Category Archives: Credit Card

Credit Habits To Develop at 20

Credit Habits at 20 Teenage, it’s the age generally preferred for fun, enjoyment and living your life in craziest ways. But after teenage when you enter into twenties, it’s high time you need to start to plan your saving habits and credit tendency. You need to have an idea regarding your credit habits and mold it into right direction and make it stable if it’s not. Here are 5 simple ways of credit habits one should develop at their 20’s and maintain it lifetime.

  • Educate Yourself

Credit, it’s not such a thing with which you want to take a chance with or conduct experiment with. You become double sure with your credit related things. It’s like a cup of tea to kill your credit health rather than to improve or maintain it. You are availed with only one chance to build your credit history from scratch. Thus before starting up with your credit habits, it’s pretty much important to get proper knowledge and education regarding what factors to go in your credit score and how to read your credit report.

If you are reading this you must be encouraged to take the first step. However it’s very simple to get educated as internet offers you with all available information you want.  You should have information regarding ins and outs of your credit and also about personal finance. It’s not like you have to be some expert but have just that much education which can help you get a good start with your credit journey.

  • Monitor Your Credit

Having a track on your credit reports and scores could be beneficial to you in 2 ways. The first thing is that it gives you a good opportunity to learn how your credit reacts to different financial action.  Tracking your score helps you to see firsthand how it affects each time you do something credit related like applying for a new loan or paying down your balances. Second benefit you get from tracking your score is that you can detect fraud and errors on your report and act to it promptly.

Now you would be wondering how you would do this. It is very easy. You can get paid and free service that allows you to monitor your credit reports or scores. Just check whether it is free or payable. You can also get free copy of your credit report every year from AnnualCreditReport.com.

  • Build A Crisis Fund

As proved by the survey conducted by the February Bank rate, 21 percent of people in the age group of 18 to 29 years have more credit card debt than they have in their crisis fund. This is irrelevant and improper as financial emergency can occur anytime and you must have  savings for that emergency. If you don’t have such savings then it can cause trouble and can deteriorate your credit tendency.

You can create a crisis fund by putting aside a specific amount from your each pay and over a time it would be a good amount which can save you in trouble situations.

  • Pay Your Bills On Time

One of the best alternatives to build credit is timely payment. Your credit score is measured by repayment of debt in a timely manner. For calculating credit score, the most highly weighted factor is your on time payment percentage.  Just a single late payment can detain your credit health for years.

Generally people have a problem of forgetting their dates of payment. You can try out setting up calendar reminders to email or text themselves when credit cards due date is coming up. If you have several numbers of credit cards and have a problem keeping track of all of them, then you can fix a common date for all of them making it easier for you.  You can also enroll in autopay services. If none of these work out, you can pay your all bills on first day of every month.

  • Limit Your spending

The most difficult habit to cultivate among all of this is to limit your spending when you already know you have a good amount of income, you cannot resist yourself from limiting your spending. But you must be aware that loans and credit cards are not free money. You have to repay them back. Failure in repaying may result in suffering of your credit score.

You must be thinking how to limit spending? Before purchasing ask yourself a question do you really need it or without purchasing also it can work. This will help to reduce extra purchases.

Handy tips to manage credit card debts

manage credit card debtsAll leading credit card companies woo customers with promotional gimmicks and several offers that seen too-good-to-be-true in the short run. A lot of people get swayed by the lofty promises made by the credit card companies and end up having more than one credit card to their names. However, you need to understand that more often than not people with credit cards run into credit card debts and this can put a person’s financial health at risk. So, if you do have a credit card and want to use it to make purchases, you will have to make sure that you are able to handle your credit card debts efficiently. For this, expert credit card management is required.

If you have already raked up a credit card debt, then it is advised that you stop using your credit card to make further purchases immediately. However, you are advised against closing all the credit card accounts abruptly and this will affect your credit score adversely which will hamper and diminish your financial capacity. So, you need to practice self control and be determined not to use your credit card until and unless you have cleared all your existing debts. This might take some time, but you will slowly but surely do away with all the debts.

Also, to manage your credit card debt properly you must draw up a budget and make a determined effort to stick to that budget. Make a list of your debts complete with the rates of interests charged, credit limits, minimum fees, annual fees and all the other associated fees. The bills with the highest rates of interests should be given priority and you should make arrangements to pay them off as soon as you can. If possible, pay off the entire due amount at a go so that you do not incur the interest rates anymore.

Tips to maintain your credit profile

credit profile, Credit CardThere are a few things that you will have to take care of when you are trying to improve your credit profile. First of all, you have to handle the lines of your credit in a very responsible manner. This will require you to make the payments of your credit on time and make sure you pay the full amount every month.

It is also very important that you maintain and abide by the conditions of the agreement of your credit card. You should not try to avoid two accounts of credit cards at one time. This can land you in a lot of problems especially if the rates of interest on your credit card are steep. Use your credit card program only when it is absolutely important. Make sure you do not invest with your credit card over things that you are not really in need of.

Protect yourself from credit card frauds

Credit card frauds are on a high these days. The article below thus provides you with some valuable tips to prevent yourself from any credit card scams. Firstly, always keep a watch on the card while using it and get it back quickly as soon as the transaction ends because copying the card details takes very little time.

Then, make sure that the companies or websites you are transacting with are accredited and legitimate ones. Always remember that reputed agencies won’t usually ask your card number over the phone. Never entertain unknown e-mail messages which request you for the credit card info via email as these are usually scams.

Do not write the PIN digits anywhere in the card and always keep the card covered so that nobody can copy the card data with the high end technological means like mobile phone camera. Lastly, make sure to keep a record of your card numbers, expiration dates and all the possible contact info of the card issuer which will help to contact them in case of emergencies.

Credit card risk management

When the credit card issuing merchants have to deal with disputes initiated by their unsatisfied customers, it is termed as credit card risk. These disputes are also called “charge backs”. The customers either complain of false charges or misuse of their credit cards illegally by someone else.

Thus the card issuers need to apply the credit card risk management for protection against the possible losses. If a customer fails to repay his debts consistently for a certain period of credit limit, then the issuers would first reject all his transactions. Then their credit usage might also be frozen. It would help to prevent the over-flowing debts.

Credit card frauds are commonplace and in turn have increased the risks. It is the duty of card holders to inform the bank in case their cards are stolen. The bank must immediately block the card to prevent misuse. While accepting the card, it is wiser to verify its safety features and also tallying the signatures.

A brief history of credit cards

Credit cards, don’t they sound familiar. They are cards which with one swipe can help you purchase anything you can dream of. The idea of credit cards started way back in the 18th century when a fixtures and furniture trader granted payments in installments to the customers who couldn’t afford to give the money in one shot. Thereby, credit payments initiated and continued for the coming centuries.

The main turning angle was during the beginning of the 19th century. In 1914 a service company called WU started the fresh credit notes which allowed the customers payments through deferment. In the years to follow, other companies followed suit-letting people pay on credit. It was during the post World War 2 economic rise that banks in America began the system of credit cards. People bought products without cash payment.

The Franklin National Bank, New York in 1951 started the plastic credit cards that we recognize today. Once the prospective of this ground-breaking monetary product was stated, numerous banks plunged into the mushrooming marketplace.

What not to do with credit cards

Credit Cards have brought in a revolution to the retail business over the years. As helpful as it might sound or be, it has more than often negatively impacted the customers. Often customers don’t understand the interest rates and calculation rules of a credit card and tend to swipe it as and when possible. This can be very harmful, in case there is a problem in terms of payoff during the pay date. A credit card user should never make a delayed payment, as it might hamper his or her credit rating. One should be very careful while carrying their cards, as misplacing them might lead to misuse. The secure password, which is required to do online transaction, should never be shared with anyone for security purpose. One should never write down their credit card details anywhere as it can go to the wrong hands and be used up. Credit card should be treated with utmost care!

All about prepaid credit cards

Have your credit cards spoiled you to an extent where you have found yourself almost bankrupt? Have you tried numerous times to get yourself a new credit card but failed each time because you were rejected for having a bad credit record? Do you think your golden days of no-instant-money-take-out-credit-card have come to an end??? Think again! With the advent of prepaid credit cards bad creditors can continue spending without ever having to bother about getting bankrupt.

Prepaid credit cards can be issued by making a security deposit at the time of issuing it. There is a limit upto which you can spend on that credit card which will depend on the security money. Since there is no scope of debt, even bad creditors can apply for it. However, do not confuse them with debit cards as prepaid credit cards still let you purchase in credit but debit cards don’t. Since these special credit cards keep a check on your spending habits, they are becoming more popular than the regular credit cards.

How to apply for online credit cards

Prior to applying for an online credit card, you should find out which one to go for. There are myriad options available and you must do your homework well. Search the internet for all the options, visit their websites and compare them carefully. Choose the one whose payment options, etc. suit you the best. The websites offer a lot of information, so you shouldn’t have trouble deciding on one.

Next step is to accurately fill up your application form. You must ensure that you have filled in all the fields properly and accurately. Your application will be rejected if the form is incomplete or if the details provided are false. Various companies differ in the time they require to process your application; an application for a zero interest credit card is bound to take longer.

The options are many today; choose wisely now, to prevent regretting your decision later. Once decided, the online application is a simple affair as the credit card sites are secure and simple to use and the instructions are clear and easy to follow.

Credit Card Security Features worth Opting for

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Using your credit card to make purchases is a more secure option compared to others but it is not entirely safe. Credit card related fraud has become very common therefore you need to make sure it has some features that make it safer.

One of the most essential features is a zero liability policy. This feature will ensure lost funds are reimbursed if you report any authorized purchases that are credited to your account. The feature is offered by all the major credit card companies but their coverage usually varies. The stolen money is reimbursed by the card issuer.

A temporary purchase number feature is also worth it if you have a credit card. This allows you to create some virtual numbers to use for every purchase you make especially over the internet. The temporary numbers are connected to the real account but you get to determine the constraints under which they are used.