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Tuesday, December 15, 2009

Credit Card Management

I was thinking to terminate 1 of my credit card. Suddenly, I recieved a msge from the bank and was informed that my credit card limit has increased to 2x amount from current limit with immediate effect. Adooii, DUGAAANNNN....I have to think twice about this...

I'm sure most of the blogger also have one or more credit card in hand. so let's keep this tips for our own good.

Choose the Right Credit Card for You

First, choose a credit card that suits your needs. Make sure you're being offered a sufficient amount of credit. If you plan to pay your balance in full every month, there are many cards that offer rewards, rebates, frequent flier miles and the like. These cards normally have higher interest rates, but since you won't be carrying a balance, that won't matter to you.

If you plan to "revolve" your balance (e.g. pay less than the full balance you owe each month) then you'll want a card with a low Annual Percentage Rate (APR) so you can avoid spending lots of money on interest.

There are also many cards available with no annual fee or a very low fee. Regardless of whether you plan to pay in full or make partial payments, it still may be worthwhile to pay the fee. If the card offers rewards such as airline miles, you can earn tickets worth far more than the fees you'll pay, and if the APR is low enough, you'll save more in interest than you'll pay in fees.

Beware of "Teaser" Rates

Many card offers these days have "teaser" rates that are good only for a limited period of time, or only for balances that you transfer from another account. These may sound good at first, but stay aware of when the "teaser" rate expires and try to pay your balance off before then. Also, you should know that banks typically apply your payments to the balance with the lowest interest rate first, so that if you accumulate a balance at a higher rate, you'll be charged a lot of interest, and you won't be able to pay it off until all the balances at lower rates are paid off first.

Hidden Fees

Credit card companies also charge fees if you use a "convenience check," exceed your credit line, make a late payment, or send them a check that your bank returns for any reason. You should make sure that these fees are reasonable as many card issues have recently increased them to very high levels. If you get hit with one of these fees, call the card issuer and see if they'll waive it. Threaten to close your account if they don't. Often, they will waive these fees in order to keep you as a customer, especially if it's the first time this has happened on your account.

Keep Your Account Current

Regardless of how much or how often you use your card, it's important to keep your account current. Make sure you make at least the minimum payment before the due date each month. This way, you'll avoid paying late fees and you'll protect your credit rating. If you run into a financial problem, call your card company and let them know. Often, they'll be willing to reduce your minimum payment in order to keep the payments coming in.

Don't Be Afraid to Negotiate

The credit card business is very competitive. With thousands of different cards available, card issuers will go a long way to keep your business. If you think you're paying too much in annual fees and/or interest, call your card company and let them know. Tell them you just got an offer for another card that's a better deal. Often, they'll be willing to reduce their fees and/or APR in order to retain you as a customer.



3 comments:

Elyn said...

CC cap apakah itu?? lega i tarak ada CC. tp pikir2 bgs gak ade CC ni. kalo terdesak ia membantu kan??

Reflisia said...

elyn,
sebenarnyer i tak berapa arif sangat term2 financial ni..tapi setahu saya cc caps tue macam cc capital la..tak tau lah betul ke tak tapi itu yang diterangkan oleh org ekonomi pada saya...hehehe

-LaDy rAzOr- said...

nasib baik la mak nie dah terminate cc maybank noks....
dah x koser dah mak nak layan byk2 cc nie...
maybank tu riba nauzubillah!
pokai mak bulan2...
kali nie mak hadap cc bank islam tu jek la satu....
alhamdulillah.....