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Top 10 Credit Card Tips (Page 1 of 2)
The credit card has been one of the most popular inventions of this time, helping consumers acquire convenience and boosting consumer spending for the economy. However, credit cards have been exploited for the wrong reasons, and thus have become the main source of debt for many consumers. Thus, in order for credit cards to be beneficial, consumers would need to be well-informed on the proper usage of credit cards.
1. Pay off your outstanding balances each month
Rolling over outstanding balances will only result in snowballing debt. Credit card interest rates are amongst the highest as compared to other types of debt. With this, your cost of expenses is increased without any apparent benefit to you.
2. Transfer your high interest credit card balances to 0% APR credit cards
If your outstanding credit card balances are high, you should work out a balance transfer to other credit cards that offer introductory 0% APRs. This way, you can stagger monthly payments and pay off your credit card debt gradually without incurring additional interests.
3. Cut up high interest credit cards
Its time you evaluate your credit card interests, and cut up those that charge high interest rates, no matter how wonderful their reward programs at. At the end of the day, the rewards attained will not equate the additional interests incurred.
4. Be careful with your credit limit
As your credit limit may be 2 or 3 times greater than your monthly income, it can be fairly easy for you to overspend. Thus, when using your credit card, be sure that you dont charge more than what you can truly afford.
5. Check your credit card statements
Contrary to what you may believe, banks and credit card companies may make errors in their billing statements to you. Thus, it is best to have a habit of cross checking your credit card charges before making payment.
6. Automatic transfer payments
If your credit card is being used for grocery shopping, you can always arrange for an auto-payment with your bank to ensure that you always pay on time. However, you would still need to cross-check your credit card statements and make a complaint if you find any discrepancies.
7. No credit cards when window shopping
Do you have bad control over your shopping habits? If you are on a window shopping spree, it may be advisable not be bring your credit card. How else would you buy anything if you are out of cash with no credit cards? This is a good way to stop yourself from impulse purchases.
8. Be aware of your rights
Consumers are entitled to rights when it comes to making purchases. The government has set forth many guidelines for retailers in order to protect consumers. Thus, if you have paid for something which did not get sent to you, or if you purchase something that turns out to be faulty, you have every right to demand for a refund or make a report to the Federal Trade Commission.
Poor Credit Score? Find the Best Bad Credit Card
Having a poor credit rating can seriously limit your choices of credit cards. Most credit card companies are likely to turn down your applications, making things tough for you at a time when you most need a credit card. Fortunately though, thats not the end of it as you have another option of bad credit cards. Naturally, this is a temporary solution until you can get back on your feet. Bad credit cards can also be used to help you improve your credit score, as long as you pay your credit card bills on time, that is. The only drawback to this would obviously be the higher than usual APR interests.
Nevertheless, if you are willing to provide collateral to the credit card company, you may qualify for a secured bad credit card with a lower APR. This way, you can still earn interests on your collateral, and simultaneously enjoy good rates. The downside is, you may be charged other fees such as annual fees or start up fees.
Before you apply for a bad credit card, it is prudent to do your homework first. As bad credit cards are usually offered to those with poor credit ratings, the APR would unlikely be low. Thus, comparing the various offers of bad credit cards out there would be a wise move.
One of the primary factors of consideration includes the upfront fees that credit card companies would charge you. In order to make a wise evaluation, its best that you have a plan to pay off your debt before your interests snowball. Other factors that you can use to help you make a better decision would be to analyze the reward programs that your bad credit card can offer. If you are entitled for retail discounts at specific retail stores when you charge to your bad credit card, this would be even more enticing.
With all these factors to consider, it is clear that you should look around before you apply for a bad credit card. Compare and contrast the various fees and rates of the candidate companies. Only after careful consideration should you take the next move and submit your application.