| The following tips are basic principles about obtaining | | | | time to read them. |
| and using credit cards that can save you some | | | | 5. Ask for a Better Rate - Once you have been a |
| serious cash and keep you out of debt. | | | | credit card customer for a few months call them and |
| 10. Have at Least One Credit Card for Emergencies - | | | | ask for a better rate. They won't laugh at you, they |
| While we highly recommend having a rainy day fund | | | | get hundreds of these calls every day and if you've |
| for emergencies rather than relying strictly on credit | | | | been a good customer it usually will work. Credit card |
| cards, having a credit card with a low interest rate | | | | companies work hard to obtain you as a customer |
| "just incase" is a good idea. | | | | and they will work hard to retain you. |
| 9. Rewards are not so Rewarding - Rewards can be | | | | 4. Pay Off Full Balance Every Month - All credit cards |
| a good thing, but only if used correctly. Rewards | | | | have high interest rates compared to other types of |
| cards typically have a higher interest rate than regular | | | | loans. You should never plan to carry a balance on a |
| credit cards, with the value of the rewards justifying | | | | credit card. If you must make a large purchase that |
| the extra expense. The rewards are not usually as | | | | you do not have the money for at the time, obtain a |
| valuable as you may think. Typically the value of the | | | | loan or a revolving line of credit from your bank. You |
| reward is around 1 cent per dollar charged and often | | | | will save a bundle on interest rates. |
| the rewards expire at the end of the year if you | | | | 3. Work with Retention Department - If you ever |
| don't use them. If you pay off your balance in full | | | | feel you are being treated unjustly by your credit |
| each month and charge a lot they can be worth | | | | card issuer, a simple threat to leave will get you |
| while, otherwise you're better off with a | | | | transferred to the retention department. This |
| non-rewards card. | | | | department will be MUCH more helpful to you and will |
| 8. Have Two Credit Cards - If you do plan to take | | | | usually do whatever it takes within reason to get |
| advantage of rewards, we recommend you carry | | | | you to stay. |
| two credit cards. The rewards card for making your | | | | 2. Do not get a Cash Advance - This is the second |
| daily expenses that you will pay off in full each | | | | worse thing you can do with a credit card, short of |
| month and a second card with the lowest possible | | | | missing a payment is getting a cash advance. The |
| interest rate to cover any emergency expenses | | | | cash advances usually come with a very high interest |
| when you won't be able to pay off the balance in full | | | | rate. What makes it worse is the fact that with |
| by the end of the month. | | | | most companies this higher rate credit will not get |
| 7. Shop Around - Don't apply for the first | | | | paid off first, or even in the order that you took it |
| "pre-approved" offer you receive in the mail or any | | | | out. They will apply your payments towards all the |
| for that matter. Do the research for yourself. There | | | | lower rate purchases and will only begin paying off |
| are plenty of sites such as that allow you to | | | | your high interest cash advance will all other items on |
| compare hundreds of credit card offers with a simple | | | | that credit card have been paid off. |
| search. You'll get the best deal by shopping around. | | | | 1. Never, EVER Miss a Payment - This is the absolute |
| 6. Read the Terms - The terms and conditions are | | | | worse thing you can do with a credit card. Not only |
| the equivalent of the disclaimer you hear on car lot | | | | will you incur a late fee, but your interest rate will |
| commercials. It cuts through the hype and reveals | | | | also skyrocket. In addition it will be a negative blemish |
| the true terms of the credit card such as what | | | | on your credit report which can cause the rate on |
| happens when you miss a payment and what you're | | | | any other loans or credit cards you have to increase |
| really getting from the rewards. Most terms are not | | | | as well as insurance rates. It also makes you less |
| that long, usually around one full page, it's worth your | | | | likely to get approved for future credit. |