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Debt Watch: 4 Things that Credit Card Companies Don’t Want You to Know

Credit card commercials and other marketing efforts are full of happy people getting more out of life — and that’s fine. But there’s also a different and darker side to signing up for a credit card: one that credit card companies don’t like publicizing on TV and across posters and banners, since it’s certainly not to their advantage.   However, Eyes On The Dollar is all about educating and informing consumers so they can make safe, smart financial decisions rather than heading down the wrong road that leads to debt, and in some cases, bankruptcy.   As such, here are four eye-opening things that credit card companies really don’t want you to know — but that you certainly need to understand:   Your interest rate can — and almost certainly will — change without your approval.   Credit card companies don’t politely ask you if it’s OK that your interest rate will rise. Instead, they unilaterally increase it, and send you a letter letting you know (which they wouldn’t do if it wasn’t legally required).   A single late payment can hike your APR across all credit cards.   Being late with a single payment can hike your APR — ...

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Disadvantages of Using Credit Cards

Credit cards are in demand, and it will continue to be in demand because everyone wants quick financial solutions and credit cards are often considered to be the best source of temporary finance to keep them going. While there is nothing wrong with this ideology, it is important to understand that credit cards are not the best source of temporary finance for us. Today, we will look at the disadvantages of using credit cards and being dependent on it. 1. It is often used for luxuries than necessities With a credit card in our wallet, we tend to use it on luxurious rather than using it for necessity. This is where most of the problems begin in our lives, and we find it difficult to get back on track. If you are spending and amount unnecessarily on a luxury that is not required at the moment, you’ll have to face the consequences of the same for the next few months and even years. Using the money for luxuries when you do not have enough to satisfy your necessity is not a smart decision. 2. It can have a negative impact on your credit score If you have adequate knowledge about ...

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Should You Buy Using 0% Financing?

Should You Buy Using 0% Financing?

To some people, the idea of being able to get what they want now and pay for it later sounds great. The problem is that the bill eventually comes do and must be paid. So when you see those offers that promise you can buy now and pay later, should you take advantage of them? What about when it comes to 0% financing? In those cases, you aren’t really wasting any money on interest, as long as you follow the rules. But, before you sign on the dotted line for 0% financing, make sure you consider these things. 1. Know What You Are Getting Whether or not it is a good idea to take advantage of such offers as 0% financing depends on several things. For example, will you be in a financial position to pay off the balance in full before the payoff date? What happens if you have unexpected bills pop up that prevent you from being able to pay off the balance before the due date? You should know what you are getting into before you automatically accept such a method of financing for your purchases. What you are getting is basically a credit card. 2. Understand ...

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How to Start Your Financial Future Out on the Right Foot – Part Deux

Financial Future

Last time we talked about starting out your financial future when embarking on adulthood. This is a crucial time in anyone’s life because the decisions that you make during early adulthood can really make or break your future financially. We broke down the two biggies in the last article: cash and credit. In this article, we are going to dive into your credit score and debit cards. So let’s jump in! Benefits of Increasing Your Credit Score If you are putting things on credit and not paying off your monthly balance, then you are directly affecting your credit score NEGATIVELY. This is the opposite of what you want to do because your credit score can impact more than you think it can. On the flip side, if you pay your credit card off every month, you are only INCREASING your credit score. The bonus here is that the higher your credit score, the more you qualify for big purchases in the future. Two of these biggies are cars and houses, with a smaller third possibility at business loans and/or credit cards to start a business. Some employers and rental companies even look at your credit score as an indicator of ...

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How Borrowers Can Compare Terms and Make More Informed Choices for Credit Offers

Credit cards are one of the most prolific forms of lending that are available to borrowers. According to credit card statistics for January 2017 provided by the Consumer Financial Protection Bureau, 5.3 million credit cards were originated during the month. This number represents a small fraction of the total number of credit cards that are originated each year. How Many Credit Card Offers Did You Receive Last Year? One reason why so many credit cards are issued is that most consumers are bombarded by multiple credit card offers throughout the year. Just because a consumer is sent a credit card offer doesn’t mean that they should accept it. Each credit card issuer will offer specific terms for the consumer to use the card, and consumers should only accept credit card offers that will provide them the best deal. Choosing the Credit Card that’s Best for You Since so many factors can affect whether or not a specific credit card offer is beneficial to the consumer, it can be difficult to choose between credit card offers from the various issuers. Sites like CreditSoup have tools that allow consumers to easily compare the terms offered by specific credit card issuers. Sites like these also offer ...

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