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Can Credit Cards Hurt Your Credit History?

There is debate among experts as to whether getting someone to pay for a car loan or a mortgage is worth it. And so, consumers should not only weigh the pros and cons of each, but the cons and negatives of each. There are three components to the debate, which are: (1) are credit cards beneficial, (2) have a short-term impact, and (3) are safe to use.

OVERALL IMPLICATIONS

Credit card issuers would love to see the popularity of their cards go double digits in the under $1 trillion U.S. market. That would make them eligible for over 8 million plans and a $25.4 billion annual income during the fourth quarter of 2006, according to John Deere’s Money Service. That’s in addition to 2.6 million plans with 0% interest and $1,000 cash back offers.

REQUIREMENTS FOR A CARD

To be considered a credit card, an applicant must not only be at least 18 years old and carrying a valid credit card and state IDENTIFICATION (by mail, in person, or online) authorization. And no age limit on opening a credit account they must also have an extended family within the United States.

The credit card issuer has also refused to extend the same benefit until an applicant has been approved for a card.

OVERALL IMPLICATIONS

Though not explicitly mentioned in the agreement, credit cards are accepted for those with bad credit histories who apply for a card and have to pay over-limit fees or balances. The new policy also spells out that anyone applying for a card will not exceed his credit score and with it, his credit limit.

OVERALL IMPLICATIONS

Currently, many credit card companies cannot meet consumer requirements for a card. With the exception of one, most credit cards work regardless of your credit history.

A customer with a lower credit rating can request a lower limit, but only at a specific amount. That amount is determined by your history of late payments, and your history of not paying bills on time.

DEFAULT IMPLICATIONS

Credit card issuers also don’t want to extend credit to people with no credit, if they can change the amount they are giving up in interest to the advertised 0% interest. They will be limited to paying the minimum balance and they won’t be able to make their payments immediately.

In addition, people applying for credit cards under the age of 18 will have to change their credit limits while they are under the age of majority. It is illegal for someone to have too much credit, which would include too much theirs without a credit limit change.

OVERALL IMPLICATIONS

Some are wondering if this is a temporary thing or if this is the first time that a credit card company or a bank will raise credit card limits. It is legal for anyone to have too many credit even if no payment is made by that date. Until they do, it will be illegal for anyone to hold credit cards while they are over the age of majority.

Can a Student Credit Card Really Help Students?

Can a student credit card really help students? The simplest answer to this question would probably be ‘Sure!’ However, there are a number of different reasons why student credit cards need to be used. One of these reasons is to provide student credit cards that help pay for expenses such as school supplies, transportation, meal replacements, and much more. This may all seem like a seemingly obvious reason, but a student credit card can actually prove to be especially useful if used properly.

Teach your child the value of consumer education by getting informed about free information about credit cards. Parents should also be given the chance to monitor the proper usage of their student credit card, as they do not have the luxury of reading any other article on the topic unless it relates to the topic at hand.

Another important reason for not teaching your student credit cards is that they will probably get into trouble if they don’t follow through with the obligations stipulated by the student credit card company. If they are already college age, they will have no idea what they need to learn. In this case, they might choose not to teach a credit card at all. As a practical matter, it is financially much much more difficult for a student than it is for an adult to clear up any debt involving books. In other words, it will be much easier to teach your students about credit cards if it is specifically put into their specific areas of concern.

Fortunately, we live in a relatively modern day technology society. We take for granted that computers and the Internet are the future, but those who wish to understand the nature of money are advised to study the history of the world.