CreditCardz Blog

  Credit cards can be a useful financial tool for debt repayment, reward earning, and credit score development. But it can be challenging to know how to get a card or where to start choosing the best credit card for you if you've never owned one. Selecting a credit card is an individual choice that should be based on your specific spending preferences, and your objectives, whether they are earning cash back on your regular purchases or accruing points and miles for travel. And most importantly, you should use a credit card only to purchase items that you could afford with cash and that you're able to pay off without carrying a balance, which acquires a high interest. What factors should you consider when choosing a credit card? The specifics you should look for in a new credit card are largely determined by your priorities. For example, if you want to maximize bonus rewards on daily expenses or begin earning toward your upcoming trip, look for rewards programs that match ...

You might be unaware of the damaging effect this action will have on your credit score as you use your credit card to make yet another large purchase, coming closer to the limit. The same holds for making an occasional late payment on your electricity bill or auto loan. Your credit score may be significantly impacted by mounting debt that is not repaid in full or on time. Here are some of the drawbacks which have negative consequences of having a poor credit score. Your Loan Requests Might Not Be Accepted Creditors and lenders are less likely to lend you the money you need because they view borrowers with bad credit as high risk. If you're looking for a loan to finance a new car or a mortgage to buy a house, your loan applications might be turned down. High-Interest Rates Will be Applied If you are granted a loan, the interest rate you will be charged will probably be extremely high. Lenders charge you a very high-interest rate on your loan because they observe people with b...