| There definitely isn't a shortage of offers of credit cards online, in the mail, and anywhere else possible. However, it can become a hard task to maintain your credit card, and it can prove even harder to get the right credit card you need. High Street stores are all too willing to give you a discount on the day if you sign up for one of their cards, and lets face it, that extra 10% is usually tempting whoever you are. Nonetheless before you know it you will be facing yet another monthly credit card bill. The biggest problem with credit cards today is that people believe that they aren't really spending money. There isn't anything missing from our wallets or purses, so it becomes very easy to pull out the card whenever and wherever we need it. Even if you pay the minimum payment by the due date, your credit card balance is barely affected. You may not make things worse by incurring late fees, but your debt levels remain unaltered unless you can actually pay down the balance. It can be a healthy exercise to calculate how long it will take you to pay off your credit card balance totally if you do not add one more thing to your account. It may surprise you, how many years you will be enslaved to your credit card, unless of course, you are enjoying the benefits of an interest free period. Most of the major credit cards are accepted all over the world so you only need one, or at most two. This is a much easier way to keep a check on expenditure than having to sort out six or more credit cards as many people do. Another credit card temptation that can get you in a lot of trouble is the ability to borrow cash on your card. This is known as a cash advance and it enables you to withdraw cash from your card via an ATM. However, this form of borrowing is usually charged at high interest, calculated daily, and is ultimately a very expensive way to borrow. It can be too easy to create a level of debt that is too high for you to service. If you are going through a difficult time, withdrawing money from your credit card can seem a godsend. Unfortunately, your debt can climb dramatically over the course of a few months and with exorbitant interest rates you can find yourself in real trouble. It is also a good idea to stick to a low cost, no frills credit card that offers low interest and no annual fee. If you make regular visits to the ATM it soon mounts up and your debt will soar over just a few months. The interest can be as high as 24% so this really should be avoided. It clearly makes sense to avoid the temptations of rewards and bonuses and opt for a no frills card with low interest and no annual fee. When trying to establish a good credit history, you can do so by using a credit card correctly. Your payments have to be on time. It is important that your credit rating stays healthy, especially in the case that you need to buy something big, like a car. During these times, you will be rewarded for having good credit history. As much as some of us love them, shopping sprees aren't needed. Neither are cash advances and late payments. These all go into your credit rating, so if you are looking to use your credit card to build up good credit, only spend what you know you can afford to pay back each month. |
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