Credit Card Comparison

  Credit Card Comparison  - 3 big credit card mistakes most of the new credit card holders make  - Jun 25, 2007  

Credit cards with all their benefits and drawbacks are here to stay. They have become an integral part of modern lifestyle. Sooner or later everybody tries to get one and make his life simpler. But, do they all take the correct decisions when they try to get a credit card? The answer is No. In this article we take a look at few of the big mistakes people make when they begin their credit card journey.

Are you going for a credit card simply because your friend has it? Think again. You could be making the worst mistake of your life. Credit cards, though having standard terms and conditions must be chosen very carefully. Every individual is different and so are their needs and financial conditions. The credit card is an important thing, the use of which will decide how your credit history fares over a period. So, don't just make an impulsive decision.

With so many good credit card comparison sites cropping up on the internet, why don't you compare the credit cards before deciding for one. It is very simple and extremely convenient. Within few minutes you are able to look at various features of credit cards side by side and thus get better data to decide on the right card. Going for a credit card without comparing various offers is like shooting in the foot.

You just got your credit card by post and you are indeed very delighted. But do you know what to do with it? The first thing is to check out the terms and conditions associated with the credit card. Most of the credit card companies don't enforce the terms unless you start using the credit card. Reading the credit card terms and conditions will enlighten you about the way credit card will charge interest and other important things. Strange but true, most credit card holders do not read this document and find themselves in trouble later on.

  Credit Card Comparison  - 3 worst student credit card mistakes that cause most of the credit card debt  - May 8, 2007  

Do you find most of your friends end up their college with huge credit card debts to repay? What ails them? In this article we take a look at the 3 worst mistakes students make with their student credit cards, and pay for it heavily later on in their life.

1. Sign up the first offer you receive

A student is offered a number of credit card when he or she enters the college. A good thing would be to contact the financial aid office to get help on which card is better. Ask your friends, get their opinion, see how well they are faring with their student credit cards, compare various offers that you get on a credit card comparison website online. This will ensure that you have made an informed decision. Else, you could land in trouble.

2. Max out the credit limit

Credit card companies are quite generous in giving huge credit limits by student's standards. Student's should not take this as easy money and max out the credit card. A good thing is to keep the credit card balances to below 30% of the maximum credit limit. This will keep them in the good books of credit card company and won't invite huge penalties and high APR's.

3. Don't repay on time

Taking a loan (yes every expenditure on credit card is a loan and has to be repaid with interest) and defaulting on repayments, doesn't go well with credit card agencies. When they find that a default on repayment has taken place, they increase the APR's, take back all rewards and slap late payment fees. This also doesn't goes well with the credit rating agencies.

Credit card is there to help you in times of difficulties and it has to be used wisely to build the credit. If the credit card companies find that your credit card use is judicious, they will increase your credit limits, lower interest rates, throw in few more rewards etc. This will seriously help in building a good credit history.

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