Credit Card Education is Important

Every year, millions of people are happy to be issued a credit card for any reason. Millions of people are surprised to find themselves over their heads very quickly because of credit cards and the debts they have amassed. One of the things that most people are slow to realize is that with a poor education on credit cards and the impact they have on their financial health, they made critical mistakes.

Being financially healthy is something that happens when a combination of things are done. A person that is financially healthy has more assets than debts and unfortunately, credit card debt is one of the largest and most common debt that people carry in today’s society. Until people understands how to their credit card debt affects them and make better decisions, financial health is not something easily achievable. Until a person has their credit card debt under control, financial freedom is something that will be hard to achieve.

There are many things that should be discussed when it comes to getting a credit card. Those that are young or trying to establish credit should have a basic understanding of credit cards and what behaviors they should have. Those that have become overwhelmed with credit card debt or have credit cards have many different tips to share.

The Tips

Compare: Before choosing a credit card company, take the time to compare different companies. This is very important. Not all credit card companies are alike and the things they offer are not alike. There are some credit card companies that have fees that others don’t. The interest rates that are offered are not the same across the board. Although many companies look at an applicant’s credit score to determine interest rates, they use different formulas to finalize those percentages.

Rather than go with the first company that offers a card, it’s more beneficial to shop around.

Rewards Programs: Some people have one specific credit card to pay for their purchases for the entire month. They often do this to take advantage of the rewards program that particular card offers. Those that have this idea should research different reward programs before they sign up for the card.

Paying the Balance: Unfortunately, some people think a credit card gives them additional money to spend. This is untrue. The opposite is true. Those that have a credit card and use it regularly are more likely to spend more money than they can afford. That is why it’s very important for people to know how much they can afford to charge on any credit card. That has nothing to do with the limit but how much can be paid at the end of the month when the payment is due.

Those that have credit cards should ideally try and pay the balance in full each month. This is important because interest in accrued on any balance that is left on the card. With the constant interest being accrued, it’s hard to pay the full balance of a credit card when done in installments. Instead of paying the minimum due, people should try to pay the full balance each billing period. That is why it’s important for people to know how much they can charge each billing period.

Pay on Time: When people miss the payment day for a credit card, they are often penalized. They may lose a great interest rate or have to pay an additional fee. One thing they don’t realize is that when they pay their credit card bill late, it is reported to the credit bureaus. This has a direct result on a person’s credit score. If paying bills late is a regular occurrence, having the bills drafted from a checking or saving account may be best.

There are hundreds of different things that can be said about credit cards and how to manage the responsibilities of them. When a person has the proper information, they are able to better manage. Financial health is important to everyone and should be a priority. Credit cards are a part of a person’s financial health and when they are abused, the results on a person’s financial health can be devastating.

Dec. 11 13'
They will likely show as paid deucnqleniies unless you take action. Credit repair should get these and all other negative marks off your bureau. Usually companies charge hundreds of dollars to simply pull your credit and send correctly worded dispute letters—this is the key…..people will tell you that you can do this yourself for free but the truth of the matter is that the credit bureaus will throw your letters away or simply reject them. There is an easy to use online kit that will deliver the results you want available for just $19.95 at the source website. A similar kit is being sold via infomercials and radio talk shows for seventy dollars more but they try to solicit you repeatedly for other services after the fact.
May. 26 14'

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