Apr 30, 2016

Posted by | Comments Off on Tips To Avoid Bad Credit With Credit Cards

Tips To Avoid Bad Credit With Credit Cards

accounting_report_credit_card

If you are planning on applying for a loan, student loan, or for a home, you will want to make sure that your credit report is absolutely as good as can be and that your debt level is manageable. The good news is, keeping your credit score high and avoiding bad credit with credit cards doesn’t have to be too difficult. You simply need to follow some rules and tips and you should be able to avoid bad credit with credit cards. In this article, we will be going over some of the top tips to avoid bad credit.

Tips To Avoid Bad Credit:

  1. Pay Your Bills.

    This is perhaps one of the most important things that you can possibly do in order to not have to deal with bad credit. You are going to need to pay your bills on time – every time. The more bills that you put off, not only are you going to accrue interest and hurt your bank account, but you are also going to significantly hurt your score as it is one of the primary factors that is looked at when determining your overall score. The best way to ensure that you pay your bills on time every single time you have a bill available is by turning on ‘auto pay’ which essentially takes the amount that is due out of your checking account for you.

  2. Don’t Hit Your Limits.

    Another thing that you will want to avoid doing is getting too close to your credit card limits. This is an important thing that you will want to take seriously because the more you spend on your card and the closer that you get to your limit, the more risk the bank is essentially going to view at providing you with credit. They are going to look and see that your spending habits are very large and this only generates more risk for them. Therefore, this can significantly reduce your score. For the best possible results, you are going to want to keep your available credit at around 70%. Meaning, do not utilize more than 30% of it. If you need to, you can simply spread around payments to different credit cards.

  3. Pay Your Bills In Their Entirety.

    Another thing that you are going to want to do is make sure that you are paying your bills in their entirety. You want to try to pay your bills in full because if you do not, you will accrue interest on them and you are going to end up losing money as a result. Minimum payments can trap you into a never ending debt cycle. Therefore, track your spending and do not purchase anything that you are not going to be able to pay off in full at the end of the billing cycle.

  4. Spread Your Applications Out.

    Another thing that you are going to want to do in order to keep your credit score as high as possible is to make sure that you are not applying for too much credit in too little time. If you are planning on applying for credit cards or some kind of loan, you will want to make sure to do them at the same time or completely spread out. Otherwise, lenders will wonder whether or not you are digging yourself too far into debt that you have to keep applying for more credit. They will ultimately view you as being riskier than they would like and it can impact your credit score as a whole.

As you can see, there are many different things that you are going to want to do when it comes to trying to avoid bad credit. By implementing the tips above, you should be able to position yourself to achieve a good overall credit score. Be sure that you are not utilizing too much of your available credit on any particular card. Make sure that you are not applying for cards or loans too quickly. And make sure that you are paying off each and every one of your bills in their entirety every single time. You do not want to miss payments or else you will need to pay off late payments and you are going to have to deal with interest as well.

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Apr 16, 2016

Posted by | Comments Off on Is Having Credit Cards Good Or Bad For Most People?

Is Having Credit Cards Good Or Bad For Most People?

credit card in the wallet

It is always a good idea to have a credit card that you can use from time to time in order to have a backup in case you are the one money. It is also a great way to build your credit, and also earn points on different things that you would like to purchase such as airline tickets or hotel rooms. However, there is also the ongoing debate as to how many credit cards are enough, or if having credit cards at all is actually a good idea. Here are the pros and cons associated with deciding whether or not having credit cards is good or bad for most people.

Positive Reasons To Having A Credit Card

There are several positive reasons why a person should have a credit card. First and foremost, it is the best way that you can build credit when you are younger. Also, everyone can apply for and receive a small credit card, usually giving them a few hundred dollars in credit, which they can use to begin to build their credit rating. By charging a small amount and paying it off every month, you can develop your credit rating very quickly. From there, you will be able to qualify for a mortgage for a home if you want to buy one, and you could also get lines of credit for a business that you want to start. Unfortunately, this can also go the other direction. Sometimes people will spend all of their available credit and forget to pay their minimum payment on their credit card. This can be to some of the negative reasons for having a credit card, usually the result of making poor choices.

Negative Reasons To Having A Credit Card

The main reason that having a credit card is bad is that it can become a form of temptation in terms of spending beyond your means. Many people that start with a small amount of credit are often given the opportunity to get additional credit cards, and this can cause a significant problem. They will charge all of their credit cards up as high as they can go, and then they are forced to make monthly minimum payments. If that is all they do, they will never pay off the total amount, creating a negative balance with their paycheck every single month. Instead, when you are offered credit cards, you should rotate your use of them. You might want to keep a small balance on one to build credit in that manner, whereas the others you will simply pay off at the end of the month, both strategies helping you to build your credit rating.

Anyone that has a credit card can make a choice. The choice that they make is going to either make owning a credit card a good or bad decision. Credit cards are similar to owning a weapon. It can be used as a line of defense, or it can be used in an inappropriate way. In conclusion, it is definitely better to have a credit card than not to have one, especially if you ever want to build up your credit rating so that you can become a functioning member of society with a mortgage, or the ability to get a car or boat loan. It is a great way to establish yourself as a person that is trustworthy enough for lenders to provide you with these loans.

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Apr 2, 2016

Posted by | Comments Off on Credit Card Companies Make Money By Charging All Kinds Of Fees & Interest

Credit Card Companies Make Money By Charging All Kinds Of Fees & Interest

Different kinds of Credit Cards

Credit card companies have no problem making money, do they? People need credit, and they have the money to provide as long as it’s paid back with interest. People think they are getting a sweet deal with a 0 percent introductory APR until all the sudden they have a considerable balance still due on the card and the interest rate moves to 10, 20 and even 30 percent. Not to mention, if you ever miss a payment or go over your credit limit, you’re going to get charged a fee.

There are all kinds of fees associated with credit cards. I’m not saying they don’t come in handy. I have four of them. You’re technically only supposed to have two, but I have extras because I was building my credit and was offered better cards along the way. I will get rid of one or two of them as I go along or just keep them paid down and open.

Have you ever been charged a late fee on your credit card? Many credit card companies are good about refunding late fees and over the credit limit fees these days, but you really do have to watch because they can actually make those fees stand. Now, that’s not all that credit card companies have up their sleeves. Think about what else you’ve run into, especially if you have had bad credit.

There are credit cards that come with an annual fee, and there are also monthly participation fees for some of the cards out there. As a matter of fact, one of the credit cards I have that was for people with bad credit just told me that my annual fee was coming up and that my monthly participation fee would now be due. You don’t want to mess with those types of cards unless you have to do so.

They will charge you extra money, and some people realize that they just can’t swing the payments and end up in a cycle of bad credit. I’m doing just fine, but those credit card companies are still making money off of me. They don’t just make money off of people in general, they get filthy rich. The credit industry just keeps growing and growing, and it would probably make you sick if you look at how much you’ve paid on a credit card vs how much you’ve spent.

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Mar 16, 2016

Posted by | Comments Off on Prepaid Credit Cards Could Be Your Big Ticket

Prepaid Credit Cards Could Be Your Big Ticket

Credit card and Cash

You’re sitting there with a ‘not so good’ credit score, and you’re wondering how to improve your credit. It’s not like you haven’t heard of prepaid credit cards, but maybe you’re just not sure if they would be worth the effort. Let me tell you what’s going to happen if you sign up for a prepaid or secured credit card.

The first thing I want to mention is after a few months of handling a secured credit card properly, you’re going to get an offer from someone for an unsecured credit card. It might not even take that long, and you might get more than one. Of course, you have to treat that secured credit card the right way.

Even if you can get approved for an unsecured credit card with bad credit, there are going to be high fees attached to them that lower your available credit right away. There are secured credit cards that won’t do that to you. Why not get a secured credit card with a top-notch company and aim for getting approved for an unsecured credit card with them.

Now, what else can you expect when you sign up for a prepaid or secured credit card? If you keep your balance low and make your payments on time, you’re going to significantly improve your credit. There are going to be three, yes three, factors that help to work in your favor. First, you will have established new credit and now have a credit card account on your credit report. Second, you’re going to be making your payments on time. Third, you’re going to be keeping your balance under 30 percent of your credit limit.

Do you see how much these secured credit cards can work in your favor? It’s suggested to have two major credit card accounts open, but in this case, you’re only going to open one. You’re just going to get your foot in the door, and as you manage your secured account wisely, you can be picky about the offers that start coming to you.

You might not want to go for the first offer that comes your way. It might be from a credit card company that is going to offer you a subprime rate, and you’re not desperate, right? You will have made the right choice to take a secured card and wait for a good credit card company to court you.

Of course, you’re going to have to pony up that deposit. Most of the secured credit cards will open up an account for you with 200 or 300 dollars as a deposit. Remember, that will be your credit limit. If you’re able, it might be better for you to start off with at least 500 dollars.

If you need some time to get that deposit together, you can send payments in increments for certain credit card offers until you have the deposit paid in full. Check to see what’s out there and get that prepaid credit card working for you.

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Feb 25, 2016

Posted by | Comments Off on Credit Card Tips For People Trying To Build Their Credit

Credit Card Tips For People Trying To Build Their Credit

Different kinds of Credit Cards

The absolute best piece of advice I want to give you first when it comes to having a credit card is to keep a low balance. I’m not going to tell you to pay the balance off each month because that is hard to manage anyway, as it has everything to do with timing, form of payment and really staying on top of your game financially. However, you really need to keep yourself from getting anywhere close to maxing out your credit card.

If you keep your balance at about 30 percent of your credit limit, you’re going to make the credit card company happy, and you’re going to improve your credit score. When it comes time to get a credit line increase, you’re going to have a much better chance of getting the best increase. Of course, the credit line increase is also going to be dependent upon other factors.

If you fail to make a payment on time, even one, it’s going to look really bad. You want to be sure that every payment is made before the due date. Additionally, pay more than just what is required. It is tempting to make the minimum payment, but remember you want to keep the balance at 30 percent of the credit limit anyway. Anything you can pay over the minimum payment is only going to help you in multiple ways.

When that credit limit increase does arrive, and it can be quite soon, it’s going to help you keep your balance at 30 percent of your credit limit. Say your limit is 300 dollars to start with, and you get an increase to 1,000 dollars for your credit limit. Let’s say your balance on the card is 150 dollars. Before, your balance was at 50 percent of the credit limit, but with the increase, you’re all the sudden only at 15 percent of your credit limit.

You’re certainly aware that there are rewards cards out there. Find a good cashback rewards card that you can count on for extra perks. How you use that cash back is up to you of course, but I can tell you what I do with mine. I save it up, and then I apply it to my bill. It keeps my balances lower, and it is of course free money. According to these guidelines, are you handling your credit card correctly?

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Oct 26, 2015

Posted by | Comments Off on How to Make the Most of Your Commonwealth Credit Card

How to Make the Most of Your Commonwealth Credit Card

Low key macro shot with old credit card

Having a credit card can make your life easier in many ways. You have a way to pay for things in case of an emergency, and you can finance large purchases and pay for them in smaller monthly payments. Credit cards can also be a trap if you don’t use them correctly. They can catch you up into a never-ending cycle of debt that can damage your financial future.

Read on to learn how to use your Commonwealth credit card responsibly.

The Benefits of Having a Credit Card

Credit cards can be an essential part of your financial portfolio. They help give you peace of mind because you know you have a money source if you ever need it. They also allow you to pay for things in instalment basis.

Credit cards also allow you to increase your credit score. A high credit score can help you qualify for the lowest interest rates on home loans, get you lower rates on your insurance and ensure that you don’t have to pay deposits for your utilities and cable TV.

How to Use it Responsibly

To use a credit card responsibly, you sure want to keep your balances fairly low. Don’t run up your card past 30 percent. When you utilise over 30 percent of your available credit, your credit score will go down and your lender may even reduce your credit line causing your score to drop even more.

Aim to use only about $300 of each $1000 of credit if you want to keep your utilisation low. A low utilisation will probably net in regular credit line increases. Another very important thing is to always pay more than the minimum payment. If you are financing a large item, you can’t pay off the whole balance of course, but try to pay at least double the minimum payment. This will look good to the lender and help you avoid paying too much money in finance charges.

The key is to keep your balance as low as you can and pay off as much as you can. Credit is a tool and you have to know how to use that tool properly. Credit can be a huge gift or it can turn your life into a disaster. Your Commonwealth credit card can help you get the things that you need, but you have to make sure that you don’t become a slave to your card.

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Oct 11, 2015

Posted by | Comments Off on Finding the Best Credit Card Deals

Finding the Best Credit Card Deals

hands shopping/paying online using laptop and credit card

Credit cards tend to earn themselves a bad reputation, but mostly because of the temptation that accompanies them. The most important thing that you can do when using a credit card is to use it responsibly, but before that, you need to make sure that you choose the right card for your needs.

A credit card is more than just a gateway for purchasing the items you need, there are also many side benefits that you might consider with certain companies, which include:

  • Purchase Rewards
  • Cash Back
  • Travel Insurance
  • Identity Theft Protection
  • Airline Miles

These, of course, are just the minor advantages, and you will find that many companies offer considerably more or less depending upon their policies. So how do you choose a credit card?

Take a Look at Yourself

First of all, you need to take a look at yourself. Your own situation can help you to determine just what it is you are looking for in credit card deals. For example, are you having difficulty paying your bills on time? If so, then you will certainly want to find a credit card with a lower interest rate. Remember, the interest rate is literally the amount of money you will pay for the privilege of being able to borrow money from the credit card company. This will be applied to your purchases, and in layman’s terms, you will pay a bit more for each purchase than you would have if you pay in cash. There are times when it is hard for you to come up with the money needed and  there are some purchases that you need to make immediately.

It is true that your choices are a bit limited if you are simply looking for a low interest rate, but there are many other choices you might consider as well. Before you begin, take a look at your credit report. This report can be requested for free once every year, and it will give you a good idea of how eligible you are for terms with a lower interest rate. Your credit report will literally show you just how lenders are going to see you, and you can go from there.

In addition to finding your credit score, you should look for any special deals that might save you money on the initial acquisition of your credit card. Those that have zero percent introductory rates are always great, but you should investigate the future fees. For example, how much will the rate increase later on, and what are the balance transfer fees? Saving yourself money up front is not going to help you if you have to pay more in the future.

Rate of Use

How often do you plan to use your credit card? If you are a heavy user, then it might pay off considerably in the long run to choose a card that charges annual fee instead of monthly fees. In addition to that, you might want to find one that offers better rewards such as the ones we listed earlier in this article. Each company will have its own reward system, so make sure you review this before you make a decision.

Getting a credit card is easy, but getting the right credit card to meet your personal needs? Now that’s a bit of a trick. Do the research and ask the right questions; your patience will certainly pay off.

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