Credit Card Quick

How to know when it’s Time for your First Credit Card

Choosing Credit Card

A credit card is a big financial responsibility.

Make good credit decisions and you can enjoy a strong credit score. Make a bad move or two and your credit score is ruined. But beyond this, you must also be in a good financial situation before applying for a credit card.

If you want to enjoy the many benefits of a credit card, there are a number of things to first consider. In other words, there may be a number of ways to know when it’s time for your first credit card:

• You have a steady job, with at least a few months of employment under your belt.

If you’ve landed a steady job that you enjoy and you feel like your employment there is stable and the hours and salary are predictable it may be time for your first credit card. Applying for a credit card when your employment is on shaky ground is just not a smart move because you could be stuck with a balance you simply can’t cover.

• You have a checking account in good standing.

Most credit card companies will want to see an open checking account for applicants. Open a checking account, keep it in good standing with a positive balance, and you could be ready to apply for your first credit card.

• You are managing your monthly bills, including utilities, rent and student loans.

If you are currently handling a rent payment, utility payments, and even student loan payments each month you are in luck, as these steady payments are what most credit card companies want to see. In other words, your timely payments show a creditor you are capable of handling the responsibility of a credit card.

• You understand the responsibility that comes with a credit card.

Before applying for a credit card, make it a priority to understand the terms and conditions of the card so you can be certain you are making the right financial choice. If there are terms and language you don’t understand, don’t be afraid to contact the credit card company and ask for clarification.

Your Guide to Playing the Credit Card Game

Introduction

Did you ever hear the saying, “If you can’t beat them, join them?” We like to think our relationship with credit cards is much like this old saying because although many of us rely on them and enjoy their convenience and practicality, they often come back to bite us financially.

So, is there a way to be able to enjoy the best of both worlds? Can you really enjoy the many benefits credit cards offer without falling victim to fees and steep interest rates? You bet! Here’s how:

• Read, read and read again – Simply put, an informed consumer is a smart consumer. Because of the CARD legislation, creditors must now be quite transparent regarding terms and conditions of the credit card. Therefore, all of the credit card’s rules and regulations must be clearly spelled out. If you thoroughly read this information, and contact the credit card company to explain anything you don’t understand, you will be ahead of the game because you will know exactly what to expect from the card.
• Pay your card off each month – Regardless of what fees and rates the creditor is charging, you can avoid them altogether by simply paying the card off, in full, each month. Remember: you will always be in control if you pay off your card each month!
• Pay on time, without any exceptions – Unless you are enjoying a promotional credit card rate, your creditor cannot raise your interest rate unless you fail to pay on your balance by the due date. If you are bad with due dates, set up automatic payments, either through your bank or creditor, to ensure that you never miss a payment.
• Avoid cash advances like the plague – If there is one feature of a credit card that should never, ever be used unless you are in a true, financial emergency, it is the cash advance feature. The bottom line is that all bets are off when it comes to cash advances, so you can expect outrageous fees and equally outrageous interest rates that will certainly leave you with a swiftly mounting credit card balance that you will struggle to pay off.

Why Credit Cards are often better than Cash

Credit Card Rewards Introduction

It would make sense that cash is better than credit when making purchases. However, given the many benefits of today’s credit cards, this is not always the case.

For both business and personal use, credit cards may prove to be a very effective financial tool for credit card holders.

Credit Card Benefits

• Purchase Protection – If you receive an item that is unsatisfactory and the company or manufacturer is unwilling to grant you a refund, or if you purchase an item that arrives damaged, or not at all, the purchase protection feature on your credit card may cover your expenses.
• Extended warranty – Many purchases on a credit card come with the protection of an extended warranty. For example, electronics may be covered with a warranty that covers the purchase on top of the store or manufacturer’s warranty. Most credit cards offer a 90-day extended warranty on most purchases.
• Rewards – Many of today’s credit cards offer rewards of many kinds, such as cash-back rewards or rewards for products and services. For example, some credit cards enable credit card holders to earn points toward free hotel stays, airfare or reduced vacations. In other words, simply using your credit cards for purchases may earn you cash rebates or free products or services.
• Access to Emergency Money – A credit card in your back pocket may provide you with financial protection during an emergency situation where cash isn’t available. An emergency airline ticket, rental car, vehicle repair costs or even a new furnace are all necessary purchases that may not be attainable if it weren’t for the convenience of a credit card.
• Financial Bookkeeping – Credit cards are a very useful financial tool for tracking expenditures and maintaining finances. Credit cards, for both personal and business use, provide an individual with a clear record of all expenses.
• Convenience – Perhaps the most popular reason for using a credit card is the sheer convenience of it. Most individuals who use frequently use credit cards cite the practicality of not carrying cash as the biggest reason for using a credit card for purchases.