Credit Repair

Six Credit Card Tips To Maintain A Good Credit Standing

Though the latest changes in the credit card laws have made things a little easier for credit card holders, especially by shielding against sudden increases in interest rates, it fails to provide complete protection to consumers. Following are six valuable credit card tips that you must follow in order to maintain good credit worthiness. You just have to stick by the rules and implement the right strategies in order to qualify for the best deals. Here’s how to go about it.

Reduce Your Credit-To-Debt Ratio

It is very important for you to keep in mind that credit utilization is one of those most important factors that determine your FICO score. As per the rules, thirty percent of your credit score depends on how low your credit-to-debt ratio is. That is the reason why it is always advised never to use more than thirty percent of your allotted credit. Besides that, in order to keep things smoother, you must also pay down your charges in full every month. This is one of the most important credit card tips that can give a significant boost to your credit score, which can eventually help you qualify for lower rates.

Never Ignore The Notices Sent By Your Credit Card Companies

Credit card companies often send notices to their customers from time to time. You are strongly recommended to read those notices thoroughly. For example, as per the new laws, it has now become mandatory for issuers to send notices to consumers at least forty-five days in advance before increasing the current rates. It means if you ignore those notices, you may get surprised seeing there is a sudden increase in the interest rate charged on your credit cards. So, the next time when you get such notices, make sure you review the same thoroughly and understand what those notices are all about. The more informed you are, the better you can plan your future course of actions. For example, you can cancel your cards when you find out that the rates are going to increase from the next month.

Monitor The Information On Your Credit Reports

While you follow the above credit card tips, it is also important for you to monitor the records on your credit reports frequently, at least every four to six months. Many times, the entries are not recorded correctly, which can adversely affect your FICO score. Therefore, if you want to protect your credit worthiness, you must regularly monitor your credit reports. If find some errors, get them fixed immediately.

Get Cards With Higher Credit Limit

Credit cards with higher credit limits should be your preferred choice, not because it allows you to spend more, but because it reduces the possibility of exceeding or overusing your credit limit. However, it is important to note that higher credit limit is offered to only those cardholders who have excellent credit score. Therefore, make sure you follow the above credit card tips to increase and protect your credit score.

Never Let Your Cards Sit Idle

If you have a credit card, use it. If you do not need to use it, do not have it; cancel it. The simple reasoning behind this is that most companies these days also charge an inactivity fee on those accounts that are not actively used. So, the best strategy is to use the card regularly at least for smaller (but necessary) purchases and pay off the balances in full every month. This way, you do not just avoid the inactivity fee but it also helps you build a more impressive credit history and a healthier credit report.

Use A Reward Credit Card Very Carefully

It is important to note that companies frequently change the terms and conditions regarding the reward programs that they offer on different credit cards. However, as per the laws, it is mandatory for them to send notices regarding the same through mails in advance. Therefore, make sure you read those mails thoroughly. Most of the times consumers end up paying heavily for their unawareness.

When you follow all these credit card tips, you do not only build and protect your credit score, but you also qualify for better deals and make the best use of the altercative offers coming your way.

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Posted in Credit History, Credit Repair | 2 Comments »

2 Responses to “Six Credit Card Tips To Maintain A Good Credit Standing”

  1. kelvin says:

    A knowledgeable article for persons using credit cards. There are several changes have been made in the laws now a days to become more customer friendly and if you follow these rules & restrictions you will surely get a good credit rating. The most important factor in determining your rating is your spending and payment per month. This ratio is an important factor, it is advisable to use less and pay more to increase your rating. This in turn can give you credit on low rate of interest. You will be notified by your card offering company if they change any rate of interest, be sure not to ignore these notifications. You can go for the cancellation of your card if you are not satisfied with the interest rates. Monitor the ratings done by different agencies on your credit. Prefer to take the card in which you will be getting the maximum limit as higher limits reduces the chances of over spending. But you will get this card if you maintain a good credit history. Make sure to use your cards regularly as this will save you from charging for inactivity. Monitor closely the rewards plans offered by issuing companies.

  2. macc says:

    An interesting topic taken up and it will help the readers in obtaining a good credit rating.

    The things have been much easier as per prevailing rules and it does not allow credit issuer to increase the rate of interest at once without the prejudice of the customer. You can build a good credit rating by following some simple measures. Firstly you have to make a reduction in to your payment and expenses ratio. Your total used credit in a month effects your credit score. Always go thoroughly through the notices sent by the issuers as there could be an intimation of increasing the rate of interest in case of default in the payments. Understanding these notifications will help you planning your future course of actions. Go through your credit reports every month and carefully see the information provided therein if you found any discrepancy then get it rectified. Try to get the cards which offer a high limit as it will maintain your spending limits and will reduce the chances of getting over charged for exceeding limit. Try to use your cards on regular basis and no uses also reflects the same charges, better to get it canceled .

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