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Best credit cards FAQs

How can I make the best credit cards work for me?

Some tips on getting the most out of your credit card:

Paying off your outstanding balance before the grace period ends, and repaying your charge in full before the end of the grace period will keep interest charges out of your account.
Building or re-establishing credit by opening a small account on a secured or credit-building credit card. Make only small purchases that you know you can repay in full.
Always read the full terms and conditions of a card before submitting an application, and make sure you understand what you’ve read.
If you have a history of good credit, call your card company and try to negotiate a lower APR.
Many rewards cards offer extra bonuses for purchases at certain locations. Use your card at those places to accumulate more reward points.
The best credit cards are especially useful in emergencies. Don’t max out your cards—you may need to use them unexpectedly.
A pre-paid credit card can be a great way to give teenagers money for emergencies while ensuring they can’t overspend.
Many cards offer you the opportunity to transfer an existing balance onto your new card at little or no APR. If you have a pre-existing balance, consider transferring it within your card’s introductory period.
Being aware of the fees that your card may charge—for instance, many cards issue a finance charge on cash advances. Cash advances also typically carry higher APRs than do purchases.

What do terms for the best credit cards really mean?

Specifically, terms are the contracts to which the customer agrees when accepting the best credit cards or charge card account for you, which detail both the consumer’s and creditor’s responsibilities. Following are some of the most common things you'll see on a credit card application.

Annual Percentage Rate (APR)

The APR is the cost of your credit. It’s expressed as a yearly rate—the lower the APR, the less interest you pay. Many of the best credit cards offer an initial period (usually around six months) with a lower APR.

Some of the best credit cards are fixed rate, meaning that the APR stays the same. Others are variable rate, which means that the card's issuer can change your APR as national interest rates or other indexes change. These changes raise or lower your account’s finance charges. If you opt for a variable rate card, the issuer must disclose to you that the rate may change. The issuer must also tell you other information, including which index is used to determine your rate change, what additional amount (the margin) will be added to your rate, and how often your rate may change.

Free Period / Grace Period

Many of the best credit cards give you the opportunity to avoid finance charges on your credit card purchases by offering a free or grace period. This is the time between when you make a credit card purchase and when the card company begins charging you interest on that purchase. Paying your card balance in full before the grace period ends prevents finance charges from being added to your account. Take advantage of this benefit.

Annual Fees

Some of the best credit card issuers charge annual participation or membership fees. These fees typically range from $25-$50 for standard cards and $75 or more for gold or platinum cards.
Transaction Fees and Other Charges

Other costs may be included in your credit card. Getting a cash advance, making a late payment, or exceeding your credit limit are some of the most frequently occurring charges to a credit card account. Some cards will charge a monthly fee even if the card isn’t used.

Customer Service

Most cards offer 24-hour toll-free customer service telephone numbers.

Special Offers and Benefits

The best credit cards may offer additional perks, for example, discounts, rebates or cash back offers. Many cards offer bonus points or frequent flyer miles with spending. Card issuers may also offer insurance and credit card protection. Companies may charge additional fees for some benefits.

What are my consumer rights?

All consumers are given an equal chance to receive credit under the Equal Credit Opportunity Act (ECOA). This does not guarantee you will receive a credit card just because you applied for one; factors such as your income, expenses, credit history and any debts you might have will be considered.

Applying for Credit

A creditor may not ask you for certain information such as age, sex, marital status, race, and national origin. There are certain exceptions where age may be a factor in determining your credit eligibility. A credit card issuer may not assume that a woman will stop working to have or raise children, for example.

You do have the right to know whether your application is accepted or rejected within 30 days of filing a complete application. If your application is rejected, you have the right to know specific reasons for the rejection. Acceptable reasons are specific and may include that your income is low or that you haven’t been employed for a long enough period of time. Vague, indefinite reasons are unacceptable and illegal. The creditor must tell you the specific reasons for your rejection or give you a notice of your right to learn the reasons if you ask within 60 days.

A creditor may not treat income obtained from certain sources differently than “regular” income.
Some of these sources include:

Public assistance
Part-time employment
Pension or annuity
Retirement benefits programs
Alimony or child support (you may be asked to prove that you have received this income consistently)
Special Credit Information for Women

You have the right to have credit in your birth name, your first and your spouse’s last name or your first name and a combined last name. Women often lose their credit histories when they marry and change names, and some creditors report shared accounts in the husband’s name only. It’s important to make sure all your relevant credit history is in a file under your own name in case of marriage, separation, divorce, or widowhood.

Using credit card online account management.

There are a lot of consumer advantages to shopping online. You can shop anytime and from anywhere. Your purchases are delivered right to your door. Many online shopping sites offer significant discounts on their products. Yet, you may have some concerns about using your credit card online. Is your personal information really secure? Who gets to see it? What happens if someone disreputable gets hold of your account number?

First, be aware. Using your credit card in the best manner is your best defense against online credit card fraud. Second, check your credit card’s policies. Many of the best credit cards offer protection against unauthorized online purchases, so even if someone does steal your information, you may not be responsible for what they’ve spent.

While online shopping may not be 100% safe, there are a number of steps you can take to ensure that your experience is a positive one. Here are some tips to help you decide when and how to use your credit card online.

Always make purchases from reputable dealers. If you’re not sure a website is legitimate, don’t buy from it! Some disreputable sites “mirror” reputable ones in order to scam consumers. Check the web site’s address (URL) in your browser to be sure you’re where you want to be. If something seems “fishy,” leave the site!

Enter your card information only at sites using secure servers and/or data encryption. To make your purchase secure, a reputable website will encrypt, or scramble, your data before it’s sent over the Internet. That way, unauthorized third parties are unable to read your information. Secure sites will display a locked padlock icon in your browser toolbar, so check for it before making a purchase.
Keep a detailed paper trail. Print out copies of online receipts for purchases. File them with your credit card information, and check your monthly billing statements just like you would for in-person credit card purchases.

Use a credit card rather than an ATM or debit card whenever possible. ATM cards, debit cards, and check cards don’t usually have specific online fraud protection; most credit cards, however, do.

Never give out any information that seems irrelevant to your purchase. For instance, if you’re buying from an online auction, there’s no reason the dealer should need your Social Security number.

Always, always read the fine print and privacy policies before signing up. Many scams lure consumers with offers of free membership trials or other perks. You shouldn’t have to give out credit card information for a free trial period. Be especially cautious with offers that are sent to you via email or that originate in pop-up windows on another website. “Adult” websites are notorious for tricking consumers with free trial offers that turn out not to be free.

If you suspect that your credit card has been used without your consent, immediately contact your card issuer. At the very least, you can block future purchases from that card number. You may not be responsible for all or part of the charges made.

Online shopping with your best credit cards is safe if you’re smart about it. So make informed decisions, and enjoy the freedom that buying online can give you.

How can I avoid credit fraud?

Preventing credit card fraud is easier than you think. While there are no guarantees that you can avoid fraud or theft of your credit cards, these tips will make it more difficult for crooks to aim at you.

Do:
Always sign your credit cards immediately.
Keep a record of your account information in a secure, private place. This should include your card numbers and their expiration dates, as well as contact information for each credit card company.
Carry your credit cards as securely as you can. For example, consider keeping them somewhere other than your wallet, such as a zippered compartment or business card holder. Only carry cards you anticipate using.
Try to keep an eye on your card during transactions, always get it back as soon as you can.
Save receipts to compare with your monthly billing statements, voiding any incorrect receipts.
Destroy carbon copies of your card.
As you would for your checking account, check for questionable charges or other anomalies on your monthly bills. If you find a questionable charge, report it in writing to the card issuer immediately.
Always give your card company advance notice of a change in address.
Cut up old or expired credit cards before throwing them away. Make sure to cut through the account number, shredding any documents containing your account number before you dispose of them.

Don't:
Lend your credit cards to anyone or leaving cards and receipts lying around.
Unless you’re certain you’re talking to a reputable party do not disclose account information over the phone.
Write account information on the outside of an envelope, on a postcard, or over email.
Sign blank receipts or charge slips. Do draw a line through blank spaces on charge slips so that the total amount cannot be changed, as on a check.
Stolen or Lost Cards:

If you know or suspect that your credit card has been lost or stolen, contact the issuer immediately. When you report the loss or theft, you should have no further responsibility for unauthorized charges and your maximum liability is $50 per card. Most, if not all, companies have toll-free numbers to deal with such emergencies on a 24-hour basis.

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