Facts About Credit Cards

Check out the Credit Secrets Bible before you mess up your credit

== When Should I Get My First Credit Card ==

As soon as possible. Having said that it may be difficult to get a credit card, once you've had one and established a good credit rating, you will always be able to get another or have your limit raised.

== Can I Get a Credit Card If I'm a Student? ==

Some credit card companies offer cards to students. The reason they do this is to initiate relationships with people they hope, over the long term, will be loyal to their company. The initial credit limit may be low, but that doesn't matter. If you can get it, take it. Be careful using it. Your objective is to build a credit reputation, not charge everything in sight.

== What's the Difference between a Credit Card and a Charge Card? ==

There's a big difference. A credit card such as VISA or MasterCard offers you a line of credit for which they charge you interest if you don't pay off the balance each month. A charge card, such as American Express, also allows you to charge purchases up to a specified limit. However, charge card companies expect to be paid immediately upon billing, since it is not their intention to offer you credit.

== Use your credit card to it's fullest potential ==

Instead of buying extended warranties when you buy electronics or appliances, use a credit card that offers extended protection. You can have the normal manufacturer's warranty on most items doubled (sometimes to a maximum of one additional year) simply by using the right credit card. You save money by not buying an extended warranty  and if you pay your card off on time, it costs you absolutely nothing.

== Credit Card Interest ==

You can avoid paying interest on your credit card for transactions (i.e., for everything other than cash advances) by making a full payment on or before the due date on your statement. However, interest is always charged on cash advances from the date you take the money. If your credit card allows you to write cheques against it, interest is charged on those types of cash advances from the date the cheque is processed to your account. And, of course, no one pays you interest if you have a credit balance on your credit or charge card account  so don't.

== Credit Cards Actually Are Free Money Loans ==

If I could show you a way to borrow $5,000 a month and pay no interest, would you be curious? What if I told you that credit cards offer you the cheapest form of credit available? It's true, and here's why.

Credit cards only charge interest when your balance has not been paid off in full. If you pay off your balance each month, you pay no interest. You've used the financial institution's money for anywhere from 30 days to 60 days  and it cost you absolutely nothing.

Note: You must pay your balance in full each billing cycle to take advantage of paying zero interest charges.

== Who Should Have a Credit Card? ==

Everyone. The fact is, the only people who can borrow money without going through hoops or signing away their firstborns are people who have borrowed money. You can't develop a "credit rating" until you have paid back a loan. A credit rating is your reputation in terms of your previous ability to pay back money you've borrowed in a responsible and timely way. If you've been consistently late in making your payments, you'll have a bad credit reputation, or "rep." If you've ever missed a payment completely, you'll have an even worse rep. If you've always made your payments on time, you will have a great credit rating and just about anyone will be willing to lend to you under the right circumstances.

A credit card is one of the easiest ways to establish a credit rating. Whether it is a gas card, a store card or a bank card, you can apply for a card with a low limit, make small purchases, pay off the card each month and become a credit star. You'll establish yourself in the world of credit, and you'll develop a great reputation.

== Credit and Loan Categories Explained ==

The finance industry is full of jargon which average people simply don't understand. Don't let the "big words" confuse you into making the wrong decisions. You are empowered when you understand all the lingo, this holds true for everything in life. If you understand things, you can make an informed decision. This site was launched to help you make the right choices with your finances.

Since we are no credit, loan and mortgage broker service we have no obligation to any particular company to sell their product. If a credit company wants us to promote their services, they must offer consumers and business owners the best rates on credit cards and loans. If they don't provide great rates or rewards programs, we simply ignore them.

== Credit Card Debt - Take Responsibility ==

Some of us don't feel entirely responsible for our debt. In the back of our minds, we're thinking that the credit card companies gave us the cards in the first place, that our spouse is the reckless one, that everyone has a lot of debt these days, or that our parents never taught us how to manage money. Regardless of who spent the money or why, we made choices in our life that now leave us in debt.

We are responsible for our situation - not creditors, spouses, relatives, or friends. When we accept that the burden is ours, the road ahead may seem long, but we don't waste energy blaming others. As a result, we gain some serenity and can begin to create positive and workable solutions to our situation.

Tip: Recall choices you've made that have put you in debt. You will accept that your debt is yours and not blame others for you circumstances.

A good alternative to a credit card is a prepay credit card that needs to be charged before it can be used. This is not only a good option for teenagers but also for grown ups. You can compare some Prepay Credit Cards at www.PrepayCardsForTeens.com.

== APR & Credit Cards - Explaining the Language of the Banks ==

Are you confused about credit card applications? Yeah, when you are at the point where you are ready to apply for a credit card, you have likely seen lots of information about APR's and now are absolutely confused and perplexed by all the seemingly amazing credit card offers out there! Yet, choosing a credit card based on APR still alludes you!

We know exactly why APR's are confusing you. Trying the lowest APR on a credit card application IS confusing because there are different rates for different scenarios.

Let's clear up some of the confusion about credit card APR's.

Here is a brief breakdown of the APR's to help you decide what the best credit cards are for you, it is difficult deciphering the best ARP because there are several rates based on how you use your credit cards, let's explain the different rates now:

- Purchase APR - Making purchases on your credit card have one interest rate and cash advances will have a different rate. - Tiered APR's - APR's are quite often set based on the balance you owe. Typically the higher the outstandig balance owed, the higher the rate. - Introductory APR - A low intro rate is used to entice you to become a customer of that bank. It's a marketing tool used to attract new customers. Great for you, but the rate expires after a period of usually anywhere between 6 month to 1 year. Here's a hint for you, earn your rewards with your business spending and redeem your points for personal gain. Remember that the spending you do on your business credit card is a tax write-off. So never redeem business card rewards on business spending, always reward yourself personally. You work hard in your business, both you and your family deserve to reap the rewards of your entrepreneurial devotion.

PrepayCardsForTeens.Com is a resource for parents helping them to make the right decision when choosing a credit card for their teenagers. Compare the best prepay cards online. Find out more at www.PrepayCardsForTeens.com

Check out the Credit Secrets Bible before you mess up your credit