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5 Credit card tips which you cannot afford to miss in 2013

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By: Good Nelly
on 3rd Jan,2013

2013 has arrived with a bang. This will help to increase your borrowing power. You can establish superb credit history gradually.
5 Credit card tips which you cannot afford to miss in 2013

2013 has arrived with a bang. It's time to apply for new credit cards and handle them responsibly. This will help to increase your borrowing power. You can establish superb credit history gradually. Read along to know about 5 tips that can help you solidify your credit life in 2013.

1. Find out what you can get:  Your credit score will decide the type of credit card you can obtain. In case you've a high credit score, then you'll easily qualify for credit cards, rewards cards, cash back offers, etc. Gone are the days when a credit score between 600 and 620 was considered excellent. Nowadays, you may be able to qualify for a credit card at super low interest with a credit score of 720 or more.

If your credit score is less than 620, then you may have to be happy with a secured credit card only. You can get such card by making a security deposit to the bank or credit card company.

2. Go through the credit card agreement: Read the terms and conditions of the credit card agreement carefully. This will help you make a comparative analysis between several credit cards. You can know about the interest rate, late fees, penalties, etc. from the credit card agreement. In addition to that, you can know about foreign transaction fees from the agreement. Have a close look at the fine print section of the credit card agreement. This will help you know about the fees you've to pay for missing out payments.

3. Know the way to flee from debt: You can't have good credit with a huge debt load. You've to find out the path to get out of debt trap. Use credit cards only when you've no other choice. If you can't control your urge to use credit cards, then it is better to leave them at home. Make it a point to save dollars to pay off high interest credit card bills first. Once you've become current on the high interest credit cards, start eliminating the low interest cards one by one.

4. Don't accept unsolicited credit card offers: You'll receive hundreds of credit card offers in your mail every day. Don't accept them. Sometimes, you'll be notified that you've been preselected for a card. Don't fall for such a thing. It is not guaranteed that you'll qualify for such a credit card. Moreover, you may get a better credit card after comparison shopping.

5. Develop healthy habit: Inculcate good habits so as to avoid coming face-to-face with debt giants. Use credit card in such a way that you don't receive a huge bill at the end of the month. Avoid interest rate hikes, fees and penalties by making regular payments to your creditor.

The final tip will be to review your credit card statements to find out if the creditor is making wrong charges. Ascertain where you've to pay additional fees. Develop a habit of analyzing your credit card statements. Don't leave everything to your creditor.

Inform the creditor about the unauthorized financial transactions without any delay. You'll get a new credit card and account number from the creditor. Also, request the credit reporting agencies to put a fraud alert on your credit report.

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