Expensive Credit Card Usage Linked to Financial Literacy Levels

The Financial Industry Regulatory Authority (FINRA) surveyed credit card behavior across the sexes and came up with some interesting findings. A lower level of financial literacy encourages more women to engage in costly credit card usage. At the other end of the spectrum both the sexes were equally indulgent with cards despite high levels of financial knowledge. If you want to improve your financial habits and remain in the responsible borrowing category here are some tips that will help you overhaul your credit card usage. By following these tips you would be able to understand credit cards in a better way and be able to handle them wisely without compromising your financial stability.

Picking the right interest rate is very important to your financial health

If on an average women are seen to be splurging a half percent more than men on credit card interest, one of the best solutions involves conducting a thorough comparison styled shopping at key websites such as creditcards.com, indexcreditcards.com or creditcardguide.com. Take your sweet time because the interest rate could veritably make or break your finances.

Categorize the credit card expenses to gain better control

If budgeting is the heart of personal finance, lose no time in organizing your cards so that you gain an idea which heads are incurring maximum expenses, this being the first step towards controlling expenses. Keep different cards for business and personal use, but not too many.

Understanding how retail discounts encourage over spending

Women are more compulsive shoppers than men and they need to assess whether the benefit that any discount offers outweighs the risk of increasing their debt. They should ask themselves each time whether they are in a position to handle the additional card fees, and interest payment if they cross their payment deadline.

The ratio of your debt to your credit limits should be a healthy one

The favored technique of a credit card company is to dangle a raised credit card limit as a special offer tailor-made for you. Such offers are like irresistible magnets, especially during shopping season. Learn to keep drawings within 30% of your overall limit, as this keeps your credit score sufficiently high at all times.

It pays to keep reviewing your credit report at least annually

The worse your rating gets, the more unfavorable the terms of lending become. You will start attracting excessive fees, higher interest rates, more penalties and a more expensive loan overall. Make sure that your report is free from glaring errors and doesn’t contain information that pertains to somebody else. Ensure that all your payments are correctly reflected in the report.

Pay up on time and don’t get tempted to linger on minimum balances

Many cards carry interest payments that drain your money very fast. If you stick to maintaining only minimum payments it may take ages for you to repay even medium sized bills. The reason is that an extremely high               interest rate kicks in quickly pushing the debt beyond your reach.

If the burden of too many credit lines is too much to bear…..reach for a vehicle title loan

Not many people know this but the answer to your financial problems may be lying in your garage. The loan for vehicle title gets you more than 60% of the equity lying dormant in your vehicle, and all you need to offer from your side is the collateral of the car title pink slip. The car equity loan can be acquired quickly and can be effectively deployed in liquidating unsecured loans and small and medium sized loans that threaten to upset your financial apple cart. The auto equity loan charges interest of 25% APR which is the most competitive rate among short term loans. The pawn car title loan can be liquidated easily through convenient installments matched to your full time or part time income.

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