Like most things, a credit card can both be your friend and your foe. If you are not very good at balancing your finances and paying off your monthly credit card bills, then you may be having debt problems right now. However, if you have kept your finances up to date and you have no outstanding debts, then you might be one of the few who are heaving a sigh of relief over your financial standing, considering the economic situation right now.
If you are good with your finances, chances are, you will have an excellent credit score. As anyone who keeps track of their finances would know, your credit score indicates how financially responsible you are. For creditors, people with high financial scores are the ideal customers. Keeping this in mind, you should therefore ditch your credit cards that are not offering you the best service when it comes to credit. Shop around for a better deal. Here are a few tips that you can use.
Fees and Interest Rates
If you are using a credit card that imposes fees on you, give it up. As a consumer with a high credit score, you are an ideal customer for most credit card companies, especially during these troubled times. Do not bring your business to a credit card company that has you paying for a service that is offered free by other credit card companies. Do not worry; you will not be exchanging fees for service. Credit cards that carry no fees are just as good as credit cards that carry them.
You would also want to choose credit cards that offer low interest rates. Do not be fooled by low starting interest rates. Some of these rates can skyrocket the moment creditors feel they can get away with it. Good credit standing should make good interest rates much easier for you to get.
Points and Incentives
As a savvy credit cardholder, you might be wary of the points and incentives system of credit cards. They are obviously just another gimmick of the credit card companies to get you to spend more. That may be but the fact remains that earning points whenever you use your credit card is a great way to get something back every time you put money out.
Incentives are also another great way to get something extra out of your credit card spending. Try and align the incentives to something that you use every day. For instance, a credit card that gives fuel purchasing incentives might be good for you if you drive to work daily.