The Right Credit Card

May 11, 2012 by  Filed under: Credit 

Credit card debt is becoming epidemic, especially in today’s economy. More than ever people are forced to using their credit cards to pay bills and buy essential living expenses. As one of the largest sources of debt brought into bankruptcy, credit cards can be a huge burden for many families. However, there are choices when it comes to credit and finding the right credit for your stage of life can be the difference between financial success or disaster.

Life Stages

If you are just starting out you are in a prime position for taking control over the future of your finances. At this point in the game you probably lack an adequate credit history to qualify for good lines of credit, which will limit your options. Because you lack a credit history your goal with securing new credit at this point should be to establish a positive borrowing history. To do this, look for a lower limit card that contains the best interest rate. Chances are you will end up with a higher than average rate, but that is not a problem as long as you keep your spending to a minimum. Remember your goal is to demonstrate responsible spending and payments, not float the costs of large purchases.

If you have a well established credit history you will probably qualify for a much better credit deal. However, smart credit use is still a priority. At this point you may be looking for a higher credit line or low interest rate. Although not the most common, you can have both. The key is shopping around to different creditors to compare offers. When you have a long, positive credit history you are in a unique position to negotiate your credit terms. As always, be sure to secure the deal that will benefit your financial goals and not lead you down a path into overwhelming debt.

If you have experienced debt troubles or even filed for bankruptcy, there are still lines of credit available to you. Although these types of credit cards are likely to carry less favorable terms, it doesn’t mean you can’t get back on track to financial stability. The key here is to avoid unsolicited credit offers and prepaid credit cards. There is a large push for targeting post-bankruptcy consumers to offer credit lines with stingy terms. Any unsolicited credit at this point should be ignored. Prepaid cards are also becoming more popular, but do nothing to boost your credit.

The Lee Law Firm aims to provide local residents with high quality legal representation at affordable rates. Their attorneys specialize in all aspects of credit negotiations. As debt lawyers, the Lee Law Firm attorneys understand the pressures their clients face as they battle a financial hardship.

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