| |
After You Apply for a No Credit Credit Card, Use It Wisely: Here's How
By Rebecca Spitzer
When you are first establishing your credit, you can make a huge difference in the quality of your credit report with some seemingly insignificant actions. Your credit report contains information that is used to create your credit score. Companies use your credit score to decide if you qualify for loans, lines of credit, and other conveniences. It is also used to determine how high your interest rate is for these items. So use your first credit card wisely to save yourself headaches in the future. Here's how:
· Always pay your bills on time. You have probably heard this before, but did you know that as few as two late payments can adversely affect your credit score? Always pay your bill on time or early if possible.
· Pay more than the minimum balance. In many cases, the minimum balance is only enough to cover the interest that the company has charged you for your balance. Too many people let their balance get out of hand because they only pay the minimum balance and interest continues to accumulate. So pay as much over this amount as you can, even if it is only five or ten dollars.
· Use at least one third of your available credit. If you get your credit card and only spend fifty dollars, then the credit-reporting agency will not have enough information to create an accurate credit history. Therefore, your credit score will be lower than it should be based simply on lack of information. So if you have a six hundred dollar credit limit, spend at least two hundred dollars and pay it back faithfully and on time.
· Avoid taking cash advances. Usually, cash advances are subject to a much higher interest rate than regular purchases. This can get you into trouble when trying to pay back your balance and result in late payments.
· Use your card at least once every two weeks. This will help you to establish a credit payment history over the course of a few months. Without this payment history, the reporting agency has no way to know if you will pay any future debt on time.
About the Author
Rebecca Spitzer recommends Find Credit Cards if you wish to apply for a no credit credit card. See http://www.findcreditcards.org/type/no-credit.php for more information.
Article Source: http://www.simplysearch4it.com/article/25680.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/25680.html" as shown above and make it hyperlinked. |
| Some other articles by Rebecca Spitzer | Why Owning a 0% APR Card Could Spell Disaster
Almost everyone gets the offers in the mail for credit cards that claim to provide 0 percent interest. These offers are incredibly tempting, and on the surface they look like a good idea. You could ...
What's Your Credit Score? Not Knowing Could Cost You
When you go online and apply for a credit card, how can you get your results in a matter of seconds? The answer is your credit score. This little number ...
Why Credit Bureaus Are Ripping You Off…And How to Beat Them
When you pay your credit card bills, your loan balance, or your medical bills, this information is recorded and sent to credit reporting agencies, or ...
5 Cons of Owning a 0 APR Credit Card
If you have received an offer recently for a 0 APR credit card, you may have been very tempted to ...
5 Pros of Owning a 0 APR Credit Card
When you get the offer in the mail for a 0 APR credit card, you may be tempted to throw it out, thinking that it ...
Why Paying Your Income Taxes with a Credit Card Is a Rip Off
If you own your own business or have not been deducting enough from your paychecks each week, you will probably owe some income taxes when tax time rolls around. This is never fun, and ...
|
|
| |
|
