First, keep only the credit cards you really need. If you already have credit cards or plan to apply for new ones, be sure to read the fine print on the agreement. Credit card companies will slip details into the agreement that aren't easily noticed. Read every word, and call customer service if something seems too vague.
Once you start using your cards, keep an eye on your interest rates. You might be paying a punitive rate if you've made late payments, or an inflated interest rate if you have cash advances from your credit card. Be clear about which types of charges incur interest rates above your base rate. And if you see that your interest rate has gone up without explanation, call your card company to ask why. They are usually very helpful in explaining charges, and will negotiate better terms with you if you stick to your guns (and possibly threaten to take your business to one of their competitors). You can also ask the card company if they will let you opt out of the higher interest rate, but this means that you can only pay off the balance of your card at the previous rate, not make new charges.
It should go without saying, but do pay your bills on time. Earlier is even better. Some cards start racking up late fees if you're even one day late with the payment ? ouch. Those fees are on the rise, too. It's best to pay credit card bills as soon as you get them.
Don't neglect your other bills, either. You don't want bruises on your credit score because you didn't pay your bills on time. Reports of default on your credit report can cause your credit card rates to rise. To be safe, check to see if you can set up automatic online payments for your bills. This will ensure that your payments are made in full, on time, every month. (Just be aware that fees sometimes apply for this method of payment.)
And if you're a good customer who makes timely payment, don't forget to call your credit card company to request better terms. Consider how much delinquent debt there is in America right now, thanks to the sub-prime mortgage crisis. Creditors are reporting record defaults. Your credit card issuer should value good customers. Let them know that you value good service. Competition is stiff in the credit card world, and they will want to keep your business. As long as your demands are reasonable, the card companies should agree.
If 2007 took a toll on your finances, you're not alone. But with a fresh perspective and a few new habits, you can shine up your credit in the new year.
The dawn of the New Year is a point when individuals are most likely to embrace an extremely hopeful approach to their future and think about the resolutions they have promised themselves and also about the January sale offers to be had. The shops become crammed with thousands of customers hunting for offers and mind-blowing deals on all sorts of items from shoes to furnishings and electrical. People can pick-up a variety of items for hugely reduced prices as shops radically cut their prices on a good deal of their stock to make way for the new spring lines.
The trouble is that lots of people have most likely gone into debt on their credit cards over Christmas and the attraction of the January sales might make them descend more into debt. However, if you plan to have a big blow-out during the January Sales then it might pay to look for a better credit card, or you could think about transferring any debt accumulated over the Christmas and New Year onto a 0% balance card to give a breather to repay the debt, and thus remove some of the worry of overspending.
If you will be buying items using plastic during the January Sales, then it is crucial to evaluate how much you will be saving in buying the bargains against how much you will essentially end up paying back to your credit card company. If the card has a high interest rate then the benefits of the sale price on the wares you purchased during the sales will in all likelihood be cancelled out by your repayments. So make sure you sign up for a credit card that will offer you with the best rate and perhaps even offer you some incentives, such as cash back or air miles to ensure that your New Year is not a gloomy one.
Both Debbie Dragon & Helen Stevens are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Debbie Dragon has sinced written about articles on various topics from Finances, Credit Cards and Kitchen Home Improvement. If you would like more more information on how to choose the right , visit CreditorWeb.com.. Debbie Dragon's top article generates over 165000 views. to your Favourites.
Helen Stevens has sinced written about articles on various topics from The Internet, Debts Loans and Auto Insurance. Helen is a dedicated author writing about Great value shopping on behalf of . Helen Stevens's top article generates over 110000 views. to your Favourites.