11 Steps to Ensure that Your Credit Card Remains Free

Despite its many benefits, most consumers shy away from using a credit card because of the high costs and fees associated with them. However, if handled carefully, this piece of plastic can prove to be more of an asset and less a liability. Credit cards not only help you establish credit; they can also assist you in obtaining funds when you need them the most. If you manage to keep your credit card free, you'll be surprised at how well it works to your advantage. To keep your interest rate and fees low, and get the most out of your credit card, all you need to do is follow these steps.

1. Choose the Best Card Available

Many consumers tend to apply only for pre-approved offers that come to them in the mail. Unfortunately, these usually charge high fees and interest rates. The best way to select a card that's most appropriate for you is to research them online. Shortlist the ones that have the lowest fees and rates, check out their qualifying data, and apply for those for which you are eligible. For more information about how you can do this, click here.

2. Select a Card with No Annual or Monthly Fees

This is important because if your card comes with such fees, you may end up paying charges without using it even once.

3. Ensure Your Card Has a Grace Period

The grace period is the amount of time that you have to pay off your balance before you start accruing interest or a finance charge. If your card doesn't have this, you'll start incurring interest from the day that you make your purchase.

4. Pay on Time

We just can't stress on this enough. You should not only pay the minimum amount due on time to avoid being charged a late fee, but you should also try to pay your balance in full to avoid interest charges.

5. Don't Exceed Your Limit

Stay below your approved limit to steer clear of over-the-limit fees. Ignoring your limits can not only damage your credit score; it may also cause your issuer to raise your interest rate.

6. Keep Credit Utilization Below 30%

Credit utilization is the amount you owe on your cards compared to your total approved limit. If this ratio is consistently above 30%, your credit score may take a hit and the card company may hike your interest rate.

7. Avoid Returned Check Fees

This fee is charged when you write a check for your credit card payment and it bounces. For most credit cards, the fee varies from $35 to $39.

8. Steer Clear of Cash Advances and Balance Transfers

These actions incur automatic fees that are usually a percentage of the transaction. Cash advances are especially dangerous as they start accruing fees immediately.

9. Watch Out for New Fees

Regularly scan your statements for new fees and read your mail carefully for the latest updates. Sometimes credit card companies may include new fees in small amounts on a monthly basis. While a $15 monthly fee may not sound like much, it can translate into an annual charge of $180.

10. Take Immediate Action

If you find that your issuer had increased your interest rate without any plausible reason, politely request that your rate be set back to what it was. Ensure that you get the agreement in writing. In case they refuse to do so, find out whether another issuer is offering a better deal, and then inform them about it.

11. Examine Your Card Agreement

It is imperative that you do this, as many card companies charge additional fees. For example, you may be charged a credit limit increase fee when you request a limit raise.

As long as you follow the steps outlined above, you can make sure that your card remains interest-free for the specified period. However, given that most issuers have their own eligibility criteria, it may happen that despite your best efforts, you are unable to qualify for a card at low interest rates. For such individuals, Fund&Grow has a great solution. In lieu of a flat fee, our team can help you obtain credit card funding from $50,000 to $250,000 with 0% interest. All you need to do is call us at (800) 996-0270, and we'll take care of the rest.