Although credit card interest rates have been higher than they have throughout the last, few years, it is possible to still score a credit card with a low interest rate – you just have to fight for it.

Here’s how:

• Recent studies have shown that 29 percent of all people who contact their credit card about lowering their interest rate are successful. Although it may not seem like all that much, it begin to sounds much better when you realize that number equals nearly two-thirds.
• Before you begin making phone calls in an attempt to lower your credit card’s interest rate, make sure you are in the position to do so. In other words, if your credit score is strong you will have a much better chance of getting your credit card company to take a moment and listen to your request. If, on the other hand, your credit score isn’t exactly strong, you may want to save yourself the hassle of asking your credit card company to lower your rate.
• Be prepared to flex your muscle. In other words, have a few credit card offers beside you for bargaining power if your credit card company seems unwilling to lower your rate. If you have strong credit and other credit card offers lined up, your creditor may begin to take you more seriously and accommodate your request for a drop in your interest rate.
• If the customer service representative is not receptive to your request, it may pay off to ask to speak to a supervisor. You may have more success talking to a supervisor because they have the authority to make changes a customer service representative may not.
• If all else fails, cancel the card if your credit card company is not willing to accommodate your request. However, before you do this, make sure you have another approved credit card offer wrapped up. Often times, the threat of canceling the card will make the creditor pay more attention to your request.

Wrong!

It may be quite tempting to just give up on your credit, especially if you feel your debts are simply too overwhelming to handle anymore. However, giving up on your credit is never the right decision to make, and here’s why:

• Judgments – Although creditors of unsecured loans such as credit cards and personal loans cannot take away your home, for example, they can take you to court where a judgment against you can be made by a judge. If a creditor wins a judgment against you in court, the court can begin to garnish your wages. Instead, it is best to call your creditor and set up a realistic repayment plan so you can stay on good terms with them. Ignoring the problem will not make it go away; it will simply delay the inevitable.
• Other credit – Your poor credit history can affect you years into the future. In other word, an abandoned credit card today can affect your ability to obtain a home or car loan years down the line. You may have forgotten about your past credit mistakes, but I guarantee you creditors and credit reporting agencies have not.
• Jobs – The job market is tight, and employers are increasingly looking further into their employees’ habits. As a result, it has become more common for employers to look at the credit scores and reports of potential employees. The reason is quite simple: some employers may find a direct correlation between a potential employee’s responsibility and their credit score. A low credit score may raise a red flag with an employer, thereby preventing you from getting that job of your dreams.

If you feel like your credit cards and other loans are simply too much to handle it is best to contact your creditors directly and talk to them about your financial struggles. Most creditors will be willing to work out a more affordable payment plan with you, so it always pays to ask.

• Employers – Your education or ability to do your job may not be the only thing an employer is looking for. In fact, many employers have begun performing credit checks on candidates. They may want to know if you are in debt, if you have any outstanding judgments against you, and if you are able to handle your finances well. And a credit report may be able to answer all of their questions. Because new jobs are harder to come by in today’s economy, employers have begun using interesting methods to narrow down the list of potential candidates, and they may very well use your credit report to do just that.
• Landlords – A home loan isn’t the only time you can expect your credit report to be pulled. Most landlords, in fact, will look at your credit report during the application phase. Landlords must protect themselves from renters who don’t pay their rent, so it is often a smart move to check a potential renter’s credit report.
• Insurer – What many people don’t realize is that their insurance rates are often dependent upon their credit score. From homeowner’s insurance and auto insurance to even renters insurance, rates can vary widely based on an individual’s credit score. In other words, you may be paying much more in insurance rates than someone the same age as you and in the same circumstance as you, simply because your credit score is lower.
• Cell phone carriers – Before you sign an agreement with a cell phone carrier, your credit score will likely be checked. If you don’t have good credit, you could be turned down for a cell phone plan. You may also be unable to qualify for the best plan rates or even pay a deposit.

There are a number of ways to begin establishing a credit score so you can enjoy low rates on everything from credit cards to home loans.

If you are starting from scratch, it is probably best to follow these steps:

• Apply for a secured credit card – We like secured credit cards because individuals with no credit or poor credit can use them to establish a strong credit history. Here’s how a secured credit card works: a secured credit card requires a deposit, which is usually equal to your credit limit. In other words, if you accept a secured credit card with a $500 credit limit you will likely be required to hand over a deposit for $500, as well. The deposit is held by the creditor and only used if you fail to pay on your credit card. If you cancel the card or transfer the card into an unsecured card, you will receive your deposit back, in full. Once you begin establishing a history with the secured credit card company they may either reduce your deposit amount or increase your credit limit. Make sure the company you choose reports your monthly payments to the credit reporting agencies. Some secured credit card companies report only quarterly, so it is important to find a creditor who reports on a monthly basis.
• Apply for a retail credit card – Although retail credit cards are do not come highly recommended by financial experts because of their high interest rates and fees, they are much easier to get for individuals with little to no credit. With that said, you may find that a retail credit card is a good tool for establishing credit. Just be careful and pay off your balance in full, each month, as to avoid costly finance charges.
• Apply for a college credit card – If you are a college student, you may be eligible for one of the many college student credit cards. Most of these cards are designed for individuals with little to no credit history, making them ideal for college students. Be careful, however, as these cards often come with high interest rates.

• Rework your budget – Your budget will, no doubt, look dramatically different when unemployed that it did while you were employed. Once you have ascertained your monthly unemployment compensation and severance package, it is time to rework your budget and account for the loss of income. You may need to cancel your weekly dinner out or cancel your cable to make ends meet, but it is important to make a realistic budget while unemployed so you don’t end up in financial peril while you look for a new job.
• Consider minimum payments – Although most financial planners will tell you to always pay more than the minimum payment on your credit cards, now is not the time to do so. Send in the minimum payment each month until you secure a new job. Although paying just the minimum payment won’t do anything for your balances, it will keep your credit score intact, which is the most important thing to worry about when unemployed.
• Call your creditors – If your budget while unemployed does not permit you to make the full payments on your debts, it is crucial that you contact your creditors before missing any payments. Most creditors are more than willing to work with you to find a resolution, so don’t ignore your financial problems during this time. It is important to note, however, that once you make a new financial payment plan with your creditor you must keep up with your end of the bargain; otherwise, the creditor will not be so kind to work with you in the future. In other words, don’t agree to a payment plan that you cannot realistically afford.

• Begin by explaining the nuts and bolts of credit. How to get it, what you need to get it, the importance of it, and the many ways in which it helps people. Don’t assume that your teenager understands basic, financial topics. Start from the beginning and encourage him or her to ask many questions.
• Lead by example, and show your teenager how you use credit and the many ways it helps your family achieve goals and manage your household. Show your teenager your credit card bills and explain the notion of interest rates and how a simple purchase can end up costing you much, much more in the long run if you fail to pay it off in a reasonable amount of time.
• Explain to your teenager the many ways he or she can get into deep credit card trouble if the credit is not managed in a responsible fashion. If you know other people who have suffered from credit troubles, explain the story to your teenager. Often times, simply having a real-life situation to refer to will allow your teenager to better understand the consequences of irresponsible spending.
• Allow your teenager to “experiment” with credit card spending by using a prepaid credit card. Allow him or her to understand how to stay on budget and to spend within his or her means.
• If you plan on sending your teenager to college with a credit card, set up very specific spending limits and let him or her know you will be monitoring the spending on the credit card at all times. Because of the changes in the credit card industry since the inception of the CARD Act in 2009, you may find it necessary to co-sign for a credit card for your teenager, so take the time to educate your teenager so he or she fully understands the ins and outs of credit and credit cards.

The secret is that there is no secret! Smart credit card spenders simply live by certain rules; rules that, when followed, allow them to enjoy the many benefits of credit cards, without dealing with many of the downsides. Here are a few examples:

1. Spend only what you have – If you don’t have the money for a new sweater, for example, don’t buy it. Sounds pretty simple, doesn’t it? But the fact of the matter is that millions of Americans forget this basic concept of “spending within your means.” We have become a society of instant gratification, and we all assume we can have what we want, when we want it. But this just isn’t realistic, and it is the reason why American households have, on average, $13,000 in credit card debt. Reevaluate your wants and needs and get your priorities straight before you pick up a credit card.
2. Pay off your balances, in full, each month – This rule, although it goes along with rule number one, is very important because it allows smart spenders to reap the rewards of credit cards without paying costly finance charges. If you think you snagged a deal on those $49.99 shoes, consider how much you really paid for them after you paid interest on them for six months. Not such a great deal after all, huh? If you don’t want to end up a slave to your credit cards, you must make a promise to pay off your balances, in full each month, with no exceptions.
3. Stay away from retail credit cards – Although retail credit cards will suck many spenders in with their promotions, special shopping days and coupons, the truth of the matter is that there is a very good reason why they can offer such great deals: because they earn so much in finance charges! Simply put, the interest rates and high fees associated with retail cards just don’t make them a common sense choice for today’s credit card spenders.

In short, your credit card company may reject your purchase if they notice anything out of the ordinary about your shopping habits. Here’s what you may need to know:

• Shopping at places you don’t normally shop – For example, if you often shop at a particular drug store, but then switch things up and shop at another one, it may raise a red flag with your credit card company.
• Shopping like a speed demon – If you make several purchases in a short amount of time, this may also raise a red flag with your credit card company. For example, if you make a purchase at your local grocery store, then realize you forgot something and head back in to make another purchase, it may seem odd to your credit card company. Sure, just two purchases probably wouldn’t cause problems, but if you do this a number of times, it certainly will.
• Purchase something really small, and then something really big – Many credit card thieves will make a very small purchase to “test the waters,” so to speak. And then, once they see the credit card is active, they will make a large purchase. Therefore, be careful about purchasing a pack of gum and then immediately purchasing a flat-screen television, for example.
• Shopping far away from home – If you head out on a holiday excursion and use your credit card, your credit card company may be alerted to unusual activity and block your card until they can verify you are, in fact, traveling. It is always best to alert your credit card company before traveling.
• Purchasing things in different areas on the same day – For example, if you fly to Florida, stay there for a layover, and purchase a few things at the airport, only to continue your travel to California and purchase items there, on the same day, your credit card company may find these purchases, in states very far from each other, to be unusual.

Although credit cards are often considered the easy way to spend money when traveling, many travelers have opted to instead pay cash because of the dreaded foreign transaction fees charged by many credit card companies. Luckily, many credit card companies are getting the memo and are now offering credit cards that eliminate foreign transaction fees. In fact, American Express, Chase, Citi and PenFed are now either reducing or eliminating foreign transaction fees, which before may have been as much as three percent of the purchase.

Using a credit card to pay for purchases outside of the county is often a smart choice, as it eliminates the need to exchange currency, figure out the currency exchange rate, and the chance of getting duped into spending more money while overseas.

One of the most popular cards that have eliminated the foreign transaction fee is the Capital One Ventures Rewards Card.

Keep in mind that, when converting currency, most credit cards use each morning’s best market price. So, if you start off on a trip and figure out the foreign currency conversion, you may be surprised to find that you may have exceeded your budget because the exchange rate changed during the course of your trip.

Here are other credit cards with no foreign transaction fees:

• American Express Platinum – Before the American Express Platinum card began their no policy of eliminating foreign transaction fees they charged 2.7 percent. Although this card charges an annual fee of $450, they also offer an airline credit fee in the amount of $200. Most heavy spenders agree that the annual fee for this card is well worth the benefits that it provides, especially for travelers.
• Citi Thank You Premier Card – The Citi Thank You Premier is a new card that features an annual fee of $125, although it is waived during the first year. For individuals who spend $1,000 during the first three months, this credit card rewards them with a bonus of 20,000 “Thank You” points.

Here is what you need to know about wage garnishment:

• Wage garnishment is regulated by state law, although some federal laws may exist when it comes to wage garnishment, as well.
• In general, about 25 percent of your after-taxes wages can be garnished by your creditors. As a result, regardless of how many creditors obtain an order of garnishment from the courts, the total amount of your garnished wages cannot, in general, exceed 25 percent of your after-taxes earnings.
• There are a number of ways to prevent wage garnishment. Contact your creditors and set up a payment plan. Make sure you clearly communicate your desire to pay back your debt, but that you need a more affordable payment plan. Ask your creditor to send you the updated payment plan in writing for your records. Most creditors will agree to a smaller payment each month, provided you keep true to your word and pay every month. If you set up a payment plan and then fail to keep up your end of the deal, expect your creditor to take legal action.
• If the creditor does not agree to a more manageable payment plan, know that you have rights. You have a right to defend yourself in a court proceeding where the creditor is seeking wage garnishment. If you show up to the court date, show the judge your records and explain your attempts to make good on the debt; it is likely the judge will require the creditor to accept your payment plan.
• Keep in mind that wage garnishment is the last resort for most creditors, and you should make every attempt to clear your debt and find a solution to your debt problem before a court proceeding and wage garnishment take place. Cut down on your spending, consolidate your debts, or contact a credit counselor, if necessary.