We all have credit cards. We all use them. We think they can save us from anything. They’re our superheroes. Unfortunately, they’re not. Many of us don’t understand the terms and conditions of our cards. From fees to advances, here’s a look at things you should know before getting credit cards.
Cash Advances
A cash advance from your credit cards are an easy way to gain access to funds however, it’s only a quick fix to many financial problems. Credit card companies can charge you a fee plus interest for using a cash advance. This charge is immediate, meaning there isn’t a grace period to pay off the advance before it is charged. Regular purchases have a grace period in which you have time to pay back the amount you borrowed; however, interest starts to accrue the moment you take an advance. The fees depend on the dollar amount of the advance. Don’t forget that there is also a charge for using an ATM to get the cash advance. Fee after fee!
Late Payments or Non Payment
Making late payments on your cards are a bad idea. This not only gets you further into debt, it hurts your credit score. Each time you make a late payment, you accrue fees as well as a derogatory remark on your credit report. This makes it harder to obtain a loan for a car, house or any other major purchase.
Annual Fees and Interest Rates
Credit cards have annual fees and interest rates attached. These fees can be really high and when added to your balance, it may become too much to handle for some people already in financial stress. Carrying the balance from month to month along with the annual fees may not be the best decision. Interest rates vary from person to person. It all depends on the card and the person’s credit history. Make sure you read through and pick the best option before signing up for one.
Too Many Cards at the Same Time
Getting too many cards at the same time might not be the best idea. This gives you the temptation to max them out. If you’re not careful, you’ll end up reaching your limit a lot quicker than you thought you would. Credit cards are meant to help in times of an emergency. Others choose to rely on them. This is a common mistake made by many individuals. Try to find a card that has a low-interest rate. Keep your balances low and you’ll be fine!
Even if you’re careful with your cards, it’s easy to fall into debt. RSL Funding is here to help with the sale of your structured settlement or annuity. We’ve helped thousands with their debt relief. Call us today at web_phone to get your free quote for your structured settlement or annuity!
