Need info on credit cards
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1stly don't get a credit card for the sake of it. You need to check a couple of things 1st
1. What is the interest rate, this is really important, don't get a high rate card it is a waste and not a good way to spend your income.
2. Check the terms and agreements, some cards are out to get you and will even raise your rates for arbitrary reasons. Go online and check the reputability of the company.
3. is there an annual fee, is there a membership fee, is there a one time fee, if you are not careful you may end up owing money before you even use it.
4.what are the default rates if you were ever late once by mistake. most reputable companies will let you slide if you have a good payment history, sometimes life keeps you busy, or you may have thought you paid it when you didn't. A non-reputable company may have a clause that they will raise your APR to a ridiculous amount like 30% or something.
5. never ever use your credit card to obtain cash... unless it is a dire dire dire emergency.. the interest rates for cash are not the same as cc purchases.
6. And finally, charging a little and keeping a small balance is quite healthy for your credit, as it shows other creditors that you are responsible and make timely payments.
if you decide not to get a credit card... I am not sure about India, but here in the US, you can buy pre-paid credit cards. you pay cash for them up front and then you can use them anywhere as a credit card.
1. What is the interest rate, this is really important, don't get a high rate card it is a waste and not a good way to spend your income.
2. Check the terms and agreements, some cards are out to get you and will even raise your rates for arbitrary reasons. Go online and check the reputability of the company.
3. is there an annual fee, is there a membership fee, is there a one time fee, if you are not careful you may end up owing money before you even use it.
4.what are the default rates if you were ever late once by mistake. most reputable companies will let you slide if you have a good payment history, sometimes life keeps you busy, or you may have thought you paid it when you didn't. A non-reputable company may have a clause that they will raise your APR to a ridiculous amount like 30% or something.
5. never ever use your credit card to obtain cash... unless it is a dire dire dire emergency.. the interest rates for cash are not the same as cc purchases.
6. And finally, charging a little and keeping a small balance is quite healthy for your credit, as it shows other creditors that you are responsible and make timely payments.
if you decide not to get a credit card... I am not sure about India, but here in the US, you can buy pre-paid credit cards. you pay cash for them up front and then you can use them anywhere as a credit card.
^^ Artful , from what i hear from friends in my circles , There are some nasty banks in the USA which are only there to suck the blood of the working blue collared class .
Its a nasty situation there . Thankfully that isnt the case now here in India , but times are changing . Right now they are just trying to get people hooked on to this stuff .
Its a nasty situation there . Thankfully that isnt the case now here in India , but times are changing . Right now they are just trying to get people hooked on to this stuff .
This is very true
one has to be very careful here.I have 3 cc's and my APR's are pretty good..and my balances pretty low... I get new offers in the mail daily, and it blows me away when I read the terms of agreements.
Also people here switch around cc's very frequently, as there is always a better offer to transfer the balance to another cc.
I just transfered a small balance to a discover card, and I now have 0% APR on transfer balance until it is paid. While these offers are sometimes good, there are others out there that are horrendous... so it is important to read the small print here.
At the same time, it is important to have them, as lenders look very closely to your overall credit score and payment history here, when it comes to making large purchases like a home. San Francisco is in the top ten most expensive places to buy a home with one of the highest costs of living. You will have to pay about $500,000.00 for a one bedroom home here.. the market has softened here a little lately and it may be possible to buy one for a little less... so this is why credit rating is so important, as not many people can afford that much, and have to get home loans from the bank
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