Credit Card Tips

[netfree]

Credit cards can be helpful in emergencies or if you are able to pay off the balance each month, but be wary! Credit cards can also get you into trouble. Here are some helpful hints on using credit cards:

Fees

1.Watch out for carrying balances. Some cards charge 20% or more in interest. (Interest is usually called "finance charges" on your statements.)

2.Fixed rates aren't always fixed! A credit card company can change the rate by informing you 15 days before changing the rate.

3.Look at your statement carefully and call the company right away if you have any questions.

4.There is usually a large finance charge for cash advances and interest begins accruing as soon as you take the money out, not after the next statement closing.

5. Be aware of annual fees. Many times you are charged $50 or more just to have the card.

6.Watch out for introductory offers! When you receive a credit card offer in the mail with a low rate, it may expire in three or six months. Note when and by how much the rate increases after the "introductory offer" expires. You may not remember when it expires, but the card company will.
7.Think about your purchases. If you are not able to afford the purchase now, chances are you won't be able to afford it in a month when the credit card bill comes in!

If you get behind

1.Cut your recreational expenses.
2.Call your credit card company. They may be willing to work out a repayment schedule with you.
3.Develop a budget and stick to it! Everyone makes mistakes, but credit will follow you and hurt your eligibility for mortgages or loans down the road.
4. Look into credit counseling services. Many offer educational programs or individual counseling sessions to help you get back on track.

[randyorton]

Hi
Secured credit cards are also great for individuals having poor or bad credit due to having no credit. The prepaid cards are treated as new credit and when paid on time, will turn bad credit scores into good scores. If you have bad credit or no credit, look for credit cards designed for poor credit but with good terms. In spite of having no credit or poor credit, there are still many credit cards offering new credit with low APR and special offers.

[katrina113]

only only tip i have for anyone swho has a credit card, pay your full closing balance to avoid interest! aND IF u struggle to do that look at your low rate options or personal loans to pay them out, sometimes on a personal loan the rate maybe 1% higher but it gives u a structured payment plan and it wont get on top over u and much easier to handle. that and provided u cut the casrd up it will stop u getting into more debt/

[sasajovanovic]

Thanks! Grat tips!!!

[Juliawilliams]

Here are some terms involved which one should be aware of:

Cardholder: The holder of the card used to make a purchase; the consumer.

• Card-issuing bank: The financial institution or other organization that issued the credit card to the cardholder. This bank bills the consumer for repayment and bears the risk that the card is used fraudulently. American Express and Discover were previously the only card-issuing banks for their respective brands, but as of 2007, this is no longer the case.
• Merchant: The individual or business accepting credit card payments for products or services sold to the cardholder
• Acquiring bank: The financial institution accepting payment for the products or services on behalf of the merchant.
• Independent sales organization: Resellers (to merchants) of the services of the acquiring bank.
• Merchant account: This could refer to the acquiring bank or the independent sales organization, but in general is the organization that the merchant deals with.
• Credit Card association: An association of card-issuing banks such as Visa, MasterCard, Discover, American Express, etc. that set transaction terms for merchants, card-issuing banks, and acquiring banks.
• Transaction network: The system that implements the mechanics of the electronic transactions. May be operated by an independent company, and one company may operate multiple networks. Transaction processing networks include: Cardnet, Nabanco, Omaha, Paymentech, NDC Atlanta, Nova, TSYS, Concord EFSnet, and VisaNet
• Affinity partner: Some institutions lend their names to an issuer to attract customers that have a strong relationship with that institution, and get paid a fee or a percentage of the balance for each card issued using their name. Examples of typical affinity partners are sports teams, universities, charities, professional organizations, and major retailers.

[mandukam]

Nice Article. Informative . Keep posting

[Baits32]

yeah just keep it personall i think it will save ur alot of money

[cfarrell]

When you get your credit card, sign up for direct debit at the same time, to ensure that you pay it off in full each month.

That way you avoid interest charges, and help ensure that you won't buy stuff that you can't afford to pay for by the end of the month.

Also, many credit cards give you points or rewards. Worth checking around before signing up for one.

[haredim]

thank for the good tips.

[ekgrin]

Its advisable not to use your CC very often as using plastic money is addictive and the repayment can break your finances and make you a pauper.