Connect with us

Hi, what are you looking for?

News

Not All Credit Cards Are Created Equal

Be on the lookout for unsecure credit cards.

Everyone and their grandma is coming up with their own payment methods these days. Amazon has a credit card, PayPal has a credit card, Apple has a credit card, heck, even Starbucks has a credit card. Some of these esoteric cards can be useful if you patronize their associated businesses frequently enough to reap their rewards. However, not all cards have your benefit in mind. There are credit cards out there, commonly referred to as unsecure cards, that for one reason or another, could end up costing you far more than they save you. Before you sign up for a new card, make sure to screen it carefully for warning signs.

If you pay off your full balance every month, then you don’t have to worry about things like interest rates. Of course, everyone has their own financial situations, so sometimes a little interest is unavoidable. Properly secured cards will usually charge reasonable rates, provided you have decent credit. Certain cards aimed at those with less than stellar credit, however, can charge interest rates of up to three times the other guys. This is deliberate- if you’ve got a history of carried-over balances, they want to take advantage of that to bleed you dry.

Credit: Unsplash

Speaking of bad credit, any credit card worth its magnetic strip reports all expenditures to the three major credit bureaus: Equifax, Experian and TransUnion. This is a good thing because not only does it give you the most complete report of your credit possible, it covers all your bases in case you need to get a loan. Unsecured cards may not report your expenditures to all three bureaus, so even if you keep your card square, if you need to get a loan from someone that pulls from a bureau your card didn’t report to, you’re up the creek.

These are just a couple of examples of warning signs of unsecured cards. Remember, credit cards are not bottomless wellsprings of money. Think of them as middlemen between you and your purchases. If you’re gonna work with a middleman, you want him to be well-dressed and trustworthy, not smelly and shifty-eyed.

You May Also Like

News

In the past year, Peloton, manufacturers of stationary exercise bicycles and treadmills, has been experiencing some severe financial difficulties. The company went through a...

News

While the ongoing supply chain problems affecting the global economy have had the expected effects, they’ve also had some decidedly unexpected effects. Specifically, many...

News

As gas prices continue to rise and consumer confidence drops, not to mention the ongoing war in Ukraine, the European economy is taking a...

News

As the environmental need for electric vehicles becomes more pressing, and the car-buying public becomes more eager for them, automotive manufacturers are getting ready...

News

This morning, Coinbase CEO Brian Armstrong sent a mass email out to his company informing everyone that, as stock and crypto prices slip and...

News

Last week, a former cybersecurity expert for Twitter, Peiter “Mudge” Zatko, released a whistleblower report on the social platform. In his report, Zatko cited...

News

Zelle is a peer-to-peer payment app and service that can be used by individuals to send and receive money, in a similar vein to...

News

Earlier this week, following the third-term victory of Chinese President Xi Jinping, market shares in Hong Kong experienced a sudden, violent sell-off. Xi’s controversial...