It's a new year and time to resolve to preserve or improve your credit card habits. We are now in a rising rate climate that will produce higher credit costs for cardholders this year. Savvy consumers should act promptly to take advantage of what is still available or take control of their current debt load. Here is a rundown on the top ten goals you should consider for 2005.
1. Check incoming account statements for any errors in holiday transactions and report them within 60 days.
2. Locate your current interest rate for purchases on the most recent statement and compare it to one-year ago. If it has increased by more than 1.5 percentage points, then investigate why.
3. Review your current statement for any notices or communications regarding upcoming changes to your account. We are in a rising rate environment which means issuers will most likely tweak up rates and fees this year to maintain profits.
4. Request a lower interest rate if you regularly carry a balance. Call your issuer and let them know about all the low-rate offers you are receiving in the mail. Ask them to match the rate.
5. Ask for a current cardholder agreement from your issuer. Since your issuer has probably issued amendments since you received the original cardholder agreement, it's time to get an updated copy.
6. Review your credit file maintained at the three major consumer credit reporting agencies. By the end of 2005, all Americans will be able to get free annual copies. Aggressively pursue any errors you find.
7. Resolve to make larger payments on your credit card accounts, especially ones with the highest interest rates.
8. Monitor your account via the Internet, if possible. This is the best way to catch errors and prevent fraudulent transactions or identity fraud.
9. Establish a bill payment system that prevents making any late payments. Making a late payment on a credit card account can be a disaster, causing your interest rate to jump to 25% to 30% or more.
10. Compare new credit card offers. Some issuers are still making 0% interest rate balance transfer offers. This is an excellent way to make some real progress on existing card debt. However, watch out for any hidden fees or costs associated with these offers.
It's a new year and time to resolve to preserve or improve your credit card habits. We are now in a rising rate climate that will produce higher credit costs for cardholders this year. Savvy consumers should act promptly to take advantage of what is still available or take control of their current debt load. Here is a rundown on the top ten goals you should consider for 2005.
1. Check incoming account statements for any errors in holiday transactions and report them within 60 days.
2. Locate your current interest rate for purchases on the most recent statement and compare it to one-year ago. If it has increased by more than 1.5 percentage points, then investigate why.
3. Review your current statement for any notices or communications regarding upcoming changes to your account. We are in a rising rate environment which means issuers will most likely tweak up rates and fees this year to maintain profits.
4. Request a lower interest rate if you regularly carry a balance. Call your issuer and let them know about all the low-rate offers you are receiving in the mail. Ask them to match the rate.
5. Ask for a current cardholder agreement from your issuer. Since your issuer has probably issued amendments since you received the original cardholder agreement, it's time to get an updated copy.
6. Review your credit file maintained at the three major consumer credit reporting agencies. By the end of 2005, all Americans will be able to get free annual copies. Aggressively pursue any errors you find.
7. Resolve to make larger payments on your credit card accounts, especially ones with the highest interest rates.
8. Monitor your account via the Internet, if possible. This is the best way to catch errors and prevent fraudulent transactions or identity fraud.
9. Establish a bill payment system that prevents making any late payments. Making a late payment on a credit card account can be a disaster, causing your interest rate to jump to 25% to 30% or more.
10. Compare new credit card offers. Some issuers are still making 0% interest rate balance transfer offers. This is an excellent way to make some real progress on existing card debt. However, watch out for any hidden fees or costs associated with these offers.