I don’t like credit cards. They’re a dangerous trap, especially for the young. Many smart people disagree with me, though, and have learned to use credit cards to their advantage. This guide provides solid credit card information so that you can make smart choices.<\/p>\n
I’ve structured this as a series of questions and answers. There’s sure to be a lot missing. Please let me know what else should be included here, and I’ll add it. Let’s start with the big question:<\/p>\n
If you think you might need a new credit card, be sure to read Nine Things to Consider When Choosing a Credit Card. This short checklist is an excellent way to make sure you don’t forget something important that can come back to burn you later. Also be wary of stupid credit card tricks.<\/p>\n
Credit card applications are full of legalese. Even the ads can be confusing. If you’re drowning in the jargon, this glossary of credit terms may prove useful.<\/p>\n
It is, but there are small “gotchas” you should watch for. Many companies charge a processing fee if you use a credit card. (And the IRS charges such a fee if you use a card to pay taxes.) For more information, read about the potential downsides to using a credit card to pay monthly bills<\/a>.<\/p>\n Here’s a summary on how to cancel a credit card<\/a><\/em>. The short version: Do not cancel a card unless it has a zero balance. Call the credit card company. Some will let you cancel without hassle, but most will attempt to sweet-talk you into staying longer. If you intend to keep one or more cards, and if the offered upgrades make the card you’re trying to cancel better than one you plan to keep, you may want to cancel another card instead. Write down the name of the person you talked to and what time you talked with them. Simple.<\/b><\/p>\n Call your credit card company. Politely ask them to waive the fee. If you don’t have a history of trouble, they should honor the request. If they don’t, then threaten to cancel the card. Be polite but firm.<\/p>\n Use optoutprescreen.com<\/a>, a site that lets you opt out of credit card offers for either five years or forever. I was worried that this was some sort of scam, but it’s not \u2014 the Federal Trade Commission endorses its use.<\/p>\n There are no consistent answers, though most sources say “between five and ten” (which is far too vague for my tastes). Read more about how many credit cards people carry<\/a> in an earlier entry.<\/p>\n Several personal finance bloggers I respect game the system, using 0% credit card rates to carry high balances and actually make<\/i> money. This seems an invitation to disaster, but if you feel you have the discipline to pull it off, check out FiveCentNickel’s example of credit card arbitrage<\/a>.<\/p>\n A recent federal law gives consumers free access to their credit reports. (It costs extra to obtain your credit score.) The only site you need to know about is AnnualCreditReport.com<\/a>. This is an official, government-approved site.<\/p>\n The Federal Trade Commission offers a guide to disputing credit report errors. It’s really just a three-step process:<\/p>\n For more information, read the entire government publication.<\/p>\n Your credit score is based on your payment history, the amount you currently owe, the length of your credit history, the types of credit you use, and your recent request for credit. For more information, check out my anatomy of a credit score<\/a>.<\/p>\n<\/span>How do I cancel a credit card?<\/span><\/h2>\n
<\/span>How can I get a late fee waived?<\/span><\/h2>\n
<\/span>How do I stop credit card offers from coming in the mail?<\/span><\/h2>\n
<\/span>How many credit cards to people carry?<\/span><\/h2>\n
<\/span>How can I play the credit card arbitrage game?<\/b><\/span><\/h2>\n
<\/span>How can I get a FREE copy of my credit report?<\/span><\/h2>\n
<\/span>How do I dispute credit report errors?<\/span><\/h2>\n
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<\/span>How does a credit score work?<\/span><\/h2>\n
<\/span>How can I improve my credit score?<\/span><\/h2>\n