Credit cards are not to be blamed entirely for the debt in a borrower’s life.
Dallas, TX (PRWEB) June 26, 2014
Debt Consolidation USA shares in an article published last June 23, 2014 on the merits if getting a new credit card. The article titled “Signs That You Need A New Credit Card” points out the instances when a new credit card can be of advantage to a borrower instead of putting the consumer down in more debt.
The article explains that credit cards are not to be blamed entirely for the debt in a borrower’s life. Just as money is not the root of all evil but love for money is, almost the same concept can be applied in credit cards. It is not the tool itself but the use and utilization is what determines on how a borrower’s finances is affected by having credit cards. A borrower with one credit card is just as prone as a borrower with multiple cards in getting in debt.
Getting better rewards is one consideration a borrower gets a new card. The article explains that the points system for credit cards vary from one lender to another. It could be points that accumulate into gas credit. It could also be that frequent usage can be added on to the miles. Some credit cards offer rebates on purchases and even offers store discounts. The rewards point should be aligned on how the borrower can benefit the most.
The article shares also how getting a new card can lower down the existing utilization of the card. Ideally, a borrower should only be using about 30% of the credit limit. Anymore that this and the credit score could reflect owning too much debt. Opening a new credit card can lower down a borrower's credit limit utilization. Caution has to be a priority in preventing usage of the new card.
There are credit cards that offer lower interest rates and borrowers can open a new credit card for the purpose of transferring to a lower interest rate. There are even cards that offer zero percent interest rate for a limited time when a borrower transfers credit card balances over to them. This is a great way to pay down the credit card debt and enjoy lower interest rate after the promo.
The article explains that having a lower interest rate lowers down the payment amount and allows the borrower to save on interest payments. To read the rest of the article, click on this link: http://www.debtconsolidationusa.com.