 |
Do You Know The Top Five Credit Card Mistakes?
When you're dealing with credit cards, you're playing with
fire. Unfortunately, there are plenty of people out there who
don't realise that, and make all sorts of dangerous mistakes with
their credit cards every day.
Here are what I consider to be The Top Five Credit Card
Mistakes
Paying Your Credit Card Late
If you don't set up any kind of automatic payment, then it can
be tempting to just put your credit card bill on a pile and get
to it when you have time. Before you know it, a few weeks have
gone by and you're late. If you leave it to the deadline, you
might find that the payment won't get there quickly enough - it's
not a deadline for sending the money, it's a deadline for them
receiving it.
Paying late is a big mistake for an awful lot of reasons. You
will almost certainly be charged a late payment fee, and your
late payment will go on your credit report for everyone to see.
You may also find that you lose any good rate you had, and your
debt is automatically thrown onto the very worst rate the company
offers.
To avoid late payment, you should always post your payment a
long time before the due date (at least a week). If you've left
it to the last minute, phone up and try to pay that way.
Being Taken in By Rewards
It is never, ever worth getting a higher-interest card simply
because it offers some kind of loyalty points, flight miles or
whatever. Even if it offers a cash reward, it is unlikely to be
more than you would pay in extra interest - after all, why would
they give you free money? All 'rewards' do is pay you off with
your own money to make you feel like you're getting something for
nothing. You're not.
Collecting Credit Cards
Seeing some people opening their wallet or bag is a scary
experience. It looks like they have about a hundred credit cards
in there, some of which they haven't used in years. They have
trouble keeping track of all the different cards, balances and
interest rates. Don't be one of these people. You should limit
yourself to a maximum of three cards at a time - any more starts
to make you look over-committed in your credit report, and could
get you turned down for a bigger loan.
Maxing Out Your Credit Cards
Your limit is just that: a limit, not a minimum! Whatever you
do, don't get a card and immediately spend your whole limit. This
looks very bad. It is better to spend about halfway regularly and
pay it back. Wait for the company to increase your limit (which
they quickly will), and then you'll get that extra money without
the stigma of having a maxed-out card.
Not Reading the Credit Card Terms and Conditions
Finally, as ever, don't sign anything you haven't read! I know
it's hard going and you're busy and all, but if you can't manage
to read the terms and conditions then you shouldn't get the card.
Pay special attention to any future increases in rates, and what
kind of fees you can be charged.
Ken Austin is the webmaster at Credit and Credit Card
Solutions
MORE RESOURCES:
Credit - Google News
|
|
|
RELATED ARTICLES
Consumer Credit
Reports
A consumer credit report is a factual record of an
individual's credit payment history. It is provided for a
purpose permitted by law: to help a credit grantor or
lender quickly and objectively decide whether to grant you
credit.
10 Dirty Tricks Credit
Card Companies Play
The credit card companies make billions each year in
legitimate interest charges and fees, but are under
constant pressure from the shareholders to increase their
earnings. To make this extra money the credit card
companies sometime adopt some dirty tricks to make this
money.
The Easy Way To Gain
Access To Your Free Online Credit Report
When you apply for credit, those lending you the money want
to know if you are going to pay them back. One way they
decide if you are a good risk is to see how you've dealt
with other people's money.
5 Steps You Can Take to
Get Paid!
There are always some companies that have past due invoices
and can't seem to get them paid. They might be quietly
waiting to get paid not wanting to contact the client for
fear of appearing "desperate".
Using Credit Cards
Wisely
"I think money was stolen from my card" or "I might have
blocked my card in the ATM" - these are frequent problems
that bank customer-support officers usually hear from
agitated clients. Incorrect use of credit cards or wrong
interpretations of their functions are frequent even after
tens of years of credit-card extensive use.
How a Credit Card Can Be
Your Friend
We have all heard countless stories of people over their
heads with credit card debt-maxing out every card they own,
then only being able to afford the minimum monthly payment.
High interest payments shackle people to their debt for
years, not to mention the significant income drain the
finance charges have on their families.
10 Ways To Protect Your
Financial Identity Being Used For Someone Else's Shopping
Spree
Someone impersonating you could be spending your
hard-earned money.Impossible! Not really, check, loan, and
identity fraud are a real problem.
Is Your Credit Score
Costing You Money?
Most of us want a good credit report to obtain automobile
financing, credit cards, and to purchase a home. But,
beyond these consumer loans, your credit report can cost
you in everyday living expenses.
Credit Card Debt: One
Way To Avoid It
One of the biggest problems people have in these modern
times is Credit card debt, and worst is USA. Simply because
there have always been so many laws and regulations before
you could have a card in the rest of the world, you can't
for instance borrow someone elses card and go shopping
because you always have to show some ID before they accept
cards in Europe.
Low Interest Credit
Cards Have Many Advantages
When credit cards are used wisely they can be very
beneficial to the consumer. A low interest credit card can
be exceptionally beneficial.
Taking Control of Your
Credit History
Your credit history is important; in fact, in this day and
age, only family and your time are more important than your
credit history! The first time you established a payment
commitment over a period of time for a purchase, you began
your history of credit, and the credit bureau created your
account. Payments such as the electric company, a rental
agreement, a cell phone, a car payment or a low-rate credit
card which you also have a responsibility to repay are not
reported to the credit bureaus as a part of your credit
history.
Know Your Credit Card
Rights
When you apply for a credit card, the application that you
sign is also a legally binding contract laying out all the
termsbetween you and the bank, such as the interest rate
and how its calculated, the grace period, whether there's
an annual fee, etc.While you have to agree to the terms and
sign if you want the credit card and while the lender will
certainly hold you to the terms, the lender doesn't feel
similarly committed.
Like It Or Not, You Have
A Score To Settle! Part 1
Just when most people finish with school and can stop
worrying about test scores, there's a new kind of scoring
that enters the picture. It's called credit scoring.
Five Debt Negotiation
Facts
These five debt negotiation facts along with a few debt
reduction planning tools gives you the ability to control
your own debt. For many people today credit card debt is a
mounting problem and very few know how to successfully
negotiate debt settlements.
Tackling Bad
Credit
The first time I heard the term credit history was when I
approached a lender for a secured loan. Being a first timer
I was completely ignorant of the procedure and didn't even
know that a credit record of our transactions is prepared
by some credit reference agencies.
What Is the Fair Credit
Reporting Act and What You Should Know About It
The Fair Credit Reporting Act (FCRA) and the recent update
to this law called the Fair and Accurate Credit
Transactions Act (FACTA) protect consumers against
inaccurate information being reported by credit bureaus and
the privacy of that information. What does this mean to
you?When you make purchases on a credit card, make payments
to your accounts, open new bank or credit accounts, borrow
money, buy a house or a car, and even fund your education,
your financial information is reported by creditors and
lenders to a credit bureau.
First Major Regulatory
and Legislative Victory of 2005 for Creditors and
Consumers
Under the Fair Debt Collection Practices Act, collectors
are not allowed to disclose a consumers past due debt to
anyone other than the debtor and in some cases a spouse.
The Telephone Consumer Protection Act would have required
collectors to identify the registered name of their
business in any pre-recorded messages to consumers or
debtors.
The Art of Stoozing to
Make Money from Credit Cards
Make Money from StoozingStoozing, this is a sophisticated
method of making money from credit cards that offer 0%
introductory periods, the method requires cast iron
discipline in never spending on the cards.But, I hear you
all ask - what is stoozing and can I do it?Stoozing, in the
simplest terms is borrowing money from credit cards that
offer a 0% introductory deals and saving that money in a
savings account for the duration of the offer on the credit
card.
Finding What is on Your
Credit Report
A credit report is basically a file about you kept by
lenders and banks. As annoying as it may be, it's still
perfectly legal for them to gather all sorts of details
about you.
Compare Credit Card
Offers and Reward Yourself
Here's a simple system on how to pay zero interest and get
tons of free stuff. Almost everyone uses credit cards.
|
|
