Always Pay in Full
May 31, 2008
Always Pay in Full!
That was what my mom always tell me about credit cards. Credit Cards are only beneficial if you pay them in full and just take advantage of their rewards points.
We (My husband and I) recently got a credit card. I didn’t want to at first but I made him promise to always pay in full so I agreed. But there came a time when a friend of my hubby needed money badly so he came to us suggesting a cash advance from our credit card. My husband couldn’t say no to him (don’t worry I tortured him already for saying yes haha!) Anyway, the bill came, the “friend” hasn’t paid yet and we didn’t have enough money so we had no choice but to only pay what we can. Next month our bill was so high that we couldn’t pay in full again (friend hasn’t paid yet). So this about 3 months ago and til now we couldn’t pay in full and our financial charges are really high (sorry for not quoting real figures).
So here’s my tip for those thinking of getting credit cards:
Pay in Full always or don’t get one at all
Creditors Are Evil
May 30, 2008
Check this out… I’m not a bad citizen. I pay what I need to. I do my best with stuff. But, we also all know that the economy is going straight into a hole. So, sometimes, when you get charged 25% interest it’s hard to pay the card.
Do you know, that credit companies are now calling me at my home office? That’s right… I’m expecting calls from students, and the phone starts ringing at 7:00 in the morning… and won’t stop until 10:00 at night. So, because of my aggravation, I wanted you all to know how illegal this is and to let you know that there are restrictions on credit card companies harassing you. Basically, there things is to set you on a psychological imbalance so that you pay them your life savings. However, they actually don’t have that right. If you are dealing with credit companies…here’s their restrictions.
1. They can’t call you during office hours.
2. They can’t call your office. AT ALL.
3. They can’t call anyone else in your home, such as family or relatives.
4. They can’t call you before the hours of 8 AM or after the hours of 10 PM.
5. You don’t have to promise them anything if they do call, meaning a ‘payment plan’ or even a debt settlement.
That’s right. It’s basically a harassment line. And, if they call you, you have every right to sick ‘em. And, I would do it on all levels. The only way that creditors are going to stop trying to run over everyone’s lives and keep them in a point of submission is if everyone starts learning the rules and doesn’t get trapped by their corporate decision to leave all of the poor people in turmoil and strife.
In the years ahead, this is definitely one of the areas that U.S. citizens are going to have to start to battle… if the credit card companies don’t completely fall on their own from the harassment, you can expect some rebellion will start… or at least I suggest it does.
Few terms about credit card…
May 29, 2008
If you are thinking to apply for credit cards, you should know few terms. These are a credit score, credit limit, interest rate and finance charge.
Your credit score is important in getting credit card. Your credit score decides that which of card type you will get. It is figured out by your credit history and the amount of your credit.
Credit limit is the amount of credit. You will be paying extra fees if you spend out of your credit limit.
Interest rate is the rate at which finance charges will be calculated. Those who have sound credit history are given lower interest rates.
Finance charge is the amount of interest incurred on the amount.
Compare conditions of various credit cards and choose credit card which is suitable to you. Follow the rules. Never spend beyond credit limit. It will gradually assist you in keeping good credit history.
Types of credit cards
May 29, 2008
There are two types of credit card. Those are secured and unsecured credit card. Both have different requirements. In secured credit card, you have to deposit an amount into an account. It requires security for approval. Security or collateral can be in form of a car, stock, insurance policies or anything which has financial or monetary value. However, banks give priority for a cash deposit. Internet is the fastest way to get secured credit card. But be careful about online ads. Do your research properly.
Unsecured credit card is for people with bad credit or no credit. You need not to provide a security deposit to get it. Actually, it aids you to improve your bad credit history. Unsecured credit cards are the most common and widely advertised form of credit account. If your manage correctly, then unsecured credit cards will give you more power to purchase. But careless use will trap you in enormous credit card debt.
Consider credit card debt while spending
May 28, 2008
At this moment, getting credit card is not difficult. Many finance companies are available to give you credit card. Here, getting card is not important than credit card debt. Firstly, consider credit card debt while spending money. May be you cannot stop yourself from using credit card. It is also true about paying credit card debt. Most credit card users are suffering from huge credit card debt. Because they use it for all purposes without considering about coming consequences. If you don’t pay spent amounts on a due date, then you should be ready to pay it with high interest.
If your credit card debt is increasing, then you should stop using it instantly. Don’t use more than one credit cards. Having more credit cards can’t stop you from using credit card, though you are under enormous debt of one card. Free yourself from credit card debt as early as possible. There are a few methods available of fixing credit card debt. Debt consolidation, a mortgage, a home equity loan, etc.
American Distress
May 24, 2008
I know that most of you are familiar with American Express and have seen the advertising, offers and slogans behind it. However, I tell you, this is one credit card that you want to avoid.
So, here’s how American Express (what I call American Distress works). If you buy something at the beginning of the month, you have to pay it by the end of the month, no matter what the balance is. For those that have a higher income and just need to wait until the pay check, or just want to get “a little extra something” this may seem good.
What happens if you don’t ‘pay in full’ by the end of the month is the interest rate sky rockets. Yep. Something you won’t be able to pay back.
Here’s the thing about the American Express, from what I’m finding. It was really made for corporations, businesses and those who don’t want to spend money unless it is at one time of the month. By doing this, they are able to build up their credit and always have extra income flow coming in. For the average American; however, it’s something I wouldn’t recommend. Unless you are rich or have a ton of money that allows you to completely pay at the end of the month, this is one credit card that won’t help your credit rating.
So, if you are considering to go the American way, with the land of the free, American Express may be for you. However, my suggestion would be to look at the history of how this credit company works and exactly what is behind their system. You may be surprised to find that it is not necessarily something that is built for the common good.
Balances to high….
May 15, 2008
So there is a solution to paying all the high interest rates. Well that is all granted you have not exhausted all you limits. Applying for a new card with a much lower interest rate is a good thing…if you can get accepted. Unfortunately if your credit cards are all near the limit basically no one is going to give you a new card even if its to transfer a balance. I recently learned of this first hand. And why do you suppose all these people are willing to give you credit and then suddenly increase your interest when you have never been late on a payment and currently have several accounts with them Makes no sense to me. Seems as if they would want to try and keep their paying customers happy; especially the ones who have had no late payments, no over the limit fees and have been steady customers for several years. I am not sure that there is any credit card company that does not eventually raise the interest rate. A lot of them also pull fast ones like “oh your such a good customer we are going to increase your limit”. Yes they do increase the limit and as soon as you take advantage of it they also raise your interest rate which always raises the payment. My advice if at all possible when you receive those notices that your rate is increasing call and ask why, then simply tell them if not left the way it is you are taking your business elsewhere a lot of the time they change their tune. Some are not that cooperative though. When this is the case balance transfer as many times as necessary ; yes you may only get that low interest rate for a year; however you can make the same payment and the balance will decrease faster on a low rate card. Sometimes you can even get zero percent for twelve months so everything goes to the principal.
To much to handle……
May 10, 2008
Credit cards are great as long as you are aware that the more you have the more you spend. Personally I have been in debt over my head and managed to escape it with some rather unsatisfying decisions that could not be avoided. The plastic is fun while it lasts but eventually you find yourself in need of help. I am famous for robbing peter to pay paul. Recently my families finances went to pot. We have established a new goal. If you can pay out six hundred dollars a month in credit card debt then you should of been able to buy the stuff (with cash) that you put on the dang card, right? This is right but thinking to yourself you’ll just keep your cash and put it on a card is the worst decision I have ever made. I just loved all these companies giving me credit cards, I could buy whatever I wanted, right? Well sure until the card is maxed out and you are still paying a monthly bill on stuff that is over 2 years old. Now any extra money you have goes to the credit card bill and not towards anything new you want because your card is maxed out and your money has to pay the bill on that. UGH!!!! As the PROUD owner of ten different credit cards, not to count the personal loans taken to try and pay them off only to run them up again, take it from me if you cannot pay for it with cash don’t buy it. Save then buy. Plastic is not perfect!
Online Credit Card Apps Give Instant Feedback
May 8, 2008
One of the biggest advantages of online credit card apps is that they give instant feedback. After you fill out the online credit card apps, you can find out almost instantly if you were approved or not. This is a good way to get a credit card in a hurry. Some places will process your online credit card apps through several companies to increase your chances of securing a credit card if you have poor credit.
Make certain that you fill out everything honestly and to the best of your ability when you are using online credit card apps. This will ensure that you don’t have problems later down the road.
Check that the online credit card apps site is a secure site. You don’t want to send your information that you use for the online credit card apps on server that isn’t encrypted.
Balance Transfers Can Save Debt
May 8, 2008
Sometimes it is best to get balance transfers. This will enable you to pay less interest and in the long run save a great deal of money. Balance transfers are there to help you avoid over-drafting. Let’s face it. When you accidentally over-draft, you can end up with a ton of fees. This is certainly not any good. Use your balance transfers wisely and to your advantage. You can save in the long run and keep yourself from getting into further debt.
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