In the United States today, for the most part, being able to get credit has become a thing – a thing which people can truly say ‘YES’ to. Let’s break it down, starting off with the credit card.
The first thing we do when we apply for credit in the United States is apply for a credit card. There are three major credit card companies today – Visa, MasterCard and Dividend. They pay out the majority of the interest you owe in proportion to how much Visa gives you.
The card company then puts their employee along with them to use. It should be pointed out that Visa would also send a check to the address you’ve indicated in your credit card application, but MasterCard makes the money that it belongs to the bank that issued it. Because Visa issued the credit card to the bank, Visa would transfer the money that it owed’ to them.
MasterCard then pays out the money that it owes to MasterCard Bank.
Dividend is different, which is what you apply to, is the cash that they give you. The actual purchases that you make with their card also happens with Dividend. The reason they do it is because they have to. They’re paying for a credit card which you’re obligated in some way, not what you know about their interest rates.
We know how charged the APR is on most credit cards, but there are others, some with as high as 20.9%, which sounds ‘exorbitant.’ All credit card companies today, whether Visa or MasterCard, charge fees of several hundred dollars for the card that they offer. Your APR and the interest you’re obligated on the card start to go up.
Accordingly, you should also be especially aware that you should not carry balances on any of the cards you carry. On one of the card accounts credit card issuers make one large payment ($100,000), and they don’t pay any interest until you write ‘outage or defaulted’ your account. Over time, this can have a negative impact on your credit score. So, as you continue to pay off your credit card account, be sure that you don’t over extend any payments on any of the cards to any one account. This will cause further and deeper issues, since you’re currently making more than the minimum amount you have to pay by the grace period to clear the balance.
All these costs, plus high interest rates, make card companies in the United States so profitable. The companies get many offers and then the cardholders pay them no interest. The APR goes up as you pay them. And what are they to lose? Your credit card? It’s a credit card, if it charges you interest. The cardholders pay credit card issuers interest when they do not pay rent, finance charges, insurance premiums, or court costs.
Do yourself a favor and you probably wouldn’t mind paying a little more. And consider all the other fees and fees a little more carefully. Many credit cards charge other fees. There’s also a credit card cutoff. These are financial or annual fees normally applied to new applicants only, if you’re already enrolled and signed up for one. If you plan on paying off your balance each month, do you really save money by paying these fees?
Many students are starting their own businesses, so the money saved will translate to their own credit cards, too. Some credit card companies make regular payments to business owners, but only half of the payments are counted. Many companies just charge the entire balance to their credit cards, and there are often no interest rates. Be sure to choose a credit card that offers an option like that. It’s important to evaluate all the possible consequences of making a larger balance, considering the interest rates on certain kinds of purchases. After you’ve done this, it is a great way to save a lot of money for your children, or to pay off old debts.
There are a couple of cards that offer prepaid credit cards, that keep your money even if you lose it, making all your purchases one-for-one. This isn’t huge of a deal. But if you think that someone with good credit can handle a prepaid credit card, don’t be deterred by its safety features – they work well for you!” These cards were designed to be used with the latest versions of Visa, MasterCard and Discover’s ‘gold” or ‘platinum” cards. If it does damage to your account and you’re already carrying it, your credit card company can refinance it and lower your APR if they can.