November 11,2008
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Credit Card Tips: 101, Pt.1
– Get started, build good rating quickly.Perhaps, more than ever, the citizens of this country need to be wary of ‘Polter-Credit' (as in ‘Poltergeist' – the ghost that draws us into unsuspected dire consequences). With low and easy introductory credit card rates, these situations are easy to get into, but near impossible to get out of. These days the word ‘bailout' is almost as common as the word ‘the'. According to reports, ‘credit cards' may quickly become the next most-used word, pertaining to financial hard-ship and personal bankruptcy. The worst of that news is that, even after personal bankruptcy, credit card debt still has to be paid back.
Credit cards are indispensable for most of our society and can be our best financial friend. But the credit cards themselves are actually quite neutral. It's just as easy (perhaps easier) for them to become our worst enemy.
So it's well-worth taking a little time to learn some basic rules in the care and nurturing of a safe and friendly credit card. They really can be a best friend when treated with due respect. Here are some ways:
Tip No. 1: Securing the credit card in the first place.
For those who are new to credit cards or just haven't bothered to understand them, some pointers are very helpful here. Almost everyone receives credit card offers in the mail these days. For those who haven't yet established a good rating yet, the first thing to do is to get one. It doesn't even seem to matter if you've just completed a bankruptcy. You can still build a good rating. The current systems seem to consider other criteria over this reality.
You may have to start with a higher interest credit card and even purchase the first one (around $35 a year). That should be enough to establish good credit. The rule in this case is to use the card frequently and either pay it off every month or, at least, pay $1.00 over the minimum payment due every month.
Always pay early and never pay late. Don't risk it, pay as soon as the invoice arrives. By all means, don't ever go over your limit. Within three months, you starting better credit card offers in the mail.
Continue building your credit on this credit card until you're offered a free one with low interest (Preferably free, also). Beware of ‘Credit Protection' offers. They're expensive and most people don't need them.
All people need to be on guard against fraud, however. When signing the back of the credit card, always write in parens ‘(See picture ID)'