Posts Tagged ‘banking’
Wednesday, May 19th, 2010
Just ask yourself: is the credit card work for me or am I working for the credit card? Most people’s answer to that question will depend on how they use their “plastic friend” as credit cards are sometimes known. As many people with huge credit card debts will tell you, they didn’t realize that things were so bad until too late, because most credit card companies try so hard to make themselves seem like a charity. Well, take it from me, they aren’t.
But this is not an anti credit card campaign. They have their benefits - in America, for example, if you want to rent a car, you have got to have a (major) credit card. But, consider this scenario:
You get an offer in the post that sounds good, perhaps it’s a new TV or fridge. But it costs $2,000. You have a credit card with a $5,000 limit, so you go out and purchase the item right away. Often, this is how your repayment schedule will work out. Most credit cards charge a minimum percentage of the total balance (usually 2 percent) per month. Assuming the interest rate is 18 percent and you choose to repay the minimum amount of $40, $30 of that will go towards interest and only $10 will come off the $2,000!
Does it sound worrying? Well, it doesn’t need to be. The moral of the tale is to use the credit card very, very carefully.
Credit Cards Dos and Don’ts
There is a lot of truth in the saying that credit cards are not a substitute for not having money. Every time you use a credit card this should be the theme song playing in your mind. Furthermore, you would be wise to remember the following as well:
Dos.
1] Always plan for the purchases that you have to have and those that you only want. You need the essentials, and you want everything else. The ability to make a distinction might help you plan wisely.
2] If you are caught up in financial difficulties, it’s always a good idea to talk to the credit card supplier who might re-schedule your repayments. If you simply default, that only builds up a bad credit history for you and you could find yourself being denied credit in the future.
3] Unless it is an emergency, staying within your credit limits will help you a lot. If you must spend over the limit, ensure you are within manageable levels, say within 30 percent.
4] If your mailbox is full of information on credit cards with more favourable deals than you currently are enjoying, you could approach your issuer for a better deal. They want to keep you as their customer, so they will listen.
Don’ts
1] Do not use your credit card to make household purchases. It’s very expensive in the long run.
2] Do not just pay the minimum amount. You will end up paying exorbitant amounts of interest. The quicker you are able to clear the debt the better.
3] Never use the credit card to purchase items you can’t afford without the credit card.
If you are thinking onchanging or applying for a Credit Card, check out the free advice on our web site on using Credit Cards wisely.
Tags: advice, auto, banking, credit, credit cards, debt, finance, funds, loans, money, mortgage, other, self help, shopping, Uncategorized
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Wednesday, April 21st, 2010
Once you have accepted credit, you are, in effect, using someone else’s money to pay for what you want. In addition, it also means that you promise to repay the money to the agency or person that loaned you the money within an agreed time frame.
If you are asking for a loan, credit card or mortgage, it is usual for the agency or bank to check up on your credit status. This is based fundamentally on an assessment of your credit history, thereby helping them assess the possible risks of the deal and decide the terms of the loan. A positive assessment means that you have a good financial background, which increases your chance of being given credit.
Credit Repair: This is the process, by which people with a poor credit history try to re-establish their credit worthiness. It involves obtaining a copy of your credit report from the reporting agencies and taking careful and appropriate steps to address apparent issues, including omissions, mis-reporting, mis-interpretation or any other inaccuracies.
If there are any errors found in the credit report, the consumer is entitled to dispute the errors that have unjustly harmed their credit worthiness. There are several laws and regulations that are designed to guarantee the fair and legal reporting of someone’s credit status. You can make use of these laws to formally start the process of repairing your credit.
Every consumer may ask for one copy of his/her credit report each year from each credit reporting agency. You will have to investigate the true nature of the inaccuracies and errors for successful credit repair.
Your credit record influences your purchasing power and eligibility for getting credit facilities in the future. You should keep in mind that a good credit score can help in several situations such as: mortgaging a home, buying a car or applying for a job. On the other hand, a bad credit rating can make you vulnerable to exorbitant interest rates and unnecessary loan terms from the loan agencies. These two facts are important in helping you understand why maintaining a good credit rating is absolutely vital.
How Should You Repair Your Credit?: The method of credit repair can be accomplished through conscientious work and discipline on your own. However, some companies will offer you ‘quick and easy’ ways to repair your poor credit history and they really can be quite tempting. However, these easy ways-out can also create further difficulties in the future, especially if they are not legal.
If your poor credit history was caused by circumstances beyond your control, you can request an upgrade of your credit rating from your creditor. However, this can only be done, if you have been able to make amends to your credit records afterwards.
Creditors do not usually trust people who have defaulted on their payments. This can create difficulties for you getting further credit. However, once you are able to show a stable income and patterns of prompt repayments, the situation could improve over two to three years. In this way, even if you are a bankrupt, you will probably be considered eligible for credit cards within about two years, if you maintain a steady income.
Bear in mind that there are no quick fixes in repairing your credit. By contacting credit bureaus, correcting any errors, budgeting and consolidating your debts, you can improve your own rating quite quickly.
Have you had a few financial problems recently? Do you require Free Credit Repair? If so, please go along to our website called DIY Credit Repair
Tags: advice, banking, credit, credit repair, DIY, finance, lifestyle, management, money, mortgage, other, personal, saving, self help, Uncategorized
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Monday, April 19th, 2010
The maintenance of a good credit report is important to your financial life. There are people who get a poor credit report due to neglect and the improper reviewing of their credit report. There are also others who went through the process of repairing their credit and managed to maintain good credit afterwards. If you don’t ever want to need credit repair, good credit maintenance is advisable. Fortunately, simple steps can be taken to help one in the maintenance of good credit status.
The value of a good credit status history should not be underestimated, as it plays a vitally important role in deciding whether you qualify for a loan or not. The credit status report really tells so much about the consumer, that it not only affects your finance life but other aspects of your life too. Financial counsellors all agree about one thing: maintaining a good credit is important to leading a fit financial life.
A lot of people do not realize that landlords, employers and employers check credit status before making a decision on whether or not they should grant a contract, rent a room or give a job. The scores and credit report can assist companies decide whether you pay your bills on time or whether you have filed for bankruptcy. They use the information on your credit report as a predictor of your future credit worthiness.
What Can You Do?: Although maintaining a good credit score can be a stiff challenge, there is no better way to keep yourself free from debt than by carefully tracking your spending and always sticking to a budget. Budgets are very important as they will help you take control of your finances, decrease your debt and create a strong credit history.
On the topic of managing your debt, the first thing that you can do is keep notes on your spending habits. You can do this by creating reports of what you spend and track anything that you owe. Monthly statements should be reviewed when they arrive and you must always check for any discrepancies. Furthermore, always act on them by reporting them at once.
To keep your account in good order, remember to always pay the creditor on or before the due date, which is normally printed on the statement. Do not miss any payments and strive to pay more than the minimum or, if possible, pay the whole balance each month.
Another thing you can do, which has a beneficial effect on your credit status, is not to go over your total spending limit. The available credit is the amount left on your credit usually represented by the difference between your credit limit and your outstanding balance. Always remember to keep the balance below the limit of the credit available. Additionally, make sure you add in any charges you made after the closing date to your outstanding balance not included on the monthly statement; doing this will allow you find out just how much credit you actually have left.
Sticking to a budget is also important. Normally, 10% of your monthly income should be used to reduce your credit lines, bills or personal loans. However, if you are paying more than this already, then it is probably time to reconsider your spending habits. Stop making impulsive purchases since these are usually extra hard to pay off.
Lastly, control your finances. It is advisable to create a payment plan, which will aid you get back on the right track. This scheme should incorporate those creditors, whom you need to pay and the amount of the payment each month. Normally, people limit their credit usage until the finances are under control, which is an excellent method of controlling your finances.
Have you had a few financial knocks recently? Do you require Free Credit Repair? If so, please visit our website called Get a Better Credit Score
Tags: advice, banking, credit, credit repair, finance, lifestyle, management, money, mortgage, other, personal, saving, self help, Uncategorized
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Saturday, April 3rd, 2010
A vital factor in maintaining a high credit status is in reality the contents of your credit report. The credit report is very much the chronicle of your monetary life, encapsulated in a comprehensive record.
The credit report bears the credit score, which is a numeric grade normally between 300 and 850. Quite a few lenders use the credit score to assist them make their mind up whether you are worthy of credit. Furthermore, the score is also used to establish your capability of repaying a loan. The credit report is crucial and cleaning or holding on to a good credit report is imperative to your economic well-being.
Inside a Typical Credit Report:
In a credit report, the first record is usually your personal data. It includes your name, registered telephone numbers, previous and current addresses, reported differences of your Social Security Number, past and present employers and date of birth.
The information about your credit accounts follows your personal details item. This is also listed in detail and ordinarily includes loans, the total loan amount, and details of any joint account holders or co-signatories. The credit report also incorporates a section, entitled ‘Inquiries’, which lists any person who has recently requested a copy of the credit report.
There are a number of states, wherein the credit report contains public record data. These details can feature overdue payments, bankruptcies or other judgments in the court. Usually, these entries can remain for up to ten years and might adversely affect your chances of obtaining a loan.
How to Begin
First of all, in order to clean your credit report, you will have to order a copy of the report. You must determine what is out of date or incorrect, after which you can tender a letter to the bureau requesting fixes to the data. This process can take a long time and you could be required to do a number of follow-ups with each bureau before achieving a repair credit report. However, to do this correctly, you must be conscious of the data the credit agencies are permitted to recount and the period that they may report that data..
Requesting a credit report can be simply achieved as they are available to everyone. At least one free report may be requested by the consumer every year; this rule is also included in the Fair Credit Reporting Act (FCRA). Furthermore, the consumer is also permitted to obtain a free copy of his or her credit report every year from each of the three major firms dealing with credit reporting, namely Experian, TransUnion, and Equifax. However, if you have already obtained a facsimile of your credit report this year, you could be asked to pay an extra fee if you require another copy.
Once you have obtained your report, appraise it carefully. Every detail should be inspected since bureaus can sometimes mix up names, addresses or employers. Most often, people who have common names have credit reports that might contain details from someone else of the same name.
Additionally, it is significant to perform a periodic check on your credit report. It is prudent to request a facsimile of the report once a year and challenge any possible inaccuracies. Always be meticulous in dealing with your payments and make sure not to make any late payments. Time is of the essence and even minimum instalments should not be ignored. Keep in mind that carefully managing your credit can add as much as fifty points to your credit score per year.
Have you had a few financial knocks recently? Do you need Free Credit Repair? If so, please go over to our website called http://credit-repair.the-real-way.com
Tags: advice, banking, credit, credit repair, DIY, finance, lifestyle, management, money, mortgage, other, personal, saving, self help, Uncategorized
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Friday, April 2nd, 2010
Almost everyone over the age of consent has or wants a credit card these days and they are accepted almost everywhere. There are three major types of credit card very common in America. The first main sort of credit card is travel and entertainment cards such as American Express or Diners Card. These have to be repaid completely at the end of the month and are generous on spending limits.
The second major sort of credit card is the bank card such as Visa, Master Cards, GM, and Ford cards sponsored mostly by the banks. The bank defines the spending limit, which in bank speak, is known as the credit line and each bank offers different terms and conditions. Banks offer a choice of payment means: you can either repay the balance in full with no interest charges or pay the minimum (or some part of the balance) with a finance charge.
The other major type of card is the retail store card, such as Sears, J.C. Penney, Shell or Mobil. These store cards and those issued by gas companies, which are usually known as fuel cards, are only taken in some countries. They usually do not have annual fees. There is a large variance in the terms and conditions for these cards.
Different sorts of credit cards present different opportunities. Some are geared toward individual consumers, while others are designed in ways that work best for small business needs. To know what kind of credit card fits your needs, you should look over a few options.
How to Select your Credit Card.
Credit cards have become a part of everyday life for most people living in the west. It’s becoming increasingly impossible to avoid them, especially for business men. So, if this is the first time you are thinking of entering into the world of plastic money, here are some of the basic things you should look out for.
First, compare the interest charged on all the credit cards you are interested in. While the rate may not remain fixed for ever, it’s always best for beginners to go for the one charging the lowest rates.
Make sure you read the fine print carefully, especially with regard to the other charges that may be applied, like late-payment fees, annual fees, and whether there is a grace period, which is normally given before the finance charges kick in.
Decide which spending limit is most suitable for a person of your income. Furthermore, the fewer credit cards you have, the better placed you will be to understand your spending pattern.
You ought to compare the features such as the cash back incentives, guarantees, rebates and the like and check whether the card is accepted broadly enough to fit in with your needs.
You should acquaint yourself with the following terms: 1] Annual Percentage Rate: this is the yearly cost of the credit. 2] Finance Charges: these are the total charges of the transaction. 3] Period of Grace: This is the length of time the card issuer gives you before they begin charging you interest on your purchases. (Not all credit card issuers allow a grace period).
If you are considering changing or applying for a Credit Card, check out the free advice on our web site on using Credit Cards wisely.
Tags: advice, auto, banking, credit, credit cards, debt, finance, funds, loans, money, mortgage, other, self help, shopping, Uncategorized
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Sunday, December 20th, 2009
You need to differentiate between the various types of financial problems. For instance, a financial crisis is when you suffer a situation that can leave you penniless, homeless or without any important property. You ought to separate these kinds of emergency from a threatening phone call or a letter from a bill collector, even though they are unpleasant enough too.
When experiencing an emergency like these, it is vital to act immediately. You need to begin by contacting the creditor. Doing so enables you to work out a temporary solution, which may help you to keep your property. However, it does not always work and if it doesn’t, contacting your lawyer to negotiate with your creditor is necessary.
Face up to your Problem: A common misconception in debt situations is that “the less you know, the less it hurts”. However, you must learn how to face your debt problems. You must be able to do this since rebuilding and repairing the credit will not happen, if you do not know exactly where your money is going or where it has to go instead.
Although it is not problematic to overestimate your debt, it is always necessary to know how much money you really owe. You can do this by taking a look at the bills you have received. If you have thrown out your bills without even opening them, you can still call the company and ask about the bills.
Several creditors even use automated reply systems, which can provide a debt balance and information regarding the payments automatically, so you do not even have to talk to anyone. Additionally, information about your account might also be available on your creditors’ web sites. After obtaining the necessary details, total it all up, especially those overdue instalment bills.
Options Available for Handling Your Debts: There are several choices available to you for dealing with your debts. One way is to do nothing. This option is probably the most popular approach employed by those who are deep in debt. Frequently, these people have a very low income and maybe no property and do not normally expect any change in their lifestyle. If you do not anticipate any steady income in the near future, you can consider this option.
However, doing nothing does not really help, so maybe you can find some money to pay your debts. You can do this by, first, selling a major asset, like a car or a house. This can be a good choice if you can no longer afford your car or house payments. Instead of waiting for a repossession or foreclosure to happen, selling the property is always a better solution.
The proceeds you gain from the sales should be put towards reducing your debt. Moreover, you have to remember to pay off the liens placed by the creditors and use anything that is left to pay (something) off your other debts too. However, before taking this step, make sure that you have already come up with a solution to your accommodation or transport needs.
Another way to help you pay off your debts, is to cut your expenses. This will aid you not only in the repayment of your debts but also when negotiating with your creditors. Try to shrink the cost of your food by clipping coupons, purchasing house brands, buying when there is a sale on or shopping at discount outlets.
However, if you cannot reduce your outgoings enough, you could always borrow money from a tax-deferred account. Tax-deferred retirement accounts, like IRA or 401(k), can be utilised to help pay off debts by withdrawing money from them prior to retirement. However, since you might have to pay a penalty or taxes, this should only serve as your last resort.
Have you had a few financial problems recently? Do you require information on how to fix your credit? If so, please go along to our website called DIY Credit Repair
Tags: advice, banking, credit, credit repair, DIY, finance, lifestyle, management, money, mortgage, other, personal, saving, self help, Uncategorized
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Wednesday, September 23rd, 2009
by Bob Jones
A crucial aspect in holding on to a high credit status is in reality the contents of your credit report. The credit report is pretty much the story of your fiscal life, contained in a comprehensive file.
The credit report details the credit score, which is a numeric grade typically between 300 and 850. Most lenders use the credit score to help them make their mind up whether you are worthy of credit. Furthermore, the score is also used to conclude your capability of paying a loan. The credit report is significant and cleaning or holding on to a good credit report is very important to your monetary well-being.
Inside a Typical Credit Report:
In a credit report, the first item is generally your personal information. It includes your name, registered telephone numbers, previous and current addresses, reported discrepancies of your Social Security Number, past and present employers and date of birth.
The information about your credit accounts follows your personal details item. This is also listed in detail and ordinarily includes loans, the total loan amount, and details of any joint account holders or co-signatories. The credit report also incorporates a section, entitled ‘Inquiries’, which lists any person who has recently requested a copy of the credit report.
There are some states, wherein the credit report contains public record data. These data can highlight outstanding payments, bankruptcies or other judgments in the court. Generally, these entries can remain for up to ten years and can adversely affect your odds of obtaining a loan.
How to Start
Firstly, in order to repair your credit report, you will have to order a facsimile of the report. You have to establish what is out of date or incorrect, after which you can send a letter to the bureau asking for repairs to the data. This process might take a long time and you can be required to do a number of follow-ups with each bureau before achieving a clean credit report. However, to execute this properly, you have to be aware of the details the credit agencies are permitted to report and the duration of those details.
Ordering a credit report can be simply achieved as they are accessible to everyone. At least one free report may be requested by the consumer each year. This regulation is also included under the Fair Credit Reporting Act (FCRA). Furthermore, the consumer is also allowed to obtain a free copy of his or her credit report each year from each of the three main companies dealing with credit reporting, that is to say Experian, TransUnion, and Equifax. However, if you have already obtained a facsimile of your credit report this year, you can be required to pay an additional fee if you require another copy.
Once you have obtained your report, assess it carefully. Every detail ought to be inspected since bureaus can occasionally mix up names, addresses or employers. Most often, people who have common names have credit reports that might contain details from someone else of the same name.
In addition, it is significant to carry out a periodic check on your credit report. It is prudent to send for a copy of the report once a year and challenge any possible errors. Always be careful in dealing with your payments and make sure not to make any late instalments. Time is of the essence and even minimum payments should not be ignored. Keep in mind that carefully managing your credit can add as much as fifty points to your credit score per year.
Tags: advice, banking, credit, credit repair, DIY, finance, lifestyle, management, money, mortgage, other, personal, saving, self help, Uncategorized
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Saturday, August 1st, 2009
by Owen Jones
Having accepted credit, you are using someone else’s money as payment for your purchases. In addition, it also indicates that you promise to repay the money to the agency or person that loaned you the cash.
If you are applying for a loan, credit card or mortgage, it is normal for the agency or bank to check up on your credit status. This is based mostly on an assessment of your credit history, thereby helping them assess the possible risks of the deal and decide the terms of the loan. A positive assessment means that you have a good financial history, which increases your chance of being granted credit.
Credit Repair: This is the process, by which people with a poor credit history try to re-establish their credit worthiness. It involves obtaining a copy of your credit report from the reporting agencies and taking careful and appropriate steps to address any issues, including omissions, mis-reporting, mis-interpretation or any other inaccuracies.
If there are any discrepancies found in the credit report, you are entitled to dispute the errors that have unjustly harmed their financial health. There are several laws and regulations that are designed to guarantee the fair and legal reporting of someone’s credit worthiness. You can use these laws to legally and formally start the process of your credit repair.
Every consumer is entitled to one copy of his/her credit history each year from each credit reporting agency. You will have to investigate the true reason for the inaccuracies in order to secure a successful credit repair.
Your credit worthiness affects your purchasing ability and eligibility for getting credit lines in the future. You should bear in mind that a good credit rating can help in several spheres like as: mortgaging a home, buying a car or even applying for a job. On the other hand, a bad credit score can make you vulnerable to exorbitant interest rates and unnecessary loan terms from the loan agencies. These two facets are important to help you realize why upholding a good credit rating is really quite necessary.
How to Repair Your Credit: The process of credit repair can be achieved through conscientious work and discipline. Some firms will offer you easy methods to help you repair poor credit history and they can be quite tempting. However, these easy ways-out can also create further difficulties in the future, especially if they are illegal.
If your poor credit history was caused by issues beyond your control, you can request an upgrade of your credit rating from your creditor, but this may only be done, if you have been able to make amends to your credit records afterwards.
Creditors do not usually trust consumers who have defaulted on their payments. This can pose difficulties for you in obtaining further credit. However, once you are able to demonstrate a stable income and patterns of prompt payments, the situation can improve in the span of two to three years. This way, even if there was a bankruptcy, you are likely to be eligible for credit cards within two years, if a steady income is maintained.
Bear in mind that there are no fast fixes when you are trying to repair your credit. However, by contacting the credit bureaus, correcting any errors, budgeting and consolidating your debts, you can improve your own credit score really quite quickly.
Tags: a, advice, b, banking, business;finance, c, credit, credit repair, d, DIY, e, f, finance, i, l, lifestyle, loans, m, management, money, mortgage, o, other, p, personal, r, s, saving, self help, t, u, Uncategorized
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Wednesday, July 22nd, 2009
by Bob Jones
Among the vast number of credit cards on the market, one of the most underestimated is the business credit card. Many people choose not to apply for a business credit card because aside from having a definite target market - business owners or business executives - it seems to be complicated to use. Although a business credit card has more provisos, it has a lower interest rate compared with other kinds of credit cards and, contrary to common misconception, it can be very helpful if used properly.
What is a business credit card? Basically, a business credit card is for business people’s use. Compared to a regular credit card, a business credit card has a high credit limit and low interest rates. Depending on the business credit card you apply for, a business credit card may also bring a lot of benefits.
As it is aimed at businessmen or those people who are starting to build a business, a business credit card is meant to benefit these small businesses. A business credit card helps the budding business by allowing the entrepreneur to finance bills or payroll, thereby improving cash flow. Apart from presenting the image of a dependable credit card, business credit cards supply detailed reports and give quality customer service as its major benefits.
Apart from enjoying higher spending limits and lower interest rates, a business credit card provides numerous credit alternatives for small businesses. A business credit card also caters to big corporations as well as those people who are just beginning their own business because it closely reflects the base rate of credit.
Simplifying business credit cards. It really pays to go to the bank when one applies for a credit card to get answers to all the immediate enquiries you may have. But since a business credit card is for business people who are always on the go, many business credit card issuers offer online applications for business credit cards. So, when one applies for a business credit card, there is no need to visit the bank any more, which means that there is also no need to wait in the queue just to talk to a bank manager.
When you apply for a business credit card online, all you have to do is to choose the business credit card that suits your small business or corporate credit needs right from the comforts of your home or office. Apart from offering safe, secure, and simple processes that are designed to help you to take care of your fledgling business, most Internet business credit cards offer easy access features for the convenience of the business credit card holder, such as online bill payment and online statements.
Customized company logos and access to instant cash are also advantages available on line. Other online business credit cards offer detailed reporting features for easy monitoring and access.
Most business credit cards offer no fees for the first year and no pre-set spending limit or finance charges. Other business credit cards offer membership rewards programs that enable the member to earn points towards travel, merchandise and other rewards for the business.
Some of these business credit cards offer small businesses a line of credit of up to $100,000 at a competitive APR as low as prime + 1.99% for both cash and cheque purchases. Also 100% of the line is available as cash and no collateral is required.
The business credit card holder could be offered free checks together with a card to access their account. There may also be: common savings or exclusive savings on purchases, express approval on expra loans, no annual fee, up to 5 percent discounts on qualifying purchases, and 0% introductory APR annual percentage rate on purchases during the first six months of card membership are some of the great benefits of most business credit cards.
The majority of the business credit card issuers offer fantastic deals, but it is very important to research what your business needs are first. No matter whether you need your business credit card for buying inventory or only for payroll, it is important to get a business credit card that can cope with anything you need.
Whether you opt to go directly to the bank or apply for a business credit card online, a number of premier business credit card issuers are there to assist you to find the right credit card product as easily and conveniently as possible.
Tags: advice, banking, business, credit, credit card, DIY, finance, lifestyle, management, money, mortgage, other, saving, self help, Uncategorized
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Thursday, July 9th, 2009
by Bob Jones
Ask yourself: does the credit card work for you or do you work for your credit card? Most people’s reply to that question will depend on how they treat their “plastic friend” as credit cards are often known. As many people with burned fingers will tell you, they didn’t realize that things had gotten so bad until very late, because most credit card offers try so much to sound like they are actually running a charity. Well, they aren’t.
However, this is not an anti credit card campaign. They have their benefits - in America, for example, if you want to hire a car, you must have a (major) credit card. But, think about this situation:
You get an offer in the mail that sounds good, maybe it’s a new television or fridge. But it costs $2,000. You have a credit card with a $5,000 limit, so you go out and purchase the product right away. Often, this is how your repayment schedule will work out. Most credit cards charge a minimum percentage of the total balance (typically 2 percent) per month. Assuming the interest rate is 18 percent and you choose to repay the minimum amount of $40, $30 of that will go towards interest and only $10 will come off the $2,000!
Does it sound worrying? Well, it doesn’t have to be. The moral of the story is to use the credit card very, very carefully.
Credit Cards Dos and Don’ts
There is a great deal of truth in the advice that credit cards are not a substitute for not having money. Every time you use a credit card this should be the theme song playing in your head. Furthermore, you would be wise to remember the following as well:
Dos.
1] Always plan for the purchases that you have to have and those that you just want. You need the essentials, but you just want everything else. The ability to make a distinction might help you plan sensibly.
2] If caught up in financial difficulties, it’s always good to talk to the credit card issuer who might adjust your payments. If you simply default, that only helps to build up an unfavourable credit history and you might find yourself being denied credit next time.
3] Unless it is an emergency, staying within your credit limits will help you a lot. If you must spend over the limit, ensure you are within manageable levels, say within 30 percent.
4] If your mailbox is full of information on credit cards with more favourable deals than you currently are enjoying, you may approach your issuer for a better deal. They want to keep you as their customer, so they will listen.
Dont’s
1] Do not use your credit card to make household purchases. It’s very expensive in the long run.
2] Do not only pay the minimum amount necessary. You will end up paying exorbitant amounts of interest. The quicker you are able to clear the debt the better.
3] Never use the credit card to purchase products you can’t afford.
About the Author:
If you are thinking aboutswapping or applying for a
Credit Card, check out the free advice on our web site about using
Credit Cards wisely.
Tags: advice, auto, banking, credit, credit cards, debt, finance, funds, loans, money, mortgage, other, self help, shopping, Uncategorized
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