Credit Cards

Credit cards are double-edged swords, they cut both ways. If you find yourself being hurt by them, cut them up, repay your debts, and never use them again. Credit cards are fun; but a best practices list could be handy.

Credit cards charge interest on any balance remaining on the card after the payment date on the statement. The interest rate can vary from one credit card to another, but if you clear the balance in full each month before or on the payment due date you will not get charged any interest.

Interest rates on this type of mortgage fluctuate and have been on the rise, contributing to a variety of fiscal problems, as well as to a rising number of foreclosures. Refinancing and locking in a lower fixed rate of interest may be the right strategy for you if you’re starting to feel the pinch of higher interest rates. Interest charged could exceed the low payments your provider suggests, and you could see the debt snowball as your credit card provider profits. Interest rates and fees will be higher than those of regular credit cards.

Bank of America, for example, saw its default rate jump to 12.5% in May from 10.47% in April. That's a staggeringly fast rate of deterioration, and hints at shoddy underwriting standards compared to other banks.

Compared to cash and checks, credit cards allow consumers to purchase goods and services from around the globe and on the Internet with enhanced buyer protection. With the advantages of their convenience, however, also come hidden risks that have trapped many Americans in a cycle of expensive debt.

Merchant gift card purchases help you earn substantial credit card rebates. You can use the gift card for future purchases or even give it away as a gift! Merchants hate it because they have to pay a fee to the bank for using the service. What would they do?

College student credit cards allow you to find the most benefit in funding your education, your expenses and even a little fun (just a little) while you are away at school. There are a variety of credit card companies that offering multiple college credit card products targeted for students.

Balance transfer credit cards are those that make an excellent choice for transferring balances from one card to the other. The main purpose behind transferring balances is to remove debt from a card with a higher interest rate to one with a lower interest rate.

Prepaid cards aren’t really “credit” cards, because they aren’t extending any credit to you at all. You give the card company your own money, and they usually deduct several types of fees from the funds that you give them. Prepaid tools let humans manage their personal finances so much better than post-paid because they hold you to a budget. You run out, you must get more.

Financial literacy is something that our public schools should teach starting as early as possible, because clearly this is not something being taught in the home. Financial planners all sing the same tune when it comes to paying off debt: tackle the debt with the highest interest rate first.

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Information shared here does not constitute financial, legal, or other professional advice, and no attorney-client or confidential relationship is or should be formed by use of the site. This article is intended to provide general information only and does not give advice which relates to your specific individual circumstances. Information in this document is subject to change without notice. Any link-listing or ad-listing on this site does not constitute any type of endorsement.

Gurmit loves travelling; he has been over 70 countries. He speaks fluent Cantonese, Polish, Hindi, Punjabi and English. Gurmit is an author, writer, insurance and mortgage expert. He frequently writes on various topics of interest to his readers. Gurmit Singh is a licensed mortgage expert with Dominion Lending Centres Mortgage Villa.

Gurmit Singh, mba
Mortgage Expert
M08009905
Dominion Lending Centres Mortgage Villa (11574)
Email:gurmit@gurmitsingh.ca
Website: http://www.gurmitsingh.ca