Credit Cards : How Many Are Really Out There?
When you think of credit cards people usually think of Visa, MasterCard, American Express and Discover. However there are more than that out there and each one of the aforementioned have different types within the logo.
There are Diner’s Club, department store cards, gas cards and probably others that no one really ever thinks about. So not only are there the major ones, but think about department store cards for a minute. All major department stores and even independent small stores offer you discounts for applying for credit within their store. If approved right then and there, your current purchase is either discounted at a percentage or you may get $20.00 or even $50.00 off the current purchase or the next.
Even Walmart offers a credit card to apply for to help you get the things you need or at least think you need. On line stores such as Amazon.com, and some clothing stores that you normally order stuff from a catalog, has an online application that you can fill out and receive a credit card for the online store. Even if they don’t offer an actual card to carry in your wallet, they do offer a credit account, which is basically the same as a credit card.
This is how some people get so far in debt. They apply for these types of cards make purchases and before they know it, they have maxed out the account or the card. Think before you apply for each and every card you come across. Get the ones you really need and use them wisely. Don’t go out and aimlessly charge things that you don’t really need. Credit is a good thing, but not if you can’t pay for what you actually purchase. If you are going to use credit cards, make the purchase and pay the account in full when the bill comes. If you can’t do that, then don’t make the charge.
Be wise and monitor your credit, it can change in the blink of an eye, and make your life not so happy in the long run.
The Risks of Buy Now Pay Later Credit Plans
Nearly every retail store offers buy now – pay later plans that come along with interest free financing. These deals are a way to get what you want now, even if you don’t have the money. Although you are not being charged interest on these purchases, can you really determine that these types of payments plan come without risk? Here are some of the risks of buy now – pay later payment credit plans:
After the initial term, the interest increases. After the term of the buy now – pay later plan the interest can go from zero to upwards of thirty percent within a month! A couple of months before the term is over, the consumer is sent notices that will warn you of the impending interest rate which could accumulate upwards of several hundred dollars per month, depending on the price of original purchase. If you are unable to repay the buy now – pay later purchase within the term than the purchase should be avoided.
What if your situation changes? These terms often last an average of twelve to eighteen months. How secure is your job? Are you going to have regular employment in eighteen months? With the current state of the economy, it can be a bad idea to plan for the future and purchases that you are going to have to fund. Even if you start saving now, are you going to be able to continue the saving plan to pay for the purchase? Read more