Credit Card Debt – A Student’s Story
Credit card debt is an example of unsecured consumer debt, accessed through credit cards. Debt results when a client of a credit card company purchases an item or service through the card system. Debt accumulates and increases through interest and penalties when the consumer is not able to pay the company for the money he or she has spent. Watch this video all about a student credit card debt.
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Swipe Away With Secured Credit Cards
There is a reason why it is called a secured credit card in the first place. It is the best way to deal with your expenses and at the same time enhance your credit history. In addition to that, with the modern society taking its toll nowadays, you can surely make use of that credit card whenever and wherever.
A credit card has moved a level higher. It is what most airlines, car rentals, hotels, restaurants and stores are looking for in order for you to be able to utilize their services and purchase their products. It is also a great way to keep yourself secured by not having to carry with you bills. It offers safety and convenience that you can enjoy all the time.
However, the catch is being able to find the right company that offers a secured credit card with a deal that is worthwhile. If you come to think of it, the search may tend to be long and discouraging because of having to consider a lot of option. But as long as you have the determination and information needed to get the credit card in your hands then taking time to decide would not be a problem for you.
So basically what happens is this. If in case you have a poor credit history because of past missed deadlines or if you have not even had a credit card before then you will most likely not be qualified to avail of the regular credit card. The option left for you is to opt for a secured one. In a secured credit card, anything and everything that you use this card for will be immediately backed up by your own personal money. That money is in a bank account which will be linked to your credit card line.
But if you want a shortcut and get pass all the hustle and bustle, you can right away apply for a Visa or Master Card. These are the major and most trusted secured credit cards available at your expense since these are accepted almost everywhere.
Now what are you waiting for? Fund that bank account, apply for a secured credit card and get to enjoy all the perks you want with just a simple swipe.
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The Pains of A Poor Credit Score
Having a very low credit score can drive you nuts. Majority of creditors consider 620 as the bottom cut off for prime loans, which is kind of like the separating line between good and bad credit.
A credit score of above 620 would still most likely be considered as a sensible credit. You won’t essentially be deprived of credit, but the best rates will not be given to you. You might possibly learn that securing loans are extremely hard at this point. And if you ever get approves, the interest rate will be extremely high and the conditions might be a lot less than perfect.
That said, if you are looking to buy or refinance a home or a car, a higher mortgage rate is to be expected. You must take every measure just so you can boost your credit score to avoid being in this kind of rut.
It goes without saying that, the higher you can boost your credit score, the better benefits you will reap. Anything below 620 is basically a poor credit score. Your risk of default is pretty high and before a lender even thinks of approving you for a loan, strong compensating factors will be asked from you.
If your credit score is around 620, it may seem that you have done some financial mistakes. This predicament happens if you own credit cards that are maxed out. Spending way above your credit limit makes it much more damaging for your credit score. When you max out different credit cards or go beyond the credit limit, you send the wrong signal to your prospective creditors that you have troubles living within your means. The money you make is not adequate, so you resort to your available credit. This can have a negative impact on your credit score.
Always remember that your credit score depends on the data seen in your credit report. Therefore, vigilantly checking the information in your report is an essential measure to take.
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Student Credit Cards – How Do Credit Cards Work?
With great power comes great responsibility. Using credit cards have that infamous reputation of burying someone in debt. Be sure to meet your dues on time and control your credit card before it controls you.
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Secured Credit Cards For Good Credit History
Secured credit cards are ideal tools in managing your finances and if you want to boost your credit score. Additionally, they are practically an essential these days if you ever want to travel, as most airlines, car rental companies and hotels need a credit card to use their services.
The main issue is that hunting down companies that give secure credit cards in this day and age can pretty challenging. The purpose of this post is to give you the inside “scoop” on finding such types of credit cards. This way, you can be on your way to having the convenience and credit building benefits that they boast of.
What is a secured credit card? When a certain person is not qualified for a “regular” credit card, maybe due to a poor credit history or due to the fact that they have yet to establish credit, their best option is a secured one. “Secured” simply means that anything you charge on the credit card is covered by your own money, for the most part in your own bank account.
That said, your credit line on these cards depend on the amount of money you have in your account to back your charges on the card.
In some cases, local credit unions and banks give these types of unsecured cards, but they are seeming to slowly sink and becoming a thing of the past, even despite the growing need in this tough economy where many people’s credit is falling apart.
One thing to be aware of is unscrupulous companies that charge ridiculous fees and “no name” cards that can only be used in their catalogs to buy their merchandise. What you must have is a secured Visa or MasterCard. These are the types that can be accepted everywhere. These will give you convenience and credit building qualities you have been dying to have.
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The Skinny On Gas Credit Cards
Did you know that getting a “Gas Credit Card” from your local service station will be beneficial for you in the long haul? It usually doesn’t cause you too much trouble attaining one as they aren’t really strict about your credit problems and they aren’t big fans of credit score checking. This can especially help you when your credit score dips low or you don’t have credit history at all.
Majority of local service station use major credit card companies namely MasterCard or Visa to help them in issuing gas card to clients. When you already have your Gas Credit Card in hand and you have been using it already, the monthly bills will be paid to the credit card company which backed up the service station you got your card from. The particular credit card company then reports it to the three credit bureaus that will keep track of your credit rating.
This may sound a bit of a no-brainer but it will definitely help you in boosting your credit score so you will eventually be able to score big shot items on credit. This will not happen, though, if you don’t pay your bills on time and in full payments.
If you have been good at paying even your account, they might deem you as someone trustworthy who painstakingly takes account for his or her responsibilities. And this might be your ticket to getting other cards, but be careful not to overextend yourself and you might just have credit score problems.
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You Credit Score Must Be Better Than Subprime
Credit scores range from 300 to 850. Precise details about a credit score is not really known by many, but what people know is that the lowest credit score possible is 300, with 850 being the highest.
Majority of lenders deem 620 the bottom cut off for prime loans, the dividing line between fair and bad credit. That being said, having a credit score a bit above it may make you panic, for instance, 630. It’s still actually average, but it falls on the low side or below average. Nevertheless, a 630 score is rather more acceptable than being in the “subprime”.
This credit score would possibly be deemed a sensible credit. You won’t instantly be denied loans, but you will surely be repelling the best rates. Securing loans could also be very difficult at this certain level. The interest rates are always pretty high and the conditions are far less than ideal.
As a matter of fact, if you plan to buy or refinance a home or a brand new or used car, you are bound to have a higher mortgage rate. Thus, you are better off improving your credit score.
If your credit score marks a little above 620, you may have done some financial mishaps. This may take place if you own credit cards that are maxed out. Spending beyond your credit limit makes it even more damaging for your credit score. When your credit cards are maxed out or go beyond the credit limit, you give potential lenders the vibe that you don’t have the ability to live within your means. The money you make is not enough, so you use your available credit to get what you want or need. That’s probably what happens, or so they think. This can badly affect your score.
You should never forget that your credit score depends on all the data in your credit report. Thus, it’s a must that you always monitor it.
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