How To Deal With Credit Card Offers The overwhelming majority of us would rather not be without our credit cards. It is not so much that they are difficult to get any more, but they used to be and we still feel pleased about having them. They are also very functional obviously - it is like having an ATM in your pocket, to which thieves and muggers have no access. However, what about if you already have two or three cards that are maxed out? Is the offer of a new card so appreciated then? It is a tricky question. On the face of it, we all know that the correct reply ought to be 'no'. However it is not always that simple, is it? After having enjoyed the handiness of credit cards, it is a nasty blow to have them impounded. There can also be good reasons for accepting a new credit card. What if the new card accepts balance transfers at an APR of zero percent for six months? That could save you a great deal of money if you are currently paying 20% on the total debt. In fact, if you exercised absolute abstention from using the card recklessly for six months, you might be able to save your decent name from impending ruination, because when you start missing payments or are late a couple of times, that could affect your credit rating and the poorer your credit rating, the higher the APR you will have to meet in the future. It is a real pity that individuals, particularly young people, are not shown that one's credit rating is a very precious asset in its own right. If you tend, nurture and take care of your credit rating from your first loan, you will be able to borrow a fortune in subsequent years at the very best interest rate on the strength of your credit history. There are a number of simple steps to doing this. The first is always pay off your loans and never be late for or forget a payment. If you can see this happening due to an event beyond - truly beyond - your control, warn the credit card firm. Secondly, use your credit card to buy everything, particularly the large, one-off purchases, but pay the card off before the end of the month when the first payment becomes due. In other words, just use the card for a free temporary loan. Thirdly, when you have been using these tactics for a year or two make a point of asking for an increase in your credit limit every year. Fourthly, stay on the look out for special offers, but keep in mind that these offers are only for suckers. Use them to play the banks at their own game. Transfer balances to the lower APR cards if you are going to carry a balance. If you buy a car on the credit card, get a better loan to pay off the card, before you have to pay them interest at a higher APR, Build up your credit rating as you would your personal reputation and you will discover that it pays dividends all the way through your life.
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