A Road Map To Managing Your Credit Cards
October 14th 2009 22:40
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(NAPSI)-Credit cards can be a convenient and secure way to manage your finances. When used properly, credit cards offer flexibility in spending and in managing your finances.
It is important, however, to recognize that having credit cards does not mean you have to have debt. Loretta Abrams, from HSBC North America's Consumer Affairs Department, offers the following tips to keep you on the road to financial stability with credit cards:
Select a credit card that meets your spending needs
Research credit card options before you open a new account. Remember, simply opening new accounts can lower your credit score.
Review and understand the terms and conditions of the card before you accept it.
Be aware of changes in the "rules of the road"
Portions of the new credit card law, known as the Credit CARD Act, are now in effect:
• Card issuers must give you at least 45 days' notice of an account change.
• You may have the opportunity to "opt out" of some of the changes and cancel your account without penalty, although you will need to pay off your existing balance.
• Card issuers must mail bills 21 days before payment due date.
Make sure you are aware of how these changes, as well as any additional ones that may have been imposed recently by your card issuer--such as increased interest rates or decreased credit lines--impact your account and when they take effect.
Don't let roadblocks get in the way
Read everything your card issuer sends you regarding your account; if you don't understand something, call the company for clarification.
Always make your payments on time. Ideally, plan to pay your full balance each month or at least pay more than the minimum amount due each month. Any extra you pay will go toward your highest APR balance.
Identity theft can ruin your credit. Protect yourself by reviewing each individual charge on every monthly statement, confirming the merchant and date and dollar amount of each transaction.
Confront detours head-on
If you are having trouble paying your credit card debt, call your lender. Doing nothing is never an option--the problem will not disappear. Most lenders have programs in place to help you or can direct you to a nonprofit credit counseling agency that can offer you assistance
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