Credit Card Advice Corner


Credit Card Management


Tips to manage and improve your credit standing.
  • Live within your means and avoid having to resort to your credit card.
  • Pay your credit card bills on time. Paying your credit card on time builds your credit history and enables you to improve your credit score.
  • Pay more than the minimum credit card payment. Since the minimum payment covers just the interest, your outstanding credit card balance still remains the same. Use this credit card calculator to see the effect of paying the minimum.
  • Pay off credit card accounts with the highest interest rates first.
  • Don't apply for new credit cards too soon.
  • Don't always chase lower credit card rates by transferring credit card balances. There are often fees from both banks involved, meaning you pay twice.
  • Know the terms of your credit card agreement and stick to the terms.
  • Avoid credit card extras. Credit card companies are quick to offer additional services such as credit card registration services, insurance, and credit card loss/theft protection. They cost you money and are often unnecessary.
  • Monitor your crdit card statements carefully. Look for unauthorized credit card charges as well as improper fees.
  • Monitor your credit reports. Obtain at least annually copies of your credit reports from the three credit bureaus and review for errors and discrepancies.

More on Credit Cards from the


Advice Corner

Credit Card Info/Basics

Credit card companies use one of several methods to calculate the outstanding credit card balance. The method can make a big difference in the credit card finance charge you’ll pay. Your outstanding credit card balance may be calculated
  • Over one billing cycle or two,
  • Using the adjusted credit card balance, the average daily balance, or the previous balance, and
  • Including or excluding new purchases in the credit card balance.

Minimum credit card finance charge.


Some credit cards have a minimum finance charge. You’ll be charged that minimum even if the calculated amount of your finance charge is less. A minimum finance charge usually applies only when you must pay a finance charge--that is, when you carry over a credit card balance from one billing cycle to the next.
Ads

Credit Card Fees.

Most credit cards charge fees under certain circumstances:
  • Credit Card Annual fee. Charged for having the credit card
  • Cash advance fee. Charged when you use the credit card for a cash advance; may be a flat fee or a percentage of the cash advance
  • Credit Card Balance-transfer fee. Charged when you transfer a balance from another credit card.
  • Credit card Late-payment fee. Charged if your credit card payment is received after the due date
  • Over-the-credit-limit fee. Charged if you go over your credit card limit

Credit Card Cash advance features.

 Some credit cards let you borrow cash in addition to making purchases on credit. Most credit card companies treat these cash advances and your purchases differently. If you plan to use your credit card for cash advances, look for information about:
  • Access. Most credit cards let you use an ATM to get a cash advance. Or the credit card company may send you “checks” that you can write to get the cash advance.
  • APR. The credit card APR for cash advances may be higher than the APR for purchases.
  • Fees. The credit card company may charge a fee in addition to the interest you will pay on the amount advanced.
  • Limits. Some credit cards limit cash advances to a dollar amount or a portion of your credit .
  • How payments are credited. Many credit card companies apply your payments to purchases first and then to cash advances. Read your credit card agreement to learn how your payments will be credited.

Types of credit cards.

 Most credit card companies offer several kinds of cards:
  • Secured credit cards, which require a security deposit. The larger the security deposit, the higher the credit limit. Secured credit cards are usually offered to people who have limited credit records--people who are just starting out or who have had trouble with credit in the past.
  • Regular credit cards, which do not require a security deposit and have just a few features. Most regular credit cards have higher credit limits than secured credit cards but lower credit limits than premium card cards.
  • Premium credit cards (gold, platinum, titanium), which offer higher credit limits and usually have extra features--for example, product warranties, travel insurance, or emergency services.
  • Always compare credit card from several card issuers before making a decision.

Liability limits.

If your credit card is lost or stolen and then is used by someone without your permission your obligation is limited to $50 of those charges. This protection is provided under the federal Truth in Lending Act. Because of this, it is advisable not to buy “credit card insurance” to cover amounts over $50.
If you discover that your credit card is lost or stolen, report it immediately to your credit card company. The company will cancel the credit card so that new purchases cannot be made with it. The company will replace your credit card.
It’s useful to make a list of your crdit card account numbers and the credit card companies’ phone numbers. Keep the list in a safe place other than in your wallet or purse.

Credit Card MarketPlace