Be Careful With Credit Cards

Credit cards can make life very easy. You can use the credit card to attain a higher standard of living. You will be able to purchase things that you do not have the funds for if you own a credit card. You can then clear the debt at a later date. If you manage your funds properly and are regular with your payments then you can make use of the credit facility offered by credit cards to make the best use of your finances. You however need to be very carefully. A lot of people do not use their credit card with care. They end up overstretching and spending money that they do not have. This can cause them to end up in debt and paying of this debt can then become quite difficult. Credit cards can be divided into two main kinds: secured credit cards and unsecured credit cards.

Most people have unsecured credit cards. As their name suggests these cars do not need to have any sort of security. An interest is charged on the credit that is used by these cards. With the use of these cards you will be able to purchase things even if you do not have the funds in your bank at present. You can swipe your card and the bank will pay on your behalf. You haven hence incurred bank credit to make your purchase. It is important that you keep this in mind when you are using your credit card. You will eventually have to pay the bank back for your purchases. At the end of the month you will receive a statement that will give you the details of your expenditure. There will be a minimum amount of money that you will need to pay depending on your total bill. If you do not make your credit card payments on time then you will be defaulting. This will have very serious and negative consequences on your credit record.

A secured credit card is generally issued to someone who has bad credit history. This type of card is backed by a security. You will only be able to run up a credit that is equivalent to the value of the security that you have deposited with the bank. If you do not make your payments on time then the banks will recover their credit from the security deposit. Getting approved for an unsecured credit card with a bad credit record is not easy. You will not find it easy to get unsecured credit cards or unsecured credit if you have a bad credit record.

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Posted in: unsecured credit,unsecured credit card,unsecured credit cards

Why you apply for an unsecured credit card

If you have a bad credit record because you have been misusing your credit card then you need to find a way to rectify this  mistake and restore your credit record. This wont is easy for you to do and it will take you some time to get this done. A  lot of people have misused their credit cards and have become defaulters. If you are panning on applying for a secured credit  card then you will have to provide some security to the back so that you can get your credit card. The value of the security  will be more than your credit limit and this is why you need to make sure that you use your credit card well. You should only  use it when you need to and you should not use it lavishly if you don’t think you will be able to repay the amount on time.

If you become a defaulter once then the bank authorities will not take an action against you, but if you become s defaulter  again and again then your credit card will be cancelled and you won’t be able to sue your card anymore. Also the security  that you provide will officially become the banks properly and you will not get it back. So if you have a bad financial  record and if you want to improve this record then you will have to look for the best way to do so. It is obvious that you  won’t be able to apply for another secured credit card, but you will be able to apply for an insured credit card.

With the help of an unsecured credit card you will be able to restore your credit record. This is one of the pros of having  this card in hand, but there are also several cons of using the credit card. For starters you will have to pay more in order  to get unsecured credit. Then, your rate of interest will be quote high so this means that you won’t be able to use the card  much.

You should only apply for an unsecured credit card if you can afford the rate of interest. If you can’t afford the rate of  interest then you will have to look for another way to improve your credit record. So you need to make sure that you make  good use of your credit card. There are banks that provide unsecured credit cards to people with bad credit. You should do your research and find such  banks. Unsecured credit cards for bad credit will have additional terms and conditions that you should study before you get  one for yourself.

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Posted in: unsecured credit,unsecured credit card,unsecured credit cards

Don’t Get Carried Away When Using Your Credit Card

Depending on the amount of credit that you have run up on your card there will be a certain minimum amount that you will have  to pay at the end of the month. Credit cards can be very convenient. If you do not have the funds to buy something at present  then you can purchase it on credit and then repay the money through your credit card payments. You should however be careful  when using your card because you could very easily end up in debt.

A lot of people end up misusing their credit cards. They go on a shopping spree and end up swiping the card without much  thought. This is not good for your finances in the long run. Whenever you swipe a card you are spending money. Eventually you  will have to pay that money back. People fool themselves into thinking that they can buy whatever they want and do not really  stop to think about the consequences. If used properly a credit card can help you improve your quality of life considerably.  There are a lot of people who use their credit cards intelligently and get a lot of advantages from them.

You should make sure you are very careful with the use of your credit card because it will become a part of your permanent  credit record. If you default on your payments then this will reflect badly on your credit history and you will end up with a  poor credit rating. This will make it very difficult for you to get a loan and you might have to pay higher rates of interest  to secure one. It is not good to default on credit card payments. It has a very negative impact on your credit record.  Continued misuse of your credit card will result in your card getting cancelled. Once your card is cancelled it will become  very difficult for you to get an unsecured credit card.

Banks will start looking at you as a risk and will not want to issue  a new card to you. Unsecured credit card are very useful and you will not realise their value until you are unable to get  one. In such a situation you will have to apply for a secured credit card. These cards are usually backed by some sort of security  and you will only be able to run up a limited amount of credit on them. The interest and the charges on a secured credit card  are much higher than that on a unsecured credit card.  

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Posted in: unsecured credit,unsecured credit card,unsecured credit cards