Author: Greg Smith

At one time or another most all of us apply for and get more credit cards than we need. We feel like we have to be able to purchase almost any type of item at anytime, whether we can really afford it or not. Having several credit cards allows one to buy products and services at will. Is that a good thing or bad? Learn more at http://www.apply-credit-cards.com/

There are many companies offering credit cards and loans online, but all may not fit everyone's needs. A credit card is a great financial tool that needs to be used wisely and cautiously. Never allow yourself to get so far behind on your credit card balance totals that you can only afford to pay the minimum payment amount or small amounts each month towards the reduction of your debt. That is the interest rate trap. Once your cornered on paying minimum amounts, you will most likely be stuck there for years if not for a lifetime.

However, having credit cards can be a positive, productive personal finance tool and does not have to be a negative to your credit status or your lifestyle. A couple of key points:

• Convenient to use and carry
• Offers valuable consumer protections
• Use it with caution and good judgement
• Pay off your monthly bill in full each month,
• which eliminates interest charges

Having credit cards is a priviledge and huge personal responsibility. You must utilize and manage your credit rating wisely and carefully at all times. The saying ' if you can't afford to pay cash, then you can't afford it ' is a true statement and we should all take heed to its warning. Using creditcards in this manner makes them your friend and not your foe. Having credit cards in your name is not bad just take care not to go into debt for more than can repay. Doing so will only serve to damage your credit rating and it can and will create larger credit problems for yourself into the future that may be difficult or impossible to repair.

When shopping for a new credit card, comparison shopping is important, because it can save you money. Be sure to consider all of the costs and terms of each of the credit offers. These can make a real difference in how much in fees and interest charges you will possibly be paying each month. Be sure to compare these costs with any of your existing financial instruments, cards, loans, mortgages, etc. You may be able to replace some of your current debt with less expensive options. Some of the costs and terms to consider are the annual percentage rate (APR) for goods and services as well as for any cash advances you may request, the annual fee, and the grace period. Also compare other fees, late-payment charges, and over-the-limit spending fees.

About the Author

Greg Smith publishes timely information on Credit Card issues at http://www.apply-credit-cards.com/ . This article may be freely reprinted as long as the author's information and URL links remain intact.

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What Debts Show Up In Your Credit Report?

A recent amendment to the federal Fair Credit Reporting Act (FCRA) now requires the credit bureaus to provide consumers a free annual credit report upon request. Access to the free credit reports has been phased in beginning December 2004 in the West and will finally be nationwide by 1 September 2005. This is good news to consumers.

Now each year, you can request a copy of your credit report and check it for inaccuracies and evidence of identity theft. If you discover errors or missing items in your credti report you can petition the credit bureaus to make the necessary corrections (see Credit Reports for additional information.

You are entitled to a free credit report from each of the three natonal consumer credit reporting companies, and many credit counselors recommend requesting all three since the information contained in each of the credit reports may be somewhat different. Also, it is wise to spread out your requests throughout the year so that you can see any sudden changes that might arise (for example case you are a victim of identity theft).

For more detailed information on how to get your free credit report, read Your Access To Free Credit Reports and "Free Credit Reports - Have You Requested Yours?"

What Is Your Current Credit Score?

But while you are now entitled to receive a free credit report from each of the Credit Bureaus, they are NOT required to provide you with your credit score for free and therefore the consumer credit reporting companies do not provide you with a copy of your current credit score when they send you you free credit report. Instead, they charge you to get a copy of your credit score. (For an explanation of the difference between your credit report and your credit score, and what they are used for, see Credit Reports vs Credit Scores

Nevertheless, you can obtain a free copy of your credit score from certain third parties. Click here, if you don't know what your Credit Score is.

As you make corrections to your credit report and begin to pay down your debts, you can watch your credit score rise.

Consumer Credit News

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