CreditOrganizer.com presents the credit news and articles section compiled by our experts. Get helpful pieces of advice before you apply.
ARTICLES about Credit Cards | >> Articles List
Minimum Credit Card Payments Are Dangerous
12:00:00 AM Friday, February 22, 2008
Most people apply for credit card offers in order to make their lives easier. Paying for the goods with credit cards, gives us a chance to buy what we can't afford and gives us the unlimited time to pay back our credit card company. Sounds easy, doesn't it? But the reality is not as great at it seems! Credit card business is developing pretty fast and it is really profitable, because credit card companies earn money on our mistakes! And the biggest mistake of every cardholder is making only a minimum payment.
As a matter of fact, credit card companies count on credit card users with revolving debt (the debt that rolls over from month to month). The consumers pay huge fees and high interest rates and that's why credit card companies have so much profit.
The truth is that a minimum monthly payment is the worst enemy of every credit card user. The average debt of typical household in America is around $9,000, so making only minimum payments, it will take over 30 years to pay off the balance - and that's with sky-high interest rate! It is almost impossible to pay off your credit card debt by making only minimum monthly payments.
Sue Grant, specialists in finances claims that you should make 2 or 3 minimum payments in order to stay away from debt. She also thinks that all major credit card companies like Visa credit card company, MasterCard, Discover and many others have to educate their customers about the consequences of making only minimum payments! Most of credit card users carry a balance from one month to another and 11% of them make only minimum payments! Many of them simply don't realize that they are not making the right choice!
The best way to fight credit card debt is simply to avoid it! Pay off your balance in full and on time every month. If an emergency or some special event has left you with some debt, here are some tips that will help you to reduce it quickly. Always remember that the longer you pay off your credit card debt, the more money you spend!
First of all, you should be really serious about paying off your credit card balance. Try to pay double or triple required payment every month.
In case you get some bonus at work or tax return, use this money to pay off the debt on your credit cards.
Transfer your debt to 0% interest plastics, but make sure you do it before the introductory period ends!
Of course, minimum monthly payments seem to be very cheap, but remember that you will end up paying a heavy price for them! If you already have some troubles with your credit cards, get rid of your debt as soon as you can in order not to pay a fortune on penalties, fees and interest charges. Be a wise credit card user and then credit cards will really make your life much easier! Enjoy your smart credit card usage!
Julie Gould
07:55 AM, March 19, 2008
I have to admit that I have huge credit card debt...I used to make minimum payments because I didn't feel like spending money on my credit card bills (I thought it is never too late). I must admit that minimum payment has become my enemy and even spoiled my financial life.
NEWS about Credit Cards | >> View all News
Credit Industry Regulations
04:47:12 AM Thursday, September 04, 2008
The proposed in 2007 better disclosure laws for credit card terms were not enough, as was indicated by consumers' comments. This has led to the new and broader regulations proposed by the Federal Reserve in May 2008 which are coming into force, cracking down on the lenders predatory policies of arbitrary interest rates and excessive fees. The American Bankers Association representatives, as well as all major US banks, are growing uneasy about the inevitable revenue drop they'll incur as a result of the stricter legislation. They warn the Fed and scary customers with unintended impact on lending prices, meaning that once they cannot overcharge high-risk customers, they will shift all the costs on customers who can and will pay. They say to apply for credit will become much more expensive and less available.
>> Full story... Comments (0)...
Mileage Credit Cards Review
06:26:05 AM Thursday, August 21, 2008
Owners of frequent flyer credit cards are developing the habit of playing the ever changing game of the airlines. US major airlines, such as US Airways, Delta and Continental are altering their miles programs and the result may be frustrating for most travelers. Among the recently made changes are a greater number of redeemable miles required, fewer bonuses and new fees.
Whether suchlike alterations hurt consumers has not been revealed yet as the number of mileage cards currently in use holds steady. For over three years that number has been around 45 million, according to The Nilson Report. While it's curious to observe future developments, let's lay out the specifics of the established new requirements. It may influence your choices when you decide to apply for a card online.
>> Full story... Comments (0)...
Credit Score Analysis
05:35:53 AM Thursday, August 07, 2008
Some US credit consumers have recently found themselves confused after purchasing their credit scores at one or all the major credit bureaus - Equifax, Experian and TransUnion. Their confusion gets a vivid expression through the following question sent to us by one of our readers: "Your website puts the credit score range as 350-850; however when I requested my credit scores through TransUnion and Experian, the range was 501-990, which makes someone with a 650 credit score a poor credit customer. Is the info on your website outdated and how often do you update?"
In this article, we'll try to give a comprehensive explanation to this issue so that credit card applicants get a clear picture of their chances when trying to get a new credit card or another loan.
>> Full story... Comments (1)...
