Posts Tagged ‘Tips’

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Top Tips to Credit Card Debt Negotiation

Friday, July 30th, 2010

Top Tips to Credit Card Debt Negotiation

Credit card debt is really a menace and a lot of people are facing it around the globe. Credit card debt consolidation and bank loans are well known as ways of reducing and eliminating credit card debt. In all this confusion, credit card debt negotiation almost gets forgotten.
Well, credit card debt negotiation starts right from your credit accounts where you have the most hard-hitting credit card debt. This means credit card debt negotiation has to be taken up with your current credit providers. Before you misinterpret it, let me clarify that we are not talking about chucking off a portion of your debt through credit card debt negotiation. We are talking primarily about using credit card debt negotiations for getting the APR on your current credit cards reduced to some lower figure.
So, credit card debt negotiation is about talking to your current credit card suppliers for informing them about your intention to clear off your credit card debt and using your skills (credit card debt negotiation skills) to agree a lower APR rate with them. Basically, credit card debt negotiation is about asking your current credit card suppliers for help/assistance in clearing off your credit card debt. If credit card debt negotiation is successful, it will save you not only money (due to reduction in APR) but also the hassle that is associated with looking for a new credit card (to transfer balance).
However, if the credit card debt negotiation, with your current credit card supplier, doesn’t yield the desired results, you will have to look for other credit suppliers who can help you in consolidating your debt. Again, you will need your negotiation skills (rather credit card debt negotiation skills) to get a good deal from them. If your credit card debt negotiations work out well, you might be able to get a really low standard APR or you might get a longer term on 0% APR (or you might get both).
These are really the most important things and your credit card debt negotiations should concentrate more on these than anything else. The other thing to include on your credit card debt negotiation would be the credit limit and other benefits.
Here, you are basically trying out the possibility of getting a better credit card as part of your credit card debt negotiation. For people with really bad credit rating, getting an unsecured bank loan or getting another credit card (for balance transfer) is really difficult. For them, getting an unsecured bank loan or credit card is what you would term as credit card debt negotiation.
So, don’t hesitate in going for credit card debt negotiation. It is surely an option available for all.

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Shopping New Credit Cards? – Tips To Choose The Best

Friday, July 30th, 2010

Shopping New Credit Cards? – Tips To Choose The Best

Many of these solicitations urge you to accept “before the offer expires.” Before you accept, shop around to get the best Credit card deal.

What are Credit Card Terms?

A credit card is a form of borrowing that often involves charges. Credit terms and conditions affect your overall cost. So it’s wise to compare terms and fees before you agree to open a credit card account. The following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application. You also may want to ask about these terms when you’re shopping for a card.

Annual Percentage Rate. The APR is a measure of the cost of credit, expressed as a yearly rate. It also must be disclosed before you become obligated on the credit card account and on your credit card account statements.

The card issuer also must disclose the “periodic rate” – the rate applied to your outstanding balance to figure the finance charge for each billing period.

Some credit card plans allow the issuer to change your APR when interest rates or other economic indicators – called indexes – change. Because the rate change is linked to the index’s performance, these plans are called “variable rate” programs. Rate changes raise or lower the finance charge on your credit card account. If you’re considering a variable rate credit card, the issuer must also provide various information that discloses to you:

* That the credit card rate may change; and
* How the rate is determined – which index is used and what additional amount, the “margin,” is added to determine your new rate.

At the latest, you also must receive information, before you become obligated on the credit card account, about any limitations on how much and how often your credit card rate may change.

Free Period. Also called a “grace period,” a free period lets you avoid credit card finance charges by paying your balance in full before the due date. Knowing whether a credit card gives you a free period is especially important if you plan to pay your account in full each month. Without a free period, the credit card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your credit card account. If your card includes a free period, the issuer must mail your bill at least 14 days before the due date so you’ll have enough time to pay.

Annual Fees. Most credit card issuers charge annual membership or participation fees. They often range from to , sometimes up to 0; “gold” or “platinum” cards often charge up to and sometimes up to several hundred dollars depending on the credit card you settle for.

Transaction Fees and Other Charges; A credit card may include other costs. Some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. Some charge a monthly fee whether or not you use the credit card.

Balance Computation Method for the Finance Charge; If you don’t have a free period, or if you expect to pay for purchases over time, it’s important to know what method the credit card issuer uses to calculate your finance charge. This can make a big difference in how much of a finance charge you’ll pay – even if the APR and your buying patterns remain relatively constant.

Average Daily Balance; This is the most common calculation method. It credits your account from the day payment is received by the issuer. To figure the balance due, the issuer totals the beginning balance for each day in the billing period and subtracts any credits made to your credit card account that day. While new purchases may or may not be added to the balance, depending on your plan, cash advances typically are included. The resulting daily balances are added for the billing cycle. The total is then divided by the number of days in the billing period to get the “average daily balance.”

Adjusted Balance; This is usually the most advantageous method for Credit card holders. Your balance is determined by subtracting payments or credits received during the current billing period from the balance at the end of the previous billing period. Purchases made during the billing period aren’t included.

This method gives you until the end of the billing cycle to pay a portion of your balance to avoid the interest charges on that amount. Some creditors exclude prior, unpaid finance charges from the previous balance.

Observing the above tips will go along way in ensuring that your shop for a good card and also maintain a good credit rating.

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Tips For Choosing Among Credit Card Offers When You Have Bad Credit

Wednesday, July 28th, 2010

Tips For Choosing Among Credit Card Offers When You Have Bad Credit

Don’t let bad credit stop you from getting and using a credit card. Even if your credit rating has gone bad the last few months and you badly need a credit card, there are still companies who are willing to extend credit card offers to you. It’s only a matter of finding what the different offers are and knowing the risks and benefits of each choice. Here are four kinds of credit cards you can use even with bad credit:

Unsecured credit card
This is often referred to as the ‘bad credit’ credit card, so named because it is only issued to people with bad credit. An unsecured bad credit card will still allow you to transact as usual, but there is a downside to it.

Bad credit cards, thanks to your less-than-perfect credit rating, will charge higher fees compared to other types of credit cards. This is probably the only credit card that will charge you as much as 0 in annual fees alone. Interest rates are also higher, sometimes as much as 20%. Banks and credit card companies also charge higher application fees. If you want this card, make sure you can handle the payments. If not, you’ll be in danger of getting yourself deeper into bad credit.

Catalog credit card
These are cards that are offered by many online shops and stores to encourage you to buy from them. Usually, a catalog credit card may only be used in a particular merchant store. All your payments will be reported to a credit bureau and you’ll also be given a credit line, the amount of which will depend on the issuing company and on how well you can meet their requirements.

These companies will not charge you an interest rate on any of the purchases you make. However, they will require that you pay a higher installment or minimum monthly balance.

Prepaid credit card
This type of credit card is perfect for your bad credit, in that it can help you limit your spending. It’s also easy to apply and get approval for, provided you have enough funds for the application and processing fees and the maintenance fees (usually monthly). These cards will not help you rebuild your credit but they will help you live within your means. Choose one that has the lowest fees and cost.

Secured credit card
A secured credit card is called that way because you will need to make a deposit with the bank who issues it in order to get one. Depending on the bank, you can sometimes get a credit limit worth as much as 100% of your deposited funds. This type of credit card is effective for limiting your purchases. Better yet, you’ll be using your own money and your deposit will earn interest.

You might think that secured credit cards totally defeat the purpose of a credit card and you’re probably right. However, don’t cross them out yet. Secured credit cards are a great way to rebuild your credit and still allow you to participate in cashless transactions. After all, you don’t want to remain in bad credit forever, right?

So which credit card should you choose when you have bad credit? That depends on what you want to do. If you want to rebuild your credit, get an unsecured credit card that offers a good interest rate, low annual fees and no application fees. It’s also important that it reports to a major credit bureau. All your payments will be recorded and if you’re never delinquent, you can gradually rebuild your credit over time.

If you only want a credit card that will tide you over for some temporary need, go for a prepaid or a secured credit card. As long as you can handle the monthly payments, these credit cards should help you get back on your feet once again.

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Reward Credit Cards: Tips to Reward Your Wallet not the Lender

Tuesday, July 27th, 2010

Reward Credit Cards: Tips to Reward Your Wallet not the Lender

Rewards credit card holders love to obtain credit cards rewards points. And why not? Credit card rewards give bonuses and privilege to its members by simply using credit cards on their purchases. However, not all credit card rewards are suitable for all types of people. Using the wrong types of rewards credit cards can be more of a disadvantage rather than an advantage if not correctly used. Thus, as a consumer, you need to make sure that you’ll get the one suitable to your needs and lifestyle.

All rewards credit cards require its users to gather points in order to get a bonus or an incentive. Points are collected with each time the card holder makes a purchase using his credit card. Different credit cards give different points equivalent to every dollar of purchase. When the card holder has collected the minimum points needed, she can claim his bonus or reward.

Credit card rewards come in different packages. There are credit cards that especially provide free travel privileges, gas rebates, cash rebates on purchases, cash back rewards, discounts, freebies and a combination of all these bonuses. Hence, you can select your preferred type of reward that you can most benefit with.

An important reminder for rewards credit card holder is to select the card that matches their spending. For example, a frequent travel miles card may not be best for those who only use their credit cards once in awhile. It will usually take a huge number of mileage points before you can receive your travel reward. Thus, you may need to make a very large amount of purchase before you can collect the minimum number of mileage points required to travel.

Those in business generally make large purchases so they can easily collect mileage points with a travel rewards credit card. On the other hand, for those who only use their credit cards for their personal needs can perhaps best benefit from a gas rewards credit card of a cash back rewards credit card. This is because these cards usually do not entail very large amounts of purchases before the card holder is able to redeem rewards.For instance, with a gas rewards credit card, you can get a 3% to 5% rebate on your gas purchases. Imagine how much money you’ll be able to save in an entire month by adding up all the rebates you earn for this whole period. Also, some credit cards award 1% up to 10% rebates on all purchases while others use a point system to give rewards. There are credit cards that give 1 point for each dollar spent on your account while other card issuers give double points for each dollar.Obviously, you need to choose your rewards credit card very carefully. Don’t forget to review all terms and conditions that apply to that specific rewards credit card you’re applying for. Furthermore, bear in mind that the important thing with owning a credit card is to pay your balances on time. Otherwise, you may lose your privilege of redeeming your rewards and even worse, you can be facing bad credit in no time at all.

Credit Card Rewards – Travel, Cash Back, Gas, Business, Hotel, or Airline Credit Cards Reward Programs provides consumers with valuable reviews and information on the best reward programs. Earn hotel rewards for free hotel stays, gift certificates and enjoy special benefits. See full review of the popular hotel credit card: Hilton Honors club platinum rewards credit card.

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5 Easy Tips for to Save Money on Credit Card Balance Transfers

Tuesday, July 27th, 2010

5 Easy Tips for to Save Money on Credit Card Balance Transfers

In today’s financial market more and more people are turning to credit card balance transfers instead of the traditional home equity lines that they have been used in the past. During the refinance hay-day throwing a tax deductible line of credit on the home to wipe out the credit cards was a no-brainer. Nowadays, shrinking home values and a turbulent secondary market are causing most banks have to hold these loans as opposed to selling them. This means the HELOCS of yesterday are only available to those with impeccable credit who have an abundance of equity in their homes.

Luckily, interest rates are low and balance transfers are a pretty good alternative if your credit card debt is out of control and need some help. This being said there are a few things that you want to look out for when transferring credit card balances from one card to another. The golden rule is that when you use a balance transfer card as an avenue to pay off balances on your other cards let this be your sole purpose. Make a budget and timetable to pay off the debt where there is a beginning and an ending payment otherwise you may get yourself into deeper debt.

Things to look for when transferring credit card balances:

Life of Balance Transfer cards – Life of balance credit cards are just what their name implies, they offer a low rate that applies to the balances you transfer within a certain time period. What you want to look for is a fixed rate that will not fluctuate over time. Depending on your credit level these may not be available to you, however if they are we highly suggest that you seek these cards out. The “gotcha” with this class of cards is that they usually will give you an extra thousand or two on your limit in hopes that you spend it at a higher interest rate, and most people do.

Again, we suggest that you use balance transfer credit cards for the single purpose of transferring higher interest credit card balances to a lower fixed rate. Once the transfer is completed, we recommend that you shred the transfer card and the one you transferred from to keep yourself from using them again. Over 75% of people that transfer balances use the transfer card and the old card again and end up owing more money than they did before the transfer. If the cards do not have an annual fee keep the accounts open for emergencies but shred the cards to keep yourself honest.

The Fine Print – If credit card issuers are similar in one area it is most definitely their fees and the fine print. It seems like they have fees for everything including one for on-time payments. Seriously you need to read the fine print and weigh the fees that apply for balance transfers, late payments, grace periods and other “gotchas” like universal default clauses. Over 80% of people that apply for credit cards will not read the fine print from beginning to end only to be surprised when their bill arrives in the mail. Most credit card websites offer handy calculators to help you calculate the best deal considering all of the fees.

Most credit cards have reduced the grace periods for repayment from 30 days to 20 days in an attempt to earn more fees and interest. If you are like most people, including yours truly, you pay your bills at a certain time of the month that usually coincides with your pay periods. The problem with this is that the 20 day grace period is relative to the due date of last month’s charges and is forever changing. If you pay your bills once a month like I do this will cause you to get late payment fees and could even trip the universal default clause which brings me to my next topic.

Universal Default Clauses – A universal default clause is a nasty little trick that credit card issuers use to jack-up your rates and fees to intolerable heights. If you look at the top of the fine print on each credit card you will usually see the regular APR and one below it that is through the roof. The one below it is the rate you will get should you pay late or even if your credit deteriorates. These clauses range from annoying to nasty and most states are trying to outlaw them but the majority of credit cards still have them.

The only card issuer that I can think of that doesn’t have this clause across the board is Capital One. I’m sure there are others but the clauses differ from issuer to issuer and card to card. Read the fine print for each card you are considering, see what their rules are that will trigger this clause. Some are mild which apply only if you are habitually late, where others monitor your credit and can jack up your rates and fees if your credit is deemed riskier than when they issued the card.

Introductory & Variable Rates – Beware of the asterisks. When you see one of these next to an interest rate you can bet it’s going to change on you. Most cards will advertise 0% interest on balance transfers 12 – 15 months but have cute little asterisks next to the rate. Find the fine print; chances are that your sexy 0% rate is going to morph into a giant wallet munching monster after the intro rate is over. Find out what the adjusted rate will be.The “gotcha” here is that most people know their rate will adjust in the future but they rationalize the transfer thinking that they will have the balance paid off in that time frame. Chances they won’t and the credit card companies know this. How else do you think they can offer 0% interest rates?

Variable rates are almost inescapable because 95% of all cards have variable rates. The ones that do not have them are hidden deep within most websites and offer very few frills. The reason they are hidden is that they are a little tougher to qualify for and offer lower profit margins to the issuers. When searching credit card websites take an extra minute to go all the way to the last page in each category, you may be surprised what you will find. Most credit card websites are arranged with the most profitable credit cards on the first few pages, these are rarely the best credit cards.

Reward Cards – If you are using your balance transfer card as you should, the bells and whistles on reward cards shouldn’t concern you. The bells and whistles cost you more, period. They cost the issuer more and they pass the cost right back to you. If you stay true to the purpose and transfer your balances in order to pay them off you should get a plain-Jane generic card without the usual frills hat comes with most cards. The only frills you should seek are the life of balance feature, fixed rate and a manageable or nonexistent universal default clause.

In closing I hope these tips help you get your very best deal should you decide to use a balance transfer card. This category of credit card is becoming more and more popular every day due to the financial chaos surrounding us today. This is generally a good thing though; this causes the card issuers to come up with different cards that offer better deals to keep up with their competition. Just remember the golden rule, only use balance transfer cards with a specific plan to pay off a balance. If you are “robbing Peter to pay Paul” the credit card companies will usually win in the end. Remember, Las Vegas wasn’t built on winners and neither are large credit card companies.

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