Debt Consolidation And Credit When it comes to credit cards there are so many choices out
there it can be really confusing when trying to determine which
credit card is the best choice. We are all different with different
likes and different habits and credit card companies know this, and
have created card fee structures that differ according to peoples
habits and circumstances. While a specific card might be perfect
for one person, it might not be as desirable for another, and might
even hurt that person financially because there habits or
circumstances are such that they are incurring fee's that they
wouldn't be incurring had they selected a different card. In
consideration of the last sentence we really need to identify these
habits and circumstances, and then take an honest evaluation of
ourselves to see which habits or circumstances we practice or have.
At this point we will be able to better identify the credit card
that makes the most sense. In adition to this we will be able to
see that different use strategies are appropriate for different
habits and circumstances. While there are many habits to examine
there are two primary habits that need to be examined first because
they the have the most impact on how we should choose, after that
we will examine other habits and circumstances.
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Check Credit Rating An outline of habits and circumstances as they relate to credit
card holders
Credit Cards You can save as much as a thousand dollars or more each year in lower credit card interest charges by paying off your entire bill each month. If you are unable to pay off a large balance, pay as much as you can and switch to a credit card with a low annual percentage rate (APR). For a modest fee, RAM Research Corp. ( 7714) rate cards. rate cards by accessing "www.ramresearch.com.cardtrack" on the Internet.
Improve Credit Rating Habit #1 Carrying a balance on your credit
card.
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Credit Online Rating Report This can be a good thing for building and maintaining high
credit scores as long as the balance does not exceed 50% of the
total available credit. If the balance is substantial than an
important card feature for this person should be the annual
percentage rate or APR. If this person exceeds 50% of there
available credit they should either pay it down or get another card
and spread the balance out as this can improve their credit.
typically you should only use between 30% and 50% of your available
credit. The following is a definition of APR. APR stands for annual
percentage rate and is the interest that the issuing bank will
charge you. Some banks will advertise an introductory APR.
Introductory APR's will generally last anywhere from 6 months to 15
months and then your APR will go to a higher APR. Another type of
APR is called a variable rate. This type of APR generally
fluctuates according to an index such as the prime rate or the 1-,
3- or 6-month treasury bill rate or the federal reserve discount
rate or the federal funds rate. You can find these indexes listed
online. An important note is not which index your issuing bank
chooses but rather the formula they use to determine your rate.
These formulas usually look something like this, [ index + margin =
rate] or [index x multiple = rate] or [index + margin x multiple =
rate]. The margin and multiple can be any #. These formulas can
make a huge difference in how much
money you pay so be sure to read
the fine print so that you can determine how your APR will look
over the course of you holding the credit card. These are the
two most common types of APR but there are others, So by reading
the fine print you can be informed.
Unfortunately, credit card companies offering lower typical APRs (Annual Percentage Rate) tend to have stricter credit check systems and are more likely to reject your application. With the uSwitch.com credit card comparison service you can compare the credit cards available that will accept applications from people with poor credit check results (or credit ratings). This will save you the hassle of having your applications rejected, which can also show up as a bad sign in future credit checks.
Credit Score Rating Scale Habit # 2 Paying our balance in full every
month.
Credit card and even more so Store card interest are set at exorbitant rates for one reason alone, companies make their money from the consumer’s inability to settle their card balances. Credit card debt is unsecured, whereas other debt like your mortgage is secured (your home acts as security against your debt). With credit card debt, there is no backing security, which means that credit card debt is high risk for banks and hence the high interest rates
Bad Card Credit Credit People If this is your habit then you want a card that has #1 A grace
period that says in essence if you pay your balance in full every
month that you will not incur a finance charge. #2 No annual fee.
#3 Rewards of some type. After all there are a lot of card issuers
competing for your
business you might as well be
getting rewarded for using their card, and being a good
customer. This person should also be aware of a specific use
strategy that is outlined in another article I wrote which can
be found in the resource section under Credit Card Articles at
my web site which is referenced in the author section following
this article. The article is entitled "Credit cards the secrets
on how they affect your credit" if this is your habit,
seriously, read this, it could mean the difference between good
credit and bad credit.
Free Credit Rating Report Habit/Circumstance # 3 Traveling
Credit Rating Scale Many people travel often and and don't have a rewards card that
rewards them with free air travel. If this is you consider a
program that offers compensation for things put on the card in the
way of air travel, some of these programs can be generous and offer
securities for the traveler. A friend of mine received enough air
miles from his normal card usage to take his family of 5 on a
vacation to Hawaii from california and he didn't pay a dime on
airfare. A few things to remember about these cards is #1 They
often have an annual fee generally ranging from $25 to $75 but if
you use your card enough and travel enough this is not a factor. #2
Some of them have a slightly higher annual percentage rate but they
may also have a grace period so if you pay your balance in full
every month than this is not a factor. #3 As in the case with
applying with any credit card, please , read the fine print. I just
got off the phone with a friend of mine that told me a story that I
have heard so many times before, when he was young he got a credit
card and didn't read the fine print. Well as you can imagine he
used his card in such a way that he incurred fees that he was not
able to pay off in a timely manner. Credit cards need to be used
properly, when this is done good credit results and thus a position
of financial leverage can be attained, when they are used
inappropriately bad credit results along with regrets and
financially challenging circumstances.
Bad Credit Rating Habit # 4 We shop at specific places over and over
again.
Credit Rating Agency If we get gas at the same gas station every week or we drink
starbucks every day or we go to disneyland every month or we buy
books from boarders books every... and the list goes on. If this is
us we should try and find a credit card that givesn us in the ball
park of %1 to %10 percent back toward purchases at our store of
interest, others will give1% to 5% cash back on our card for
purchases at select stores. Right now the buzz is all about cards
that give %1 to %10 back toward gas purchases. With the way gas
prices have been rising this is not a bad idea. Some of these cards
will also have other great features like no annual fee. and
possibly a low introductory APR.
Credit Rating Canada Habit #5 We are sometimes late on our
bills.
Bad Credit Mortgage Rating Many of the credit card issuing banks will raise your APR
sharply if you are late on even one payment.
Good Credit Rating Some times the due date for payment will not only have a day but
also a time such as 1:00 pm. If your 1 minute late your rate is
going up as if you had power over when the mail is delivered. If
this is you be cartful. Just a note, this can happen to anyone
after all, unforeseen occurrences happen every day. If this does
happen to you its not the end of the world. Usually issuing banks
will not report to the credit bureau's for thirty days after the
due date so as long as you pay before then you will be ok. You may
have a higher APR but your credit won't be hurt and that's the
thing you really don't want to happen. On this last point don't
take my word for it, find out from the issuing bank what their
policy is regarding reporting and select a card accordingly. Trust
me this is an important feature to know about
Credit Score Rating Chart Circumstance #6 Challenged Credit or no credit or never had a
credit card before.
Credit Mortgage Rating Poor If this is you consider a credit card for rebuilding credit such
as a secured card.With this type of card you deposit money into an
account and then you are given a card that is equal to your
deposit, in this way you can not exceed your limit, and just about
anyone can qualify for this type of credit card, as well as this
you have an opportunity to build credit history, and if you use
your card appropriately and pay on time, often times the issuing
bank will turn this secured card into an unsecured card.This can be
a very affective way to reestablish credit or attain a credit card
for the first time.
Good Credit Rating Score Circumstance #7 we have an existing balance on a credit
card.
Poor Credit Rating Loan Maybe we have balance of $9,000 on a credit card, and we made
one late payment on it, and the interest went through the roof
however we still have good credit, and we are a good customer
overall other than that one late payment. We might consider a
balance transfer credit card. Things we want to look for are #1 if
there is a fee for transferring a balance to the new card and how
much #2 is the balance transfers' APR fixed for the
life of the balance or will it
go up after 6 months to a year, even if it does go up after 6
months this might be a good strategy if we plan to pay it off
before then or if we plan to transfer it again, and sometimes
these APR's that go up after 6 months to a year can be 0%. This
could make senesce even if our APR was low on our previous
credit card because you just can't beat 0%.
Bank Credit Rating Circumstance #8 We have excellent credit.
Credit Card For Poor Credit Then we should be able to find a credit card that has all the
features we can reasonably expect at rates that are extremely
competitive.
Business Credit Rating Circumstance #10 we are a student.
Moodys Credit Rating Students should consider student credit cards because if they
have never had a credit card before they will have a better chance
of attaining a student credit card as the issuers give students
more leeway. Studies have found that students are often more
responsible with credit cards than other youths and are more likely
to pay what they owe.
Credit Card With Bad Credit Hopefully this article was helpful. I know that this article did
not and could not address every concern facing us when considering
how to choose a credit card but these are some of the most asked
about topics when it comes to the subject. There are many cards out
there that are hybrids and will encompass many habits and
circumstances, So then we may not be isolated to one circumstance
or habit. If you need more information regarding credit cards
credit scores rebuilding credit ext..
Personal Credit Rating Please visit my web sites resource center, You can find the web
site address in the author box bellow.
Catalogue: Finance | Credit Cards
Title: Credit Cards Knowing This Can Save You When Choosing One
By: Hugh Parker
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