to have more than 6 credit cards for most credit purposes. 4 credit cards will help you meet most requirements for loan programs.
To make sure that your credit cards do not hurt your credit score make sure that you pay your balances on time and pay off or at least pay down your balances.
Make your payments on time! When you pay on time you are building good credit. Make sure you know precisely when the payment is due and how long it takes for your payment to process. If it’s due on the 15th of the month make sure you mail your check at least a week and a half in advance of the due date. If you make your payments on line or by phone, find out how long that takes to process. Some companies say it can take up to three or more business days to process your payment. You don’t want to be hit with those late fees and penalties. Being late can make your credit card more expensive than it’s worth.
Parents, monitor your children’s credit card use. You can even put a limit on what they can spend so you won’t be stuck with a messy clean up.
Remember any accounts you have, where you are granted credit affects your credit history. This includes services provided by utility companies. Late or missed payments to them will be reported and lower your credit score.
If you are trying to establish credit, do not apply for a whole bunch of cards at once. Do your research and pick one. Applying for credit all over the place makes your credit score go down.
One major credit card handled responsibly raises your credit score more than having a bunch of minor cards.
Remember you can never dispute a charge after you have already paid the bill. If you want to withhold payment from a vendor you have to do it before you pay.
Keep detailed records of all correspondence with the credit card company and the merchant with whom you have the dispute.
Technically, the credit card companies can refuse to deal with any complaints for purchases that were less than $50.00 or purchased more than 100 miles from your home. (Most of the time that rule is not enforced, but it could be.)
Some protections for the cardholder come from the credit card company’s policies but some need to come from you. Don’t let your personal and credit card information float around out there unrestricted. One of the best ways to protect your credit card number is to buy a good shredder and use it.
You have the right to shop around for the best rates on credit cards. If your current company won’t play nice, go find another. Just make sure when you close your old account that you send a letter stating that you are choosing to close the account. Who closes the account and under what circumstances all impacts your credit rating. If you’re going to close an account, pay it all off first. When all is said and done, check your credit report for accuracy. If the report says that the account was closed at the request of the company, call them up and get that fixed ASAP.
Learn how to read the “Schumer box” on a credit card offering. This portion of your credit card offer mandatesg that credit card interest rates and fees be spelled out in a plain-english format and in a type size big enough to be easily read. It includes most of the information necessary for comparing and choosing cards.
Fixed credit card rates aren't always fixed If the credit card issuer has already disclosed in the cardholder agreement that your rate could change under certain circumstances, you'll get the information about the rate change in your statement
Look at your credit card statement carefully and call the company right away if you have any questions. It’s easy just to look at a few numbers, but get in the habit of reading the entire statement.
It’s easy to be lured by a low APR, but be aware of annual fees. Many times you are charged $50 or more just to have the card.
Watch out for introductory rate credit card offers! When you receive an offer in the mail with a low rate, it may expire in three or six months. Note when and by how much the rate increases after the offer expires. You may not remember when it expires, but the card company will.
Think about your credit card purchases. If you are not able to afford the purchase now, chances are you won't be able to afford it in a month when the credit card bill comes in!
If you run into trouble making payments on your credit card, look into free credit counseling services. Many offer educational programs or individual counseling sessions to help you get back on track.
Call your credit card company if you are getting behind on your payments. They may be willing to work out a repayment schedule with you that will maintain your credit and help you keep the card.
If you think your credit has improved or even if it hasn’t, call your credit card company and ask for a lower interest rate. It could be that they’ll say yes, but they won’t call you. You have to dial them.
Keeping a credit card balance below one third of your total available credit looks good to potential lenders, but it also provides a credit cushion in the event that you have a sudden or emergency need for money.
When you get an offer in the mail saying you are pre-qualified or pre-approved for a 0% offer on balance transfers don’t get too excited. Those things are sent to zillions of people. Machines crunch some numbers through a mix of formulas and if you fit into a company’s particular category, you will get one of those offers. Here is the catch. Just because they say it doesn’t mean it’s true. That 0% offer and your ability to get it, depend upon your credit score and history. They can still turn you down. My advice, know what your score is and if it makes sense because you have a high score then you may want to apply and get out of a high rate card. But if they say no, it will actually lower your credit score even further.
Ask lots of questions before you sign up and fork over your money. It’s much easier to ask questions first than to fight about what you let slide by.
Realize that rates vary terrifically from company to company for balance transfers and everything else. Do yourself a favor and do your homework. Read all that nasty fine print and make sure you really compare apples with apples. Making a chart where you can make out every detail about the conditions and rates credit card companies may offer will help keep things simple.
Be careful of offers that seem too good to be true. For example, a card may offer 0% interest on all balance transfers for a year but buried in the fine print there maybe hidden, high fees for such transactions. There may also be sever penalties for late payment that can take your sweetheart deal and turn it into something you want no part of.
Though we often focus on what to watch for or weary of in credit cards there are some distinctive advantages to having a credit cards: credit cards reduce your need to carry cash or checks credit card availability helps provide security in emergencies credit card use helps develop independence credit cards can build a positive credit history credit cards enhance your ability to get credit for future use
When you are considering taking on another credit card, consider whether you I need a credit card, you can afford a credit card, and that you will be able to pay off the card.
It's easy to overlook your bills when you're busy or unexpected surprises come our way. Setting up automated payments from your bank account can help avoid late payments and fess. Most credit card companies will let you establish an automatic payment program to pay a set amount or the even the full balance from your bank on the due date each month
Don’t overlook that a credit card company can impose late fees, increase your interest rate and cancel your rewards for the month if you pay your bill late.
Now that more and more industries are checking your credit make sure you understand what is in your credit report. Get a copy of your credit report and monitor your credit.
Be sure you know what some of the biggest credit use mistakes are. Many factors can alter your credit score including high balances on a card relative to the vailable credit on that card and often If you open up a retail store credit card your credit score could drop.
You'll need to know what rate you're paying and what you are paying for.. Examine every statement. The changes in your interest rate may not necessarily come under a separate notice, it may be included in your bill.
Credit card issuers are once again offering cash-back and other rewards in more places. Read the offers carefully and use the cards that maximize your gain based on your spending habits.
If you do carry a balance on your credit cards frequently, consider using non rewards credit cards. These credit cards will often offer lower interest rates.
If heavy credit card balances are bringing you down you may consider a balance transfer to a new credit card. With the transfer to a new card, the credit card issuer pays off your other card balances and transfers the debt to the new card. After you transfer the balance you are offered a lengthy period of time to pay off the transferred debt without having to pay any interest. Generally, the terms specify you pay each month on time, don't make any new charges and pay off the balance by the end of the introductory period.
Used responsibly, student credit cards can be a significant benefit. Students can usually qualify for theses cards without an establishing a credit history. Student credit card issuers often offer extra benefits such as cash back or store discounts
Never limit your credit card choices to what arrive in the mail. Do your own research and investigation. Comparison shop for the best rates and programs.
If you do take an offer for a credit card with and a promotional introductory rate be aware that after an introductory period expires, the rate on your card will generally increase.
Credit cards are now accepted internationally in almost every major country. In foreign countries, credit cards can be used in ATMs to access cash in the currency of the country you're in. With the ease of use and purchase protection, credit cards are used widely for international travel.
When you had a temporary oversight on your monthly payment, you can always take advantage of online or payment over the-phone options.. If the credit card issuer wants to charge for this feature make sure you explain your positionand ask them to waive the charge.
Paying with a credit card generally provides greater protection than using a debit card, check, or cash. A host of federal regulations including the Fair Credit Billing Act and Federal Reserve System Regulation Z help enforce security and consumer protection in credit card activity.
In measuring toatl security and consumer protection, debit-card purchases have much weaker consumer safeguards than credit-card purchases do. Stick with a credit card.
