Saturday, February 23, 2008

Credit Ratings and Credit Cards
Credit ratings or credit score are the records of a person's spending pattern regarding credit cards and the repayment modes. Financial institutions, especially the credit card companies and the moneylenders, keep track of the credit statements of clients, their payment records and any delay/inability of repayment and the interests being paid due to late repayment of the credit.

Ways To Boost Your Credit Rating

Credit card being a source of the ratings, it becomes necessary not only to use your credit card regularly, but also using it diligently. Once you have chosen the right kind of credit card with a suitable limit and interest rates, you need to start using your credit card for small and regular transaction, which you can repay easily at the end of the month. Regular transaction is important, because every transaction shows upon your credit report. You need to have less, probably one account only because as it qualifies you for a bonus while availing the credit or financing your home or car.

Using your credit card once a year or foregoing subsequent repayment and settling the balance at the end of the year might not stand you in good light in terms of credit ratings, as your credit report takes into account last three years' payment history. Any discrepancies on the part of credit card Company in issuing your statement or bill it should be brought to their notice immediately, since it may result in delay of payment or bad credit. Credit card could be used for monthly payments of bills, which would take care of the regularity of use, and smaller transactions can help in maintaining the required credit rating. Also regular and small transactions may help you increase your credit limit, which in turn accounts for a higher credit rating in the credit report.

Regular checking of your own credit report keeps you abreast with what to expect. Not exceeding the credit limit and keeping the balances low would help you in getting good credit ratings. Most important of all, it is better to repay the due amount before the due date to get better credit rating.

Compare Credit Cards Before Choosing
Everywhere you go, there is a shop or store that accepts credit cards. This makes credit cards the preferred mode of payment when purchasing. You don’t need to carry cash and you don’t have to pay for them right away. You can even pay your credit card company in installments. But you have to be wary about the interests rates and the services they offer. So you need to choose wisely which credit card you need to use.

Do you find it hard choosing the suitable credit card that can give you the best features, services and rates? There are many credit cards that offer several customer services that others don’t have. It is necessary to understand the reasons involved in selecting top rating credit cards.

Most of the time, people find it hard to select which credit card offers the best deal. Not only that, most of the credit card holders often ask questions on how they would gain and maintain a good credit ranking.

There are credit card companies who keep on promising their customers that they would give accurate services. While there are also credit cards that assure some credit card holder on how they will increase credit benefits.

Choosing the reliable credit card is very hard to do. There are many things to consider like set-up fee, annual fee, late payment fee, grace period fee and minimum finance charge. You need to check out every detail of the contract and agreement.

To further discuss about credit cards, here are some broad assortment of the comparison features and information guide to assist in selecting the best and appropriate credit card for you:

• An interest free periods credit card

It is a type of credit card that the interest period is only limited at certain period of time. For example, a credit card holder will have a month in order to pay the credit bills. If the credit card holder fails to pay the balance on a time allocated, the bank will charge the payer a certain interest.

Most of this type of credit card gives an extra amount of time for free interest period. The longer the free interest period of the credit, the more chances the payer can pay the balance interest free.

• Cash Back Credit Cards

Cash Back credit cards deal more on the offered percentage and the purchases the creditor makes. The cash receive can be sent in the form of check, cash receipt certification, or can be directly converted to the personal account number.

• Low Procure charge

Low charge credit cards offer a very small amount of interest rate, or typical amount of purchased product. If the balance continues to grow from month to month or having regularly obstructed by costly interest a low procure charge can be a great idea.

• Trade incentive credit card

Most of the incentive credit cards offer a vast amount of credit card bonuses. Bonus usually counted as points, the more points the larger the bonus. Bonus can be earned depending upon the agreement of the credit contract.

• Tour return incentive

Tour return credit cards offer the best deal for traveling allowance. Travel incentives can be earned by using flights, hotels, holidays, voyage and more and charging them on your card.

Travel return credit card holders can also get some rewards on hotel accommodations, parking, airport reservation, car rentals and meal discounts.

• Gifts Credit Cards

This credit card earns money for the holder and at the same time the charity of its choice. This type of credit card has a primary goal on helping charitable institutions without letting the holder spend any dollars.

• Gold and Platinum Credit cards

It is a variety of credit card that is made especially for people who have a good or outstanding credit status ranking. Both of the cards can have added benefits and worldwide recognition.

This kind of credit card can increase the obtaining power of the holder. It can also extend benefits like credit protection, anti-fraud guarantee, extended travel services and warranties.

Those are the different types of credit cards. It is up to the holder to choose which one is appropriate for them. It would be a good idea if they will talk to the nearest bank for some clarification or check out the many websites that offers these types of credit cards.

Credit Card Application