Some credit card tips

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By AdFeatures | Tuesday, June 26, 2012, 16:42

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There are literally hundreds of different credit cards that are issued by banks, stores and credit card companies so when you compare credit cards in order to find the best one for you, you might need a little help, so here are a few credit card tips.

When you are looking for a good credit card it is advisable to look for the one that has the lowest interest rate in terms of APR and does not charge any monthly fees. You should also look at the amount it changes for such items as late payments and the interest free periods that are offered. Some cards offer zero interest rates for periods of a year or more on balance transfers, and some on balance transfers and purchases.

Do not hold too many credit cards. Sometimes just one is sufficient, but there are situations when several cards are useful with each card being used for a different purpose. For instance you might use a cashback card for your general shopping and clear your balance every month in order to make the best use of the cashback perk. You might use a zero interest balance transfer card to manage a particular debt which you can clear within the interest free period; and you might use a store card in order to access special in-store offers and again clear your balance every month.

Do not make numerous card applications. Each time you make one a credit search will be recorded in your credit history, and if the credit card company considers that excessive number of searches have been made, then your credit rating might be downgraded.

Where possible you should repay the balance every month (except where you are using a balance transfer card to manage a debt). Never miss a payment and never make a late payment. The former will have a detrimental impact on your credit record and the latter will incur a late payment fee.

Always check your monthly statement and make sure that there are no errors on it. It is rare for errors to be made, and most people who report them find subsequently that the mistake was theirs; generally they either forgot about the payment or the payment was legitimate but recorded as being made to a company with a different name, however if you are in doubt always contact the credit card company.

If possible never use your credit card to withdraw cash from an ATM or cash machine. If you do then interest will be charged from the moment you withdraw the cash and the rate of interest will be punitively high. Furthermore, unless you repay your balance in full, then this will be the last debt to which the credit card company credits any of your repayments, which means that you may be stuck with a high interest debt on your card for some time.

Finally, never write down your PIN. If your card is every used fraudulently you will be covered by the card issuer in all circumstances other than those where your PIN was obtained because you recorded it somewhere. If you really have a poor memory and must write it down, then make sure that you do so in something entirely unrelated to your finances, say in the pages of a book in your bookshelf.

      

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