Credit Cards Pros and Cons

Agencies like bank, financial institute are offering their clients to opt for another credit card even if they already have, to generate more business by them. Customers are also trying to get as many cards so that they will be able to have more credit limit. But the question is having a lot of card is good option for the customers or will it create future problems to their users. Let’s figure it out by discussing the pros and cons of having many cards.

Pros:

If a customer has many cards then it is very obvious he’ll have good credit limit if he required on the time of uncertainty. But need of number of cards required only at the time when your card don’t have sufficient limit. So if you repaying your debt on time it will enhance your credit reputation. Banks may extend your card limit so you don’t need number of cards with increase in high interest rate. [Read more…]

How to Recover from Financial Crisis?

Recession which came last year affected many people all over the globe. Especially in United States many people lost their job, home, credit score and many things just because of this financial crisis. Many Americans met with depression too, just because of this small term. Now as the market is recovering from the recession, it is a good time to analyze the causes of the financial crisis and to get the ways through which we can recover from it.

Analyze yourself: The very first thing, which we require from recovering from the financial crisis, is to analyze ourselves. Check the reasons why we reached to the current situation. Analyze honestly the drawbacks, because of which we lost our jobs, while other person is still working in the same company. There might be some reasons, and we can only discover it and rectify it. [Read more…]

The 3 Most Popular Types Of Credit Cards And Who They Are Designed For

best credit cardsThese days, one of the most popular topics in the personal finance industry is credit cards. They seem to be the center of discussion on blogs, financial T.V. shows and even in newspapers! This should come as no surprise knowing the the vast majority of consumers in the United States use credit cards and use them option. As this financial option has evolved, more and more different types of credit cards have become available to consumers. Today, we are going to go over the top 3 most popular types of credit cards, who they are designed for and, what has made them so popular. So, without further ado, here they are…

 #1 Most Popular – Balance Transfer Credit Cards

If you are looking for a credit card, chances are, you are looking for one that offers balance transfers. Balance transfer credit cards have really become a household name in the past few years. This is because these cards allow you to use them to pay off other, higher interest rate accounts at lower short and long term interest rates. Balance transfer credit cards also come with promotional interest rates in most cases. These are low, often times 0% short term interest rates that will last from the day you open the new card to the end of the promotional period. These cards are designed for consumers with good to excellent credit scores who have a debt to income ratio of less than 15% who would like to reduce interest rates or consolidate debts into 1 easy to manage account.

 #2 Most Popular – Secured Credit Cards

Another very popular type of credit card these days is the secured credit card. The reason this option is called “Secured” is because before consumers can use a new secured credit card, they will need to place a security deposit with the lender. In most cases, the security deposit will be refunded after 12 months. These credit cards are designed for consumers who have bad credit scores or little to no credit at all who would like to start improving their credit scores. Therefore, the security deposit is there to alleviate the lender of the added risk associated with loaning to consumers with poor credit scores. Secured credit cards are great for showing credit reporting agencies that you are a worthy borrower because they generally report to all 3 major reporting agencies every month. The key is, keeping your card in good standings!

#3 Most Popular – Cash Back Credit Cards

When it comes to cash back credit cards, the name really says it all. These are credit cards that offer consumers cash back on purchases that they make using it. In most cases, this will happen through a point system. Every time consumers use their cash back credit cards for qualifying purchases, they will be given points. As their points accumulate, these consumers will be able to redeem them for cash back rewards. With that said, it’s easy to see why cash back credit cards have become so popular…who doesn’t like cash back?

 About The Author – Joshua Rodriguez

This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance writer. Join the conversation about this article on Google+!

Photo by: taxcredits

The UK Embraces Credit Cards

credit cardsThe amount we Brits spend on our credit cards is increasing. That’s according to new statistics released by the British Banking Association, who have revealed that £7.1 billion was spent on our cards during the month of October in this country – that’s an increase of over 5 per cent compared to the same month in the previous year.

Better At Handling Our Credit Cards?

The good news is that we’re getting much better at handling our plastic than ever before too – to go with increased use by British people, the amount of debt has gone down. Even though we borrowed £7.1 billion, we actually paid off £7.4 billion in the same time period, which would seem to suggest that we’re getting much better at budgeting and using our cards properly.

Will Becker, the CEO of credit card comparison site TotallyMoney.com, said: “It is great to see that the nation is embracing its plastic…given the free consumer protection credit cards offer and the rewards available, more people need to switch their spending from debit to credit cards.”

Credit cards are increasingly competitive with the benefits they’re offering too – along with cash back credit cards which reward consumers for spending money on their plastic; some cards offer things like air miles; charitable donations; and more. These benefits are just not available on purchases made using a debit card, so people are still spending more money on their credit cards to see the extra profits.

Along with Section 75 – a piece of legislation that protects consumers making purchases valued at over £100 using their credit cards – there’s increasing numbers of incentives for Brits to make more purchases using their plastic.

“It’s time people woke up to the wonders of credit cards and changed their spending habits,” adds Becker.

photo by: marsmet543