The Top Three Points to Better Credit Card Management
A credit card comes with a certain set of responsibilities. It is up to you to understand the terms and conditions of your credit card so that you can maintain your card and protect your credit score at the same time.
The bottom line is that many consumers simply fail to carefully read and understand the terms and conditions of their credit cards, which only hurts them (and their credit score) in the end. Although the new credit card legislation recently signed into law by President Obama will certainly go a long way in protecting consumers, it still comes down to personal responsibility.
And the best way to remain in control of your credit is to simply understand it.
What You Need to Understand about your Credit Card:
- Your APR – You certainly can’t manage your credit card effectively if you don’t know you card’s APR. If you have an introductory rate, you need to pay attention to how long it will last, and certainly what the APR will be once the introductory period has ended. Also, keep an eye on the APRs of other, competitive credit cards to make sure you are always getting the best rate. If not, contact your creditor and ask for a lower interest rate; if they refuse your request, search for another credit card with a better APR so that you’re always ahead of the game.
- Your statement – Your statement should be read carefully, every month – no exceptions! Countless Americans lose money every year because of inaccuracies on their statements that they simply never caught. Keep all credit card receipts and use them to check your statement each month. Also, pay close attention to any other types of fees, as well as past payments, to make sure they appear accurately, as well.
- Your billing cycle – Your billing cycle is crucial to your payments, your interest rate and, most of all, your credit score. Make sure you are aware of your credit card’s billing cycle, as well as the due date for your next payment. Knowing this information will keep you from forgetting to make payments, and it will also ensure that you make your payments on time, each and every month.
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