Now more than ever, with credit card companies slashing limits and raising rates, as consumers we have to take the extra step of protecting our plastic. One way to do that is simply to keep the credit card issuers happy – and maybe even make them some money in the process.
John Ulzheimer of Credit.com says you can generate revenue for credit card companies simply by using your card. It doesn‘t mean that you have to get into debt for them, just use your card for normal purchases like gas and groceries and pay it off at the end of the month. The merchants pay the companies a “interchange fee” every time you swipe, and it’s no skin off your back.
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You can also protect yourself by maintaining solid credit scores (700-plus range) and avoiding – at all costs – cash advances. These usually have higher interest rates and signal to the card issuers that you are having trouble making ends meet.