Credit Card Tips

Ever wonder why some experts recommend you to use your credit cards wisely. Below are some common sense tips that you will love to know about how credit cards work.

*Use First, Pay Later- Having a credit card allows you to purchase items first without affecting your cashflow, you are actually getting a loan from the bank. In a way, the bank pays for you first for the merchant while you pay the bank later.

If you have a large item, like a television, to purchase and know that your cashflow is tight, wait 1-2 days after your billing cycle date or statement date. Check with your credit card company, they will know. For example, your statement date 5th of June, you charge it to your credit card only on the 6th or 7th. In this way, your payment due date for that large purchase will only fall on the 29th or 30th of July, assuming 25 days grace period. That gives you almost 2 months of grace period!

*Credit Card Companies Love you- Focus only on ONE credit card, in this way, all your spending is accumulated on one credit card. Take out your wallet, pick one credit card that gives you the most benefit and destroy the rest, YES, cut them into half.

Listen, I have reasons for doing so. In this way, you can track your spending more efficiently since you have only one credit card, your credit rating by the bank will also improve. Also, in times of emergency, when you ask your bank for temporary credit limit increase, your chances of getting it will be higher as well.

*Rewards- Depends on your lifestyle, do you shop a lot or are you a frequent traveler, or you just want a credit card to purchase your daily necessities? Choose a credit card that suits you the most will let you earn your rewards points faster and you feel good knowing that you get rewarded for spending!

Don’t listen to the salesperson, he will tell you that you will need this and that, read the terms and conditions carefully and choose ONE credit card that suits you the most in terms of rewards payout.

*Card Fees- It’s an open secret that banks will waive your annual membership fees, if you are a high spender, just hint that you will stop using the card and they will grant you the waiver. Don’t threaten to close the account, that will leave a bad impression on you and your future interactions with the company will not be nice, you never know what’s recorded down by the staff managing your account. “WARNING, DIFFICULT CUSTOMER.”

*Late Charges and Interest Charges- Oh no, you overlook the statement and forgotten to pay. Be honest, do not lie, the bank has guidelines to waive your late charges and interest charges, have them to explain to you. In some cases, they will be glad to offer you solutions to aid your credit card usage.

*Always make Payment on time- At least the minimum payment if you can’t afford, this will allow your credit rating to be excellent. However, do not make only minimum payment for every month, the interest rate is high! But the company will love you for doing that. If possible, make full payment for your credit card bills every month.

Enjoy using your credit card!

JTYS

Secrets the Debt Card, Oops! I Mean the Credit Card Companies Don't Want You to Know By: Pat Hicks

Where large sums of money are concerned, it is advisable to trust nobody. Agatha Christie (1890-1976)

You notice I called credit cards by their real name. Make no mistake, the outcome of using a credit card is to create debt. It would be a lot more difficult to market a "Debt" card but that is what they are. In case you weren't aware of it, Federal regulators are pressuring banks into raising the minimum credit card payment from 2% to 4% to "help" consumers get out of debt quickly but somehow failed to address the usury interest rates charged by these companies.

Here are a few things you might not know about the credit card industry.

Credit Card Industry Facts:

The credit card industry earned $1,200,000,000,000 last year. That is $1.2 TRILLION in profits.

In 2004 consumers were charged $14.8 BILLION dollars in late fees.

Here's a cute little tactic used often by our credit card brethren. Not posting your payment on the day it is received so that they can charge you the late fee. They made millions using this technique last year.

Changing the due date or mailing the bill so that it is difficult at best to meet the deadline and there by charging another late fee. With two late charges on your 'record' your interest rate goes up as much as 10 points. This can be done without notifying you, by the way.

These companies have even resorted to not mailing out statements so that you will pay late and therefore be charged at least $29 in late fees and sometimes more.

Signing you up without your permission for credit insurance that virtually never pays out.

Checking your credit reports to see if you are charging on other cards and if it is 'deemed excessive', raising your interest rate by as much as twice your current rate.

Charging you a $25 fee for NOT USING your credit card.

Capital One has been sued because their customers mailed in the checks a full two weeks before the due date but were deemed late, charged the late fee and the interest rate was hiked to double digits.

Citibank paid a $45 million dollar settlement because they improperly assessed late fees and raised the interest rate up to 24% if the customer was late on any payments to other creditors, even if you are current on every payment to them.

The largest settlement by far against a credit card provider was against Providian for $300 Million dollars! Why? For improperly assessing late fees and charging customers for things they never ordered like credit insurance. The amount of the fine was proportional to the amount of abuse.

Sometimes because of the stress associated with these fees and abuses, people go out and try to borrow their way out of trouble with debt consolidation loans. This only adds to the problem if they don't tear up the cards.

Credit card debt has gotten to the point that it is not like owing the general store and not paying off the bill at the end of the month or when you get your next pay check. This is loan sharking at its worst and some say the rights of individuals were taken away by the changes in the bankruptcy laws made recently due to the efforts of lobbyists from the credit card companies. I think the little guy needs help and that is why I wrote this book. There is a term used often in Real Estate: "Operating from a position of superior knowledge". One can get sued for taking advantage of another for just this reason. Seems to me, the credit card companies mentioned above along with many others, are operating from a position of superior knowledge.

According to Robert Hinsley, a Houston attorney, "Being a good customer is not going to protect you," says Hinsley. "Nor will paying your bill on time each month protect you. Many of the major cards -- First USA, Chase, Capital One, Providian, Citibank, Penney's -- have been sued over practices regarding unfair billing practices and blatantly using tactics to cheat you out of your money. There is plenty of evidence that indicates most credit card companies think you are dumb and helpless and will not take any action. So they can easily use dirty tricks to cheat you out of your money."

Now are you ready to fight back and negotiate a settlement with these people? Don't be discouraged because the good news is, you can fight back. You can negotiate and you can reach a settlement advantageous to you! Pull yourself up to your full height, take a deep breath, know you are not alone and let's get started!

*This is an excerpt from "The Negotiate Your Way To Financial Freedom From Credit Card Debt Ebook" found on www.iwantafreecreditreport.com.