The worry for many at the start of 2009 is job security and enough cash to pay the bills. Whilst it is the government and business’ responsibility to safeguard the infrastructure we all take part in, we must take responsibility for our own finances. But the much vaunted ‘Credit Crunch’/Global Recession/Financial crisis has turned the attitude of many towards the hysterical. However, unless the banks keep lending they will face the same fate as those who face redundancy. Loans and credit will still be available to those the banks consider to cautious or responsible borrowers.
If you can afford to meet the payments you make on your card, now is a good time to be using credit. Even if your credit score is currently patchy, consistently using a card responsibly in grim times will certainly help improve the credit score. And, if you can be strict enough never to spend more than you can clear in one go and always pay on time, then you don’t pay for the privilege.
Adverse Credit Cards?
Many people think if you have a poor credit rating, the only cards available would be adverse credit cards. They are known to charge interest rates of around 40% APR and unless you can be certain of clearing the balance every month they should be avoided as the interest will accrue at an alarming rate that can quickly become unsustainable.
Interest Free Credit Cards?
Despite difficult times many of the lenders are still offering interest free credit cards, they may be slightly more difficult to acquire and the terms are not as generous as the days of ultra-cheap credit, but the lenders will keep offering such cards as these days there will invariably be a transfer fee that ensures them a constant revenue stream. The credit might be being slightly crunched, but if you are a responsible borrower your use of credit is beneficial to the lenders and as such, encouraged.
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