Credit Cards - Some Tips and Tricks

A Credit Article Contributed by Nithya K

The Credit Card Bait

Usually credit card companies can be very tricky to do business with and many times can be as slippery as a handful of greased Jell-O. These credit card companies would have all sort of tricks to gouge your wallet and sky-rocket your bill. You can very well say, this is totally unfair, but who is responsible for this? There is no way out except to be as informed about the workings of the credit card companies and try to protect one's interest as best as possible.

Its imperative that the credit card statement received for the billing cycle, should be read very carefully; and make it a point to report any irregularities immediately. It is really worth your time to keep in mind these credit card company tricks, that may end up in your bill as an irritating amount. You have to keep your eyes open for frauds and very easy manipulations to your billings, each month that would slowly eat away your money. Start saving on those fees now!

For instance, you are probably very excited about applying for that great credit card that gives you tons and tons of frequent flier miles, put all your shopping on it, and then head as fast as you can to the Bahamas. If you thought this is a dream, wake up! The miles earned from the credit card won't get you any farther than Hope, Ark.

Credit Card - the Temptation

When you get the credit card, study the terms very carefully. If you don't qualify for the great credit card, the credit card company would always send you a completely different card with different terms. If it is not what you want, don't activate the card. Cancel the account.

Credit card companies are notorious for changing their payment P.O.Box. If you send your payment to the wrong one, it may meander around the postal department or your credit card's head office for a while before making its way to the correct department. This only means that you are the one responsible for paying the late fees and as a result your interest rate would be raised. It will surely be raised, if you have those super-duper low rates. To avoid this, use the envelope provided in your statement; and check the mailing address each month or call the company to verify the address.

Even if you are five minutes late, you could end up paying $29! Even though your due date may be the 15th of the month, you would see that it's actually due by 1 p.m. So it is wise to send your payment early.

Credit Card Mistakes - Never Do These..

The Over-the-limit fees: This fee, although seems to be a no-brainer, is not to be taken very easily. Credit card companies have many tricks up their sleeves to make you go over the limit. So be careful of this fee!

Never ever take out cash from your credit card! Read the fine print on your statement. It's a very bad idea to draw cash, as the company might give you really low purchase rates but if you take out cash advances, get ready for a shock.