Posts Tagged ‘Consumers’

Choosing a new credit card is not just a personal choice. It’s a lifestyle choice. There are hundreds of credit cards to choose from and savvy shoppers will want to choose credit cards that suit the way they spend and the things they want to do.

Why Do You Need A Credit Card?

First of all, consumers need to consider why they need a credit card. For example, some people may be using the credit card to improve their personal cash flow. They could do this by banking your salary, putting all purchases on the credit card and paying it off before the interest is due. Meanwhile, their salary sits in a current or savings account earning interest.

Other people may want to use their credit card for occasional luxury purchases, such as going on holiday or having a day out with some friends. Still others may use a credit card to pay for purchases where they want the extra consumer protection many credit cards offer. Paying by credit card gives consumers some comeback if there is a fault with the item purchased. This can be useful if manufacturers don’t want to give a refund.

Some people may want to use their credit card to have ready access to cash, for example when going on holiday. People who are planning to use their credit cards for cash advances will need to choose a card that has a low rate for this type of transaction.

How Will You Repay The Credit Card?

The next question people need to ask is how they want to make the payments. If they want to clear thier credit card each month, they will need a different type of credit card to someone who is planning to clear only part of the balance.

It is also useful to check on introductory rates, balance transfer rates and any special offers that apply when taking out a new credit card. Some credit cards offer lifetime balance transfer rates that are much lower than the standard variable rate. Others offer reductions in the variable rate for periods of up to 12 months. Still others offer an incentive for taking out the card, such as cash back or a sports bag.

What Incentives Are There?

Another area to look at is incentives for using the credit card. For example, some credit cards offer cash back on credit card purchases which people can apply to pay off the card. Others offer discounts when the credit card is used with certain manufacturers. Still others offer the option of making charitable contributions on customers’ behalf.

A key area to consider is the annual percentage rate (APR). This is the rate that customers pay on purchases once the incentive period has run out. These rates vary considerably, so it is worth shopping around.

Credit Card Payment Rates And Fees

The minimum payment is another area of concern. Minimum payments on outstanding balances tend to start around 3% but some may be lower and others may be much higher. Finally, the interest free period is of big concern you’ll want to go for the longest period you can get to keep those payments down.

Finally, consumers need to consider any other fees that might apply to the credit card account. Some credit cards charge one-off setup fees; others charge annual fees; still others charge no fees for owning the card. It’s best for consumers to read the small print to see what fees and rates apply to the cards they have chosen.

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.

It is simply getting ridiculous the charges credit card companies are imposing on consumers who are late making payments. Yes, creditors have a legal right to do what they are doing, however ethically speaking that is certainly open to debate! Let’s look at some ways you can avoid costly credit card late fees:

1. Pay your bills on time. This one is obvious. When you get your bill, open it up and pay it right away. Waiting means forgetting or hoping that your payment arrives on time.

2. Pay online. Paying via your computer is faster than mail services, but there is still some lag time from when you authorize a payment and when the payment is finally credited to your credit card account.

3. Automatic payment. If your credit card provider permits it, have them automatically deduct a set amount from your account every month. That way they’ll get their funds well in advance of their due date.

4. Fight it. Just because the credit card company said that your payment was late doesn’t mean that it was late. Call them up and ask them to reverse the charge — now as high as 39 — and to adjust their records accordingly.

Allowing credit card companies to run roughshod over you is one sure way to worsen your credit card woes. Know your rights and take action as required.

Credit Card Balance Transfer How To Use It To Your Advantage

A credit card balance transfer is not right for everyone. Just like most of the options in the world of finance there are some definite benefits to getting your own balance transfer credit card as well as some pretty significant downsides. The key to success with any kind of balance transfer or any other financial product or service is to first learn all that you can about that particular subject before you can understand how to use it to your advantage. Never jump into getting a balance transfer credit card without all the facts, this is where so many people end up in hot water, they leap before they look and when it comes to money that is always a bad combination.

The benefits of a balance transfer are great in many cases. For example who doesnt want to be able to switch the balance from one credit card with high interest to one with no interest at all? That is exactly what you can do when you have a new credit card that is still enjoying its interest free period. Of course if you do not have one of these you may simply want to perform the credit card balance transfer in order to enjoy a lower interest rate. This can save you thousands of pounds a year if you are looking at a significant amount of credit card debt.

There is a growing movement of consumers who are getting credit card after credit card so that they can constantly perform balance transfers. This is easy to do as all you need is to make sure that you are approved for a new credit card when the interest free period of your old one runs out, ensuring that you can simply perform a credit card balance transfer to the new card and once again enjoy paying no interest. Sounds easy, right?

This kind of balance transfer is straightforward and anyone can do it if they have a halfway decent credit rating. And if you can control your spending habits it might even be a good idea as the balance transfer credit cards will allow you a nice amount of breathing room and the time you need to start paying off the principle rather than just the interest on your loan. If on the other hand, you are like most people and you find it hard to not spend money when you can, then a credit card balance transfer is probably not the best solution for you.

There is nothing more difficult than curbing spending. If you have the available space on your credit card, are you going to be able to say no to those wonderful jeans you saw in the store window? What about that fantastic stereo you just saw the other day? Can you resist them? You must be able to if you want to use this technique of avoiding interest with credit card balance transfers. If you are in doubt then find another way!

More and more balance transfer credit cards are hitting the market today because the industry is recognizing what a powerful tool balance transfers can be for consumers. Everyone wants to save some money and the sad fact is that it can be very difficult, especially since having credit cards makes it so easy to spend more than we actually have. A credit card, especially a balance transfer credit card, can be a powerful weapon in your financial management toolbox; you just need to know your limits and your weaknesses. That is the only way to avoid trouble with balance transfers.

A credit card balance transfer could be your saving grace; then again perhaps it is the wrong solution for you. The only way that you can be sure is to learn all you can about the credit card balance transfer process and all of its pros and cons.