Finance: Credit Cards - Friend or Foe?

Credit Cards - Friend or Foe?

Written by Greg Smith

At one time or another most all of us apply for and get more credit cards than we need. We feel like we have to be able to purchase almost any type of item at anytime, whether we can really afford it or not. Having several credit cards allows one to buy products and services at will. Is that a good thing or bad? Learn more at http://www.apply-credit-cards.com/

There are many companies offering credit cards and loans online, but all may not fit everyone's needs. A credit card is a great financial tool that needs to be used wisely and cautiously. Never allow yourself to get so far behind on your creditcard balance totals that you can only afford to pay repparttar minimum payment amount or small amounts each month towards repparttar 141523 reduction of your debt. That is repparttar 141524 interest rate trap. Once your cornered on paying minimum amounts, you will most likely be stuck there for years if not for a lifetime.

However, having credit cards can be a positive, productive personal finance tool and does not have to be a negative to your credit status or your lifestyle. A couple of key points:

• Convenient to use and carry • Offers valuable consumer protections • Use it with caution and good judgement • Pay off your monthly bill in full each month, • which eliminates interest charges

Having credit cards is a priviledge and huge personal responsibility. You must utilize and manage your credit rating wisely and carefully at all times. The saying ' if you can't afford to pay cash, then you can't afford it ' is a true statement and we should all take heed to its warning. Using creditcards in this manner makes them your friend and not your foe. Having credit cards in your name is not bad just take care not to go into debt for more than can repay. Doing so will only serve to damage your credit rating and it can and will create larger credit problems for yourself into repparttar 141525 future that may be difficult or impossible to repair.

Guide to Credit Card Terms

Written by John Mussi

Listed below is a useful guide to credit card terms. It is a list of definitions of credit card terms that may or may not be familiar to you.

Annual Fee

Various card issuers charge an annual fee, which can help offset costs that issuers incur in maintaining accounts and providing services.

Annual Percentage Rate (APR) Stands for ‘annual percentage rate'. A figure, expressed as a percentage, which incorporates repparttar interest charged upon repparttar 141522 credit card as well as any additional fees.

Association for Payment Clearing Services (APACS)

The banking industry body that oversees money transmission and payment clearing activities in repparttar 141523 UK.

Automated Teller Machine (ATM)

Another term for a cash machine.

Balance

The total amount that you owe your credit card provider and includes charges such as interest and fees.

Balance Transfer Rate

The interest rate that will be charged on any balance transferred from a previous credit card onto a new one.

Cash Advance

Withdrawing money from a cash machine using your credit card. There is usually a charge imposed for this service. A cash advance is different from a withdrawal you make with your ATM card.

Charge Card

This is a type of credit card often favoured by businesses on which repparttar 141524 balance must be paid off in full each month.

Credit Limit

This is repparttar 141525 maximum amount you can borrow using your card.

Credit History

A record of how you have paid accounts in repparttar 141526 past; used as a guide to determine whether you're likely to pay accounts on time in repparttar 141527 future.

Credit Reference Agency Organisations that specialise in providing credit reports that assess an individual or business's credit risk.

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