Trying out a new credit card is like driving a car for the first time: just as you adjust your seat and mirror, find the emergency brake, or fiddle with the air conditioning controls, you’ll want to tweak the settings for your new card before you start spending. Here is a checklist of things to do when getting a new credit card.
Activate your card
Seems obvious doesn’t it? Well, not everyone: I made the mistake of tearing open the envelope for a new card, walking off to buy something and having my card rejected right at the counter. It used to be more tedious to activate cards over the phone with a customer service representative, but the process is now automated and only takes a few minutes by phone or online registration (a URL should be on the sticker or in the letter that came with the credit card) .
Destroy your old card after the new card is activated
If your new card replaces an old one, you can also cut up the old credit card right after activating the new card to avoid identity theft. Make sure you cut up the card including the magnetic stripe and chip as thieves can steal information from either.
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Set up mobile banking
As long as you follow your lender’s instructions on how to download their app, it should be as safe as browsing their website in a browser. The main benefit of mobile apps is convenience (I often pay off my credit card right after purchase so I don’t forget), but the added security of push notifications that let you know if your card is being used without your permission is too Super. You will also likely check your account balance more regularly.
Call customer service to confirm the card’s bonus terms and conditions and adjust your billing cycle
Many cards offer a cash back bonus if you spend a certain amount of money within a few months. The problem with this is that once you have the card, the bank’s message about bonuses is not always clear. When I signed up for a Bank of America Cash Rewards card, there was nothing on the website or in the app that said, “Hey, the bonus is active, you’ve got so much to spend and so many days to spend.” Also delayed Often times, once you hit the target, which can make you a little paranoid about somehow missing the spending target.
So before you spend thousands of dollars chasing a bonus, contact a customer service representative to determine the bonus amount, the spending target, and the actual start date of the offer (this should be the activation date, but that is not always the case).
After all, you may want to align the billing cycle with a date that works best for you. One trick that will help your credit score is: Confirm the completion date of your credit cardwhere your balance will be reported to the credit bureaus. Knowing this date will allow you to time your payments so that the reported balance reaches the lowest total possible (for me it is in the middle of the month after payday). This way, you are using up as little debt as possible, which is good since the amount of available credit that you are not using is 30% of your credit score.
Set up automated payments
The downside to credit cards is that they come with ridiculous late fees and interest rates, so you want to make consistent, on-time payments for any outstanding amounts you might owe (and besides, it helps with your creditworthiness, do so).
Since it’s easy to forget and miss a payment, set up automated payments through your checking account, either in the bank’s app or on their website. You can even set up these payments to settle the full balance each month – whatever that is at that point in time. The only risk with automated payments is overdraft fees, so you still have to keep track of your checking account every month.
Activate your rewards
Cash back cards have often increased the rewards based on different expense categories, such as: B. 3% cashback for online shopping versus 1% for all other expenses. Since reward cards often contain multiple categories with tiered rewards, you should log into your card’s app or website and customize these categories to suit your spending habits. Your card may also have other benefits such as bank statements or short-term coupons that need to be activated before you can claim them (look for the Rewards tab on your lender’s app or website).
