subject: Things To Watch Out For With Credit Card Payments [print this page] If you want to build credit it is important to stay out of debt. It is important to pay credit card bills on time. If you let your debt build a lot then you will get in trouble.
One way to not shell out more money than you need to with your credit cards is to avoid user fees and finding credit cards that have little no to interest rates. You have a choice of what credit card you use.
It is up to you to find one that fits these requirements. You should also avoid credit cards that have two-cycle billing. This means that the credit company doubles your interest rate if you did not pay off the bill in full. They calculate the new interest fee and that is what you are charged on your next bill, not the original interest rate.
Companies that say their fees are negotiable usually do not have low fees. Also avoid credit card companies that constantly slap on service finance charges. These types of charges are usually made up charges, and they do it in the hopes that the account holder won't notice them.
When you notice finance charges ask your bank or creditor what the finance charges are for. Most of the time they will take the fee off for free or at least reduce it quite considerably. If they are sticklers and acting innapropriate towards charging you unfair prices, stop using their company. Go with someone else. Most credit card companies allow you 25 days to pay off your credit bills. If you do not pay it off within this amount of time your interest rate may become higher.
Another thing to watch for with credit cards are the grace period, or pay period. Normally the credit card company will allow you 25 days to pay them back for the expense. However, sometimes they change that period to 20 days instead of 25 if you have a history of paying your bills on time. If you notice this and have a problem with it give the company a call and they will more than likely move your pay period back to the normal period.
If you would like to build credit scores be sure to find one with good service. It is important to find financial institutions that are hoping to improve your credit and happiness. There are plenty of financial institutions out there, so don't stick with one that does not meet your needs.
