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There are a lot of reasons why you should have your own credit card. In fact, it would be easier to list the reasons why you shouldn’t own your credit card but because we don’t want to do things easily, we shall still persist to listing the top reasons why owning a credit card is more of an advantage to anyone rather than a disadvantage.

And without further ado, let’s start with reason number one. Reason number one is basically why most young people nowadays are eager to apply for credit cards and we certainly can’t blame them. Owning a credit card lets you purchase items that were once out of their reach like designer apparel or even something as functional as a high end laptop or a secondhand car.

Reason number two would be the fact that owning a credit card would allow people to feel monetarily prepared when it comes to circumstances that they didn’t expect to happen like mortgage payments that they didn’t know would expire soon or accidents that would require them to pay for medical bills and other similar events. If you own a credit card, you don’t have to worry that you would need to waste precious time going to the bank or a lending institution for a loan. If the limit on your credit card is high enough, all you’d need is perhaps your insurance and you’re all set.

Before we proceed to the most pressing of worries of credit card owners, let’s first discuss the importance of choosing the right type of credit card – just in case you don’t own a credit card yet. There are two primary kinds of credit cards – the reward kind and the non-reward kind. The reward type of credit card lets you accumulate bonus points and redeem prizes simply by using your credit card. The non-reward credit card doesn’t offer anything in terms of rewards but it does set you free from high interest rates.

And now, we finally get to the heaviest of all burdens: managing your credit card bills. There’s a trick to managing your credit card bill but mastering it won’t be easy. If you have the patience and determination however, you’d realize that paying for your credit card bills have never been easier!

First, limit the use of your credit card. Secondly, if you find yourself with some extra money, use it immediately to pay for your credit card bills – don’t even wait for the bill to arrive because that would just mean more interest being heaped on you! And lastly, always check if there are any errors in your credit card statement. It’s rare but entirely possible.

Tags: Credit Cards, Credit, American Express, Debit, Credit Card Application

There is no specific credit card for every person. The best credit card for an individual should really depend on his or her practices. When a person is not able to pay his or her bills on time, he or she will just be further in debt because of the higher interest rate. That is still the case today, but there are now credit cards that offer lower interest rates.

The usual factors that are important to look at are the following: the introductory Annual Percentage Rate, Annual fees, Fixed Interest Rate, Member Benefits, Reward Programs and Other services.

For a person who regularly pays his or her credit card debt on time. That person will have no problem choosing a great credit card company that provides additional services, rewards, etc. The user should just concern him of the annual fees or other fees that he or she is not willing to pay.

However not very much people have the discipline to save up and pay their credit debt on time. If you are one of those people you should try to look for a credit card company that offers low interest rates. If you have an APR rate of 20% for items that you have not paid on time, the damage on your wallet may be felt later on.

As said earlier if you have a great credit history, you may want to get a credit card that rewards you. There are lots of rewards that certain credit cards offer. There are some that offer a kind of frequent flyer miles reward, a cash back reward and other miscellaneous rewards such as gas rebates, store discounts and entertainment rewards.

Cash back rewards system will give you some cash back for a certain amount of purchases used on the card. The user will receive a small percentage of cash back from the purchases the user made with that card. The Citi® Dividend Platinum Select® Credit Card and Chase Cash Plus® Rewards Visa Card are examples of credit cards that offer cash back rewards.

There are other things that one should consider when choosing the right credit card. Here are the other things that one must consider as well.

•    Some cards provide membership benefits such as travel insurance and baggage protection when traveling.
•    The type of credit the person would be approved. The person may have bad credit rating, so he would need to realize that he would need to apply for those credit cards for bad credit ratings.
•    The bill payment services and the online account access.
•    Protection against unauthorized spending.

Tags: Credit Cards, Visa Card, Debit, Budget, Credit Card Application

Because of the need of many people for quick cash or a way to procure things even though they don’t have money. There are now many emerging credit card companies for every person’s different situation. One kind of Credit Card Company is those that see a niche opportunity for people with bad credit history. There are also credit card companies that capture as specific market like students and for businesses.

Credit Cards for People with Bad Credit History:
For whatever reason, you may have encountered problems financially that’s why you weren’t bale to pay your bills. If this happens, you might think based on traditional bank’s response that you will no longer be bale to get a credit card. Now there are a number of options for people looking for a credit card if they have bad credit history or currently fixing it.
1.    Secured Credit Cards
a.    It requires a collateral before your card can be approved. You would need to make a predetermined amount of deposit to be able to have a credit card. Generally, the deposit should be the same as the amount you would want to borrow. Collaterals that the company can accept any items that have monetary value such as jewelries, cars, stocks, etc. These are used by people who are building their credit history.  You would need to understand that the lending company only wants to have a security payment because you are a high risk client.
b.    These cards only have low credit lines usually up to $250. There are also additional fees, so it is important to read all the terms and conditions before signing on to lend the money. Down the road, you can ask to increase the credit, especially if you pay your bills on time. The additional fees are worth it if you are able to rebuild your credit rating.

2.    Prepaid Credit Cards
a.    These are not credit cards but are like credit cards only. They are accepted wherever credit cards are accepted. There are no finance charges and help avoid you from having debts because all the purchases are aid beforehand.
b.    You will determine your own credit line. Usually based on the money he or she has transferred to the card.
c.    The risk of running credit and debt becomes smaller and one can learn to budget.

Specialty Credit Cards:
These types of cards are for unique individuals that will cater specifically for their needs.

1.    Business Credit Cards – cards for business executives and business owners. These cards have the same features as s standard credit card with additional features like special business rewards or savings, personal and business expenses are separated, management of expense reports, higher credit limits and additional cards for employees.
2.    Student Credit Cards – because students have little or nor credit history, this kind of card is designed for students to solve that problem. This card will help build the credit history of the student.

Tags: Budget, Credit, Spending Money, Credit Cards, Credit Card Traps

Nowadays more and more people are looking for credit cards to help them procure something even though they don’t have money.  If you have a credit card or thinking about getting one, you learn to use it responsibly and discreetly. Before also applying for credit cards you should also learn the type of card that you would need. There are now different types of cards that cater to various situation of the person who needs it. Here are the following types.

1.    Standard – these are the typical credit cards that are easily available from banks and other financial institutions. These cards are unsecured. The annual percentage rates they offer vary. It could be offered or be computed.
a.    Balance Transfer – it allows consumers to transfer the balance of a purchase with a higher interest rate to a card that has a lower interest rate. It helps the user save money from the interest charges. Be sure to read thoroughly the terms and conditions for each card. Their offers vary.
b.    Low interest – the APR they initially offer will e low but will eventually change after a certain period of time. If you’re lucky you might find a low fixed interest rate. I.e., the items that you have purchased for the 1st 6 months of the introductory period will have 5% interest. Any balance or purchases made after that will have 10% interest.

2.    Reward programs – the user is given rebates, cash back rewards or other incentives for purchases made on the card. This will tempt some users to use the card more.
a.    Airline mile – this is like a frequent flyer card. Every time you use your card, you will have an additional point that will be added on your airline miles. This reward plan is very costly to the credit card company so they usually charge an annual fee. Remember to read the details of this reward program. This type of card is great for people who love to travel.
b.    Cash back – as the name implies, you are given a certain amount of cash every time you make purchases with the card. It goes like this, the more purchases you make using your card the more cash rewards you get. The rates are usually 1% of the total purchase, excluding the interest and finance charges. This type of card also has an annual fee. This type of card is suggestible for people who pay their debt on time.
c.    Reward credit cards – similar to cash back cards but just offer different rewards. Their rewards include gas rebates, entertainment rewards and store discounts for specialty store cards.

Tags: Credit, Budget, Credit Card Traps, Visa Card, American Express

When one person has a credit card it is an item which must be learned to use responsibly. To some, having a credit card is a terrifying big deal. Having one means that by using it, I will now have credit history reports. If I use it improperly my record will be stained forever. One mustn’t despair totally when having a credit card. Here are some ways that you can still get the most out of it.

Use your cards wisely:
•    The important thing to remember is that you should always pay your credit card bills on time to preserve your credit rating. Always pay at least the minimum. If you would pay the credit card debt via mail, make the payment earlier.
•    Try to pay the full balance of your debt every month if possible. If it is impossible, just pay the largest amount you can pay without hurting your budget constraints. You will save money from the interest charges if you try to do this.
•    If you really can’t afford to pay the large credit amount bills, try to slow down on using your credit card. Don’t be too aggressive using your card. Learn to budget and figure out based on your income how much you can just really afford to pay.
•    Look at your monthly statements very well because there might be some mistakes that need some corrections. The credit card company will only correct these mistakes if it is brought to their attention.
•    If you have tow or more credit cards with outstanding balances, transfer them to your credit card that has the lowest interest rate. Aside from saving money, you will also have an easier time when you receive only 1 bill monthly.
•    If you have maintained a very good credit rating history you are a valuable asset. When you have, you can be able to negotiate for lower interest rates. If they still persist in giving you higher interest rates, threaten them implying you will transfer to the competitor.

Review your credit history:
•    Review your credit card history regularly. This helps because you can review if they have any inaccuracies.
•    Check your credit rating at North America’s 3 official credit bureaus Equifax, Experian, and Trans Union. Look for their local branches on the yellow pages.

Getting the right card:
•    There are now large number of credit card companies, so there is a chance that there will be 1 company that will suit your needs.
•    Look for the annual percentage rate of credit card companies. Some credit card companies will entice you by giving lower interest rates at the start but after a few months the rates will be permanently high.
•    Look for the lowest APR.
•    Try to look for cards that do not charge any annual fees. Some companies may charge annual fees because they provide added service. It is up to you if the added service is worth the annual fees.
•    Try to look at the various options the various cards now offer. Compare each one of them.

Tags: Budget, Credit, Spending Money, Credit Card Application, Visa Card