Category: Credit

Managing the Use of Your Credit Card

Whether you have just received your first credit card or have been holding one for some time now, learning how to manage its use will prevent problems from arising later on. Many people have fallen into the trap of carelessly relying on credit that they end up accumulating more debt than they can handle. It is very important to know what to look out for and to seek debt advice right at the onset in order to ensure that your finances stay on track and your credit history remains unblemished.

For a college student or a fresh graduate on his or her first job, having something to help pay the bills is a great convenience. Trouble lies in how very easy it is to lose track of how much you are actually spending via credit as compared to depending solely on cash. Credit cards are often treated as though the money they offer is free and the repercussions come only after it is too late.

Choosing which bank to work with is a good place to start. Interest rates vary across the market and taking the time to compare various deals will get you the lowest rates possible. No matter how many offers you receive for additional cards, keep in mind that there is no real need to have them all at once. Once you begin paying through credit, manage payments better by settling the full amount each time to avoid a number of surcharges. Most cardholders are inclined to increase credit usage by how small minimum payments seem to be, neglecting to realize how they are setting themselves up for incurring debt that may take several years to clear. Any debt expert will recommend that you observe a simple lifestyle and stay away from buying anything impulsively. Achieving these goals primarily require that you leave credit cards back home and carry cash often instead.

Following a budget or debt management plan certainly helps. While it may look like a lot of work, getting into the habit of listing down both your income and purchases will aid you in visualizing where your money goes and which expenses to put first. Credit cards can be quite beneficial for as long as you are able to smartly manage your usage and stay on top of your finances at all times.

How to Get the Most From Your Credit Card

It is very important to manage your debt wisely. At one time I had several department store cards that had a 19% to 21.99% APR. Fortunately I kept small balances and paid them off as soon as I could.

After educating myself on how to be financially smart I got a new credit card and closed all of my other accounts. I have had this credit card for almost 20 years and it is the only card I really need. I’ll provide some tips for what to look for in a credit card and will provide some leads for those who are interested.

Tip # 1 Shop for a card that will give you the lowest interest rate. It may be possible to find a card with a set rate plus the prime rate. Your rate would adjust up or down depending on the current prime rate.

Tip #2 Look for a card that will serve as a credit line. This is very handy if you need to finance a small project such as a home improvement, car repair, or other project and you do not want to use the equity in your home.

Tip #3 Does the card you are looking for provide cash advances and if so what is the fee for that. I have a card with a credit line. When I need to finance a project I have the company wire money directly to my checking account. This saves me the cash advance fee.

Tip #4 Some companies provide checks with your statement. Many times you can finance a project for a lower fixed rate by using these checks.

Tip #5 Transfer balance from high interest credit cards to low interest credit cards. Often you will get an initial lower rate on balance transfers as credit companies want your business.

Tip #6 Once you have your new credit card you should close your other revolving accounts – with the exception of a gas card. Manage your new account wisely, make larger than minimum payments and avoid having a running balance of over 60% of the credit amount.

Tip #7 Companies want your business. Many cards offer cash back, bonus points, discounts and more on all of your purchases. I have a friend that makes all his monthly purchases via his credit card and he earns $200 – $400 per month cash back. He does make it a practice to pay his balance in full monthly.

In today’s market it is very difficult to obtain personal loans even to consolidate debt. Shopping for a credit line is a good alternative to consolidate debts and finance small projects or businesses. Companies will automatically increase your line every so many months if they see that you are managing it properly.

Getting the Most From Corporate Credit

Corporate credit is important for every business to have. Those huge corporations out there we are all familiar with rely upon it. The diner at the corner where you go for coffee does as well. It doesn’t matter the size of the business or what you sell, corporate credit can help you be on your way to obtaining more.

The sky is the limit when it comes to the growth of any business. However, there can be barriers and road blocks along the way you have to contend with. One of them is often the capital to engage in expansion or taking on a huge project. Yet you know if you do so then you will be more profitable and successful than before.

The use of corporate credit can help you to do just that. It can allow you to take those calculated risks that will make your business prosperous. You don’t want to be operating at the same level five years from now as you are currently. However, the saying that it takes money to make money is very true.

When you have such credit allocated to you though you need to use it wisely. Don’t use it for things you don’t really need. As with your personal credit there will be interest added. Therefore you will be required to repay more than you borrowed from the lender. It doesn’t make sense to do this when you don’t have to.

Also, get yourself out of the habit of paying only the balance that is due each month. A business can become too comfortable that way. Yet it allows the balance on that debt to remain over you for a very long stretch of time. Pay off the debt you have with your business credit as soon as you.

This way you will have more of it readily available when you need it. You will also pay less in interest over the course of time. You want to make sure you are seen in the eyes of the lender as someone very responsible with corporate credit. Right now you may only have a line of credit and a business credit card with small limits attached. However, down the road you will want to be able to access all you need without worrying about them turning you down.

It does take time to build up this type of credit. It isn’t something that will take place for you in a short period of time. However, if you have any type of business in place you need start getting this type of credit into place. You may be rejected several times before you find a good match.