Answers to 6 Frequently-Asked-Questions about Secured Credit Cards

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Today, let’s consider the answers to six of the most frequently asked questions about secured credit cards. We believe that by knowing the answers to such queries, we can empower our readers to make the right decisions, not only in terms of picking suitable lines of credit, but also in terms of managing their existing credit card accounts.

Question 1: Why are they called “secured’?

Answer: The modifier secured is used to describe the most striking feature of these card accounts – that is, the existence of collateral, which comes in the form of a security deposit. The collateral in secured cards serves as a guarantee for the repayment of the bills and expenses that will be charged by cardholders on their respective accounts. Should they decide to deliberately default on their monthly bills, card issuers can simply use the deposit provided to settle the unpaid credit balance. Continue reading “Answers to 6 Frequently-Asked-Questions about Secured Credit Cards”

Secured Credit Card Management Tips for the New Year

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Are you a secured credit cardholder? And is responsible management of your current line of credit one of your main goals for the year? If your answers to these two questions are YES and YES then, we advise you to keep the following secured credit card tips in mind:

Never pay your bills late. Did you know that missing out on your monthly payments can be disastrous not only to your credit history but also to your personal finances? That’s because paying your bills late will not just inflict damage to your credit profile. It can also cost you a great deal of cash, in the form of late payment penalties and other surcharges.

Hence, if you wish to keep your credit payments minimal and to maintain a high credit rating then, you should resolve to keep up with your secured credit card bills. If you find it difficult to remember your due dates; we advise you to set up personal alerts and reminders in your mobile phone and even in your portable devices. Better yet, sign up for automatic payment arrangements with your bank so that you won’t have to worry about missing out or skipping on your bills, anymore. Continue reading “Secured Credit Card Management Tips for the New Year”

4 Financial Steps to Take, This Year

We’re already in the third week of January 2013. Are you through working on your financial plans for the year?

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If you’re yet to draw up a clear financial plan, for the current year then, allow us to discuss with you some steps you can take in the first two to three months of 2013. We believe that by employing these simple suggestions, you can eventually become more responsible, in terms of managing your day-to-day finances.

Establish a contingency fund. Did you find it difficult to finance medical emergencies and urgent personal expenses last year? If you did then, it’s about time to establish, not just a personal savings account, but also a contingency fund. Open an account in a bank nearby and strive to deposit a certain amount of cash on it, either on a weekly or on a monthly basis. By doing so, you will eventually have funds you can tap on in case of emergencies, and even during calamities and natural disasters.

Pay close attention to how you manage your existing lines of credit. Keep in mind that the manner by which you handle your credit cards and loans can have a huge impact on your chances of qualifying for lines of credit, in the coming months. Continue reading “4 Financial Steps to Take, This Year”

Practical Suggestions for First-Time Credit Cardholders

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Managing your very first line of credit may not be that easy especially if you find it difficult to control your spending habits. Good thing that in this piece we have enumerated and discussed guidelines that will help you manage your prepaid, unsecured or secured credit card in the best way possible.

Make it a habit to check the available balance on your credit card before using it to cover your bills, purchases and expenses. This is very important for you to keep your credit utilization, otherwise known as your debt-to-limit-ratio, low. After all, with a low debt-to-limit ratio you can expect to build and maintain an excellent credit reputation, which will in turn help improve your chances of qualifying for affordable credit deals, later on.

Furthermore, this tip will surely prevent you from making extra payments on overdraft charges and declined transaction fees, which could eat a huge portion of your personal budget. Continue reading “Practical Suggestions for First-Time Credit Cardholders”

Things to Remember when Charging Purchases on Your Credit Cards

Uncontrolled spending is one of the reasons why a lot of Americans today struggle with huge financial obligations. They don’t pay close attention to the transactions they charge on their respective accounts. In time, such decision backfires on them in the form of huge debts they often find very hard to pay back.

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This is the reason why we have decided to enumerate and tackle below several pointers consumers, like you, should keep in mind when using their prepaid, secured or unsecured credit cards to cover their purchases and bills.

Determine if you can really afford to settle your credit card charges, in full. This might entail a close examination of your personal or household budget to check if you have sufficient disposable income you can use to cover your subsequent bills. If you discover that you’re actually living paycheck to paycheck then, it might be wise to temporarily stop charging your expenses on your account until you can completely pay off your debt. On the other hand, if you think that you have more than enough cash to settle your charges in full then, we give you the go-signal to use your lines of credit in your favorite shops and stores. Continue reading “Things to Remember when Charging Purchases on Your Credit Cards”

How can I Maintain a Low Rate of Interest on My Unsecured Credit Card Account?

Are you interested to know how you can keep the interest rate on your unsecured credit card low? If you are then, we advise you to carefully observe the following pointers:

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Keep up with your credit card bills. The most important step you can take to prevent your card issuer from raising your interest rate is to simply pay your bills prudently and completely. Make it a point to submit early or on-time payments to your card issuer. That way, you can avoid shelling out huge funds on pesky fines and penalties such as late payment fees and surcharges. At the same time, such habit will help you build and maintain a solid credit profile, which normally determines the features that will be imposed on your card account.

And that’s not all. We also encourage you to settle your bills in full, each month. Always remember that submitting complete payments to the credit card firm will not only help you avoid incurring huge interest charges. More importantly, it can prevent your credit rating from sliding down and your rate of interest from going up. Continue reading “How can I Maintain a Low Rate of Interest on My Unsecured Credit Card Account?”

6 Credit Card Management Tips for Holiday Shoppers

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The holidays are just around the corner. Have you purchased all the gifts you intend to give your friends, colleagues, and immediate family members? If you haven’t and you have plans to do your last-minute shopping in the next few weeks then, we advise you to keep the following credit card management tips in mind:

Be mindful where you use your line of credit. After all, not all ATMs and webpages today are equipped with excellent features that will help ensure the safety and confidentiality of your credit card transactions. In fact, some automated teller machines as well as online payment pages were found to contain spying gadgets and software that can compromise your account details.

Hence, we advise you to be very picky where you use or disclose your credit card information. Before withdrawing funds from an ATM nearby; look first for suspicious gadgets or for strange-looking items attached to it. This way, you can eventually decide whether or not to use the machine for processing your transaction. Continue reading “6 Credit Card Management Tips for Holiday Shoppers”

Unsecured Credit Card Tips for College Students

Have you just received an unsecured credit card? If you have then, we advise you to keep the following tips in mind, guaranteed to help young consumers, like you, manage their existing credit card accounts in the best way possible:

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Never max out your line of credit. Always remember that spending beyond your credit limit will not only cost you a great deal of cash, in the form of overdraft charges and declined transaction fees. This poor credit habit can also cause your debt-to-limit ratio to rise and your credit score to slide down.

This means that if you’re keen on maintaining an excellent credit reputation then, you might as well keep your credit card transactions in check so you’ll never go overboard. And determine the available balance on your credit card before using it to cover your expenses. That way, you will know when to charge your purchases or bills on it and when to pay for them in cash. Continue reading “Unsecured Credit Card Tips for College Students”

6 Financial Tips for Young Credit Cardholders

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If your parents have just given you your very first credit card and you wish to know how you can manage it in the most responsible way you can then, we advise you to keep the following pointers in mind:

Use it to cover ONLY your important purchases and bills. Resist the urge to charge unnecessary or unscheduled expenses on your credit card, especially if it has a low spending limit or cap. Instead you should resolve to use it only for extremely important purchases, like when you need supplies for a school project or when you need to purchase a textbook from a bookstore, nearby.

Make sure you don’t go overboard. What does this tip mean? Credit cards in general come with spending limits or caps. Such features would tell cardholders the available balance they can use on their respective lines of credit. Continue reading “6 Financial Tips for Young Credit Cardholders”

How can I Keep My Credit Payments Minimal?

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Many credit cardholders today are interested to know how they can minimize the bills they pay each month. If you belong to this group of consumers then, you have surely found an excellent article!

In the remainder of this piece, we have tackled several tips that will absolutely help you achieve your goal of keeping your credit payments minimal.

Pay your bills early or on-time. Did you know that credit cardholders who pay their bills late usually incur late payment penalties and surcharges? In fact, these pesky fees can cause their credit obligations to balloon out and soon get way out of hand. Continue reading “How can I Keep My Credit Payments Minimal?”