Getting That First Credit Card Was So Easy

Category: Finance, Credit.

Getting that first credit card was so easy. Just like that, you were a credit card holder, all thanks to online approval systems.

All you had to do was fill out a simple application online and click a button to submit it. Of course, you still had to wait for the card itself to come in the mail, but didn t feel official when it finally arrived? Sounds easy, doesn t it? When looking into credit cards online, you read that the best way for you as a student to establish credit was to get a credit card, make small purchases and make your payments on time. You complete an application and then not much later, you shop. How did this happen?

Of course, the statement arrives monthly and every month, you dread opening this envelope more and more. Suppose that each month you spend$ 100 on new clothes. You need clothes, you need a credit history. You may not have a lot of cash on hand, but there were some really good deals, so you charged it. So why not kill two birds with one stone? That$ 100 you charged for clothes comes with a 21% interest rate! Now this is inherently a good idea, however it loses something when you analyze the costs involved.

This interest is applied monthly on your balance so that even after 10 months of making the$ 10 minimum payment, you will still be paying for those clothes. Essentially you have been paying rent on the money you used to buy those clothes for almost a year. So how did this happen? Those clothes may well be out of date by the time you finish paying form them! You need to be well aware of the APR( or Annual Percentage Rate) associated with your credit card this is how much you will be paying to use your card. No just imagine how much of a jam you d be in if instead you would have spent$ 1, 000 on a stereo system for your dorm. Each month, this interest rate is applied to any outstanding balance you may have.

That s just not fair! Here s some shocking news if you have a variable rate if interest, this means that the issuer of your card can raise the APR of your card anytime, as much as they want, with no warning! Nobody warned me about this! In your Terms and Conditions agreement, which you signed without so much as a glance it was all spelled out for you. The truth is yes, you were warned about this. If you have no credit history, you cannot necessarily, or bad credit expect to get such a good deal on your APR as a person with a good credit rating. Make more than your minimum monthly payment, if possible to display your responsibility with your credit card.

In the arena of credit, you stand to gain by being financially responsible.

Read more...

Taxes Cannot Be Discharged In Bankruptcy - Alfreda Aponte about Finance and Credit:

There are a lot of things people don t know about bankruptcy. You must be flat broke to file for bankruptcy.

At Gas Stations You Save Even More - Finance and Credit Articles:

With the Chase PerfectCard MasterCard you can earn rewards everywhere! At gas stations you save even more.

But You Need Cash - Allison Darrigo about Finance and Credit:

We have all done this without realizing the financial repercussions of our actions. Its so easy to do.