The amount of cash used for purchases and other payments made every day becomes lower. The reason is that more and more transactions are performed with the credit cards. The credit cards allow avoiding the real money as the payment is made electronically. You can make the purchases online, buy the products and services you need paying with the credit card through the special Internet page. Even if you don’t like using the credit card as you are afraid to get in debts, you might still need it as some services won’t be available for you without it. Some hotels won’t let you book a room, you won’t have the possibility to buy the airplane or the railway ticket in advance through the Internet etc. the credit card is also the thing that provides the information about your credit reputation to the bank. It has lots of impact on your credit score and rating. It has lots of advantages but in order to benefit from them you need to learn how to manage your finance properly. Credit cards mean lots of convenience for their owners if they do the things right.
Before applying for the credit card there are some things you need to know. First of all, find out what credit card you can get in the bank or the credit card company. There are secured and unsecured cards. The secured card works in the following way. You give the definite assets as a collateral to the financial institution that will give you the credit card. The limit of your credit card is equal to the value of the assets. The collateral is the guarantee the bank doesn’t lose the money you spend through the credit card. The collateral can be also used in the following way. The bank gives you the so called deposit credit card. You give them the definite amount of money in cash instead. This amount is your credit limit and you can spend the money until you have run out of them. After that you need to update the account, i.e. to bring some more money in cash to the bank. In this case the interest rate is usually not charged at all. The bank is the keeper of your money and you don’t spend their cash at all. The deposit card doesn’t influence on your credit values at all as it is not actually the credit card. Nevertheless it can bring you the advantages of the credit card except for the positive impact on the credit history and therefore the credit score.
The unsecured credit cards don’t require any collateral. However, they are not that easy to get as the financial institutions are ready to give them only to the customers with the high credit score. If you meet the requirements, choose the card with the lowest interest rate and the set of credit options which are the best and the most profitable for you.
The credit card can even save you some money if you manage to keep your credit card expenses under control and make the payments on time.
The “crisis” thing is really helping to clear the minds of average folks and big financial grands. Maybe this is not the wind of change, but it really assists to make all the players on the market of credit card applications to act realistically.
However before you dash to fill out credit card applications, please visit this credit card blog. There you will find practical tips about how to find the best credit card applications and avoid the numerous traps of