First Time Credit Cards Used Wisely
It’s amazing that many Americans are in debt and are only starting to really think about it now since the economy is in trouble. When the economy is doing great no one gives it any thought to using their first time credit cards to buy the things they want without thinking of how much that item is going to cost them by the time they pay it off.
There are quite a few people (myself included) that use their credit card for one thing and one thing only, that is to establish a credit rating. Every month that my statement comes in I pay it off in full. Mind you, that the only thing I put on my credit card is some of the monthly bills that will have to be paid anyway at the end of the month or billing cycle.
Living within our means is the only way that the American people will ever get themselves out of debt. Just because our country’s government spends too much money on things that we don’t have the money for, doesn’t mean that we need to do the same thing.
How is a family ever to be able to buy a home if they don’t have a good credit rating? The better your rating the better the interest rate will be from the bank. Which stands to reason that if you have a bad credit rating, you will be paying more for the home that you and your family want and need.
Lately employers are checking possible candidates credit rating to see if they are responsible enough in their own lives to work for the company. If you can’t take care of your own finances, how are you going to be with their fiscal needs as a company? That is how they look at it now a days.
Credit cards are good to have, but having credit card debt is bad. Do what you can to keep yourself out of this situation.
Related posts
Using First Time Credit Cards
First time credit cards are making it too easy for people to lose track of their financial status. As we move away more from using actual money and towards plastic cards to pay for the things we need in life, we forget that we may not have the money for those things we want.
The American economy is in turmoil for quite a few different reasons, but the one I think that’s causing the most damage is the average person doesn’t want to wait until they have the money for that flat screen TV or whatever else it may be, they go out and pay for it with a credit card.
Using your credit card can be damaging to your finances because you really don’t see the the bill as a $3000 charge, you look at it as a monthly payment of $150 which many think that they can afford. The problem comes in when you look at how much you actually pay for that item when you finally pay off the entire bill.
Why is it that we are losing focus on the fact that we can’t really afford something and instead say that we deserve the things we want without saving the money first?
The credit card companies make it too easy for us to use the cards. They will also make it easy for you to pay small amounts each month. As a matter of fact, the other day I received my statement from a credit card company. The total bill was only $39. The company stated that the minimum amount due was $0. They didn’t want me to make a payment so they could charge me the 10% interest so they can make some money.
I pay my cards off in full every month. The only reason I have credit cards in the first place is to have a good credit rating for when I need it for investment purposes. If we start living within our means, we will improve the economy as a whole in this country.
Related posts
First Time Credit Cards – Credit Score
Credit is what makes this world go around. Credit is the system of buying and selling without immediate payment or security. Every company, big or small uses credit to run their business. Most individuals in this country has some sort debt, either by credit cards or with a loan (i.e. mortgage, auto). As someone applying for first time credit cards, your credit will be dictated by your credit score. You being approved will depend on the status of your credit score. Your credit score is calculated by many different factors;
1.How long is your credit history
2.How much is you credit limit
3.How much of you credit limit is being used
4.Have you been late with any payments
5.Did you ever file bankruptcy
There are quite a few more that I didn’t list, but you get the point of what goes into figuring out our credit score. There are three credit agencies that track your credit score and each one of them will give you a different score, not much of a difference, but a difference just the same. The range of a person’s credit score will start as low as 580 and go as higher as 850. The national average credit score is somewhere between 580-650, which goes to show you how bad the country’s credit is.
What can also damage your score is you apply for too many credit cards in a given period. Same thing goes if you go to buy a new car. In some cases people have been penalized on their credit score because of two different car dealers inquired about your credit in a short period of time. Of course you can just call up the credit agency and they’ll remove that since there is some sort of law that prevents you from being penalized in that manner. Even though you went to two different places, you were only shopping for one car.
Your credit score can help you some ways. The higher your credit score the lower you can get an interest rate.
So remember to keep your credit score high by keeping your credit debt low.
Related posts
« go backRecent Posts
- Comparing First Time Credit Cards
- Young Adults And First Time Credit Cards
- Applying For First Time Credit Cards
- First Time Credit Cards For College Students
- Considering First Time Credit Cards
- Three Things To Consider Before Applying For A Credit Card
- First Savings Credit Card
- Why Care About First Time Credit Cards?
- First Time Credit Cards For Teens
- Comparing First Time Credit Cards
Topics
Posts Of Interest
Tags
applying for a credit card bad credit rating budget credit card credit card companies credit card company Credit Card Debt credit card issuer credit cards credit history credit rating Credit Score debt repayment program economy emergencies First Savings Credit Card First Time Credit Cards interest rate loans minimum payments money payment options student credit card student credit cards time credit