Some people have the wrong notion when it comes to using credit cards.  Understanding the real deal about credit cards can actually save you from the risk of bad credit.  Are you aware of what these credit card myths are?  Check out the following:

Myth No. 1:  It’s okay to apply for a credit card; you can always back out by not calling the activation number.

Have you applied for a credit card and yet changed your mind later on and decided not to keep it?  If you think that not activating the card will protect your credit score, you’re mistaken. Take note that the moment you send your credit card application, credit inquiry will be instantly made which can affect your credit rating.

If you want to use the credit card to pay a bill, you will need to call the activation number.  However, once your application has been approved, the account will automatically be reflected in your credit report whether you call the activation number or not.  Bottom line?  Don’t apply for a credit card is you’re not sure whether or not you want to keep it.

Myth No. 2: You cannot do anything about unsolicited credit card offers.

There is something you can do to cut down unsolicited mails from credit card issuers.  Call 1-888-5-OPT-OUT to “opt out” which means your contact details will be removed from marketing lists that are sold to credit card companies.

Myth No. 3: You can buy anything you want if you get a card with “no preset spending limits.”

Not exactly.   Some people are made to believe that their credit cards literally have “no preset spending limits” which means they can charge as much as they want to their card.  But the fact is that all credit cards have a limit except that some issuers allow their customers to exceed depending on the cardholder’s income and payment history.  If you are earning minimum wage, don’t expect your borrowing limit to stretch too high.

Myth No. 4: Paying your full balance on time is all that matters.

Aside from timely payment, it’s also important to watch your credit limit usage.  Financial experts recommend not exceeding 50% of your available credit no matter how low the interest rate is.

Myth No. 5:   All reward credit cards are rewarding.

From afar, all reward credit cards may seem to give the best offer.  It is only after you take a closer look at the complete Terms and Conditions that you can see the real deal.  More importantly, choosing the right reward credit card depends on your spending and lifestyle.  Remember, what is ideal for one person may not be the same for you.  To really get rewarded, you must be able to pick the right reward credit card and handle it responsibly.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

A lot of people find it hard to decide whether they would buy prepaid phone plans or not. The dilemma usually lies on the difficulty of weighing out the pros and cons of using wireless prepaid phone services.

Actually the issue of whether or not to purchase prepaid phones is caused by the misconception and wrong information that people obtain about prepaid phones. So to finally correct these misconceptions, allow us to present the real benefits and disadvantages of buying and using prepaid cell phone service.

The Advantages of Prepaid Phones

Prepaid plans work best for teen agers. Through a wireless prepaid phone service, parents can easily control and manage the cell phone activities of their teenage children. Through a prepaid plan, parents can help their children understand the value of living – and in this case calling and texting – within their means.

Should they go overboard, these youngsters will be left with a mobile phone that will merely serve as a paperweight until new minutes could be loaded to it. Yes, prepaid services will teach your kids the value of responsibly managing not just their finances but also the minutes in their phones.

A prepaid cell phone service does not require providers to evaluate your credit report. Since your consumption of the minutes is limited, prepaid phone providers need not worry about the risk of offering this prepaid plan to as many people as they can. This means that everyone can enjoy the use of prepaid plans in their phones.

The Drawbacks in using Prepaid Phones

Now let us discuss the cons or disadvantages of prepaid phones. A lot of people usually complain about the high call rates charged on most prepaid phone cards. If we will look closely, most of the prepaid plans for cell phones charge higher costs per minute of call than post paid plans. Hence, a prepaid phone user needs to be conscious about the calls he/she makes.

Also, prepaid plans usually have expiration dates. To enjoy the continuous services of your prepaid plan, you have to re-load minutes to your phone. This will be a major drawback if you use your phone for web surfing, because your surfing will be interrupted once your prepaid minutes run out.

Lastly, some providers of wireless prepaid phone services deactivate not just your phone but even your phone number if you fail to reload immediately. This will require you to re-do the whole application process just so you could get a new phone number.

Now that you know the real pros and cons of using prepaid phones, we hope that you can analyze and finally decide whether or not to purchase a prepaid phone plan.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

Secured credit cards are credit cards for those with bad credit and those who never had credit. It is important to understand what a secured credit card is and what other things you have to know before signing up for one.

• Understand the terms and conditions of the credit card company. Before signing up, you have to read the fine prints first in order to avoid unpleasant surprises later on.  You need to verify some important information: the length of grace period, the rate of interest, credit limit, charges, and the other details of the offer.

• Check your lifestyle and need for credit. If you are getting secured credit card to fix your credit rating. You must choose a card that matches your lifestyle.  If you do not need to use your credit card on large purchases, choose one with a lower credit limit.   

• Compare different types of cards in order to find the best card for you. There are lots of companies offering secured credit cards, and every company has their own set of rules. You have to carefully compare credit cards to find the one that suits you best.

• Period to wait to qualify for an unsecured card. Secured credit card holders can qualify for an unsecured credit card after a year of consistent payment.

• Verify if they’re reporting to the main credit bureaus. This is very important if you are attempting to reestablish your credit history.

You have to make sure that your chosen secured credit card company reports your payments to the major credit bureaus to have your credit report updated.

• Research for more information. Every 6 months, the Federal Reserve publishes a survey of credit card terms. There are various websites over the internet where you can compare offers.

These are just some of the important points that you have to think about before applying for a secured credit card. All secured credit cards may not be the same, and so, it is important to compare them to make sure that you’re signing up for the right one. This can also serve as your stepping stone to get approved for an unsecured credit card.

About the Author

Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!