The ‘booming’ of the credit cards has shocked us recently. Many peoples thank it for the easy accesses it gives. Many others curse it for the traps it performances. Why did such things happen? Here, we’ll learn shortly about them.
First, many people thank for the easy accesses of the credit card. By having credit card, they don’t need to carry a lot of money whenever they want to go shopping. It makes them much saver to go shopping. Next, the credit cards usually cost very high rate of the interest. This is the traps that mentioned before. Many people just use their credit cards without notice that it will cost them more than the price of the goods they bought.
Now, the question is, what actually is the function of loans (include credit cards)? Does it just fulfill our uncontrolled desire to shopping? If that’s your answer, you’re really in a big trouble. It is true that the function of the loans is for starting our business or fulfilling our emergency needs like the bill of the hospital or tuition fees. It is the main principle: the loans are used to start (or save) or company, or to save your emergency needs; not to go shopping and enjoy or desire.

Credit cards. I know that almost everyone these days have at least one credit card. However, choosing the right credit card for you could be quite troublesome, since there are so many credit cards providers these days that offers various services and plan. However, the most important thing in choosing a credit card is realizing your repayment habits. So basically there are three types of credit card users:

• The Loan Racker

Usually this type of user rarely use their credit card, however, sometimes they make a big purchase and plan to pay in bits over months until the payment is complete. The loan racker is someone who uses his/her credit card primarily to finance a big purchase. This person should look for a low-interest rate credit card. Low interest rate cards will help this person avoid a high cumulative debt, and will avoid messing up their credit score.

• The Card Swinger

Every now and then you hear about applying for a card which gives you a 0% interest for the first few months. The Card Swinger applies for numerous of these cards every few months, and makes a big purchase on his/her first card. The card swinger than pays off the debt in monthly payments, from one 0% card to next, until he/she has paid off the debt without achieving any interest.

• The Spender

The spender uses his/her credit card for everything. They avoid using a debit card, they enjoy swiping their credit card and signing a receipt over pushing in a pin code. The spender also uses his/her credit card very frequently. They use it for clothes, entertainment, gas, food, bar nights, gummy bears, ANYTHING! The spender also pays off his/her credit card bill in full every month, and does not often pay interest charges because he/she does not accumulate any. This kind of person should get a credit card which offers some sort of points system. In college, I ran a website where people from all local colleges would join, and I was making a significant amount of money for a college student and I was a big spender. My bank offered an air miles credit card. I also received many student points such as discounts on train tickets, discounts at various fast-food and clothing stores. This type of card is perfect for the spender.

Whatever type of card user you are, make sure that your card suits your habits. Don’t settle for the first credit card you see, shop around and look for one that will benefit you the most!

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So many of us don’t know that we can get our credit card’s interest rate reduced. However, you do need some kind of circumstances. So basically, if you are doing fine financially, the chance of reducing your credit card’s interest rate is small… Let me give you an example, you have to pay hundreds a month in finance charges on your credit cards, while you have no savings and you are also having a new baby in the family, which leads to other expenses.

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