Get a bad credit car loan and LEARN RESPONSIBLE USE OF CREDIT CARDS

Use Credit Cards responsibly and get a bad credit car loan today!
Using Credit Cards Responsibly

Use credit cards in accordance with a written budget; making sure that your budget also includes a savings plan. A credit card is not a financial lifeline; it should only be used to charge items you could pay for if the credit line were not available.
  • Credit cards offer convenience and flexibility when you do not have cash, basically buy now/pay later scenario.
  • Credit cards can help build a credit profile history which is essential when you apply for a car loan or want to purchase a home.
  • Credit cards allow you access to credit in an emergency situation.
  • Often a credit card is needed to reserve a hotel room, rent a car, purchase a airline ticket, etc.

Suggested Guidelines:

  • Make Payments On Time: It's a good idea to set up auto pay with your banking institution for your car payment, home mortgage, and student loan payment. Additionally you can set up an auto pay of the minimum amount due for a credit card, rely on this only to cover yourself to avoid an accidental late payment fee.
  • Pay More Than the Minimum: Your monthly credit card statement should provide information about how long it will take for you to pay off a balance if you make only the minimum payment, and shows how much you will save by paying it off monthly.
  • Read your Credit Card Agreement: Terms and Conditions vary from creditor to creditor, as well as with any loan institution. It is imperative that you read through every loan or credit card agreement before you sign the dotted line.
  • Check Your Monthly Statements for Accuracy: Protect your credit by checking your statements for accuracy.  If you find an error contact your credit card customer service immediately.
  • Stay Below Your Credit Limit: Credit Utilization Ratios, are essentially how much credit you have available, juxtaposed to how much you are actually using, and this plays a big factor in your overall credit profile. It is used by credit bureaus to determine the amount of risk they are extending to provide you a loan.  It's crucial, for your credit profile, to avoid getting close to your credit card limits; try to only use 25% or less of your available credit at any given time. If you carry a balance that exceeds 70-75% of your credit limit it can be a red flag and may harm your credit score.
  • Report a Lost or Stolen Card Immediately: Although many credit card companies offer 0% fraud liability, some issuers may hold you responsible for up to the first $50. If you report the card immediately you will not be held responsible for unauthorized charges.
  • Teach Your Children About Credit Cards: Children and teens need to learn how to be a smart credit card users. It is important to combat their misconceptions about the use of plastic as being the same as money. Teaching children a healthy mindset with credit cards is best to take place while they are still under your roof and in a position to listen.
Shop for a credit card: fees, interest rates, finance charges, and benefits vary with each issuer.

Click to view the Consumer Financial Protection Bureau's Credit Card Agreement Database

But what's in the fine print?

Annual Percentage Rate:
  • cost of credit as a yearly rate must be disclosed
  • APR must appear on your monthly statements
  • Issuer must disclose the periodic rate, which is the rate applied to your outstanding balance to determine the finance charge for each billing period
  • Issuer must disclose if it is a variable interest rate based upon economic indexes and what rate they may charge
  • Issuer must disclose your credit limit
  • Issuer must disclose how often your interest rate may change

Grace Period:

  • the number of days you have to pay your bill in full without a finance charge
  • statement date is on the bill, and may tell you have 25 days to pay the balance in full by the due date
  • usually just applies to new purchases
  • most cards do not give a grace period on cash advances or balance transfers, rather the interest charge starts immediately
  • If you do have a grace period the issuer must mail your bill at least 14 days before the due date; giving you ample time to pay
Annual Fees, Transaction Fees, and other charges:
  • Some credit card issuers charge an annual fee; often times if you are receiving a reward such as accumulating airline miles as you make purchases you will have some kind of fee attached.
  • Some issuers charge a fee for a cash advance, make a late payment, or exceed your credit limit

Unauthorized Charges:

  • if your card is used without your permission  you may be help up to $50 per card.  If you report the card as lost or stolen before any unauthorized charges are made you will not be held responsible
  • minimize your liability by reporting the loss as soon as possible
  • follow up with a letter to your issuer with your card number, the date you noticed your card was missing, and the date you reported it lost or stolen
  • Keep a Record of your account numbers, expiration dates and telephone numbers for each issuer so if you need to report a loss you can do so quickly.

For more information visit the Federal Reserve's Consumer Guide to Credit Cards

It is strongly suggested that you find a reputable attorney to answer any legal questions.  The this information may help you to have a better understanding of how credit cards can affect your credit score and provide answers to your questions, but it in no way serves to completely educate an individual on the use of credit cards.

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What are the differences in Credit Cards?

Credit Card:

  • some credit card issuers charge an annual fee
  • some credit card issuers provide "courtesy" checks to their customers
  • if you don't pay your monthly statement in full you will owe a finance charge
  • the finance charge depends on your outstanding balance and the annual percentage rate
  • if you don't pay on time you usually have to pay a late fee
  • Use to buy things and pay over time; consider it is a loan you have to pay back.

Charge Card:

  • you must pay the balance in full with every monthly statement.

Debit Card:

  • allows you to make purchases by accessing the money in your checking or savings account.

Prepaid Credit Card:

  • a card that allows you access to money up the the amount you have paid in advance of using the card for a purchase
  • a gift card is a type of prepaid card
  • some allow you to access cash at an ATM