Credit Card Tips
October 4, 2008 · Print This Article
Choosing a credit card that is right for you can be a fairly tricky challenge. At first glance, it seems as if it’s all too easy to score a credit card and find yourself making payments the next day for almost anything you want under a grand or so — and it may very well be too easy, in fact. Even though its a strong indication of the generous nature of America’s economy, credit cards have a way of being very slippery with the policies behind their use. Even good cards can turn a user experience sour when handled inappropriately.
Considering the degree to which credit cards can put a person in debt, card companies can and sometimes often try to take advantage of you. However, that is exactly why obtaining a credit card is an issue that you should given strong consideration, in order to examine all your choices and arrive at one that best benefits both your financial situation and the way in which you live your life in regards to making purchases.
Credit cards are easy to come by, but a good one is golden. Determining one that is good for you, however, depends on your lifestyle and your spending habits, since there are cards with all sorts of features and limitations.
If you’re starting out without credit, for instance, there are student credit cards that are meant for college-aged consumers or just those without a financial history who are getting on their feet. These cards are a great way of getting the ball rolling financially, but they often come with very steep APR rates and sometimes some heavy surcharges that can penalize you greatly for missed payments. You may also have to pay a high annual fee for just having the card as well.
What you want to do, generally speaking, is look at your options and decide on which one that finds your general lifestyle. You may be looking at a secured credit card, a balance transfer credit card, a rewards credit card, or just a standard one, but whatever you end up getting, you want to know how it can best fit your personal financial needs. Afterwards, you want to compare the companies that can provide the type of card you want, and review their offers. You’ll want to look into their policies and read them carefully, combing out the details that determine exactly how you’re expected to handle the card and what you have to pay in regards to keeping it and using it.
Once you have decided on a card of your choice and you’re working with the company that provides you it, you’ll want to have a copy of the policy at hand and finalize certain details about how the company does business. You’ll want to know how often the company reports your purchasing habits to credit bureaus, the degree to which they reveal policy changes and how they work to notify you of such changes. With this kind of information, you can decide on whether or not you want the card with the satisfaction of knowing exactly what you’re getting into and whether or not you can handle it.
If you are a UK resident, try Credit Cards Web for a great selection of UK credit cards.
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I totally understand you wanting to pay cash for everything you buy, and not wanting to have any loans or credit cards, but you've got to understand that credit is a game, you just have to learn how to play it.
These unsecured cards are the only thing that's going to help you rebuild your credit. Even more, in most cases, than getting negative marks removed from your credit report.
I took my credit score from 580 to over 700 in under 6 months by doing two things, disputing negative marks on my credit report, and getting these merchandise cards.
See what you've got to understand is that the biggest mistake average people make with their credit, is that they pay everything off in full every month. In order for your credit score to steadily rise, you've got to keep a 10 to 30% debt to credit ratio on all unsecured debt, i.e. store cards, credit cards, and merchandise cards.
You determine your "high credit limit" by simply adding up the credit limits on all those cards or unsecured debt, and simply have balances that add up to 10-30% ratio of your high credit limit.
For example let's say you have three credit cards with a $5,000 limit each, so you'd have a $15,000 high credit limit. So you'd need to have a balance from these three cards of at least $1500 to get, and keep that 10% debt to credit ratio, and of course like I mentioned you could keep a higher balance than that, as long as that ratio never exceeds 30% you will certainly see your credit score rise consistently.
Now the problem for most people with bad or problem credit is that they simply can't get approved for regular credit cards, so they must get these merchandise cards instead. The key here is that a merchandise card and a "regular" credit card report and are considered the same on your credit report. So the credit limit on the merchandise care gets counted as part of that high credit limit we talked about earlier.
So for example: Joe wants to raise his credit score. He currently has two credit cards that have $2,000 limits on both. So currently his high credit limit is $4,000. But he has maxed out both of them. So his debt to credit ratio is 100%…not good.
So what does he do? He gets several merchandise cards. One with a limit of $10,000 and two more for $5,000 each. So now, Joe's high credit limit has suddenly gone up to $24,000. Now considering Joe doesn't abuse his merchandise cards and only uses $1,000 between the three of them, he now has $5,000 in debt to his available $24,000 which gives him the debt to credit ratio of about 21%. Which as we talked about, is between the 10-30% range.
Now Joe will continue to make the minimum payments on all his cards in order to show a good payment history, and this will allow his credit score to quickly and consistently rise.
This example can be done the exact same way if you're starting with no cards or no high credit limit at all.
Also, check out the credit secrets bible at the website I've listed in the source section of my answer here. I don't make any money if you buy one, or whatever, it just really helped me get ahead in the credit game, and change my life as far as credit goes. I tell all my friends and family that have credit problems about it.
Hope this helps,
Matthew
your crazy for even having 2 gl with that one lol
Find Credit Cards for those with Excellent Credit!
You can request your good credit to be reported as usually the utilities won't report unless you have an issue.
Get two cards and use them! Pay off immediatly and let them up your available balance as you go. The debt to asset ratio does not apply to you. Again two cards (say Visa and Amex) and you will be fine. It will take time but after a while your credit score will start jumping up.
Government looks to curb rise in unregulated loans, with some lenders charging as much as 2,500% annual interest Ministers are to consider capping interest rates as a campaign launches demanding action to stamp out legal loan sharking. The government is already committed to curbing rates on store and credit cards, but not the high cost of credit for Britain’s 3 million poorest borrowers. The campaign to end legal loan sharking, organised by the centre-left pressure group Compass, includes church groups and academics, debt advice groups and campaign groups such as Citizens UK. “Lenders can charge any price for credit, which means some companies charge £82 for every £100 lent. Annual interest rate charges of over 2,500% are also now common. Borrowing at these rates repeatedly tips customers into inescapable cycles of debt and poverty,” it said in a statement. It is estimated that around 3 million people use expensive doorstep loans. Both David Cameron and Nick Clegg enthusiastically…
If your bank is BofA they’ll still charge you the exact same $35 for rejecting the charge. Other banks vary.
Credit cards have gained so much popularity amongst the masses that no business could be termed as complete and efficient if it does not use charge card services. Really, without credit card providers, most of the businesses would wind up losing a significant chunk of company opportunities. Some people go towards the extent of classifying this kind of companies (which don’t use credit card services) as non-serious businesses.
lol glad to b of service..i accept all major debit/credit cards, money orders..no checks, we in a recession cnt get a bounced1 lol
Thanks a lot for reading my blog and RT-ing! Appreciated! Credit Cards – How screwed are you?
RT Americans now owe more on their student loans ($830 billion) than their credit cards ($827 billion)
Visa. But I'd recommend checking that you can use your ATM card at the machines in Europe, then you can just access cash in euros and it's debited to your own account back home. Cheaper than credit cards …
Scott F is right on it, but most lenders look for 3 open active trades, for example a car and two other credit cards. Keep the ratio balance (30%) he suggests on the credit cards. Most importantly, pay on time.
Offering Personal Loans, Credit Cards For The Credit Impaired.
How sexy is Vera! Wow!
Rofl, You know youtube got this guy in the prison showers.
Ughh..Having 2 cancel my credit cards & say bye 2 my cash! Get a new license & i.d. Worst part my $30 gift card from forever21 was in there
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Now the real story, two things, your signature (pin number) and authorization code on the credit card makes this a promisory note legal tender so the credit company pays the debt. So when you purchs you have paid, the credit company wants you then to pay again plus fees and interest. They have alrighty use the orginal promisory note to gain interest from the government, like a cheaque. This is called embezelment.
cause you know what your talking about aye?