having a credit card

Having a credit card - advantages and disadvantages


Many keep on carrying the debt and keep on paying the minimum balance of the total amount, what ever it says. But remember when you are paying the minimum amount you are also paying the interest on the remaining balance.

Imagine about 10 million people paying the minimum due amount to maintain the Credit card account. Now if each person is paying only $10.00 per month as the interest.
Then the credit card company is earning about 100 million dollars per month just by receiving the interest. This amount calculated is how ever very minimal the actual figure might go higher.

In this article we shall present all the Advantages and disadvantages of keeping and using the credit card.

There are logical answers of a major question that I Can not compromise with credit card debt and I am paying the minimum amount to maintain the credit card for my credit rating. Why should I keep the card?

In survey we found the very good and logical answers regarding above question from the clients of the Credit cards. Following are the answers.

1. This one is a good example of having a credit card: I am able to pay bills on time, while increasing and establishing my credit score.

2. This one is good example of having a credit card: I get a rental car easily from the rental company.

3. This is wrong: that Credit card protected my purchases from theft or damage. This is wrong; with the newer technology of theft of credit cards you can not claim this any more.

4. This one is a good example of having a credit card: I reduce 3% to 5% off the cost of some business expenses with no effort. It was automatically from the credit card issuer.

5. This is wrong: I get one free airplane ticket for a trip. Again it is the wonderful benefit but it hardly has any value. During the one year of using the credit card heavily you can have theft of your credit card which is more damaging as compared to a free ticket with the value of $300.00

6. This one is good example of having a credit card: I stayed in a hotel where the payment method is by credit card only, no cash.

7. Credit rating:  There is only one way to increase your credit rating, always pay regularly

each month and your credit rating shall go up.

8. If you don't try or ask to redeem. You make a lot of miles via paying through credit card, plus rebates and points are there remaining unused on your card and expire after certain months.

9. People having credit cards, usually carry a balance. Only about 40%- 45 % regularly pay the balances in full each month.

This is where the catch is for credit card issuer: Remember when you are paying the minimum amount you are also paying the interest on the balance remaining. As we have mentioned above that the amount builds up to millions of Dollars from the 40% - 45% people who are paying the minimum amount to pay each month to keep their credit card and also do not want to go towards the bad credit side.


10. If you have no idea what benefits the cards offer. If you are not a regular caller to your credit card issuer than issuer shall never call you from his end to let you know about the advantages. Each advantage is in a paid $ form from the credit card issuer, so they shall avoid to tell you the benefits by all means.

So now you know that there are plenty of reasons to keep a card.

Read more.

1. Rental car coverage. Waive the rental car companies' expensive coverage. Cover our deductible and charges such as "loss of use" that aren't part of our auto insurer's plan.

2. Rewards. Plane tickets, hotel stays, cash back, discounts etc, pile up fast with heavy use of credit card.

Keep track of point, mile or rebate total on each; regularly cash them in for your enjoyments. If you are not sure about your rewards card, call the issuer and take all the informations. Ask them to write you a letter in detail about rewards on your credit card.

3. Credit improvement. If you have been to a bad credit but then paid all the balance to Credit card issuer or Collection Company. Now if you want to improve your credit rating there are various credit card issuers and issue the limited$ 600.00 cards. If you pay regularly your credit rating improves from bad to balance.

As long as you pay your bills on time and use only a portion of your credit limit, so under 20% is good.

4. ONE BIG POINT ABOUT CREDIT RATING: Purpose of Good credit rating; These days, good credit ratings are essential to get loans. It becomes almost impossible for those without good credit scores. You can not buy a house or business or good cars.

Credit information to check your credibility and analysis of personality is used by mortgages, insurance companies, landlords and employers, so always be thought full about your credit ratings.

5. My Experience: My car was toed away to a repair center by a toeing company.
The toeing company charged for $100.00 instead of one time, one day toeing charges which were $40.00.

I then called the credit company and explain the detail to the card issuer within half an hour. So the credit card issuing company removed the extra charges from my bill and paid only $40.00 to toeing company.

6. How to make complaints: It is your Legal right to make such complaints to your credit card issuer by phone and in writing. If you make your initial complaint online or on the phone. Keep the record of full name of the person you talked, time and date of the call then Follow up with a letter sent by Fax (always) and keep the paperwork.

7. Identity theft by check or credit card. When you pay with a check or a credit card, you might get theft. And once a thief takes the funds out from your bank account, it takes a long time to recover the amount.

In a case of ID theft from account occurs, report the theft typically within 2 days of the account statement being issued. The bank or organization erases the amount from the credit card. Old Credit Card is canceled immediately and new one is issued.

8. Purchase protection provision by credit cards. Higher amount credit cards provide you with several types of insurance, including coverage if something you buy is stolen or damaged.

9. Always read the fine prints.It is important to read all the terms and conditions while getting a Card. If you can not, use a magnifying lens.

The fine print in your credit card agreements can be overwhelming, but there are a few key things you need to know.

10. Charging regular bills to credit cards that are promptly paid off each month is a good method to increase your credit rating but never forget to pay the balance within time limit. This shall increase your credit rating fast.

11. You can extend the manufacturer warranties on the expensive items, for example TV Computers, Furniture etc.

Example: Platinum Master Card doubles manufacturer's warranty to extend up to another year after the original expires

12. INTEREST FREE LOANS: Wrong thing to think about. Credit cards companies can change any rate or term on their credit cards loans issued to you. But assuming you want to buy or lease a franchise giving you a good income then you can take the advantage of free Loan

Who should not keep a Credit Card?

People who can't control their spending; if so then it is wise to get your self away from credit cards.

If there is balance remaining on your card, then look for a low-rate card to pay off your debt. During this time just forget the rewards.

TIPS.

Never use credit cards in small grocery stores.

Never use credit cards in Parking lots.

Always have some cash in your valet ($100.00 – 150.00)