Let’s take a closer look today at credit cards and what you need to know.
Fact 1: The Credit Reporting Act gives you rights. Did you see your monthly billing statement recently? If you have, and you find that your monthly billing statement contains inconsistencies, errors, or fraudulent charges, then we recommend you immediately dispute them with credit reporting agencies. Remember that the Credit Reporting Act provides consumers protection from unauthorized transactions if they report them to their card issuers within two to three days.
Fact 2: Not every secured credit card issuer submits timely reports on consumer activity to the major credit bureaus. If you want to use a secured credit card account to rebuild or jumpstart your credit history, then you should first ask the card issuer if they have close working relationships with credit reporting agencies. If they answer YES, then you can proceed with your credit card application. You may need to look for other companies that can assist you in achieving your goal of building or rebuilding credit.
Fact 3: Other than interest, various card accounts may be subject to additional fees and charges. Secured credit cards, for example, require security deposits. Depending on what transactions you use your credit card for, you may have to pay finance fees and other related fees.
Fact 4: Credit cards can be different from one another. They come with a wide range of rates of interest, fees, charges, payment terms, options, credit limits and requirements.
To find the right card program for you, it is up to you to compare and shop for features. You will almost certainly find a credit card that works for you.
Fact 5: Different rates are applied to different transactions by different credit cards. Today, there are multiple rates on cards. You may be charged interest on all purchases, bills, and expenses. There are fees for cash advances, balance transfers, or other add-ons.
These features are important if you want to keep your credit card payments low. We recommend that you only use them if absolutely necessary.
Fact 6 – Managing multiple credit cards is an ill-advised practiceespecially if your goal is to rebuild your credit history. Because you have multiple credit lines, the risk of having a large financial obligation increases, especially if it is difficult to manage your spending. Experts recommend that you only manage two cards accounts at a given time.
Fact 7: You have the option to choose between a fixed- and variable interest rate. Fixed-rate credit agreements allow you to lock in a low interest rate on the credit card that you want, for the entire term of your credit agreement. Variable-rate programs have a variable rate of interest. While the initial rate may be low, it can quickly rise depending on changes in the market.
