With The Right Credit Cards Information You Can Build Your Credit History!
To change your financial world you need good credit cards information. Certainly you have heard of credit cards, seen them used, and perhaps even used one yourself. But do you truly know what a credit is and what they are meant for? Let’s go over some basics:
Credit Card Basics
A credit card is, if you get literal, a piece of plastic that gives you access to an established line of credit. That is to say that if you have an open line of credit with a bank you can swipe your plastic credit card to make purchases and have those purchases paid for by the bank who has granted you credit in exchange for your promise to pay them back, probably with interest.
This is different than a debit card, where you have the money in your bank account and can access that money to pay for things by swiping your card. With a credit card you are borrowing the money. You can get a credit card that is good only at one store, such as Sears or Macys. Or, you can get a “universal” card, one that is good at many stores, like a Visa or Mastercard.
Why Credit Cards are Valuable
There are many reasons why credit cards are valuable, but here we will be brief and list the most important credit cards information and how a credit card works, just 5 of the many functions that credit cards serve:
- Credit cards let you buy things that you cannot yet afford, making payments in the future.
- Credit cards let you purchase things without having to carry cash around.
- Credit cards give you benefits for purchases, such as warranty extensions or cash back bonuses.
- Credit cards are convenient and, generally, safe.
- Credit cards help you to build your credit.
Important Credit Cards Information: How Cards Impact Your Credit
Credit cards can have a positive or negative impact on your credit. When you pay regularly on your credit card(s) you show that you are responsible with your finances. This results in a better credit score. However, if you do not pay your cards on time or you over-extend yourself then you can put negative items on your credit report, which give you “bad” credit or a lower credit score. What’s a credit score? Simply, it is a number created, using a specific formula, that many potential creditors use to estimate how good you are at paying back and managing your debt, and thus whether they want to extend you credit and at what interest rate.
Where You Can Get Credit Cards
You can apply for credit cards in many ways: live at a store, through the mail, at a kiosk during some event, or online. One of the best ways to get a credit card is through a website that allows you access to multiple cards, allowing you to choose the one that best fits your needs, such as www.creditcardideas.com.
Building Your Credit
According to the Federal Home Loan Mortgage Corporation Freddie Mac, having good credit provides a variety of advantages and is very important. Why? Because it impacts loan rates for items like buying a house or a car, it impacts your car and life insurance rates, it can impact whether you get a job or not, and even impact obtaining private student loans to let you go to school. So, while credit cards have many desirable functions on their own, it is imperative that you have credit cards information, that you are always aware of the impact that your credit card use is having on your credit profile and score.
Many people wonder about new credit card laws. The truth is that laws changed little that really impacts you, but it did make some changes to fees cards can charge. For example, now your card company can only charge you an over the limit fee if you agree to such a fee – don’t agree to it.
Resources:
Freddie Mac. http://www.freddiemac.com/homeownership/ready_to_buy/importance_of_good_credit.html
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