Information and Simple Tips for Credit Card Users
Did you know the latest statistics show that Canadians have an average of three credit cards each? Wow… of course there is nothing wrong with having more than one credit card. In fact, if used wisely, it is good to have several. But if you have too much or if you use all the credit allowed on a map and go to another and another and another, the time has come to make a choice.
Why do you need a credit card?
Credit cards are an important way of life for Canadians and it is therefore not surprising that they find useful to have one or two. The cards are appreciated for years for several reasons, including simplicity, security and financial strategy.
Simplicity:
Credit cards are an excellent way to manage finance, controlling expenses and make purchases without having oneself with large sums of money. And with the possibility of purchase by mail, telephone or Internet, credit cards make the process safer, easier and faster. Credit cards are an identity that can be used for reservations, purchases and rentals in the move. Travel, credit cards often offer an exchange rate more interesting than the local currency exchange.
Security:
Unlike cash, if your card is lost or stolen, you are generally protected against unauthorized use. Some cards even allow you to challenge purchases that do not meet the conditions of sale.
Strategy:
Credit card are an excellent way to establish a credit history. They are generally the primary source of credit that can be achieved and, many years later, the responsibility you have shown using your card may well determine whether or not you get your mortgage or staff. Just to show some diligence to stay in good standing. If you are capable, you’re on track to establish a credit history that you will not regret.
Check before choosing a card.
There are currently over 600 institutions that issue credit cards in Canada. Given the variety of choices, you may feel outdated.
Before drawing lots to choose your card, take a few minutes to think. It’s easy to choose the options you want and eliminate those you do not need. All you need is an idea of what you need and a pen.
Note all the options you need (perhaps low interest rates), then the ones you want (reward points to the grocery store). Once all these options before you take the cards and see those deficiencies. Remember those who agree and reject others.
Here is a list of conditions that could help you prepare your list:
- The credit card annual fees are charged by the card issuer to cover various costs of administration and customer services. Although there are free cards, most between 15 and cost $ 150. This amount is usually charged at once.
TIP: Broadly speaking, you have more options, the card is more expensive.
- Annual Rate Percentage (APR) may be fixed or variable. With a fixed rate, you pay a fixed amount of interest each year – a certain percentage of your purchases paid by credit card, prepared in advance, thereby avoiding surprises. With a variable rate or “floating” interest is based on the prime rate plus a certain percentage (prime + 3% for example).
TIP: If you plan to see a balance from month to month, a low APR should be at the top of the list of what you need.
- The launch of TAP is a privilege granted to the new owner for a short period to thank him for choosing a particular card.
TIP: The rate of launch will not last indefinitely. Please check what the APR will be thereafter.
- The interest-free period or the grace period is the period between the date of purchase and when interest begins to be charged.
TIP: Some credit cards have grace periods of 25 days, others do not.
- Additional fees may be charged for late payments, cash advances or administrative transactions.
TIP: Most of these costs are indicated in the application form. Read it carefully.
- The by-products and benefits are widespread. These are usually points are awarded for travel, buying groceries and other rewards.
TIP: Compare the benefits at the cost of the card and decide if you need it or not.
When you compare the options available to the list of your needs, the cards that you remain at year-end should not be very many. Once you’ve made your choice, you’ll have far fewer problems and enjoy your much more than if you had selected at random. Congratz! You made the right choice.
December 30th, 2008 at 12:46 pm
[...] in a report which can be accessed in a credit reporting agency and is updated every month by banks, credit card companies and other organizations that you have granted a loan. Your credit file contains your [...]
January 8th, 2009 at 12:00 am
I never bid believe in that one.