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- Use credit cards wisely. Do not use a credit card like a bank. Bank loans are ultimately cheaper at 6-12 %, depending on the purpose of the loan. Credit cards can end up being up to 22% in addition to added late fees. It is better to consider a credit card for large items that can be paid for by the end of the month, to track your transactions, or to protect yourself (because credit card companies take liability for a stolen credit card’s charges over 50.00 to 200.00) during travel or for internet purchases.
- Let credit cards earn you money, not cost you money. Find a credit card that offers rewards, perhaps best — cash rewards, and then charge all your monthly expenses WITHIN your monthly budget and watch how you earn money rewards on payments you have to make anyway. A rewards card worth checking out is the Discover® More Card which gives you $50 cash back bonus plus 5% on purchases in popular categories! Buy your groceries, your gas, your medicines or pay your oil bill, your rent, your car payment — all with your credit card. You have a list of your transactions and make money to boot.
- Consider using a prepaid credit card, such as a Prepaid Visa RushCard
The advantages of this card include: – No credit check. Instant approval. Plus you can shop online, pay bills, and use ATMs with it.
- If you have a low credit rating, build back your credit by applying for Credit Cards for people with Less Than perfect credit at CreditCards.com
- Be careful about using your credit card overseas. Some companies may charge you processing fees or extra fees for withdrawals or transfers made from overseas ATMs. They may also not give you the best exchange rate. Look for companies like Capital One that only charges 1% for conversions fees.
- Be savvy about paying your credit cards debt off.
- If you can’t use savings, consider using a home equity loan. Home equity loans usually cost 6% or 7% interest, which can be deducted from your taxable income.
- If you have several cards with debt, be sure to pay off the card with the highest interest rate first.
- Don’t wait to pay your credit card payment on the due date. Credit card companies add interest to your balance daily and compound it. You save money if you pay early or pay half the amount mid month and the rest at the end of the month.
- Be practical when using a credit card.
- Check your receipts against your credit card statement. Yes, companies can make mistakes, or someone may have your credit card number.
- It’s best to have no more than two credit cards. Actually, the more cards you have, the more opportunity for debt acquisition that affects your credit rating poorly.
- Cancel cards you never use or use rarely as short term or no activity on a card actually brings your credit rating down.
- Look for advantages when searching for a credit card:
- Make sure you get a good interest rate by comparison shopping. Check the interest rate to make sure it is not tiered, is a fixed—not a variable rate, and that after the introductory offer the rate doesn’t go sky high. A good rate today would be between 9% and 12%. Check bankrate.com to comparison shop.
- Look to see that you have at least a 25 day grace period to pay without incurring a late fee. Also make sure that if you carry a balance from the previous month that you have a grace period for new purchases.
- Make sure the finance charge is calculated on a one-cycle billing plan and that there is no minimum finance charge.
- Give preference to cards that give you incentives like cash rewards or frequent flier miles.
- If your card is lost or stolen, you should not have to pay more than 50.00—so no need to buy any insurance on your card.
- Look for no-fee cards!
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