ComputerHunter.org |
|
|
|||
|
 |
Borrowing on a Credit Card
One of the easiest ways to borrow money of a financial institute is to use a Credit Card, available from all banks, building societies, and other financial organisations. The choices available are enormous, with a wide variety of interest charges, annual charges, loyalty schemes, and bonus points available. However there are two broad areas that you should look at: Annual Interest Rate Firstly if you do not intend to pay off your Credit Card bill at the end of each month, then you should look at the Annual Interest Rate (APR), this rate is typically between 13-17% at the moment, and you should be looking for a card that offers as low an interest rate as possible. You should also bear in mind that you are charged much higher rates of interest than other forms of borrowing money, so if you do not intend to pay of your bills for a long period of time, then you should seriously consider a different form of loan that is less expensive. Extra Benefits On the other hand if you do intend to pay off you credit card bill at the end of each month, then you should be more interested in the loyalty schemes that are on offer. These vary from being awarded points every time you purchase something (these points can than me used to purchased gifts or air miles etc), to simply being given 'Cashback' on everything you buy (typically 0.5%-1% of your purchase). You should also look at the level of service that your card company offers. They are obliged under law to offer certain protection to the consumer, but often they will increase this protection with other guarantees. Some offer extended warranties on electrical goods, extra travel insurance when you are on holiday, accidental damage insurance for any goods you buy, and even free commission on cash withdrawals when abroad. Also some companies charge an annual fee for using their card (especially business credit card accounts), so these fees should be weighed up against the cards benefits. Even if you usually do pay off your credit card bills at the end of each month, when you open a account you may be offered 6 months interest free credit. This is often an excellent way of saving money as you are basically given an interest free loan for 6 months. It is even more useful if you are allowed to transfer some credit card debt from a different company into the interest free offer. However there is a danger of becoming trapped in a bad debit cycle here, transferring your debt from card to card until it is completely unmanageable. The best advice is to make sure you always have enough money in the bank, or in a savings account, to pay off your debt when you are taking advantage of the interest free credit period. That way you benefit from earning interest on your savings in your bank, but as soon as the interest free credit period has expired, you can pay the entire bill off without being stung for high interest charges. So to summarize If you are not paying off your monthly credit card bills, look for a card that offers a low interest rate If you are paying off your monthly credit card bills, looking for additional card benefits Interest free credit periods are good news for saving money, but beware of being caught in a debt spiral Credit Cards are an expensive way of obtaining a loan or borrowing money, and you should investigate other cheaper forms if you intend to borrow money in the medium to long term. Alastair Taylor runs a website that tries to give the consumer the truth about how to save money on Financial matters as well as home improvement. Visit Whatprice to saves yourself time and money.
Google News - Top Stories
|
|
|
|
RELATED ARTICLES
Dont Dig Your Own Pit If you want to enjoy your life out of spending, enjoy if you have your own resources and money. What Does Your Credit Score Tell You? When you apply for a loan or a mortgage, the first thing the lender does is to check your credit score. Based on your credit score, the lender decides the amount of finance you are eligible for and the interest rate at which you will be charged. So what is this credit score and how does it influence your capacity to take fresh credit? Credit and Loan Help for Mortgage Loans Mortgage loans are some of the most difficult loans to receive if you have bad credit because lenders focus heavily on your credit score and history of making payments on time. However, there is credit and loan help for individuals interested in home mortgage loans. Save Money and Lower your Payments by Improving or Repairing Your Credit Having a better credit score not only represents easier access to money from lending institutions, but more importantly represents instant money in your pocket. 5 Surefire Ways To Eliminate Credit Card Debt Do you have enormous credit card debt? You are certainly not alone. According to research, the average family in the United States has $7000 in credit card debt and pays about $1000 in interest each year! Throw in a late payment or two, or an over-the-limit charge, and that number skyrockets. Imagine what you could do with that $1000 if it weren't being spent on interest. How Your Credit Rating Affects You, and How to Check It You might not know it, but every time you take out any kind of loan or credit or pay something back, it gets counted on your credit rating. Who keeps a record on you will vary according to where you live, but the big three credit reference agencies are Experian, Equifax and Trans Union. They will provide your credit rating to any company that is thinking of lending you money. Stop Struggling Because Of Poor Credit And Improve Credit Rating Now Did you apply for a personal loan only to be turned down by a bank or lending institution? Like most people there is always a need to borrow money to buy a car or to renovate a home or even to get a student loan. There are many reasons why people need a loan and lenders turn people down from a loan application based on ones credit rating and credit score. Fortunately there is a way to resolve this situation by obtaining a credit report and checking to see if there are any inaccuracies or items that should not be in the credit report. By cleaning ones credit report it begins the process towards obtaining credit and even better interest rates on loans. Warning: Todays Non Profit Credit Counselors Are Yesterdays Bill Collectors! Here's a dirty secret, today's "non profit credit counselors" are often just front organizations paid lucrative commissions by creditors to keep consumers from declaring bankruptcy! Practical Suggestions for Protecting Yourself From Identity Theft It's no surprise that thousands of Americans are victimized by identity theft each year. Last year more than 9,000,000 people were victims of identity theft amounting to some $45 billion dollars. Credit Repair Scam - How To Avoid Being A Statistic? A good credit history is critically important for the consumer. A bad credit will prevent you from getting a business loan, owning a home, or even a job. Promises to "fix" your credit are always made by credit consolidation companies, but they are seldom true. Here are some of the important tips to avoid scams: Cash Advance ? How Does It Work? If you want a cash advance or a payday/paycheck loan, you usually get a personal check. Some companies use your bank account or credit card in addition to or instead of a check. This means that you have to write a check that is to be cashed or you have to agree to have an amount withdrawn from your bank account at a certain date in future (usually 14 days). After filling-in the agreement or contract you get a sum of money that is less than what you have agreed to pay. The sum is smaller because the difference is the "fee" for the loan service. Why would the company loan you money like this? Because loaning out money in this way and getting these "fees" really brings them a huge profit at your expense. Credit Card Traps: How To Spot Them On The Spot! They arrive in your mail - a conspicuous looking mail piece from some "official looking" bank claiming that you have been Pre-Approved for a Mastercard or VISA credit card. The Advantages of Credit Cards There are many evils associated with credit cards, but there are benefits that are hard to ignore. One benefit is having the credit card company act in your behalf to recover funds from a disputed transaction. Under the Fair Credit Billing Act the credit card company has to investigate the dispute and either take the charge off your bill or explain why it is correct. Even better, you don't have to pay the portion of the credit-card bill or related interest charges while the dispute is being investigated. What You Should Know About Credit Counseling Credit counseling is a free service that many people with money problems have turned to in the face of financial ruin. Credit counseling companies negotiate with your creditors to reach financial solutions that benefit both you and your creditors. Often they are able to lower your monthly payments, reduce high interest, and eliminate late charges. Bad Credit? No Credit? Yeah, Its a Problem. Many companies use the slogan "Bad Credit? No Credit? No Problem!" The truth is that it is in fact a problem and there is no easy way to correct it. It takes a lot of time and effort to obtain credit when you do not have any and even longer to fix bad credit. The first step to solving these credit problems is to understand what your credit score means. In doing this, you will have a better idea of how to fix it. Teaching Students To Keep Out Of Credit Card Debt - The Parents Role Parents have the full responsibility for their children and their education. It is up to parents to teach their children what's right and what's wrong, how to conduct themselves as good citizens, how to cross the road safely and generally protect themselves from harm. In fact, up until the time that child is an adult, the parents have responsibilities in every part of that child's life, right up until the time they are a college student. Harassment of People in Debt by Creditors Harassment Like It Or Not, You Have A Score To Settle! Part 1 Just when most people finish with school and can stop worrying about test scores, there's a new kind of scoring that enters the picture. It's called credit scoring. And, its impact on your financial future can mean more to you than a college degree. Credit Establishment 101 There will come a day when you need credit. You may want to buy a home or a car and your credit rating will become very important to help make these dreams come true. One of the first things you will need to learn is the basic principle of money management, especially the ability to repay your creditors on time within the 30-day grace period they establish for you. Most people secure credit cards as the first way to establish credit in High School or College. Upon getting the credit card, usually a low spending limit, the ability to repay the card in an orderly fashion will help you establish a positive credit rating with the major repositories. Stop Credit Card Offers You can stop receiving credit card offers in the mail! It's really easy to do - just phone 1-888-567-8688 and follow the prompts and provide the requested information including Social Security number, date of birth, etc.
|
|
|
|
|
