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.


Custom Search
Bankruptcy

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Bankruptcy
Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?