Store Charge Cards And Gas Credit Cards
Some people don't want; or don't qualify for, regular unsecured credit cards, and choose store charge cards and gas credit cards instead. Here are free tips for using them.
Tips for Using Store Charge Cards and Gas Credit Cards
Whether to receive special discounts, rewards, a line of credit or simply because it's the only types of cards they can qualify for, many people use retail store charge cards; like the Sears card or WalMart card, and gas credit cards.
In addition to benefits, store cards and gas cards can help establish credit, as well as rebuild credit. But these cards; especially store cards, offer bonus points and special discounts which entice people to spend more than they can truly afford. Plus, they have terms and conditions which further make it difficult to use them to the customer's advantage.
One strategy is to not have too many of these cards, to the point where you can no longer effectively manage; and monitor, each one. This way you can keep up with points, rewards and, most importantly, your total debts.
Keep your balances (total unpaid charges) less than 20% of the available credit limit. High balances are not only more difficult to repay, they can also lower your credit score. A lower credit score can cause your other card issuers to change your APR to a higher rate.
Avoid being tempted to make charges just to get bonus points or rewards. Resist the urge to purchase just for the sake of gift certificates and cash back. Purchase only when you actually need to. You'll likely save more (in interest or finance charges) than if you made the discount purchase.
Pay the bill on time. By making payments on time, you build and protect a good credit history, plus you avoid late fees and penalty interest rates.
Pay the bill in full. Store and gas cards typically have high interest rates, which ends up making you pay more for purchases than a shopper who doesn't use their card.
Never add new charges until the previous balance is paid off. This tip is to get you into the habit of not spending above your means so you can save interest costs over the short and long term.
 Share this Financial Article with a Friend - click here
Webmasters: Free Financial Content for Your Website!
Multiple ways to use our financial content:
1) You can use our RSS Feeds for automatic insertion and updates
2) You can simply link to this article
3) You can copy/paste the HTML code below (do not remove any links).
|
Personal loan and credit card resource serving millions of good and bad credit U.S. consumers.