How To Use Your Credit Card For Ultimate Financial Advantage

Using a credit card wisely is an important step in building a great credit rating. If you're trying to re-build your credit or if you're young and just starting out, pay close attention the next time you receive a new card offer in the mail or online. When you're trying to build a positive credit history for yourself, using the right credit card makes sense. Making small purchases and then making your payments on time each month is a simple, reliable way to build an outstanding credit report.

WHAT TO LOOK FOR ON A CREDIT CARD APPLICATION

If you receive a credit card application that appears to offer a low monthly interest rate, don't make a decision until you turn it over and closely examine the Disclosure Box. In it you'll find a more important measure of credit terms - the Annual Percentage Rate, or APR. By federal law, the Disclosure Box will also tell you whether or not the card has what is called a grace period - a number of days, usually 25, until your purchase starts to accrue finance charges. If a card has a reasonable grace period and you pay off your balance at the end of each billing cycle, you won't have to pay finance charges. It isn't difficult to find credit cards that offer these grace periods, so if the Disclosure Box doesn't declare one then throw the application in the trash and look for a better offer.

If you don't have any credit history at all, a credit card company won't want to give you a very high credit limit, but that's probably best when you're just starting out. You don't want to be tempted to go into serious debt with your very first credit card.

HOW TO CALCULATE YOUR MONTHLY FINANCE CHARGES

Ideally you want to pay off your balance each month to avoid paying any finance charges, but when that isn't possible it's important to know the actual cost of the items you purchase. The annual percentage rate, divided by 12 months, gives you the periodic rate that will be applied to your outstanding balance each month. You can estimate what your monthly finance charge will be by multiplying the periodic rate times the outstanding balance. It may sound complicated at first, but taking the time to learn this simple equation can make a big difference in how you use your credit card.

When you're able to see how much you actually spend on an item that you don't pay off at the end of the month, it might help you to resist the temptation to over-use your card. An item that you want to buy might be on sale at the time you purchase it, but if you don't pay off your balance at the end of the month then those finance charges can dramatically increase the actual amount you'll end up paying.

USE YOUR CREDIT CARD AS THE STRONG FINANCIAL TOOL

Credit cards are only one of the tools available to help you build a positive credit history. Making on-time payments for other forms of credit, such as rent and utilities, are also important. Depending on your situation, within 1-2 years your credit rating will be improved enough that you no longer need to use your card for new purchases to maintain your good credit. Use these tools wisely, and they'll help build your financial future like no other!

Alain Diza is an Ex-Enron survivor, turned Internet Marketer, Real Estate Investor, and published author who partnered with financial credit industry 'guru' Joe Lloyd, to negotiate the arguably largest & most competitive online selection of highly-targeted credit cards in the industry to date. Get your own free credit card designed specifically for you, at Alain's "insiders-only" site: http://www.onlinecreditcardsdirectory.com

---

Trying to Land a Job? Poor Credit Scores May Hurt Your Chances

Many employers are now looking at an applicant's credit report for hiring purposes. During an interview process a potential employer may request your written consent to access... Read More

The Exact Action To Take When You Find Errors In Your Credit Report

There are times when you may be turned down for credit and you do not understand why.According to the Fair Credit Reporting Act you are entitled to... Read More

Credit Cards or Store Cards - Which Is Better?

Introduction In this article, a presentation is made of the differences between major credit cards and credit cards offered by specific stores to their customers.... Read More

Saving Money with Credit Cards

Having a credit card is a wonderful convenience for those times when you don't have immediate access to your cash. It can allow you to purchase something... Read More

How To Survive In A Plastic World, Qualifying For Credit Card

Let's face it, having credit is no longer a choice. "Don't leave home without it" is more like "can't buy a home without it." Your credit now... Read More

Learn About Prepaid Credit Card

Prepaid credit cards also called stored value card can be ideal for individuals who are unemployed, have bad credit or difficulty obtaining an unsecured credit card. Prepaid... Read More

How To Prevent Fraudulent Credit Card Transactions

What Are Possible Signs of Fraudulent Transactions see at Web Hosting Companies?Customer wants to pre-pay for a yearDomain Name Registration for 5 years or moreOrders using free... Read More

Credit Cards Can Help You Get Out Of Debt

Your credit rating / credit score is based upon how you have dealt with credit previously. If you have always paid the full amount owing and never... Read More

Searching For A Low Interest Credit Card?

These days, people need to very carefully consider what type of credit card they will carry in their wallets. There are so many options out there, and... Read More

Different Types of Credit Cards and Features - Part 1

Just as there are too many credit card companies to count, there seems to be just as many different credit cards, all claiming to offer you the... Read More

Boosting Your Credit Score To Get The Best Credit Card Deal

Making Your Credit Rating Work For YouOne of the basics of getting the most competitive credit card deal in the market is to ensure you have the... Read More

New Credit Advice: Dont Pay off Those Credit Cards!

Credit needed for real estate mortgage financing differs from credit needed for consumer loans. If you need help getting a home mortgage, these credit tips will help... Read More

Keep Your Credit History Clean - Remove A Negative Credit Record From Credit Report

The three major credit bureaus, Experian, Equifax and Trans Union are similar and feature a "Credit Score", which is created from credit report data submitted to them... Read More

How To Choose Your Credit Card Application

The articles and tips provided on this site are intended to help you access credit card offers that suit your lifestyle. By providing you with some basic... Read More

Check Your Credit Before Shopping For That Home Loan

Review Your Credit Score.Nearly every bank, credit union, and mortgage lender relies on a three digit score provided by one of the three major credit bureaus to... Read More