Choosing The Credit Card That Is Right For You
October 20, 2008
Credit cards represent an important part of our financial lives. Having the right credit cards is essential and will make a big difference to your finances. Before choosing the right credit card you must shop around for one.
First make an idea on what credit cards are available on the market from the numerous offers that are always coming to your mailbox. Yet, don’t relay too much on them as they can be confusing and sometimes misleading. After that try to establish what features of the credit card are the most important for you. The perfect card for you should provide the right combination of fees, rates and benefits. The next step would be to compare various credit cards and decide which one you will finally choose.
Nowadays, Internet can be of big help to you when shopping for a credit card. First of all, almost all financial companies that offer credit cards have websites. This can save you the trouble of wasting your time to personally visit them all. All you need to do is visit them all from the comfort of your own home and see what offer fits best to your needs. Some of these websites have a great feature that lets you compare several credit cards side by side. And when you see all the figures at once it is easier to decide which card to select.
All About Balance Transfers
October 16, 2008
What is a balance transfer?
A balance transfer can be explained simply as a balance transfer! When a balance is transferred usually from a credit card, but possible from a bank account or loan to a credit card with a offer interest rate (usually 0%) for a set period. It does not have to be the entire amount. The card receiving the balance will an interest rate for a set term, normally 6 months, but can be 9 months or even a year. Take a look at the current balance transfer deals currently available at http://www.search4-credit-cards.co.uk/balance_transfers.html. This will give you a flavour of the typical kind of deal available.
Should I apply for a balance transfer?
It is important to remember that a balance transfer does not mean that the debt has gone away. It just means you are not paying interest on it. You will still have to maintain payments.
This may seem obvious but many people do not get this straight in their mind.
The basic criteria for getting a balance transfer is when you regularly have an outstanding balance after making your monthly payments. This is the amount you should look to transfer to another card. This will mean that for the period of the offer you will pay no interest on the balance (provided you make the minimum payments).
Credit Card Shocker
October 13, 2008
Have you ever looked at your credit card statement? I’m not talking about just making sure that all the transactions are correct. I’m talking about looking at the finance charges. I daresay that sometimes that figure is almost as great as the minimum monthly payment you’re making. After all, as long as you can keep the creditors at bay by paying the minimum, that’s all you care about, right? If you agreed, I urge you to reconsider.
I’m sure that by now, many of you realize that you lose money by buying on credit. Still, I don’t think many of you appreciate just how much your credit cards are costing you. I’d like to really drive that point home.
Let’s say that Joe decides he needs new patio furniture. He doesn’t have the $2,000 cash, so he slaps down his plastic card knowing that he can make the minimum monthly payment, no sweat. And so that’s what he does, month in, month, out, year in, year out, and pretty soon he’s been doing this for one full decade. Surely it’s paid off by now! No, not even close. In fact, if Joe continues to make the minimum monthly payment, he will be paying for that furniture for the next 38 years! And once he has made the final payment on his original $2,000 purchase, he will have paid an additional $5,300 in interest! Pretty disgusting, isn’t it? And this is at 14% APR. Many cards run higher.
Rewards Cards: Are They Worth It?
October 11, 2008
Virtually all consumers will have a credit card at some point in their lives. Is this an understatement? Probably, as most consumers carry multiple credit cards. Selecting a credit card should not be something taken lightly; card companies are constantly looking for new consumers, but only after wisely comparing offers should you select a provider. Pick a company that will give to you a reasonable rate and one that incentivizes their program with some type of reward for using their card.
So, how do rewards cards work? Almost without fail, rewards cards typically give consumers money back on their purchases [usually 1-2%] or allow you to accumulate points toward prizes or discounts on future purchases. If you charge $10,000. per year [not hard to do if you charge your groceries] and your rewards card pays you a 2% reward on purchases, you will receive $200. from the company. Usually you will gain the funds in the form of several credits to your account spread out over the course of a year, but in some cases you will receive the rewards in the form of a check.
Fight Credit Card Fraud with Common Sense
October 6, 2008
By now, you have undoubtedly heard of credit card fraud, an alarming and damaging trend that is sweeping the country. Here’s the bad news: It is disturbingly easy for thieves to obtain your credit card number–usually from discarded receipts or even directly from you. For instance, many solicitors masquerade as legitimate businesspeople–like those who offer vacation packages, for instance–when, in fact, they’re looking for you to innocently hand over your credit card number so they can rack up illegal charges.
The good news is that there are many ways you can proactively and effectively protect yourself against credit card fraud:
-If your credit card has been lost or stolen, report it immediately to the card issuer. You are not obligated to pay for unauthorized charges once you report the loss.
-Sign new cards immediately once they arrive in the mail. Once you receive them, carry them in a separate case from your wallet.
-Notify credit card companies if you are about to move, either temporarily or permanently.
-Never offer your account number over the phone unless you’re dealing with a reputable and legitimate company. If you have any question about a company, contact the Better Business Bureau (http://www.bbb.com ).
Protect Yourself Against Identity Theft
October 4, 2008
Identity theft is when someone uses, without permission, your personal information in order to commit any frauds or crimes. Identity theft is a felony that is becoming more and more common. That is because some of us are not very careful with personal information, making the job easier for those trying to steel our identity. We should always be careful with information like Social Security number, credit card number, birth date, employment information, driver’s license number, etc., because if they enter into the wrong hands the consequences can be very serious. People that have experienced identity theft spend months trying to repair what others have damaged, and in the meantime they cannot get a loan or lose a job opportunity or, sometimes, they can get arrested for something they didn’t do.
If you have the slightest suspicion that someone has gained access to your personal information, acting quickly is a must. First of all, you should get in touch with the fraud department of the credit bureau where you have your accounts and request them to initiate a credit alert on your accounts. This way the creditors are obligated to contact you before taking any actions regarding your accounts. At the same time you should close the accounts you believe that are corrupted. The second step would be filing a police report and keeping a copy of it so to have a proof of the crime.
Credit Report ? How to Improve Your Credit Score
September 30, 2008
One of the great mysteries of life is how the three major credit bureaus (Experian, Equifax, and Trans Union) score credit. They all have secret statistical formulas for determining your credit score, but they are unwilling to divulge exactly what, exactly, constitutes your score. This can make it difficult for people with problem credit to try to improve their score in hopes of obtaining a home or car loan later.
While the exact formula is a secret, there are a few things you can do that will undoubtedly improve your score:
Pay off a home equity line of credit. These loans, which allow you to borrow more than once against your home’s equity, are considered revolving credit, much like a credit card. Pay it down or pay it off; either should help your score.
Check your credit report regularly; you are entitled to a free copy of your credit report once a year. By looking over your credit report, you can make sure that debts you have paid on time are shown on the report, such as student loans, or auto loans that have been paid in full. You can also make sure that your credit limits on your credit cards are reported correctly. Lenders look at the ratio of debt to available credit, and if your reported credit limit is low, it could make it appear as though you are nearly at your credit limit.
Learning the Disturbing Facts about Credit Card Debt
September 27, 2008
When I received my first credit card in the mail at age 18 I was ecstatic, I said to myself, wow now I’m getting somewhere in life. This credit card company thinks I’m worthy of 500 dollars in credit. So I made my monthly payments like a good consumer and watched my credit limit grow. I thought boy this company must think alot of me to take such a risk. I however had no idea how the money came into existence. All I cared about was that as long as when I slapped the plastic down I was approved. Like most young people I had no idea what an interest rate even was much less how it effected my monthly payments. I was like a lot of kids in America today, my parents were not a big part of my early adult life and so I really didn’t have much guidance when it came to making financial decisions. The lessons I learned were hard and I continue to learn as each day passes.
What is Credit Card and Debit Card Blocking?
September 25, 2008
Have you ever been told you were over your credit card limit, or had your debit card declined, even though you knew you had available credit or money in your bank account? If this happened shortly after you stayed in a hotel or rented a car, the problem could have been card “blocking.”
What is Blocking?
When you use a credit or debit card to check into a hotel or rent a car, the clerk usually contacts the company that issued your card to give an estimated total. If the transaction is approved, your available credit (credit card) or the balance in your bank account (debit card) is reduced by this amount. That’s a “block.” Some companies also call this placing a “hold” on those amounts.
Beware the Shopping Mall Monster
September 21, 2008
Like me, you’ve probably been offered a fair old number of these by now…
..and, if you’re like most people, chances are you maybe own at least one or two.
They always seem to put in an appearance at just the right (or wrong) moment…
It might be Saturday and you’ve just seen the clothing item of your dreams.
That can be a pain, though, if this month’s paycheck isn’t due for another week.
You’re undecided.
Until, that is, you’re offered…
..a store card.
One of the horrible ironies about store cards is that the vast majority of people who sign up for one actually had no intention of making a purchase before they left the house.
But if you’re caught in the above situation, the convenience factor frequently wins the day, doesn’t it? Add on top of this all the little goodies thrown in as a sweetener…
An introductory discount on goods ? typically around the 10% mark ? extra money off during sales periods etc…
But let me tell you what the sales assistant probably won’t…
