credit cards

Getting yourself some credit cards

For some people getting one or more credit cards is a priority. This is because the credit card represents a sense of freedom, status and, of course, spending power. But as the saying goes – “with great power comes great responsibility”. Using a credit card calls for a lot of self-restraint and smart thinking. If you fail to do these things, you will soon find yourself in a whole world of financial trouble. This is something you don’t want.

There are two simple ways to stop this happening. The first and most important thing is to avoid temptation and impulse buying. Earning $15,000 a month and spending $13,000 on shopping sprees (whether you are a man or a woman) is not a good habit to have. You need to think of saving money and making your expenditures meaningful. Ideally you should use your credit card only in an emergency, like paying a hospital bill, buying a hard to find textbook online etc.

The other thing you should do is to find a good credit card. Since there are a variety of them out there, you might think “hey, I’ll just go with this one because they came to me first”. Do not take this approach with credit cards it will only get you in trouble. Go online and read up on credit card reviews. See what professional reviewers have to say about each brand of credit card. For example, chase credit cards have a very good reputation and have lots of good features that could be useful for you. By making the right choice and going with a credit card that has a good track record, you will be doing yourself a great favor.

credit cards

Bad Credit Cards and Their Usefulness

If you have poor credit history, then you have no choice but to resort to a Bad credit card. Unfortunately this is a, minefield in terms of financial safety, to get into.

Bad credit card companies are notorious for their high and quite often unfair interest rates. They have very low standards when it comes to valuing your credit rating. This makes it easy for anyone to get a credit card from them. However, when you have a need to resort to one of these companies, don’t choose one on a whim. You need to do extensive research before you take a decision.

Every credit card has its own peculiar set of rules and regulations. You need to understand everything that is stated in the terms and conditions. This is because they can offer you low interest rates and then catch you out with hidden charges and a whole load of restrictions. You also need to check on other fees like over-the-limit fee, late penalty fee, annual fee, etc. One more thing to keep in mind is that the interest rate is usually based on the Prime Rate, which can change abruptly.

But the silver lining here is that by choosing a Bad credit card company that reports to the three major credit bureaus, you have a good chance of improving your credit status. Assuming you make payment promptly, these payments will be reported to the bureaus. Thus your credit rating improves.