The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Information on this website may not be current. This website may contain links to other third-party websites. Such links are only for the convenience of the reader, user or browser; we do not recommend or endorse the contents of any third-party sites. Readers of this website should contact their attorney, accountant or credit counselor to obtain advice with respect to their particular situation. No reader, user, or browser of this site should act or not act on the basis of information on this site. Always seek personal legal, financial or credit advice for your relevant jurisdiction. Only your individual attorney or advisor can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, contributors, contributing firms, or their respective employers.
Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them. Compensation is not a factor in the substantive evaluation of any product.
What are your credit card habits? If you are like most people, you probably just use your credit cards to purchase goods and services while paying little attention to the details of your credit card usage. And by doing so, you risk paying too much in interest and fees, and can miss out on value rewards and benefits.
So now is the time to take a fresh look at how you use your credit cards, and adopt these five habits for 2015:
There is no single better habit than to avoid interest on your credit cards by paying each month’s statement balance in full. About half of American consumers do so, while the other half tend to carry a balance, at least some of the time. Avoiding interest not only saves you money, but keeping your debt low and making on-time payments can help you work your way toward, or maintain, a high credit score. (If you are not sure what yours is, you can get a free look at your credit score and a summary of your credit report from Credit.com, along with an action plan for improving your credit.)
If do not carry credit card debt, but are also not earning rewards from your credit cards, you might want to reconsider a reward-earning strategy. The most competitive reward credit cards offer valuable points, miles and cash back for spending on those cards. And even among reward credit card users, many have the same cards that they have held for years, and have not switched to more competitive products. Unfortunately, these cardholders are leaving money on the table. Look into whether there are cards that can offer you better rewards and consider making the switch if it makes sense for you.
In 2014, so many retailers were hacked that it became difficult to keep track of each one. Thankfully, cardholders’ liability for fraudulent charges is limited. Nevertheless, you have to notice the unauthorized charges and alert the card issuer in order to have the transactions reversed. So it is more important than ever that you look through each statement to find any charge that shouldn’t be there.
Many airline credit card users know that they earn frequent flier miles, and that they might even get a free checked bag, but most fail to look over all of the other benefits offered. In fact, all types of credit cards may come with valuable purchase protection and travel insurance policies that few cardholders ever use. That’s too bad, since these policies can extend the manufacturer’s warranty on your new television or computer, compensate you if your luggage is lost, or offer a refund if the price drops on a purchase after it is made.
Credit cards can have many fees, but there is usually a way around them. If you travel outside the United States, you may be paying a 3% foreign transaction fee, but now there are many cards that you can get that don’t charge this fee. You can avoid late fees by setting up automatic payments, or by choosing a card with no late fees. And to avoid annual fees, be sure to simply ask to have them waived, or choose a card that does not have them.
Image: Andersen Ross
April 9, 2024
Credit Cards
October 21, 2020
Credit Cards
August 3, 2020
Credit Cards