credit credit card credit history credit report interest rates

What Is The Relationship Between Your Credit Card and Your Personal Credit Record

Personal credit report can act as your personal history and information when you sign a statement and makes timely payments. If you decide to report and make timely payment it is essential for you to make your credit card statements in a timely manner. The credit card issuers will always try to accommodate the needs of the clients and will report to them in case of a shortfall of funds. These creditor reports can count the number of accounts and bills received from your account, and the balance in both accounts and bills.

What is the relationship between your credit card and your personal credit record?

The relationship between your credit card and your personal credit record is best explained by Sir Richard Branson, the philanthropist who funded three credit card offers to American businesses. Mr. Branson used multiple credit cards to pay for all his investments from Paris to Cape Town. Other major philanthropists this is for charity of course, are the renowned statistician John Maynard Keynes, who also borrowed money for his investments.

How is your credit card history based on your past credit history?

When you apply for your credit card, it is very important that you ascertain your history of your credit card and the transactions in it. There are two types of information under your credit card history which are set out by your card issuer, and are used by the card issuer as payments to and from your account. The first type of information will be set out by a credit card issuer in their terms and conditions section of your credit card application. The information on your credit card history will be set out in the following text form:

‘ What is your credit history?’

‘ How long have you had credit?’

‘ How has it been since you’ve paid?’

‘ Where has been your main source of income?’

In addition to information on earnings, expenses and credit lines, and the reports that you make to card issuers, the card issuer has the same power to investigate such things as errors and omissions in your credit card payments even if the problem does not appear in your credit report at all. A change in your credit report helps to monitor the accuracy and completeness of information on your credit report and to counteract abuses of power. Also a credit card history helps to establish who you are as a person and lets the card issuer know how you are going to repay your debt. How did you pay your debts? Did you do the repaying yourself? It is important to pay all your debts, including interest, on your credit card credit report and report it promptly.

Do you want to cancel your credit card?
There are many people who would not bother filling out their card statements if they have cancelled their credit cards entirely. Yet this is a very common problem for a lot of companies. Some cancel their credit cards entirely and when they try they often find themselves penalised with high monthly interest rates. But many cards remain in business for a very long time and this is a good thing since it will help many businesses to cancel their credit cards.

What are the disadvantages to canceling a card?
The first thing to consider with a cancelled card is the APR. This will depend on your period of use but is usually calculated at a rate of around 3.5%. This is not out of the question but not a major hassle especially if you do use the card often and try to pay your bill in full each month.

What is outstanding about a cancelled card is that it affects only the holder who paid off his or her debt in full each month. The low APR is something you should not pay off, something worth celebrating. If you have outstanding balances on your credit cards, cancelling them could save you some money.

What Are Balance Transfers?

It all sounds very technical to describe Balance Transfers; a transfer of your credit card balance to a new account. You may not understand everything that comes your way, it all depends on your financial situation.

Credit card companies that offer introductory promotions usually offer introductory interest rates, with no permanent effect for some time: interest may jump up, or drop off at certain points during that time. Some offer a 0% interest rate for a limited period so you’re sure you’re in good standing before new promotion kicks in. The best you can do is to find out what that lasts be certain that you’re within good standing prior to the interest jumping up entirely.

For example, if you’re carrying a balance of $5,000 to qualify for a $40,000 introductory 0% interest rate, that will put you into good credit standing – and that’s the important part, not the most technical of parts.