7 “Need to Know” Credit Card Facts Revealed

It is very common today for people to own a credit card or two. Plastic has what you need to knowbecome part of the modern lifestyle, something that most people cannot do without. If you are ready to own your very own credit card, there are 7 important tips that you should know before you get your own.

1. All credit cardholders should receive fair treatment.

When you get your credit card statement, and you see that something is incorrect, disputing those charges is a right that you have. The Fair Credit Reporting Act stipulates this right, and therefore you should go through your monthly credit card statements to verify that all of the charges were made by you.

2. Some secured credit cards do not offer credit reporting.

Although there are three major credit bureaus, some secured credit cards do not actually report your payments to them. Therefore, if you want to improve your credit score, or repair bad credit that you currently have, make sure that the secured credit card provider sends this important information to the agencies, an important service that you need to have.

3. Other costs above and beyond the interest rate.

Choosing a credit card with a reasonable rate of interest is very important to do. However, because there are other fees associated with most credit cards today, the interest rate should not be your sole consideration for getting the one that you choose.

4. Credit cards can vary.

There are many different types of credit cards out there, including rewards cards that offer gas rebates, travel rewards or even cash back. You can also get secured credit cards, business credit cards, or credit cards that are only issued to people that have bad credit. Whatever card you choose, make sure that it fits your personal needs and lifestyle because choosing the wrong one may actually make your life more difficult managing a card that does not work for you.

5. Multi-rate credit cards.

It is common for some credit cards to charge you interest based upon the type of transaction that you make. An example of this would be making a balance transfer, where the rate is substantially higher than simply making a purchase, or substantially lower than a cash advance. Understanding which rate applies to each transaction is something that you need to know before choosing a card.

6. Your credit score will not improve by owning multiple credit cards.

Although some people actually believe that your credit score can be improved by owning multiple credit cards, this is actually not the case. The key to having exceptional credit, even if you only own one or two cards, is to make your payments in a timely manner, and stay within your credit limit when making purchases.

7. Variable rates and the Index Rate.

Any credit card that has a variable rate of interest is bound to the Index Rate via the APR. Choosing a credit card with a fixed rate is always your best option, although it is tempting to get a variable rate because the rates are so much lower than when you initially received them.

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Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

Privacy Policy Terms of Use

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