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Although acquiring a credit card is much easier than adhering to a budget, planning your credit card expenses is esential to help prevent dire consequences from credit card utilization. This may stem from the fact that a credit card is by no means a mobile automated teller machine. It is however a means to get you out of an emergency situation such as a car breakdown, or for travel convenience. The following budgeting tips will provide you with great insights on wise credit card usage.

Spend within your capability

With or without a credit card, one should always spend only what they can afford. In fact, you should spend like you dont have a credit card because at the end of the day, you will have to pay back what you charged. It is true that you should never use your credit card to settle your grocery bills or to quelch your shopping needs. With all the discounts and bargains clamoring for your attention, it can be annoying to know that you will be paying more for it because of credit card interest rates.

Have a good concept of the Credit Limit

Rather than viewing the credit limit as the amount of money you can use every month, think of it as a loan that you must repay within 30 days. Then, tabulate the amount of interest that you have to pay if you decide to settle your repayment over a period of six months. This way, the 7500 will look less tempting and when calls with offers of higher credit limit plans come in, you will have the good sense to put the phone down.

Do not let your credit accumulate

You need to be responsible to own a credit card but as luck would have it, there are emergencies that are unavoidable. In this case, you should settle your credit card bills as soon as possible. You have to be self-disciplined on this because credit accumulates and credit cards work on compound interests. The longer you delay your repayment, the more you have to pay.

How To Avoid High Interest Charge on Your Credit Card

There is a credit term call grace period its a period within which you may pay your bill without being charged interest. Its usually a period of 25-30days before interest kicks in. Recently, most issuing companies are eliminating this grace period and instead offering a low fixed interest rate. The question now is which one is better between grace period and low fixed interest rate?

It will be a bit difficult to have one answer that will favour everybody. Some prefer paying their bills in full within the normal grace period. To this group of people the grace period will be better. It will be advisable for them to shop for grace period cards and avoid no-grace-period cards.

Some banks do charge interest from the day they process your charge slip when you use your card to get cash. If you normally pay your bill in full you still need to shop for card that offers very low interest rate plus grace period, if you are to avoid interest charges on your account. However, for those that usually carry a balance each month, the low interest rate will be good for them. If you are in this group you can even shop for institutions that periodically offer cards with no fee for the first year.

Most issuing company often offers premium credit cards such as goldcards and Premier VISA. They are fancy cards that come with travel insurance benefit and extra protection when your card is lost or stolen. These institutions will rarely use the highly annual service fees which you will be subjected to as their marketing point. So its advisable to beware of these cards. There is no reason for paying such high service fees. As a matter of fact it did not really worth it if you can have a lower interest or grace period card.

Seeing people buying food or shopping clothes using credit cards has been commonplace these days. The phrase “Charge it!” has become a favorite expression of card users, and has been commonly heard in shops, dining places, and elsewhere.

After all, who does not want to use these credit cards? Easy to use, these sleekly-designed cards can be used to buy practically everything in commercial establishments regardless of how much (or less) money does one carry money in his wallet. Short of cash and hungry? No grocery supplies? Going to a party but no money to buy that dress you’ve been drooling for? No problem! Your good ol’ credit can care of that for you. No worries.

Credit Cards: Not Free Money

But wait. A credit card spree may be fun, but that doesn’t free you from responsibilities in paying the expenses you incurred from using your credit card. Credit cards, after all, are interest loans in disguise. Typical credit cards ask for a number of charges, including:

” A finance charge, which is an interest charge for the unpaid portion of your monthly bill;

” An annual membership fee;

” Or if you’re paying after the deadline, there is also a late payment fee which could have a higher interest rate.

In fact, many credit-card holders face credit-related problems. Poor purchasing decisions, lack of information on credit card fees, and disregard for upcoming credit payments are among the reasons why many credit-card users are often hard-pressed in paying their debts. Some are not even able to pay for the actual purchases they made, just barely managing to pay credit card company charges.

Before you get drowned in a sea of debt, here are some tips to help you manage your credit-related expenses:

” Be credit smart. Applying for a credit card application means you are ready to assume the responsibility for paying your credit. You and only you – not your parents, spouse, or whoever – is responsible for that.

” Use your credit cards wisely and sparingly. Remember: Paying goods and services using credit cards are more expensive than using cash or checks. Credit payments include interest and other fees. Use credit cards as sparingly as possible. If you really need to use credit cards, carry only the cards that you will actually use.

” Use credit only if you are sure you can repay it. Paying your debt on a credit card using another does not count.

” Avoid impulse shopping on your credit card.

” Use credit for money emergency only.

” Seek credit counseling as soon you see financial problems on the horizon.

It is a sad fact of life that credit card companies are very willing and fast to slap a penalty charge on your account for every mistake, delay and slip up you cause, immediately and without a second thought. These penalty charges can amount to millions of pounds taken from consumers each month. They are a necessary part of all credit card operations and are fair in the sense that it means that customers who do everything correctly and on time are not penalised for the extra work and expense that other customers cause, but what you will want to do is make sure you are not one of the unlucky customers that is paying for these extra expenses.

The best way to avoid these penalties is to look at the entire situation from the point of view of the credit card company. Really, all they want from you is to keep your card safe, to stay within your credit limit, and to make at least your minimum payment, on time every month. If you manage to do these simple tasks you will avoid ever incurring a penalty on your account.

The problem is that it is very easy to slip up on these things. Its not easy at all to keep track of your outstanding balance, especially as we use credit cards for more and more things and companies begin placing holds and other such transactions on customers accounts without them necessarily knowing or understanding about them. Then there is the fact that it is very easy to forget or become late on a payment. Every one has busy periods in their life and sometimes we simply have other more important things on our minds than paying our credit card bill on time. Some people are less organised than others and for them it can be very difficult making sure all their credit cards are paid out in full and on time.

If your card is lost or stolen without any fault on your part, and you call your credit card company as soon as you find out, you will only be liable for a maximum of 50 pounds. And if you manage to let the credit card company know before any thing has been spend on your stolen card you will not be liable for any thing. This is also the rule that applies for identity theft and fraud so you can feel safe using your credit card online. Taking a few simple steps can mean you are virtually never subjected to credit card penalties.

I have a friend whos a frequent traveler whos most of the time always out of the United States. While hes always traveling, his purchases done in other countries are done over his credit cards. He prefers using his frequent traveler credit card in buying his plane tickets as these that allow him to accumulate travel air miles. Whenever he buys plane tickets, can always redeem his accumulated travel miles to avail of discounts on his plane ticket or if he has accumulated a lot of air miles already, he can use them in buying his plane tickets alone. He does have other credit cards that were offered to him from US merchant stores. The only problem he has is as hes always out in other countries, while hes able to use these credit cards, he may not be able to always to use his accumulated points from those merchant sponsored credit cards because he seldom goes to those stores anymore. In availing of credit card points other than air miles, are there other ways of redeeming them assuming that an individual may not be around all the time to shop back in the locally based stores that co-sponsored those credit cards?

The answer is yes. While an individual may be out of the country on business or leisure, the advantage provided by the internet has allowed consumers all around the world with much flexibility and benefits. Accumulated rewards points from credit cards offered by major US based merchant stores can also be redeemed online whenever he may make purchases over the internet. A person making a book purchase online using his credit card sold to him also by the same online book retailer hes buying the book purchase right now for example may redeem his rewards points in the form of redeemable gift checks that he can later use to buy other books and have them sent over to his house in the US or send as a gift to friends or loved ones.

In order determine the number of points a person has accumulated from his purchases from his credit cards that he can later on redeem for new gift items, appliances or even equivalent travel air miles, these can also be tracked and checked from the credit card companies websites. Credit card companies have their own hotline numbers for inquiries on redeemable rewards also. Its important to know the equivalent number of points that will be needed to redeem the equivalent items so that the credit card user may maximize the benefits and rewards that his credit can offer him on a longer-term basis.

If you are new to the world of credit cards, then you need to know the basics before going ahead and choosing the right credit card. Although all the terms and companies offering cards can seem confusing at first, if you do your homework then learning the basics takes no time at all. Here are some hints and tips regarding the basics of using and finding a credit card:

Borrowing money

Credit cards are probably the most common way of borrowing money. Credit cards are available from so many different sources, both offline and online. There is a wide variety of different types available, and at first glance it can be very confusing. However, what you need to remember with all credit cards is that you are borrowing money, and that the credit is not free. Once you realise this then you will be in a better position to get a card that suits your needs.

Interest rates

Unless you intend to pay your credit card bill off in full each month, then you need to be aware of the interest rates of cards. The rate is calculated as APR, or Annual percentage rate. The typical rates right now are around 13-18%, depending on the company you choose. Lower interest rates are obviously better, but remember that there can be other charges as well such as late fees or transfer fees, etc. Also, if you are going to pay the money off very slowly, then you should look at other types of money lending as credit cards do have high interest rates.

Paying your bill

The options for paying your bill vary, and some cards have different requirements. A few cards require you pay the whole bill each month, but most only require that you pay a minimum payment. This is usually around 2% of the entire balance. If you are not paying back your card in full each month, then pick a card that has benefits for doing so. Some cards offer cashback of around 0.5% or more, meaning that you get money back each time you buy something.

Fees

Most credit cards have a range of fees that you will be charged. These include fees for late payment, over-limit fees, and annual usage fees. If you know you might be late with payments sometimes, then pick a card with low late fees. Also, try and avoid cards with annual fees, unless the rest of the package is very good. Some cards have introductory offers, like no interest or fees on transfers for six months. These cards are good if you need to transfer debt or you know you can pay back the balance during the introductory period.

Debt

Remember, if you are not careful you can get into credit card debt that can be hard to get out of. Only spend what you can really afford, and try to pay back as much of the balance as you can each month. Credit cards are great for emergencies or spreading the costs of expensive items, and if you know the basics then you will get a better deal on your card.

HOW TO DISPUTE A CHARGE ON YOUR CREDIT CARD

You need to write to the creditor at the address shown on your statement for “billing inquiries. You must Include your name, address, account number, and a description of any errors.
Send your letter of dispute as soon as possible. It must reach the creditor within 60 days after the first bill containing the errors was mailed to you.
The creditor has to acknowledge your complaint in writing within 30 days of receipt. At the latest, the dispute must be resolved within two billing cycles, but not more than 90 days.
Unauthorized Charges. If your credit card is used without your permission, you could be held responsible for up to 50 per card.
If you report the loss before the card is used, you can’t be held responsible for any unauthorized charges. I
To minimize your liability, it is imperative that you report the loss as soon as possible. Most issuers have 24-hour toll-free telephone numbers to accept emergency information. If you have managed to notified your credit card company by telephone It’s important that you follow-up with a letter which includes your account number, the date you noticed your card missing, and the date you reported the loss.
If you have a dispute about merchandise or services. You can dispute charges for unsatisfactory goods or services. To do so, you must:
Have made the purchase in your home state or within 100 miles of your current billing address. The charge must be for more than 50. These limitations don’t apply if the seller also is the card issuer or if a special business relationship exists between the seller and the credit card issuer.
First make a good faith effort to resolve the dispute with the seller. No special procedures are required to do so.
If these conditions don’t apply, you may want to consider filing an action in the Small Claims Court.

Five Credit Card Billing Problems and How to Fix Them

It goes without saying that your first and best defense against paying fraudulent or unfair charges on your credit card is knowing what your bill says! When you receive your credit card statement each month, sit down with it and check each item to make sure that you actually DID purchase it. If you do run into inaccuracies or problems, there are procedures to follow to report and deal with the charges. If you don’t follow the procedure and the card company decides to notify a credit reporting agency, it could affect far more than just your balance on that one credit card. What are the most common billing problems and how should you deal with them?1.Hey, I didn’t buy that! If you notice a charge on your credit card statement that you didn’t make, take steps to deal with it IMMEDIATELY. It could be a store error – but it could be the first sign that someone else is using your identity. Heading off problems before they start is vital. Call your credit card company and report the charge that’s in error – but don’t leave it at that. Follow up with a written letter stating that you dispute the charge, and requesting that they investigate the situation. The credit card company has 45-60 days to complete their investigation and notify you of the result. During that time, they can not make any attempts to collect that amount from you, nor report you to a credit reporting agency because of it.2.Wait – I canceled that subscription!If you cancel a subscription for which you pay via credit card – to a magazine, a club or internet service provider for instance – it may take a month or two for the cancellation and ‘chargeback’ to show up on your credit card statement. Again, notify the credit card company that that account has been canceled and request that the charge be removed from the bill.3.My bill just doesn’t add up right!They’re rare, but mathematical and reporting mistakes do happen. If you notice a discrepancy on your bill between their reports and your receipts, write a letter to the credit card company – being sure to use the address for reporting credit card disputes. Include copies of both the bill and your receipts for the disputed charges.4.I returned that dress!Like a canceled subscription, it sometimes takes a billing cycle or two for charge-backs on returned items to appear on your credit card bill. Write to the credit card company and enclose copies of your return receipt, asking that the charge be removed from your bill. 5.What do you mean, there’s a late fee??Your best defense against late fees is to make sure you send your payment in plenty of time to reach the credit card company by posting date. Keep in mind that credit card companies date payments by date received andor posted, not by date mailed. Because of the effect a late payment can have on your credit card billing and your credit history, though, it’s sometimes worth a try to get them to ‘take it back’. If you have evidence along the lines of a check cleared to your bank account before the payment was posted to your account – and it’s before the late payment date, you can write to the credit card company and ask for a review of the charges.

Banks and their marketing associates and divisions are vying with one another to capture a thick slice of the credit card pie. Offers by phone and mail of free credit cards, pre-approved credit cards, cards with special bonanzas, money back schemes, low introductory rates, and umpteen other perks pour in tempting you everyday.

A credit card is just a form of borrowing that does not come free. Credit terms, interest rates, fees and more can lay a stress on your bank balance. Credit cards are a temptation to spend now and pay later. What invariably happens is that people spend more than they can handle.

Informed consumers must always weigh carefully the pros and cons and compare different options before deciding on a credit card.

Before you decide find out

The advantages of a credit card are that it is a safe alternative to cash. Prevents loss as well as theft of cash. Using a card wisely can build a good credit history which helps when you need a loan or subsidy. It is useful in emergencies like accidents, urgent hospitalization, and unavoidable circumstances like natural calamities and so on. It grants a breather and gives you time to pay the bill. Some memberships offer travel or accident insurance to the card owners at no cost. They also offer privileges like discounts at restaurants, shopping malls, and holiday packages.

The other side is that you can get carried away and live beyond your means, ultimately falling into debt.

To be eligible you need:

To be at least 18 years old.

Have some income or the backing of credit worthy parents.

Have an operational bank account.

A telephone.

A good credit rating. Your monthly expenses must not equal or exceed your income. Ideal expenses must account for approximately 50% of your income.

To get a Visa or Master card your income must exceed US 12,000 a year. Or, you need to apply for a secured credit card where you pay upfront a certain amount of money as security deposit.

There are many kinds of credit cards to choose from. Unsecured standard and classic cards are those with a credit limit of US 2000 and generally charge higher interest rates and offer lower or less favorable terms than the platinum and gold cards. Unsecured platinum and gold cards are for people with high credit ratings, and the limits for these cards are between US 2000 to US 100,000.

Here are a few links that will give information and opportunities to apply for cards online:

Visa at http:www.usa.visa.com?country=us&ep=v_gg_new provides information, gives tips, and has listed a number of financial institutions that offer Visa cards and a wide range of services. One can apply for a card online.

MasterCard International at http:www.mastercard.comindex.html is comprehensive with information, advice, and options of choosing and applying for a card online. They have an online form which when filled will give information of which card would be ideal and a channel which provides instant comparison of various card options.

CreditCards.com at http:www.creditcards.com has articles, FAQs, a site map, and online application channels.

Tips:

Pick a card because it has the lowest APR.

Pick a card because all its terms and conditions have been carefully vetted by you. Read the fine print.

Never pick a card because it is free for a year or life.

Do not choose a card because it offers a low introductory rate.

Do not choose a card because it has a cash back policy or great rewards programs.

Choose wisely and live debt free.

Credit Card Refunds – When and How to Ask for Your Money Back

Im sure most people have dealt at least once with unsatisfactory service. Quality complaints, products not up to standards or not what you wouldve expected. And, in the good American fashion, what did you do? You disputed the charges with the credit card companybank, being almost sure that you wont be charged anything right? Well, it might not have been the best decision. And heres why:

The money back guarantee condition only applies if you are indeed eligible to get the money back. If you just had a change of heart and decided you dont want the product you just bought, chances are you wont see a penny if the company that you bought it from and from where you request the money back now decides to dispute the case.

In this case, itll be almost as if youre going to court with that company: your bank and the company will present their arguments before a chargeback committee which will decide on whose side the truth lies. And if they rule in favor of the company, not only you will not get the money back, but youll also pay a chargeback fee So the entire thing might end up costing you more than expected. So heres my advice:

Dont just go and dispute just about any charges you dont like anymore Some people do this thinking they can get the money back AND keep whatever product they have purchased. You might be in a lot more trouble then youd expect and its just not worth it. First off, when you buy something, especially over the internet, read carefully the Terms & Conditions of the website. I know, it sounds boring and its a lot of legal stuff you dont really want to know, but it could prove important should you not be satisfied with your purchase.

If, for whatever reason, you dont want the productservice anymore, contact the company you got it from. Get in touch via email, phone, regular mail or other means, but talk with them and hear what they have to say. You might get a better deal than just your money back. If the company has a no refund policy written in their T&C, this doesnt mean its written in stone. Exceptions can be made if there is no other way.

Of course, if all else fails, go talk with your bank. They can advise you regarding the next steps you can take to solve the problem. But if you follow the instructions above, you shouldnt get there. Or if you do, you have great chances of getting your money back.