A credit card is one of the easiest tools to navigate your finances through this economy. With different rewards and lucrative deals on offer, credit cards have made it simpler to make purchases and increase your credit score as well. If used carefully, there is a lot of things you can do with your credit card. Here are the top seven reasons why you should use your credit card for nearly everything. Helps in building up a great credit card rating : Having a good credit score really helps you procure loans and get access to low interest rates in the future. With timely payments and frequent usage, you can build up a good credit history, which will help you a lot to get financial assistance in the future. You can get loans without any additional security deposits or guarantees. Gives financial convenience: There is nothing as easy as swiping a card everywhere you make purchases. With groceries and bills taken care of with your credit card, it is a great way to simplify all of your spendings. However, you need to have a limit with billing, otherwise, you might end up losing quite a bit of money with the extra expenditures and land up in credit card debt.

It is common knowledge that credit cards make it quite easy to make purchases and pay bills, especially when you don’t have sufficient balance in your bank account. Also, you must have learned from your parents that credit cards help to increase your credit score. Maybe, you also know that credit cards make it easy to get approvals for loans and mortgages. But have you ever wondered about the possibility that your parents may not have told you everything about credit cards? Don’t worry. This is the perfect guide for you. Here are some of the important credit card lessons that your parents probably forgot to teach you. It is called credit card for a reason The most important thing to understand is that credit is simply a loan that a bank gives you for a specific period of time. You cannot call that money your own. You are obliged to repay it, with interest, before the due date. Making timely payments is crucial This is a hard-hitting truth, but the bank is not your personal property. Therefore, it will not wait for you to make the payment. The more you delay, the more you will be asked to pay in terms of late fees.

Credit cards have become very essential these days, especially if you want have a good credit score. With banks checking the credit history of people before approving their credit card application, it is difficult for people with a bad credit history to qualify for a credit card. A secured card is the only way to establish credit for such people. If you are looking to build or rebuild credit with a secured card, read on to know more about secure credit cards, the applicable charges, and how to use them to get great benefits. You Might Also Like: All You Need To Know About Credit Card Fraud What is a secured credit card? A secured card is a card, which requires a collateral deposit in cash. This deposit becomes the credit line for the account. You can use the deposit made by you in the account. You may be able to add to the deposit in order to extend the credit. What kind of charges are applicable? Avoid any card that requires you to pay an application fee. Secured cards do charge an annual fee, but it varies from card to card. What amount do I have to deposit? This amount will vary according to the card.

If you are a credit card owner, there is a great chance that you could face a fraud like millions of others in the world. With a significant rise in the use of credit cards, majority payments are now made electronically, which has led to a rise in the occurrence of credit card frauds. Types of frauds There are different types of credit cards frauds, and they change over time as technology advances. These are the two main categories of fraud. Card-not-present frauds This is the most common type of fraud, and it occurs when the information of the cardholder is robbed and used in an unlawful manner without the presence of the card. This fraud occurs on the internet and could be a result of phishing emails that are sent by fraudsters acting as credible institutions to rob financial or personal information. You Might Also Like:    Setting Spending Limits With Your Bank Or Credit Card Card-present frauds This has become less common today, but it is essential to know about this type of credit card fraud. It takes the form of skimming, wherein a dishonest seller swipes the customer’s credit card into a device that stores the information.

What good is a credit card if doesn’t earn you extra rewards every time you go out and spend? The claims of simple rewards that fulfill all our dreams in advertisements may not always be true. For people who love to travel, credit card travel rewards can be very valuable because they can offset the costs of flying in and staying at certain expensive airlines and lodgings. However, if you aren’t a frequent traveler, you simply don’t earn the required amount of rewards to avail the benefits. Moreover, you might find it extremely difficult or impossible to redeem your rewards for the specific reservations you need. Therefore, for the average credit card user, cash back rewards are simpler and more exciting. To sum it up, the best option for you depends on what you want. If you are the kind of user who does not want to book last-minute tickets or travel first-class, but wants to sit back, relax, and redeem your rewards easily, cash back is the best option for you! You Might Also Like:    Here Are A Few Things To Know About Credit Score Predictability and consistency While different airlines and hotels offer a multitude of reward programs, with cash back rewards, you will always be able to estimate the worth of your earnings.

If you vouch by credit card rewards, you must be aware of credit card churning. Credit card companies offer signup bonuses that allow you to earn a bonus if you spend a particular amount within a specified period. Most reward cards come with this offer. Credit card churning is the practice of consistently opening and closing a credit card to benefit from the bonus time and again. If you do this with different credit cards, you can generate more rewards than what you could with a single card. Here is what you need to keep in mind regarding credit card churning. Have no outstanding balance The primary purpose for churning credit cards is to gain rewards from card issuers. If you have an outstanding balance, you will end up paying fees and interest on the same. This will lower the benefit you get from the card. You need to ensure that you only spend an amount that you will be able to pay. You should not try to earn a bonus when you are struggling to pay off the balance on your card. It could get you in a debt trap. If you manage to make your payments on time, you can avoid the late fees and build a good credit score.

There is no quick fix to building a better credit. The only way to increase your score is by making timely payments and being financially disciplined. You should only apply for credit when you think you have the ability to repay the same on time. Many people believe in certain myths about building credit; however, they do not help you achieve a higher score. We debunk some of these myths here. You can deal with hard inquiries on your report There can be two types of inquiries on your report, soft and hard. A hard inquiry can be generated when you put forward a loan application and the lenders look at your credit report. Many consumers believe that if they look at their credit report every day, it will lead to soft inquiries and reduce the number of hard inquiries. However, there is no connection between the two. There is no limit on the number of inquiries you can have on your report and there is no way you can change the number of hard inquiries on your report. One should opt out of offers for credit cards Most have a myth that opting out of a credit card offer will lead to less number of inquiries on their reports.

If you have ever borrowed funds, you will be aware about the importance of a credit score. Lenders base their decision to give out loans on your credit score. Your credit report will show your credit score, and it will provide all the details about the debts you have had in the past. A score exceeding 800 is exceptional, while a score exceeding 700 is good. Most individuals have a credit score ranging between 600 and 750. If you have a higher score, it shows that you are financially responsible, which reassures lenders that you will be able to repay debts in future. A credit score that ranges between 300 to 500 is considered very poor. It is difficult to get a loan application approved with this score. A credit score between 500 and 670 is considered fair, but the chances of loan approval are still low. Applicants with a score ranging from 670 to 740 are considered good, and there are fewer chances of them defaulting on repayments in the long term. Further, applicants with a score from 740 to 800 are rated very good and are likely to receive better interest rates from lenders. Lastly, any score above 800 is considered excellent, and the applicants will be on top of the list of lenders.

Often, credit card debt can get really overwhelming for most people. Also, you may find that your Individual Retirement Account (IRA) is your only way to get out of squeezing the last bits of your paycheck to repay the balance off of your credit card. Thus, you IRS account is your first option pay off all your credit card debt. It can prove to be an easy option, but is it worth giving up your entire retirement savings to pay off your credit card debt? Paying extra penalties You need to really understand the terms and conditions of your IRA. First, you are liable to pay penalties if you withdraw from your account earlier than you are supposed to, that is before your retirement. For example, in a traditional IRA, you need to pay income taxes, and withdrawing the money before the age of 59 and a half would attract a tax penalty of 10%. In the case of a Roth IRA, you can withdraw the funds without paying any taxes, provided that the money has been in the account for more than 5 years. The reason behind this withdrawal being tax-free is that it is paid for with after-tax dollars, which means it can be withdrawn without any tax liability.

A large number of healthcare providers are offering an option to the patients to charge their cost of medication and treatment on their medical credit cards. These cards are offered by various financial services firms and are meant for consumers who are paying out of their pocket for those treatments that are not covered by their insurance policy. A medical credit card is offered with a deferred interest payment option, allowing consumers to enjoy a zero-interest charge if they pay the balance amount within a specific period of time. If your insurance does not cover for a specific treatment, this card is a perfect solution for you. However, there are a number of concerns associated with medical credit cards. Cons of a medical credit card The card comes with a number of confusing features like deferred interest payment option. This could cause the consumers to end up paying huge interest charges. Sometimes, the consumers may be charged upfront for the treatment they did not receive and with this, they end up losing the opportunity to negotiate the prices with providers of health care services. If you get an opportunity to negotiate the charges with the service providers, you can end up saving more money than that in a zero-interest plan.

How often have you made a purchase and were offered a way to pay for it over a period of time? Did the retailer offer you a plan where you can repay the amount within 12 months with 0% interest? This is a credit card offer. Over the last few years, there has been an increase in 0% financing from retailers. Before you fall for the trap, it is better to gain information and learn about the finer details of these types of offers. Here is everything you need to know about 0% financing from retailers. Interest postponed is not interest denied When a retailer offers you 0% financing, it can often be misleading. Before you are tempted to accept the offer, you need to consider the terms involved. For example, if a card has a promotional offer in which your interest will be waived for a specific period of time, to make the most of the waiver, you will be required to pay the entire loan amount within that specific period. However, If, for certain reasons, you are unable to make the payment, you will be charged interest. On your outstanding balance, you will have to pay accumulated interest.