Credit Score - The FICO Score
Your credit score is a value that shows an estimation of creditworthiness calculated according to special statistical models. A credit score quantifies the possibility that a borrower will fail to pay a loan or credit card debt. Credit score is based on the information in your credit report. Read more... 
by J. McKenna and C. Makela
Quick Facts...
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If you travel, a bank or travel and entertainment card will eliminate the need for carrying large sums of cash.
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Buy items on sale using your credit card only if you actually need and will use them.
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Pay each month's bill in full and avoid interest charges.
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Know how much you have charged on your card(s).
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Compare fees, terms, and interest rates of at least three lenders when selecting a credit card.
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Know the phone number to call if your cards are lost or stolen.
Fraudulent Transactions
Many banks that are the Issuers and Acquirers installed different fraud detection systems that determine according to special algorithms suspicious transactions on a cardholder accounts or a merchant premises as well. After detection banks have to take the necessary actions to investigate the suspicious transactions and confirm with the legal cardholder if these transactions were made by him. If the response from genuine cardholder is negative that means they`ve got a credit card fraud! Read more... Credit cards are a widely used source of convenient credit for restaurants, hotels, mail order, on-line shopping, gasoline stations, grocery stores, dental and medical care, church bazaars, as well as telephone and television advertised products. There are many advantages of using credit cards, but the consequences of misuse can be drastic and painful.
Advantages
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If you are away from home without cash, you often can receive a
cash advance or have the option of buying traveler's checks with a
credit card.
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Places that are suspicious of personal checks often take credit cards.
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Credit cards act as a short-term loan if you find something that is a
bargain and haven't the cash or balance in your checking account to
pay for it.
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Credit cards eliminate the need to carry large sums of cash.
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If you move to a new place, credit cards give you purchasing power until you establish yourself as a good risk in a new community.
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If you charge an item or service that costs $50 or more in Colorado (or within 100 miles of your home) and later discover it doesn't work or has other problems, you can withhold payment from the credit card company if you have attempted to resolve the problem
with the merchant.
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You often get the best rates of exchange when traveling in foreign countries if you use your credit card for purchases and your ATM card to get cash. Check with your card issuers about surcharges before you leave on your trip. A two to three percent surcharge may
eliminate this advantage.
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Credit cards can help coordinate receipts for tax purposes.
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Bookkeeping is reduced to one monthly bill as opposed to checks.
Disadvantages
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Adding monthly interest charges means you pay more for the goods
and services.
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Consumers often have more than one credit card and each one has a
credit limit. When the credit limits for all cards are added up, the
total can be in the thousands of dollars. Consumers can fall into the
habit of using credit cards to extend their income.
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Credit cards are easier to use than applying for loans even when a
loan from a credit union, bank or other financial institution may
provide the funds at a lower interest rate.
Some people have been swindled by giving their credit card numbers to dishonest salespeople over the phone.
3in1 Credit Report - Seeing What Needs To Be Improved
Neglecting to monitor your credit history may damage your credit score. It does not take long for a person to access your personal information and open accounts in your name. For this matter, consumers are advised to order a 3in1 credit report every six months. Read more... |
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