Top 5 Credit Card Do’s
Here’s a list of the top 5 things you can do to get the most out of your credit card.
DO: Get Old Debts Under Control
What’s worse than paying interest charges on last month’s purchases? Paying interest charges on last YEAR’S purchases!
If you have a large outstanding balance on your credit card that you want to get under control, consider taking out a line of credit at a much lower interest rate to pay off the balance and then worry about paying off the line of credit. Or even better, transfer the balance to a credit card that offers 0 percent interest on balance transfers for a certain period of time and then make sure you pay it off during that time.
DO: Rack up Reward Points
If you’re good with a budget, set aside a certain amount of cash for your purchases each month, then charge that amount on your card and pay off the full balance before the due date. Set up an automatic payment through your bank if you’re worried about forgetting. Rack up the reward points without paying any interest.
DO: Review Your Bill and Fee
Take a few minutes each month to review your bill. You can save you money by catching fees and charges that shouldn’t be on there. Pay attention to any service fees such as credit card insurance. Often you get free services for the first few months and then companies start charging for them. And scrutinize your annual card fee if you have one. Make sure the fee is worth your card benefits. If you never carry a balance or those points add up to little, you might be tossing $50 or more away every year to get benefits you don’t use.
DO: Use Your Perks
Some cards offer free perks: automobile rental insurance, travel insurance, trip cancellation insurance, etc. These features can end up saving you a lot of money. Call your credit card company and find out if there are programs that you’re not using.
DO: Ask for a Lower Rate
Ask and ye shall receive – well not all the time, but it’s worth a try! If you have good credit and a positive history with your credit card issuer, it’s possible to negotiate a lower rate on your credit card. If you regularly pay off your card a lower rate might not interest you now, but if a money emergency arises, you’ll be glad you be glad you negotiated down your interest rate.