Unsecured Major Credit Cards - A Flexible Financial Tool
Before discussing unsecured major credit cards, let us discuss the difference between secured and unsecured cards.
A secured card is a card where in you are obliged to open a savings account with the bank known as a security deposit.
If you don't have any savings account or if you have a savings deposit account in the bank, the credit card provider will tied with your savings account for the reason as proof that you can handle a line of credit.
This secured card has an annual fee and higher interest rates, but they may not be as high as unsecured cards.
Lenders want to see that you have credit worthiness and that their money is safe in your hands.
Now, regarding the unsecured major credit cards, this does not need some proof like a savings account with the bank.
The unsecured cards may give you a credit line even you have bad credit.
Here, they have higher interest rates and penalty due to the fact that it is more risky since no savings deposit required compared to secured cards.
Some businessmen prefer the unsecured major credit cards rather than secured cards for the reasons, it is more flexible using their credit.
Although the secured and unsecured major credit cards has their pros and cons so making the right choice is your decision.
Whichever you choose, what's important is that you need to pay your obligation and remember that failure to keep up with your payment would bring damage to your credit history.
So choose wisely and do your obligation whenever you have secured or unsecured major credit cards.
If ever you stop making payment on your major credit card or late fees, interest usually are added to your debt each month and if ever you exceed to your credit limit, then another charge or fees will be added which make your debt double or triple where in you cannot pay it.
Then that is the start of your bad history.
So before getting unsecured major credit cards, one should take control of your financial situations, do a realistic assessment on how much money you take home and how much money you are going to spend.
Make a list of your income and fixed expenses such as electric bills, water bills, mortgage payment, car and others.
Prioritize your daily needs such as food; minimize your expenses in clothing since you cannot use 5 clothes a day for sure.
Do some budgeting and avoid purchasing wants.
As you can see, wants are not really expensive but if you total that for a month, that is already a big amount of money.
If you have extra money, pay your card early to avoid penalties.
It is more helpful if you track your spending patterns, identify unnecessary expenses and prioritize the needs that are more important.
There are millions of people that are in debt due to over spending, if only they can live within their means, for sure they are out of debt.
Be contented of what you have, don't add anything which you cannot afford to handle.
You cannot bring all of that when you are gone anyway.
So think twice and be wise in handling your unsecured major credit cards.
A secured card is a card where in you are obliged to open a savings account with the bank known as a security deposit.
If you don't have any savings account or if you have a savings deposit account in the bank, the credit card provider will tied with your savings account for the reason as proof that you can handle a line of credit.
This secured card has an annual fee and higher interest rates, but they may not be as high as unsecured cards.
Lenders want to see that you have credit worthiness and that their money is safe in your hands.
Now, regarding the unsecured major credit cards, this does not need some proof like a savings account with the bank.
The unsecured cards may give you a credit line even you have bad credit.
Here, they have higher interest rates and penalty due to the fact that it is more risky since no savings deposit required compared to secured cards.
Some businessmen prefer the unsecured major credit cards rather than secured cards for the reasons, it is more flexible using their credit.
Although the secured and unsecured major credit cards has their pros and cons so making the right choice is your decision.
Whichever you choose, what's important is that you need to pay your obligation and remember that failure to keep up with your payment would bring damage to your credit history.
So choose wisely and do your obligation whenever you have secured or unsecured major credit cards.
If ever you stop making payment on your major credit card or late fees, interest usually are added to your debt each month and if ever you exceed to your credit limit, then another charge or fees will be added which make your debt double or triple where in you cannot pay it.
Then that is the start of your bad history.
So before getting unsecured major credit cards, one should take control of your financial situations, do a realistic assessment on how much money you take home and how much money you are going to spend.
Make a list of your income and fixed expenses such as electric bills, water bills, mortgage payment, car and others.
Prioritize your daily needs such as food; minimize your expenses in clothing since you cannot use 5 clothes a day for sure.
Do some budgeting and avoid purchasing wants.
As you can see, wants are not really expensive but if you total that for a month, that is already a big amount of money.
If you have extra money, pay your card early to avoid penalties.
It is more helpful if you track your spending patterns, identify unnecessary expenses and prioritize the needs that are more important.
There are millions of people that are in debt due to over spending, if only they can live within their means, for sure they are out of debt.
Be contented of what you have, don't add anything which you cannot afford to handle.
You cannot bring all of that when you are gone anyway.
So think twice and be wise in handling your unsecured major credit cards.
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