Drug testing

Pitfalls of the Credit Industry

The credit industry if rife with pitfalls. If you have ever owned a credit card you probably already have learned this the hard way. If you have not owned a credit card previously you should definitely learn all you can about these convenient little suckers (literally) before you commit to any contract.

While not all credit cards are the same many do have similar things in common. For instance they will all charge you interest on your purchases. The only difference there is the amount of interest and how long after you make your purchase that you begin getting charged the interest.

Most people assume that they will not be charged interest for at least a month. This is called the grace period. The thing is that not all credit cards have the same length of grace period. Some companies have 15-day grace periods and others have none at all. This is the kind of thing that you need to find out before you ever make a charge on your card.

When you apply for a credit card you may be offered a lower interest rate. This "introductory rate," as it is called, is most likely only temporary. Once you have owned the card for a few months your interest rate will go up substantially. And the thing is that credit card companies can change their interest rates whenever they feel like it. Did you know that? It's true.

There is a clause in most credit card contracts that allow for the lender to up their interest rates at any time as long as they give you 15 days notice. No matter what rate is quoted in your contract they have this right.

One of the common myths people succumb to when using their credit card is the belief that paying of your balance every month is a good thing. Well, surprise, it's not. People who do not carry a balance on their cards are considered to be "deadbeats/" That's right the responsible, conscientious people are the bad guys. Creditors don't like them because by paying off their balance all of the time they are not letting the lenders make any money off of them. The interest is why they give you credit in the first place, that is their bread and butter. If you were not paying interest why would they want to bother with you?

If you are a deadbeat there is a better chance of your credit card company raising your interest rate or even eliminating your grace period. You might even begin to be charged annual fees for your card. Credit is not free after all.

Credit cards are a great tool to have at your disposal. They can help you get out of a jam quickly and easily, but don't let yourself get carried away by the convenience that they offer. Try to keep your credit card spending to a minimum and you will find in the end you are much better off.

Martin Lukac, represents, #1 Loans USA, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more: http://www.1LoansUSA.com

limousine chicago service
In The News:

Student Credit Cards 101

If you're a college student, you probably already have a... Read More

Dont Dig Your Own Pit

If you want to enjoy your life out of spending,... Read More

How To Repair Your Credit Report

A credit report is run on a buyer when he... Read More

Credit Card Expenses Are Killing Your Budget!

Do you know the costs associated with your credit card?... Read More

What Is a FICO Score and How Do I Make It Work for Me?

Whether or not you receive a loan and what interest... Read More

Our World Of Credit Cards! Which One Is Right For You

There are not many of us who do not have... Read More

Credit Education

Having credit education is like knowing how to read. It... Read More

Credit Card Companies Are Out for Your Money

You're probably thinking "Tell me something I don't know" but... Read More

The Right Way To Credit Repair

If you have a bad credit rating, then you might... Read More

Useful Tips on Borrowing Money

Here are some useful tips on borrowing money. Borrowing money... Read More

Finding the Right Credit Card

There are so many credit cards out there to choose... Read More

New Law Provides Free Annual Credit Report

As of Thursday, December 1, 2004, one-third of Americans will... Read More

Credit Repair, How To

Credit repair, is in a word, vital to reestablishing your... Read More

Get Your Credit Score To Soar In The Twinkling of An Eye

Ever wonder how a creditor decides whether to grant you... Read More

How To Start A Second SEPERATE Credit File!

Your personal credit file is separated from those with the... Read More

Free Credit Reports - How to Maintain Your Credit Profile

Maintaining your Credit ProfileEvery consumer should be maintaining their credit... Read More

Stop Struggling Because Of Poor Credit And Improve Credit Rating Now

Did you apply for a personal loan only to be... Read More

Credit Cards and How To Choose Them:

It may seem like a simple question but its important... Read More

Credit Cards or Store Cards - Which Is Better?

Introduction In this article, a presentation is made of the... Read More

Credit Card Security Advice

Which of the following is the biggest threat to your... Read More

What Are the Most Common Ways to Commit Identity Theft or Fraud?

It's the number one source of consumer complaints at the... Read More

Why Your Credit Score is Important

Your credit score can either haunt you or reward you.... Read More

Are you paying higher interest on your credit cards than you think?

Many credit card holders sign up for a credit account... Read More

Choosing a Credit Counseling Company

If you have considered credit counseling as an option to... Read More

Its Your Credit - Take Care of It!

Thanks to the Fair and Accurate Credit Act, American consumers... Read More

solar led parking lot lights street light gallery Pete's produce ..