Five Questions You Shouldn't Be Afraid to Ask Your Credit Card Company

Like it or not we live in a credit-driven world. You want to buy a car? You've got to have credit. You want to buy a home? You need good - make that great - credit. And what happens if, heaven forbid, you have a family emergency? You're nowhere if you don't have a line of credit or a credit card.

The problem is that in order to get credit you need to have credit, but knowing where to start can be tough. This naturally leads to our first question, how can I establish credit for myself?

If you are new to the world of credit or if you need to rebuild your credit due to previous financial issues, talk to your bank or credit card company about getting a secured credit card. A secured credit card requires you to make a deposit (usually $250) against which you can make purchases. The deposit acts as your credit limit and as you make payments, your credit card company will report the status to the credit bureaus. You can expect to pay a higher rate of interest at least until you improve your credit history.

Speaking of interest rates, a very important question that many people fail to ask their credit card company is how can I improve my interest rate?

Your interest rate is based on your credit worthiness. If you miss making your monthly payment on this or any other line of credit, you may find your interest rate going up. It's called a universal fault provision. You should double check the terms of your card by contacting your credit card company. You can also avoid problems by paying everything on time. However, you might also try asking your credit card company: what's the best interest rate you can give me?

"My husband and I each have our own credit card, with the same bank. Just one: for emergencies," says business woman Trish. "But I was astounded to find out that his APR (annual percentage rate) was two percent lower than mine. So I called and asked to get the lower rate. They told me they couldn't. I told them I thought they were being sexist, and I was going to move my business elsewhere. And I did."