6 Little-Known Credit Card Tips

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Banking is a very competitive industry with most banks going the extra mile to attract and retain customers. This involves offering various services and offers such as low-interest rates and rewards that you can make use of to get the most out of your credit card.

Here are six little-known benefits that you can utilize today with a quick phone call to your bank that can go a long way in improving your credit health.

Change the Due Date of Your Credit Card Bill

One of the most important factors for your credit score is your on-time payment history. In the case that you are using multiple credit cards, try calling your bank and synchronizing all of your payment dates to the same date to ensure convenient and timely payment.

Enforce Limits on Your Spending and Cash Advances

Your credit score has a strong correlation with your credit card usage rate with a recommended ratio of below 30% between your balances and credit limits for optimal credit health. To keep your credit utilization in check, you can keep limits on the purchasing and cash advances that are allowed on your credit card.

Increase Your Credit Limit

Another way to decrease your credit utilization rate is by increasing credit limits. In the case that you have low credit limits and rarely carry a balance, request an increase to the limit on your cards.

Ask for A Reduction in Interest Rate

If you have been a long-time customer at your bank with a solid history of on-time payments, try requesting for a lower interest rate, especially if you have a history of making on-time payments. This can lead to considerable savings in the case that you ever need to carry forward a balance.

Avoid late fee

In some cases, banks may be willing to waive a late fee, especially if it is the first time that you are unable to pay. Try explaining your situation to the bank and in some cases they may help you out.

Get Your Card’s Annual Fee Waived

In the case that you are planning to cancel your card to avoid your annual fee, first, call your bank. It can adversely impact your credit score, and most banks are open to waiving the annual fee or offering a statement credit or loyalty rewards to keep you as their customer, especially if it is your first year.