Taking credit and buying some thing you like may give you pleasure at that instant but it is going to be a cost you extra money. You shall pay back the entire money you have taken from the lender with the interest in the stipulated time. You can try buying some thing that is very costly on loan. But its value shall increase in the future. For this kind of investments you can consider taking a loan. The good example is a home loan or car loan. You can try some thing like a car for daily traveling needs. While buying some thing every one shall ask them self that weather that is absolutely needed or not.
You have to be careful about taking a personal loan or buying some electronic gadget with monthly payment option. You shall do this only when it is absolutely needed. Credit card companies. lenders,shop owners are the business people around you who offer this loan facility. You shall understand that they are doing it to make money but not for charity. Once you take this kind of loan, you need to pay your valuable money to them in the name of processing fees and compound interest.
It is true that you can get a home loan approval only when you have good credit history. You can get this good payment history only when you take a loan or a credit card. When you pay your monthly bills on time your credibility will increase. As a result you will have good credit score and it will be easy to get a mortgage loan at lower interest rate. But you shall not fall in the trap of the debt to get the good credit report. You can have a single credit card and use it in a controlled way to establish your credit.
You have to be careful about taking a personal loan or buying some electronic gadget with monthly payment option. You shall do this only when it is absolutely needed. Credit card companies. lenders,shop owners are the business people around you who offer this loan facility. You shall understand that they are doing it to make money but not for charity. Once you take this kind of loan, you need to pay your valuable money to them in the name of processing fees and compound interest.
It is true that you can get a home loan approval only when you have good credit history. You can get this good payment history only when you take a loan or a credit card. When you pay your monthly bills on time your credibility will increase. As a result you will have good credit score and it will be easy to get a mortgage loan at lower interest rate. But you shall not fall in the trap of the debt to get the good credit report. You can have a single credit card and use it in a controlled way to establish your credit.
Credit cards shall be used only to buy planned goods and shall not fall in the temptation of offers while we are on the move. We have to be careful before we accept the promotional offers that the card issuer give as most of them try to benefit the issuer rather the customer. Theft insurance, disability insurance on the cards are not that much useful as they do not cover the promised deals.
Prepaid gift cards are not suggestible as the issuing prices and charges are high and customer shall use them with in a short span of time. In most of the cases our friend to whom we gifted the card will not use it before it expires. Giving a check, cash or gift card on a special occasion will be much better as corresponding charges to get them is less and offer longer time to use.
Using credit cards abroad costs you extra and esquire about that before using. Alternatively you can use debit or cash equivalents. Getting a debit card is very easy and in many cases you will be just getting it with a bank account. No bank will ask about your credit score to issue debit card. Your money from the bank account will be used to pay the shopping that you made in the case of debit cards. As you can only spend the money that you have with you. This will give you a sort of financial discipline while using the bank cards which is not the case with respect to credit cards.
We can use balance transfer option between the credit cards to save the extra interest and plan to carefully to take the full advantage of it.
Related Posts :
Buying a house with bad credit
Take Advantage of Tax rules and save Money
How to make money with better investment
Invest Properly to Create Wealth
Prepaid gift cards are not suggestible as the issuing prices and charges are high and customer shall use them with in a short span of time. In most of the cases our friend to whom we gifted the card will not use it before it expires. Giving a check, cash or gift card on a special occasion will be much better as corresponding charges to get them is less and offer longer time to use.
Using credit cards abroad costs you extra and esquire about that before using. Alternatively you can use debit or cash equivalents. Getting a debit card is very easy and in many cases you will be just getting it with a bank account. No bank will ask about your credit score to issue debit card. Your money from the bank account will be used to pay the shopping that you made in the case of debit cards. As you can only spend the money that you have with you. This will give you a sort of financial discipline while using the bank cards which is not the case with respect to credit cards.
We can use balance transfer option between the credit cards to save the extra interest and plan to carefully to take the full advantage of it.
Related Posts :
Buying a house with bad credit
Take Advantage of Tax rules and save Money
How to make money with better investment
Invest Properly to Create Wealth
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