5 Tips for Getting the Most from Your Credit Card

5 Tips for Getting the Most from Your Credit Card

1. Pay on time.

Paying your credit card account on time helps you avoid late fees as well as penalty interest rates applied to your account, and helps you maintain a good credit record. A good credit record leads to a higher credit score, which helps you qualify for lower interest rates. Know the date your payment is due. If your bill is due at an inconvenient time of the month--for example, if it's due on the 10th and you get paid on the 15th--contact your credit card company to see if they will change your billing cycle to fit your cash flow.

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2. Stay Below your Credit Limit

If you go over your credit limit on your card, your card issuer could charge a fee and increase your interest rate to a higher penalty rate. To avoid this, keep a record of your spending or check your balance online. Also, be aware that some merchants (for example, hotel and car rental companies) put a "hold" on your credit card based on their estimate of the amount you will charge. This can reduce your available credit until the final charge is processed. See Credit and Debit Card Blocking.

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