The Beginning of the Credit Card Era
In 1951, Diners Club issued the first credit card to 200 customers who could use it at 27 restaurants in New York City. From that modest beginning, credit cards have become an indispensable part of modern life. Consumers rely on credit cards to help them achieve their lifestyle goals by letting them take advantage of special bargains, spread payments out over several months, and provide cash in emergencies. Credit cards have become so widespread that they are often accepted as a piece of primary identification.
Getting the most from your credit cards involves four main steps:
Use your credit cards wisely.
Protect yourself against fraud.
Review your credit history regularly.
Get the right card for your needs.
Use your credit cards wisely
Follow these simple tips to get the most from your card.
Tips:
Pay your credit card bills on time. This is the single most important thing you can do to preserve and enhance your credit rating. Always pay at least your minimum payment and allow time for your payment to reach the company if you are using the mail.
If possible, pay off your balance in full each month. If this is not possible, then make as large a payment as you can comfortably afford. Paying off or paying down your balance is a sound financial move-one that will save you money on interest charges.
If you can't pay off your balance in full, then slow down on your credit card use for the next while. Take time to step back and have a careful look at how much you earn and how much you spend each month. A little budgeting can save you big money down the road.
Check your statement carefully each month. Review your statement carefully. Do all the charges look correct? Have any required credits been applied? Are there any unusual or unexpected charges? Your credit card company will correct legitimate errors, but only if you bring them to their attention in a timely manner before you pay your bill.
Transfer your balance to a card with a lower interest rate. If you have two or more credit cards with outstanding balances, consider moving the outstanding balances to the card with the lowest interest rate. You will save money each month and simplify your record keeping by receiving only one bill.
Negotiate for a lower rate with your credit card company. If you have a good credit history, you are a valuable asset to your credit card company. Call them and seek ways to lower your interest rate. This is often possible, but never advertised. If the interest rate you are currently paying is very high, imply you may cancel the card and go with a competitor unless they adjust your rate downward. It doesn't hurt to ask, and you may be surprised at the results.
Protect yourself against fraud
While credit card fraud is a problem, here are a few simple steps you can take to greatly reduce the risk of becoming a victim.
Tips:
Sign new cards immediately. When you receive your new or replacement card in the mail, sign it, in ink, right away. If it is a replacement card, destroy the old card by cutting it into many small pieces.
Shred old credit card receipts. You can purchase an inexpensive paper shredder at an office supply store. All old receipts with your credit card number and any unneeded documents with your social insurance number or other sensitive personal information should be shredded before disposal. This prevents the common practice of criminals going through the trash to find receipts and stealing your identity
Never fax your credit card number. Your credit card number can lie for hours in the fax basket at the other end. Anyone passing by can record your number and begin to use your card number fraudulently. It is even possible for criminals to intercept your credit card number while the fax is in transmission.
Use caution when giving your credit card number out on the phone or on the Internet. Only give out your credit card number on telephone calls you initiate to business or organizations you trust. Never give your number out to callers who call unannounced, no matter how legitimate the call sounds.
On the Internet, look for an Internet address that begins https:\. The "s" indicates that it is a secure connection and a small padlock symbol should appear in the bottom right hand corner of your screen, indicating it is safe to transmit your credit card number.
Call your credit card company instantly if you suspect trouble. All credit card companies have 24 hour lost and stolen help lines. If you lose your wallet or purse or have it stolen, call without delay! Much fraud happens within the first hour or two, before the victim realizes the cards are missing. Your credit card company will block your cards from being used and stop you from being responsible for any charges thieves incur.
Take advantage of any security features your card offers. Many newer cards have the option of including your photograph on the card. This is excellent protection and is highly recommended.
Review your credit history regularly
After you have obtained the best credit card, and are using it wisely, review your credit history on a regular basis. This helps ensure your history is accurate and that any issues have been resolved to your satisfaction.
North America has three national credit-reporting bureaus. Your credit rating is held at one or more of these bureaus. When checking on your rating, be sure to contact all three, as your rating may be held on file at more than one bureau. The three national credit bureaus are Equifax, Experian, and Trans Union. Check the Yellow Pages, under Credit to find the numbers in your area.
Get the right card
With all the choices in cards available, chances are good,very good, you can find a better card for your needs. Today's cards can save you money, offer better features, and even support a cause you believe in. Here are some tips on finding the right card and where to check that you have the best card for your needs.
Tips:
4 Be alert for companies offering a great interest rate for transferring your existing balance to their card. Usually these rates are only in effect for a short time, often six months. At the end of this time, the rate can revert to a much higher permanent rate. Keep your eye on the Annual Percentage Rate (APR); this is the figure that counts in the long run.
Lower is better: read the fine print and find the Annual Percentage Rate (APR). This is the interest rate the companies charge you if you carry a balance. You want the lowest rate possible; as each percentage point drop will save you money on the months you have an outstanding balance.
Nothing can be better: Try for a credit card that does not charge an annual fee. Many credit cards charge you a fee each year to use their cards. While this may be offset by other benefits the card may offer, you can find cards that do not charge this annual fee. Why pay for the privilege of using a credit card when you don't have to?
Explore the options: Today's cards offer a wide range of excellent features, including frequent flier points, programs that bank points toward a new car, and cards that support charitable organizations. Other options worth having include car rental insurance coverage, trip cancellation coverage, and extended warranty coverage.
Colin McDougall is a successful freelance writer providing valuable advice for consumers when applying online for credit cards, student credit cards as well as other personal & mortgage loans. You can visit his sites at http://www.only-the-best-credit-cards-online .com http://www.loans-source.info and http://www.only-secured-credit-cards.com - His numerous articles offer moneysaving tips on a number of topics.
Bank robbery has grown to become a huge problem in... Read More
The average American knows very little about bankruptcy. Most people... Read More
If you're like most people, you probably own at least... Read More
A credit report is basically a file about you kept... Read More
Like me, you've probably been offered a fair old number... Read More
While working through my own debt situation, and helping others... Read More
In addition to the APR (annual percentage rate) and the... Read More
With interest rates rising, low or zero percent credit cards... Read More
Will lenders really love you for having a good credit... Read More
Well now we add CitiGroup and UPS to the Identity... Read More
STUDENT CREDIT CARDS With graduate debt averaging... Read More
Did you apply for a personal loan only to be... Read More
Credit card consolidation is a popular solution for those with... Read More
Have you ever been told you were over your credit... Read More
Let's face it, having credit is no longer a choice.... Read More
Why do some people get offers for pre-approved credit cards... Read More
Establishing credit and wisely managing your credit becomes easier when... Read More
Have you ever looked at your credit card statement? I'm... Read More
"I think money was stolen from my card" or "I... Read More
Most consumers are aware that there are companies that keep... Read More
The economic downturn of the last five years has affected... Read More
Moving money from credit card to credit card to take... Read More
#1 Make sure mistakes aren't hurting your credit.Reviewing your credit... Read More
Mark and Beth, a young married couple in their twenties,... Read More
The process of clearing credit can be laborious and frustrating.... Read More
The all important credit score! It determines the amount of... Read More
As I am not from the US, I had no... Read More
You hear people talk about credit reports all the time... Read More
A check can be considered bad if it is bogus... Read More
Most of us want a good credit report to obtain... Read More
1. Buy clothes at thrift stores. BEFORE you buy them,... Read More
Building a good credit history is important. If you have... Read More
What are the APRs charged by the credit cards in... Read More
What is Credit?Credit is the backbone and the engine behind... Read More
Building a good credit history is important. If you have... Read More
Congress passed the Fair Credit Reporting Act several years ago... Read More
Paying a credit card late fee is the same as... Read More
If you are just entering the world of credit cards,... Read More
Why do some people get offers for pre-approved credit cards... Read More
Sure, there are a lot of problems with credit cards,... Read More
Ok, let's face it, everybody hates high credit card rates,... Read More
Credit Cards can bankrupt you if you let them run... Read More
Today, credit is an indispensable part of our lives. In... Read More
There are a whole variety of different types of credit... Read More
Credit cards have migrated from being hip or convenience product... Read More
Chances are you have received your share of "pre-approved" credit... Read More
TURBO-CHARGED KILLER RATE SAVING INFORMATION!Let's just take a brief moment... Read More
Companies that issue credit cards want to make a profit.... Read More
If you have a bad credit rating, then you might... Read More
Most businesses want to be able to borrow money when... Read More
Having a better credit score not only represents easier access... Read More
Consumers today are up to their eyeballs in debt. And... Read More
It is estimated that billions of dollars in delinquent commercial... Read More
Prepaid debit cards are great financial tools and may be... Read More
Do you have enormous credit card debt? You are certainly... Read More
Owning a credit card can be quite an advantage. Whether... Read More
How do these people get my name? If you have... Read More
What Is Your Credit Rating Now?If you have any charge... Read More
Most consumers are aware that there are companies that keep... Read More
When you apply for credit one of the first things... Read More
Here are some useful tips on using credit cards. Whether... Read More
Review Your Credit Score.Nearly every bank, credit union, and mortgage... Read More
Lenders are quite fussy about what they like to see... Read More
Your credit report is a very powerful report that essential... Read More
If you're like the average person, let me warn you... Read More
Sue is a homeowner and pays her mortgage and other... Read More
Credit |