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Credit cards can increase your purchasing power, but how many credit cards are too many? There are both pros and cons of having multiple cards.
Continue ReadingIf you’re still using cash, credit, or debit every time you buy something and are looking for a simpler way to make your payments, creating a digital wallet—aka ‘mobile wallet’—may be the answer. Digital wallets offer a convenient alternative to traditional payment methods, and they don’t require you to carry a wallet full of cash or credit or debit cards to make a purchase.
A secured credit card is a good way for those with little or no credit history to build credit. But there’s one major difference between a secured and an unsecured, or traditional, credit card. A secured credit card requires that some security, or collateral, be tied to it to minimize the card issuer’s risk. This collateral is in the form of a monetary deposit, which the card holder is required to make before they can start using a secured credit card. This deposit is typically equal to the credit limit of the secured credit card.
If a lack of credit history or a poor credit history is standing between you and a credit card, it may seem like an insurmountable obstacle to overcome. It’s difficult to get a credit card without some history of using credit, but using a credit card is one of the primary ways to build a credit history.
If you’re in the process of trying to build—or rebuild—your credit, you may’ve discovered that it’s tough to do so without actually having any credit. Most credit card companies want to see that you’ve demonstrated responsible credit usage prior to granting you a credit card, but how are you supposed to demonstrate responsible usage if you don’t have any credit to use responsibly?
This material is for informational purposes only and is not intended to replace the advice of a qualified tax advisor, attorney or financial advisor. Readers should consult with their own tax advisor, attorney or financial advisor with regard to their personal situations.