Good Credit
Card Management 
By: Frank Richardson, esq
There’s no denying that credit cards have made our lives easy.
Anything that catches your eye can immediately become your property thanks to the little plastic
card in your wallet. Whether it’s groceries, a new watch, or an expensive dress, you quickly swipe
your credit card and there it is. It is almost like magic until of course you are snapped out of
the spell by your credit card bill at the end of the month.
A large percentage of Americans are guilty of irresponsible use of their credit card. This has
lead to a lot of debt, stress, debt consolidation, high rate of interests, payment defaults and in
some cases bankruptcy.
Spending responsibly is important, but you can also manage your credit card better by keeping
your eyes open for credit card catches often overlooked in the fine print.
Does your card charge an annual fees? There are a slew of companies that don’t charge annual
fees, but if your credit card company does charges a certain amount as annual fee, it should be
between the range of $35 and $50.
Some credit card companies may charge an extra amount for online bill payment facility or for
payment over phone. To avoid paying those extra dollars, pay your bill through mail as soon as your
statement arrives.
Beware of introductory offers. Many credit cards have an introductory rate for the first few
months. Make sure you know everything that is associated with your card and the offers that it
includes. Be aware of the amount of time your offer is valid, and clarify any doubts you might have
with your credit card company.
Most credit card companies have a penalty for late payments. Your interest rates might also
increase on account of late payment. Often your credit card company might consider lowering your
late payment rate if you continue to pay your bills on time for six months.
Your creditors check your credit report and keep a track of the payments that you make, you can
have a good credit report by paying all your bills on time. Conversely, if you do not make payments
on time, some companies will utilize “universal default”, this is a clause that allows creditors to
raise your interest rates if you make a late payment on any account.
Credit cards are by far the easiest way you can borrow money, probably why people incur debts
with improper use of the cards. Credit card management is a skill that everyone must learn. Unless
you can learn how to manage your debts you will never reap the benefits associated with having a
good credit report.
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