Experts Reveal the Credit Card Fundamentals Consumers Should Know About

(Newswire.net — April 11, 2017) Tallahassee, FL — Having a credit card is an opportunity to make financial transactions easy, fast, and secure. However, when it is not managed properly, it could result in a financial disaster.

Experts reveal the credit card fundamentals consumers should know about. It is important to remember that there are actually many different types of cards to choose from. There are general purpose cards and there are also private label retail cards.

General purpose cards can be utilized everywhere, while private label retail cards can be used only at the issuing service station or store. Consumers should understand that a majority of general purpose cards are unsecured. This means that the issuer uses the credit history to extend one’s credit line.

According to Robert Manning, professor of consumer finance and director of the Center for Consumer Financial Services at the Rochester Institute of Technology, consumers should consider asking the issuer if they would make an unsecured card available once the credit history is built.

Consumers are also advised to report to credit bureaus otherwise they won’t be able to build a history at all.

It is important to note that secured cards are usually supported with funds consumer put in their deposit account and which creditors can claim in case of default. Since creditors assume minor risk with secured cards, it is easy to qualify and is ideal for individuals with unestablished or damaged credit.

According to myFICO.com, an average consumer actually has nine credit cards. The website is the consumer division of the company that invented the FICO credit risk score. Experts say that there is actually no perfect number of credit cards that consumers should have.

Consumers should ensure that when they want a retail card, it is used for a store they frequently get business with.

Consumers are also advised to understand the interest rates of their card, which can range dramatically. The card’s interest rates may range from zero percent to 30 percent.

The annual percentage rate (APR) is often calculated by creditors through factors such as current debt load, assets, income, credit score, payment history, and economic conditions. The ones who receive the best rates are often those with positive and proven credit histories.

These are just some of the information and tips in managing a credit card. In addition to these tricks, consumers are also advised to offer better protection to their debit and credit cards against identity thieves.

One of the best ways to do this is to simply use the RFID blocking sleeves, which can be purchased at amazon.com

(www.amazon.com/RFID-Blocking-Sleeves-Protector-Protection/dp/B0150T0AI2/).