How to make the most out of your Credit Card
Your credit card can act as a catalyst to good credit and the many perks that come along with it. However, used improperly, it can cause quite a headache and can cost you big.
Your first order of business when applying for a credit card is to make sure that you get the most out of your card. In other words, read and re-read the card’s terms and conditions so that you can be sure that you are getting the most bang for your buck, so to speak.
The Problem with Rewards Credit Cards
A good example of someone not making the most out of their credit card is an individual who hunts for the best rewards card around. After all, aren’t the rewards worth their weight in gold? However, that individual who took so much time deciding which rewards card was best for him didn’t stop to see that this particular rewards card also came with a hefty 19 percent interest rate.
In other words, any benefits he could have received in terms of rewards were wiped out the first time he had to pay finance charges on his credit card balance.
Although the new CARD Act has started holding credit card companies responsible for providing their credit card customers with easy-to-read language and fair terms and conditions, the fact of the matter is that many credit card customers still don’t take the time to carefully read the small print that comes along with a credit card offer. And their failure to do that could result in disaster.
Teaser Rates: Are they all they’re cracked up to be?
Another common mistake many credit card customers make is going for the teaser rate but not really examining the promotional rate’s terms and conditions. Sure, it sounds great when a credit card company offers you a promotional rate of 0 percent. But what does that really mean?
Does it cover balance transfers, purchases, or both? How long does the promotional rate last, and are there balance transfer fees associated with transferring your other higher interest rate debts?
If you accept a credit card promotional rate, you must closely examine the terms and conditions under which that promotion is offered to you.
In conclusion, it is ultimately up to you, the consumer, to make the most out of your credit card so that you can enjoy its benefits while also saving money.
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