The importance of credit is almost unknown to many people. Credit is a useful support for different types of loans, getting a car, whole lots of items including mortgages. But many people do not have any credit card. When these people buy things it is difficult to carry that much of cash. It is also stopping them from establishing credit rating. Getting a credit card may look to be simple, but many have experienced that either banks are charging a heavy interest or many unnecessary spending get imminent. You should choose a 0% credit card, there are many companies offering this card for a year. Control your purchases with this card, some times you may be tempted to purchase even unnecessary things with the facility you have. If you think that you have made such unnecessary purchases keep your card at home before you set off. Be sure that you keep paying back your dues with punctuality within the due dates. Do not fail in your pay offs else you will be charged heavy amount as penalty, neither you indulge in creating too much credit and up with an adverse record in your credit history. The credit history is the important matter for your future eligibility to gain a real credit card. Your next option may be bank. This also not an easy go. You must have a savings bank account. In case you have a current account, in case you are paid cash in hand, you are to be too vigilant because your regular deposit must be the criteria for offering you a loan. Other option may be direct debits. You must have sufficient balance in your account that can cover up any standing order or direct debit. In case you do not have sufficient amount in your account bank will charge a fee, even the party giving you direct debit may also charge you. Next option is loans. If you maintain regular deposit in your current account you may apply for a small loan, remember it should be as small as possible. You must be regular in paying off your outstanding balance in every month. Do not invite administrative charges by paying off late. The amount will be, depending on your bank, at about $50. There is another option that is pay day loan. Many people take to this loan system and reimburse the amount in their pay day. But this is a high chargeable loan pinching you as much as 300% of interest. If you are following all the dos and don’ts you may be inching towards the right track in near future to get a real credit card.
Great tips! I agree that most credit cards owners aren't really aware of the interests they're applied or how they're really supposed to use an maintain them. What about debit cards? Or are the same as direct cards?
I only have a debit card, I havent started building credit yet and im almost 21 years old. Do you recommend I sign up and get a credit card?
Thank you for the tips! My daughter is 18 and I just realized that we have yet to get her set up with a credit card. We've been putting it off too long and I know it is an important way for her to establish credit.
I have one of those Chase InK business cards. Low APR after the 6 month no interest period. I try to pay it off after every month, as I hate paying interest. As there is no fee to use, I like the fact that I get points and can use them to even pay down my balance. No fee + points = Amazing
Watch out for those money hungry pay day advance stores! Unless it is TRULY a life threatening or emergency situation, it is better to seek out another means as you will be paying a huge interest rate.
I already have a credit card since 2005, in choosing a credit card I used to consider the bank issuer before we fill the application. Is there an branch office of the bank of credit card issuer nearby? I anticipate if someday we will need assist or complain can be served faster. Many the bank of credit card issuer that comes from abroad and has no branches in our town. The main reason to apply credit card is we can buy something in many merchants without the money.
Yes, if you know that you can control your spending, it is perhaps okay to get one credit card...and if you operate that card really well, you can sidestep many of the costs and even gain money back if you have a card that has cash back offers. It has pushed up my credit rating...and I will keep just that. But no thank you to payday loans etc....Best I earn the money rather than borrow it.
The Best post I have read about credit cards. People certainly don't get such an information about the usage of credit cards. Especially those who are just going to sign up for the credit cards should be aware of all the facts of credit cards. Good suggestions I must say. Best Wishes, CreditCardsAustralia.com.auLog In
I have a card and only use it for online purchases or to reserve something. I pay it off immediately everymonth. The trick is to remember its not your money. I see it as high priced loan. So i always evaluate carefully if I need to use it.
Thank you for posting this article, a lot of people should read it. I worked at a bank call center for credit cards for a while a few years back and just let me tell you, you would little fall over with surprise if I told you how many people call in and do not understand that you get charged interest on the money you spend.
Use a credit card ONLY for emergencies. That's the way they should be used. The moment you get into that habit of using them daily, that debt will mount and you'll be stuck.
1. Try not to let your card out of your sight. For example, when you are using the drive-through and you hand that card to to the cashier, it only takes a couple of seconds to take a picture of the front of the card and the back (if that is where the security code is). Try to always have a view of your card. If you go through the drive-through try to use cash. 2. Always, Always, Always keep the telephone number of your credit card holder near. Have it programmed in your phone and one other place that's easy to access just in case. Feel free to add one
Discipline is the key when using a credit card, and having a mature, honest view of what it really is. With the exception of emergencies, such as anatural disasters or medical related events, the card should be paid off every month. I use my Discover card for just about everything, rather than checks or a debit card, and I have that money waiting every month to pay it off. And in the end, my Discover card pays me off.
I don't use a credit card, period. I would get into way too much trouble with it, and it's just not worth it to me to have that much debt.
If you know how to use it, then you should not bother applying for it in the first place. I also know a couple of people who have credit cards and have been using it pretty well.
True, it's better to sell or pawn anything of value that you might have than to deal with those payday loan people. They draw the repayments from your bank account and you never want to give someone control of your bank account, because they can overdraw you at the worst possible time and then you'll be stuck with overdraft fees on top of everything else.
I have a credit card and I am responsible with it. I always make frequent pay,wants to my visa to ad void wing paid interest rates. I almost have a maxed out balanced origjht now soo I'm currently performing several tasks online to get on my feet gains. With my bank, I have 21 days to pay off my purchases or I get a 29% interest charge. I still need one for the kind of work I do.
