10 Things You Should Know About Credit Cards
|Terry Rigg is the editor of the Budget Stretcher Newsletter. The
Budget Stretcher Newsletter is published monthly and is loaded with
information that will save you time and money everyday. Go to
http://www.homemoneyhelp.com for more information.
these 10 items may answer some questions you have about using credit
cards. Make sure to check out the link in #6.
using them. Credit cards accounted for 1.3 million Americans filing
bankruptcy in 1998.
you use credit cards pay them off each month. Carrying a balance on
your credit cards could add up to hundreds of dollars each year in
interest and penalties.
you can't pay off your credit card balance each month, pay as much
Every extra dollar you pay over the
interest charges goes toward paying off the principle. Minimum
payments are 90% interest and 10% principle.
Be cautious when obtaining a credit card based on an introductory interest rate.
Introductory interest rates are strictly bait to get you hooked.
After a short period of time the intro rate increases substantially.
Be careful consolidating your credit card debt. If you pay off a credit
card you are going to receive constant offers, either checks in the
mail or special offers, to use that credit card again.
Do not obtain credit card protection. Many credit card companies
offer credit card protection for a fee. This is normally a
percentage of the outstanding balance. According to the Federal
Trade Commission, you are only obligated to pay the first $50
when your credit card is used by someone unauthorized. You could
easily pay several times the $50 for credit card protection in a
Don't keep more that two credit cards. The biggest reason for this
two card rule is that it is easier to keep track of possible errors
and current interest rates with no more than two cards. Some credit
card companies will increase your interest rate without prior
notification. You must look at your statements each month and
inquire about any discrepancies.
mail your credit cards bills at least seven days prior to the due
date. Currently, credit cards companies are allowed to charge a
maximum of $29 for late fees if the bill is not paid on time. With
delays in the mail and processing time once the bill reaches the
credit card company offices, you need at least 7 days to be sure it
is posted on time.
Always protect your credit card numbers from others. Be sure that
you don't allow unauthorized people to see your credit card numbers.
It is very easy to use someone else's credit card, as stores are
very lax in their security of handling credit cards, seldom checking
to see if the signature on the back of the card matches the one on
the credit card form. Never give your credit card number over the
phone unless you know who you are talking to.
#10. Unless you pay the card off each
month, buying recurring items like groceries will only tend to
increase your credit card debt.