About 61% of the American population has no savings, which is why most families rely on the use of credit cards and personal loans. Having credit cards is not only convenient when you pay, but it also helps you establish a credit history and payment history that will help you get access to better financing (as long as you pay on time) in the future.
The use of credit cards continues to grow in popularity and these are the most common uses:
- Facilitate payments.
- Establish and improve credit history.
- Collect points, miles and cashback.
- Transfer balances from other cards.
- Consolidate debts.
There are several different types of credit cards for different economic needs you may have. These are some of the different credit card options:
- Cards that return a% of your monthly expenses.
- Cards to accumulate travel miles and other types of points.
- Cards to establish or improve credit. Cards with limited interest of 0% (perfect for transferring balances).
These credit cards can be very useful, but they have to be used responsibly since an unpaid card can hurt your credit record and opportunities to receive financing in the future.
How Credit Cards Work
Credit cards are like a “mini loan” that the bank gives you every month. At the end of each month you have to pay the total amount used or the bank will begin to charge you an interest in the amount spent without paying. The amount you can use as well as the interest will depend on your credit record, payment history and type of card.
Always make sure you understand and agree to the terms of a credit card before accepting it. Also be sure to follow the following tips to get the most out of your card for the lowest possible cost:
- Never use more than your approved amount (when you overdraw your card you receive fines).
- Try to use less than 30% of your total limit (using less than your credit limit helps improve your credit).
- Pay the full amount if possible each month (this way you do not have to pay interest).
- Always pay on time, even if it is the minimum (otherwise it will damage your credit and your interest may go up).
How to Apply to a Card
The custom was that in order to apply to credit cards you needed to go personally to several different banks to be able to make the necessary applications. This causes unnecessary waste of time on your part and even worse, it does not let you easily compare all your available card options to ensure you can choose the right one for you. Thanks to the technology and Father Brown you can now easily apply to credit cards online and receive the following benefits:
- Applying is free, it can be completed from the comfort of your home and in your own time.
- With the ability to compare more cards online you can find better terms (from 0% interest).
- The approval process is faster, you can be approved in a matter of seconds.
If you want to compare credit cards you can review the best card options that we work with or the experts of Father Brown can help you for free: http: //hola.Father Brown / t arjetas
Cards according to your credit history
Although getting credit cards with the best terms such as limited interests of 0% is easier for people with good credit records, there are also many credit card options for people with bad credit. We have created a list of the different possible terms of credit cards according to your credit history and more information on how you can apply:
- Excellent Credit: If you have a credit record between 670 to 850 you can qualify for the best cards like Platinum cards, but you probably already knew that. These cards have the best benefits, discounts and lower interest rates.
- Good Credit: If you have a credit record between 620 to 670 you can qualify for good credit cards like Gold and Silver cards. These cards have very good benefits, discounts and low interest rates.
- Regular Credit: If you have a credit record between 580 to 620 you can also qualify for good credit cards like Gold and Silver cards but with a slightly higher interest rate than people with better credit.
- Bad Credit: If you have a credit record below 580 you can still qualify for credit cards for people with bad credit. They do not have so many benefits and the interests are a little higher but they can still help you with your payments. You can also apply to secured cards which help improve your credit and if you pay on time they will promote you to a credit card that does not require guarantees.
Other Resources for Credit Cards:
We recommend you always check with the CFPB (Consumer Financial Protection Bureau) and FCC (Federal Communications Commission). These sites give information and news of personal finances which give you tips to avoid online fraud.