5 TIPS: Getting The Most From Your Credit Card

http://federalreserve.gov/consumerinfo/fivetips_creditcard.htm#

Pay on time.

Paying your credit card account on time helps you avoid late fees as well aspenalty interest rates applied to your account, and helps you maintain a good credit record. A good credit record leads to a higher credit score, which helps you qualify for lower interest rates. Know the date your payment is due. If your bill is due at an inconvenient time of the month--for example, if it's due on the 10th and you get paid on the 15th--contact your credit card company to see if they will change your billing cycle to fit your cash flow.

Watch the PSA

Stay below your credit limit.

If you go over your credit limit on your card, your card issuer could charge a fee and increase your interest rate to a higher penalty rate. To avoid this, keep a record of your spending or check your balance online. Also, be aware that some merchants (for example, hotel and car rental companies) put a "hold" on your credit card based on their estimate of the amount you will charge. This can reduce your available credit until the final charge is processed. See Credit and Debit Card Blocking.

Avoid unnecessary fees.

Credit card companies not only charge late payment and over-the-limit fees, but also fees for cash advances, transferring balances, and having a payment returned. Some companies charge a fee when you pay your bill by phone. Pay attention to the transactions that trigger these fees. If you need a cash advance, withdraw enough so that you don't have to take a second cash advance--and incur a second fee--later in the month. Read your credit card agreement to learn more about the fees that your credit card company charges.

Pay more than the minimum payment.

If you can't pay your balance in full each month, try to pay as much of the total as you can. Over time, you'll pay less in interest charges--money that you will be able to spend on other things, and you'll pay off your balance sooner. See the Federal Reserve's Credit Card Repayment Calculator to determine possible repayment timelines.

Watch for changes in the terms of your account.

Credit card companies can change the terms and conditions of your account. They will send you advance notices about changes in fees, interest rates, billing, and other features. By reading these "change in terms" notices, you can decide whether you want to change the way you use the card. For example, if cash advance fees increase, you may decide to use a different card for cash advances. If you have a card with a variable rate or if you have an introductory rate that is ending, be aware that credit card companies are not required to send you a notice about raising your interest rate. Interest rates are listed on your monthly bill. Read your bill carefully and take note of any changes.

5 TIPS: Improving Your Credit Score

http://federalreserve.gov/consumerinfo/fivetips_creditscore.htm#

 

Get copies of your credit report--then make sure information is correct.

Go to www.annualcreditreport.com . This is the only authorized online source for a free credit report. Under federal law, you can get a free report from each of the three national credit reporting companies every twelve months.

You can also call 877-322-8228 or complete the Annual Credit Report Request Form and mail it to Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.

Pay your bills on time.

One of the most important things you can do to improve your credit score is pay your bills by the due date. You can set up automatic payments from your bank account to help you pay on time, but be sure you have enough money in your account to avoid overdraft fees.

Understand how your credit score is determined.

Your credit score is usually based on the answers to these questions:

• Do you pay your bills on time? The answer to this question is very important. If you have paid bills late, have had an account referred to a collection agency, or have ever declared bankruptcy, this history will show up in your credit report.
• What is your outstanding debt? Many scoring models compare the amount of debt you have and your credit limits. If the amount you owe is close to your credit limit, it is likely to have a negative effect on your score.
• How long is your credit history? A short credit history may have a negative effect on your score, but a short history can be offset by other factors, such as timely payments and low balances.
• Have you applied for new credit recently? If you have applied for too many new accounts recently, that may negatively affect your score. However, if you request a copy of your own credit report, or if creditors are monitoring your account or looking at credit reports to make prescreened credit offers, these inquiries about your credit history are not counted as applications for credit.
• How many and what types of credit accounts do you have? Many credit-scoring models consider the number and type of credit accounts you have. A mix of installment loans and credit cards may improve your score. However, too many finance company accounts or credit cards might hurt your score.

To learn more about credit scoring, see the Federal Trade Commission's website, Facts for Consumers.

Learn the legal steps to take to improve your credit report.

The Federal Trade Commission's “Building a Better Credit Report” has information on correcting errors in your report, tips on dealing with debt and avoiding scams--and more.

Beware of credit-repair scams.

Sometimes doing it yourself is the best way to repair your credit. The Federal Trade Commission's "Credit Repair: How to Help Yourself" explains how you can improve your creditworthiness and lists legitimate resources for low-cost or no-cost help.

More Links: Joyce Meyer (12/28/2012)

Loved this simple philosophy for finances...Meyer shared it recently on her T.V. ministry, as it is something her and husband live by:  

SAVE SOME 
GIVE SOME

SPEND SOME

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