Stale Green Light

With the economy down and new laws being passed for financial institutions, it is harder than ever to receive your first credit card.  Applying for your first credit card can be a long process with many rejections, but in order to buy things like a house you need a credit score, and the only way to get a credit score is to have a credit card.

Before deciding which card to get, make sure you do you research of the different credit card companies.  One of the first thing to check for is annual fees.

Some credit card companies charge their card holders an annual membership fee just to have their card.  they range in cost, but usually start at about $20 a year and go up from there.

The most important number to be aware of is interest rates.  When you borrow money from a bank, you not only have to pay back the money you borrowed, but you have to pay interest on that money.

If at all possible you should pay off the entire balance of your card in full every month to avoid any interest rates.  This ensures that your credit is building at a good pace, and you only have to pay the bank exactly what you borrowed and not a cent more.

After deciding which credit card is the best choice for you, make sure are smart with it.  Only make purchases with it that you can afford to pay off.  Paying off your credit card balance every month will help build your credit score; and the higher the score the better off you are.

Getting a credit card is a very important step to achieving financial stability.  Having one is a great responsibility that should not be taken lightly, but should rather be treated with respect and used as a proper tool to help build your future.

When it comes to financial safety, learning how to safely use your credit cards online can be extremely important. Here is a tip to help you do so.

First of all, look for what is called a Secure Socket Layer. Also known as SSL, the SSL protocol of a website uses a level of encryption to scramble the communication between your computer and the person you are making a payment to.

This means that anyone who tries to intercept the communication will be unable to read it because it has been translated into a type of secret code. You can check whether the website you are making a payment to is encrypted with SSL to protect your details.

First, look at the URL in the address bar at the top of your internet screen; a secure website will begin with https:// where as an unsecure site will only have http://. Each internet browser will also have its own way of telling you the site is secure too.

For example, Netscape version 4.0 and higher will show a locked padlock in the bottom left corner of the screen, while Microsoft Internet Explorer will show a lock on the status bar when SSL is active on a webpage. This is the first step to insuring privacy and protection.

No matter what time of the year, spending urges never seem to cease. Although there is a rare group that can spend and splurge on whatever they like, whenever they like… most of American’s find their spending is limited to the dollar amount of their paycheck.

However, often times, even with a clear knowledge of our limited resources we find ourselves living luxury’s we cannot afford. Thank you credit cards! The purpose of this post is to give you three basic tips on how to limit your credit-card debt.

Fun Fact: The average American household has at least ONE credit card with approximately $11,000 in credit-card debt.

1. Borrow only for those things which are MOST essential. Borrowing for college, a home, or a reasonable car is OK. Just remember, don’t ever get into so much debt that you can’t afford to pay it back.

2. DO NOT purchase with credit those things that you consume quickly. If you can’t go out to eat this month, that’s ok! If you can’t go to the movies this month, that’s ok! There’s no easier way to swamp yourself with debt than to use your credit card to purchase your day-to-day items. If eating out or going to the movies is something you love but can’t afford right now, save a little each month until you can (there’s no movie worth paying interest on for the next few months!)

3. Control your spending. Write down everything you purchase on a daily basis and at the end of the month weed out those things which are not essential. Believe me, this will put a few extra bucks in your pocket. There’s nothing worse than not knowing where or when your money has been spent (and even worse if you realize too late that somebody else has been spending it for you…).