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Building Your Credit History
Today, credit is an indispensable part of our lives. In order to get the things you need, such as a home or a car, you have to apply for a credit. But you cannot get a credit without having a credit history, and you cannot get a good quality credit...
Credit Repair, How To
Credit Repair, How To ...
Free Credit Reports For You
American consumers are now entitled to receive one free copy of their credit report per year from each of the three major credit reporting agencies. Equifax, Experian, and Trans Union are now all required by law to furnish to you a copy of your...
Perks of Citibank Credit Card
Citibank credit cards offer a wide range of benefits. Basically,
all of it features offer clients with security during
emergencies, the advantage of not bringing cash and checks, and
improving independence and responsibility in...
Which Credit Card?
Bewildered by the sheer variety of debit cards and credit cards? Here is a breakdown of some of the main types of debit and credit cards available: Debit card You can use a debit card to buy goods and services. A debit card is very much like a...
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Choosing and Using a Credit Card Wisely
Credit drives our economy. Sure, there are still some cash-and-carry guys around, but most of us rely on credit and particularly credit cards. Shopping around for a credit card can save you money on interest and fees. You will want to find one with the features that match your particular needs, since not every one has the same financial situation.
The first step in choosing a credit card is determining how you will use it. If you expect to always pay your monthly bill in full--and other features such as frequent flyer miles don't interest you--your best choice may be a card that has no annual fee and offers a longer grace period.
ID you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).
If you plan to frequently use your card to get cash advances (from the bank or an ATM), you'll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards actually charge a higher APR for cash advances than for purchases.
Another major consideration in choosing a credit card is the APR--annual percentage rate--the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest as a yearly rate. A single credit card may have many APRs. For example, your card may have one APR for purchases, another for cash advances, and yet another for balance transfers.
There are also tiered APRs where different rates are applied to different levels of the outstanding balance. For example,, 16% on balances of $1-$500, and 17% on balances over $500.
A penalty APR is another possibility. The APR may increase if you are late in making payments. Your card agreement may say, "If your payment arrives more than ten days late two times within a six month period, the penalty rate will apply."
Then there is the infamous "introductory" APR. A different, and most certainly higher rate will apply after the introductory rate expires. Always find out how much the new rate will be before signing any agreement.
Finally there is the delayed APR. A different rate will apply in the future. For example, a card may advertise that there is "no interest until next July." Be sure to find out what the APR will be after July.
Still another consideration is the grace period--the number of days you have to pay your bill in full without triggering a finance charge. For example, the credit card company may say that you have "25 days from the statement date, provided you paid your previous balance in full by the due date." The statement date is written on the bill. The grace period usually applies only to new purchases. Most credit cards do not offer a grace period for cash advances or
balance transfers.
Determine how the finance charge is actually calculated. The finance charge is the dollar amount you pay to use credit. And that amount depends on your outstanding balance and the APR. Credit card companies used several methods to calculate your outstanding balance, and the method can make a BIG difference in the finance charge you'll pay.
Your outstanding balance may be calculated over one billing cycle or two; using the adjusted balance, the average daily balance, or the previous balance; and it may include or exclude new purchases in the balance. Depending of the balance you carry and the timing of your purchases and payments, you will usually have a lower finance charge with one-cycle billing and the average daily balance method excluding new purchases.
Other concerns to take into account include the possibility of a minimum finance charge and additional fees which may be tacked on to your credit card. Fees such as annual fee, cash advance fees, late-payment fees, over-the-credit-limit fees, credit-limit-increase fees and set-up fees (charged when a new account is opened) are some examples of additional credit card charges. Read the information in your credit card agreement to see if there are other fees or charges.
You should also known your credit limit up front so you do not end up paying "over-the-credit-limit fees" and penalties. In addition you should know whether your card is a secured card (usually requiring a security deposit), a regular card which have few extra features and lower credit limits, or a premium card (gold, platinum, titanium) which offers higher limits and extra features like travel insurance or emergency services.
If your credit card is ever lost or stolen--and then used by someone without your permission--you are NOT responsible to pay more than $50 of those charges. This protection is provided by the federal Truth in Lending Act and you do not need to buy "credit card insurance" to cover amounts over $50.
Make a list of your account numbers and the companies' phone numbers. Keep the list in a safe place--not your wallet or purse. If you discover your card is lost or stolen, report it immediately to the credit card company by calling the toll-free number listed on your monthly statements.
FOne final tip--take the list of phone numbers (not the account numbers) with you when you travel, just in case a card is lost or stolen.
About the Author
Larry Denton is a retired history teacher having taught 33 years at Hobson High in Hobson, Montana. He is currently V.P. of Elfin Enterprises, Inc., an Internet business providing valuable information on a variety of timely topics. For a bank vault full of advice, resources and suggestions about credit cards, visit http://www.CreditCardHere.com
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| Credit Reports - Credit Cards - Car Loans - Home Loans - Credit.com |
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| Equifax Personal Solutions: Credit Reports, Credit Scores ... |
| National consumer credit reporting company that offers credit reports, FICO(R) credit scores and identity theft protection products to consumers and small ... |
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| The FTC's web site on Credit |
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| www.ftc.gov |
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| Federal Trade Commission - Consumer Credit Center |
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| AnnualCreditReport |
| Site set up by the big three credit reporting agencies in the United States, to furnish free annual credit reports, as required by federal law. |
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| Springboard - Non-Profit Consumer Credit Management |
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| Experian: Free Credit Report and Credit Score, Credit Check ... |
| Credit referencing and consumer targeting for the USA and other countries. |
| www.experian.com |
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| National Credit Union Administration - Home Page |
| An independent federal agency that supervises and insures 7152 federal credit unions and insures 4240 state-chartered credit unions. |
| www.ncua.gov |
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| Credit - Wikipedia, the free encyclopedia |
| Debits and Credits, a type of bookkeeping entry; Credit (creative arts), acknowledging the ideas or ... Retrieved from "http://en.wikipedia.org/wiki/Credit" ... |
| en.wikipedia.org |
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| Credit (finance) - Wikipedia, the free encyclopedia |
| Any movement of financial capital is normally quite dependent on credit, ... Sometimes if a person has financial instability or difficulty, credit is not ... |
| en.wikipedia.org |
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| The National Foundation for Credit Counseling |
| DebtAdvice.org is a service provided by the Members of the National Foundation for Credit Counseling (NFCC), most of them known as Consumer Credit ... |
| www.nfcc.org |
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| FreeCreditReport.com | Free Credit Report and Credit Score Online ... |
| FreeCreditReport.com: Free credit reports and credit scores from Experian. Get your free credit report and credit score now. It's free, fast, and easy! |
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| Ford Credit - Auto financing for Ford, Lincoln and Mercury cars ... |
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| The Credit Card Prank |
| In my lifetime, I have made nearly 15000 credit card transactions. ... Credit card signatures are a useless mechanism designed to make you feel safe, ... |
| www.zug.com |
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| Credit magazine, corporate bonds, derivatives, structured credit ... |
| Credit magazine provides information on the international credit markets for credit investors, issuers and market professionals. |
| www.creditmag.com |
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| CUNA: The Credit Union National Association |
| News and resource directory about credit unions. |
| www.cuna.org |
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| Credit/Debt Management - Tools and Advice for Managing Credit and Debt |
| Drowning in debt? Trying to improve your credit score? This is the place for you. Get real world information and tips, as well as the legal low down, ... |
| credit.about.com |
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