Maintaining High Credit with the Low Rate Credit Card

By Leni Parrish on January 2, 2010

Many people are aware of the high rates that are tagged with credit cards. Because of this, some of them are hesitant to even get one. However, because the credit card industry has some of the fiercest competitions, some companies took the initiative by slashing some rates.

With a low rate credit card, maintaining a good credit line is easier. However, it does not mean that you must abuse its usage. If you are responsible enough in using it, you need not worry about the debts that might plague you.

There are several ways to maximize the capabilities of your credit card. If you follow these steps, you will harvest more benefits rather than headaches from it.

First, do not miss monthly balance payments. Always use a low rate credit card for your transactions and even monthly bills as long as you do not overspend. When overspending, you will not be able to pay monthly dues.

Therefore, you must deal with these payments ahead of time so that you will not be tagged with unbelievably high late charges and interest rates. If you are a good payer, your credit rating will rise, and you will be qualified to avail the credit card firm’s cash return programs as well.

Second, learn how to use the low rate credit card’s cash back programs for your own good and benefit. Normally, an offer like this would give a one-percent rebate from the money that was spent with your charge account. There are some banks who might give 3-5 percent cash back as well. When cash back accumulates, it would be enough to support your payments.

For this to happen, use your card as much as possible rather than paying in cash. Once you engage in this process, you will realize that it is more economical since you can support utility payments with the card’s revolving credit. In return, this will save some cash. However, then again, you will only be able to feel these benefits if the payment is consistent.

Third, it is important to apply for extended warranty coverage options for your card. If you buy an item using a low rate credit card, you will get an additional year of warranty coverage.

Appliance and equipment companies offer this kind of program and you will definitely save time and money if you will avail it. In the event that you purchased an item that turned out to be damaged, this extended warranty lets you replace it for a low or no fee at all.

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