Best Mortgage

There are 4 main types of credit: service credit, loans, installment credit and credit cards.
Service credit is monthly payments for such utilities as telephone, gas, electricity, and water. You often have to pay a deposit, and you may pay a late charge if your payment is not on time.
Loans let you borrow cash. Loans can be for small or large amounts, for a few days or several years. Money can be repaid in one lump sum or in several regular payments until the amount you borrowed and the finance charges are fully paid. Loans can be secured or unsecured.
Installment credit may be described as buying on time, financing through the store or the easy payment plan. The borrower takes the goods home in exchange for a promise to pay later. Cars and furniture are often bought this way. You usually sign a contract, make a down payment, and agree to pay the balance with a specified number of equal payments called installments. The finance charges are included in the payments. The item you purchase may be used as security for the loan.
Credit cards are issued by retail stores, banks or businesses. A credit card can be the equivalent of an interest-free loan if you pay for the use of it in full at the end of each month.
Credit cards are of 4 types and are available with a wide variety of interest rates and fees.
Travel and entertainment cards (T&E) like American Express, Carte Blanche and Diners Club charge an annual fee and must be fully paid at the end of each month and therefore don’t charge interest.
Department store cards are offered by most retailers. They usually don’t charge an annual fee but often charge high interest fees.
Bank cards, such as Visa, Discover and MasterCard, may charge a yearly fee, and interest rates vary from state to state as well as across different financial institutions. Most department store and bank credit cards allow you to charge purchases up to a certain limit and pay a minimum amount each month. The account stays open indefinitely as long as you make the minimum monthly payment on time.
Secured credit cards (SCC) are major bank credit cards with a credit limit secured by a savings account. They work the same as a regular bank card, but instead of using your promise to repay as security, you use your own money in the form of a deposit in a savings account. Secured credit cards are useful if you have had a history of bankruptcy, a poor payment history or if you wish to establish a credit history. 
A debit card is not a credit card. It is used like a credit card, but is not a credit card. The card is usually attached to your checking account, and allows you to access your account at an ATM or at a retail store when you make a purchase. The amount of purchase is immediately deducted from your checking account, and you are not able to pay for an item over a period of time.
If you are not a Rockefeller and are willing to become one you should try to spend your money wise to avoid falling into the debt trap. The experts suggest you to write down where your money goes that can help you save at about 20% of your finances.
Here are some tips for saving $50 a month (certainly, you can throw something out of this list or add something else):

• Watch movies and eat popcorn at home instead of going out
• Use coupons for groceries and buy store brands
• Make pizza at home instead of ordering out
• Buy in bulk and freeze dinner entrees
• Shop at consignment, thrift and discount stores

This entry was posted on Tuesday, July 25th, 2006 at 7:55 am and is filed under Main. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.