How To Avoid Credit Card Late Feed

Many people ruin their credit card score by not paying their credit card bills on time, or by missing payments. Late fees can be very expensive. Before you know it, the fee has piled up and the interest rate can grow and, after a while, you will not even be able to pay the minimum payment. This could be a disaster for you. But with a bit of careful management, you can avoid late payments and expensive late fees altogether. There are seven golden ways to avoid late fees on your credit card. Let’s look at them.

1. Follow the payment rules

This is one of the most important things you can do, and start doing right now. Sometimes we are sloppy about getting our payments sorted out. But remember that carelessness can cost you. If you mail payments, make sure you fill out the paperwork correctly, make sure your checks are legible, and make sure there is enough postage on the envelope. You will be kicking yourself later if you don’t. And be sure there is enough in the account your transferring from to cover the payment.

2. Make minimum payments immediately

We often procrastinate about paying, even when we have enough to cover the minimum. But a safe strategy is to pay the minimum as soon as your credit card statement arrives. You can always pay more later, and you won’t be tempted to spend what you should be paying off.

3. Change your due date

Bank statements always seemed to arrive at the worst possible time - at the end of the month when we are “skinned”. Most of the time, we are surprised that payment time has come around again and can never keep enough aside to make a payment. The solution is changing the date of your credit card bill to be issued right after payday. A lot of credit card companies will do this, if you ask them.

4. Direct Debit Payment

Setting up your accounts so that your bills are paid automatically is a great way to avoid late fees – no human error! It’s a big plus for you, so that you won’t forget about the payment and kick yourselves the day after it is due.

5. Pay by Telephone

This is a great one for last minute payments, if you know you’re not going to get it done any other way – but be careful. Some banks charge for this service, anywhere from $7 to $20. Still, if it’s lower than the late fee it’s definitely a good option to get your payment made fast.

6. Get your fee waived

If you mailed your payment on time, but you still get hit with a fee? Make sure you challenge it. Do you usually pay on time, but were late just this once? Ask your credit card company to waive the fees. They are sometimes lenient with customers that have a consistent payment record.

7. Change your credit card company

You’ll be shocked when you realise how much you could save by changing to a smaller credit card issuer; the local community bank for example, or a credit union. You’ll also be happy to note that they are more forgiving when you are late with payments.

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Let's See What Secrets Credit Card Companies Hides

Nowadays, almost everyone can get a credit card. Most people get offerings in the mail to apply for them all of the time! Many of these credit cards have very low introductory rates, but then shoot up later, often without you even realizing it! After all, who is going to read all of the fine print on the back of the application? Not many people! In a way, it almost seems deceiving.

The most favorable credit card rates can be found in mid-size regional banks. If a person has a decent credit card history, he or she can apply for a "better rate" card - even if the bank is out of state. They won't come to you though; you have to go to them to apply.

Start by looking at the mid-size banks in your area. If their rates are all too high, you can explore other banks in other low interest states. To find these states you can go to your bank and check out the "American Financial Services Association's Annual Summary of State Consumer Credit Laws and Rates". Or you can go online to explore. One thing to keep in mind when doing your research for low interest states; don't assume that every bank in these states will give you a low credit card rate. Sometimes banks will move their credit card operations to higher rate states that have less restrictive interest regulations. Make sure you find out the credit card rates after you've located a lower rate bank!
Another "secret" that the credit card people don't want you to know is that many of the high-fee, high interest banks try to entice and sign up potential credit card holders by offering special credit card enhancements. These extra services can be almost anything; ranging from insurance and catalog shopping discounts to travel services and rental car discounts. They will also offer "deals" on anything that you can think of, from new cars to pest control!

The reality of these offerings is that you can find just as good or better prices in the city where you live. People living in rural areas might like the idea. But these folks generally can drive to the nearest large city, or shop online for the same savings. These credit card enhancements are usually not worthwhile, and you're still paying those high interest rates!

Remember when using your credit card, that the costliest cash is when you use your card for a cash advance. You will get no "float" or grace period (during which your cash advance or loan is effectively interest-free), and an extra fee will be tacked on to your usual interest charge! If you really need the money it would be cheaper in the long run to take out a collateralized bank loan, even if it will probably be more trouble to arrange.

Use these tips to look around for a lower interest rate credit card from a low interest bank. Don't just sign up for any credit card, especially from the offers you receive in the mail, without first learning what the interest rates will be. If you are careful, and shop around, you should be able to secure a credit card with a rate that you can live with.
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Why You Must Shred Credit Card Applications?

It is common for people to have one or two credit cards. They are convenient to use and can help establish good credit if the cardholder is responsible with their debt amounts and monthly payments. Because credit cards have become so ubiquitous in our world, many of us forget that they need to be protected just as avidly as cash. If your credit card offer has a high credit limit, then you might even want to protect more avidly than cash… unless you routinely carry $10,000 with you.

Identity theft is a big issue these days. You hear a lot about how you should protect yourself. You should shred, rather than just throw away, any documents that have your account numbers on them. This includes bank statements, receipts, loan statements, and credit card offer statements that you want to discard. This is the first form of protection that you should be taking. Often, identity theft begins when someone pulls important numbers out of your trash. You should even shred all of those credit card applications that you get in the mail. Your trash says a lot more about you than you might think. Let’s say that in your trash you have a credit card application that you didn’t want, a doctor’s bill from last month, and a note that you mother wrote you. These are three things that you normally wouldn’t connect to each other. While they don’t have anything to do with each other, the information in these documents could be enough for a savvy thief to steal your identity.

Consider the possibility that the thief already knows your name and address. It’s printed on everything. And even if somehow neither your name nor address is printed on something you throw away, he pulled the credit card application (you can found many applications for MasterCard customers) and other documents out of the trash right in front of your house. Now, also consider that the bill from doctor might use your social security number so that the office will know exactly who the bill is going to and from whom the payment is coming.

What’s your name, your address, and your social security number? These are three questions that are commonly asked by credit card processing companies when they are taking your application over the phone.But could the note from your mother possibly have something in it that would help a thief steal your identity? Credit card companies, in an attempt to offer some protection to current and potential customers, will often ask callers a personal question so that the caller’s identity can be verified.

These questions could be something as simple as “What city were you born in?” or “What’s you father’s middle name?” Stealing someone’s identity sometimes requires the thief to be good at solving puzzles. And a lot of them are. If your mother has signed the note with her first name, then the thief probably has her first and last name. There might be ten people in your city who have your name, but how many also have a mother with the same name as you. By consulting a phone book the thief can then learn your mother’s address. See how the holes start to fill in?

Protecting your identity is necessary, so you should always be certain to shred credit card applications. Throwing them away isn’t good enough. Unfortunately for you, a lot of crooks are very smart.

By: Michael Russell

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Which Credit Card Should You Opt To Use?

Chances are you obtained your credit card because a salesman hailed you in a shopping mall and tossed an attractive prize your way. But is the card right for your needs, as well as for your spending and borrowing patterns? There are two reasons to take a second look at our credit cards now. First, the card market has become more competitive in recent years and you can now take advantage of the latest offers and variations. Second, the ubiquitous credit card is becoming a bigger part of our daily lives. At such high usage levels, the right card could give you hundreds of dollar in savings a year. While there is no one best credit card, there are cards that stand out from the crowd in terms of rewarding you and giving you better savings and there are cards that are right for you based on how you use your plastic. With most cards offering a 20-day, interest-free grace period and late-payment fees, individuals who like to settle their credit card debts in full should opt for cards that provide savings in other forms. For instance, look for a card that has no annual fee and rewards you for spending money. Always read the fine print - several cards are offering 'free for life' deals that come with conditions. For instance, you might have to use the card for a specified number of times or spend a certain amount per annum. If you are in the habit of carrying a substantial balance on your card, forget about 'free for life' cards or bountiful reward programs. Just being in the habit of owing $1,000 on your credit card alone can cost you twice as much a year as the standard annual fees out there. You need to look for a card that minimizes the interest you pay.
That means looking for cards that charge less than the annual 18% industry rate on your outstanding balance and/or cards that give you a rebate on the interest you are charged. What if you pay high value purchases in installments? There are two options available with credit cards. One is offered by associated merchants and is interest-free if you complete payment within the specified tenure. There are also 'flexi-payment' plans provided by the card issuer, and these either have a one-time processing fee or an interest charge. You should find a card that is associated with many merchants since this provides you with the most opportunities to utilize the interest-free installment plan.

In some cases, you may have to pay a processing fee to use this scheme. The best card should then incur lower processing fees if any, to use this plan, while offering long payment tenure. On the other hand, if you prefer flexi-payment, look for a card that charges the lowest interest rate or processing fee and has a good choice of installment time frames.

Remember to compare apples with apples and annualize flat processing fees if you are comparing them with interest rates. To encourage consumers to spend on their particular card, banks give incentives in the form of cash-backs and gifts. Which should you go for? Here's a tip - most gift reward programs give you around 0.5% of every dollar spent. So, it's suitable for the big spenders. If you don't charge a lot to your credit cards, it's wiser to just go for a card with no annual fees.
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