8 de abril de 2009

"Credit Card Rating: Tips to Use your Credit Card Wisely"

Credit scores and credit card rating (or the APR, annual percentage rate, as we know it) are two financially related categories which can determine whether or not financial institutions will lend money to borrowers.

Before an individual can acquire funds from a bank, credit union or other type of lending institution, the lender will check the credit ratings and credit scores of the applicant in their determination of whether or not to lend money to that particular person.

You have to be fully-aware of the pros and cons of appropriately using credit card because if not, you may end up with a huge credit card debt that can make you have a bad credit rating.

A good credit rating will prepare for a happy future too. Choosing a credit card is sometimes a really difficult decision. The credit cards features such as the APR (annual percentage rate), annual fees, repayment requirements are important things to consider. But maybe it is more important to know about how to use properly a credit card. Perhaps you need some specific advice about that, subsequently I hope these tips can help you:

1 - Don’t recklessly and unnecessarily apply for Credit Cards: every time you apply for a new credit card, an inquiry is made on your credit report. The more inquiries which are made, the less likely it is that lenders will provide you with credit.

2- Keep Overall Spending on Credit Cards to a Minimum: this will keep the credit card debt on each individual card to a reasonable amount and it will make it more likely that you can pay off your credit cards in a timely manner.

3- Try to Decrease Credit Card Debt to 10% or below: doing so will show other lenders that you have a good enough credit card rating to be given a higher credit card limit yet you choose to keep your balance low by paying off current debt on a continual basis.

4- Don’t Close Unused Cards: try to resist the urge to spend any money using that particular credit card yet keep it open. Thus, the cardholder is establishing a credit and helping to increase their credit card rating in a favourable way.

Remember, we are living in a time of global economic crisis; so use wisely your credit card and ensure the good and safe future you deserve.

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