Every credit card comes with a credit limit. As long as you don’t go over your limit, there won’t be any penalties not from your credit card issuer anyway. Many credit card consumers don’t realize how bad it is to max out their credit card(s). If you have multiple cards, try to keep the balances evenly distributed amongst them, so you never run into this situation. Here are 3 reasons why you should never max out your credit card.
Hurts Your Credit Score One-third of your credit score depends on the “credit utilization ratio”, which is the amount you owe versus the credit line available to you. For example, if your credit card balance is $300 and your credit limit is $1,000, then your credit utilization is 30%. The lower this percentage is, the better your credit score will be. Experts recommend keeping your credit card balances below 50% of the available line of credit given to you.
Foreign transaction fees are charges commonly added to your credit card statement when you make a purchase in another country. Card issuers say these fees are in place to account for the currency exchange from one country to another, but speculation always exists about where this money really goes. Most foreign transaction fees usually range from 2% to 3% and are billed per transaction. Even if you aren’t traveling, it is possible that a purchase you make with a foreign merchant may also incur a foreign transaction fee.
It is wise to monitor your credit card statements on a regular basis to watch for fraudulent purchases or incorrect charges. When you first see a foreign transaction fee you might be a little confused or alarmed. These fees are very common with most credit card issuers, including American Express, Bank of America, Chase, Citibank, HSBC, Wells Fargo, and Discover Card.
Most common credit cards are known as unsecured credit cards, meaning they don’t require a deposit to fund the card. Secured credit cards, on the other hand, are typically funded with a security deposit that is refillable by the cardholder. Much like a gift card or debit card, the consumer can only spend what they have. Unsecured credit cards usually offer lower interest rates as well as credit checks and credit approval, as well as a set credit limit.
Here are a few other important points to understand about unsecured credit cards
- Consumers with decent credit or good credit typically benefit most from the unsecured cards due to the lower interest rates.
- Consumers with poor credit may still be able to get approved for an unsecured card, but it may offer a very small line of credit.
If you are in the market for a new car it is important that you check out all of your options. For example, how do you feel about leasing a car as opposed to buying it? Asking yourself this question may open up a whole new world of possibilities for you if you feel comfortable leasing a new vehicle. (Here’s some information: Leasing vs Buying) Regardless of whether you are interested in leasing or buying there are few things that you have to get straight in order to get the best deal possible.
Car Price Negotiation Tips
Make sure that you are not too eager when you walk into the car dealership. Salesman can smell an eager buyer coming from a block away. Once they know you are interested in leaving with a new car that day it will be difficult for you to get the best deal possible on a purchase, or lease, price. This is simply human nature.
Citi has just upped the ante in the 0% credit card game. For the Citi Platinum Select MasterCard, Citi has increased the 0% introductory offer. It now offers 0% APR on balance transfers and purchases for 21 months. Citi now has the best balance transfer offer by three months compared to its next closest competitor.
Citi Platinum Select MasterCard
- 0% Intro APR on balance transfers for 21 months and 0% Intro APR on purchases for 21 months. After that, the APR will be 11.99%-20.99% based upon your creditworthiness.
- Extra Cash from Citi: enjoy discounts on gift cards, travel, merchandise and more
- Citi® Identity Theft Solutions
- Secure, free online account management
- No annual fee*
- 0% Intro APR on balance transfers for 21 months and 0% Intro APR on purchases for 21 months.
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