The very talented CM over at CreditMattersBlog.com has a weekly segment entitled ‘10 Questions and Answers at CreditMattersBlog.com’ in which he answers some of his readers more poignant questions. I like the idea so much that I’ve decided to steal appropriate it for Master Your Card.

Like CM, I don’t collect any personal information, but I can see the search terms that people use to find the site using Google Analytics (free, and highly recommended if you’re a webmaster!). Whenever I happen across 10 or so questions in my traffic logs I’ll paste them up here along with a brief but (hopefully) helpful answer.

So without further ado, here are the first 10 Questions and Answers from Master Your Card readers. By the way, I’m not an expert but if you ever have any credit or finance related queries please don’t hesitate to shoot them over using the contact link in top right hand corner.

Q: How do I get a lower interest rate?

A: If you have consistently made your credit card payments on time and haven’t exceeded your credit limit then you should call your credit card company and simply ask for a lower interest rate. If they’re unwilling to lower your interest rate then shop around for a card with a lower rate. It won’t be hard to find another card with a better interest rate if you have a good credit score.

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Q: When is a credit card payment considered late?

A: Technically, your payment is considered late if it isn’t received the very next day after the payment is due. Some credit card companies offer a short grace period of a few days (generally no more than 25) after the payment date when they won’t charge a fee or raise your interest rate, but not every company does this so don’t assume you credit card company offers a grace period. Find out by speaking to a customer service representative at the credit card company. Even if a grace period is offered, it’s not a good idea to consistently send your payment in late as a habit, because you might find the grace period revoked.

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Q: What is a charge-off?

A: A charge-off is when the lender essentially gives up at ever receiving payment on your account. You won’t receive calls from the credit card company anymore, and the account is written off by the lender. This doesn’t mean you’re off the hook for the debt, though, because the account is usually sold to a collection agency that will still aggressively pursue payment. Charge-offs are not good for your credit score.

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Q: How do I raise my limit?

A: Sometimes credit card companies will raise your spending limit, even if you don’t want them to. If you would like your limit raised then call your credit card company and ask for a higher limit. They will take a look at your account and your payment history and might even glance at your credit report before granting the increase. If the company is unwilling to increase your spending limit you can apply for a different card with a higher limit.

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Q: How do I get a credit card?

A: You have to actually apply for a credit card before you can get your hands on one. Even if you are sent a preapproved offer through the mail you still need to go through the application process. Your chances of getting a credit card are greatly increased if you have a steady source of income and a decent credit score. If you have absolutely no credit, apply for a credit card designed for people with little or no credit and then pay consistently. You’ll soon be able to get a credit card with a lower interest rate and a higher spending limit.

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Q: What is APR?

A: APR stands for Annual Percentage Rate. This is the interest rate that your credit card company charges you for your balance, after any grace period, plus whatever fees are imposed. The lower your APR the better, because this ultimately dictates how much money you’ll pay out in interest on any balance you carry.

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Q: How do I find out what my interest rate is?

A: Your interest rate should be listed on your credit card statement. If you can’t find it, call your credit card company to find out. Since credit cards usually have variable interest rates – some dictated by an index and others dictated by your payment history – your interest rate might change quite often.

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Q: How does my credit card company calculate my minimum payment?

A: Your minimum payment is based on a percentage of your balance. Some credit card companies will give cardholders “months off” where the cardholder is not required to make any payment whatsoever during that particular billing cycle. No matter how low your minimum payment is, however, most financial experts agree that consistently making nothing more than the minimum payment on your credit cards will result in paying a great deal of interest over time.

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Q: How do credit cards affect my credit score?

A: Credit cards can be a huge boost to your credit score if you manage your account well, such as making timely payments and not exceeding your credit limit. Any credit card you have, whether you actively use it or not, will have an effect on your credit report. The longer you maintain a credit card the better, although too many open credit card accounts can actually start to lower your credit score. The bottom line is this: Manage your credit card accounts wisely and don’t open more accounts than you need, and your credit score will reflect this positively.

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Q: What kind of fees should I expect with my credit card?

A: The amount of fees you pay on a credit card depends on the type of card you have. You can almost always expect to pay costly fees any time you deviate from the original agreement (such as making your payments late or exceeding your spending limit), and there are also other fees that may apply to balance transfers, cash advances, using an ATM, and any other number of transactions. Request a Schedule of Fees from the credit card issuer so you can get a good look at the fees you are subject to.

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That’s it for round 1 guys and girls. Please keep those questions coming!

Related posts:

1. Top Ten Reasons to Pay off Your Credit Card Debt
2. 11 Credit Card Terms Everyone Should Know!
3. Different Ways of Calculating Interest
4. Five iPhone Apps to Help You Master Your Card
5. Five “Convenient” Services Offered by Your Credit Card Company That You Should Think Twice Before Accepting