Credit Cards

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In part 1 and part 2 of Common Credit Card Questions People Wonder About, we covered various topics ranging from cosigning and interest fees to annual fees and debt elimination. In the final installment, we’re going to cover three more issues people wonder about.

Is it a good idea to carry a balance?  You should never pay a credit card interest rate if you don’t have to. Your credit score will be just as strong without a balance on your card as it would be with one.

Should I try to get another credit card after ruining my credit? Before going out to get another credit card, make sure you can really handle it.

Does FICO determine what a good or bad score is? FICO doesn’t mention what constitutes a good or bad credit score. They only calculate it. Lenders have set the mark for that.

By knowing the answers to these questions, you’ll be a much more informed credit card owner.


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The internet is full of information about credit cards, yet people still wonder what the best choice is for them. In Part 1 of Common Credit Card Questions People Wonder About, we went over whether card holders should close out accounts or ditch cards with annual fees.

In part 2, we’ll cover more questions people wonder about.  

Is it a good idea to cosign for family members? Family is awesome, but if you want to keep the relationship that way, you should probably never cosign on a card for them. If they default, you’re on the hook.

Should cards with higher interest and balances be paid off first?  It is probably a good idea to do so because this will free up more money in your budget.

How often is too often to check a credit score?  You should check your score as often as you’d like. This is the best way to stay on top of what’s going on.

In part 3, we’ll cover more Common Credit Card Questions People Wonder About.


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No matter how much information is out there about credit cards, there still seems to be many unanswered questions people have about them. Here are 3 common credit card questions people wonder about:     

Should I get a card with an annual fee? – Because there are so many awesome fee-free credit cards on the market, you probably shouldn’t be stuck with a card that has fees in the first place. Weigh the pros and cons for the best answer.

Should my kid have a credit card? – It may seem like the “it” thing for a teenager to have, but unless they have a job to pay down the balance the answer is no.

Will it hurt if I close out the account on a credit card? – If you want to raise your FICO, the answer is probably no. It doesn’t add points to your score.

Be on the lookout for part 2 of Common Credit Card Questions People Wonder About for answers to the most common credit card questions.


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Wondering how many credit cards you should have? Well, that depends on who you ask. Some financial experts say zero….as in none. Others say as many as you can handle. However, the question may not be how many you can handle, but more so what kinds of cards you should carry. Co-founder of credit.com, Adam Levin suggests carrying an all-purpose card and a low interest credit card.

Your all-purpose card would be your rewards based cards, which are great for everyday use. It allows you to earn rewards for purchases. The interest fees are higher, but the goal is to pay off the balance each month.

Your low interest credit card is for emergencies and unexpected repairs. These cards give you wiggle room and due to low interest rates, you’re not overwhelmed with paying them back.


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Everyone wants a low interest rate credit card. Unfortunately, everyone won’t qualify for one. If you want to try your luck and apply for one anyway, here are the best credit cards offered in America this month, according to Credit.com. Even though the better your credit, the stronger your chances are of being approved for these sweet deals, you still may be able to squeeze through the door with less than perfect credit. Keep in mind that if that’s the case your rate won’t be as great as someone with perfect credit.  Here are the top two credit cards this month:

#1 – Simmons Bank Via Platinum
This card offers extremely low interest rates with the cash advance rate at 11.25%. Cardholders get to view the card’s financial performance and vote on rates, fees and benefits.

#2 – PenFed Promise
This card has a very low interest rate with no fees. Rates for cash advances run as low as 7.99%. There are no annual fees. Plus, you can earn a $100 statement credit as a new holder when you spend $1500 inside the first 90 days.


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When you’re ready to apply for a new credit card, keep in mind the terms and conditions. Read through them carefully. By doing so, you ensure that you are aware of all the following:

Introductory rates – These are rates offered by the company and will go up after the introductory period is over.
Annual fees – These are fees charged by the company each year for using the credit card. It is not the same as the interest rate.
Overseas transaction fees – These are additional fees charged if you use your credit card out of the country. This is important if you travel abroad often.
Details of any 0% APR – This is their guarantee that they won’t charge interest on anything you buy for a certain period of time.
Balance transfer fees – This is when you pay off the existing balance on a card by transferring it to another card.
Miscellaneous – These are any other things you should be aware of. Every company is different, so pay attention to details.


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If you’ve been thinking about getting a department store card, be careful. Although there are advantages to having them, there are disadvantages as well. In part one, we covered the high interest rates and limited use of store cards. Now, we’re going to cover a couple of more disadvantages that you should be aware of.

Buyer’s Impulse: Many card holders tend to buy more impulsively when they have a card. Stores want you to spend more and with a card in hand, you may be more likely to do so.

Better Deals Some Place Else: This isn’t really a con, but more so a word of advice. Don’t get a card just because they’re offering you 10% or 20% off a purchase for a day. There are some stores offering much better incentives. You just have to keep looking around.

Now that you know the cons to having a department store card, you can make a much more informed decision before signing your name on the dotted line.


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When you go into a store, it’s not uncommon to get an offer for their store card. In fact, they make big money off of this method. But, before you grab one there are some things you should be aware of. In part one of “Cons to Getting Department Store Credit Cards”, you’ll see some of the disadvantages to applying for one of these cards.

Limited Use:  With some store cards, you can use them just like a normal credit card, but with others you can only use it at that store.

High Interest rates: Store credit cards have much higher interest rates than regular credit cards. Some stores do allow a certain period with no interest rates, but if you miss a payment they may go back and apply those interest rates.

Credit Score Loss: Every time you apply for a card, your score gets knocked down by a few points. Plus, if your balance is too high it can hurt your score as well.

In part two, you’ll get to see a few other disadvantages to having a store card.


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If you’ve ever gone into a department store before, more than likely you’ve been invited to apply for a credit card. Credit cards are very lucrative for retailers, which is why they offer them nearly every time you go. Here are some perks and pros to getting a store credit card:

  • Zero Percent Financing: Some store credit cards offer zero percent financing options. This means you have anywhere from 12 to 24 months to pay off a large purchase with no additional interest fees.
  • Shop Around: Some store credit cards allow you to shop at other places too. As long as you haven’t reached your limit, you can use the card anywhere where they accept Visa or MasterCard.
  • Discounts: When you use store cards, you often get discounts whenever you use it for a purchase. This could come in really handy during certain times of the year.
  • Credit Building: It’s also great to use for building or rebuilding credit and boosting your credit score.

Next time you’re offered a store credit card, consider these four nice perks.  


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In Part 1 on how to be a successful credit card owner, we covered the importance of using credit cards like cash and making automatic payments. Now, let’s check out two more great ways to ensure that you are a successful credit card owner. These are not only just great tips; they are also obvious advantages to using credit cards wisely.

#1 – No need to worry about interest rates: One of the great things about credit cards is that if you pay off your balance in full each month, your interest rate won’t matter. This is perfect if you don’t have the best credit to begin with.

#2 –Credit card perks outweigh APR costs (usually) – Depending on the kind of card you have, the perks you receive for using your card responsibly throughout the year outweigh the annual rate cost.

Now that you know the additional benefits of owning a credit card, as well as the advantages to handling one successfully, you can apply for your next card wisely. Make sure that the benefits outweigh the cost.