What You Should Know About Using Your Credit Cards
Today, almost everyone is in possession of one or more credit cards. But does everyone understand how the credit cards should be used? ; doesnt seem so. Some credit card holders only know how to spend on their credit cards till the credit limit is reached. Others know only about using credit cards for shopping and bill payments. Still others are too afraid to use their credit card. A lot many are unaware about the ways to protect their credit cards.
So what is it that you should know about using credit cards?
The first thing is the fact that whenever you use your credit card to make a payment, you are borrowing that amount from someone (credit card supplier in this case). Thus you will need to return this borrowed money to the credit card supplier within a specified period of time failing which you will incur a late fees and interest on the borrowed amount. So, you should be careful about your credit card payments. Besides the late fee and interest, they also affect your credit rating and we know how important the credit rating is. A bad credit rating can lead to rejection of mortgage applications, loans, subsequent credit cards and even a job application. You should also make it a point never to exceed 70-75% of the credit limit on your credit card. Not only does this shield you from getting into a credit card debt trap but also protects your credit rating.
Credit cards need protection against fraud and every credit card user should be aware of the ways to protect their credit card(s). There are generally a set of very simple precautions that the credit card holder need to follow. All the credit card companies supply instructions to this effect at the time of credit card delivery. These include things like signing at the back of credit card, reporting theft, PINPassword protection etc.
Besides the security related instructions, its also important to read through the instructions related to the benefits on your credit card in order to realize the full potential of your credit card. These include discounts on shopping, travel, car rentals etc. Then there are cash back options as well which have become very popular lately. There are some really good benefits for travelers too. These include things like free travel insurance and baggage protection. Besides the regular benefits, the credit card suppliers generally include some joining benefits too for the new customers. The joining benefits are generally in the form of discount vouchers.
Another important thing to note is the various kinds of fees and commissions charged by your credit card supplier. Besides the annual fees and APR there are other services too which attract a fee or commission e.g. there is a fee associated with cash withdrawals; similarly there is a commission associated with foreign exchange transactions. All these charges are clearly mentioned in the instructions booklet that you receive with your credit card and any changes to these are separately communicated by the credit card company.
Credit card suppliers keep coming up with a lot of different offers throughout the year. Be on the lookout for these offers. Some of them might be of interest to you. Generally, you will receive intimation about these offers at your billing address or your email address too.
Almost all credit card companies have a membership rewards program too wherein you earn points for any payments made using your credit card. Once you have accumulated enough points, you can exchange them for free gifts. Very often the catalogue of these gifts is also supplied at the time of you joining the membership reward programs. Its important to note that there might sometimes be an annual fee associated with the membership rewards program.
So just learn more about your credit card and make full use of its capability.
Getting a Handle on Credit Cards
If you were one of the many Americans who, in 2006, managed to wrack up a total of more than 2.38 trillion in consumer debt, of which 875 billion of this consumer debt was defined as revolving credit debt, you are not alone. Even with all this documented debt, getting a handle on your credit cards would not impossible. It is not even especially difficult, since many of the steps are well-defined, but the process does take work and determination. By educating yourself on the steps that can be taken in order to get a handle on your credit cards, you are taking a step in the right direction.
While many people are aware of the advantages that come from using credit cards, such as the quick and easy use, there are some disadvantages to these plastic lifesavers if they are not used correctly. In order to get a handle on your credit cards, you first need to be aware of the less desirable features of credit cards and how you can use education in order to limit these credit card nuisances. Credit cards are meant to be used to aid individuals but, at the same time, they do not need to be used constantly and as a person’s only source of payment.
Did you know that if a person paid, using the average credit card debt for a person, just the minimum payment that is scheduled by the credit card company every month, it would take more than thirty years to pay off this debt? In addition to the time it would take to clear this credit card debt, there would also be a great deal of interest tacked on to the total of the bill. Individuals can help themselves more than they know by being aware of the interest percentage that they are responsible for paying on their individual credit cards, since many credit cards will differ in this percentage, as well as by paying more than the minimum payments. Obviously if a person is not paying more than their minimum payment and it is taking a long time to pay off their debt, they are not going to feel as though they have a handle on their credit cards or on, to some degree, their life.
It also would help dramatically for individuals to pay off the full balance of their credit cards each month whenever possible. When account holders make it a point to not use their credit cards as magic payment devices, and to put on the card only what they can pay off each month any time that it is possible, they will be able to get a strong handle on their credit cards. Obviously emergencies come up from time to time, and in these cases credit cards can truly be lifelines for many people. However, when these situations come up, it is important for account holders to remember that they will benefit greatly from paying an amount higher than the minimum payment, which would result in the account holder being debt-free sooner.
Many people, including roughly eighty percent of students, actually charge normal month-to-month necessities on their credit cards. These items include food, clothes, toiletries and other such items. When individuals can do so, it would be important for them not to use their credit cards for these purchases. The previously listed items are those that are standard monthly payments. When individuals plan for these purchases each month, they can budget it in to their financial plans. There is no reason for them to additionally pay credit card interest on these purchases by using their credit cards.
Everything About 0% Intro Rate Credit Cards
Tired of reading review after review about 0% APR intro rate credit cards? Having no luck when it comes to finding an all-in-one-review about 0% APR intro rate credit cards? Confused with what youve read so far about 0% APR intro rate credit cards because everything seems to be contradictory? Well, look no more because this article is indeed what youre looking for.
In here, youll learn everything you want to know about 0% APR intro rate credit cards. In this article, you may also discover more than you bargained about 0% APR intro rate credit cards in a good way, of course. Ready for Lesson Number One about 0% APR intro rate credit cards? Well, here goes.
Its True Yes, 0% APR intro rate credit cards do exist and if we have our way about it, youll be one of the lucky people to qualify for a 0% APR intro rate credit cards.
The Application Process Applying for any credit card, whether its for 0% APR intro rate credit cards or for credit cards offering reward points is always a tad difficult so dont expect overnight success, especially since youre angling for 0% APR intro rates.
The application process for a 0% APR intro rate credit card starts with submitting the necessary documents this is SOP for all credit card applications that would substantiate your contact details and give them an overview about your present financial status. Upon submission of the usual documents, depending on your income level and credit reputation, you may be contacted by the credit company and asked to submit additional documents.
The Qualifications for 0% APR intro rate credit cards Basically, if you want to have 0% APR intro rate, you must have a squeaky clean credit reputation. That means having a reputation of paying debts promptly, not owing too much from the bank, not having high balances on your other credit cards, not having too much mortgages under your name and not having so many people requiring a credit check on you.
If youre not sure whether you qualify for a 0% APR intro rate credit card, simply approach the nearest credit bureau and request for a copy of your credit report. The details in your credit report can easily tell you if youve a good shot of owning a 0% APR intro rate credit card or not. People with FICO scores equal to 650 or more are more or less guaranteed of having their application approved.
Ever Receive A Credit Card In The Mail?
Federal law prohibits issuers from sending you a card you didn’t ask for. However, an issuer can send you a renewal or substitute card without your request. Issuers also may send you an application or a solicitation, or ask you by phone if you want a card – and, if you say yes, they may send you one.
Cardholder Protections
Federal law protects your use of credit cards.
Prompt Credit for Payment. An issuer must credit your account the day payment is received. The exceptions are if the payment is not made according to the creditor’s requirements, or the delay in crediting your account won’t result in a charge.
To help avoid finance charges, follow the issuer’s mailing instructions. Payments sent to the wrong address could delay crediting your account for up to five days. If you misplace your payment envelope, look for the payment address on your billing statement or call the issuer.
Refunds of Credit Balances. When you make a return or pay more than the total balance at present, you can keep the credit on your account or write your issuer for a refund – if it’s more than a pound. A refund must be issued within seven business days of receiving your request. If a credit stays on your account for more than six months, the issuer must make a good faith effort to send you a refund.
Errors on Your Bill. Issuers must follow rules for promptly correcting billing errors. You’ll get a statement outlining these rules when you open an account and at least once a year. In fact, many issuers include a summary of these rights on your bills.
If you find a mistake on your bill, you can dispute the charge and withhold payment on that amount while the charge is being investigated. The error might be a charge for the wrong amount, for something you didn’t accept, or for an item that wasn’t delivered as agreed. Of course, you still have to pay any part of the bill that’s not in dispute, including finance and other charges.
If you decide to dispute a charge:
Write to the creditor at the address indicated on your statement for “billing inquiries.” Include your name, address, account number, and a description of the error.
Send your letter soon. It must reach the creditor within 60 days after the first bill containing the error was mailed to you.
The creditor must acknowledge your complaint in writing within 30 days of receipt, unless the problem has been resolved. At the latest, the dispute must be resolved within two billing cycles, but not more than 90 days.
Unauthorized Charges. If your card is used without your permission, you can be held responsible for up to 50 per card.
If you report the loss before the card is used, you can’t be held responsible for any unauthorized charges. If a thief uses your card before you report it missing, the most you’ll owe for unauthorized charges is 50.
To minimize your liability, report the loss as soon as possible. Some issuers have 24-hour toll-free telephone numbers to accept emergency information. It’s a good idea to follow-up with a letter to the issuer – include your account number, the date you noticed your card missing, and the date you reported the loss.
Disputes about Merchandise or Services. You can dispute charges for unsatisfactory goods or services. To do so, you must:
have made the purchase in your home state or within 100 miles of your current billing address. The charge must be for more than 50. (These limitations don’t apply if the seller also is the card issuer or if a special business relationship exists between the seller and the card issuer.) and,
first make a good faith effort to resolve the dispute with the seller. No special procedures are required to do so.
If these conditions don’t apply, you may want to consider filing an action in small claims court.
Shopping Tips
Keep these tips in mind when looking for a credit or charge card.
Shop around for the plan that best fits your needs.
Make sure you understand a plan’s terms before you accept the card.
Hold on to receipts to reconcile charges when your bill arrives.
Protect your cards and account numbers to prevent unauthorized use. Draw a line through blank spaces on charge slips so the amount can’t be changed. Tear up carbons.
Keep a record – in a safe place separate from your cards – of your account numbers, expiration dates and the phone numbers of each issuer to report a loss quickly.
Carry only the cards you think you’ll use.
