Credit Card Tips.

# If you decide to apply for a credit card, shop around. Look for a company that offers the following:

- Low interest rates or finance charges (combined, they are called APR)
- Low or no annual fees
- Low late fees
- A grace period (time during which no payments are due) before finance charges are posted

Read the fine print. The devil is in the details.

# Watch out for introductory offers! They may expire in three or six months. Watch how much your rate goes up then. Be alert for companies offering a great interest rate for transferring your existing balance to their card. Usually these rates are only in effect for a short time, often six months.

# Examine your statement carefully and call the company immediately if you have any queries.

# There is usually a charge for cash advances and interest on them begins as soon as you take the money out.

# Don't pay fees up front to get a credit card, unless you're applying for a secured card. If you are, make sure you understand how your deposit will be used. If you have good enough credit, you can get a card yourself, and if you have bad credit, no legitimate lender is likely to give you one.

About the only use for a secured credit card is to re-establish a good credit-rating.

The thing about credit-cards is: some people live quite happily without them. There was a time (pre-1952) when they didn't exist at all. And yet people lived well. Crazy, eh?

If you get behind in your payments:

# Cut your recreational expenses. Nobody ever got wealthy borrowing money for inessentials; they got rich borrowing money to start a business selling something people really wanted.

Clothes, holidays, booze, nights out on the town are wasteful. You'll never see that money again. If you're depressed, don't buy items to cheer yourself up. Go window-shopping to amuse yourself instead. When you're down, don't carry a credit card (or money or cheques!).

# Call your credit card company. They may be willing to work out a repayment schedule with you.

# Develop a budget and stick with it. Bad credit will affect your credit-rating and hurt your chances of getting mortgages or loans down the road.

# Consider (genuine) credit-counselling services.

# Consider: If you are not able to afford to buy it now, you won't be able to afford it when the credit card bill arrives. If you can't pay it off within twenty-five days, don't buy it.

# Credit cards are okay if you use them for safety or convenience.

# Credit cards are better than debit cards for purchases where you're not sure of getting good quality or service e.g. online purchases. With a debt card, thieves or errors can drain money directly from your current account.

# If you normally clear balances monthly, get a card with no annual fee and a 25-day grace period before interest charges begin.

# If you keep a running balance (why?), get a card with a low interest rate. The annual fee matters very little.

# Only carry one credit card. Having more is unnecessary, and they can cost you trouble and fees if they're lost or stolen.

# Try not to carry a card at all. If you must, use a debit card instead, BUT get one which is pegged to a second current account separate from where you keep your main cash. Watch how your spending patterns change. It's harder to spend ‘real' money.

# If you do buy something, keep your receipt. Then check your monthly statement. Sometimes there are errors, which you pay for unwittingly.

# Do not give out your credit-card info easily, especially over the phone or the internet.

# Shred any related documents before you put them out in the rubbish bin.

# Draw a line through any blank spaces above the total when you sign a reciept.

# Make sure you notify credit card companies when you move, even if you have no balance. You might have a new card mailed to your old address.

# Notify credit card companies IMMEDIATELY of a lost or stolen card.

From the Maryland Consumer Protection Division:

# Don't put your address and phone number on a credit card transaction form. Under Maryland law [and many other states], businesses cannot record or even request this information as a condition of accepting your credit card.

# If you pay by check, don't allow salesclerks to record your credit card account number. However, they are allowed to see your card and record the type (VISA, Mastercard, etc.) and the name of the issuer.

# Memorize your PIN number (personal identification number) and don't keep it with your card. Don't select a PIN that someone could easily guess, such as your phone number or name.

# The details of the credit card contract are usually in small print on the back of the letter offering you the new card. READ IT before you sign. Make sure you fully understand the terms of the credit card being offered. You might be surprised at what you find.

# If you want to use a new, low-interest rate card to consolidate and pay off your higher interest rate debt, find the card with the longest time period for the low-interest offer. This will allow you enough time to pay off your balance.

# Credit card companies should disclose how long the "low-interest offer" will last and what the interest rate will be once the low rate ends (usually 3 months). Most of the higher rates are quite high _ typically 9.9 percent above prime, or close to 19 percent.

# "Pre-Approved"--- Don't count on it. C.C. companies pay an agency for your name. However, if your credit status has changed recently, you may not qualify for the card you've been offered. Once you call to accept the offer or send in the form, the credit card company will seek your full credit report and determine if you qualify.

# Some cards charge a fee to transfer the balances from other credit cards to your new card. That could eat into anything you might save by having a lower interest rate. This should be explained on the back of the offer.

# If you paid for your goods or services by credit card, you have rights that you don't have if you paid by check, money order or cash. The federal Fair Credit Billing Act sets up procedures that require creditors to correct mistakes quickly and resolve disputes between consumers and merchants. Your rights are summarized on the back of your credit card statements.

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# Mailing your remittance: The credit card company's sorting machine's conveyer belt is only wide enough for an envelope, an enclosed check/money order and a remittance stub; so, anything else must be sorted manually. This delays your payment.

# The credit card company will wait and post your bill ten days before it's due. You get the bill, and wait a few days before paying it. Your payment then arrives late, and the cc company gets a late fee.

# Pay a bit more than you owe to cover any interest accrued e.g. if your bill is £320.50, you send a cheque for that amount, the interim interest adds another fiver, so you're still in debt, then you neglect to pay off the last bit of debt, so you get a late fee!

# Instead, pay a bit extra on top of the stated debt. A credit-card which is itself in credit is a lovely novelty(!)

# Overlimit fees: Some companies allow some cardholders to go over their credit limit without pre-authorisation. Cardholders assume that the card will be declined when it reaches the credit limit. It won't be.

If you are ONE DAY LATE in payment you are hit with the overlimit fee.

Watch out for the one-two punch: a late fee creating an over-limit fee. And interest charges on top of that. Nice! (for the card company).

# Raising your APR: If at any point your account was late twice within a certain period your APR may go up.

Also, ONE late payment during your introductory rate period causes the removal of that rate.

# If you pay your balance off on-time each month to avoid charges, your cc company may close your account, because they're not making any money off you.

# When you have a dispute: Document all agreements and communications made, whether oral or written; dates times, names, decisions. Regardless of what you so, your problem may not be resolved by the next bill. However, your diligence will allow for customer service reps to ensure you're not getting late fees, over limit fees, and additional charges while any investigation is under way.

# Get to the point when you telephone and the rep will be more easily to get the problem resolved. Don't waffle. They are only allotted about three minutes per customer.

# To maintain a good credit rating, pay bills promptly. Always pay at least your minimum payment and allow time for your payment to reach the company if you are paying by post.

# If possible, pay off your balance in full each month. If this is not possible, then make as large a payment as you can comfortably afford. You will save you money on interest charges.

# If you can't pay off your balance in full, then slow down on your credit card use for a while. Step back and have a look at your income and outgoings each month. A little budgeting can save you a lot.

# Transfer your balance(s) to a card with a lower interest rate, especially if you have two or more credit cards. You will save money and simplify your record keeping by receiving only one bill. Watch out for balance transfer fees, 'though!

# If you have a good credit history, negotiate for a lower rate, especially if your current rate is high. Imply you may cancel the card and go with a competitor. It doesn't hurt to ask, and you may be surprised at the results.

# The three national credit bureaus where you can check your credit report are Equifax, Experian, and Trans Union.