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:: HOME :: CREDIT CARDS · Main Page · Card Recommender · Comparison Chart · Sort by Bank/Issuer · Top Five Credit Cards · Credit Card Specials · Sort by Credit Rating Main Categories · Balance Transfer Cards · Business Credit Cards · Cash Back Credit Cards · Fixed APR Credit Cards · Instant Decision Cards · Low APR on Purchases · Rewards Credit Cards · Student Credit Cards · Travel Reward Cards Other Specialty Cards · Cards for Parents · Gas Rebate Cards · Hotel Reward Cards Bad/Damaged Credit · Bad Credit Credit Cards · Debt Consolidation · Pre-paid Cards Credit Resources · Calculators - New! · Tips & Advice - New! · Credit Card FAQ · Credit Card Glossary · Credit Reports, Scores · Identity Protection · More Credit Resources :: LONG DISTANCE :: INTERNET SERVICE :: LOANS :: CELL PHONES :: INSURANCE :: ONLINE BANKING :: KNOWLEDGE :: MORE |
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Credit Card Tips and Advice Center Topic: Using a Credit Card See the subtopics menu for tips and advice about using a credit card. For additional information about credit cards, see the topic list directly below.
 Billing ErrorsWhat should I look for on my monthly credit card bill? Credit card billing is often automated, and there are plenty of opportunities for errors to occur. Be sure to always review your credit card statement at the end of each billing cycle. But what exactly should you look for?
^ Back to top Cash AdvancesAre there extra fees associated with cash advances? Cash advances on most credit cards - obtaining cash from the available funds on your credit line - may result in extra fees and a higher interest rate. Before you take a cash advance, first look at the fees associated with cash advances. You may be charged a cash advance fee by both the credit card company and the bank that issues the funds to you. If you use an ATM, you may have to deal with ATM fees as well. Often, a credit card company may begin charging interest on cash advances immediately. This means that you do not have the same grace period as you would with a regular purchase made with the card. And the interest rate may be higher with cash advances than the interest rate you are used to paying on purchases. Be sure to understand all aspects of obtaining a cash advance from your credit card. Check the terms and conditions of the card so that you are familiar with the fees and interest rate involved with such transactions. Oftentimes, it is best to try not to use credit card advances as a default means to get cash in your hands. Instead, use your debit card or write a check at the bank. ^ Back to top Consider Your Credit Card a LoanIs there a way to estimate my monthly credit card payment? Using your credit card should not be akin to a financial free-for-all. It is true that you can purchase items using your credit card and not worry about the bill showing up for a few weeks. But you should still take into consideration the amount of money you will need to make at least the minimum payment on your credit card. Consider your credit card a loan of types, or a temporary solution to get what you want when the money isn't in your wallet. You should still take the time to calculate credit card payments for a major purchase. Some department store credit cards will give you an approximation of your monthly payment when you make a major purchase, and you can find similar helpful credit card calculators right here on e-wisdom.com. As long as you know your interest rate, the purchase amount, and the amount of the balance you already carry, you can estimate what you will wind up paying on your credit card after you make the purchase Try a calculator before you shop so you can be sure that you can actually afford the minimum monthly payments. ^ Back to top Credit Card FeesWhat types of fees can I expect with a credit card? The cost of a credit card often goes beyond the interest that you pay on any balances you carry. Credit cards – especially cards designed for people with bad credit – can come with unexpected, extra fees and costs. Unless you take the time to thoroughly read the credit card disclosures, you may not be fully aware of what types of fees are associated with the credit card. You may already know you'll be charged a late fee if you don't submit your monthly payment on time. Another credit card fee that most consumers are familiar with is an over-the-limit fee, which occurs when the credit limit is exceeded. Some other fees attached to credit cards include annual fees, balance transfer fees, cash advance fees, maintenance fees, monthly fees and even application fees (when you initially apply for the card). If you have good credit, there is no reason why you should have a card with a ton of fees attached. If you have bad credit, you should expect extra fees to be associated with the credit card. However, if you consistently pay your bill on time and work on raising your credit score, you can then apply for a credit card that charges fewer fees in the future. ^ Back to top Declined PurchasesWhy was my credit card declined when I tried to make a purchase? There is nothing more frustrating than attempting to use your credit card and having the transaction declined. There are a number of reasons why this can take place. In most cases, you are simply over your credit card spending limit or you missed a credit card payment. Sometimes, in an attempt to protect cardholders, credit card companies will block suspicious purchases if they appear to be fraudulent. For example, if you travel outside the Glitches in the system, either on the merchant's side or the credit card company's side, can also cause declined purchases. In addition, your credit card may be declined if the magnetic strip is wearing off and is unreadable by the machine. Whatever the reason, try not to panic if your card is turned down. Ask the merchant to run the card again, and, if necessary, ask the merchant to manually input the credit card numbers. If the card will not go through after these steps, call your credit card company and find out why the purchase was declined. Many times it can be resolved with a quick phone call, and you will be on your way quickly with your purchase in hand. ^ Back to top Increase Your Credit Card LimitHow can I get a credit limit increase on my credit card? Most credit cards come with credit limits. In some life changing situations - like buying a home, buying a car, or simply making a big purchase - you may need to increase your credit card limit. You can apply for a new credit card with a higher available credit limit or you can contact your current credit card company and request a credit card limit increase. You may be surprised by the response that you get from the credit card company. If you consistently pay your monthly credit card payment on time, you may find that you receive periodic limit increases without ever having to ask. If you find that you aren't getting the limit increases you deserve, it may be time to consider moving on to a different credit card company. ^ Back to top Minimum Credit Card PaymentsShould I pay more than my minimum monthly credit card payment? Each month your credit card company expects you to make a minimum payment by a certain date. The amount of the credit card minimum payment is usually relatively low compared to the actual balance you owe. You have probably heard over and over again that financial experts frown upon only making the minimum monthly payment, and that you should instead always pay more. If you only make the minimum payment each month, you can end up spending quite a bit on interest payments over time. In fact, you will probably end up paying substantially more in interest payments than you initially paid for the item you bought with the credit card. Look at it this way: If you are spending more in a day on a meal than you are for your monthly credit card payment, then something may be askew. Pay the minimum payment when that is all you can manage, but otherwise you should be making much more substantial payments. The best case scenario for saving money is paying off your entire monthly balance whenever possible. ^ Back to top Online Credit Card AccessWhat are the benefits of online account access? One of the best aspects of the Internet is the ability to conduct financial transactions online without ever having to set foot in a bank. You can research credit card offers online, apply for a credit card online and even use the Internet to pay credit card bills. The trick is to do all these things in a smart way. Don't apply for a credit card online through a website which you have no familiarity with. Don't respond to pop-up ads or emails that ask for personal financial information, such as passwords and account numbers. The likelihood of these ads and e-mails actually being from your financial institution are slim. But don't be afraid of the technology behind the Internet. Making an online credit card payment is safe as long as you do it through the official website of your credit card company, and the convenience of online payments can be far superior to dropping a bill in the mail. While an online payment is often instantaneous, payments sent through the mail can take several days before they are applied to your account. ^ Back to top Pay Credit Card Bills On TimeWhat happens if I make my credit card payment late? Before you allow yourself to pay your credit card late, you should understand what it can do to your financial standing. First, know that late payments can completely change the terms of your credit card agreement. Unless your credit card company offers a grace period, you can go from a low interest rate to a surprisingly high interest rate in the matter of just one day. You may also be hit with expensive late payment fees from your credit card company. If your payment is more than thirty days late, regardless of the reason behind the late payment, your credit card company has the right to report the lateness to the credit reporting agencies. This means that you will have a ding on your credit report that can sit there for several years, and thus can lower your credit score. If a late payment is inevitable, such as when you are unexpectedly hospitalized or you have to go out of town for an emergency, there are certain steps that you can take. If your credit card account is in good standing – you have always paid on time up to this point – then you may be able to receive a one-time extension from your credit card company. Call the company and explain to the customer service representative that your payment will be late, but that this is an extraordinary situation and it will not happen again. If the representative is not responsive, ask to speak to a manager. It is likely that they will make a note of the phone call in their system and you will not encounter the late fees and all the other problems associated with a late payment. Just be sure to make this phone call before the payment is even due, because if you call after the payment is overdue they may be much less forgiving. Avoid making late payments whenever possible. If you can make on-time payments over an extended period of time, your credit situation overall can benefit greatly. ^ Back to top Payment Grace PeriodsWhat is a credit card grace period? When you make a purchase using your credit card, you delay the period of time until you actually need to shell out cash for the item you purchased. Most credit cards have a grace period that allows you to delay paying interest on your balance. This grace period is usually around 28 days or longer, but each credit card company decides how long their grace periods will be. When you surpass that grace period without having paid off your balance, the interest begins accruing on your account. This is when the credit card can really start costing you money. When possible, it is best to pay off your entire balance prior to the end of the grace period. If you are able to do this consistently, then you essentially wind up using the credit card as an interest-free loan. When you do not pay off the entire balance, however, you begin compounding interest charges. Be sure you take the time to read the accompanying information with your credit card so you actually know how long your grace period is. ^ Back to top Watch Your SpendingIs there any harm in maxing out my credit card? A new credit card can be a veritable invitation to indulge in a shopping spree, but this does not mean that you should go wild with the credit that is available to you. Before you start shopping, take a look at your credit card spending limit. You should also take care to be aware of any recurring fees which your credit card has, because these fees may lower your available credit. Take measures to not exceed your credit limit. Not only can exceeding your limit result in some hefty fees, but some credit card companies see this as justification for changing the terms of your credit card. That means that a relatively low interest rate may suddenly increase because you exceeded your credit limit. You should also be aware that nearing the maximum of your spending limit can lower your credit score overall. Nearing your credit limit can make it appear as though you are not managing your available credit in a prudent manner. For these reasons, you should not think of your credit card spending limit as a number that will eventually be reached, but instead as money available to you in an emergency. Use your credit card in moderation and you will avoid over-limit fees as well as any negative affects on your credit score that may occur as result. ^ Back to top
Should you transfer an existing balance from one card to another? Use this calculator to help determine the best distribution of your credit card debt. Enter your credit card balances, rates and credit limits to find out. · Calculate which balance transfers will produce the greatest savings
 Resources: Credit Card Recommender | Free Credit Report & Score | Protect Your Identity
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