By financen | April 26, 2008 - 6:38 am - Posted in Credit Card

Credit card can be very helpful during emergencies and especially when you are running out of cash. While you have purchased an item on credit, you get extra time between the purchase date and the billing cycle. You can arrange the cash and pay your bills on time. But be wary! Credit cards can often get you into troubles if you are not using it properly. Follow some helpful tips in this article and keep yourself away from credit card troubles.

When you are applying for a credit card, review the fee structure very carefully. Watch out for the carrying balance. There are some credit card companies who charge 20% or more on interests on the remaining balance not paid within the billing cycle.

The interest rates are not always fixed. If a credit card company is changing their interest rate, they will notify you in writing within 15 days. You might see a very high interest rate charged on your outstanding balance. This is not what you thought when you applied for the credit card. Always read the terms and conditions before applying for the credit card and make sure that you go for a reputed credit card company.

Always read your credit card statements very carefully. You might see some unknown charges added on the outstanding balance. It may be due to a mistake or for some other reasons. You should dispute the item with the credit card company and get it fixed immediately.

The finance charges on cash advances are very high. More importantly, the interest rates starts accruing from the date when you withdrew the amount and it will continue to add until you have paid the balance in full. Always be aware of the interest rates and fees before withdrawing cash from your credit cards.

Some credit card companies have an annual fee. While most companies have waived off the annual charges, but there may be some company to whom you will pay $50 or more for just keeping that card.

Watch out the introductory offers. When you received a credit card offer in your mail that offers a zero percent or very low interest rate, it can be quite tempting especially if you are already paying a very high interest rate on the other credit card. Double check the introductory card offer. It can be for a certain period of time. If you are not able to pay back the balance within that time period, the interest rate will again go back to what it was on the other card or may be higher.

Always think before you make a purchase on your credit card. If you cannot afford to pay back your credit card bills within the due dates, credit card company will be earning money from you in high interests and fees. Don’t overstretch yourself so that you fall into debts.

This entry was posted on Saturday, April 26th, 2008 at 6:38 am and is filed under Credit Card. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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