Studies have shown that people generally maintain a business relationship with their first card issuer for 15 years, which is why creditors want to get customers when they are young. The relationship lasts so long because the young consumer doesn’t know how to find better deals.
Many people are suggesting that credit card companies are aggressively trying to get students hooked on credit by luring them with T-shirts and other freebies when they apply for cards. This guide is designed to give you the facts you need to be a wise consumer and the tools to use credit to your
Read more…Credit Cards: What You Need To Know
To get a good credit card, you need a good credit history. Here’s how to build or rebuild yours.
It has never been quite that simple for borrowers with credit problems or without a credit history to get a good credit card deal. And with lending criteria getting tighter, it looks set to get even more difficult.Nowadays, the most competitive credit cards are usually reserved for people with excellent credit ratings. If your credit score doesn’t measure up, don’t be surprised if you get turned down if you apply for a top credit card.But that doesn’t mean you can’t get credit
Read more…How to biuld, or, rebuild your credit history (United Kingdom)
Keep your balance low in relation to your available creditKeeping your credit balance to 25% or below your available credit is a good general rule. But, don’t open credit accounts you don’t intend to use just to increase this ratio.
Pay your bills on timeLate payments make a huge (negative) impact on your score. If you have missed payments, get current and stay current.
Make more than the minimum paymentIf you make only the minimum payment on your credit card each month, it may take longer than you think to pay off your balance. For instance, say you have a
Read more…6 Ways to Improve Your Credit Score
Understanding the language of credit cards will help you make informed decisions when choosing one. Below is a list of some of the most commonly used credit card terms.
Annual FeeThe once-a-year cost of owning a credit card. Some credit card providers offer cards with no annual fees. The annual fee is part of the total cost of credit.
Annual Percentage Rate (APR)The yearly interest rate charged on outstanding credit card balances.
BalanceAn amount of money. In personal banking, balance refers to the amount of money in a savings or checking account. In credit, balance refers to an amount of money owed.
Credit BureauA
Read more…Credit Card Terminology
InterestWhen you use your credit card, the issuing bank is really giving you a loan for the amount of your purchases. The bank charges a fee, called interest, for using its money. The credit card company pays the dress shop or the furniture store within a few days of the transaction, and you must begin repaying the loan when your monthly statement arrives in the mail.
All interest charges can usually be avoided by paying the balance in full within the time limit specified on your statement. Obviously, the quicker the balance is paid in full, the less interest is paid.
Read more…Understanding Credit Costs
