Smith Business and Finance

How many times a day do you receive offers through email or phone for free credit cards with money back schemes, low introductory rates and other perks of credit cards? All banks and financial institutions vie for maximum customers by pouring umpteen perks to tempt you, the customer, in one way or the other.

Remember that a credit card is just a form of borrowing money that has to be paid later. However, it is better to choose a credit card with good rates to avoid ending up paying too much interest to the banks. Make it a point to compare credit card terms and fees before opening a credit or charge card account. Once you find the credit card that has an interest rate that best fits your needs and budget, you can then open an account with that bank.

The annual percentage rate is the measure of the cost of credit the bank offers and is expressed as a yearly rate. Make sure you are aware of this rate before accepting a credit card as some credit card plans have interest rates that change when other economic indicators change. This plan is called a variable rate program. In such a case, when you first get the credit card, you may be offered 5% interest, but in case of index changes, the interest rate may go up to 8%. This means you will later have to pay more interest with the increased interest rate! So confirm if the credit card offers a variable rate program or ‘fixed rate’ program where there is no change in the annual percentage rate, even when economic indicators change.

It is beneficial for you if the credit card you have has a ‘grace period’. This is the period where you can avoid finance charges by paying your balance before due date. This is because with a free period, you will be sent your bill at least 14 days before the due date, thus giving you enough time to pay. Check if the credit card charges annual membership or participation fees or any other costs like transaction fees. It is better to choose the credit card company offering the least ‘extra costs’! This is because the more extra costs there are, the more money you have to pay the company!

When applying for a credit card, it is better to first consider if the credit limit is up to your requirements. Then only is it beneficial for you to apply for the credit card. To get the best rate for your credit card, make sure you understand all terms and condition of the card before accepting it. This is to avoid any future misunderstandings and misconceptions with the credit card company.

Of course, the main point that is taken into consideration to get the best rate for your credit card is your credit score. The better the credit score you have, the better will be the rates the credit card company offers you! This is the reason it is always advisable to have, and maintain a good credit score!

If you are a college student, you are probably concentrating on your studies and trying to get an education that will benefit you in the future. One thing that you may not be thinking about is how to handle your money, and failing to do so can leave you in a pretty big financial mess by the time you are out of college. It is important that you take control of your finances now if you want your financial future to be bright. The following are some tips that can help you with your finances to avoid any college financial disasters.

Tip #1 – Only Use Credit Cards in Emergencies – Once you get a credit card it can be all to easy to start racking up the credit card debt. This is a bad way to start out and you will probably end up with bad credit if you are using credit cards all of the time. Remember, the money you spend on credit cards will need to be repaid. It is best if you save your credit card for emergencies instead of buying that new pair of shoes or paying for an evening out.

Tip #2 – Pay Off the Balance Every Month – It is also important that you pay off your balance each month if you have a credit card. Leaving a balance on the card can result in you paying extra money on interest, so you will save money if you pay off the balance every month. This will also keep you from getting in credit card debt over your head as well.

Tip #3 – Pay Bills on Time – Now is the time to start building your credit history, and you can do this by always paying your bills on time. If you fail to pay your bills on time, it can get quite expensive. Many companies will charge late fees if you do not pay on time and your interest rates may go up as well, costing you even more money for being late.

Tip #4 – Start Saving Now – Many college students do not realize how important saving really is, but if you can start saving while you are in college, you can reap from great benefits when you are older. Saving now will get you in the habit of saving, you will earn money from the money you save, and you will have extra money set aside in case of any emergencies as well.

Tip #5 – Look for the Best Checking Account – You can actually save a great deal of money if you look around and find the best checking account. Look for an account that has no fee for starting an account and no minimum balance. You may also want to check into any debit card fees, and fees for deposits of withdrawals. Some banks will actually offer totally free checking for college students, so take advantage of this and you can save a great deal of money every year.

A person’s finances are one thing that determines the way they live. It determines your lifestyle such as what type of car you drive or the area in which you live. Controlling your finances is a very important part of a person’s life.

Since just about everyone has a checking account it is important to know how to keep that account balanced properly. If you do not keep a close eye on your account then it could end up costing you a lot of extra money. If you write one check that you do not have enough to cover then it could spiral way out of control.

You will be charged a fee for the insufficient funds which may cause another check to be returned which causes more fees to be added on. This is one reason for keeping a close eye on your checking account. It really isn’t as hard as it may seem you just need to remember to keep a record of everything you spend no matter how small. Review your statements each month and compare them to your records.

The next big step that most people take is by receiving credit cards. Yes it is nice to be able to purchase items on credit, but you still have to pay for that luxury and with an added interest fee. Therefore, you need to be careful how you use your cards. This is very important when it comes to controlling your finances. Try to limit them to purchases that can be paid off within the thirty day period to avoid high interest rates. If you do owe a large balance then try to pay extra each month, not just the minimum payment. The more you pay the more money actually goes towards the balance saving you on interest. .

There are also a lot of smaller ways that you can help in controlling your finances. For example, be careful and control any shopping sprees you may be thinking about, even if it is for those Christmas presents. Phone bills can sometime be quite a shock so if you are making long distance calls keep a record so you will know how long you talk and how often. The same thing goes for cell phones, so be careful not to go over your minutes as this can add up very quickly.

Don’t go in debt for large items such as automobiles if you are not financial able to afford the payments. Be careful when investing in stocks and bonds make sure you understand exactly what you are investing in and the amount of risk involved. Following these tips can help you in controlling your finances.