What should you know about the business practices of credit card companies? How do credit card companies change credit card limits? What reasons do credit card companies give for changing credit card limits? How can you protect yourself when using a credit card? Learn more here about credit cards and your personal finance.
Checking Your Credit History
Checking your credit history can be one of the easiest ways to stay on top of your personal finances. We use credit almost every day for all kinds of financial transactions. Having bad credit can hinder you ability to buy a house, refinance it at the best terms, purchase a car. Good credit gives you access to the best interest rates and terms on all sorts of loans, from credit cards to mortgages. Take responsibility to check your credit report on a yearly basis from one of the three major credit reporting bureaus.
Credit Card Versus Debit Card
Credit cards allow you to borrow up to your credit limit, which usually exceeds the amount of cash in your checking account. You're not actually borrowing real dollars, you're borrowing the credit card company's money. In many cases, banks offer credit cards, so you're borrowing the bank's money. Cash debit cards are a cross between credit cards and checking accounts. You can pay for your goods and services with the cash debit card just as you would a credit card. But instead of borrowing the credit card company's money, the money comes directly from your checking account.
Credit History, Credit Score Determine Best Credit Card Deals
Your credit history and credit score determines the best credit card deals a consumer can get. Lenders treat your credit report and credit history as a running score of your financial life, and use that to decide whether you're worth the risk for a credit card, car loan or mortgage. Clean up your credit score and build a good credit history in order to get the best credit card deals for you.
Credit Report Contains Liens, Bankruptcies And More
What can you find in your credit report? A credit report lists both good and bad credit items such as credit cards, liens and bankruptcies. Learn what bad credit items are and how to fix them on your credit report. If you don't understand something on your credit report an accountant may be able to help you.
Frequently Asked Credit Card Debt Questions
Frequently asked questions about credit cards, debt, credit history and credit score.
Improve Credit History With Personal Finance Tips
To improve your credit history you need to start by knowing where you stand -- order your credit report from each of the three credit reporting bureaus. After that, to improve your credit history you'll want to dispute any incorrect information and manage how you use credit cards. Finally, if you've been divorced make sure you're not responsible for debts of your former spouse.
Nine Reasons To Pay Off Your Credit Card Debt
While paying the minimum amount owed each month, on time, shouldn't damage your credit score, there are good reasons to pay off your credit card debts, not to mention your other loans like auto loans and school loans, and wipe your credit slate clean. Stop paying interest. Keep credit open in case of an emergency. Improve your credit to be able to receive the best credit card offers.
How To Pay Down Your Credit Card Debt
When you're ready to get rid of credit card debt, making smart choices can help you eliminate your balance faster. First, stop adding to the debt, and wait until you have the cash to make any purchases. When it comes to paying off your credit card debt, the smartest move you can make it to pay the debt carrying the highest interest rate first.
Take Charge Of Your Credit Score
Many people who are in debt end up getting suckered by credit repair scams that promise vastly improved credit scores (for a large upfront fee) but can't deliver without doing something illegal, like setting up a fake social security number. Others end up working with a credit consolidation company, but are unaware that being in a debt management program can torpedo their credit scores. There are endless reasons why someone might fall into financial difficulties, but there are only a few ways you can repair your credit history and credit score - none of which include hiring someone else to do it for you.
Making Your Money Work Harder For You
A homeowner wonders if it might be beneficial to refinance their mortgage loan without the home equity loan -- and transfer the home equity loan balance to a credit card so it can be paid off quicker. But it may be possible to keep the original home equity loan and just refinance the mortgage, thus not risking a high credit card balance and interest rate.