Understanding Credit

 

     Credit Cards can either be a convenience or a nightmare.  Many people have started their own business using their credit cards while others have filed bankruptcy.

 

     Check your credit every six months with the credit reporting agencies, or have it monitored inexpensively by one of the available monitoring services.

 

 

 

 

 

The Rewards Card

 

•   Credit based upon the limits of the card issuer. 

•    It is the most prevalent card available today and by far the most versatile.  

•    Your eligibility is determined by your credit rating, 

•    The "rewards" offered is only limited by the imagination of the marketers 

•    The rewards may range from cash rebates to luxury cruises and more.

Many factors involved when deciding which is the best rewards card to choose.

    •    The Initial Offer 

    •    The "Grace" period 

    •    Default Consequences 

    •    Your Specific Use 

    •    The Methods Of Calculating The Interest 

    •    Eligibility

Just to name a few.  So go over the details before deciding on which rewards card works best for you.

 

 

•    Credit is not exactly issued to the cardholder.

•    The cardholder opens a $500 account 

•    Card is then available for the same amount

•    As available credit is reduced, more funds are needed for      account

•    Commonly used to rebuild credit that has been damaged 

 

 

The Debit Card

 

•    This card is technically not a credit card, but a "cash" card.  

•    Through Visa or MasterCard  

•    The debit is against the cardholders checking account 

•   Acts as cash with the added convenience of credit card acceptance

•    Low risk of loss compared to cash  

•    No qualifications other than having a checking account

•    Convenience rather than a rewards card eliminating interest

•    Good for budgeting