Credit Card Details

Traveling Abroad with Your Credit Card

noreply@blogger.com (Unknown) — Fri, 07 Mar 2008 16:51:00 +0000

Are you taking a trip outside of the country any time soon? A credit card can be your best accessory! Credit cards provide the most convenient and safest way to pay for travel costs. But it is important to be aware of the precautions when traveling with a credit card, especially when traveling abroad.

Do you currently have a credit card that is widely accepted? If not, consider credit cards from MasterCard, Visa and American Express - they are a safe bet in most countries. Even with these accepted cards, you can expect additional fees to be involved such as higher ATM fees and currency conversion fees, usually ranging from 1-3 percent. It’s a good idea not only to call your bank to double check these fees, but also to update them on your vacation plans. Otherwise, if they track your card being used in an unusual location, it may raise a red flag and lead them to believe the card or your personal account data was stolen and they can block the credit card. If your card is blocked, you will need to call the issuer and expect a delay before you can re-access your credit.

Remember to check your credit limit and your card’s expiration date. Nothing is worse than leaving the country and finding out you have to limit your vacation expenses to the one hundred dollars in cash you happened to bring. Speaking of, do bring some cash on your trip. Some foreign restaurants and gift shops don’t accept credit cards and you don’t want to be limited or unable to bring souvenirs back, do you?

When you are able to use the credit card, watch out for double or dishonest billing. Keep all receipts and keep track of your spending. This is most easily done if you scale down to only one credit card during your vacation abroad. Using a single credit card will make it easier to budget and track your spending when you return home. Holding on to all receipts will make it easy to identify any unusual charges on your credit card statement.

While on vacation, store your credit card account numbers somewhere secure (under password protection or in a safe) in case you lose your credit card or get it stolen while away from home. This will make it easier to cancel the account when calling your card issuer. In case this happens, it is good to have a back-up credit card, also kept in a safe, for remaining expenses.

Bon voyage!

The Good and The Bad of 0% APR Credit Cards

noreply@blogger.com (Unknown) — Thu, 06 Mar 2008 16:13:00 +0000

We've all heard of 0% APR credit cards, zero percent symbolizing the introductory rate offered by credit card companies for a period of three to twelve months. The highlight of a 0% APR credit card is the non-existent interest rate on balance transfers, new purchases or both. Credit card companies create 0% APR credit card promotions to attract new customers. If used responsibly, a 0% APR credit card could be used as a tool to reduce or even eliminate credit card debt and establish credit without paying interest.

0% APR credit cards do have some drawbacks. A 0% APR credit card only lasts for the promotional period and some don't allow balance transfers during the 0% APR period.
Default, late payment, or over credit limit charges are usually heftier than other types of credit cards and the promotional period is discontinued if any of these are abused. Interest rates are usually high when the 0% APR period ends, so before signing up for an 0% APR credit card, make sure you are aware of the rate after the promotional period ends.

Students Need Credit Cards!

noreply@blogger.com (Unknown) — Thu, 06 Mar 2008 16:01:00 +0000

If your teenager is begging for a credit card, it's time to listen! Student credit cards are a great way for high school and college students to establish credit worthiness. Many credit card companies offer student credit cards at no annual fee and many offer rewards, cash back, and a low or 0% introductory APR. Having a student credit credit card has many benefits for your teenager. Besides helping him/her build credit, student credit cards also provide a line of credit for necessary school items such as book, school supplies, and even groceries.

Student credit cards do have some drawbacks. These type of credit cards usually carry a higher APR due to bad or no credit usually associated with student credit card users. Thus, liberal spending without paying the card's full balance could result in hefty finance charges and / or long repayment terms. The ideal situation for a student is to use the credit card like they would cash. Paying the full balance every month establishes credit worthiness and avoids unnecessary payments on interests, defaults, and more.

If your teenager can learn to be financially responsible with a student credit card, that will be one valuable lesson they leave home with.

Credit Cards Making Transportation on the PATH Easy

noreply@blogger.com (Unknown) — Fri, 29 Feb 2008 16:38:00 +0000

Early 2009, New York and New Jersey commuters will have an easier way to travel on the PATH trains. MasterCard and NJ Transit are planning an eight-month pilot test that allows riders to use contactless bank cards, key fobs, cell phones and other devices to pay their fares on the PATH, a train which connects Manhattan and New Jersey. According to the Port Authority, the scope of the test is to determine if customers could ultimatly use these devices to pay fares on all of the region's transit system.

MasterCard is in charge of developing, installing and testing the system before the trial begins. MasterCard was selected through a publicly advertised solicitation process because its proposal was the highest rated and lowest cost. Port Authority Executive Director Anthony E. Shorris said, “This is all about making life easier for our customers. The region’s diverse workforce relies on our extensive mass transit network to commute and we need to find a way to take a bit of the hassle out of trips that often span two or three separate systems. We are looking for simple fare payment solutions that will work everywhere. This is a step in that direction, and it’s the right direction to go.”

Only time will tell if the test will be successful or if it will have the same fate as the now outdated subway token.

Identity Theft - What to Do

noreply@blogger.com (Unknown) — Fri, 29 Feb 2008 15:59:00 +0000

Identity Theft has become an issue of major concern in past years. If you have become a victim of identity theft there are steps you can take to protect your good name and, more importantly, your credit.

Place a Fraud Alert on Your Credit Reports
The three major credit reporting agencies have a fraud victim reporting service that allows victims of identity theft to file a report (basically a police report) that blocks fraudulent information from their credit report. The credit reporting company that is alerted must then relay the information to the other two credit reporting companies and the financial institutions that sent the fraudulent information. You are also entitled to a free credit report from all of the credit reporting agencies once you have filed a fraud alert. It would be a good idea, at this point, to request a credit report from all three agencies and review it carefully for more information that might be fraudulent.

Equifax
PO Box 740241
Atlanta, GA 30374-0241
1-800-525-6285
www.equifax.com

Experian
PO Box 9532
Allen, TX 75013
1-888-Experian (397-3742)
www.experian.com

TransUnion
PO Box 6790
Fullerton, CA 92834-6790
1-800-680-7289
www.transunion.com

In addition to submitting a report to a credit reporting agency you'll need to send a report to the information providers (bank, credit card company, etc.) that relayed the fraudulent information. Be sure to include the necessary information to identify yourself (name, address, etc.) and explain, in detail, the accounts that have been activated or used fraudulently.

If the report is accepted by the credit reporting company (they must notify you if they don't) they will place a block on credit reporting information that comes from those accounts. The same goes for the information providers. In addition, information providers can not collect on the debt that is believed to be fraudulent or sell it to another company to collect once they accept the report of identity theft.

For credit fraud specific to credit cards it is necessary to exercise your rights granted under the Fair Credit Billing Act. This states that any consumer's liability is limited to $50 per credit card containing fraudulent usage. To take advantage of this you must:

Write to your credit card company's "Billing Inquiries" address (not the same address that you send payments to). Include all pertinent information like your name, address, account number and any dates and amounts that refer to fraudulent activity on your account. Your letter must reach the creditor within 60 days of the disputed charge. In most cases it's recommended to send a certified letter and obtain receipt notification so there's proof you sent the letter.

When the credit card company receives your letter they have 30 days to acknowledge it. From there they have two billing cycles (no more than 90 days) after receiving the letter to fix the billing error or fraudulent activity.

Identity theft can happen to anyone, anywhere. However, by taking the proper steps you can both prevent future identity theft and relieve responsibility for the fraudulent debt you have become victim to.

What Does One Have to Do for a Better Credit Card Around Here?

noreply@blogger.com (Unknown) — Tue, 26 Feb 2008 15:17:00 +0000

Many of you have been asking the same question and it's probably on all of our minds: If interest rates are going down, why are my credit card rates going up? I got several notices in the mail from my credit card issuers with some very bad news. Their credit card rates are about to rise and in some case the rates are doubling, tripling, and then some!

Much of our audience has shared similar stories. But for every negative story, I receive a positive- a story of persistence with a happy ending, a lower rate. So, I decided to try some of the methods and report back to you with what worked and what didn't work. Perhaps with this information we can all lock in low rates, at least until the next billing cycle.

Out of the bunch of notices, I picked one at random- this card’s (we won’t name names) interest rate will climb to 15%, so much for my low APR card. I was curious how the company would justify this absurd change so I just called them. I spoke to a nice representative who kindly told me this was the lowest rate available at the time. I pulled out every trick in the book, telling them competitors were offering lower rates and explaining that it was low rates that attracted me to their company in the first place. No luck- she just repeated the same sentence as before. I thought of telling her she will hear from my lawyer but a) they haven’t done anything illegal and b) that line never works. So, as a last resort, I told her I’d like to close my account. Boy that got her attention. After a few moments on hold, she came back to say she can knock the rate down in half and even offered a six month extension to my current low interest rate.

So go ahead, give it a try, what have you got to lose except a high interest rate?

Teach Your Teen Financial Responsibility

noreply@blogger.com (Unknown) — Wed, 20 Feb 2008 21:19:00 +0000

One of the most important things you can do for your teenager before he/she leaves home is to teach them basic financial responsibility. If your child can manage their own money, they will build good credit, have a better standard of living, won’t bother you for cash, and will have the freedom to choose their own path upon graduating college without worrying about sinking into the world of credit card debt.

Avoiding Credit Card Debt

Credit card debt is like a financial leg shackle; it follows you wherever you go. Help your teen avoid credit card debt troubles by teaching smart budgeting techniques. Once your child is away from home, they should be able to break down their monthly bills like this:

• cell phone bill ($50)
• car payment ($220)
• insurance ($100)
• rent ($475)

In this example, the student knows they need to set aside $845 each month for necessities. Realizing how much money goes into the basics will help them cut down on the “wants” like video games, trendy clothing, cable, etc. When I was in college, my parents paid the “needs,” and I had to get a job if I was to afford the “wants”. Prioritizing and budgeting the “wants” is important as well. Teach your teen to be realistic about what he/she can afford at the moment. Many companies, such as furniture stores and car dealerships, offer deceiving deals “Pay nothing for 12 months” or “Zero down financing,” which tempt buyers with the ease of credit and instant gratification of purchasing without taking money out of the wallet today. Often times, this leads to high interest rates and payments down the road which the student may have lacked to take into account.

Encourage Credit Building

Staying away from credit card debt and staying away from credit cards are two different things. Do educate your teen about the importance of building good credit. If you need a few pointers, refer to You Think You Don’t Need a Credit Card?, because shying away from credit cards is not the answer. Credit cards provide an unmatched level of convenience. They also help build good credit when used responsibly. And if your child is moving away from home, there is no easier way to wire them money in case of an emergency. Together with your teen, check out our student credit cards and view the options.

Many of our student credit cards feature no annual fees and many offer rewards, cash back, and a low or 0% introductory APR. However, student credit cards usually carry a higher than normal APR due to bad or no credit usually associated with student credit card users. This is where learning to budget becomes important. The ideal situation for a student is to use the credit card like they would cash. Paying the full balance every month establishes credit worthiness and avoids unnecessary payments on interests and defaults.

Teaching your teen financial responsibility is one of life's most important lessons so don't delay it another day!

You Think You Don’t Need a Credit Card?

noreply@blogger.com (Unknown) — Tue, 19 Feb 2008 21:49:00 +0000

Credit- we hear the word daily and some of us cringe at the thought of being indebted to someone. Instead we spend what we have and avoid acquiring debt. But at the same time we avoid acquiring credit. Others like the convenience of credit cards but don’t see what the big deal is with credit ratings. Late bills pile up and credit score points are dropping as they make one disastrous mistake after another. Living without credit or with bad credit will hurt you in the future because credit is used in so many facets of life. Living with no credit or with bad credit is not that different so either situation may put a serious damper on more than just your finances.

Credit plays many roles in your everyday life. In Denied! we discussed how difficult it has become to be approved for a great credit card. The truth is you do need to have good existing credit to qualify for reward cards or 0% APR credit cards.

Drive around much? Good credit also comes handy when you are renting, leasing, buying, financing or insuring a car. At best, without good credit, you will have to pay higher interest rates, but in many cases if you can’t prove you are financially responsible, you don’t get the lease. Of course these rules extend to bigger ticket items too, like your home. If you want to rent an apartment, a credit check will be performed and if you have a record of delinquency, no lease for you. If you want to buy a house with zero or bad credit, your interest rates will be a lot higher than if you had good credit. Over time, this adds up to a lot of money.

But zero credit or bad credit doesn’t only prevent you from acquiring material things. It extends to career choices as well. Potential employers often run credit checks to ensure they are hiring a responsible person. Don’t limit yourself in the job market. If you plan to be in involved in finance, accounting, or banking, your credit report needs to be flawless.

If you don’t have credit or have less than perfect credit, now is the time to start raising that score. For easy tips on improving your credit quickly, please read Speedy Credit Improvement.

Denied!

noreply@blogger.com (Unknown) — Tue, 12 Feb 2008 18:41:00 +0000

Applied for a credit card and got denied? Don't worry, you are not alone. You're one of thousands of Americans that has recently applied for a card and failed to get approved. It has gotten increasingly difficult for consumers to get approved for credit cards as banks and credit card companies use personal information to decide whether or not you're worthy of credit.

Credit card companies and banks are now using more personal data and payment records than ever before when they are deciding whether or not to approve a credit request. Things that had little or no effect on a credit rating as recent as last year are now becoming the sole reason for a denial notice. So you may want to rethink delaying that payment on your cell phone bill! Banks and credit card companies can access your cell phone payment records, mail-order payment records, bank overdrafts and other forms of credit. Some companies can even find out whether you have been paying your rent on time.

Given these recent credit card findings, it becomes increasingly important to pay all of your bills in a timely manner and remember to never pay less than the minimum. Budget all other expenses accordingly so you do not find yourself unable to get approved for a good credit card.

Having the right card makes all the difference. To find out more about credit cards and see if you qualify, visit Credit Card Details.

Silly Mistakes That Will Ruin Your Credit Score

noreply@blogger.com (Unknown) — Mon, 04 Feb 2008 21:41:00 +0000

Having a bad credit score can affect your interest rates, loan approvals and even rental applications. Avoid the following mistakes or else you will find that financial irresponsibility can cost a pretty penny.

Co-signing loans for family and friends who are not reliable with bill paying-
If the person whom you signed for misses payments or stops making them all together, it can ruin your credit. Additionally, if the person fails to give you fair warning, you may only discover the mishap when it's too late and the damage has already been done.

Ignoring your bills- Even if you think they are incorrect, they should never be ignored. Call the entity to avoid them sending the bill to a collections agency. Ignoring bills will cause your mortgage company, utilities company, phone company, credit card companies, etc. to inform the three major credit reporting bureaus that you’re not paying your bills. Your credit score will tank. If you are backed in a corner and cannot afford to pay the bills on time, it is worth making a phone call and being honest. Sometimes they are understanding and will strike a deal with you.

Applying for multiple credit cards and lines of credit at once- Having too many new accounts, all opened around the same time, will lower your average account age. This will have a large effect on your score if you don't have a lot of other credit established. Also, rapid account buildup can look risky if you are a new credit user.

Avoiding Credit Cards altogether- Credit cards help you build and establish credit, if you are responsible by paying your bills on time. Someone with no credit cards, tends to be higher risk than someone who has managed credit cards responsibly.

Maxing out your credit cards- Generally, it is a good idea to keep credit cards away from their limit to avoid the risk of late payments. High balances lower credit scores so do not get yourself backed into a corner with bills higher than you can pay on time. FICO, the most widely used credit score system agrees. FICO's model is heavily influenced by your credit utilization ratio. This is the portion of your available credit limit you're actually using. The formula likes to see a wide gap between your balances and your limits.

Questions? Want to find out more about your credit options? Visit us at Credit Card Details and find the perfect credit card for you!

The Store Credit Card- To Get or Not To Get- That is the Question

noreply@blogger.com (Unknown) — Fri, 01 Feb 2008 16:44:00 +0000

Folks often ask me about store credit cards. Are they a good deal? Are they the same as a bank credit card? In today's entry I just want to give some insight into this mystery card and let you decide if it fits your lifestyle and your wallet.

The Store Credit Card
So you are at the check out counter at a swanky clothing store and the clerk asks you if you'd like to save 15% of your purchase today. "Sure," you are quick to answer. After all 15% off those ridiculously priced jeans is almost enough to feed a small country. Huh, finding the perfect fit jeans AND having money left over to donate to charity- that's what I call successful shopping! "All you have to do is sign up for our exclusive credit card," the clerk chimes in, ruining your perfect humanitarian daydream.

Every time you hear the store credit card pitch, it's pretty tempting, but consider the following before rushing to sign up. Store credit cards often charge interest rates that are substantially higher than those of a regular credit card so if you are not the type to pay bills in whole as they come, a store credit card may not be for you. Additionally, keep in mind that having too many credit cards or frequently closing accounts can damage your credit score. So if you are working to build or improve credit, you may want to visit Credit Card Details to find a low interest credit card instead.

On the other hand, if you have a good credit score, pay bills on time, and there is a store you find yourself shopping at all the time, it may be worth it to get the store credit card. Many store credit cards are beneficial because they offer deals such as a discounts and continuing perks for exclusive card holders.

Questions? Want to find out more about your credit options? Visit us at Credit Card Details and find the perfect credit card for you!

Need a Passport? Put it on Your Credit Card!

noreply@blogger.com (Unknown) — Wed, 30 Jan 2008 17:30:00 +0000

The Ministry of Foreign Affairs and Trade announced that it will make it possible for people to pay for their passport with a credit card this year. "Starting this year, passport applicants can pay with credit cards on the Internet,'' a ministry official said. Officials went on to further explain that they could not accept credit cards thus far due to fees imposed on passport issuers.

The Korea Times reports that in 2009, credit cards will be accepted for both online and off-line applications for passports. The ministry plans to issue electronic passports, which contain the holders' fingerprints and other details, to diplomats and government officials on a trial basis in March and to the public in July.

To learn more about credit cards and all things relevant to credit, please visit Credit Card Details.

Credit Card vs. Debit Card

noreply@blogger.com (Unknown) — Mon, 07 Jan 2008 22:14:00 +0000

For someone applying for his/her first credit card, the process can be somewhat confusing due to the high number of options. You may hear terms like “Prepaid, Secured, Student, and Low APR Credit Cards,” and while some of these are self-explanatory, others will have you reaching for the dictionary. Our site is designed to help you understand financial terms in order to help you select the card perfect for you. This article however serves a simpler purpose: to answer the most common question I get “What is the difference between a credit card and debit card?”

A debit card is issued by your bank and tied in with your checking account. Every time you use your debit card, the money will be automatically withdrawn from your checking account. The advantage of a debit card is that it helps you keep track of your spending. It’s a cash card and the cash will disappear instantly from you account instead of being credited on your bill 30 days later. This helps take away from the mindset of “free money” and spending more than what you have. A debit card can also easily be used at ATMs to withdraw money from your checking account.

Although credit cards are to blame for much of our frivolous spending, they do have their advantages. For example, if your credit card is stolen, the money cannot be taken out right away. So, by the time the thief is able to do some spending, you can contact your credit card’s theft department and report the card stolen. Most banks handle theft well and do not charge you for the items been purchased after the card was stolen. Credit cards also help you build credit, that is if you use them responsibly and pay your bills on time. And best of all, many credit cards offer rewards or a point system that you can use toward airline tickets, vacations, electronics, and even Starbucks!

It’s your decision which card is better for you. If you have the financial mentality “only spend what you have,” a debit card may work best for you. If you have larger expenses that you cannot afford at time of purchase, a credit card may be for you. Although, we mentioned debit cards often help people become a bit more financially responsible, there is no reason those with credit cards can’t hold themselves to the same esteem. Especially, now that every major credit card company allows you to access and track your account online at any time. By tracking your account, you can avoid spending more than you have while still taking advantage of the additional security and rewards.

To learn more about credit cards and all things relevant to credit, please visit Credit Card Details.

How to Recover from Holiday Debt

noreply@blogger.com (Unknown) — Thu, 03 Jan 2008 18:00:00 +0000

Okay, it’s apparent that even after our “Your Credit Card Bill - The Day after Christmas” article, some of you are still afraid of opening up your credit card bills. I will make a second attempt at pacifying our readers with advice on how to recover from last month’s colossal spending spree.

It’s not too late for a New Year’s resolution. Let’s make one together. This is the year that I will tackle my debt head on. Now say it with confidence! Let’s get started. Pick the bill with the lowest balance and pay it off first to gain some momentum. The next step is obvious: Stop charging your credit cards! Believe me, many spenders overlook this important step and of course the bill pile gets taller and the stress becomes greater.

If you are heavily in debt, there are a few options. You can seek help from a nonprofit, accredited credit counseling agency. They can take a look at your financial situation and find the most effective solution. You can also practice “need-based” shopping. Many frivolous purchases are things we want, not need. Separate the two in a list and post it on the refrigerator where you can be reminded every day. This will help you create a new, strict budget that will put you on the path to financial freedom. Now that you’re living the simple life, you will notice many unnecessary things around your home. Sell off unneeded items on Amazon.com, eBay or craigslist for some extra money- just remember you are NOT on these sites to shop! If you come up with an extra $100, put it toward the high interest rate credit cards first. Continue with the rest until all credit cards are paid off.

Since you have felt the desperation of sinking into the pool of debt, hopefully next year’s holiday spending habits will be different.

To learn more about paying off debt and all things relevant to credit, please visit Credit Card Details.

Fixed Rate vs. Variable Rate Credit Cards

noreply@blogger.com (Unknown) — Fri, 28 Dec 2007 21:13:00 +0000

I am frequently asked what the difference is between a variable rate and a fixed rate credit card, so let’s set it straight. When you sign up for a credit card, you’ll notice it offers either a fixed interest rate or a variable interest rate. A variable rate card is directly tied to an index, usually the Prime Rate index. So, when the Prime Rate rises by x%, the interest rate of a variable rate card subsequently rises by x% within one month.

A fixed rate card, however, is not tied directly to the Prime Rate. So, when the Prime Rate fluctuates, the interest rate of a fixed rate card usually stays the same. Now, there is the misconception that fixed rate credit cards will have a constant interest rate that remains the same all the time. Don’t be fooled. There is no such thing as a truly fixed rate card. Even fixed rate cards increase their rates at times with, some with short notice. Also, be aware that fixed rate cards can and sometimes do change to variable rate cards

So, which one is for you? You need to take two main factors into account. First, what is the current Prime Lending Rate; and second, what are the chances of the percentage rate plus Prime Lending Rate going above the fixed rate? Keep in mind that if you can stay disciplined and pay your balance each month there is no need to be concerned with the interest rate at all. But, if you are trying to get out of debt, this rate carries remarkable consequences so consider your current financial situation as well before deciding which credit card is for you.

To learn more about credit and find the credit cards you are eligible for, please visit Credit Card Details.

Make Money with 0% APR Credit Cards

noreply@blogger.com (Unknown) — Fri, 28 Dec 2007 15:05:00 +0000

You didn't read it wrong. You can actually MAKE MONEY with a 0% APR Credit Card. It's not a "get rich quick" scheme but it's not rocket science either. Here's how it works:

1. Credit card companies offer 0% introductory APRs for a period of 3-15 months. The 0% APR is usually only for purchases but some cards offer it on balance transfers as well. The trick is to capitalize on the 0% APR period.

2. To do this you'll need two credit cards (request the highest limit possible when applying). I like the Miles by Discover Card and the Pulaski Bank Gold Visa Card, but you can choose any card you like. The important thing to keep in mind is the balance transfer rate, balance transfer fee and 0% APR period. You want to find a card that has a 0% introductory APR and balance transfer rate. It's tough to find a credit card with no balance transfer fee but most will have a $75 cap and this will work fine.

3. With the two 0% APR Credit Cards of your choosing you want to pick one to request balance transfer checks or an online balance transfer. An online balance transfer is best because you can start earning money quicker.

4. Next, you take the 0% APR Credit Card that you would like to transfer FROM and max out the limit by transferring to the other card. This will create a NEGATIVE BALANCE on the credit card that you transferred to.

5. At this point you want to request a "credit balance refund." With most credit cards this can be done online. The credit card company will then send you a check for the negative credit amount.

6. Now that you have the money you want to do one of two things. Either apply the amount to high rate loans (other credit cards, home equity loan, etc.) or put it in a high yielding savings or checking account. You can find an account paying 5% easily (see bottom).

7. The money making part works like this. You either save a year's worth of interest on the balance you applied to other loans or you're going to make 5% for the same year on the money you put into a savings account. Simply put, if you put $10,000 into a savings account at 5% you'll make $500 in interest. If you paid a balance transfer fee of $75 you still profited $425. This isn't a large sum of money but it's free money. And with access to enough credit this process could be repeated several times.

There are some words of caution in using 0% APR Credit Cards to make money. Some people like to apply the money to stocks or bonds to make (potentially) more than 5%. This is fine but keep in mind that if one payment is late the 0% APR period ends. Then you're stuck paying the normal APR (probably more than the money is earning) and the money is tied up in stocks. With a savings account is 100% liquid and can pay off the credit card if it loses the 0% APR. This involves less risk and guaranteed money.

Your Credit Card Bill - The Day After Christmas

noreply@blogger.com (Unknown) — Thu, 27 Dec 2007 17:02:00 +0000

You can always expect to face a few challenges the day after Christmas. These can range from traffic jams as you return from a family visit to the challenge of waking up in the morning and returning back to the office. All of these will last a day or so. A challenge, not as temporary, is paying off the month’s credit card bill. Now those extravagant gifts aren’t looking so smart, are they?

The Associated Press reports that Americans are falling behind on making credit card payments "at an alarming rate, sending delinquencies and defaults surging by double-digit percentages in the last year and prompting warnings of worse to come." An increasing number of credit card users are in debt and are more than 90 days late in paying off outstanding balances. Credit card delinquencies are up 26 percent over a year ago, reports the news wire service. All we can deduce from this increase is that Americans aren't afraid of high-interest debt.

So if you are looking to make the transition from the “spenders” category to the “savers”, may we suggest you skip the numerous after-Christmas sales this year?

What Does My Credit Score Mean?

noreply@blogger.com (Unknown) — Wed, 21 Nov 2007 16:01:00 +0000

Bad Credit

Bad credit is a negative rating given from the credit reporting agency usually associated with anyone whose credit score of 669 points or lower. Skipping payments for an extended period of time is the leading cause of bad credit. Whether non-payment is willful or due to financial problems, it can still result in a negative rating. However, lenders are more willing to work with individuals who contact them to inform them that they are having issues meeting their payment deadlines.

What Causes Bad Credit

Making late payment of balance frequently

Skipping payments frequently

Exceeding card limits

Declaring bankruptcy

Having no credit

Bad credit can make it very difficult for someone to take out a student, auto or home loan, secure an apartment, or participate in any number of lending programs. It can be very difficult for someone with bad credit to increase their credit rating because most credit card companies are hesitant to issue a credit card to someone with bad credit or no credit. Applying for a loan becomes a much more detailed and lengthy process, because someone with a credit score that is low is considered a “credit risk”.

Fair Credit

Fair credit is a neutral credit rating issued to anyone with a credit score of 670-699. A fair credit rating shows credit card companies and money lenders that you do a fairly decent job of making you payments on time but still occasionally have issues. If you have fair credit, a lender may require additional documentation before a loan will be approved.

What Causes Fair Credit

Occasionally making late payments of balance

Occasionally skipping payments

Having very little credit history

People with fair credit may have difficulty being approved for a credit card by some companies. Not all credit card companies or money lenders will reject an application from someone with fair credit, but difficulty may arise from trying to obtain a loan or credit card with a lower interest rate.

Good Credit

A good credit rating is applied to someone who has a credit rating of 700-729. People with good credit usually have no problem being approved for credit cards and loans with low interest rates.

What Leads to Good Credit

Making payments on time and in full

Having a fairly lengthy credit history

Disputing unfavorable inaccuracies in your credit report

People who have good credit are able to borrow more money, with more ease, at lower interest rates. Many potential employers may also look at your credit rating and history to judge your level of dependability. Having a good credit history may also help you gain employment in some situations.

Excellent Credit

People with excellent credit usually have a credit rating of 730 or higher. People with excellent credit tend to make big purchases and/or loans and pay them back in full and as promptly as possible. Several years of this type of behavior can lead to an excellent credit rating. Credit card companies and banks see you as a responsible person and consider you not to be a credit risk. People with excellent credit have the ability to obtain credit cards and loans at the lowest possible interest rates.

What Leads to Excellent Credit

Making large credit card purchases and paying them in full and on time

Having several credit cards with a “zero” balance at the end of each month

Disputing unfavorable inaccuracies in your credit report

Never having late or short credit payments

Having excellent credit can take years to achieve. Once you have achieved an excellent credit rating you may become eligible for deals and rates not available to others with lesser ratings.

To learn more about credit and find the credit cards you are eligible for, please visit Credit Card Details.

Visa IPO - $10 Billion

noreply@blogger.com (Unknown) — Mon, 12 Nov 2007 16:56:00 +0000

Visa, the largest credit and debit card payment processor in the United States is slated for an IPO in the first quarter of 2008. The IPO is estimated to be worth $10 billion, the second largest in U.S. history. The first largest came in 2000, at the height of the dot-com boom. During that time AT&T raised $10.6 billion to expand operations.

Visa's closest competitor, MasterCard, went public about a year and a half ago raising $2.4 billion (17th largest IPO in U.S. history). Over that time MasterCard's stock climbed five-fold from its initial offering of $39 per share to $193 as of last week's closing (11/9/2007).

The demand for Visa stock is expected to be high since they have the largest credit card processing network in the U.S. Last year they processed 44 billion transactions worth $3.2 trillion. MasterCard was second by processing 23.4 billion transactions worth $1.9 trillion.

Buying Christmas Presents with Credit Card Rewards

noreply@blogger.com (Unknown) — Mon, 12 Nov 2007 15:00:00 +0000

It's almost that time of year again: Christmas shopping time. You know, where you navigate through overcrowded malls, wait in ridiculously long lines and spend way more than you said you would. This Christmas why not use a little strategy when it comes to Christmas shopping. Credit card companies are always eager to unload their newest rewards card to consumers in hopes that they'll rack up enough in purchases to outweigh what it will cost in rewards. Now before you curse credit card companies for contributing to the country's debt crisis keep one thing in mind: credit card companies still make money even if you don't pay a dime in interest. Every time a credit card is used for a transaction the credit card company charges the merchant a percentage of that transaction as a "transaction fee." In addition, credit card companies partner up with other retailers to offer rewards so they don't incur the entire cost (if any) to issue those rewards. So in essence, you get rewards and don't pay interest (provided you pay the balance in full), the credit card company gets money in transaction fees and the retail company receives money from the partnership agreement with the credit card company. Everybody wins!

So let's get down to business. In order to maximize the reward points that you can put toward Christmas presents you'll need to find a credit card that partners with big name retailers like Target. Big name retailers offer multiple bonus points per dollar during the holiday season (Target usually offers 9 points per dollar). This allows you to maximize the amount of points you receive so you can get more free Christmas presents. On top of that, most credit cards offer bonus points (usually valued at $50) the very first time you make a purchase.

So if you plan your Christmas shopping right you will have 1) planned a budget and saved enough cash to accomodate that budget, 2) found a credit card that offers rewards and is partnered with a big name retailer, 3) purchased MOST of your Christmas presents with the credit card, 4) used the rewards points to do the remainder of your Christmas shopping and 5) paid the credit card balance in full when the bill came in. All said and done you will have saved yourself a decent chunk of money that you can put towards a lavish Christmas dinner or sock it away under your mattress to plan for your next vacation. Being credit card savvy really can take you a long way.

To Apply Online for Rewards Credit Cards visit www.CreditCardSchool.net or www.CreditCardDetails.com.

What Was the First Brand of Credit Card?

noreply@blogger.com (Unknown) — Fri, 09 Nov 2007 14:47:00 +0000

If you said Diner's Club you're 100% right! Anything else is just absurd. Diner's Club was started in 1950 as a means for salesman to be able to conduct client lunches and not have to shuffle for cash. The first Diner's Club Cards were introduced by Frank McNamara, Ralph Schneider and Casey Taylor. They were given to 200 of McNamara's associates and accepted at 14 New York City restaurants.

As the first branded credit card, Diners Club didn't actually extend credit to its cardholders. The cards were issued to society's upper echelon and monthly balances were expected to be paid in full. Before long, however, two more credit card companies entered the scence and forced Diners Club to become more than just a means of paying for client lunches. American Express and Carte Blanche quickly penetrated this unchartered market with cards of their own. To compete Diners Club expanded internationally.

Today Diners Club is co-branded with MasterCard. It's rare that someone will show you their new Diners Club Card. It's either MasterCard, Visa, American Express or Discover. It's important to know how it all started though. Credit must be paid where credit is issued. Thank you Diners Club for issuing the first brand of credit card that increased the number of ways that we can finance life!

For more credit card info. and online applications visit Credit Card Details.com.

Selecting The Right Credit Card

noreply@blogger.com (Unknown) — Wed, 31 Oct 2007 17:58:00 +0000

When it comes to selecting the right credit card, there are lots of things to keep in mind. Not only are you looking at interest rates, it's also a good idea to consider what type of credit card user you are, what financial objectives you have and how disciplined you are at paying bills on time. Below are some suggestions you should read before applying for your next credit card.

User Profile

Credit card companies advertise credit cards in categories for a reason: to attract users within that category. Think about what you will be using the credit card for and what type of credit card holder category you fit into. If you're a college student chances are high that you'll be approved if you apply for a student credit card. If you're using your credit card for business purchases you want to look for a business credit card. The best way to search for credit cards by category is by visiting a website like Credit Card Details.com or Credit Card School.net.

Credit Card Features

Credit card companies offer many different credit cards with many different features. It's a good idea to write down all of the things you hope to get out of credit card ownership. Are you transferring existing balances to save on interest? Are you paying off the credit card every month and accumulating rewards? Your financial objectives will determine what credit card features you should be looking for. Popular features include introductory 0% APR periods on purchases and/or balance transfers, cash back, rewards and much more.

Interest Rates

Once you've selected the proper credit card category and the features that you need you'll want to compare interest rates. The object is to have the lowest interest rate possible in conjunction with the most amount of features you'd like your credit card to have. It's best to give everything a rating in terms of priority. Is it more important to have a low rate or cash back? If you're planning on paying off the entire balance every month then you're better off having a high cash reward than a low interest rate (you won't be paying any interest if you pay your entire credit card balance every month).

Fees

The next thing to look at are fees associated with the credit card. These can include annual membership fees, balance transfer fees, cash advance fees, etc. It's important to be aware of all fees when applying for a credit card because sometimes fees outweigh other benefits you may be getting from your credit card. For example, if you're transferring a balance from another credit card to save money on interest charges but have to pay a high balance transfer fee you may not be saving as much as you originally thought. The same applies for rewards programs. If you're not receiving enough rewards to outweigh the annual membership fee then it's not worth carrying the card. It's important to determine the value of all features, rates and fees in order to make an educated decision before applying for a credit card.

Default APRs and Fees

Late payments and exceeded credit limits result in hefty fees and hiked interest rates. It's best to avoid this but if you're the type who is a little lax when it comes to paying bills on time, you'll want to choose a credit card with a little forgiveness (there aren't many out there). Some credit card companies allow one default before they charge additional fees and APRs. If you think this may be a reoccuring problem you may want to reconsider applying for a credit card all together or finding a credit card with low default fees and APRs (there aren't many of these either).

Once you've determined the category of credit cards and weighed out what you're looking for in features and interest rates, you're ready to begin your credit card search. It's best to visit a website that allows you to read reviews and compare credit cards. Once you find a credit card you like, you can apply online and receive a decision quickly (sometimes in less than a minute).

Try Credit Card Details.com or Credit Card School.net.

Does Paying in Full Hurt Your Credit Score?

noreply@blogger.com (Unknown) — Mon, 29 Oct 2007 14:20:00 +0000

I recently had someone ask me if it hurts their credit when they pay their credit card balance in full every month. "But the credit card companies don't make money, so they penalize you by hurting your credit," this person claimed.

First of all, credit cards DO make money even if you pay your credit card balance in full every month. Not only do credit card companies make money by extending consumers credit they also make money as transaction processors for vendors. So when you use your credit card at a restaurant or retail location that establishment has to pay a certain percentage of that transaction to the credit card company. So even if you pay your balance in full the credit card company is still making money.

Get an Equifax 3-in-1 Credit Report Now!

Then there's your credit report. Credit card companies can only pass on the facts to the credit reporting agencies. Simply put, you fit into one of two categories: "Pay as Agreed" or "Doesn't Pay as Agreed." Then there are 24 numbers that describe you as a borrower. Each of these represents the number of months a payment went late during the last 2 years. All 0's means you pay on time. Anything else is not good. There is no column that says,"We don't make money on this borrower." So, essentially, you can't be penalized on your credit score if you are "Pay as Agreed" and don't pay late.

In conclusion, keep paying your credit card bill as you told the credit card companies you would: On Time. Don't worry if you are paying in full because it is not affecting your credit negatively. If fact, you are building good credit and will be rewarded for it. Before too long you will see your credit card company increasing the limits on your credit card and sending you 0% APR offers on some of the best credit cards out there (like my favorite, the Blue from American Express Card). If you're still concerned review your credit report every 6 months to a year to keep an eye on your credit score.

Bad Credit - What to Do

noreply@blogger.com (Unknown) — Wed, 24 Oct 2007 20:47:00 +0000

Are you someone who is having trouble getting approved for a credit card because of a poor credit rating? Did you know that every time you apply for credit your score decreases? Not to worry. All you have to do is make a commitment TODAY to work towards improving your credit score. Then follow the steps below to climb out of the "bad credit pit."

Step 1: Assuming your credit is beyond the point of being approved for most credit cards, apply for a secured credit card. You're guaranteed to be approved because they work by prepaying your balance. Personally, I like the New Millennium Bank Platinum Visa®/MasterCard®. It reports to all three credit bureaus and comes with some interesting benefits.

Step 2: After about six months of faithfully using your New Millennium Bank Platinum Visa®/MasterCard® start applying for unsecured credit cards that offer low (or even 0%) balance transfers. You're going to want to ask for the highest limit possible because you're going to transfer most (if not all) of your debt bearing the highest interest rate. For this I like the Chase Platinum Visa® because it has a 0% balance transfer APR for 12 months and a low rate after that.

Step 3: Keep paying as much as you can each month. Also, do as many 0% balance transfers as is necessary. If you get to the end of the 0% period, transfer it again. You may have to pay a fee but most cards max out the fee at $75, which is most likely less than the interest you'll pay over the course of that year.

For a list of good balance transfer credit cards visit: Credit Card School.net

Step 4: Look high and low for your credit card debt. Bet you can't find it, can you?

Choosing the Right Credit Card

noreply@blogger.com (Unknown) — Mon, 22 Oct 2007 14:30:00 +0000

When it comes to choosing the right credit card there are several things to keep in mind. What are your using your card for? How will you manage your debt? What fine print details should be paid special attention? Owning a credit card is a big responsibility and just like other financial matters there should be a plan in place to mitigate all of the risks associated with it.

What Will You Use Your Credit Card For?

The type of credit card you carry should be determined, in large part, by what you need it for. If your intent is to transfer an existing balance to a credit card with a lower APR then it's a good idea to find a balance transfer credit card with a low APR. On the other hand, if you're looking for a card to use for new purchases you'd probably be better off with a rewards credit card that offers cash back, airline miles or retail rewards. If you're using a credit card to establish or improve credit it might be a good idea to start out with a prepaid or secured credit card then move to an unsecured credit card in 6 months to a year. Whichever type of credit card you decide to carry make sure it's in line with your financial objectives.

How Will You Manage Your Credit Card Debt?

There are two basic types of credit card users: those who pay off their balance in full and those who don't. Before you choose a credit card you need to decide which category you fall in. If you're the type of credit card user that pays off their balance in full every month chances are you want a rewards credit card. The best rewards credit cards tend to have higher interest rates but that doesn't matter if the balance is paid in full, no interest will accrue anyways. If you're the type of credit card user that carries a balance from month to month then a rewards credit card won't do you much good (the interest you pay will outweigh any reward you receive). As a balance carrier you are much better off with a card that has as low an APR as possible. This will help in keeping up with payments and the interest that accrues.

What to Look for in the Fine Print

You've probably heard it a million times. "Read the fine print." It's true, always read the fine print. However, knowing what you're reading (or looking for) is also important.

First, look at the APR section of the credit card agreement. You're looking for the terms "Standard APR", "Balance Transfer APR", "Cash Advance APR" and Default APR.

The "Standard APR" is the APR that will be assessed if you carry a balance. This can either be fixed or variable. If you're the type of credit card user to carry a balance you're going to want to find a low, fixed standard APR.

The "Balance Transfer APR" refers to the interest you're going to pay when you transfer a balance from another credit card. If you decided that you are applying for a credit card to transfer a balance then you want this APR to be as low as possible. Otherwise, it's not as important as other credit card features.

The "Cash Advance APR" is the interest you are going to pay if you withdraw cash from your credit card. This APR is usually very high and is assessed immediately (there is no grace period for cash withdrawals from a credit card). Thus, it's never a good idea to take cash out of a credit card.

The "Default APR" is what your "Standard APR" changes to if you make late payments or go over your credit limit. This is usually very high. If you're the type of credit card user that is irresponsible with making payments then it's probably a good idea to not get a credit card.

Second, you'll want to look at the grace period. Twenty five days is standard but it's a good idea to know how long you have to pay off your balance each month before interest is assessed.

Last, you'll need to know what types of fees your credit card charges for the various services it provides. These include "Annual Fees", "Minimum Finance Charges", "Balance Transfer Fees", "Cash Advance Fees", "Late Fees" and "Overlimit Fees."

An "Annual Fee" is usually charged by credit cards that have top rewards like airline miles, hotel stays or vacation packages of some sort. It's important to know how much you'll be paying in annual fees because this is charged even if you don't use the credit card.

A "Minimum Finance Charge" seems like it should be considered interest but it's a flat fee. It's common for credit cards to assess a minimum finance charge of $0.50. This means that you'll pay at least $0.50 in interest. If the interest you owe is more than $0.50 then you'll pay that amount and the $0.50 becomes moot.

A "Balance Transfer Fee" is what is charged when you transfer a balance. This is in addition to the "Balance Transfer APR" so it's important to know this if you're planning on transferring a balance. Often, credit card companies will advertise a 0% balance transfer APR but charge a high fee. Always know the dollar amount you are going to be paying for transferring a balance and make sure that it makes financial sense.

A "Cash Advance Fee" is a fee you pay for withdrawing cash from your credit card. This is usually high and paid in addition to the "Cash Advance APR." Withdrawing cash from a credit card is very expensive and should be avoided all together.

A "Late Fee" is just that, a fee that is assessed when you make a late payment. This is in addition to the "Default APR" that is added to your balance. Thus, it's very important to always pay your credit card bill on time.

An "Over Limit Fee" is a fee that you must pay when your credit card exceeds its limit. This is in addition to the "Default APR" as well. Therefore, it's just as important to keep your credit card within the credit limit as it is to make payments on time.

In conclusion, to choose the right credit card it's important to know your financial objectives, the type of credit card user you are and any scenarios that can be forecasted in relation to details on the credit card agreement (defaults, balance transfers, etc.).