Credit card

We get a lot of emails from people who are really up to their eyeballs in debt. One question we get asked time and time again is, "Should we get a personal loan to pay off our credit cards?" Each situation is different. The reason why people ask us this question is very simple. On a credit card you are paying 20% plus a year on interest, where on a bank loan you are paying 10% a year interest. The difference while only 10% is huge in dollar terms over a year and it can mean the difference in paying down an amount of debt in a much quicker time. The answer seems pretty easy right; well there are many shades of grey in the answer. However there are a couple of questions you should ask yourself. Only when you can answer YES to each question should you think about getting a personal loan to pay off your credit card. 1. Once the credit cards are paid off will I cancel them? There is no use in paying off your credit cards in full only to start at a zero dollar balance and st...

Allison Tait is the writer of a great book called, Credit Card Stressbusters. This book is an in depth look at why people use and love their credit cards. Plus the book deals with how to lose your credit card and how to pay off the debt. We are lucky to have a great interview with her this month. OK Allison, maybe you could tell us a bit about your background and what you are doing now? I'm a journalist with more than 20 years' experience. For the past eight years, I've specialised in writing about personal finance for ninemsn Money and MSN NZ and, more recently, Madison and news.com.au. I'm very good at asking questions! Allison you have written a book called Credit Card Stressbusters. In there you talk about all the reasons why people should cut up their card. But if you had to narrow it down to just the top three reasons why people shouldn't get a credit card, what would they be? In the book, I suggest that people cut up their cards because the implicatio...

In the economic environment of today, although you may not need to use it, having good credit is vital to survival. It positions you as a fiscally responsible person and can help ensure that: You get better rates on your mortgage; You get better rates on your car loan; Your security deposit, if your utility company requires it at all, is as low as possible; Your potential landlord favors you over someone with a bad credit rating; and Your potential boss favours you over a candidate with a bad credit rating. That being said, you should always keep in mind that the ability to obtain credit is a privilege not to be abused. It takes a long time to build up a good credit record but your reputation can be destroyed in a very short time. Do not borrow money that you cannot afford to repay. How do you get your first credit card? There is a slow way to get your first card fast. (And get a good credit rating) And there is a quick way to get your first card fast. (You only need some ...

A credit card is a small plastic card issued to the consumer by a financial institution such as a bank or credit union. The card issuer creates a revolving account with a line of credit to the consumer. The cardholders can purchase goods and services or receive a cash advance, until they have reached their predetermined credit limit. The merchant who accepts credit card payments receives the money from the bank issuing the card. The cardholder eventually repays the bank through regular monthly payments. If the entire balance is not paid in full, the issuer usually charges interest on the unpaid portion. Credit cards can be an extremely valuable tool if used correctly. However, there are also risks for those who lack self-discipline for the debt they cannot repay. Although when used responsibly and with the correct intentions, the card can provide significant benefits. Here are some of the attributes of owning a credit card: Convenience The credit card is a flexible payment tool a...

These represent the guidelines I use when picking a card. Despite the fact that there are various ways to handle it, I feel these guidelines have, and are going to continue, to guide me in the right direction. It's important to go out and look for it. How many great things have just arrived on your front patio? For me that would be none. I can think of absolutely nothing worth while which I haven't been required to go out and get on my own. And it is no different in the matter of credit card offers. Often the card offers that come in the mail are just that; things that land on your front patio. Not to imply these kinds of card offers are lousy and that they should not be checked out. Merely know that these kinds of "You've Been Pre-Approved" mailings are often more of an ad. The card providers obtain records from the credit bureaus and, in case you satisfy their standards, use that to deliver you their offers. Where can you look in order to find the deals? I...

Some people fear having credit cards because of potential problems that can occur. However, when used properly, they are a great financial tool. If you need to buy something that you don't have the cash for or don't want to spend the cash on immediately, you can use a credit card. In this article, you will discover some excellent advice about credit cards. Always check the fine print. If you have a pre-approved credit offer, or if someone claims they can assist you in getting a card, gather all the details first. Find out the exact interest rate and the time that rate is in effect for your card. You should also ensure you have a complete understanding of any fees as well as grace periods associated with the credit card. Credit card companies calculate their minimum payments so that you can pay a small amount and let them earn a large amount of interest from you over time. Always try to make payments larger than the stated minimum. Paying off your balance faster helps you av...

Long before we are old enough to carry credit cards ourselves, advertisers make sure we know about the power of plastic: "It's everywhere you want to be." "It pays to Discover." "What's in your wallet?" While using an ad campaign to choose a card is a terrible idea, the slogans have one thing right: A credit card can be a powerful thing. For teens and 20-somethings looking to pick a first card, taking the time to choose carefully can save money and offer a boost in establishing and building a credit history. An excellent credit score will be helpful when you start to think about buying a car or getting a mortgage. Even if you do not plan to take out a large loan in the near future, your credit information can be a factor in renting an apartment, obtaining a membership at a club or getting hired for certain jobs. Lenders use credit reports to determine how risky it is to give a borrower - that is, you - a loan. All in all, the lender just want...