APR rates on credit cards?
There are a lot of ways to get a lower APR on your credit cards. First, I would call your credit card company to see if they will lower your APR, but it is possible that the bank who backs your card (or the specific card you have) has a minimum APR of 22%. If they will not lower your card APR, GET A DIFFERENT CREDIT CARD. Check out the "terms and conditions" of prospective credit credit cards to see what their rates are before you sign up. Only look for cards with no annual fees - there's no need for an annual fee on the vast majority of cards. If you decide to get a different card, DO NOT CANCEL YOUR FIRST CARD. This is for two reasons: (1) a large portion of your credit score is based on your credit history, and if you cancel your old cards it will limit your history and negatively affect your score; and (2) if you have a large amount of unused credit, it shows lenders that you can handle your credit and it positively impacts your credit score. Hope that helps.
I need advice on credit card debt?
I am a 22 year old college student. Currently I have about $4,000 on a credit card from car payments, car repairs, school books and other necessities. What ways can I get out of this debt? Or should I wait until I graduate and get a full time job?
Should I get another credit card?
I'm 22, will be 23 this year. I have 3 credit cards in my name. I got my firest credit card when I was 19 and it was a gas card with a limit of $300. I also got a real credit card that had a limit of $1000 right when I turned 20. Last Novemeber I got another credit card that has a limit of $500. Whenever I use my gas card (maybe 3-4 times a year) I make sure to pay it off the next month. My credit card with a limit of $1000 has a balance of $577 on it and I plan to have it paid off in June or July. And my other credit card with a limit of $500 has a balance of $297 on it. That one has no interest so I am paying it off slowly (even though I could pay it off all right now). My aunt told me I should open another credit card since having more credit cards will help my score and since I'm looking to buy a house next year it can help with that too. Is that true? I am very responsible with my money and make my payments on time every month. I have never been late and I pay more than the minimum due. When would be the best time to get another line of credit? Should I not even worry about a credit card right now??
Should I consolidate my credit cards??
It looks like you have $23K of debt, and an income of $9600 per year. With the interest involved in CC debt, it is going to take you a long time to get out of debt if things stay the same. You didn't mention what your current expenses are, i.e. rent, food, utilities, etc. First thing, cut up the credit cards. Your income and obvious spending habits are not compatible with credit cards. My suggestion is for you to sell the car for as much as you can get, and get a good, cheap used car. You cannot afford that "cool" car right now. By selling the car, you will free up the payment amount to start paying down those credit cards. STOP SPENDING on anything other than the essentials. Lastly, get a part time job and put ALL the income toward paying down the CC debt. Credit cards have horrid interest rates, so the sooner you clear them, the better off you are. Once you get the CC debt cleared, then you can think about a better vehicle. You are 24. You will get to the point in your financial life where you can afford better and more "stuff". But for now, pay off that debt so you don't ruin your credit rating.
Is a Master Card a Debit Card or Credit Card?
Master Card has both. Some bank cards (atm cards) are affiliated with Master Card, Visa or AMEX. And, of course, Master Card also has regular credit cards as well. In fact, some cards are BOTH a debit and a credit. If used with a pin, it is a debit. If used without a pin, it is a credit. I have one such card. In summary, it could be a debit, credit or both. Call the number on the back if you don't know the answer.
Is 22 percent APR high for a credit card?
Yes, 22% is high. If you do not carry a balance month to month, you wouldn't need to ask which card has a low APR. LOL It wouldn't matter! Also, you have to qualify for cards that offer low APRs.
I'm 35 years old. I have about $23,000 in credit card debt. How do I get out of debt?
It's not going to be easy but certainly possible (I've done it).You need:Income: you must have enough to cover your necessities and your debt paymentsSpending budget: absolute must to know how much you can afford to pay down per month (or whatever)Discipline: took me good couple+ years sticking to my budget to pay it off. Some financial knowledge is also good to have: Which card to pay first, second and how much each: typically focus on paying down the principal from the card with highest amount of monthly interest, until the next card becomes higher all along making required minimum payments. Refinancing debt with new debt: there will constantly be credit offers with intro rates lower than yours, but with transaction fees (which are simply prepaid interest), you need to be able to tell if you would benefit from doing thatDebt terms you need to be well familiar with: minimum monthly payment, APR, introductory rate, transaction fees, annual feesIf income, budget and discipline are an issue, consider debt reduction (write off) by directly negotiating with the creditor or via credit councelling agency. Your credit credit card debt is unsecured, or rather secured by your credit score, so while your score may suffer for a few years, you would walk away with reduced debt.
How many credit cards should I have? I am 23 years old with zero debt and a 750+ credit score
Anonymous’ answer is correct (“Having additional cards decreases your debt/credit ratio, …”) but I would like to expand on it here as a comments don’t get read as often.It is better for your credit score to never go close to the cards credit limit (keep it 75% or less as rule of thumb) as going over is a ‘signal’ to credit rating agencies you are not ‘managing’ your debt load well (and/or you are in trouble and starting to live off your credit card). Having several credit cards would help you keep from maxing out one.The downside is when you go for a mortgage. Then your credit limits get summed when assessing your total debt load which reduces your mortgage borrowing limit.If you have your financial act together (most people do not have the discipline for this - it is dangerous advice so use caution …) you can use credit cards as your source for emergency funds. THIS IS FOR PEOPLE WHO ARE GOOD SAVERS, PAY OF THEIR CARDS 100% EACH MONTH AND WANT TO GET HIGHER INVESTMENT RETURNS! By definition, emergencies do not happen often, if lucky - never. Having cash or near cash reserves puts a drag on potential investment returns. Using the UNUSED credit limit on credit cardS you can get by for some short time just paying the minimum interest (but it will end up being very costly - like I said, use with caution!). This (vaguely) relates to the number of credit cards question in that at 23 each card’s limit you can qualify for might be fairly low to start. Rules of thumb for cash/near cash reserves are 3–6 months of salary so if you were to use this risky strategy, get the number cards credit limits to reach this amount.A more conservative answer is get two from different card companies (Visa, MCard for ex) so if one gets declined, you have another chance at avoiding embarrassment.
How can I reduce a credit card debt of around 40,000 USD with a 22% interest yearly rate, having a monthly salary income of around 3,500 USD (including second job) with expenses of the same amount after reducing all costs (including interests)?
22% on such a high balance is what's killing you; apart from looking for a higher paying job, an effective change you may be able to make is to reduce the interest you are paying.If your income is reliable you may be able to get a personal loan from a bank that would be at a lower interest rate than your credit cards. I don't have any knowledge of banking in Mexico, but credit card rates are also about 22% in my country and personal loans more like 10-14%; so if you could get a loan it could reduce the interest you're paying by a half or a third. That could save you a few hundred dollars each month.If you have family you could ask to borrow some money, if they will lend you some money at 0% interest you could reduce your credit balance, which would reduce the interest you are being charged and allow you to pay down the credit card balance faster.Do credit cards in Mexico have balance transfer promotions? Some credit card companies will give you a period of time (maybe 6 or 12mths) where they charge no interest if you move debt from another credit card to a new card with them - doing this would reduce your interest bill allow you to pay down the credit card balance faster. If you do this you should cancel the card that you have moved the debt over from so that you don't start accumulating new debt.Do banks in Mexico have hardship provisions? Banks here may give you an interest free period if you can show you have experienced hardship - such as your medical problems. You still have to pay off the debt, but removing the interest burden would enable you to pay the debt down faster.