 |
Sound Advice For First Time Credit Card Users
If you are just entering the world of credit cards, there is
important information you will need to know in order to manage
your credit and your finances effectively. Establishing good
habits and a good credit history now is the foundation for a
solid financial future. Applying for a credit card in your own
name can help you establish a sound credit history and will be a
valuable asset in applying for a loan for a home, new car, or
getting a new job or apartment. In addition, there is no safer
way to make purchases online or over the phone than with a credit
card.
Along with the benefits of having credit cards, comes added
responsibility. If you misuse your credit cards or fail to take
responsibility for your spending habits, you could end up in
serious financial trouble. Learning how to choose the credit card
that is right for you is your first step. There are numerous
credit card offers from which to choose, and it can be confusing
to know which is the best one for you. Do not choose a credit
card simply because of a low introductory rate or generous
rewards. A low introductory rate will increase sharply when the
introductory period is over, and many times these types of cards
have annual fees and additional costs that are not made clear in
the initial offer.
Know the terms of your contract with the credit card company.
Interest rates and late fees can cause your balance to rise
considerably and making the minimum payments will not help you
pay off your credit card debt. If you make a lot of purchases
with your credit card, it will be necessary for you to pay your
entire balance each month if you want to avoid additional fees.
Some credit cards raise your interest rate if your balance
exceeds a certain amount, and will charge you numerous late fees
and other miscellaneous charges if you exceed your credit limit,
even if the reason you are over your limit is due to fees and
penalties.
You should know exactly when you will be billed each month and
prepare to send your payment in several days before the due date.
Late payments will result in additional fees and could reflect
badly on your credit report. Even if you plan to make your
payment online, plan to do so at least 5 business days before
your bill is due to avoid any possibility of late payments. It is
very tempting to use your credit card for cash advances. You
should avoid cash advances except in the case of emergency. Cash
advances generally come with a higher interest rate than regular
purchases and you will be charged an additional fee for each cash
advance. Even if your interest rate is relatively low, the rate
you are charged for amounts resulting from cash advances can be
significantly higher.
Be very careful about how and when you use your credit cards.
Never loan your credit card to friends and make sure you protect
your card at all times. Identity theft and credit card fraud are
major problems. You will need to take the appropriate safety
precautions to avoid either of these situations. When your
monthly statement arrives, make sure you have kept all of your
receipts and check your receipts against your bill. If you find
any errors, report them immediately to your credit card company.
You can learn to manage your credit wisely by practicing good
credit habits now. Credit cards are almost a necessity in our
society, but in obtaining credit you must learn good spending
habits and make smart financial decisions.
This article has been provided courtesy of Creditor Web.
Creditor Web offers great credit card
articles available for reprint and other tools to help you
search and compare credit card offers
MORE RESOURCES:
SEC finds shortcomings in credit ratersReuters - 16 hours agoWASHINGTON (Reuters) - Credit rating agencies did not properly manage their conflicts of interests when assigning ratings to structured products such as ... |
Credit - Google News
|
|
|
RELATED ARTICLES
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.
Avoiding Credit Card
Traps
The next time you open your credit card statement, take a
closer look at the small insert titled "changes to your
credit card agreement". You know the one I'm speaking
about.
Finding the Right Credit
Card
There are so many credit cards out there to choose from
that deciding which one to get can feel really daunting.
What makes one offer better than the hundreds of others
you've seen? Take this little quiz to find out what you
should look for in a card.
Fair Isaac Corporation
Credit or FICO Score
As I am not from the US, I had no idea what FICO meant
before researching it. FICO stands for Fair Isaac
Corporation, a company based in California.
Its Your Credit - Take
Care of It!
Thanks to the Fair and Accurate Credit Act, American
consumers can receive a free annual credit report from each
of the three major credit bureaus-Experian, TransUnion and
Equifax. You can order your free credit report by visiting
www.
Are you paying higher
interest on your credit cards than you think?
Many credit card holders sign up for a credit account with
an 8.9% interest rate and then later realize that their
interest rate has been bumped to 27.
Cutting Credit Card
Costs
What are the APRs charged by the credit cards in your
wallet? If you are paying more than 12% interest on any of
them, you are probably paying too much. The prime rate is
currently in the single digits, so credit card companies
that charge above 13% APR are overcharging.
The Truth About
Credit
What you might not know about credit.Some people don't know
about a loop hole in the credit reporting system.
Collection Agencies:
What Do They Do?
Collection agencies are businesses that collect past-due
bills and accounts receivable for other persons or
businesses in exchange for a fee. Collection agencies
charge for their services one of three ways:1) A flat fee.
Protect Yourself Against
Identity Theft
Identity theft is when someone uses, without permission,
your personal information in order to commit any frauds or
crimes. Identity theft is a felony that is becoming more
and more common.
Credit Cards: What is
the Universal Default Clause?
Most people who carry major credit cards are well aware
that the interest rates associated with them tend to be
higher than for other types of lending, such as home or
auto loans. Anyone who has paid their credit card bill late
more than once or twice is also aware that doing so may
cause the interest rate on their card to go up - sometimes
by quite a lot.
Practical Suggestions
for Protecting Yourself From Identity Theft
It's no surprise that thousands of Americans are victimized
by identity theft each year. Last year more than 9,000,000
people were victims of identity theft amounting to some $45
billion dollars.
Credit Reports Inside
and Out
The Credit Report is like your scorecard in the lending
world. Every time you prepare yourself to acquire or
purchase something that requires financial assistance from
a lending institution, your credit report will be your
"presentation card".
How to Avoid Credit Card
Late Fees
Everyone hates late fees and being late will cost you
dearly these days. For some credit cards today, if you are
late, you will have to shell out as much as $40 each time.
Understanding Your
Rights Under The Equal Credit Opportunity Act
It wasn't all that long ago that lenders blatantly
discriminated when it came to approving credit for women
and minority groups. Women were actually asked personal and
demeaning questions like, how many children do you plan to
have in the future or are you on birth control?Despite the
fact that they were entering the workforce in record
numbers, single women were often required to get a cosigner
or denied credit altogether.
Credit
Worthiness
Credit Worthiness is an important business and personal
asset each person has to manage. I mean this is an asset
which could make or break business relationships and
interestingly in some cases personal relationships.
Good Credit -- Essential
for the Prospective Home Buyer
Credit is a funny thing. It can be a useful tool in the
hands of an informed individual, or a weight of burden to
the unsuspecting.
Useful Tips on Using
Credit Cards
Here are some useful tips on using credit cards. Whether
you shop online, by telephone or by mail, a credit card can
make buying many things much easier; but when you use a
credit card, it's important to keep track of your spending.
Do You Know Whats On
Your Credit Report ?
It is important to know your credit rating for a number of
reasons. Believe it or not there may be errors in your
credit report, and it is essential that you repair them
immediately.
What You Didnt Know
About Your Credit Card Numbers
Have you ever really looked at your credit card and tried
to figure out what that huge string of numbers really
means? Do these card issuers have so many customers that
your account number has to be 16 digits long?You may be
surprised to know that all those numbers you see actually
do stand for something, and it's not just who you are.
Let's take a look.
|
|
