| 13 tips on using your credit card |
|
|
|
9. Forgo cash advances. Cash advances are a great way to get stung because there are too many ways
they can go wrong. "Nobody should ever use a credit card to withdraw cash,"
says Brock. "There is no grace period. There are almost always fees. The
interest rate is usually quite a bit higher. It is a very expensive, inefficient
way to get money."
10. Know that card companies
exchange information. If you have more than one credit card
account, there's something you have to know. Make a mistake with
one card (late payment, missed payment, etc.), and the other card
could raise your rates, too.
11. Don't just make minimum
payments. Avoid the temptation to run a bill now and bank
on paying it off later. If your plan is to charge, make the minimum
payments while you're in school, and pay off the balance after graduation,
you might want to rethink it. "With minimum payments, you're
playing the game on their home turf," says Brock. "It's
a joke."
Even though you will have a salary, you'll also have
to pay all your own bills. "Students often think it doesn't
matter how much debt they run up because they are in college, and
they're going to get a great job and can pay it back," says
Savage. "They don't realize how painful that will be."
And by that time, "often the credit card debts
can end up being the cost of a car payment," she says. Plus,
years of making only the minimums also won't do great things for
your credit rating.
12. Be prepared to stand up
for yourself once in a while. Has a card company hit you
with a penalty rate or fee because you slipped up once? If you call
right away and are persistent, you could very well talk your way
out of it. "I have found that you can be amazingly successful
on the phone with credit card companies, especially if you owe them
money," says Brock. "And if it's only the first time,
they will usually waive (the penalty)."
Keep working your way up the food chain, and be polite.
If they are threatening a rate increase and won't back down, let
them know you're willing to switch cards and take your money elsewhere,
says Brock. And mean it.
13. Look out for those warning
signals of too much debt. Three signs you've charged too
much: you can't pay off the balance at the end of the month, the
balance is growing or you're only making minimum payments.
The solution: Stop using the card. Analyze what money
you have and whether you can pay it down. And ask for help if you
need it.
Dana
Dratch is a freelance writer based in Atlanta.
|
