Credit Cards Archives - FinanceFinder.org

Everything You Need To Know About Credit Cards!

FinanceBlogger — Thu, 24 Sep 2020 15:29:42 +0000

Different people have mixed feelings and opinions about credit cards. Others do everything with it, while others can't stand the thought of it. However, how it helps or harms you depends mainly on you since it's just a tool. It can be dangerous for you if you don't know how to control yourself.

What are credit cards?

It is a piece of plastic that's rectangular, a metallic alloy, or graphite that's connected to an account. Some cards might contain an RFID chip, but each one has a magnetic strip. If you're an owner, your name and account number might be imprinted on it.

A customer will use the card to pay for services or products using a bank's money, then repay it later. Just like a loan, the money used will have to be paid back with interest. It might be a problem in the future if you use the money and you aren't able to repay it.

How do they work?

When you need to purchase something or pay for a service and you decide to use your card, the information is verified and the cashier or merchant validates if the bank will allow the transaction. When all the information is correct, the transaction goes through, and the whole cost is added to the card.

The retailers pay to be able to accept the cards, while banks that issue the cards receive part of the amount as revenue. You receive a bill of all the accumulated transactions through your card from your bank.
The best way to deal with this is to pay it all off immediately. If you don't, you'll pay extra fees decided by your bank.

Interest is also added if you fail to make the payment to the amount you owe your bank. This is dangerous because the interest rates go up so quickly. When you make your payments on time, your credit rating is upheld. This helps you if you want to borrow money from other companies in the future.

What you should know before applying for one.

The following are the important things you should know before getting one.

● Every month you'll need to make a minimum payment. You should set up a Direct Debit for what you can afford to repay. This helps you not to miss payments.
● When getting the card, your provider will conduct a credit assessment. If you have a good credit rating, your chances for a successful application are higher.
● Some cards require a minimum age of 21, but you need to be at least 18 to apply.

Pros of credit cards.

● You get to buy now and pay later. When you don't have enough money to buy something you can still get it with your card.
● Convenience. They're easy to carry around and use anywhere. They're accepted in a lot of places than other cards like prepaid cards.
● Safety. You get more security than when you use cash. You can just report if it's stolen and it will be canceled by your bank. If any money is used you're most likely to get it back.

Cons of the cards.

● Extra fees. Apart from the interest you're supposed to pay, you might end up paying more money. This might be for exceeding the credit limit or even a late or missed payment. You can also pay extra fees because of using a cash machine.
● Costly. It can be expensive when you have traveled abroad and try to use it. The fees can be high.
● High-interest rates. You'll end up paying interest at the end of every month for your pending balance. The interest rates tend to be high and not as low as a personal loan. You can easily get in debt if you keep using your card and not paying.

What to consider when choosing a card.

● Annual fee. You might be charged for use of your card at the end of the year. If you have a balance due, the fee is added to it and your interest.
● Annual percentage rate (APR). This involves the cost of what you borrow on the card. Compare different cards to choose the one with the best APR.
● Charges. You're charged for late payments, exceeding your credit limit, and using the card abroad. Find out what charges apply.
● Introductory interest rates. You start by paying lower interest rates then it ends up increasing. Know how long it will last and the interest rates after.
● Minimal repayment. You pay a minimum repayment when you don't pay off your balance every month.
● Cashback. This is the money refunded back to your card. It depends on the amount you've spent. You might qualify for the cashback or not.
● Rewards. You can get loyalty points from spending money. You'll have more when you spend more. You can use the rewards to do a lot, like buy new things. You should check whether or not you qualify or not.

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Use A Credit Card To Quickly Build Credit

FinanceBlogger — Wed, 12 Aug 2020 15:49:31 +0000

We are often told that using a credit card can ruin your credit. However, if you are just starting to build credit, using a credit card is the quickest way to build credit. It is important to learn how to manage your card so you do not ruin your credit score. Just follow these simple steps and you will soon have a credit record of your dreams.

Credit Score
Before applying for a credit card, check your credit. It is important to know that score when applying for credit cards. Credit card companies will determine how much credit they will give you based on your score. Certain cards are perfect for those who are trying to build credit.
It is important to keep your eye on your credit reports. Companies such as Discover offer both cardmembers and nonmembers free credit reports and other tools to help manage your credit. Look at your FICO score. You can translate your score this way:

Exceptional: 800-850
Very good: 740-799
Good: 670-739
Fair: 580-669
Very poor: 300-579
So, if your score is already in the exceptional range, finding a credit card to fit your need will not be difficult. However, if you are in the fair to the very poor range, it will take some research to find credit cards.

What Goes Into Your Score Anyway?
Several aspects go into determining your score. FICO breaks it down like this:

Payment history: 35%
Amounts owed: 30%
Length of credit history: 15%
Credit mix: 10%
New credit: 10%

FICO looks at your credit in several ways. For example, for the amounts owed, FICO looks at the credit you owe such as car loans, student loans, credit balances because they judge them differently. They also look at how much credit you have overall and compare it to how much you are using. Though this may seem a bit confusing, this leaves lots of opportunities to improve your score.

A Secured Card May Be The Answer
If you have bad credit or no credit at all, a secured credit card may be the best solution. Just about anyone can get a secured card, however, there is a catch. Unlike with an unsecured, a secured card requires a deposit. The deposit can range from 200 dollars or more. The deposit is usually the same as the amount of credit that they give you. It is important to note, however, the interest rates are high. You use the secured card the same way as an unsecured card. As long as you make timely payments, your credit score will improve. Once you prove that you are responsible, the credit card company may offer to switch you to unsecured credit.

Do Not Go Crazy
It may be very attempting to apply to every credit card offer that comes in the mail. There is no hard and fast rule as to how many credit cards a person has too many cards can cause trouble. Not only does it get hard to manage them, but it is also too easy to overspend. The next thing you know is that you have accrued more debt than you can handle. This will harm your credit.

Pay On Time
There is nothing more important to your credit than making your credit card payments on time. Missing one payment can have a major impact on your credit. Missed credit card payments will stay as a negative mark on your credit record for seven years. On the flip side, making credit card payments on time will only improve your record. Set up autopay to prevent the chance of missing a payment. It will not take long to build the credit that you desire.

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Using Your Credit Cards To Help Your Credit Score

FinanceBlogger — Mon, 03 Jun 2019 13:43:02 +0000

We all want to give our credit score a boost one perfect way to do that is by the smart use of credit cards. Regardless if your credit score is sky high or down in the dumps there are ways to leverage the inherent power of credit cards to raise your score.

The Easiest Change You Can Make

Everyone loves easy and nothing can be easier then to simply change the way you use your card. Sure they might be credit meaning you are borrowing money now to pay it back later but you do not have to use them that way. Start thinking of your cards as more of a debit versus credit style card. The beauty of your card comes in the form of letting you spend now and pay later. A debit card withdraws money from your existing account. This will require you to make a budget one that keeps track of the money in your account as well as keep track of money you are spending. Not all cards post balances right away once your balance is posted pay it off straight away. This will keep your balances at zero at all times. You wont be running into any trouble with overdue interest charges as well as any late payment charges and fees that get added when your balance due is not paid. This will also require discipline to pay off any and all charges as soon as they are posted.

Use Credit Utilization To Your Advantage

When it comes to using credit cards effectively you will always want to keep credit utilization in mind. To understand how to take advantage of it you need to know what it is. Its a pretty simple concept actually its only a ratio of your current outstanding card balances compared to all of the total credit limits. A simple example to illustrate this will help to make the point crystal clear. We shall assume for this illustration that all of your cards combined have a credit limit of $1000. You have spent $500 of that amount on purchases. This means you are using 50% of your credit.
So knowing what it is can be wonderful but how do you use this to your advantage. Think of credit utilization like a gas tank the less you spend the more full your utilization is. The fuller your gas tank the longer you can go without refilling. Financial experts recommend that you try to stay in the 10% to 30% credit utilization ratio. Instead of going that high you should consider making it even more effective with keeping it below 10%. While this may seem difficult it really is not. Pre plan your purchases and paying your balances off right away will keep you in line to make this work to your advantage.

When You Pay And How Much You Pay Is Critical

It has been mentioned already regarding payment of any balances. This cannot be overstated however. If you follow this simple rule it will never fail you and keep your score rising and looking great. The phrase you should remember is “Pay your balances in Full Before the End Of Each Billing Cycle”.
While this can be difficult to do for many careful budgeting and preplanning how your money is spend is the key to making this work. Doing this can seem difficult at first but will easily become a routine once you get into the habit. This strategy keeps you out of any charges or penalties as well as keeping your credit utilization score in the range that helps you.

Accounts Should Not Be Closed

Along with credit utilization you will need to make sure not to close accounts. This will automatically lower the amount of credit you have not to mention it hurts your credit score. High interest cards can be replaced with lower interest ones if that makes you feel better. Some cards have an annual fee these are generally rewards cards. There are many online calculators that allow you to figure out if your annual card is worth it. You may have some cards that you find you just don’t use as much anymore. Again refrain from closing the account and instead use it once a year that way the account stays open.

Using your cards as tools to raise your credit score. These were just a few tips to do that. These are easy to follow methods that with a little due diligence and some budgeting will make it easier for you to get the best possible credit score.

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Credit Cards – The more you know.

FinanceBlogger — Mon, 29 Apr 2019 13:42:13 +0000

Since the inception of credit cards in the late 1950s, life has been made easier and in so many ways. One simple credit card has opened up doors for so many opportunities that are beneficial to buyers as well as sellers. The fact that the advantages cut across all areas of business and life, goes to show that regardless of which side one is, everyone stands to gain. However, caution is advisable, access to a credit card is not always a guarantee of access to cash, and there is the risk of putting too much credit on the card it becomes a burden to pay back.
Benefits of having a credit card as a buyer
The benefits of having a credit card are extensive, especially to a buyer, the biggest being; they remove the need to carry excessive amounts of money in liquid cash. Most major credit cards are universally accepted eliminating the hassle when trading with different currencies, and this means one can rest easy even while traveling.
Credit cards are also convenient for hire purchase or for spreading out the costs of large purchases. Instead of one huge payout, one can opt to break down the price of a purchase to manageable sizes and stretch the cost over a few months. This feature is also handy in emergency cases, and credit cards allow one to pay for sudden and unexpected needs even without ready cash. For those on monthly salaries, credit cards are Godsend. Thus they give one the power to buy services or products without paying for them until the paycheck clears.
To boost the usage if the cards, most credit cards offer incentives, and many also carry a loyalty scheme where cardholders can redeem points for various gifts such as frequent flier miles or an expense paid holiday. With the reduction of cash carried, credit cards have reduced the chances of losing cash and theft; using a credit card also means that embarrassing incidents of insufficient funds are relegated to the past.
Balance transfer credit cards, give the user the ability to shift debts at fractional or zero interest by reducing the amount of interest where debts are paid off much quicker. However, on the other end of the spectrum are credit builder credit cards; though they usually charge steeper interest, consistency in repayments builds up ones credit rating. Prompt repayment leads to negligible or no interest, and this acts as an incentive as these cards usually target those with limited or poor credit reports.
In various countries, purchases made between set parameters are usually protected by legislation such as the Consumer Credit Act, which provides purchase protection for anything above £100. This means that if the item is faulty, misplaced or even if the transaction goes awry, one can lodge a claim with the credit provider. This feature is however availed after proof that the loss was not due to negligence; within certain terms, one can also claim a refund if the card happens to be used in fraudulent deals.
Demerits of credit cards
Unlike their cousins the debit cards, which works with only the available account balances, credit cards are more like loans, allowing one to make purchases on credit. For all the conveniences offered, credit cards usually charge high-interest rates which are usually compounded and delays in repayment lead to the building of interest. This increases the possibility of debts that one struggles to pay back. Different credit card providers offer different amounts of grace period where one can pay back their balance without accruing any interest. Introductory interest rates, used to lure first-time card users are usually limited to a set period (commonly 6-12 months) may at first seem good but the rate rises after that time elapse, and if caught unawares, the ballooning debt may lead to bankruptcy.
Most credit cards come with monthly payments, and interest is compounded monthly, this means that missing payments leads to higher amounts. Defaulting or delaying payment can wreak havoc on a card user’s credit rating; if one’s rating is less than favorable, it becomes harder to access credit. Exceeding the credit limit can lead to other fees and levies that add to the burden of the credit balance repayment.
When signing for a credit card, it is recommended that one reads the fine print and the terms and conditions in the agreement. There may be surcharges when using the card for cash withdrawals, and some cards have restrictions on how and where to use them. When travelling out of the country, it is necessary to check with the credit card provider on the use of the card in different countries.
With all this in mind, deciding on how to use a credit card appropriately, as well as how to manage finances becomes easier. Thus, avoiding unnecessary issues in regards to the finances.

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Everything you should know about credit cards.

FinanceBlogger — Mon, 29 Apr 2019 13:40:58 +0000

A credit card is a payment card that someone is approved for that allows them to have a line of credit that they can use to make purchases at all kinds of places. These are essentially loans that the credit card company gives a cardholder and allows them to make the purchase and pay the money back in small installments, plus added interest fees. Credit card companies can also charge fees for other services that they offer their cardholders.

Why Should Someone Have A Credit Card?

Credit cards can be tempting, but they can also be very necessary. One of the advantages to most credit cards is that you don't have to use them unless you want to. They can be, in a manner of speaking, a safety net for emergencies. There are lots of things that can happen in life that you may not be prepared for, a credit card in your pocket makes sure that you are prepared when something unexpected strikes.

Credit cards are also good for building credit. It is almost impossible to make any major purchase without some credit. Houses, cars, and other major purchases are a dream to someone who hasn't built up their credit score. One or two small credit cards can make all the difference. A couple small purchases per month and then paying your balance off can help you build good credit for when you are ready to loans for a house or something else big in your life.

Types of Credit Cards

There are a few different types of credit cards that someone can have. The most popular is an unsecured credit card. This means that the company has issued you a line of credit without you having to put up any collateral for this loan. Essentially, they are trusting you with a certain amount of money and letting you make payments on whatever percentage of that money you spend. There are also secured or "prepaid" credit cards. With these you have to put up some form of collateral, usually money, and they issue you the card. These types of cards allow you to build credit without a lot of risk. Then, there are store specific credit cards. These cards can only be used at the store that issues them. These cards are easier for someone to get than traditional unsecured cards because they can only be used in one place, eliminating a lot of temptation.

How Do Credit Cards Work?

Credit cards work in a very easy way. You use the card to make a purchase at a store, restaurant, or wherever else you shop. The card company gives the money to the place you made the purchase. Then you make payments to the credit card company until the balance is paid off plus interest that is charged for the use of the card. Most credit card companies don't charge interest if you pay off the card each time you get your bill. However, if you go past this time to pay it off they will charge you interest. This interest is depending on your credit, the card company, and how long you take to pay off the purchase. The faster you pay off your credit card debt, the better your credit will be. Also, the more you pay your card off in time, the more credit the credit card company will allow you. This will allow you to make larger purchases as you build credit with them.

Credit Cards offer Security

While the idea of having a credit card can be a little scary with the amount of debt that you could build up, there is also a sense of security that can't be denied. If you are someone who carries cash around, you understand the risk of what happens if you loose your wallet. The chances that you will just have lost that money and never see it again are pretty good. With credit cards, a simple call to the company can shut the card down, and whoever finds your card won't be able to use it. The company can then issue you a new card and your money is secure. They also give you a sense of security in emergency situations. There is nothing worse that being caught on the side of the road and have no money to take care of the car problem. Medical emergencies that you aren't prepared for can be a nightmare, but if you have built up credit with a good company, it can take some of the edge off.

In conclusion, while having a credit card can seem scary, there are a lot of benefits to having one as well. If you can be responsible with your money and make sure that you use it when you need to rather than making frivolous purchases all the time, a credit card can be a very handy tool in your pocket for many reasons. It can be the start to a great future and the security for an easier future if you use it responsibly.

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Information about credit cards.

FinanceBlogger — Fri, 01 Mar 2019 18:48:25 +0000

A credit card is a form of payment card, which is issued to a user often termed as a cardholder to enable the user to pay for either goods or services obtained from a merchant. The payment comes as a result of the instructions from the cardholder to the card issuer to pay that given merchant a certain amount of money. When the money is being paid to the merchant, the account linked to the credit card will be deducted the amount plus any transactional charges incurred in the course of the transaction.

Creation of a credit card.

The issuer of a credit card is usually a bank. For one to be a holder of a credit card, first of all, the person has to have a bank account opened in the bank where he or she intends to take the credit card. Once the bank account has been opened, a certain amount of money is deposited into the account. This amount varies in different banks. After that, the bank account holder applies for a credit card from that bank. After a complete application and verification process, the account holder is issued with a credit card.

Types of credit cards.

1. Standard credit cards.

These credit cards do not offer any frill or rewards. They are easy to understand; therefore they are recommended for those people who want a credit card that is not complicated. Most standard credit cards allow one to have a revolving balance to a recommended limit. Exceeding this limit will lead to no allowance in credits.

2. Balance transfer credits.

Most credit cards come with the ability to transfer balance. Balances transfer credit cards differ from the rest in that they allow transfers at low introductory rates until a certain period elapses. Money saved using these cards has a higher interest rate compared to the other money.

3. Rewards credit cards.

They are cards that offer rewards when a purchase has been made. Reward credit cards are subdivided into cash backs, point's cards, and travel cards. The choice of the card to use depends on the preference of the cardholder.

4. Student credit cards.

These are cards which are specifically made for college students. The cards are created with the knowledge that students are young and do not have a lot to put into the accounts of these cards. Mostly, student cards come with added advantages such as low interests and rewards.

5. Business credit cards.

These cards are created specifically for those people who have a business. The cards provide the business owners with an easy method of keeping business and most business transactions. The card facilitates separation of the business-related matters from personal issues.

Basic features of a credit card.

Credit cards often differ on what they offer, but most credit cards have the same features. It is important to study the feature of a credit card so that it is easier to choose what type of credit card to use.

1. Credit limit. A good number of credit cards have certain amounts of limit. The limits include purchases, balance transfers, finance charges, cash advances, and fees. The credit cards cannot allow one to go over his or her credit limit. If one goes beyond the recommended limit, the bank will raise the interests of the credit cards, or charge you an over limit fee.

2. Balance. The balance in your credit card is the amount you owe an entity. This amount includes the purchases made, finance charges, and fees incurred. The higher you have credit charges, the more you lower available credits for you. Higher balances in the credit card will raise your credit utilization at the same time lowering your credit score.

3. Annual percentage rate. Annual percentage rates are the interest rates that will be applied to your balance once the balance is carried past the grace period. Different credit cards have different annual percentage rates depending on the type of transaction that was made.

4. Grace period. This is the amount of time up to which you have to pay for the balances one has. When the grace period is exceeded, then there is a fee one has to pay.

5. Credit card fees. A credit card may incur various fees that will be charged from the credit card accounts. These fees include a late fee, annual charge fee, financial charge, over limit charge among other charges.

Conclusion

Credit cards play a significant role in the mortgage industries. They incur low mortgage rates compared to some other forms of mortgage. The cards have provisions that will ensure there is a significant and secure transaction. Research on credit cards and mortgage rates should be done carefully to avoid making hasty decisions that may affect you afterward. It is important to consult the bank on matters concerning the credit card before applying for that credit card.

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Best Credit Cards for Travelers

FinanceBlogger — Fri, 01 Mar 2019 18:47:21 +0000

Below are a list of Credit Cards for Travelers. With these credit cards you can earn miles/rewards/cash back when you spend on purchases that can benefit you when traveling.
1. Propel American Express from Wells Fargo, propel credit card has no annual fee. When you spend 3000 dollars within the first 3 months of opening the account, you can earn 30k bonus points. You can also earn 3X points/ miles for every purchase on flights, hotels, restaurants, car rentals, and gas stations. It requires a credit score of 700 or more, but it mostly depends on your income.
2. Gold Delta SkyMiles from American Express, With the gold card you can earn 30,000 miles after spending 1000 dollars in the first 3 months and you can earn a 50-dollar statement credit after making a Delta purchase. There is a 0-dollar annual fee for the first year and then 95-dollars.
3. Platinum Delta SkyMiles from American Express, you can earn 35,000 miles when you spend 1000 dollars within the first 3 months and a 100-dollar statement credit after making a Delta purchase in the first 3 months as well.
4. Chase Sapphire Preferred Visa Credit Card, this card gives you 50,000 bonus points when you spend 4000 dollars in the first 3 months, which is 625 dollars when redeemed through chase ultimate rewards. You can also earn 2X points on travel and dining at restaurants. There is no annual fee for the first year and 95 dollars thereafter.
5. Costco Anywhere Visa Card by Citi, this credit card does not give you any travel miles, but it gives you 3% cash back on restaurants and eligible travel worldwide and there are no foreign transaction charges. This card gives cash back for all other purchases.
6. Venture Travel Rewards Card from Capital One, earn 50,000 bonus miles once you spend 3000 dollars within the first 3 months from the account opening. You can also earn up to 100 dollars credit for Global Entry or TSA. The credit score requirements for this credit card has to be excellent. 0 dollar annual fee for the first year and 95 dollars thereafter.
7. Venture One Credit Card from Capital One, on this card you can earn 20,000 bonus miles when you spend 1000 dollars within the first 3 months. There are no annual fees.
8. Discover it Miles, this card gives you 1.5X miles for every dollar spent on all purchases from airfare, hotels, groceries, online shopping, etc. If you choose to close this account, you still would not lose your miles. Can be used worldwide. No Annual fees. This credit card requires good to excellent credit scores.
9. Bank of America Travel Rewards Credit Card, earn 1.5 points for every dollar spent and 25,000 bonus point when you spend 1000 dollars in purchases within the first 3 months of account opening. Has no annual fee. This credit card requires good to excellent credit scores as well.
10. Southwest Rapid Rewards Premier Credit Card, earn 40,000 points once you spend 1000 dollars in the first 3 months and you can earn 6000 after your card member anniversary. Earn 2 points per 1 dollar spent on Southwest purchases and rapid rewards and hotels, car rental partner purchases. No foreign transaction fees. There is a 99-dollar annual fee.
11. Flex Perks Travel Rewards from US Bank, earn 25,000 enrollment Flex Points (which is $375) when you spend 2000 dollars in the first 4 months form the account opening. This card gives you more time to spend your 2000 dollars than most other credit cards.
12. United Explorer Card, 40,000 bonus points when you spend 2000 dollars within the first 3 months. No annual fee for the first year and 95 dollars thereafter. You can also earn 2 miles per every dollar spent on hotels and restaurants. Up to 100 dollars global entry or TSA.

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What You Should Know About a Credit Cards

FinanceBlogger — Wed, 27 Feb 2019 21:34:20 +0000

There are many advantages of having a card to swipe or touch to instantly pay for a night out on the town or buying that textbook your child needs for their college course. The cards for credit have many types and the choices to fit your needs can be challenging but quite rewarding after your search is done. There are few tips to help you make the correct choice when picking a card. You should be aware of tips to make using a card most beneficial.

There are a few advantages and disadvantages to having credit cards. A very good advantage of having the card is can give you the buying power, and it will make expensive items or services for anyone who is on a tight budget more affordable. A card may offer rewards for purchases, and you are earning or gaining something in return for making purchases that you typically would make. The reward comes in the form of points, frequent flyer miles, cash back and much more. Convenience is an advantage gained by anyone who does not like having cash on their person. A card of credit is accepted almost anywhere. You can build credit history by using a card responsibly. For anyone who likes to track all there purchases, a card can allow you to monitor your spending. There are a few disadvantages to owning a card. You can be mesmerized by the purchasing power of a card, and this could lead to overspending. You can get into debt quickly since the card allows you to spend money that is not readily available. Fees and interest rates can be expensive for cards that are maxed out. The use of a card will open a person up the possibility of fraud and identity theft. A person could have numbers and information stolen. If you carry a balance on your card, interest rates and charges could drive you into great debt.

The type of credit cards caters to taste of almost everyone. There are several categories a card could fit, but the more popular categories are unsecured, cashback, and travel rewards. The unsecured card does not require a person to make a deposit that used as collateral. Most cards will be categorized as an unsecured loan. A cash back card allows the cardholder to earn cash for most purchases. The cashback card can be based on a percentage. There are many brands that would present a cash back card. For example, card allow 2 percent cash back for every purchase. Cashback card could use a point system as well. A travel card will allow a cardholder to earn reward points or frequent flyer miles on purchases. It can help you save money on travel.

There are a few tips to being approved for a card easier. You must be aware of your credit score before the application process. The FICO score, you must know it and understand it. You want to ensure credit score is high enough to have a chance at getting approved the for a specific card. You want to obtain a credit report from the major credit bureau, and ensure the accuracy of the credit report. You must pay your bills on time to ensure you have a good payment history. Good payment history will help your credit score that provides a better chance of approval for a card. You do not want too much debt so ensure you reduce debt before applying for a card for credit. You must find a good card offer. A good card offer will meet the needs and spending habits of the potential cardholder.

There are few tips for using credit cards that everyone should know. You always to want to pay off your credit bill each month. By paying in full, you avoid credit debt that happens when high-interest rate accrued on an unpaid balance. You must always pay bills on time and never be late. If you pay late, it could translate to paying a late fee. Late fees can be expensive and easily avoided by paying your card bill late. You should always be aware of your card limit. By knowing your card limit, it could prevent overspending. It may help you to set the limit of how much you will allow yourself to spend some of the credit limits. A good example would be out of $3,000 credit limit, you only will allow yourself to spend $700. You should always take advantage of cards that offer rewards and perks. A card may offer perk such as it may offer an extended warranty on certain purchase. It great to get rewards for stuff you normally do on a typical day or regular expenses. You want to ensure you are able to pay your card in full to really take advantage of getting rewards

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The Six Things You Should Not Pay With Your Credit Card and Why

FinanceBlogger — Wed, 27 Feb 2019 21:32:48 +0000

I have a few helpful tips that might help you avoid anymore more credit
card problems in the future. Some of these tips are based on my own
experiences, and some are based on what other experts have said in the
past.

1) Did you know that you can use your
credit card to pay your mortgage or rent? However, that does not mean
that is a good idea. This is one idea that is good in theory, but not in
practice.

Some of you might be in a bit of cash slump. However, using a card with a
high limit is not going to help you either. What happens when you
cannot pay the amount you charged in full right away? They will add some
extra fees to your card. That $500 payment you made at the beginning of
the month is going to double by the next month. You might have a $4500
limit, but that is not helping your case.

You can burn through the $4500 limit with just 2-3 payments, including
the extra fees. To make matter worse, that is going to hit your credit
score. You might earn some gold stars for paying on time, but those
stars will fade once you cannot afford to pay the full $4500 in full.

2)
Some of you might use your card for small purchases. They recommend you
do that for building credit and earning points or rewards. You may have
earned the free airline miles, but you now have a balance that higher
than you expected. Using your card for small purchases here and there
adds up. You may even get to a point where you have a balance too high
to recover.

I have been there. I know how you feel.

That is why you need to be careful when and how you pay for the "small
purchases." They add up over time. You are going to have a hard time
paying it down unless you have an extra $10,000 lying around your home.

3)
Taking out a cash advance against your own accounts is another option
that appears to be good in theory, but is, once more, bad in practice.
You are essentially borrowing against yourself. You have to repay that
money back to your account. Some people might say, "I can handle it",
but they come to realize how grossly mistaken they are.

You could be subjected to high fees and interest rates, depending on how much of an advance you take out.

I am sure some of you have heard of those payday loans, including
Amscot. They make it appear attractive on the surface, but it is
anything but. They expect to be paid back on time and in full. It is the
same way a cash advance works. Think twice before you do something like
that.

4) What happens when you do not have the
money to pay for those medical bills? You can use a credit card, but,
once more, that decision should be weighed carefully. Do you have a
credit card that charges a high rate every time you use it, regardless
of how large or small?

A bill that starts at $300 can easily go up to $650. Once more, it
depends on the taxes on the medical bill and the interest rates on your
card, but it will still be expensive. Think twice before you do it,
especially if you have a limited income. You can find other ways.

5)
Some college kids like the idea of using their card to pay for
everything, including books. It might be a short-term fix to a long-term
issue, but the issue is still there.

The interest might keep you from paying it down. You can also add in the
2 or 3% fee your card charges you for the convenience. They do add that
convenience charge in there. A bill of $40 for books could go as high
as $100 when everything is done.

Find another way to make the payments. Talk to someone in the financial aid department. That is why they are there.

6)
Do you want to pay for your new car with your credit card? You can earn
some major points. The only downside is that you will be stuck with a
high balance. That high balance will get higher depending on the
incurred interest rates and extra fees.

Conclusion

I am equally as guilty of making bad money choices with cards. Some lessons I have had to learn the hard way. We are all a work in progress. We can learn how to make better choices together.

The post The Six Things You Should Not Pay With Your Credit Card and Why appeared first on FinanceFinder.org.

Do I Need a Credit Card? The Benefits of Owning a Credit Card

FinanceBlogger — Fri, 25 Jan 2019 18:05:29 +0000

In our society owning a credit card is one of the greatest tools a person can have. It allows you to build your credit and makes shopping not only more convenient but a lot easier. Carrying around a wallet that is packed to the brim with cash is a thing of the past. A credit card gives you the ability to shop online, pay utility bills in advance, and offers plenty of perks and rewards.

Here are the Benefits of Owning a Credit Card:

Protection

One of the greatest benefits of owning a credit card is it offers you protection. Many people do not realize that you get 100 times more protection when using a credit card, then you would with a debit card. Here's an example, if you purchase a $2,000 laptop online using your credit card and if it didn't arrive, your card provider will more than likely refund your money. Credit card owners are also provided protection against fraud and identity fraud.

Rewards

Many people get a credit card simply for the perks that come with it. It allows you to not only build your credit, but it also gives you the ability to earn points while you spend. Many credit cards will also offer reward points, which you can use for groceries, hotel fare, and even purchasing gas. They might also offer some sort of sign up bonus, which could include, bonus points or reduced interest rates.

Less Cash on Hand

There is nothing I hate more than walking around the city with a large amount of cash in my pocket because as a New Yorker, one of my biggest fears is being robbed. One of the reasons I got a credit card was to limit the amount of cash I carry. We live in a technologically driven society that only uses cash when it's absolutely necessary. Today's society is becoming more reliant on using credit cards or digital wallets, such as PayPal, Apple Pay, and Chase Pay. Another advantage of owning a credit card is it works as a universal form of currency, which can be extremely useful when traveling to other countries.

Build Your Credit

When I purchased my first credit card, I'll be the first to admit that my credit wasn't the best. Owning a credit card will help improve your credit rating as long as you remember to pay your balance in full and limit you're spending.

What Affects my Credit Score?

First, you should understand what actually affects your credit score. Understanding your score can be a bit complicated because many people fail to realize that most of the financial transactions you make, could potentially hurt your score.

Too Many Credit Checks

Every time you apply for a loan, credit card, or apartment application will require a hard inquiry credit check, but what many people fail to realize is these inquiries can affect your score up to 10%. Before you allow a credit check to be performed, you should always do plenty of research and only do so if it's absolutely necessary. This will avoid unnecessary credit checks and lessen the risk of potentially damaging your score.

Late or Missed Payments

Late or missed payments can drastically affect your overall score, which can account for 35% of your total score. Missed or Late payments can definitely hurt your credibility; it will also make it a lot harder to secure a loan. If you're a few days late on making a payment, you'll be charged a late fee, but if you're continuously late or if you miss the due date completely, your interest rates will increase. It's important to always pay your creditors on time or it could potentially reset your interest rate to a default, which would result in a significantly higher interest rate, often as high as 29%. However, if you're more than 30 days late, the credit bureaus are usually notified, which can stay on your credit report up to 7 years.

Bankruptcy

Bankruptcy is a word that creditors never want to hear. Bankruptcy is the first thing they notice on your credit report, which can severely damage a score. Liens and judgments can also hurt your score, but usually, these disputes can be easily settled without dramatically impacting your score. A chapter 7 bankruptcy will show up on your credit report for about 6 years, but a Chapter 13 bankruptcy will usually remain on your credit report for 10 years. Your credit score will more than likely eventually recover, but many lenders may still be hesitant to work with you. Contrary to popular belief, filing for bankruptcy can actually help your credit. Often times, allowing your debts to go into collections will do more damage to your score, than filing bankruptcy.

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The post Do I Need a Credit Card? The Benefits of Owning a Credit Card appeared first on FinanceFinder.org.