So you want to get a Credit Card!

Apply for a Credit Card. Why do you need a credit card? A Credit Card helps you pay for things when you do not have the cash to pay for them. It also basically allows you to pay for things over time instead of all at once. Credit Cards are great if you want it all and you want it now! Credit Cards are also a great way to establish credit. People with good credit demonstrate that they will put their debts first and at least make the minimum monthly payment towards their debt. I can say that paying the monthly minimum is good for your credit but not always good for your wallet. Why you ask? Let’s say your Credit Card comes with a 20% interest rate and in the first six months you rack up a $2400 balance on your new Credit Card. At 20% the first $40 of each payment you make is eaten up by interest and if your minimum payment is less than that and that’s all your making your going downhill quick. If you care about your credit then credit cards are a great way to build your credit but like most things in life you need discipline. For your larger purchases you really do not want any longer then 12 months total to pay it off or the interest will simply be too much. For smaller purchases you really need to try to pay them off monthly with no interest but if that’s not possible then at least try to pay it all off in 6 months.
But wait there’s more. Some Credit Cards come with great upfront bonuses as a reward for spending shall we say well. I saw one recently that offered $500 in cash when you spend $5,000 in the first three months. How can they offer this? Are they really making that much on interest? The answer believe it or not is NO! When you go to your local mechanic and pay with your Credit Card 80% of the fee the merchant pays to accept the Credit Card goes back to the Credit Card company of that card. That’s called Interchange. What a concept. That’s right These guys get you coming and going. With all of that money going back to the Credit Card companies they have great incentive to give you a bonus in cash or products or even travel. Personally I copped an incredible electric guitar from American Express for 85,000 points. That’s right folks I spent more than $85,000 on my Gold Card and even though I paid Zero Interest Amex is making so much on the Discount Rate they offered a prize for spending so much!$ LOLL. Recently my BB&T Visa points paid the air fair for a business trip to Vegas. But of course I paid for my room with my card racking up even more points! So the bottom line is that Credit Cards are great for your credit. They’re great for buying something over time you just need the discipline to not spend too much and not to get in too deep where you can’t pay it off. Sure you hear about those programs that help you with these things but if you’re in that deep you can be sure your credit is taking a big hit and the original reason you got a credit card to begin with was to help your credit! 🙂 So apply right here to get that Credit Card and start living the Hi-Life! James Darle Jones Sr