There is no doubt in accepting the fact that credit cards have made life a lot more simpler, convenient and hassle free in comparison to the times when one had to roam around carrying bundles of currency notes. With moving times and increasing expectancies the credit cards are now coming packed with incredible offers and schemes aimed to provide you the best services. Therefore in such times it becomes necessary to learn and understand the procedures and tips which can help one in deriving maximum benefits from these plastic cash options.
- I would say the first and foremost way is to ensure that one maintains a good healthy credit rating by paying all dues and monthly installments on time. This can be insured by staying within your credit limits and not using too many cards at the same time to make payments. The credit score is important as it gives your future potential lenders an idea as to if you are in a position to repay the loan that you desire to avail at any point of time.
- The use of credit card as means of payment for big purchases gives the owner the opportunity to stop payment for the purchased good if it turns out to be defective or damaged. The customer can avail this right under the provision of the Fair Credit Billing Act. If your initial trials to sort out the matter with the goods dealer fails to work out then the credit card company can intervene and if it finds your claim justified then it can go ahead and the block payment for the goods on your behalf.
- Using credit cards for online purchases too is a safer option due to the various facilities and protections provided for the same under the Fair Credit Billing Act. One can avail the use of the ‘one time use’ account number provided by many credit card companies to carry out online purchases. These accounts provide the user the security it desires for online transactions.
- One also has the option of using the credit card as a mean to obtain low interest loans. Free from most of the application hassles these fixed rate loans offered on your credit card are at time better than those given by banks.
- Transactions made on credit cards can be converted to easy equated monthly installments - EMI
Tags: credit card tips, credit cards, credit score, online credit cards
A credit card holder has not only the pending bills to worry about but also has the issue of increasing interest on it to take care of. Even though the basic rule of not overspending beyond your limit and paying your bills on time to avoid paying the penalty holds good but still there are some other simple measure which if kept in mind can go a long way in keeping you and your card payments away from the debt zone. While deciding on a new card one must view the decision with a long view term.
Holding store cards is by no means a good idea as they not only have small credit limits but also have higher interest rates. Careful scrutiny of the attractive and alluring offers coming with these cards is of uttermost importance. Make it a habit to carefully read and understand all the terms and conditions coming with the card. Negligence on this part has the potential of making you a victim of late fee charges or other such charges which was not mentioned to you but was mentioned in the terms and conditions. People by their own experience also recommend using two major credit cards- one which you use regularly and pay off all its bills on time and at the same time accumulate its reward points and the other card with preferably a low interest rate which can be used by you in emergency situations.
Using way too many cards also is not advisable as it will over burden you with due bills and may harm your credit score in short run and adversly affect your credit report in the long run. Clearing your due amounts in time and as full payment is a sure shot way of ensuring that you never accumulate unwanted interest on your bills. If your finances do not allow you a full payment then the next best option would be to pay more than the minimum prescribed limit. This act is also effective in giving your credit scores the lift it needs. Keeping in mind these basic steps would ensure that credit cards remain a source of fund for you and do not end up being a burden.
Tags: credit cards, credit cards online, credit score, store cards
People who eventually find themselves trapped in the vicious web of debt leading them towards potential bankruptcy are desperate to find help to rescue them out. The debt solution for these people and especially those leading towards bankruptcy is IVA. IVA is a legal document between the creditor and the borrower and it stands for Individual Voluntary Agreement. Being placed under the Insolvency act of 1986, it aids in helping individuals trapped in bankruptcy.IVA fixes your debt issues by making use of debt management techniques. This help is provided by means of an insolvency practitioner designated by authorized organizations. In accordance to the signed contract, it becomes the duty of the assigned practitioner to help the borrower with his debt situation by helping him in reducing the due loan amount.
In most of the situations up to 75% of the total loan amount can be wiped clean and the amount can then be later paid over a comfortable time period. Complete secrecy is maintained regarding the financial situation of the debtor. Restrictions are not imposed by IVA and once all the payments are cleared which is generally done over a 5 year time period, the debtor is free of debts. Opting for an IVA also does not play havoc with your credit score. Though, it does render them useless and inactive once you are being helped out by IVA. Your credit score can keep on increasing provided you remain regular with your payments. Therefore it also aids in strengthening your credit report. This legal agreement is laced with several advantages.
Firstly, the interest amount is fixed and cannot change with time. Secondly, the debtor is allowed to pay only an agreed amount and therefore you cannot be bothered by the company before taking prior permission from the courts. Thirdly, your financial condition is kept a secret thereby saving you from embarrassment. Fourthly, help in the form of IVA also does not endanger and risk your physical assets like your house as you need not mortgage them here. And lastly, the amount to be paid monthly is very reasonable and easily payable. This fixed amount too cannot be changed by the company over a due course of time.
Tags: consolidate debt, credit score, debt management, Individual Voluntary Arrangement, IVA