| |
| |
|
Credit Information |
|
|
|
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:
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.
|
| home | site map |
| © 2006 |
