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Tips For Choosing The Right Credit Credit With Low Interest Rates

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Tips For Choosing The Right Credit Credit With Low Interest Rates Powered By Docstoc
					Tips For Choosing The Right Credit Credit With Low Interest Rates

It can be time consuming and confusing trying to sort though credit card
promotions that arrive with your mail each day. Many credit cards offer
such things as minimal interest rates, credit in spite of not-so-stellar
credit rates, or rewards like frequent flyer miles. How is the average
person supposed to separate the wheat from the chaff? The tips in this
article should provide you with some excellent information on the proper
way to find a great credit card.

Avoid using your credit card to pay for meals at restaurants, as the
charges sometimes take a while to appear on your credit card statement,
so you could underestimate your available credit. This can result in more
fees on your account if you spend over your limit due to the groceries or
restaurant bills not posting fast enough.

It is a good idea to have two to three credit card accounts open. This
helps improve your credit score, particularly if you can pay off the
cards each month in full. But, if you have more than three cards, lenders
may not view that favorably.

Don't view zero   percent credit cards as a free pass to spend more. Even
though it seems   like a good thing at the surface, it helps people to
spend more than   they have. Zero percent rates are always temporary. When
they expire and   a higher interest rate kicks in, people who over-extended
themselves will   be stuck with an unwieldy amount of debt.

Before you ever use a new credit card, it is important   to carefully read
through all of the terms of the credit card agreement.   As a general rule
of thumb, usage of a credit card represents acceptance   of all terms in
the credit card's agreement policy. Be aware of all of   the "fine print"
that comes with your credit card!

It is necessary for you to sign any credit card as soon as you receive
it. A lot of people do not and this can make you a victim of fraud, since
the cashier will not know it is not you. Many cashiers will check to make
sure there are matching signatures before finalizing the sale.

Never lend your credit card to a family member or friend. Even if it is a
great friend of yours, that should still be avoided. There are other ways
to help a friend or family member in need other than allowing them to
borrow your card.

Look for cards from the major credit card companies when you are seeking
a new card. Their cards come with better perks, and they often follow
very strict business practices that benefit consumers. It's worth having
a major card company backing you when you swipe your card. You want a
company that has well-defined business practices to help protect your
credit score.

Have a list you keep of all your credit card accounts by number as well
as the lender's contact numbers. Maintain it in a secure place, like a
safe, and keep it separated from your cards. This list will help you if
you ever lose your credit card or are a victim of a robbery.
Many people have credit cards, however very few use them correctly. While
there are situations in which people cannot avoid going into debt, some
simply abuse their cards and rack up payments they cannot afford.
Ideally, you should pay off your balance in full every month. By doing
this, you will have a low balance and help your credit score.

Minimum payments are designed to maximize the credit card company's
profit off of your debt in the long run. This is why you should always
pay some amount over the minimum due. By doing this, you can prevent
large interest fees in the future.

Learn what the FCBA is, as well as the terms it contains. This particular
act helps prevent customers from paying charges that aren't authorized on
their cards. It can help prevent fraud if you know how it works. In some
cases, card issuers attempt to hold customers responsible for purchases
they did not make, and the law works to address that.

Try to avoid prepaid cards when looking at secured credit. These are
considered debit cards so they don't report to any of the credit bureaus.
A lot of them will charge extra fees and are basically no more than a
checking account. Place a deposit, and try to get a secured card that
will help you improve your credit.

Consumers are constantly bombarded with offers from credit card companies
these days, making it hard to decide which offers to take. With some
knowledge and education, it's much easier to understand credit cards than
you think. Now that you have read this article, you have the kind of
advice you need to begin making the right credit decisions.

				
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