Posts Tagged ‘Credit Cards’

Getting your own credit card is not as easy as you may think. Applying for a credit card account needs a lot of thinking.

Before marching down to your credit card agent, ask yourself some questions like do you want to pay for the credit every month or carry a balance instead? The type of credit line limit is also to be taken into consideration. Credit cards offer a lot of benefit packages, think of the package that would suit your needs.

If you want to carry on a balance, look for the credit card that offers the best interest rate or the annual fee offer. However, if you intend to pay for the credit every month, then look on the one that offers the lowest interest rate.

Credit limit determines how far you can go with your card. Think of the lowest limit that would fit your needs, not your lifestyle. Remember its supposed to be for necessity and not for luxury. Adding 30% to the limit you agreed on. This will maximize the value of the card. Meaning, you can use the card on a normal basis and still have enough value if an emergency arises.

Credit card companies offer tremendous bonuses on their cards. If you wanted to sign up for these packages, think, think, and think! Will they really be of help to you or are they just there to make your credit life miserable?

Of course the table is laden with different courses. You are only to get one so dont rush into one that looks good. You always have the liberty of comparing one credit card to another.

Always choose the credit card that offers the lowest annual percentage rate (APR). APRs could either be a fixed or a variable rate. Fixed rates do not change as the name implies but is higher. Variable rates changes depending on the economic trends. This is to be taken into consideration if youre deciding on carrying a balance.

Some credit cards offer a grace period of 25 days before they charge the interest on the purchase. But some may not have. Look for those that have one and the longer the grace period, the better the deal.

You also have to check on other fees attached to the credit card. These are the penalty rates as well as other charges like over the limit charges and late payment charges.

When choosing a card, always remember to get the one that would best fit your needs and at the same time the best deal you could get out of it.

Competition among credit card companies is a great advantage for consumers. Credit card rewards are made bigger and better by credit card issuers to make sure that consumers would choose them over their competitors. How can you use your credit card points effectively and get the most out of your rewards credit cards?

The first thing to consider would be what type of rewards credit card do you currently have? If youre still on the process of selecting a rewards credit card, which one should you choose?

Because rewards credit cards come in a variety of classes, it is best to choose the one that best suits your lifestyle. For instance, there are travel rewards credit cards, gas rewards credit cards, or cash rewards credit cards. Youll be able to get the most benefit if the type of rewards credit card you have is that fits your needs.

Travel Rewards Credit Card

Travel Rewards Credit Cards are especially designed for people who frequently travel. Whenever you use your credit card for purchasing, you automatically receive points that are equivalent to travel mileage points. The minimum mileage points you need to collect in order to qualify for a free travel will depend on the credit card issuer. Usually, credit card companies have partnership with an airline that sponsors free travel tickets. Thus, you may consider getting the Travel Rewards Credit Cards that is affiliated with the airline you must often fly with.

Gas Rewards Credit Card

If youre frequently on road trips, you can get the best deals out of gas rewards credit cards. Gas Rewards Points are also collected each time you make a purchase using your credit card. These points allow you to get full tanks of gas at no charge at affiliate gas stations. Imagine how much money youll save in a month if you often get full gas tanks for free.

Cash Rewards Credit Card

Most people prefer to get cash rewards credit cards. Usually, youll be given a point for every pound you spend on your credit card. However, some credit card issuers give 2 points or more for every pound spent on the card. You can use these points to make new purchases or these points can be added on your credit. Some credit card companies have their own exclusive online store where customers can shop to redeem their points.

Choose Wisely

Make sure that you will be able to use the points youll be collecting. For example, even if you earn a free travel rewards, what if it includes restrictions, or what if you can only claim it for a limited time period? Be sure to check out all the terms and conditions that apply when claiming the reward. If you dont, the rewards you earned may simply be thrown out the window. Also, make sure that the credit card allows unlimited time for collecting points. If not, then youll always be trying to earn enough points in time which is a very risky way of using your credit card.

Lastly, see to it that youll be paying off your balances before the due date ends. Otherwise, you may end up paying for very high interest rates which defeats your purpose of purchasing to earn rewards. Also, some credit card issuers disqualify a card holder who has an outstanding balance in their account.

For people who are organized and careful, using a credit card can be a good way of managing debt and handling spending. And there are other advantages that can make credit card use even more appealing.

Many credit cards can now be used to contribute to people’s favourite charities. This means they can spend as usual, secure in the knowledge that they are also contributing to a good cause.

How Charity Credit Cards Work

The way charity credit cards work is simple. Every time people spend on the card, the card issuer gives a proportion of their spending to the chosen charity. The charitable donation can range from 0.25% of the amount spent on purchases to 1% or more, depending on the card chosen and the particular deal. The amount donated may increase if spending goes over a certain threshold.

Many card companies also offer a one-off donation when the card is first issued. Again, this sum can vary considerably depending on the card chosen. There are also rewards for using the card within a set period and for continuing to use the card over months and years.

Some credit cards contribute to specific charities and are branded with the name of that charity. There are also credit cards that allow card holders to nominate the charity their donations will go to.

Other Incentives

Having a charity credit card does not mean giving up on some of the other incentives new credit card holders normally get. Many charity cards offer 0% interest free periods on balance transfers for up to nine months. Some also offer 0% on spending for a certain period. Others offer a fixed low interest rate. People can shop around for the best incentives and still make a charitable contribution. Standard interest rates for charity credit cards have the same range as normal cards, ranging from below 9% to over 17%.

What Charities Can I Support?

There are many charity cards available, supporting a wide range of charitable causes. These include the RSPCA, NSPCC, and cards supporting animals, diabetes, cancer and a wide range of medical conditions. Charities always need more cash to support the work that they do. Using a charity credit card means that people can help their chosen charities while doing what they would have done anyway.

How Else Can I Help My Charity?

Another strategy that credit card holders can use is to choose a credit card that offers a cash back facility. This means that holders get a percentage of their spending as cash at the end of a given period. This is usually once a year, often on the anniversary of taking out the card. Cash back percentages can be quite high, depending on the level of spending. Organized borrowers can spend on their cards and donate the cash back reward to charity as well. This is another good option for lending support to a favourite charity.

Credit card fraud is a serious problem in the United States, causing an estimated one billion pounds a year in losses to consumers. Consumers pay for this fraud when they have to pay higher finance charges, annual fees and increased costs for law enforcement.

Guard bills and credit cards

Consumers should keep in mind the following to protect themselves against credit card fraud. First, protect your bills and credit cards from scam artists.

Unscrupulous persons raid mailboxes and steal not only new and renewal credit card offers, but also bills, in order to obtain credit card numbers of consumers. You should be aware of when your bills and replacement credit cards are due to arrive. If your bills are late, contact your credit card company. You should sign all credit cards when they arrive by signing the back with your usual signature.

Keep a separate record of your card and account numbers

It is a good idea to keep a record of all your credit card numbers in a secure place separate from your wallet. Your credit card records should include the expiration date of each card and the phone number and address of the company that issued the card. Check your cards periodically to ensure that none of them are missing or have been stolen. Always be careful to get your credit card back promptly from sales clerks when making a purchase.

Guard your credit card numbers

When making credit card purchases over the phone guard your credit card numbers. Do not give out your credit card number out over the phone unless you are dealing with a company you know well and have done business with before, and unless you have initiated the call to the company in order to make the purchase. Never give your credit card number to anyone who calls you on the telephone. You should memorize any PIN number related to a credit card, and if you write it down, do not keep it with your credit card.

Limit identification presented to cash a check

Sometimes when you are making a purchase in a store, a business may require that you show them that you have a valid credit card before accepting your check. A merchant will often note the type of card, such as Visa or MasterCard, that you have produced and the name of the issuing bank. Do not give out your credit card number to anyone to guarantee a check.

Keep receipts and report stolen credit cards

There are a number of things you can do to protect your credit card privacy when making purchases. Destroy all carbons and voided receipts immediately. Keep receipts of all purchases you make and check your credit card statements against them. If you are not using a particular credit card, destroy it immediately. And, of course, if any of your cards are lost or stolen, report the theft immediately to the issuing company.

When you are traveling, carry the names of the issuers of your credit cards, your account numbers, and the toll-free numbers of credit card issuers in a secure place, separate from your wallet. If you report any cards as lost or stolen, make a note of the date, time and the name of the person to whom you spoke when you reported the incident.
Limit your liability for cards reported lost or stolen

Most companies have toll-free numbers and twenty-four hour service to deal with emergencies such as the loss of your credit or charge cards. You should report lost or stolen cards immediately because once you do, you have no further responsibility for unauthorized charges. The maximum liability in any event under Federal law is 50 per card. If you suspect that your card has been used fraudulently, the credit card issuer may ask you to sign a statement under oath that you did not make the purchases charged to your card.

How to Make the Most of Your Credit Card Rewards

Many great credit card companies are now offering their loyal cardholders credit card rewards. This provides the cardholder an opportunity to gain prizes just because they use their card. It is a great incentive for those that may not use their card much. The more credit card rewards they will receive, the more likely they are to use their card more frequently. Credit card companies realize that they profit more when cardholders use their cards more, and so the process is profitable to all involved.

Programs

Each card that offers credit card rewards will have slightly different programs than the rest. Some will offer a cash back reward, which is essentially giving the cardholder a certain percentage of their spending amount back. This is usually done annually or may be done monthly. These cards are great for those who use their cards frequently but dont have time to deal with points and other credit card rewards other cards may offer. Some credit cards rewards will be offered in the form of sky miles or other flying incentives.
These credit card rewards are perfect for the cardholder who travels frequently. If the cardholder is saving up their points for a free flight, they will be much more likely to use their card rather than cash. Other credit card rewards include other miscellaneous prizes. Some cards will allow their cardholders to choose from a selection of prizes.

Making The Most Of Rewards

The best way to make the most of your credit card rewards is by simply taking advantage of them. Credit card companies are amazed at the amount of cardholders who never redeem their rewards. They use their cards frequently and accumulate prizes, however they never take the time to get the prizes. The thing about credit card rewards is that unless you have a cash back program, you have to contact the company to get your prizes. Many cardholders forget about the programs or simply dont have time to deal with them. If you do have your eyes on a prize, then you can make the most of the credit card rewards programs by using your card frequently. Use your card instead of cash and simply pay off the balance before any interest collects. This way you can get closer to your prize without being out any extra cash.

Credit card rewards are a wonderful way to get excited about using your credit card. Those who usually carry cards filled to their maximum and who only pay the minimum each month may not be as excited about the credit card rewards. Unless you are able to use the card, you will not benefit. So, if your card has reached its maximum balance, work on paying it down to start benefiting from the credit cards rewards programs.

How To Make Sure You Dont Fall For A Credit Card Scam

Credit card fraudsters are having to up their game and are becoming ever more ingenious with the scams they try to pull off. As a UK credit cardholder you need to staying on your toes and ahead of the game. You need to ensure you keep up to date with all the different types of credit card scams that fraudsters might try on you. In this regard we are fairly lucky in the UK in that most UK credit card frauds have been tried previously elsewhere, notably the Unites States.

The following are some general tips to ensure that you do not fall foul of any fraudster:

Phishing Phonecalls

Never give your credit card number to anyone who phones you asking for these details unless you are certain that the call is a genuine call. Currently a number of fraudster are trying to get UK credit cardholders to give them vital information about their credit cards by cold calling and asking for these details on the pre-fix that a fraud has been carried out on the card. If you are in any doubt about the genuineness of a call, tell the caller you will phone them back and then independently check the number you need to call.

You Need My Personal Details?

Never respond to an email asking you for personal financial information. Always remember that banks and UK credit card providers will never solicit this information from you in an e-mail as theyre fully aware of the dangers of phishing scam e-mails.

Phishing Emails

Never click on a link in an e-mail if you are not sure of the genuineness of the e-mail sender. More and more fraudsters are obtaining vital personal information about credit cardholders by persuading them to click on e-mail links and complete bogus online forms.

Dispose Your Statemenst Carefully

Never throw your card statement away in the rubbish bin. It may be hard to believe, but it is known that credit card fraudsters are not adverse to checking through peoples rubbish to see if they have thrown away vital financial information that can be used to defraud them. If you really want to dispose of old credit card statements, then make sure you put these through a shredder at the office.

Take Command of the Situation

Never leave your credit card unattended. Today all credit card transactions can be completed via the Chip and PIN. There is no reason whatsoever why you should ever have to let your credit card out of your sight. If the salesman tells you then need to check something, tell them they have to do this in front of you.

Combating credit card fraud is the responsibility of every credit card user in the UK. If we can help to reduce the cost to UK credit card providers for losses arising from fraud the savings should trickle down to us as credit card users. More importantly, however, is if the UK credit card user can show that you did not act in a way that would have reduced the chances of your having been defrauded, then they may be able to hold you accountable for some of the loss incurred as a result of that behavior. So always remain vigilant and aware of any scam that UK credit card fraudsters may try on you.

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.

There are literally thousands of credit cards out there to choose from. You receive offers in the mail, in your email, over the phone, and on the websites you surf to on the Internet. We are inundated with credit offers, but are all credit card offers worth taking? The answer is a definite no. There are many things about accepting the offer of a credit card you need to know.

How do I know which credit card offers to accept and which ones I should stay away from? Is one of the most common questions we get at http:www.youngparentsmagazine.com , says Jennifer Tarzian. People want to know how to choose a credit card wisely.

If there is one thing consumer advocates and the banking industry do agree on, it is that the abundance of convenient credit gets a lot of people in trouble because they are financially uninformed. Financial education is not subsidized by the credit card industry, but is included in a the most recent version of the Bankruptcy Reform Act.

That bill, which has been stalled for years, would make it much harder for consumers to shed their unsecured credit card debt when they go into bankruptcy. It would also require both credit counseling prior to filing for bankruptcy, and post-bankruptcy instructional courses on personal financial management as a condition to discharge debt.

So the only financial education available comes way too late, since youre already in trouble when they offer it. All this means we have to be even more careful when choosing which credit cards to sign up for.

Credit card issuers are often accused of tempting consumers into carrying more debt than their income justifies. Then, when the customer is drowning in debt — stumbling to make even the minimum payment — they will pile on late fees, jack up interest rates and begin what often becomes a crescendo of collection calls.

How do I avoid that? Choosing which credit cards you accept is just as important as how you use the credit cards you do accept. The rest of this article will focus on choosing credit cards wisely. To find out more about how to keep your credit score high and use credit cards wisely, go to http:creditcards.youngparentsmagazine.com , where Jennifer Tarzian can help you.

Do You Know What You Can Afford?

Credit card mailings can be tempting, offering teaser rates, rebates, and rewards. Its up to you to figure out whether you are financially stable enough to accept them. According to Tamara Draut, Director of the Economic Opportunity Program at the nonpartisan public policy organization Demos. “When consumers are extended credit, they think it’s because the banks see them as being capable of borrowing, while it very well may be that they are not financially prepared to take on additional debt.”

“People say, if I can’t afford it, why was I offered credit,” says Jim Tehan, spokesman for Myvesta, a nonprofit consumer education organization. Tehan says that credit card issuers target consumers based on data-mining technology that can only give one part of the picture. “They don’t know what consumers can afford — only a consumer can say what they can truly afford.”

But banking industry veteran Walter Wriston, former CEO of CitigroupCitibank, argues that credit card issuers shouldn’t be the ones deciding who can afford what. “Should we say to somebody, say, you’re 21 years old: ‘You can carry a rifle and fight our war. You can vote in a presidential election. But, unfortunately, you’re not smart enough to know how much money to borrow?’”

That means, its up to you. You decide whether or not you can afford to have more credit or not. Look at the credit cards and loans you now have. What is your total credit limit including all of your credit cards, loans, and accounts? What is your total debt owed to those credit cards, loans, and accounts? These are all things you should think over before you fill out that credit card application.

Comparing Credit Card Offers;

Many people still carry credit cards with annual percentage rates (APRs) of 13% or higher. After all, there’s a whole industry of card issuers out there devoted to using hidden fees and interest rate gymnastics to gouge you as best they can. Consider this: According to Gerri Detweiler, author of The Ultimate Credit Handbook, some credit card companies are actually trying to get rid of card holders who pay off their balances each month. “The card issuer might try to move you to a card with an annual fee or a debit card,” she says.

The key to getting a better credit card deal is figuring out how much a given card really costs you. You’ve probably gotten a stack of card offers in the mail over the past week, each sounding cheaper than the next. Just plug in a few numbers, and our analyzer will calculate the true cost or net interest rate of each one so you can compare them side by side.

And if you’re looking for a specific type of card one that, say, gives you airline mileage or no annual fee check out our credit card rate center and pick out those that best fit your needs. Go to http:www.bankrate.comsmmratecc_home.asp?web=smm and use the calculator there. Compare the offers you get in the mail to all credit cards.

I hope you find this tool and the information we provided here useful. Our goal at http:creditcards.youngparentsmagazine.com is to provide young parents and others how to choose credit cards wisely, how to reduce credit card debt, how to improve their credit score, and how to stay financially healthy in general.

If you are fed up with one of your credit cards or simply dont use it, then perhaps is the right time to cancel that card. However, cancelling a card can be tricky, as the company obviously wants you to stay with them. If you follow these simple steps then cancelling a card can be hassle free and will not affect your credit rating:

Pay it off

Obviously, the first thing you need to do before you can cancel a card is to pay off the balance. Although it can be hard to stop spending on the card, it is best to pay off the balance first. This will make it much easier to cancel and you wont incur any penalties when you do so. If you try to cancel the card whilst you still have a balance, the credit card company could put your interest rate up to the maximum whilst you pay the balance off.

Phone the credit company

After you have paid off the balance, the first step in cancelling your card is to notify the credit card company by phone of your desire to cancel. The number for your card issuer is usually located on your statement or the back of your card. When you call to cancel, expect the company to try and convince you otherwise.

Listen to their offer

When you cancel your card, the credit company might well offer you a new deal in order to keep you as a customer. They might offer you a lower interest rate or some other perks such as an upgrade to a platinum card. If the offer is good, then think about whether you should cancel. If you are trying to get rid of cards, then maybe you can get rid of another one. However, if the offer is not forthcoming then cancel your card without hesitation. If you have really set your mind to cancelling that card for whatever reason, then do so.

Write a letter

After you have cancelled your card, you should write to the credit card company and inform them that you want your credit report to show you cancelled the card voluntarily. If your credit report just shows you have had an account closed, other lenders might think the company closed it, and this will harm your credit score.

Check your report

Wait about a month after sending the letter, and then request a copy of your credit report. You want it to show that you cancelled the account. If the report says closed by creditor, then you need to do something about it because this will reflect badly on you. Call the credit card company again to let them know the mistake and follow up with another letter, along with a copy of the original letter. You need to do this because it is your responsibility to make sure your report is correct

When not to cancel

If you are trying to improve your credit score, then it might be a bad idea to close accounts. If you have unused credit this looks better than having used most of your credit. For example, if you have 5,000 used credit and 8,000 total credit, getting rid of one 2,000 card means you are using 5,000 out of 6,000 credit. This looks like you are more in debt than when you have free credit. However, if you know you need to close the account to avoid spending it, then cancelling a card is a good option.

Throughout your life youre the history of you credit repayment will follow you. Ensuring, therefore, that you have a good prior history of borrowing money is vital. Insofar as credit cards are concerned, the following is a brief guide to how to build your credit card credit history.

If you have never financed a purchase on credit previously, applying for a credit card can be a little tricky, as the issuer will have no record of yours to judge whether or not you are a credit risk or safe to lend to. As such, before you apply for any of the major credit card issuers, youll likely need to apply to either a minor credit card issuer, such as store, or apply for some form of hire purchase, such as a car loan or to buy a television. Once you have done this, it is then very important that you make the repayments timely and in full.

Provided that you do pay your statement invoices on time and in full, youll start to create a good credit history. Obviously no lender will take one payment as evidence of your capabilities to repay your debt on time and in full. However, so long as you continue to this for a period of time, even a relatively short period of time, such as three or six months, youll then start to find that other lenders are willing to lend you money based on your good credit history.

If applying for a store card or hire purchase loan doesnt seem an acceptable way for you to create a good history of credit, an alternative you can consider is a secured credit card. Essentially a secured credit card requires you to maintain your credit card from a bank account and the limit of your credit will be a percentage of your account holdings. While not strictly a credit arrangement, the issuer then gets to see that you have the capabilities to repay the credit.

Keep in mind that your credit rating will be essential to any credit card application you make. Consequently, before applying for a card you should really make an application to a credit rating agency to ensure that you have managed to build your credit card history up sufficiently not to have too much difficulty applying. In the event that you think the credit rating report is wrong, you should immediately set out the reasons why you think this to the agency so that you can correct any errors in you history before you apply for the credit card