Receivables Performance Management: 5 Things You Should Know About Credit Cards
Receivables Performance Management: 5 Must Knows About Credit Cards
Before you apply for a credit card, it’s good to know what your options are. Receivables Performance Management works with individuals who get into debt every day, which often comes about from mishandling credit cards.
Many of the people we run into didn’t know any better when they applied for credit cards, which leaves them vulnerable to being taken advantage of or falling into a dire situation, which can lead to crippling debt.
We’re here to work with folks from all walks of life in order to settle outstanding debts. We never lose sight of the human element, which is why we also provide educational materials to help the people we come into contact with better handle their finances, so getting sent to collections doesn’t happen again.
Read on for by Receivables Performance Management’s info on some things you should know before you apply for a credit card, that way, should it be necessary for you to get one, you sign on the dotted line in a situation that is best for you.
1.) Creditors Are Competitive with Each Other
Think of creditors as companies vying for your business (your money, essentially). This means that they have to be competitive with one another, and that one will likely try to offer better packages, lower interest rates, no annual fees, etc.
2.) Watch Out for Rewards Cards
Generally, rewards cards are going to come along with a higher interest rate than non-rewards credit cards will. 17.64% is the average rewards card interest rate, while the non-rewards card average is 15.48%. That can add up over time.
3.) As You Go Along, Rates and Fees are Negotiable
You should always ask for lower interest rates, once you establish a strong relationship with your creditor. If you carry a zero-to-low balance, pay your bills on time, and become a valued customer, then you can negotiate some wiggle room.
4.) You Can Get Extra Protection
Make sure that your card has theft protection, protection against non-delivery of items from a vendor, even extended warranties on things like electronics. If you travel a lot, you can make adjustments so that you’re protected – and even experience some perks as well, like insurance. Some cards even have price protection, which makes up for the difference if certain items you’ve purchased drop in price.
5.) Know Your Cards Fees
Credit cards can often charge reward redemption fees, protection fees (in case you’re ever unable to pay your bill due to unemployment, for instance), annual fees (often charged to your card randomly once a year), foreign transaction fees, cash advance fees, overbalance fees, and more. Just make sure that you know exactly what potential fees you agree upon before you start charging on it.
Bonus: Be Wary of Freebies
Many credit cards come along with some tempting short-term benefits – like maybe frequent flyer miles (if you charge up to a certain total by a certain time), token gifts (often something underwhelming, like a free T-shirt), temporary 0% APR, and more. Think of it as a creditor peacocking you, trying to lure you in. Always make sure you know what the relationship is going to be like for the long haul, because that’s what you should be looking to do with your creditor – establish a good, long-term relationship.
We hope some of this helps you on your quest to financial freedom. Contact Receivables Performance Management today if you’re tired of wondering about an unsettled debt. We’re the ethical accounts receivable management solution!