Credit Cards and Credit Scores – Understanding the Relation between the Two

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Cardholder Benefits » Credit Cards and Credit Scores – Understanding the Relation between the Two

Credit Cards and Credit Scores – Understanding the Relation between the Two

The content is accurate at the time of publication and is subject to change.
Until you fall ill, you do not realize how good you had it going. In the same manner, credit cards seem like a fixed part of your life no big deal nothing great about it until things turn bad. How essential it has become to have plastic cash turns to reality only when we have troubles with the credit card bills. When credit scores turn bad and lead to various situations and difficulties at employment, insurance, mortgage and more we realize that there is a factor that determines all these called as credit history. So now that you are in a rut, what you can do to fix it would automatically be the concern. There are steps that you can take to get this number back on track and you can even end up with a no annual fee credit card and a low interest one once your scores have gotten back to where they should be. Majority of the time it has to with late payments. Until you can work out a way to pay your bills on time and arrange for that process to happen when it should things are simply not going to fall in place. 35 percent of your credit score depends on how you use your credit cards. Even if you did pay but paid a few days or a day late it will still affect your credit history. Or else you may have to look at creditors who will not report immediately to the bureaus. Most people do not consider all of the variables when it comes to credit cards; they just get it and are off to shop thinking it is more money to spend. This is really not the case. When you have a credit card it is a means to shop more conveniently not an extended budget. If you cannot afford to close the balances then your interest rates will add on to it and you will end up with a large sum to pay off at the end of it. Another area to be careful about is online shopping. Do not make a payment with your credit card unless it is a site that is approved and known to you. If you do make a payment at some unknown website you are at risk for being scammed or being part of a fraud. Once your money is gone retrieving it will be a complicated process so it is as good as gone. Plus once they have your information through those channels they can misuse it in the future. Do not shop online except through trusted channels. If you have a child who has a credit card on which you are a co-signor you need to be careful about it. IF he or she is making extravagant purchases and missing the due dates it will damage your credit history as well. Ideally you could give them a prepaid credit card that way you have a hold on how much is being spent each day.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Autumn 2018: Best Rewards Credit Cards for Thanksgiving Shopping

Posted: November 8, 2018

Thanksgiving is coming, and whether you are hosting a meal or coming as a guest, your spendings are going to accumulate faster than you can notice. A holiday feast is a costly matter – each year Americans spend around $50 on a Thanksgiving ... Continue reading
The Best Credit Card for Earning Cash: Discover it® Cash Back

The Best Credit Card for Earning Cash: Discover it® Cash Back

Posted: November 2, 2018

You’ll have hundreds of dollars in your pocket in no time because you’ll earn money back on every purchase you make with this card. There are no restrictions on the amount of cash back you can get, and Discover even matches every penny you ... Continue reading
Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Top 5 Cards for Travel from Our Partners: Autumn 2018 – Expert’s Choice

Posted: October 10, 2018

Nights are drawing out, the wind is colder every day and you already feel the lightest breath of winter on your face - autumn is here. Holidays are over, kids are back to school and all you are left with are hefty holiday bills that you ... Continue reading
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!