Seven Myths Concerning Credit Card Usage!

It has been my privilege to work with hundreds of people over the many years I have been involved in the real estate and mortgage business. My experience and expertise have helped them buy their dream home when they thought their circumstances would prevent it. It has been a joy to help so many.
Through these many experiences, it has come to my attention that many people have little knowledge about their credit and how to use it in a way that benefits them. I don’t see this as being their fault. On the contrary, I find it the failed responsibility of the credit industry that makes it so easily available as being the primary culprit.
I have identified what I feel to be the seven most common misunderstandings regarding credit card usage and how it REALLY affects the consumer.
Myth #1 – I pay cash for everything, so I should be able to borrow money since I don’t have any credit cards.
I can’t tell you the number of mortgage borrowers that have come to me who were shocked beyond belief that they couldn’t get a mortgage since they didn’t have any debt. It’s an ironic fact that the lack of credit history actually makes borrowing money quite difficult, not impossible, but difficult.
Since credit scores are generated from the use of credit, it’s not necessarily a good thing to have no credit history if you want to buy a home. In fact, it’s nearly mandatory to get some credit experience.
Now, there are ways to build a credit history in order to buy a home. I have done this very thing using insurance payments, utility bills and cancelled rent checks. I present these to the mortgage underwriter for consideration as an credit history.
There are a few drawbacks using this method. You generally can’t get the lowest rates and you typically need a larger down payment. If you use some of the creative financing strategies I have developed over the years, this can also be addressed, but it requires more work.
If you are someone who is planning on buying or building a home in the next 12-24 months, now is a good time to build a credit history. In fact, many lenders will want to see the accounts, meaning you will need a history about this long.
It’s quite easy to build a credit record. One method I have recommended is to start a savings account at your local bank. Once the balance gets to be a few hundred dollars, ask them to give you a loan for that amount using your savings as collateral.
Make regular payments on the account using the money you borrowed for a few months, then pay it off (one thing that greatly impacts credit scores is a paid in full loan).
Then, do it again.
It’s also possible to obtain credit cards in this manner. Banks will issue you a credit card using your savings as collateral. By using your card in a responsible manner over 12 months, you will quickly gain the experience mortgage companies are looking for.
I often advise my clients to use the card to pay for groceries, then pay the bill using the check you would have written the grocery store. IMPORTANT: If you aren’t a person of discipline, DON’T USE THIS APPROACH!!
Even though it’s possible to get a mortgage without a credit history, it’s much easier to do so with one.
Myth #2 I must have good credit since I keep getting credit card offers in the mail.  If I had a nickel for every time I had a client tell me this one, I could retire. This is perhaps one of the most damaging misunderstandings I come across. Let me state one thing, right here and now, that should be understood by every consumer in America.
Think about it. How much money does the credit card company make on the user that pays their balance off each month to   ZERO!!
However, if they can get someone to max out their credit cards, they make a fortune in interest when the borrower is stuck making the minimum payment every month. Even low rate credit cards can provide the credit card company with obscene returns on their money.
Let me make this clear, you get credit card offers in the mail for one reason:
Let me share a story with you. There was a time in my life when things weren’t going so well financially. My wife had gone through several years of serious health issues that drained us dry of all our resources.
We were often very late on making payments on our accounts. Some of them were even closed out by the lender. On top of that, we had thousands of dollars in medical collections and a home we had purchased was foreclosed on.
Things were bleak!!
Yet, during this time, we continued to receive credit card offers in the mail.
Was this because of our GREAT CREDIT?   Of course it wasn’t. It had to do with the fact that the credit card company saw someone who struggled in the past to make their payments; they knew that if they could get me signed up, the odds were in their favor that I would always carry a balance on the card, thus making them a ton of money.
So, there you have it! Getting credit card offers in the mail have little to do with your great credit and have everything to do with the credit card company wanting you to borrow more than you can pay back.
Myth #3 My credit must be good because my credit card company keeps increasing my credit limit.
This practice by credit card companies is based on a similar philosophy as Myth #2. In other words, the credit card company wants to get you to the point that you borrow more than you can pay back in one month.
Most of the time, the offer to increase your credit limit comes from having a history of paying on time for a few months and carrying a small or no balance.
Again, you have to think about the rational behind the credit card companies. They don’t want to have a bunch of users who can pay the balance in full each month. They don’t make any money that way. Instead, they want to get their customers to the point where they borrow more than they can pay back in a month.
If you doubt the logic of my argument, try this sometime.
After carrying a balance on your card for a period of time, call the credit card company and ask for a limit increase. Chances are, if you have been near your maximum limit, they will decline you. They will do this even if you have never been late with a payment. The reason they will say no is you have already demonstrated that you are the type of borrower who will make them money. There’s no need for them to take the additional risk of increasing your limit when they already know you can’t pay what you owe.
Myth #4 I will be ok with my debt ratios when I apply for a mortgage because I pay my balances in full each month.
This problem with credit cards is a mixed blessing. It is a great practice to pay your balance in full each month. It’s a practice I highly recommend to my mortgage clients. Basically, if you are paying your balance in full each month, you aren’t borrowing more than you are making. Many small businesses operate in this fashion to help with cash flow.
However, you should know that reports to credit bureaus run 30-45 days behind what’s really going on with your accounts on the day you apply for a mortgage. In fact, when a mortgage broker runs your credit report, chances are you will see a balance on each of the credit cards you are paying in full each month.
When a mortgage broker calculates your debt-to-income ratios (this is the amount of money you pay to creditors vs. the amount of money you make) he will be required to use the information on the credit report.
Hopefully, this is a small number, but it can be something that affects how much home you want to buy.
If you want to have those accounts not count against your debt-to-income ratios, you need to have a zero balance carried on those accounts for about 60 days prior to having your credit report run by a mortgage broker.
Since this is probably not too practical for most people, you just need to know that your report will probably show a balance, even if you pay it in full each month and the mortgage broker will have to count it when calculating debt ratios.
Myth #5 When I get a new credit card offer with an introductory interest rate of ZERO percent, I transfer the balances from my other cards to save money and improve my credit.
This practice by consumers who take advantage of those credit card offers we discussed earlier in this report don’t realize how this affects their credit scores when they get ready to apply for a mortgage.
While it may be true that this will save you some money (which only happens if you apply the combined payment amounts on the new card that you were paying the other cards separately). Otherwise, you may be confusing improved cash flow with saving money.
The part of this philosophy that is incorrect is that it will improve your credit. Nothing could be further from the truth. When you accept the credit card offer, you are authorizing the credit card company to do a verification of your credit. They already have some credit information on you, but now they need to check it again to make sure there haven’t been any changes.
This activity alone will reduce your credit scores due to an inquiry being done. Let me explain. When a credit report is run on you, the credit bureau assumes it means you are shopping for credit. This is seen negatively by the scoring system that is used to create your mortgage credit score (also known as a FICO score).
When you have multiple inquiries, which is what happens with these offers, it drops your score by 3-5 points per inquiry. If you are someone who uses these credit card offers on a regular basis, the impact can be dramatic.
In addition, chances are you have used most of the credit limit being offered to you by the new credit card company. This also affects your scores in a negative fashion.
Another scoring criterion is how much of your available credit is in use when the report is requested. In other words, if you have a $5000 limit on your new card and you transferred $4500 from other credit cards; you are close to maximum on your available credit. This will drop your score because the bureau sees this as someone who uses too much credit.
So, you may have improved your score by paying off a loan balance from your previous credit cards, but you lose the benefit because you are close to being maxed-out on your new card.
Besides the negative impact to your credit scores, borrowers who tend to use this practice are only delaying the inevitable, postponing the payoff of these debts until the next offer comes in the mail, and carrying it for years and years.
Let me repeat something I mentioned earlier. The only reason these offers are made available by credit card companies is that they know there is a high probability you will use the new card to pay off other cards.
Because you become the type of credit card borrower they want (i.e. someone who will carry a balance). Statistically, they know you are likely to keep some or all of the credit cards you pay off and use them again. Once you do, you are likely to be a card user who can’t pay your balances in full each month.
Do you know what that was? It was the sound the credit card company made when they sent you that ZERO interest offer.
Myth #6 I may have a lot of credit card debt, but I’ve never been late on a payment, so my credit should be great!!
It is a common misconception that making your credit card payments on time every month will ALWAYS improve your credit rating. This is only partially true.
The person who pays there balance in full every month will benefit from this approach, but the credit card user who is close to being maxed-out will not only fail to see improvement, they will likely see a lower score.
As I mentioned earlier, some of the credit grading criteria are: available credit used and available credit unused. If you are a credit card user who has used most of your available credit, and you are making only minimum monthly payments, you will have a severely negative result with your credit score.
The main reason this is the case is the minimum monthly payment goes mostly to interest on the credit card debt. So, while you get points for making your payments on time, you lose those points because your balances don’t change much as a result of staying near your maximum credit limit.
I once had a mortgage applicant who had nearly $50,000 in credit card debt. There were several reasons for this that I won’t discuss here. She made her payments on time every month, but because her debt was close to the amount she had available on those cards (about $55,000), her credit score was very low.
She had never been late on any of her accounts, but her score was lower than the borrower I worked with who had two late payments in the past 12 months.
It’s because the scoring system used by the credit bureaus see her as someone who not only has too much credit available, but also too much of it in use.
Myth #7 I have lots of credit available to me, but I don’t use it, so my credit should be ok.
This final misunderstanding about credit card use may sound like a contradiction after what we discussed in Myth #6, but it isn’t.
While it’s true that you want to have little of your available credit in use when you apply for a mortgage, that’s not a guarantee that you won’t have a problem getting a mortgage. Let me explain:
Lets say that you make $4000 per month. Your ideal debt ratio would be 28% over 40%. This means that you would ideally have a mortgage payment of $1120 per month and a total of $1600 when you add the other monthly bills (credit cards and car payment).
Now, lets say you have $25,000 in unused credit available to you in the form of credit cards. While your debt ratios are ok if you don’t use the $25,000, they would be shot if you did. Since your total debt ratio would be 55% (based on a $625 per month payment on the $25,000), you could be rejected for the mortgage.
As you can see, in this example, it’s the availability; of credit that can hinder your chance at getting a mortgage.
My recommendation to my clients who get offers of credit line increases is to reject them. It’s not something that is needed in most cases and it can definitely mess things up when it comes time to get a mortgage.
I hope you have seen how some of the most common misunderstandings about credit card usage can keep you from getting a mortgage. While there remain a myriad of creative financing strategies available to the right mortgage broker, the clients who deal with credit cards in the proper manner can go a long way in making the journey to home ownership a smooth one.
I wish you the best of success as you pursue your dream of home ownership.
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Uncovering the Most Desirable Card For Your Expectations!

When you are prepared to submit a credit card application, ideally immediately after thoroughly investigating the offer, you will find it’s not that difficult at this time. Many people complete the entire course of action on the web. From seeking the promotion that is most suitable for them, to completing the application, it’s so much simpler than it once was.
The application definitely needs to be filled out completely. It’s going to require your name, address, your home phone number, general work data which includes just how much you make and exactly how much time you’ve been employed with the firm.
If you are applying for any of the 0 balance transfer credit cards to transfer your outstanding balances from your existing financial institution, you need to have this data handy. When the credit card application is completely filled in it will need to be signed. If it is labeled as a joint card, both parties will need to sign for it.
It must be said that the credit card application by itself does not constitute acceptance for a credit line. It must be authorized by the financial institution. The time period for this to take place is dependent upon a number of elements. In some cases if they are done on the internet, they quite possibly can be authorized in a minute or so.
Once you have submitted the credit card application, if you’re approved you’ll get a notification and this will explain every detail of your credit limit as well as the type of credit card you will get. The card itself is going to arrive independently and yet one other notice should come from the financial institution with your PIN number.
When you’re declined for an account, there will be instructions outlining why you were rejected. In this letter you will see the name of a company and also the contact information that can be used to request a copy of your current credit report. The report will be cost-free as you ended up being rejected for a credit line.
Something else that may very well take place in case you are not approved for the chart of your choice, the one you applied for, is that the provider may perhaps offer you a different kind of credit card. There are lots of scenarios that can take place when you submit any credit card application.
The actual end result is based on your overall credit scores as well as satisfying the criteria of the financial institution. Even after you are accepted for the card, you don’t have to take the card. Keep this in mind prior to receiving or utilizing the credit card.
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Download Credit Card Bin Numbers List

The credit card bin is a number formed by the first six digits on any credit or debit card. While the codifications of the thousands of banks in the world might be a little complicated, you will not need to know them in order to check the security of the transactions issued by your customers. Al you need is a credit card bin numbers database offered by a specialized site, and once you introduce the data in the system, you will find out important details about your potential clients.
A site of this kind is a great method to reduce the number of chargebacks and frauds on your site. In fact, the internet pirates and scammers are aware about the power of the credit card bin numbers lookup feature, so by stating the fact that you use this service with your site, you will be able to discourage them from trying any illegal operation on your site. For those hackers that are confident in their powers and that are not scared about this feature, the credit card bin numbers search feature will surely be a burden. With this tool, you will be able to expose tem, and you might even think about reporting those illegal transactions to the authorities.
The majority of sites offering this service will give you a simple credit card bin numbers free list for the start. With this list, you will be able to check the cards issued in your country, but if you have an international site with transactions issued by clients from all over the world, you will need an enhanced version of the credit card bin numbers download. Let us see if you should pay the money for this advanced credit card bin version.
The advanced credit card bin numbers list:
The advanced lists if BIN numbers will give you the option to validate the brand of the card, the bank that issued the respective card, and most important, the country where the card was issued. A transaction issued from Ghana with a card of a Dutch cardholder is surely suspicious, but you cannot refuse it from the start. Call the respective client and the bank that issued the card and certify the transaction. If you do not want to bother your client with annoying questions that might offend him, you should check the advanced credit card bin numbers MasterCard and Visa lists offered by the BIN sites.
The credit card bin numbers check service will allow you to check the type of the card also (debit or credit), and the manufacturer (Amex, Cyrus, MasterCard or Visa). The credit card bin numbers checker must also give you details about a certain type of card. For example, even if the program certifies the legitimacy of a transaction, it might be issued by a bank that is not trusted. The credit card bin must give you details about the reasons why this bank is placed on the blacklist of the international banks, so you could decide if you want to allow the transaction or not.
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How Debt Reconciliation Quickly Eliminates Debt

Probably one the foolish thing that a debtor can do is refinance existing debt without an idea of what to do with the funds. If you carry an excessive amount of credit card or other unsecured debt, then borrow enough money to eliminate your unwanted debt. This strategy is known as debt reconciliation, or debt elimination.
If you utilize refinancing to pay off your debts, it may be a sound idea. This short article seeks to reveal to you several tips that you may apply.
If you don’t utilize a strategy, you might not receive the wanted benefits of your refinancing plan. You may consider using the tips below to increase the odds of eliminating your debts.
1. The first step you need to do is to know precisely how much credit card debt and other unsecured debt you have. You can make a list of your debts in order to figure out how to pay them off. It wouldn’t be beneficial to refinance if you have more debts that you forgot to include in your computations.
2. Verify the details about debt reconciliation before you start the program. This will ensure that you are not getting ripped off. Get everything in writing, such as monthly payment, estimated duration of the program, and approximate savings.
3. Remember that debt elimination will have a temporary negative result on your credit. Seek a debt reconciliation company that offers free credit repair. Also, they should provide free attorney consultation in case one of your creditors threatens to sue you.
4. The moment you decide to pay off your balances, your creditors will be strict in regards to your debt elimination program. They will prohibit you from charging anymore. The idea is to ensure that you won’t add anymore debt without paying them back.
5. Debt reconciliation is an effective strategy to pay off your debt load. You will only  have to pay  back about 20%-75% of your outstanding debt. Enrolling in a debt reconciliation program will also help you to lower your monthly payment. Also, the debt consultant should utilize various strategies to help you get rid of the creditor harassment.
Debt reconciliation is just one of the solutions that you have at your disposal in order for you to get out of debt. If you have many choices then just consider debt reconciliation as one of them.
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Amazing Credit Cards For Bad Credit Available Credit Repair!

Changing Bad Credit To Good And Credit Repair Credit is a rather modern concept in our society. In the age of the barter system, we could not fathom the concept of a credit system in a purely weight based system of trading. With the advent of paper money did the system of a credit come into being. With the concept of credit came a policy to keep track of people’s credit viability- the ability of a person to repay a credit given by a person or an institution. Often these are known as credit scores and in the modern trade environment they are the reference for providing an individual or an institution with a credit. Often these credit scores are used to determine the amount of and term of credit. With the concept of credit scores came the concept of credit repair. There are a number of ways to obtain credit repair and one of the best ways is to get credit cards for bad credit.

Credit Repair methods:

  • One of the most commonly used credit repair methods is to pay off loans and credit bills faster. In case of loans the loaner must not only pay the interest across 12 months but cut costs and pay the interest installment of the 13th month within the 12thmonth itself. In case the user is not able to pay this installment they should try and get a smaller loan period for the payoff which will substantially reduce the amount of interest to be paid on a loan.
  • Getting credit cards for bad credit is also a very commonly used method and is often the best policy. The method used is the policy to pay off one loan against the other. The best and perhaps the most beneficial purpose of this method is that people can get extra credit points (these credit points are in no way related to credit scores and are often the basis for an institution to provide loans).
  • One major advantage of using credit cards for bad credit is that one can improve their credit scores within a very short period of time. This is because the person can not only payoff the loan within a short period of time but also better their credit scores on the basis of the goodwill earned with the credit card issuing authority (often the credit issuing authority has to be well recognized to better credit scores).


credit cards for bad credit
credit cards for bad credit

Credit Cards For Bad Credit repair: Often it might be assumed that getting one credit card to pay off or to better ones credit liabilities is not a good idea as it only increases the credit burden on an individual. In most cases this is a misleading concept. This will not only benefit the amount of time that the person has to pay off the credit that the person is liable to pay. When it comes to better credit scores in terms of loans the person should avail a credit card as the interest amount is much lower for credit cards as compared to loans of any time.


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User Ability Of Credit Cards For Bad Credit- A HISTORICAL OVERVIEW

The concept of credit cards is based on the same principle of currency devaluation. In most cases the people willing to take accredit is issued a credit on the basis of historical data that was provided by the user. To get a better and more in depth understanding of how credit cards for bad credit can be used for credit repair we must first understand the process of how credit emerged into the society and was later followed by credit cards.
Capitalism has always been the father of trade since ancient times but the manner of trade was vastly different in a time where there was no globally accepted currency like the US Dollar or the Euro. The main tool for trade was the goods that the trader was to use for the trade itself. This system was called the Barter system of trade. With the emergence of the early forms of globalization came the concept of a inter exchanging currency (this should not be confused with coins that have been used by people for millennia) but with it came a supply demand process of a currency losing or gaining value in relation to another currency.

With the emergence of a globally accepted currency the consumer was given the option of selling goods to the buyer without the buyer having to pay on the spot. This is what we refer today as a financial credit system. This system lead one to the system of using credit cards for bad credit and the headache of credit repair (the process of bettering the credit score of a person, which was established through historical data over a period of time).

Difference Between Credit Repair And Bettering Credit Scores: 

Credit Cards For Bad Credit
Credit Cards For Bad Credit

The process of credit repair only came into being when people began to go back on payments for different things they
had purchased on credit. In the process what happened is that the historical payment data (data collected over a period of time to judge the ability of a person to repay a loan) of a person got worse. Banks and other financial institutions took advantage of this situation (the banks and other financial institutions were looking for a profit over a certain period of time) and issued more credit cards for bad credit investors with the hope that the investors financial standing would have an upswing for the better and people would be able to pay off the large financial burden under which they were being put.

User Ability Of Credit Cards For Bad Credit:

The thinking on the part of banks and other financial institutions while giving away loans to people with bad credit scores was that they would have stable jobs and be able to pay off both the loans and the credit card bills over a period of time thereby generating more profit for the banks and other financial institutions. The process of issuing credit cards for people with bad credit might have slowed down now but with the global slowdown getting less effective the issue does not seem to have seen its end.

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Best Credit Cards Proper Searching Technique!

The world is so full of companies that offer the best credit cards that one can become confused and not know which one is the best.  Before a consumer conducts research for the best credit cards, he or she should have a firm understanding of the various card types and how they benefit a consumer in a certain way. The following are the four main types of consumer credit cards.

Best Credit Cards for Rewards

Best Credit Cards
Best Credit Cards

Rewards credit cards are some of the best products for consumers of all types. These special credit cards offer the cardholder a multitude of benefits. Three main types of rewards cards exist: cash back rewards cards, points rewards cards and travel rewards cards. When trying to find the best credit cards for rewards, the consumer should take the time to think about what he or she would appreciate the most.

A person who likes the idea of earning cash for every purchase will find the best credit cards in a cash back rewards product. Someone who travels frequently may insist that the best credit cards are ones that offer rewards miles for flights.  A person who likes to buy electronics and other prizes will swear that the best credit cards are the ones that issue points for future online purchases.  Hundreds of rewards cards are available for the debtor’s comparison.

Best Credit Cards for Balance Transfers

Balance transfer credit cards are cards that allow the debtor to carry over balances from other lenders and combine them into the new card’s balance. Some people who have multiple accounts with high interest rates will feel that these are the best credit cards. Balance transfer cards often have zero interest introductory periods. The consumer can take advantage of this introductory period to pay down the balance of the merged account. The best credit cards for balance transfers will offer low or no introductory annual percentage rate for an extended period.

Best Credit Cards
Best Credit Cards

Best Credit Cards for Poor or no Credit

Whether a person is newly established in the credit world or has a negative payment history, a card is available that can help. Poor credit products and no credit products have lower qualifying criteria. These cards may have a higher annual interest rate than traditional cards.  However, the companies that offer these products give consumers a chance when other companies will not.

Generally, the initial credit line for these types of credit cards is not high. The idea is to give the debtor a chance to establish or reestablish himself or herself, without causing the lender much harm if the person defaults. The more timely payments the cardholder makes, the higher his or her credit limit will be.

The Best Credit Cards with no Annual Fee

Many of the best credit cards that have no annual fee also have other appealing features. The consumer should always pay attention to whether the card attaches an annual fee, because such a charge will diminish the value of the total credit line.

The key to finding the best credit cards is to make a list of every desired feature and then use a comparison tool to find the perfect one. Ideally, the selected card will have no annual fee, a low interest rate and a high credit line.

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Best Credit Cards For Consumers!

Best Credit Cards And How They Can Help

Best Credit Cards
Best Credit Cards

The best credit cards can be a much needed convenience to have at one’s disposal. Using these cards and paying the bill on time and in full is not only convenient, but an excellent way to use good credit. The trouble that many people face when looking for lines of credit is that they don’t know what separates the best credit cards from the cards that will charge them ridiculous fees. By not reading the fine print, these consumers wind up with credit cards that wind up charging them more money than they can pay, inevitably diminishing their credit score.

Difference Between Bad Credit Cards And Best Credit Cards?

When a consumer inspects the market in order to try and find the best credit cards, they will quickly realize that there are innumerable companies that are very eager to sign them up for a credit card, even if their credit is low or minimal. Many of these companies are offering cards which should be avoided. These cards have a very high APR which may get even higher over time as well as finance charges and other hidden fees. Those companies don’t want to give consumers a hand up, they simply want to make money. While credit card companies in general are designed to make money, the best credit cards have a reasonable APR and minimal finance charges with a contract that is easy to understand. By only applying for and using the best credit cards and avoiding credit scams, consumers can obtain a good credit score without breaking the bank.

 What Are Some Other Benefits Of Using The Best Credit Cards?

When a consumer uses some of the best credit cards, they may be eligible to be members of a rewards or benefits club associated with their card. Many of the best credit cards offer points that can be redeemed for gift cards, high end merchandise and even air travel. In some cases, the best credit cards will offer rewards points for gasoline and even cash back rewards for using the card frequently and paying the bill on time. These amenities are just one more thing that sets the best credit cards apart from the rest.

Using Credit Responsibly For Best Credit Cards

Even if a consumer is eligible for one of the best credit cards around, they will not build a high credit score if they do not use their credit responsibly. It is best for a consumer to not make large, unnecessary purchases that they would not otherwise be able to pay for. This indicates that the consumer is living beyond their means and is setting themselves up to deal with debt and eventual bad credit. Instead, a consumer should use the best credit cards for regular purchases such as groceries or bills. These purchases would normally be paid through their bank account, but they can instead use that money to pay the credit card bill, consolidating their finances and improving their credit score simultaneously.

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Best Credit Cards Are Not Created Equal

Choosing The Best Credit Cards Is An Important Process…

Best Credit Cards
Best Credit Card

Choosing a credit card is a process that should not be taken lightly. All credit cards are not created equal. The best credit card is entirely dependent on what it will be used for. However, there are three basic principles that all credit seekers should abide by; never open a credit card that limits your buying power, choose from a well known company, and always read the fine print before signing on the dotted line.

Is A Store Credit Card A Great Way To Establish Credit?

Store credit is limited to that specific retailer, and possibly their sister stores if you’re lucky. This kind of limitation does nothing to boost your credit score. Also, store credit cards usually have an interest rate greater than 20 percent, and no grace period on purchases. This means that you start accruing interest the second an item is bought. Most major credit cards have a 30 day standard grace period before any interest is applied on purchases.Before looking anywhere else; research opening a credit card through your own bank. Having a credit card through your bank is the ultimate in convenience. Many banks let you connect your credit card to your debit card as a safety net, should your account ever be overdrawn. The overdrawn amount will simply be added to your credit card balance which could save you from non-sufficient fund fees.

Best Credit Cards
Best Credit Cards

If opening a credit card through your bank is not an option then keep in mind that the best credit card offers come from reputable banks and credit unions. A good rule of thumb is, if you don’t recognize the name of the bank; don’t open a credit card with them. Lesser known companies typically charge annual fees on top of a high interest rate. An annual fee is charged every 12 months by a credit institution for the convenience of the card. But if the card doesn’t offer special benefits such as airline miles, or a percentage of cash back on purchases, then an annual fee is not worth the mere use of the card.Reading the fine print is a long and laborious task, but with credit cards it is essential.

Many credit cards have enticing offers, such as zero interest for the first three months. Zero interest for the first three months is great, but what is the interest on purchases after the first three months? What are the fees if you go over your limit, or make a late payment? What might cause your interest rate to go up? It is important that you know the answers to these questions before opening any credit card. Changes to your interest rate, or exorbitant penalty fees can greatly increase the time it takes to pay off your credit purchases.Without the proper knowledge; credit cards can go from a wonderful convenience to a stressful burden. Following these simple guidelines will help increase your credit score, and prevent you from accumulating unnecessary debt.

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Best Credit Cards With Tips For Identifying Them!

Best Credit Cards Are Essentially Free Simply Pay Them On Time

Unless you’re living completely off the radar, you are likely being sent credit card offers through the mail, via email and through countless banner ads. However, when you really do want to get another credit card, how do you determine the best credit cards?

Best Credit Cards
Best Credit Cards

However, if you plan to carry somewhat of a balance and want to save as much money as possible, you will want to find credit cards that has the lowest interest rate possible. The interest rate that you qualify for will be partially determined by your credit score. However, creditors will try to compete with one another by offering lower interest rates. Debtors will also want to get credit cards with no annual fee or bank service charges.

When Choosing Best Credit Cards Focus On Actual Interest Rates!

The best credit cards will offer lower interest rates, but will raise them later on. Also, you should fully understand all of the fees that the credit card company might charge, including cash advance fees, over-limit fees and application fees. While fees are relatively common with credit cards, excessive fees can become expensive for the debtor. The worst fee is a penalty that is applied when you do not use the credit card, which can be a punishment for responsible credit card usage.

The credit limit is another important factor. For the most part, you will want a credit limit that is related to the amount of money that you will be able to spend. However, if you have a hard time controlling impulse spending, you might want a lower credit limit.

Find out what the billing cycle is. Most credit cards have a monthly billing cycle. However, there are other credit cards that will bill you as soon as every two weeks. Make sure that you can pay the credit card during the billing cycle.

Best Credit Cards
Best Credit Cards

Why Companies Encourage Customers To Use Their Best Credit Cards!

This can be very useful, since you will essentially receive free items without paying a cent, if your credit card does not have any other fees. The point system can provide you with another way to identify whether one credit card is superior to another. However, it can be difficult to determine whether the reward system of the best credit cards has the best credit cards points system.

Credit Card companies often provide a variety of tools that can make it easier for you to manage the credit cards account. This often includes an online credit card account where you can check your balance and make payments. When you can make your payments online, they will often be posted to your account. Interactive features can also include an estimator that helps the credit card owner determine how long it will take to pay their credit cards off by making the minimum payment.

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