Credit Basics
TIPS: Get the Credit You Deserve Get Your Credit Cards In Shape
By Warren Berry
Sunday, June 19, 2005
“Someone owing $2,000 on a credit card currently has a minimum monthly payment of $40. By next year it will be $80, according to ... [guidelines from the federal comptroller of the currency] - the kind of debt hike that will put stress on American households," warns Robert Lovinger, chief executive of Pay Help Inc.
Watch for higher rates. "A card may give 5 percent interest for a year or 9 percent for the card's life, a great deal, yet it slaps on a penalty if you're even a day late in payment. It also can raise the interest rate you're being charged," reports Andrew Leckey of Tribune Media Services. "Expect this to accelerate as banks seek additional revenue sources."
Shop supermarket-style. Go where you'll get the best deal. "If you have good credit, ask for a lower credit card rate, and chances are you will get it," says Howard Dvorkin, founder of Consolidated Credit Counseling Services (www.consolidatedcred it.org)
"You also shouldn't have allegiance to any credit card, because if you get into trouble, the bank won't have allegiance to you."
