Credit Card Talk or Need Free Consumer Advice?

Lately, my paper shredder seems to be getting a good work-out. Most of the shredded papers are blank checks that come in credit card envelopes and the applications for the credit cards themselves. Whether it’s Discover, Visa, Master Card or American Express, I have the information in my mailbox continually. Now I want to make it clear, I do use credit cards and I like the ones I have. But, I only use the ones that have CASH REWARDS and I am NEVER LATE in paying the ENTIRE BALANCE each month.

The competition between credit card providers to get your business has produced various “perks” for the holders of the cards. Some include:  Frequent Flier points that add up to help with air travel expenses, General Motors Discounts that help with purchasing a GM vehicle and of course there is the standard cash rewards that can be used toward products at a reduced cost, cash, or a donation to charity.

However, you must ALWAYS KNOW all the details accompanying each card: the interest rate, the grace period, the late fees, the date due, and your credit amount. Read the fine print. Some cards that offer 0% interest for transfers have clauses that specify you must use the card every month or the regular rate for the card becomes effective.

If you have any questions, call the customer service number. Generally, credit cards do have a very high rate of interest and if you don’t continually monitor your balance, check the monthly statement thoroughly to make sure you made all the purchases and watch your spending it could become a financial disaster. Another point to consider, if your interest rate is way up there, you might want to call the credit card company and see if they can lower it. If they feel they will be losing you as a customer, they often lower the rate. (The best plan is to have some “bartering weight” with another card that offers you a lower interest rate for transferring your balance. Have this information in line before you make the call.)

I am not pushing the use of a credit card here, but it can work in your favor if you do the research and always pay off the balance on time. Technically, you are not using their credit, but their time since you are billed monthly. If you can’t pay the entire amount, then pay off as much as you can on the balance so you don’t financially sink deeper with the high interest. If you find yourself approaching debts you can’t handle, immediately cut up the card and work toward paying the balance off as quickly as possible. Your credit report will score higher if you don’t actually close out the account after you have paid the balance in full.

P.S. It is recommended for fool-proof shredding of paper and documents to choose a cross cut paper shredder as opposed to a strip cut paper shredder.

P.P.S. If you get a chance, listen to the Clark Howard Show on Cox Radio or check out his website:  www.clarkhoward.com (take a little time to look at the list of topics under Clark Smarts)

This is also from his site and can benefit those in need of FREE CONSUMER ADVICE.

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Attention: SunRocket Customers!
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