Maybe you heard the old tale about a guy who was going on vacation for a couple weeks, but was really tight with his cash and didn't wish to pay to have his car garaged for that period - nor did he want to park it on the road while he was not there. He went into a bank and inquired about a short term loan to finance his vacation, to which the bank manager asked, "Do you have any collateral?" The man replied, "Yes, I've got a car" The small loan was then paid into his bank account, and the car was put in the locked garage area underneath the building. Upon the man's return from his vacation, he went to the bank and repaid the loan entirely, including $15 interest.
The bank manager was perplexed and said, "Why take a loan when it was obvious you didn't need it?" The man smiled, "Where else in this town can I get safe parking for 14 days for $15?"
Naturally, it's an amusing urban story, but it does point us in the right direction when it comes to managing our personal finances. Take credit cards, for example. In the first place they were created to give financial flexibility in the high consuming period of the nineteen fifties, they quickly became an integral part of most people's lives in the Western world, but unfortunately have also brought grief to some. While it's true that credit cards can seem too easy to charge, with care they can be a positive boon, we just need to use them in the correct way.
Nowadays, competition in the market place has caused companies to create innovative types of specialized cards, for slightly various clients and uses. If your credit score is more than 700, for example, you could get a card with a low (ApR) annual interest rate. Even though you can still apply for cards when you have lower credit ratings, bad credit or perhaps bankruptcy, the conditions are different.
If there is a large balance on your current card, and you would like to make your payment burden a little easier, why not transfer your balance to a new card? There are cards out there which offer extended periods with no interest to pay, which gives you a terrific opportunity to reduce the debt or pay it off completely. A different option is to get credit cards which offer rewards for using them, rewards such as money back, points for air line flights or points that can be exchanged for other services. A secure card isn't really a credit card at all, but can only be used if the account is topped up first, by putting money into it. However, these cards report to the main credit agencies and so are a real help in rebuilding your credit rating after you have experienced past payment problems.
The bank manager was perplexed and said, "Why take a loan when it was obvious you didn't need it?" The man smiled, "Where else in this town can I get safe parking for 14 days for $15?"
Naturally, it's an amusing urban story, but it does point us in the right direction when it comes to managing our personal finances. Take credit cards, for example. In the first place they were created to give financial flexibility in the high consuming period of the nineteen fifties, they quickly became an integral part of most people's lives in the Western world, but unfortunately have also brought grief to some. While it's true that credit cards can seem too easy to charge, with care they can be a positive boon, we just need to use them in the correct way.
Nowadays, competition in the market place has caused companies to create innovative types of specialized cards, for slightly various clients and uses. If your credit score is more than 700, for example, you could get a card with a low (ApR) annual interest rate. Even though you can still apply for cards when you have lower credit ratings, bad credit or perhaps bankruptcy, the conditions are different.
If there is a large balance on your current card, and you would like to make your payment burden a little easier, why not transfer your balance to a new card? There are cards out there which offer extended periods with no interest to pay, which gives you a terrific opportunity to reduce the debt or pay it off completely. A different option is to get credit cards which offer rewards for using them, rewards such as money back, points for air line flights or points that can be exchanged for other services. A secure card isn't really a credit card at all, but can only be used if the account is topped up first, by putting money into it. However, these cards report to the main credit agencies and so are a real help in rebuilding your credit rating after you have experienced past payment problems.
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