Credit cards are a fairly new and effective method of payment. Once an individual has applied for a credit card, the company will review the consumer’s financial information to determine whether or not he or she would make a good candidate to be a cardholder.  Credit cards can be applied for online or at various public sponsored events. Once accepted, the cardholder is given a set monthly spending limit, to prove that he or she can pay back the money lent to them for purchases by the credit company. Credit companies will then raise or lower spending limit depending on accountability, the amount of late payments if any, and how late each payment was. Also, a consumer is not limited to a single open credit line, or credit card account. One may apply for as many credit cards as are available, to satisfy spending limits, but the more lines of credit open, the more financial risk is created. By having too many lines open, if a financial collapse occurred, the individual would owe large sums of money to many lenders, as opposed to obeying their financial limits and only owing a small amount at a time, or preventing credit damage altogether.

Some of the types of cards that exist now include:

  • 0% Interest Credit Cards
  • Low APR Credit Cards
  • Reward credit cards
  • Cash Rebate Credit Cards
  • Airline Miles Credit Cards
  • Auto/ Gas Credit Cards
  • Business Credit Cards
  • Student Credit Cards
  • Bad Credit Credit Cards

For an individual with credit cards, on-time payments and spending well below the spending limit is imperative for future benefits. Good report with a credit company will eventually act as a positive factor in raising one’s credit score, or evaluation by major lenders. With many mega-lenders like Visa and MasterCard, there is a multitude of choices to provide each lender with a credit card suited exactly to his or her needs.

Using, consumers are shown the ropes of credit-do’s and credit-don’ts.