Update Your Credit Cards to Save Money and Earn Rewards
Posted by: Kris Calusa in Business, tags: BusinessThe housing market is in decline. As a result of all of the bad debt associated with mortgages credit is getting expensive or more difficult to attain (even for individuals who are good credit risks). There’s never been a more important time to make sure that you’re getting the best deals you possibly can with the credit cards that you are carrying. If you’re like me, you carry several different credit cards that you’re pretty happy with. You don’t overuse them, you pay the bill regularly, and you keep the balance at a manageable level, if not always at zero. But are you getting the best deal for your money?
Above I described the responsible use of credit cards, and tens of millions of men and women enjoy the convenience of credit cards year in and year out, sailing along smoothly, taking advantage of the security and flexibility that they offer to ease financial transactions daily. But there’s a problem with this type of behavior: it’s just the type of behavior that credit card issuers love, because as you become complacent with the ease and convenience of your favorite credit cards you also become less inclined to shop and compare the different offerings of credit card issuers, and you’re less likely to find that the credit card that you are carrying isn’t such a great deal!
Award points. Cash back. Low interest. Zero interest introductory offers. Low interest on balance transfer. Travel services. Roadside assistance services. The list or features available goes on and on. The credit card business is a competitive one - there are thousands of credit card companies all competing for your business. The net result is that just about as many different incentives are offered to lure you to using any particular bank. You might be familiar with this array of services, but don’t forget the fact that they are offered only because the business is so competitive. For most of us, it’s been a good long time since we’ve shopped those services to ensure that we’re getting the best deal that we can.
Shopping for credit cards can really save you a ton of money in fees and interest. You need to make sure that you find credit cards that match your spending and payment habits, and it’s good to have more than one. Here are a few tips that you can use:
1) Understand the features of your credit cards. If you routinely pay your bill in full monthly, you can afford to be less concerned about the interest rate offered and can instead focus on other desirable features such as cash back or frequent flier miles. If none of these other features interest you, perhaps you should shop for a credit card that has a longer grace period - that period of time before interest begins to acru on a transaction.
2) Compare credit card costs and features frequently. Credit card interest rates and features fluctuate over time, and was a great deal when you signed up for your card several years ago might not be such a great deal now. When you shop you will most likely discover other credit card offers which are better suited to your individual needs than the solution you have in your purse or wallet. Check frequently, and if you find a better deal, take it. (They’ll give you incentive to do so such as zero interest balance transfer offers. These are excellent offers if you manage your account diligently.)
3) Know your rights when using credit cards. If your credit card is ever lost or stolen you will never have to pay more than fifty dollars of any charges made on the card. The Federal Truth in Lending Act guarantees this protection. One of the most important benefits of credit cards is this added security they offer over cash. If you’re ever offered the chance to purchase “credit card insurance” don’t do it. You don’t need it to cover anything over the initial $50 of unauthorized use.
4) If you have a problem with your credit card, file a complaint. If you ever find an error on your credit card bill, be certain to write the credit card company within 60 days of the date on the billing statement. Make sure your letter includes your name and account number, tell them that you believe that the bill contains an error, explain why, and give them the amount and date of the error. When paying your bill you don’t have to pay the entire thing, or even the entire minimum payment. You can pay all other parts of the bill but you do not have to pay the disputed amount, any minimum payments associated with it, or finance charges that apply to it. This protection is guaranteed through the federal Fair Credit Billing Act in the United States, and by similar legislation in other countries.
It’s pretty simple to understanding the rights and the features attached to your credit cards - they are enforced by law, are common to all cards and don’t change. Shopping for credit cards is another thing! It’s an ongoing task that you should do periodically over time. Set a schedule and once every six or twelve months, spend some time reviewing the offers available online. Credit cards are easy to shop online, and you will find that you save yourself a lot of money by shopping.
Entries (RSS)