| |
| |
|
Credit Information |
|
|
|
The Hazards Of Your First Credit Card
You probably don't need me to tell you credit cards are easy to get a hold of; at least, that is so in the US and UK. How many weeks pass without a glossy brochure promoting a credit card popping through your letter box? And that's just your mail; the tv advertising budgets for credit card promotion are enormous, with some famous faces often adorning your screen, smiling beautifully as they tempt you. How does anyone resist that promotional onslaught, coupled with the peer pressure, and the "have now, pay later" culture in which we live? Well, the fact is, few people do resist. If you are credit worthy and have no credit card, you are something of a rarity. Credit cards are almost as easy to get as your fruit and vegetables from the local supermarket. The thing is, you can have a bad credit history, and still get deluged with offers of easy credit. Even if you have just filed for bankruptcy, you may still get more offers of credit cards than you know what to do with! Because of the ease of availability, credit card debt is all too easy to get into. Not just once, but over and over again. Partly it's psychological, as we may not feel like we are spending real money. That is, until the chicken comes home to roost, and the bill comes. By then, of course, it's too late; you have a debt for which you are legally responsible. The credit card companies have slick marketing departments who know we are weak, and that we may easily fall prey to temptation. It is often recommended, when trying to establish a good credit report, that it is a good idea to get a credit card, and then use it to spend wisely. Experts will advise us to pay our bills on time, and never to exceed the credit limit. However, when you get you first credit card, nobody really goes to any real trouble to warn you, bluntly, of the pitfalls: 1. It is easy to be lured into spending up to the credit card's limit; before you know it, that one moment of weakness a month has taken you up to the limit. 2. You may have a low interest rate to begin with, but that was an introductory offer; a lure; a bribe; to get your business and your money and tempt you more and more. Soon, the permanent interest rate will kick in. How does 20% pa sound? It could be that much. Were you warned how quickly that builds up? How the monthly interest alone may make it difficult for you to pay your monthly repayment every time, on time? 3. Close on your credit limit and with high interest charges, you miss a payment and go over the credit limit. Unknown to you, you are now getting black marks on your credit report Unfortunately, when times are difficult, over use of credit cards is far too easy. If you are short of cash for any reason, it is easy to reach for the credit card. But if you find yourself tempted to use it for day to day expenses, then you are on the route to credit card debt problems that will mar your credit report for a long time to come. That can affect mortgage applications, car loan applications, and even your desire to move to a new apartment. Always bear in mind that credit card debt has long term risks. If you have got this far without a credit card, think long and hard if you really need to apply for one. It is true that if you use credit cards wisely, you can build a credit history that brings rewards instead instead of risks. But the temptation is always there. Always remember that you are paying the bank for the privilege of having a credit card, and you are paying a high rate. If you think you may succumb to temptations too often, then be different: save as much as you can each month, and then if you hit upon hard times, you have the option of reaching for the savings account instead of the credit card fix. For non-cash convenience, you can use a debit card rather than credit card. Roy Thomsitt is owner and part author of http://www.eliminate-credit-card-debt-now.com
MORE RESOURCES:
Credit - Google News |
|
|
|
RELATED ARTICLES
Credit Repair Scam - How To Avoid Being A Statistic? A good credit history is critically important for the consumer. A bad credit will prevent you from getting a business loan, owning a home, or even a job. Why Consumers Need a Nationwide Credit Freeze NOW What do a shoe retailer, an online discount broker, and a popular clothing retailer all have in common? All three - DSW Shoe Warehouse, Ameritrade, and Polo Ralph Lauren - sustained breaches to their customers' accounts. Unfortunately, these three are not alone when it comes to security breaches. How to Evaluate and Raise Your Credit Score Why do some people get offers for pre-approved credit cards and others don't? What do car dealers know about your financial health that you don't know? The answer is your credit score.Your credit score is a number generated by a mathematical formula to estimate how likely you are to pay your bills. How To Use Your Credit Card For Ultimate Financial Advantage Using a credit card wisely is an important step in building a great credit rating. If you're trying to re-build your credit or if you're young and just starting out, pay close attention the next time you receive a new card offer in the mail or online. 5 Things Your Credit Card Company Keeps Quiet About Credit Cards can bankrupt you if you let them run away from you. The various Credit Cards companies are in it for profit so they will not generally alert you to things you can do to save yourself money. Cash Back vs. Rewards Credit Cards Ah, the sweet rewards of using credit!Not only do you get immediate gratification with the buy now-pay later plastic, but now, many credit cards offer rewards and incentives for using their card to make purchases. You can get cash back, or gift cards, or 'reward points' that you can spend on merchandise or services from various merchants. I've Heard About FACTA; What Does It mean? What FACTA means is that if you, as an individual, lose the information on anyone you have ever hired; or, for any business in the United States of America that collects any personal information on people, if the information should be lost due to not destroying the information properly, then two things can happen. First, there are federal fines of up to $2,500. Top 5 Credit Misconceptions We have all heard the rumors?from neighbors, relatives or friends. There are a wide variety of myths floating around about what you should and shouldn't do to improve your credit reports and credit scores. 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. Figuring Out the Ever Nebulous Numbers Called Credit Scores Credit Score FactorsThe information contained on our credit reports affect every aspect of our lives; including employment, insurance, and even interest rates (mortgage, credit cards, automobiles, etc.). Triple AAA in 30 Days Have you ever wonder about how to get good credit with spending alot of money. Well here is a little secret I used to get my credit back up to par. The FICO Score Misconceptions There are many misconceptions about credit scores out there. There are borrowers who believe that they don't have a credit score. How a Credit Card Can Be Your Friend We have all heard countless stories of people over theirheads 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 foryears, not to mention the significant income drain thefinance charges have on their families. Credit Report - Watch Out for Parking Tickets The economic downturn of the last five years has affected millions of Americans, but it has also affected the budgets of states, cities and counties. With limited tax dollars with which to work, various government entities have had to try to stretch their budgets to allow them to continue to function. Your Credit Rating and How To Check It There is a lot of confusion surrounding UK credit ratings, credit scores, credit blacklists, credit reports, and credit files. This guide to your credit rating aims to give you the facts you need. Ways to Look Good without Selling Your Soul to the Credit Card Sharks 1. Buy clothes at thrift stores. SuperCharged Secret 5, Credit Card Utopia LIVING IN CREDIT CARD UTOPIALet's just take a brief moment to recap:If you've been following along on this journey with me, learning the 5 Super-Charged secrets to Credit Card Utopia, then you now know 4 very important things:You now know how to take advantage of zero to low interest credit card offers.You now know that there is safety in numbers, and you know the magic "Who's Who" of the major credit card companies. The Right Way To Credit Repair If you have a bad credit rating, then you might find thatyour ability to get financing, loans, and even some jobs isgreatly diminished.Once you have a bad credit rating, it might seem likethere's nothing that you can do about it? but you don'thave to believe that. Credit Help for Real Estate Financing: Credit Scores When you buy real estate, lenders run all of the "big three" credit bureau reports. Each credit reporting agency lists your credit history as supplied to them by the individual lenders and includes governmental records. Make Sure Your Credit Report Is Correct to Improve Your Interest Rates And Lower Insurance Premiums Did you know that you could make sure to get the best rates on your auto and homeowners insurance simply by having a good credit score.Additionally a great credit score will allow you to get the best interest rates on your credit cards, car loans and even your home mortgage.
|
|
Home | Site Map | |
| © 2007 |
