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Top 10 Credit Card Tips (Page 1 of 2)
The credit card has been one of the most popular inventions of this time, helping consumers acquire convenience and boosting consumer spending for the economy. However, credit cards have been exploited for the wrong reasons, and thus have become the main source of debt for many consumers. Thus, in order for credit cards to be beneficial, consumers would need to be well-informed on the proper usage of credit cards.
1. Pay off your outstanding balances each month
Rolling over outstanding balances will only result in snowballing debt. Credit card interest rates are amongst the highest as compared to other types of debt. With this, your cost of expenses is increased without any apparent benefit to you.
2. Transfer your high interest credit card balances to 0% APR credit cards
If your outstanding credit card balances are high, you should work out a balance transfer to other credit cards that offer introductory 0% APRs. This way, you can stagger monthly payments and pay off your credit card debt gradually without incurring additional interests.
3. Cut up high interest credit cards
Its time you evaluate your credit card interests, and cut up those that charge high interest rates, no matter how wonderful their reward programs at. At the end of the day, the rewards attained will not equate the additional interests incurred.
4. Be careful with your credit limit
As your credit limit may be 2 or 3 times greater than your monthly income, it can be fairly easy for you to overspend. Thus, when using your credit card, be sure that you dont charge more than what you can truly afford.
5. Check your credit card statements
Contrary to what you may believe, banks and credit card companies may make errors in their billing statements to you. Thus, it is best to have a habit of cross checking your credit card charges before making payment.
6. Automatic transfer payments
If your credit card is being used for grocery shopping, you can always arrange for an auto-payment with your bank to ensure that you always pay on time. However, you would still need to cross-check your credit card statements and make a complaint if you find any discrepancies.
7. No credit cards when window shopping
Do you have bad control over your shopping habits? If you are on a window shopping spree, it may be advisable not be bring your credit card. How else would you buy anything if you are out of cash with no credit cards? This is a good way to stop yourself from impulse purchases.
8. Be aware of your rights
Consumers are entitled to rights when it comes to making purchases. The government has set forth many guidelines for retailers in order to protect consumers. Thus, if you have paid for something which did not get sent to you, or if you purchase something that turns out to be faulty, you have every right to demand for a refund or make a report to the Federal Trade Commission.
Myths on Payday Loans
What are you going to do if someone knocks on your door and hands you a couple of unexpected bills to pay? What if you have already used all of your money to pay for your monthly expenses? In reality, this incident happens a lot. People may have planned their budget well, but there are some unexpected expenses that usually catch them off guard. When this happens, people result to making payday loans.
In the UK, the most popular type of loan is referred to as payday loans. It is an easy and short-term loan used to fund unexpected expenses. People usually have a bad perception with payday loans. But there is absolutely nothing wrong with making payday loans. No matter how hard you try to secure yourself financially, things like this may still happen from time to time. Here are some of the common myths with regard to payday loans.
First myth – payday loans are availed only by poor people with bad credit. This is not entirely true. Although most people who avail payday loans belong to the lower echelons of society, payday loans are also offered to average and rich people. In fact, there are a number of average to rich citizens who are applying for payday loans from time to time. This is used to cover up for their miscalculations during budget planning and to pay for fees that were not anticipated. It is also a myth that payday loans are availed by people with poor credit. Often times, people would have reached their credit limits at the end of the month. But it is also at the end of the month where unexpected expenses arise. Thus, these people result to availing payday loans.
Second myth – payday loans have outrageously high interest rates. The myth regarding inflated interest rates is very much false! Actually, UK payday loans have slightly higher interest rates than regular types of loan. It should be noted, however, that payday loans are intended to be short-term loans. Payday loans are to be paid as soon as possible. Thus, the accumulated interest is not really very high. On the other hand, regular loans are intended to be long term. By the time when people are ready to pay their loan, the accumulated interest is already very high.
Third and last myth – payday loans are peoples last resort. This third myth tells us that only people who have run out of options choose to avail payday loans. This is a very big misconception. Although it is those types of people who usually avail payday loans, this type of loan does not only cater to them. It would actually save you a lot of time, effort, and resources if you would avail payday loans the moment you need them and not wait until you have exhausted all of your resources and options before doing so. Not everyone who applies for payday loans is desperate or free of any other option. In actuality, many people simply want to have more available money so that they can be ready for emergencies.