Author Janna Herron offers helpful hints on managing your
credit card the smart way. Her first tip is to know where you stand with your
credit report. Knowing this number will affect interest rates and credit limits
when you receive a credit card. Her next tip is to start building your credit
score; a better score means lower interest, which would ultimately save you
money.
After your credit score is good, she then suggests that you
start looking at benefits that you would like your credit card to offer. Such
as other perks to consider: cards with “low
balance transfer fees, cards with low penalty or late fees and specialty cards
such as secured, retail or prepaid cards”.
Afterwards, the credit card holder should then compare
different types of credit card companies to see which credit card dis right for
you. Make sure to read the small print, because a lot of credit cards even come
with perks such as roadside assistance and other miscellaneous items.
If you do happen to
get denied for a credit card, companies are not required to disclose your
credit score, alone with the five top reasons your scoring is bad. If you can’t
get approved, there are some alternatives to getting better credit; you can
either apply for a secured credit card, or become an authorized user on another
person’s credit card.
When you have a credit card, it would be in your best interest
to pay above the minimum; with interest rates so high, prices can really
balloon up from only paying the minimum. Plus, your credit score will raise if
you’re paying above the minimum payment.
In addition, many companies offer benefits and rewards if
you “like” them on social media sites such as Facebook. However, credit cards
can be a threat to your financial security if you don’t keep tabs on it. Make
sure to monitor transactions every few days to make sure nothing is amiss.
Lastly, if you foresee yourself not
being able to make payments, for whatever reason, contact the company. Many
times, creditors will set up a payment plan until you can get back up on your
feet. By following these tips, your credit card will be your friend, instead of the enemy.
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