Credits cards are frequently blamed for recent debt woes and also other consumer-related problems currently prevalent in modern society. In fact, a large part of such problems result from plastic money misuse or consumer ignorance.
Of course, there is no denying that apart from the exorbitant expenses of owing a credit card, plenty of innocent customers have also been the targets of dubious tactics used by some credit card issuers.
Unfortunately, only very few consumers seem to be understand about proper usages and the actual costs of credit card. Otherwise buy VCC with crypto , the reality would have been altogether very different today. As a matter of fact, just like mortgages, credit cards can beneficial on your personal finances too.
1) Carefully choose your card
These days finding new cards with innovative features have become a little too often. For that reason, go for a card that suits your requirements, and avoid those which are offered as ‘free’ cards.
For example, if you travel often, choose a card which that is tied-up with your travel company and can give you attractive travel discounts. This way you can easily get discounts on your travel and earn reward points too. However, if you don’t want to have revolving credit and want to pay the whole bill, you should choose a charge card.
2) Familiarize yourself with its features and usage
After getting the card, go through its available features carefully. Most importantly you should know where and how to use your card, whether it is possible to withdraw cash on it. If the card, for example, offers reward points on purchasing fuel through it, then paying cash at gas stations might be a bad idea. Instead use the card whenever possible, built up reward points and you can get free fuel after awhile. However, always pay in time, otherwise you may end up paying more for your fuel. Likewise, making cash withdrawal from the ATM machines of other banks will be subjected to an additional fee, then it is a good idea to withdraw cash only from the ATM machines of your own bank. There is no need to pay extra money for your laziness.
3) Use your card wisely
Sensible use of plastic money can result in lower purchase costs too. These days many credit cards offer tie-ups with other commercial establishments, and getting 25 percent discounts (perhaps more) is a usual affair. Moreover, credit card purchases are commonly paid after a one month lag. You, thus, save about one-month of interest cost when using credit cards. Credit cards expenses sometimes earn you reward points which can be redeemed at anytime in return for usable items.
So you have filed all of your papers with a bankruptcy lawyer and learned that the bankruptcy will stay on your credit record for at least the next ten years and you are feeling a little depressed. Everything in your financial life has been affected including your chances in the near future of getting a mortgage or car with a low interest rate. What do you do now? As odd as it sounds to some people many banks and companies out there want to do business with you, which in turn can help you start your financial life over. Increasing your credit score is not always easy, it is going to take some planning, will power, and even a little hard work. The good news is that it can be done.
Credit cards may be what put you into bankruptcy in the first place, but now it is your chance to use them to help you rebuild your credit history. I have a close friend who in 2006 declared bankruptcy, but she has worked hard to build up her credit and now has a very good standing with all three of the credit bureaus. Amazingly enough her credit score last time I talked to her is averaging around 730 for TransUnion, Equifax, and Experian, which she thought would never be possible this soon after filing. It is true that she will have the bankruptcy on her permanent record for many more years, but at least she has a chance to get a home, car, or other asset at a decent price sometime in the future.
Throughout this rebuilding process you will want to closely monitor the changes in your credit reports. Many times mistakes are recorded in your credit report, some experts cite studies that say as much as 48% of all credit reports have errors in them that hurt the credit worthiness of the borrower. One of the nice things about some of the laws that have been passed recently is that a free report is available from each of the three credit bureaus on a yearly basis. So make sure you use these free reports to monitor and keep tabs on how your rebuilding process is progressing.