Tips for managing your credit cards

The Beginning of the Credit Card Erabegin to use your card number fraudulently. It is even
In 1951, Diners Club issued the first credit card to 200possible for criminals to intercept your credit card
customers who could use it at 27 restaurants in Newnumber while the fax is in transmission.
York City. From that modest beginning, credit cardsUse caution when giving your credit card number out
have become an indispensable part of modern life.on the phone or on the Internet. Only give out your
Consumers rely on credit cards to help them achievecredit card number on telephone calls you initiate to
their lifestyle goals by letting them take advantage ofbusiness or organizations you trust. Never give your
special bargains, spread payments out over severalnumber out to callers who call unannounced, no matter
months, and provide cash in emergencies. Credit cardshow legitimate the call sounds.
have become so widespread that they are oftenOn the Internet, look for an Internet address that begins
accepted as a piece of primary identification.Gettinghttps:\. The “s” indicates that it is a secure
the most from your credit cards involves four mainconnection and a small padlock symbol should appear
steps:in the bottom right hand corner of your screen,
Use your credit cards wisely.indicating it is safe to transmit your credit card number.
Protect yourself against fraud.Call your credit card company instantly if you suspect
Review your credit history regularly.trouble. All credit card companies have 24 hour lost
Get the right card for your needs.and stolen help lines. If you lose your wallet or purse or
Use your credit cards wiselyhave it stolen, call without delay! Much fraud happens
Follow these simple tips to get the most from yourwithin the first hour or two, before the victim realizes
card.Tips:the cards are missing. Your credit card company will
Pay your credit card bills on time. This is the singleblock your cards from being used and stop you from
most important thing you can do to preserve andbeing responsible for any charges thieves incur.
enhance your credit rating. Always pay at least yourTake advantage of any security features your card
minimum payment and allow time for your payment tooffers. Many newer cards have the option of including
reach the company if you are using the mail.your photograph on the card. This is excellent
If possible, pay off your balance in full each month. Ifprotection and is highly recommended.
this is not possible, then make as large a payment asReview your credit history regularly
you can comfortably afford. Paying off or payingAfter you have obtained the best credit card, and are
down your balance is a sound financial move—oneusing it wisely, review your credit history on a regular
that will save you money on interest charges.basis. This helps ensure your history is accurate and
If you can’t pay off your balance in full, thenthat any issues have been resolved to your
slow down on your credit card use for the next while.satisfaction.North America has three national
Take time to step back and have a careful look atcredit-reporting bureaus. Your credit rating is held at
how much you earn and how much you spend eachone or more of these bureaus. When checking on
month. A little budgeting can save you big moneyyour rating, be sure to contact all three, as your rating
down the road.may be held on file at more than one bureau. The
Check your statement carefully each month. Reviewthree national credit bureaus are Equifax, Experian, and
your statement carefully. Do all the charges lookTrans Union. Check the Yellow Pages, under Credit to
correct? Have any required credits been applied? Arefind the numbers in your area.
there any unusual or unexpected charges? Your creditGet the right card
card company will correct legitimate errors, but only ifWith all the choices in cards available, chances are
you bring them to their attention in a timely mannergood,very good, you can find a better card for your
before you pay your bill.needs. Today’s cards can save you money,
Transfer your balance to a card with a lower interestoffer better features, and even support a cause you
rate. If you have two or more credit cards withbelieve in. Here are some tips on finding the right card
outstanding balances, consider moving the outstandingand where to check that you have the best card for
balances to the card with the lowest interest rate. Youyour needs.Tips:
will save money each month and simplify your record4 Be alert for companies offering a great interest rate
keeping by receiving only one bill.for transferring your existing balance to their card.
Negotiate for a lower rate with your credit cardUsually these rates are only in effect for a short time,
company. If you have a good credit history, you are aoften six months. At the end of this time, the rate can
valuable asset to your credit card company. Call themrevert to a much higher permanent rate. Keep your
and seek ways to lower your interest rate. This iseye on the Annual Percentage Rate (APR); this is the
often possible, but never advertised. If the interest ratefigure that counts in the long run.
you are currently paying is very high, imply you mayLower is better: read the fine print and find the Annual
cancel the card and go with a competitor unless theyPercentage Rate (APR). This is the interest rate the
adjust your rate downward. It doesn’t hurt tocompanies charge you if you carry a balance. You
ask, and you may be surprised at the results.want the lowest rate possible; as each percentage
Protect yourself against fraudpoint drop will save you money on the months you
While credit card fraud is a problem, here are a fewhave an outstanding balance.
simple steps you can take to greatly reduce the risk ofNothing can be better: Try for a credit card that does
becoming a victim.Tips:not charge an annual fee. Many credit cards charge
Sign new cards immediately. When you receive youryou a fee each year to use their cards. While this may
new or replacement card in the mail, sign it, in ink, rightbe offset by other benefits the card may offer, you
away. If it is a replacement card, destroy the old cardcan find cards that do not charge this annual fee. Why
by cutting it into many small pieces.pay for the privilege of using a credit card when you
Shred old credit card receipts. You can purchase andon’t have to?
inexpensive paper shredder at an office supply store.Explore the options: Today’s cards offer a wide
All old receipts with your credit card number and anyrange of excellent features, including frequent flier
unneeded documents with your social insurancepoints, programs that bank points toward a new car,
number or other sensitive personal information shouldand cards that support charitable organizations. Other
be shredded before disposal. This prevents theoptions worth having include car rental insurance
common practice of criminals going through the trashcoverage, trip cancellation coverage, and extended
to find receipts and stealing your identitywarranty coverage.Colin McDougall is the editor of
Never fax your credit card number. Your credit cardpersonal finance websites offering credit cards,
number can lie for hours in the fax basket at the otherstudent credit cardsand other personal & mortgage
end. Anyone passing by can record your number andloans.