My Credit Card Machines 802

Making A Credit Card Work For You
By Max Hunter

Boosting Your Credit-Rating With A Well-Managed Credit Card

A considerable obstacle standing between many Americans and the
consumer goods they consider a necessary or desirable part of
life is a ready way to pay for them. From a new piece of
furniture to a car or even a house an age old problem stands in
their way: MONEY – or rather how to get hold of it.

A lucky few earn enough to never have to worry about this
problem. Many more consumers have lenders simply falling over
themselves with offers of credit. For a lot of people, however,
a poor credit history or a low credit rating stands as an
inexorable difference between living the life they want, and
looking with perpetual envy at their neighbor. Even relatively
low cost essentials, such as a vacuum cleaner or television set,
can be too expensive if a way of spreading the initial cost is
not available.

But it doesn’t have to be that way. Credit is available for
those with a lower credit scores, but better still: Borrowing
even relatively small amounts can be a great way for borrowers
with a "chequered past" to improve their credit rating. A better
credit score can lead to an array of greater awards in the
future, including better APR deals and larger credit lines. If
you have a poor credit rating and dreams of one day buying a
house, a credit card is the first logical step to pulling up
your record and getting a mortgage.

Making regular monthly payments to an agreed timescale on a
credit card is – short of scooping a massive inheritance from a
long lost millionaire aunt – one of the single best ways to
improve your credit score. So long as you don’t take on more
debt than you can afford, credit cars are ideal: payments are
reasonably sized and flexible, and if you budget properly can be
structured towards an ultimate payoff

Moreover, you have to be wise to how credit card companies
work. Credit cards are designed by financial institutions as a
way to keep you making minimum payments for years to come – and
enslaved to large interest payments from which they make many of
their profits. Borrow only what you can, and pay back the debt
as quickly as possible.

Of course, even when dealing with the very best lenders, trying
to secure credit card financing with a lower credit rating does
throw up some problems.

Financial institutions will usually insist on a higher interest
rate and sometimes may even ask for a guarantor. The interest
rate can be up to three times what a good credit borrower would
be offered, although in these days of low interest rates, that
need not be prohibitively expensive.

Always try and walk before you run. If you have a high interest
rate on your credit card, borrow sparingly and pay back quickly.
That way you’ll build up your credit score and be able to get
cheaper APR in the future, making larger purchases then far
cheaper over the fullness of time. If you make a large purchase
at a high interest rate and can only pay back the minimum
payment each month, with interest charges you could be paying as
little as just one of half of a percent of the existing balance
each month.

Always keep you balance under control. It can be easy to let
your credit card spending run in excess of what you had planned.
If you have concerns that you might do so, ask the lender to
impose an easily manageable credit limit. That way you won’t
spend a dime more than you can afford. The worst time to gain
unmanageable balance is when interest rates are at their
highest. Do that and it can seem like a lifetime before you get
things back under control.

High-risk borrowers should always exercise extreme caution
before entering into any financial obligation. Before even
thinking about taking on any new financial obligation, consider
your budget and ask yourself how much – if anything – you can
afford. If you decide that you can, you should still be careful
about choosing the right deal.

However, if you can get a credit card that you can manage well,
the benefits are enormous. It will enable you to spread the cost
of larger purchases over manageable periods of time; you can
fill holes in your budget (that are so common in the run up to
pay day); and build up a credit history that will enable you to
get better APR on borrowings and allow you to borrow money for
larger items.

An auto loan or mortgage may seem a distant dream for many
Americans with poor credit histories, but everybody has to start
off somewhere. Get a credit card, manage it well, and you’ll
soon get to where you want.

About the Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Home Loans or
any other type of credit issue please visit us at
http://www.creditcardunlimited.com

Source: http://www.isnare.com