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Credit cards can
be obtained by submitting the required application to online
finance companies, banks, or shops. When you have your credit
card you can
borrow money from your credit company. Once a month you will get
a statement
telling you how much you owe, your minimum payment and the
accumulated
amount of interest.
Having a credit card creates many purchasing convinces. Such as,
booking a
flight, online buying, renting a car. A credit card also allows
us to not
carry any more cash than necessary.
There are many great conveniences and perks to having a credit
card but there
are also many consequences and problems that can occur if your
not a
responsible spender.
Many Americans find them selves in debt because they borrow more
than they
can afford and cant pay off their bills.
People often find themselves
debt
when they get in the habit of only
paying the minimum payment.
The minimum payment is only a small amount of the total
debt.
The remaining
unpaid debt will occur monthly and interest that can be as much
as 30%.
A few two may minimum payments and your debts can get out of
control.
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Pay Less
Guide To Credit Cards |
Avoid paying large
amounts of interest by only purchasing what you know you
can afford. If you pay your credit card in full every month you will
get a
free interest grace period of 28 days.
Late Fees
Whatever amount you decide to pay, make sure you pay on time! Late
payments
may be as much as $50, on top of that extra interest will occur.
Most credit cards today allow you to access your account online. Set
up
automatic payments, that way you wont have to worry about late fees.
Interest Rate
If you don't want to pay the balance in full every month you will
need a low
interest rate credit card. The only way to get this is to build good
credit
by paying off all your credit related bills.
If your credit score is so low that you cant get a unsecured credit
card. You
may need to get a secured credit card first.
Got Good Credit?
If you already have good credit you have the option of many
financial
perks...
0% Intro APR
Many credit card companies will try to get your business by
offering you a 0% intro rate. This means you don't have to pay any
interest
for a set period, such as 6 months.
You can take advantage of this by keeping your money in a high
interest
account for 6 months then paying off your card in full at the end of
the 6
month period and pocketing the difference.
Card Perks
All big credit card companies these days offer incentives for
you to use your credit card as much as possible. As every time you
use it
they make a commission.
Whether its air miles, bonus points or cash back you can
benefit nicely.
A 2% cash back credit card will earn you $600 on a $30K annual bill.
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Other Resources |
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