credit report - Credit Card Hazards That Can Cripple Your Finances

You are pre-approved! Every time I check my mail there is at least one or two pre-approved credit card applications. You get them too, I'm sure. You can even have terrible credit and they still continue to flood your mailbox. And if you just filed bankruptcy you will get more of them than you know what to do with! Credit card debt is so easy to get into--over and over again. Most people don't feel like they are spending real money until the bill comes, and then it's too late. The credit card companies know how to make it very tempting to fall back on any good habits we've created and just spend away. It's hard to get away from, but we have to resist temptation. When establishing good credit, one of the things we're told to do is to get a credit card and then use it to spend wisely. Experts advise us to pay our bills on time and not to exceed the credit limit. However, no one really talks to us when we get that first card about how easily and quickly we hit that limit, or how easy it is to miss that first monthly payment. Once you get behind, it can be really hard to catch up. Oftentimes, credit cards come with introductory interest rates that are nothing or very low. But many times, those rates soon change and you can find yourself with a full balance on your card with an 18 or 20 percent interest rate! That interest rate can then put you over your limit, if your not paying at least the minimum payment, now making you susceptible to over-the-limit fees. Before you know it, you are getting bad reports on your credit reports for credit card debt on a card that you haven't even had very long. Unfortunately, when times are hard, abusing credit cards is all too easy. When the economy is bad and cash is tight, it is all too easy to put your daily living expenses on your credit cards. If there is any kind of pattern like this in your credit card spending, it can build huge credit card debt pretty quickly. If you are not making your credit card payments, the credit card companies do inquiries to verify your address or other information. Every time they make an inquiry on your credit report, it makes you look like even more of a high risk, further worsening your credit history. All the credit card debt on your report, even if some of it is good, can make you look high risk for car loans or mortgages - especially if any of those cards hold high balances. Even worse, that bad credit report can keep you from renting an apartment or getting a job that requires a background check. So keep in mind, as tempting as it may be to pay with a credit card, choose the "debit" option next time. It's normal to risk it all when times are tough, but doing so creates more problems later that can take you years to fix. Credit card debt has long term risks, but if you use credit cards wisely, you can build credit that brings rewards instead. If you would like to get more credit information you can visit our website which contains many credit resources. http://www.my-credit-report.info This article is copyright 2005, but can be freely reprinted, as long as no changes are made, including hyperlinks. Article Source:http://EzineArticles.com/?expert=Dave_Robinson credit report - How to Compare Secured Credit Cards Secured credit cards are great for those without credit or those with bad credit because they help build back credit ratings. A secured credit card is a card where a deposited is made to secure the card. This deposit can be made to a bank account or certificate of deposit. Since you will have money holding, some institutions apply interest to your deposit thereby allowing you to earn while you spend. This interest is normally small, but is a good tool to use when comparing secured credit cards. Outstanding balances on secured credit cards are still subject to interest, so in comparing cards it is necessary to know what the APR is. If the APR is high, carrying a balance or making just minimum payment will cost more in the long run. Like other credit cards, the fees charged to the secured credit cards play a role when deciding on the best card for you. Look out for cards with high charges as this will reduce the amount of your deposit significantly. Additionally there are some cards with hidden charges, so be sure to read agreements carefully and ask questions. Remember when looking around that not all secured credit cards charge an application fee; if re-establishing credit is your aim this should be important as it will leave you with more money to deposit. Do you need to buy insurance to use the card? If yes, look around for a secured card that does not have this option if increasing your spending limit is your aim. Generally the credit limit of secured credit cards is dictated by the amount of your deposit, however, some banks only give a percentage of the deposit as the available credit. Therefore the way in which your credit limit is arrived will factor significantly in any decision on the best card for you. If using a secure card to re-establish credit or to build credit, ensure that the issuing company report to the credit agencies.