Credit Card Check-Up

Pop quiz: What is the interest rate on any one of your credit cards? No peeking at your statements! Stumped? You're not alone.  As much as Americans like to use credit cards, we don't really pay much attention to their rates and fees. An initial glance of the disclosure when applying for a new account is the most attention most credit card terms receive. How do you know that you are really getting the deals you deserve?

Give your credit cards a quick check-up today! You may find that your interest rates are higher than they should be or that you've been paying an annual fee that you didn't know about. Here are the steps:

1. Make a list of all your credit cards - Don't forget to include cards that you share with a spouse or use at work. Any credit card that appears on your credit report should be included in this list.

2. Investigate your rates - Credit card statements must include an explanation of your finance charges. This is true for online and mailed statements. Your annual percentage rate (APR) should be listed fairly clearly in a chart similar to this:

 

Your credit limit should also be fairly easy to find on your credit card statements. Finding a list of the other interest rates, fees and costs for your account is going to be much trickier. Search your online account first, if that doesn't work you can call your creditor to ask or look for the credit card in Credit.com's easy comparison listings.

3. Write down each account's terms - Next to the each credit card on your list make note of the following fees and rates:

• APR
• Annual Fee
• Credit Limit
• Late Fee
• Overlimit Fee

4. Compare your rates - If you know your credit score, you can pretty easily evaluate if the rates you are receiving are fair. If you don't know your credit score, click here to estimate your score for free.

If you know you have a good credit score (above 700) most of your credit cards should have an APR in the 10-15% range. You shouldn't have any annual fees (except for some rewards cards) and your credit limits should be in the high thousands range.

If your credit is decent but not great (600-700) your APR's should be in the 15-20% range. You may have lower credit limits or some annual fees. If you have credit score problems (below 650) your credit card rates may be as high as 30% with expensive fees and low credit limits.

5.Take action - If you find out that you're not getting the credit card APR or fees you deserve, call your creditor and request a change. You may be able to lower your APR, remove an annual fee requirement or increase your credit limit just by asking. One simple phone call could save you a lot of money on your credit cards. If you can't make changes to your credit cards, you can always switch to another account that has better rates and fees.

Give your credit cards a check up today! Feel free to report your results or ask questions in the comments section below.

Comments

[Crystal Moon-Baker]

After reading this helpful information; I contact all of my Credit Card Company and request for better rates and fees. With my surprise I qualify for above 700 rates 10-15% not the 15-20%.
Thanks a lot; I wouldn't never have request for this change without this newsletter.

[EmilyPeters]

Great Job Crystal!

[ebony]

2 of my credit card co are charging me fees for things I cant even say are true "my records werent to good at the time". When I spoke to a rep for both co they said they cant remove the fees . I refused to pay the fees and just pay the min every month about three months now. Every statement I receive has my payment listed and another fee. Both credit cards are over the limit now and fees are continually added on what can i do.