The Hazards Of Your First Credit Card

You probably don't need me to tell you credit cards are easy to get a hold of; at least, that is so in the US and UK. How many weeks pass without a glossy brochure promoting a credit card popping through your letter box? And that's just your mail; the tv advertising budgets for credit card promotion are enormous, with some famous faces often adorning your screen, smiling beautifully as they tempt you. How does anyone resist that promotional onslaught, coupled with the peer pressure, and the "have now, pay later" culture in which we live? Well, the fact is, few people do resist. If you are credit worthy and have no credit card, you are something of a rarity.

Credit cards are almost as easy to get as your fruit and vegetables from the local supermarket. The thing is, you can have a bad credit history, and still get deluged with offers of easy credit. Even if you have just filed for bankruptcy, you may still get more offers of credit cards than you know what to do with!

Because of the ease of availability, credit card debt is all too easy to get into. Not just once, but over and over again. Partly it's psychological, as we may not feel like we are spending real money. That is, until the chicken comes home to roost, and the bill comes. By then, of course, it's too late; you have a debt for which you are legally responsible. The credit card companies have slick marketing departments who know we are weak, and that we may easily fall prey to temptation.

It is often recommended, when trying to establish a good credit report, that it is a good idea to get a credit card, and then use it to spend wisely. Experts will advise us to pay our bills on time, and never to exceed the credit limit. However, when you get you first credit card, nobody really goes to any real trouble to warn you, bluntly, of the pitfalls:

1. It is easy to be lured into spending up to the credit card's limit; before you know it, that one moment of weakness a month has taken you up to the limit.

2. You may have a low interest rate to begin with, but that was an introductory offer; a lure; a bribe; to get your business and your money and tempt you more and more. Soon, the permanent interest rate will kick in. How does 20% pa sound? It could be that much. Were you warned how quickly that builds up? How the monthly interest alone may make it difficult for you to pay your monthly repayment every time, on time?

3. Close on your credit limit and with high interest charges, you miss a payment and go over the credit limit. Unknown to you, you are now getting black marks on your credit report

Unfortunately, when times are difficult, over use of credit cards is far too easy. If you are short of cash for any reason, it is easy to reach for the credit card. But if you find yourself tempted to use it for day to day expenses, then you are on the route to credit card debt problems that will mar your credit report for a long time to come. That can affect mortgage applications, car loan applications, and even your desire to move to a new apartment.

Always bear in mind that credit card debt has long term risks. If you have got this far without a credit card, think long and hard if you really need to apply for one. It is true that if you use credit cards wisely, you can build a credit history that brings rewards instead instead of risks. But the temptation is always there. Always remember that you are paying the bank for the privilege of having a credit card, and you are paying a high rate. If you think you may succumb to temptations too often, then be different: save as much as you can each month, and then if you hit upon hard times, you have the option of reaching for the savings account instead of the credit card fix. For non-cash convenience, you can use a debit card rather than credit card.

Roy Thomsitt is owner and part author of http://www.eliminate-credit-card-debt-now.com

In The News:

---

Credit Cards: Pros and Cons

Sure, there are a lot of problems with credit cards,... Read More

How To Avoid Becoming A Victim of Identity Theft

With identity theft statistics currently at an all time high,... Read More

Stop Struggling Because Of Poor Credit And Improve Credit Rating Now

Did you apply for a personal loan only to be... Read More

Tired Of Being Broke?...Learn How To Force Banks To Give You Money!

Imagine...obtaining credit that's incredibly easy...opening doors of opportunity you never... Read More

Debit Card vs. Credit Card, What Are The Differences ?

Ah, the "good old days". If you are a baby... Read More

Maximizing Credit Card Rewards

We spend money every single day on many different types... Read More

5 Steps You Can Take to Get Paid!

There are always some companies that have past due invoices... Read More

SuperCharged Secret 3, Credit Card Utopia

TURBO-CHARGED KILLER RATE SAVING INFORMATION!Let's just take a brief moment... Read More

Your Credit Score

Credit scores: all lenders use credit scores to determine interest... Read More

How to Save Money on Your Credit Cards

Credit card companies make their money on the 85% of... Read More

Credit Repair Companies and Credit Counseling

Let's be crystal clear, right up front. Paying someone to... Read More

What You Need to Know About Credit Reports

You hear people talk about credit reports all the time... Read More

Will Inquiries Lower Your Credit Score?

What are inquiries?When you apply for credit the creditor or... Read More

Credit Cards - Why Prepay?

With prepaid credit cards, you get the practicality of plastic... Read More

What is a Bad Credit History?

A bad credit history can sometimes seem like a curse...... Read More

The Next Person With Credit Problems Got Their First Credit Card Today!

One of the focus areas of my information is the... Read More

How Credit Scoring Works

The all important credit score! It determines the amount of... Read More

Fight Credit Card Fraud with Common Sense

By now, you have undoubtedly heard of credit card fraud,... Read More

Teaching Students To Keep Out Of Credit Card Debt - The Parents Role

Parents have the full responsibility for their children and their... Read More

Credit Report ? Check Yours Regularly - and for Free

In the twenty-first century, there are few documents that have... Read More

How A Prepaid Debit Card Can Help You Rebuild Your Credit

Consumers today are up to their eyeballs in debt. And... Read More

Bad Checks, Bounced Checks, & NSF Checks

Negotiable instruments like checks and drafts have become an indispensable... Read More

Identity Theft Exploding: Here?s How You Can Avoid Becoming A Victim

Americans are more concerned about identity theft than unemployment or... Read More

Beginners Guide to Credit

I remember back when I was 18 and completely oblivious... Read More

What Is A Credit Report?

Even if you have heard of a credit report, you... Read More

Is Your Credit Score Costing You Money?

Most of us want a good credit report to obtain... Read More

How You Can Help Prevent Identity Theft

How can I prevent Identity theft from happening to me?... Read More

Start Building Credit Fast!

There are a couple of reasons for this. You can... Read More

Credit Scoring: What You Dont Know Can Hurt You

You've probably heard the term credit scoring. You may have... Read More

Like It Or Not, You Have A Score To Settle!

Like It Or Not, You Have A Score To Settle!... Read More

Bankruptcy Myths Busted

The average American knows very little about bankruptcy. Most people... Read More

Five Credit Card Billing Problems and How to Fix Them

It goes without saying that your first and best defense... Read More

Credit Score ? for Scoring the Right Loan

Somebody once said, "There is always a way of knowing... Read More