Six Credit Card Management Tips

While the following may seem a bit elementary, the fact is that an overly high amount of credit card holders never heed the following advice.  Because of this, the need to educate and spur to action the customers affected is very important. Here are six steps to help you in managing your credit cards smartly:
Pay by the Due Date.  You will avoid late fees that accumulate while keeping a clean credit history.  Your clean credit history will help you be able to obtain further credit not only on credit cards, but also on auto loans, home mortgages, etc.  If you find that you are missing your payment due date because your income does not allow you to make your payment on that date, contact the credit card company and ask them to make a change in due date.  This will help you stay in good standing with them.

Remain Under Your Credit Limit.  This is a challenge for most card holders because the temptation is to keep purchasing on your card until there is no room left on the balance.  If you hit your credit limit, be mindful that you will go over your limit because of the interest fees and other charges like annual fees which will accrue on your card automatically.  Keep a close watch on your balance either on the Internet, or by calling the card company.  Also note that some companies with which you do business will put a hold on your credit card based on an estimated charge of what you will be incurring.  These companies are mostly hotel and car rental businesses, but can be other merchants as well.
Be Aware of Account Fees.  Believe it or not, some card companies charge you to pay via phone.  This along with the other fees of cash advances, balance transfer fees, and others will penalize your account.  For cash advances, be sure to take out enough money in order to avoid a second late fee later on in the month.

Pay the Minimum Plus.  Make it a habit to always pay your balance in FULL every month.  But if you are unable to do this, then pay as much as you can so that you do not get caught in the never-ending cycle of late fees and other charges that actually grow your balance.

Look for Term Changes.  Read the fine print on the included account updates that come with your statements.  This means that changes have been made to your account which could adversely affect your balance.  Call the card issuer and ask questions on topics about which you are unsure.  The credit card companies are open to helping you understand your credit card account and the items that arise from its use.  Changes in variable interest rates or introductory rates do not require a notice, so you might see a change without one of these alerts which is included in your statement.
Use Internet Account Access.  The best method for keeping up with your account and the various activities that affect it is to sign up for online services.  Monitor activities like charges made and fees assessed. You can spot fraudulent charges here sooner than just awaiting your paper statement.  Also, you can make payments and communicate via email with a customer representative if needed.
If you use these tips wisely, you can have a calm and satisfactory experience with your credit cards.  One of the most important disciplines is to regularly pay attention to your credit card accounts.  At least every other week, be sure to logon on to see how things are going.  Remember, card ownership is an active activity, not a passive one.

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This entry was posted on Wednesday, March 4th, 2009 at 7:00 pm and is filed under Credit Card Advice, Credit Card Debt, Financial Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.