Although some choose to rush into getting a credit card, they normally do so without being aware of the costs. A lot of credit cards out there come with hidden costs and charges, and you should always be aware of this before you apply. In most cases, these fees and charges won’t get noticed by the user until it is too late.
Credit card holders who aren’t aware of any hidden costs could easily end up paying possibly thousands of dollars at the end of the year - and not even realize it. If you have a reward credit card, your rewards could easily be destroyed by these hidden costs. Although some credit card users may realize it, there are many out there who aren’t aware of these costs at all.
The first factor for hidden costs is found in the grace period. The grace period is the extra time you have to pay your bill without having extra fees added to your bill. Even though this can be great for paying your bill, it can quickly lead to a pitfall if you let it. To avoid any type of costs or hidden fees, you should pay your bill as soon as it arrives. This way, you won’t have to worry about your grace period or the interest that can accrue from letting your bill get later and later.
The late fee is another factor with credit cards that is often overlooked by credit card users. Late fees are common with credit cards, although their potential for costs is often overlooked. Some people choose to pay it and be done with it, unaware of the fact that these costs can indeed add up in no time at all. To be on the safe side, you should always know what the late charges are and how fast they can add up.
The easiest way to avoid any type of hidden fees or costs is to pay your bill on time - as soon as you receive your bill. You should also pay more than the minimum, as this helps to pay your bill off faster and ensure that you pay the bill and not just the interest. Paying your bill late is never a good thing, as it can easily destroy your credit report. If you continue to make late payments, your company or bank can increase your interest rates.
No matter what you do, you should always pay your credit card bill on time. Hidden fees and costs are out there - it’s up to you to avoid them. Credit card companies and banks won’t tell you what the hidden fees are, unless you ask them. To protect yourself and your credit - you should always be aware of the costs - and how to prevent them from happening to you.
You can find the best choice of credit cards and pre-paid cards at www.CreditCards.us (http://www.creditcards.us)
Tuesday, March 30, 2010
The importance of Average Credit Score in America
In the United States, more credit scores means higher opportunities. You are considered lucky if you obtain and maintain high credit scores compared to those who have incurred no credits at all. It is a popular belief that having high credit scores denotes to being fully responsible with handling your finances. Moreover, good credit scores also equates to keeping up your integrity. To sum it all, high credit score equals good reputation.
Who do not want to earn a good reputation? If you are most likely to apply for any credit program and you wish to see an “approved” mark on your application sheet, then you must avoid the following:
1. No Credit Score.
Having no credit score at all denotes that lending institutions will not have any basis on how you handle your finances even if you are good at it. The credit scores are lending institutions determinant to get you approved with your credit request since they cannot gauge your financial history through:
? Race and origin. Lending institutions will not approve your credit request because you are white or black or you are from the United States or from the European countries.
? Type of employment and salary. Even if you are a janitor and yet incurred high credit scores, then your loan application might be approved over a company manager who has zero credit score.
? Education. Whether or not you have obtained a college degree it does not matter, what matters is a high credit score.
Lending institutions cannot measure approval of your credit request into your religion, age and marital status. This is due to its being subjective. The Equal Credit Opportunity Act sees that the most objective determinant is through looking at credit scores.
Through credit scores, lending institutions will get familiar with your financial background. They will find out the previous and present loans you have, the down payments you have doled out, the interest rates you choose, and most importantly the payment scheme that you have established.
2. Low credit scores.
The average credit score in US is somewhere between 580 and 650. There are major institutions in the US who determines if you are suitable to be given credit. Equifax, Trans Union and Experian are major institutions who compute for borrower’s credit score. All three have their own distinct computing system yet still adheres with the national average credit score.
If your credit score falls below the standard credit score, then you are highly prone to seeing your credit applications with “disapproved” marks.
Having credit is not bad after all; it will look appalling if you have been immature on handling such matters. A credit card may be handy for most of the time especially when cash is not readily available. Additionally, others find credit cards safe to bring than stocking cash in your wallet.
Loans, on the other hand are equally important as credit cards especially for those individuals who aspire to have properties which they cannot immediately pay.
With the significance of having cash substitute in the form of credits, it is helpful to get good if not high credit scores. There is nothing wrong with getting high credit scores; all you need to do is be responsible in handling your finances. By doing so, credit will not be a nuisance but will serve as a great aid to you.
Like this article? The Importance of Average Credit Score in US
Who do not want to earn a good reputation? If you are most likely to apply for any credit program and you wish to see an “approved” mark on your application sheet, then you must avoid the following:
1. No Credit Score.
Having no credit score at all denotes that lending institutions will not have any basis on how you handle your finances even if you are good at it. The credit scores are lending institutions determinant to get you approved with your credit request since they cannot gauge your financial history through:
? Race and origin. Lending institutions will not approve your credit request because you are white or black or you are from the United States or from the European countries.
? Type of employment and salary. Even if you are a janitor and yet incurred high credit scores, then your loan application might be approved over a company manager who has zero credit score.
? Education. Whether or not you have obtained a college degree it does not matter, what matters is a high credit score.
Lending institutions cannot measure approval of your credit request into your religion, age and marital status. This is due to its being subjective. The Equal Credit Opportunity Act sees that the most objective determinant is through looking at credit scores.
Through credit scores, lending institutions will get familiar with your financial background. They will find out the previous and present loans you have, the down payments you have doled out, the interest rates you choose, and most importantly the payment scheme that you have established.
2. Low credit scores.
The average credit score in US is somewhere between 580 and 650. There are major institutions in the US who determines if you are suitable to be given credit. Equifax, Trans Union and Experian are major institutions who compute for borrower’s credit score. All three have their own distinct computing system yet still adheres with the national average credit score.
If your credit score falls below the standard credit score, then you are highly prone to seeing your credit applications with “disapproved” marks.
Having credit is not bad after all; it will look appalling if you have been immature on handling such matters. A credit card may be handy for most of the time especially when cash is not readily available. Additionally, others find credit cards safe to bring than stocking cash in your wallet.
Loans, on the other hand are equally important as credit cards especially for those individuals who aspire to have properties which they cannot immediately pay.
With the significance of having cash substitute in the form of credits, it is helpful to get good if not high credit scores. There is nothing wrong with getting high credit scores; all you need to do is be responsible in handling your finances. By doing so, credit will not be a nuisance but will serve as a great aid to you.
Like this article? The Importance of Average Credit Score in US
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