Four Facts About Credit Cards You Need To Know

Credit cards can be a great tool. They can be used to earn trips. They can be used to avoid carrying large sums of cash. They can also be a major problem for people who do not use them properly. Getting a credit card is an important step, and there are some things the applicants need to know before sending in an application.

1. Credit Cards Can Cost Money

Many credit cards cost money to carry. Annual fees on common credit cards can range anywhere between $30 and $500 depending upon the card. Those with higher annual fees usually come with greater perks, but it is important to weigh whether the annual fee is worth the expense. There are credit cards that do not charge annual fees, and those who are not interested in rewards might rather opt for these cards.

2. Interest Costs Money

Credit cards can be convenient, and this convenience can lead people to spend more than they need to spend. Those who are unable to pay off their balance each month can get into trouble spending more than the actual cost of an item due to interest charges. Most credit cards charge between 10 and 20 percent per year on outstanding balances. This amount can add up for those who have made large charges over a period of months or years.

3. Credit Cards Can Pay Rewards

Holding some cards and paying off the balance each month can actually benefit some cardholders. Many cards will offer cash back. Getting one percent back by using a card on purchases that would be made anyway is smart. Other cards will offer travel rewards like hotel points or frequent flyer miles. These can be used for flights or rooms on future vacations. Of course, paying interest for failing to pay off the balance cuts into the benefit of these cards immensely.

4. Credit Cards Can Hurt Credit

Those who are unable to make the monthly payment on their cards can see their credit hurt immensely. Some people can get so deep into debt that it looks as though they might never escape. Those who find themselves in such dire straights might want to look to honest credit restoration companies that offer services like the credit repair by Lexington Law.

Credit cards can be a great opportunity, but this opportunity can also come with great responsibility. Those who are responsible can earn great rewards. Those who spend too much can get into serious financial trouble. Therefore, it is good to weigh the options when it comes to getting a credit card.

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How to Protect Your Finances While You are on Vacation

Your vacation is a time for fun, excitement and relaxation. The last thing you want to have to deal with is an attack on your finances. The unfortunate reality is that thieves never go on vacation. While people take great pains to not lose their cash while on vacation, few take the necessary steps to protect their credit. By following a few steps, you can assure that your credit is safe while you are away.

Talk to Your Bank

If you are going to travel outside of the country, let your bank know in advance. Some banks will shut down your account if they see fraudulent activity on your account. Your routine purchases at souvenir shops may raise red flags with your bank and cause them to freeze your account for your protection. This can be crippling if you are left in a foreign country with no access to your funds. In addition, this can cause any checks you have written to bounce. Call your bank in advance and let them know that you will be traveling.

Leave Copies of Your Financial Information With a Friend

Make copies of your passport, identification and creditcards and leave them with a trusted friend or family member who is not traveling with you. If you lose your wallet or purse, you can easily have access to these numbers and cancel all of your credit cards quickly.

Beware of Scams

A common scam that thieves play on unsuspecting tourists is the "broken ATM" scam. Criminals will rig a freestanding ATM to capture your card when you go to use the machine. While you are trying to retrieve it, the thief will approach you and offer to help. They will dial the bank on your behalf and hand you their phone. Their accomplice, posing as a bank agent, will instruct you to enter your PIN slowly several times into the machine. The thief will look over your shoulder and watch you entering your PIN. The "agent" will then instruct you to leave, stating that a representative will bring your card to your hotel. When you leave, the thieves will use your card and wipe out your entire account.

Many export risk management exports report that overseas fraud costs businesses huge profit losses every year. While these scams hurt businesses, they can be devastating to consumers.

Having your credit damaged while you are on vacation can be devastating. By being aware of your surroundings, planning ahead and being vigilant against scams, you can protect your credit while you are on vacation.

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