Become a Credit Card Shark
Don't be a fool when it comes to managing your money
4. Go for zero sooner rather than later. Zero-percent interest rate offers and balance transfer offers are tapering off. As short-term interest rates head higher, it gets more expensive for credit card companies to make such offers. If they do, the time period may be tighter--six interest-free months instead of a year, for example. If your aim is to transfer an existing balance, then stop reading this story and do it now.
5. Carefully consider reward offers. Because zero-percent balance transfers are on the wane, rewards are on the rise as a hook for customers. But airline reward cards most likely have an annual fee of $45 to $90 (newbies who ask can often get the first-year fee waived). Make sure the rewards won't vanish if you don't claim them in a year or two. Five years is a reasonable expiration policy; no expiration at all is even better. You might also check the fine print for the words up to, restricting rewards. That's a common clause. Keep in mind that with a cash reward card, you have to ask for the check. And look into the policy for late payments. American Express, for example, takes away that month's points if you're late and charges $29 to reinstate them.
6. Get rid of your balance. The best way to avoid problems is to pay down your cards, starting with the one with the highest interest rate. Next to "I love you," the three sweetest words in the English language are "No balance due."
PLASTIC PALS
These consumer-friendly websites are chock full of helpful info.
bankrate.com Check out credit card basics, compare rates.
cardratings.com Reviews of more than 1,000 credit card offers.
cardtrak.com Its CardLocator will find plastic that suits your needs.
advertisement
