Effective Use of Credit Cards

There are many credit cards on the market. However, the terms vary greatly, and a conscientious consumer can take advantage of the best features of existing credit cards. For example, some of the Chase Visa ” rewards” credit cards offers consumers a 5% credit on purchases from grocery stores, gas purchases, and  drug stores. You receive a 1 % discount on all other purchases. If you request a card for you and your spouse, you will save a considerable amount. Chase does limit the amount you can charge in a fiscal year, so you should limit your purchases to the ones you receive a 5% discount. Although there is a yearly limit, you can double the limit by having your spouse request a separate card, with a different account number. Have your spouse request a card for your use. When you reach the yearly limit on your card, then start using your spouse’s card. In that way you double your limit. By using this technique, and charging all drug, grocery and gas purchase on Chase cards, I receive approximately $ 1,000/year  back in discounts. You can request a check whenever your discount reaches $ 50.00. Other issuers other than Chase offer discounts as much as 5% for some purchases.

Many consumers do not take advantage of the protection offered by credit card isuers when they receive poor service or have purchased a faulty product. Consumer credit laws provide you protection when you utilize credit cards when you purchase products or services.You should always charge a major purchase or service on a Visa,  Master Charge, or Discover card for two reasons. First, you should utilize a card that gives you at least a 1% discount. Second, using a charge card gives you protection if the service or product is defetive. Assume you are unhappy with a service or product you purchase. You should complain in writing to the party that provided you the service or product. If you receive no satisfaction, you should then inform your credit card issuer in writing about the faulty service or product. Then the credit card issuer will inform the product seller or service provider re: your complaint. If they do not respond within 30 days, the charge on your credit card will be reversed. Even if they do respond within the 30 day period, if the credit card issuer is not satisfied with the response, you can still receive a full or partial credit.  I have received thousands of dollars back by using this technique. Consumer laws protect you. Use them.

Most credit card issuers make a great deal of money by charging fees when consumers do not pay on time or go over their credit limit. If you incur a fee for any reason, you should always negotiate with the issuer. Many times I have been a little late with a payment and the credit card company indicated I owed a $ 29.00 late fee. If that happens I always call the toll free-number and ask that the fee be removed because I am a good customer. In almost every case that fee has been removed. You can negotiate interest rates as well. It is best that you pay your bill in full each month to avoid any interest charges, but if you can’t, you can still negotiate for a better rate. This is a very competitive business, and if you tell a credit card company that you can obtain a better rate, if you are a good customer, in most cases you can obtain a lower interest rate.

If you are unable to pay your credit card bill in full each month, you should utilize more than one credit card, and pay in full monthly for one of your cards. If you charge everything on one card, and cannot pay the full amount monthly, you will be charged interest for all your purchases. By paying at least some of your purchases in full on a different card you will be minimizing your interest charges.