The Big Sandy Mountaineer -

Getting the most from your credit card

(taken from the Board of Governors of the Federal Reserve System website)

1. Pay on time—Paying on time will help you avoid late fees as well as penalty interest rates applied to your account. It helps you to maintain a good credit record which leads to a higher credit score, thus helping you qualify for lower interest rates. If the due date falls at a difficult time such as before you get paid, contact the credit card company to inquire if they will change the billing cycle.

2. Stay below your credit limit—If you go over your credit limit, your credit card company could charge a fee and increase your interest rate to a higher penalty rate. To avoid going over your limit, keep track of your expenses or check your balance online. Some merchants may 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.

3. Avoid unnecessary fees—In addition to credit card companies charging late payment and over-the-limit fees, they also may charge for cash advances, transferring balances and having a payment returned. Some may even charge a fee when you pay your bill by phone. It is important to pay close attention to the types of transactions that trigger these fees. The fees are disclosed in your credit card agreement.

4. Pay more than the minimum payment—Even if you cannot pay the balance in full each month, try to pay as much of the total as you can. By doing this, you will pay less in interest charges, which leaves more money to spend on other things and, most importantly, you will pay off your balance sooner.

5. Watch for changes in the terms of your account—Credit card companies can change the terms and conditions of your account. If they do, you will receive advance notices about the changes which typically are fees, interest rates, billing and other features. Based on the changes, you may decide you want to change the way you use the card. For example, if the fee for cash advances increases, you may decide to use a different card for cash advances. If you have a card with a variable rate or if you have an introductory rate that is ending, be aware the credit card companies are not required to send you a notice about raising your interest rate. Track your interest rates on your monthly bill. Read you bill carefully and take note of any changes.

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Additional information is available by contacting Janell at the Chouteau County Extension Office at 622-3036, janellb@montana.edu or in the Chouteau County Courthouse at 1308 Franklin St in Fort Benton.

Montana State University, US Department of Agriculture and Montana Counties Cooperating. MSU Extension is an equal opportunity/affirmative action provider of educational outreach.