4 Uncommon Credit Card Strategies
Much credit card wisdom and usage of the past is set to turn on its head when the bulk of the CARD Act laws go into effect at the end of the month. Since strategies and advice held dear is now considered outdated, it’s time to start paying attention to credit card usage in ways we once thought harmful.
Put charges on your cards. You’ve got to keep the cards you need alive. Banks view inactive accounts or consumers as “deadbeats” and will issue a warning to drop your account if you show zero signs of life with your credit lines. Charge small amounts and pay in full before the bill even arrives.
Rack it up on your best card. Your best credit card refers to a card that offers rewards. For example, a typical gas rebate credit card offers a 1-5% cash back rebate at the pump and with other eligible purchases. This is Tip #6 recommended in a Bankrate.com article on top ten credit moves for 2010.
Open up another card. This time at your local credit union, where the APR is typically far less than a big bank. There are many other perks (translation: lack of fees) such as no charge for transferring existing balances onto a new card.
Ask for an increase in your credit line. And without any intention to use it. What you’re shooting for is to improve your credit-to-debt ratio. The less you owe and the higher the amount of credit you could tap into, the better off your credit score is.
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