The Beginning of the Credit Card Era

In 1951, Diners Club issued the first credit card to 200 
customers who could use it at 27 restaurants in New York 
City. From that modest beginning, credit cards have become 
an indispensable part of modern life. Consumers rely on credit 
cards to help them achieve their lifestyle goals by letting 
them take advantage of special bargains, spread payments out 
over several months, and provide cash in emergencies. Credit 
cards have become so widespread that they are often accepted 
as a piece of primary identification.
 
Getting the most from your credit cards involves four main 
steps:
 
 * Use your credit cards wisely.
 * Protect yourself against fraud.
 * Review your credit history regularly.
 * Get the right card for your needs.
 

Use your credit cards wisely

Follow these simple tips to get the most from your card.

Tips:
 
Pay your credit card bills on time. This is the single most 
important thing you can do to preserve and enhance your credit 
rating. Always pay at least your minimum payment and allow time 
for your payment to reach the company if you are using the mail.
 
If possible, pay off your balance in full each month. If this 
is not possible, then make as large a payment as you can 
comfortably afford. Paying off or paying down your balance is 
a sound financial move—one that will save you money on interest 
charges.
 
If you can’t pay off your balance in full, then slow down on 
your credit card use for the next while. Take time to step back 
and have a careful look at how much you earn and how much you 
spend each month. A little budgeting can save you big money 
down the road.
 
Check your statement carefully each month. Review your statement 
carefully. Do all the charges look correct? Have any required 
credits been applied? Are there any unusual or unexpected 
charges? Your credit card company will correct legitimate 
errors, but only if you bring them to their attention in a 
timely manner before you pay your bill.
 
Transfer your balance to a card with a lower interest rate. If 
you have two or more credit cards with outstanding balances, 
consider moving the outstanding balances to the card with the 
lowest interest rate. You will save money each month and 
simplify your record keeping by receiving only one bill.
 
Negotiate for a lower rate with your credit card company. If 
you have a good credit history, you are a valuable asset to 
your credit card company. Call them and seek ways to lower your 
interest rate. This is often possible, but never advertised. If 
the interest rate you are currently paying is very high, imply 
you may cancel the card and go with a competitor unless they 
adjust your rate downward. It doesn’t hurt to ask, and you may 
be surprised at the results.
 

Protect yourself against fraud

While credit card fraud is a problem, here are a few simple 
steps you can take to greatly reduce the risk of becoming a 
victim.
 
Tips:
 
Sign new cards immediately. When you receive your new or 
replacement card in the mail, sign it, in ink, right away. If 
it is a replacement card, destroy the old card by cutting it 
into many small pieces.
 
Shred old credit card receipts. You can purchase an inexpensive 
paper shredder at an office supply store. All old receipts with 
your credit card number and any unneeded documents with your 
social insurance number or other sensitive personal information 
should be shredded before disposal. This prevents the common 
practice of criminals going through the trash to find receipts 
and stealing your identity
 
Never fax your credit card number. Your credit card number can 
lie for hours in the fax basket at the other end. Anyone passing 
by can record your number and begin to use your card number 
fraudulently. It is even possible for criminals to intercept 
your credit card number while the fax is in transmission.
 
Use caution when giving your credit card number out on the 
phone or on the Internet. Only give out your credit card number 
on telephone calls you initiate to business or organizations 
you trust. Never give your number out to callers who call 
unannounced, no matter how legitimate the call sounds.
 
On the Internet, look for an Internet address that begins 
https:\\. The “s” indicates that it is a secure connection and 
a small padlock symbol should appear in the bottom right hand 
corner of your screen, indicating it is safe to transmit your 
credit card number.
 
Call your credit card company instantly if you suspect trouble. 
All credit card companies have 24 hour lost and stolen help 
lines. If you lose your wallet or purse or have it stolen, call 
without delay! Much fraud happens within the first hour or two, 
before the victim realizes the cards are missing. Your credit 
card company will block your cards from being used and stop you 
from being responsible for any charges thieves incur.
 
Take advantage of any security features your card offers. Many 
newer cards have the option of including your photograph on the 
card. This is excellent protection and is highly recommended.
 

Review your credit history regularly

After you have obtained the best credit card, and are using it 
wisely, review your credit history on a regular basis. This 
helps ensure your history is accurate and that any issues have 
been resolved to your satisfaction.
 
North America has three national credit-reporting bureaus. Your 
credit rating is held at one or more of these bureaus. When 
checking on your rating, be sure to contact all three, as your 
rating may be held on file at more than one bureau. The three 
national credit bureaus are Equifax, Experian, and Trans Union. 
Check the Yellow Pages, under Credit to find the numbers in 
your area.

 
Get the right card

With all the choices in cards available, chances are good,very 
good, you can find a better card for your needs. Today’s cards 
can save you money, offer better features, and even support a 
cause you believe in. Here are some tips on finding the right 
card and where to check that you have the best card for your 
needs.
 
Tips:
 
4 Be alert for companies offering a great interest rate for 
transferring your existing balance to their card. Usually these 
rates are only in effect for a short time, often six months. 
At the end of this time, the rate can revert to a much higher 
permanent rate. Keep your eye on the Annual Percentage Rate 
(APR); this is the figure that counts in the long run.
 
Lower is better: read the fine print and find the Annual 
Percentage Rate (APR). This is the interest rate the companies 
charge you if you carry a balance. You want the lowest rate 
possible; as each percentage point drop will save you money on 
the months you have an outstanding balance.
 
Nothing can be better: Try for a credit card that does not 
charge an annual fee. Many credit cards charge you a fee each 
year to use their cards. While this may be offset by other 
benefits the card may offer, you can find cards that do not 
charge this annual fee. Why pay for the privilege of using a 
credit card when you don’t have to?
 
Explore the options: Today’s cards offer a wide range of 
excellent features, including frequent flier points, programs 
that bank points toward a new car, and cards that support 
charitable organizations. Other options worth having include 
car rental insurance coverage, trip cancellation coverage, and 
extended warranty coverage.