| Credit cards have moved on to become almost a | | | | currencies end up being a bit expensive too (not too |
| necessity today. It's rare to find people having no credit | | | | much though). |
| card. In fact most of the people have more than one | | | | Develop good spending habits by refraining from using |
| credit card. However, possessing a credit card is not | | | | your credit card all the time. Use cash if you seem to |
| enough. You also need to understand how to use it | | | | be approaching your credit limit on the card. In fact try |
| properly. Sometimes credit cards can become a pain | | | | not to breach 70% mark on the credit limit. This should |
| e.g. when you get into a debt trap. | | | | act as a warning against credit card debt trap. |
| The first thing to understand is the fact that credit card | | | | Also, it's imperative that you understand the |
| is not free money or a goldmine that you just | | | | importance of credit ratings. This is the rating which |
| discovered. It's simply a loan that you are taking from a | | | | keeps developing in the background as you use your |
| bank or a financial institution and you need to pay it | | | | credit card. If you don't pay on time you get negative |
| back soon. You must understand that if you don't pay | | | | points for it and if you pay regularly and do not |
| this amount back in time you will have to pay an | | | | overspend, you get positive points. This rating is |
| interest on the amount. This interest is calculated using | | | | developed by various credit bureaus on the basis of |
| APR (annual percentage rate) i.e. the interest rate | | | | information received from credit card companies and |
| charged on the outstanding balance on your credit | | | | is available to all other financial institutions and banks on |
| card account. This is calculated and applied on a | | | | request. So, when you apply for a mortgage or a car |
| monthly basis. APR is one of the key features one | | | | loan or for that matter a new credit card, the bank |
| considers when choosing a credit card. | | | | institution gets your credit rating from the credit bureau |
| As soon as you receive your credit card, read through | | | | as the first thing. If you have a good rating, the things |
| all the instructions provided on it. Thing like protection | | | | will go smoothly for you and if you have a bad rating |
| against fraud, reporting loss of credit card, reporting | | | | then you might be denied that mortgage that you |
| incorrect charges, fees & other charges, contact | | | | were eagerly looking forward to. Thus this rating is |
| information, change of address instructions etc are all | | | | used to ascertain your credibility and you must try and |
| on there. You might like to keep a note of contact | | | | maintain a good credit rating always. In fact, credit |
| numbers separate from your credit card especially the | | | | cards are a good way of developing a good credit |
| one for reporting lost credit card. Do not leave | | | | rating. |
| important things like signing on the back of credit card | | | | A proper understanding of credit cards will thus help |
| for later. | | | | you in using them properly and to the best of your |
| Take note of various types of fee/charges etc that | | | | interests. |
| you can incur. You will find that the fee/commission on | | | | is a free online credit cards reviewand application |
| using some of the features is very restrictive e.g. | | | | website. We offer credit cards selection from |
| withdrawing cash using credit cards is a sure no-no | | | | visa,master cards, discover, american express and |
| unless you are in a very difficult situation and that is the | | | | many others. We have quite some categories and |
| only option left before you. There is hefty charge/fee | | | | hundreds of credit cards selection to fit your need. |
| on cash withdrawals. Similarly, transactions in other | | | | |