Posts Tagged ‘best credit card tips’

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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