Archive for the 'Credit Cards' Category

Credit Card Debt Advice that Works in the Real World

Published
by
William Blake
on September 5, 2008
in Credit Cards
. 0 Comments
by William Blake

Regardless of what the news may tell you and leading economists may say credit in and of itself is not evil. It is the running up of credit you cannot afford to pay that gets you in trouble and this is also the kind of credit problems that the country experiences too. A deficit is when the country spends more than it has coming in and then has to extend its credit with banks in order to pay the bills. That is an extremely simplified explanation but the point is that you are not alone and everyone could use some good credit card debt advice.

Unfortunately, getting credit card debt advice that is beneficial in real world situations is not easy since many people who offer such advice have rather fanatical ideas. Anyone who suggests that people should not have or use credit cards at all simply is not being realistic. Consider the following tips that are designed to be useful in the real world.

Limit Yourself to Just One

Some of the absolute best advice available related to credit card debt is to join a credit union if you have not done so already. Then, request a credit card from them that has a moderately sized credit limit.

The credit union won’t raise your limit without you asking and for the most part a credit union will keep their interest rate at around 10% or less. If you can keep your life to just this one card then you will be fine. If you need an increase then ask for it but try and use cash when you can.

Emergency Back Up

Everyone is going to get credit to buy that great stereo system, or whatever, at least once in their lives so warning against that is pointless. But if you can just use your credit as a back up and not as the main way you purchase goods and services then you will be much better off.

Make sure you have the necessary funds to pay for it when you give into the temptation to use your credit card to make a slightly irresponsible purchase. Remember, though, that you do not have a credit card to use that way. It’s only for back up.

About the Author:
How would you like to find some extra cash to help pay off your credit card bills starting today? Visit the Debt Reduction Academy website, where you can claim your free 5 day mini course “Operation Money-Find: How To Find Money To Start Paying Off Your Debt This Month”. Grab your copy now at http://www.debtreductionacademy.com/minicourse.php

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Shopping for The Best Credit Card Deals

Published
by
Kris Calusa
on September 1, 2008
in Credit Cards
. 0 Comments
by Kris Calusa

You pay your bill off completely every month. You pay the minimum due every month, and you let a manageable amount revolve on your credit card. You pay the minimum due every month and your credit cards hover near their maximums. These are all payment profiles, one of which probably fits most credit card users, and there are a number of different credit cards that are tailored to offer the best value for any one of these scenarios. Match the right card with your spending and payment habits and you maximize your savings. Fail to do so and you might spend hundreds or even thousands of dollars needlessly.

Credit cards are big business today. Credit card vendors offer a huge array of incentives to lure your business. Four of the most common of these are cash back rewards, award point good for travel services and merchandise, 0% balance transfers and low interest on outstanding balances. Some even offer you the ability to custom design the picture on the card! Hundreds of thousands of consumers are spammed weekly by credit card offers either in email or regular mail, and if you’ve chosen a credit card product from that selection you have almost certainly not chosen the best one available for your particular spending habits.

One thing that all credit card offers have in common is this: all offers must contain a Truth in Lending Disclosure - it is required by law. Whether you receive an offer of credit in email or regular mail, you should make a game out of reading the disclosure before discarding. Pay particular attention to the interest rate offered - they’re usually high, and aren’t even close to the best deal that you can get if you shop for credit cards. As a matter of fact, some of the interest rates are astronomically high!

The facts are that, given the four basic categories of rewards (low interest, cash back, award points, zero percent balance transfer), most credit card offers focus on one of these areas and either do not excel at the others or, again, are downright predatory. Here are a few guidelines for choosing the right credit card for your spending and payment habits:

1) If you pay off the complete balance of your credit card every month, you don’t need to pay too much attention to the interest rate of the credit card, but “Not too much” does not mean “No Attention“! Do pay attention “grace period” associated with purchases on your credit card - the period of time between when you make a purchase and when interest begins to accrue. A longer grace period is better. Choose a credit card that offers rewards, or if you have a balance on another credit card that is charging you interest, pick a card that won’t charge interest on balances transferred.

2) Most credit card holders maintain a manageable balance on their credit cards - that means a balance somewhere between 5% and 40% of the maximum balance allowed. If this is your usage pattern, you should of course seek a low interest rate credit card, but you may want to also take advantage of some of the other benefits offered such as cash back on purchases. This shows responsible use of your credit, and makes you an attractive customer to credit vendors; you have proven that you are a good credit risk - you pay your bills in a timely manner - and you maintain a positive balance. That makes you a good potential credit customer.

3) If your credit card balance is constantly at or near the maximum that you are allowed, then the interest rate that you pay is everything. Do not rely upon credit card marketing material found in email, regular mail or mall kiosks to provide you with the best deal - you need to actively shop for the best interest rate that you can find to control the amount of money that you pay in interest on your balance.

4) No matter what your payment pattern is be sure to pay your bills on time and always pay the minimum due at the very least. Credit card vendors have a nasty habit of ratcheting up the interest rate on your credit cards if you pay too little or too late - they sometimes do it without telling you, and your late payment on one card can affect the interest rates on all of your other cards. Be sure to read your credit card statement carefully every single month, and pay special attention to the interest rate that they’re charging you.

The more you are informed as a consumer, the better your chances are to save some real money; this is true in all business and particularly true with credit cards. The amount of money that you can save by shopping for the right credit solution depends upon your spending habits and your payment schedule, but it can amount to hundreds or thousands of dollars per year. Be credit wise: adopt a habit of reviewing the credit cards in your wallet or purse once or twice a year, and always be on the lookout, shopping for better offers. Chances are that if you’re using a credit card that you’ve had for over a year or two, you can save money - there are better deals out there.

About the Author:
The author has made a living helping individuals with their credit needs and low interest credit card options for over twenty years. Click Here to compare low interest, no interest, reward, prepaid and 0% balance transfer credit card products.

Before You Sign Read the Fine - Credit Card Conditions

Published
by
Gary Antosh
on August 26, 2008
in Credit Cards
. 0 Comments
by Eric Jilson

It is important to compare credit cards because it can get very expensive. Every card offer comes with a complete list of Terms and Conditions, and it’s important that these be read. Credit Card marketers try to lure consumers by waiving annual fees and interest charges, but the truth comes out in the terms and conditions.

Fraud protection, for instances, is a deal some credit card companies use to interest consumers. They promise 100% protection, but, when you read the Terms and Conditions of the contract, you learn that there are stipulations and 100% may not be 100% all the time. The same can be said for interest rates. While the offer may be 0% APR, you learn that there may be penalties for odd things.

Interest rates vary from one card to the next, though many may be only a percentage point or two difference since interest rates are the primary way credit card companies compete with one another. Also, there are Federal guidelines credit card companies must follow in their contracts.

It certainly doesn’t hurt to research the company offering the card. A relatively small number of companies are predatory and will take advantage of uneducated consumers. These companies often advertise conditions that seem too good to be true, such as low payments or a credit limit that doesn’t reflect the consumer’s poor credit history.

Letters arrive in consumers’ mailboxes every day offering credit cards, and some of the offers are bogus. From a beginner’s standpoint, it might be a good idea to just toss those in the trash and begin your own search for a decent credit card provider from among companies known to you. At least, applying for every 0 APR card offers that shows up in the mailbox is a mistake.

Millions worldwide fall into this trap, but it should be remembered that if it looks too good to be true, it usually is. Laws in the United States make it illegal for companies to make ridiculous offers or ignore borrowers’ credit histories.

Knowledge is key when applying for a credit card. Most importantly, you should be certain you need a credit card. You may not, and if you can get by without one, you should. Consumers who do need a card should know the law, should know the company offering the card and, finally, they should always read thoroughly the Terms and Conditions of the offer. Familiarizing yourself with these three things can save you a lot of grief in the long run, and you’ll feel more empowered when actually making a choice and know that it’s a good one.

About the Author:
Eric Jilson frequently contributes to http://www.everlife.com. Ready to roll back the confusion 0 apr on balance transfers.