Tips of Best Credit Cards

Title: A problem called ‘Credit Card Debt‘

2011-11-21T12:27:00.001+07:00

Credit cards are no more a luxury, they are almost a necessity. So, you would imagine a lot of people going for credit cards. In fact, a lot of people posses more than one credit cards. So, the credit card industry is growing by leaps and bounds. However, the credit card industry and credit card holders are posed with a big problem called ‘Credit Card Debt’. In order to understand what ‘credit card debt’ actually means, we need to understand the workflow associated with the use of credit cards as such.

Credit cards, as the name suggests, are cards on which you can get credit i.e. make borrowings (your credit card debt). Your credit card is a representative of the credit account that you hold with the credit card supplier. Whatever payments you make using your credit card are actually your borrowings that contribute towards your credit card debt. Your total credit card debt is the total amount you owe credit card supplier. You must settle your credit card debt on a monthly basis. So, you receive a monthly statement or your credit card bill which shows your total credit card debt. You must pay off your credit card debt by the payment due date failing which you will incur late fee and interest charges. However, you have the option of making a partial (minimum) payment too, in which case you don’t incur late fee but just the interest charges on your credit card debt. If you don’t pay off your credit card debt in full, the interest charges too get added to it. So your credit card debt keeps on increasing, more so because the interest rates on credit card debt are generally higher than the interest rates on other kind of loans/borrowings. Further, the interest charges add on to your credit card debt each month to form the new balance or the new credit card debt amount. If you continue making partial payments (or no payments) the interest charges are calculated afresh on the new credit card debt. So you end up paying interest on the last month’s interest too. Thus your credit card debt accumulates rapidly and soon you find that what was once a relatively small credit card debt has ballooned into a big amount which you find almost impossible to pay. Moreover, if you don’t still control your spending habits, your credit card debt rises even faster. This is how the vicious circle of credit card debt works.

Title: Are You Earning big time reward points from Australian Credit Cards?

2011-11-21T08:24:00.002+07:00

As more and more people turn to using credit cards as the standard mode of payment as opposed to the traditional cash or cheque options, credit card companies are stepping over each other to capture a significant share of this part of the money market. While earlier , one had to pay hefty fees for owning a credit card, an yearly one for using it , and then of course the high interest that had to be paid up in case of late payments, today, many of these have been scrapped as credit card companies bend over backwards to acquire and retain their customers. One of the main features highlighting these changes is the emergence of Reward Credit Cards in the market. Earning rewards from credit cards has become the norm of the day as almost 60 cash back on purchases but this goes up to 5% depending upon scheme to scheme. The cash back is generally paid off at the end of the year in the form of a cheque. This is one of the most preferred ways of earning rewards from credit cards.

Reward Schemes: The consumer can accumulate points based on credit card usage. The more the usage, the more the points which can be accumulated and then used for earning rewards from the credit card. Most companies offer rewards in the form of redeemable gift or discount coupons of certain stores, entertainment coupons for meals or shows or free or discounted gasoline at select stations. Earning rewards from credit cards is the most popular rewards scheme.

Flyer Miles Schemes: Getting flyer miles is another method of earning rewards from credit cards. These schemes let the user accumulate flyer miles which become redeemable for air tickets once a certain amount of points /flyer miles are accumulated. Flyer miles are rewarded based on amount spent through the credit card over a certain period of time. This is the best credit card reward for business men who need to travel frequently, since it is only large spenders who can accumulate enough points to get any significant flyer miles.

While earning rewards from credit cards seems very tempting at first, some points do need to be kept in mind for getting the best out of credit card rewards. First of all, make sure that the card does not carry an annual fee. Secondly, earning rewards from credit cards are profitable only for people who do not let any interest charges accumulate on their cards by paying off their monthly balances on time as interest rates on these cards are higher than average.

Credit Card Debt after Divorce

2011-11-20T13:21:00.002+07:00

It is true that marriages are made in heaven. But everything falls flat on their butt once a marriage hits the rocks. Every bit of reconciliation fails and divorce seems to be the only way out. If everything – both financial and other aspects - is settled before parting ways, then we can say - all is well that ends well. But if the separation is not so amicable and there is some sourness left somewhere in terms of an unsettled financial debt, things can turn both ugly and complex.

One such difficult situation arises when one of the partners incur a credit card debt, and the credit card debt after divorce assumes the form of a Damocles sword in the form of collection people, constantly nagging either of the ex-spouses to settle the due. The situation is a bit tricky here because whether the person who incurred the debt or the other ex-spouse has the real responsibility of making the payment is still not defined clearly by the law. The situation gets more complex when it comes to joint accounts. But let us see the credit card debt after divorce now.

Credit Card debt after divorce – mostly in joint credit cards – is generally seen by the creditors as the joint responsibility of the couple. Actually the spouse who didn’t incur the amount is not liable to pay, but the credit card company may seek payment from both the parties as they care only about the money due to them. What settlement had been reached after divorce is of little interest to these people.

One may feel that closing out credit card accounts (joint) is a solution to all these problems. If you have a responsible spouse, well this will work. But the fact is that the account does not cancel itself until somebody makes the payment. Also, after divorce, it is legally not practical to divide the debts. Hence these are some practical solution, from best to worst.

- Sell any joint asset (say, home) and pay the debt and close the account. It is a classic example of killing two birds with a stone.

- Separate credit cards can be a better option in such a situation. After applying, get the dues transferred into individual cards, divided according to your own logic or the way you spent.

- In this regard, if one of the spouses is not qualified to get a card, get one of the relatives to cosign the card before transferring the share of balance.

But, rather than being through this ordeal, the best option is to get yourself everything settled before divorce. It is always a pain to go behind all these joint issues when you are about to start a new life. Take Care!

Credit Card Debt

2011-11-20T08:18:00.013+07:00

If you can't sleep at night because of credit card debt worries, you're not alone. Many people get in over their heads charging things they think they can't live without.

You don't need to cut up all of your credit cards. Save your major bank cards, but stop charging needless temptations on them. You need a couple of major bank credit cards to maintain or build strong credit scores.

The credit cards you should cut up, department store credit cards, cost you too much in interest. Plus, these types of credit cards lower your credit scores. When mortgage lenders compute your credit worthiness for real estate financing, they deduct points for unfavorable department store credit lines.

Here are a few things you shouldn't charge on your credit cards:

1. Gasoline. Why charge something that gets burned up before you pay for it? Think about how much per gallon you pay when you pay interest.

2. Food. Many people use their credit cards to purchase groceries that they pay for over the next year or longer. Also, because it's so easy to pay with plastic, they buy extravagant and unneeded items. What's more important--junk food or a good night's sleep?

3. Clothes. Think before you buy clothes on credit. Don't charge clothes on your credit cards unless you can pay them off right away. Children's clothes wear out or they outgrow them before you've paid off the credit card debt.

4. Utilities. Because it's so easy to pay utilities with an automatic credit card charge, many people end up paying for their air conditioning when they're heating their homes. Put your automatic utility payments on your debit card instead.

5. Automatic services. Examine your next credit card statement. Total up items like cable or satellite TV, Internet services, an other automatic monthly charges. Can you pay these charges off each month or are you getting behind?

Make your life easier. Stop charging consumables and monitor your credit card debt. You'll improve your credit scores and sleep well.

Copyright Jeanette J. Fisher

Pertinent Information About Low Interest Credit Cards

2011-11-19T10:00:00.002+07:00

The following article includes pertinent information about low interest credit cards. If you don't have accurate details regarding low Interest credit card, then you might make a bad choice on the subject. Don't let that happen: keep reading.

If you're not using a low interest credit card, ask yourself why? This credit card have numerous advantages such as the 0% Intro APR (annual percentage rate) that enables the consumer to save on interest expense. Customers who will be using their credit card to make purchases and take cash advance may be better off with a credit card that offers a low fixed interest rate instead of the 0% intro rate. Knowing what the interest rate will be after the promotional period ends is very important to avoid interest rate surprise. The interest rate customers receive after the 0% promotional period usually depends on their FICO or credit score. Customers who have decided to go with the 0% introductory credit card can use the savings derived from paying no interest to pay down the principal and ultimately pay the loan off much sooner.

The main purpose of low interest credit cards is to transfer balance from high interest rate credit cards to interest free cards to save money on interest expense. They are also been used to make large purchases and important to customers who are planning to consolidate credit card loans and carry a balance each month. Banks charge a fee for balance transfers. Since this fee varies from bank to bank, customers should compare offers to find out which banks charge the lowest fees. Customers with excellent credit can request to have the transfer fee waived.

Many banks and credit card companies advertise low interest credit cards that have many features similar to a standard credit card to entice new customers to apply. Similar features may be cash back, rewards, bonus miles, no annual fee and more. Therefore, comparing credit card features is very important because it allows you to find the card that meets your lifestyle and one that will save the most money on interest expense. Paying your entire outstanding credit card balance on time each billing cycle is the only way to avoid paying interest expense. This may not be financially feasible for many customers due to the fact that they do not have the available funds. Therefore, by using a low interest credit card to make purchases and maintaining a credit card balance will be the next best choice to save money on interest expense.

The amount of interest accrue on your account depends on the interest rate you receive. Individuals with poor credit pay very high finance charges and miscellaneous fees. This situation keeps them indebted to the credit card companies if no action is taken to improve credit score. However, individuals with excellent credit can apply and get approval for a low interest credit card and avoid the burdensome situation of high interest rates and fees. Credit card companies have the option to change the interest rate on your credit card for various reasons such as making late payment, applying for too much credit, making late payments on different accounts or they can change it without any reason at all. Therefore, understanding credit and how to use it wisely is very important.

Many individuals use a low interest credit card to consolidate credit card debts to save money on interest expense. Consolidation is the process of combining several loans into one loan with a better interest rate to lower your monthly payment. Because consolidation will extend the term of your loan it may increase the total amount of interest payment paid over the life of the loan. Debt consolidation is an excellent opportunity to keep you out of bankruptcy and get your finances back on track. Credit card consolidation will simplify your life by making monthly payments to one creditor instead of multiple creditors.

Learning about grace period as it relates to your specific credit card is very important. The grace period is between 20 to 25 days. You have this free period to pay no interest if your payment is credited to your account during that time frame and your account carries no balance. Customer’s monthly payment must be received by the creditor during this time frame. Learning about grace period as it relates to your specific credit card is very important. Without a grace period in your credit card agreement you will immediately pay finance charges on new purchases regardless of whether you paid your previous month's bill in full.

The internet is the best source to get information about various credit cards. Customers can compare credit card offers and submit an online credit card application for online approval. Customers with excellent credit can get instant online credit card approval within a few minutes of filling out their online credit card application. Once approved, the customer will receive the credit card in the mail within a few days. This is the fastest and most convenient way to obtain a credit card. Customers should make sure the credit card features fits their lifestyle before submitting an application.

Using your low interest credit card to make purchases and take cash advance may result in paying a very high rate of interest. This is because some low interest credit cards will offer the 0% intro rate for only balance transfers. Therefore, it is very important to read the fine print to know what transactions will be approved for no interest, low interest or high interest. Not knowing pertinent information about your credit card will defeat the purpose of trying to pay less money for interest expense and getting out of debt.

Title: Credit Card Reports Questions And Answers

2011-11-19T08:15:00.001+07:00

The Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of the nation's consumer reporting companies. The Federal Trade Commission (FTC) enforces the FCRA with respect to consumer reporting companies. Recent amendments to the FCRA expand consumer rights and place additional requirements on consumer reporting companies. Businesses that provide information about consumers to consumer reporting companies and businesses that use credit reports also have new responsibilities under the law.

Here are some questions consumers have asked the FTC about consumer reports and consumer reporting companies, and the answers.

Q. Do I have a right to know what's in my report?
A. You have the right to know what's in your report, but you have to ask for the information. The consumer reporting company must tell you everything in your report, and give you a list of everyone who has requested your report within the past year - or the past two years if the requests were related to employment.

Q. What type of information do consumer reporting companies collect and sell?
A. Consumer reporting companies collect and sell four basic types of information:

    * Identification and employment information: Your name, birth date, Social Security number, employer, and spouse's name are noted routinely. The consumer reporting company also may provide information about your employment history, home ownership, income, and previous address, if a creditor asks.
    * Payment history: Your accounts with different creditors are listed, showing how much credit has been extended and whether you've paid on time. Related events, such as the referral of an overdue account to a collection agency, also may be noted.
    * Inquiries: Consumer reporting companies must maintain a record of all creditors who have asked for your credit history within the past year, and a record of individuals or businesses that have asked for your credit history for employment purposes for the past two years.
    * Public record information: Events that are a matter of public record, such as bankruptcies, foreclosures, or tax liens, may appear in your report.

Q. Is there a charge for my report?
A. Under the Free File Disclosure Rule of the Fair and Accurate Credit Transactions Act (FACT Act), each of the nationwide consumer reporting companies — Equifax, Experian, and TransUnion — is required to provide you with a free copy of your credit report once every 12 months, if you ask for it.

Q: How do I order my free report?
A: The three nationwide consumer reporting companies are using one website, one toll-free telephone number, and one mailing address for consumers to order their free annual report. To order, call 1-877-322-8228, or complete the Annual Credit Report Request Form and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281. Do not contact the three nationwide consumer reporting companies individually. You may order your free annual reports from each of the consumer reporting companies at the same time, or you can order from only one or two. The law allows you to order one free copy from each of the nationwide consumer reporting companies every 12 months.

Q: What information do I have to provide to get my free report?
A: You need to provide your name, address, Social Security number, and date of birth. If you have moved in the last two years, you may have to provide your previous address. To maintain the security of your file, each nationwide consumer reporting company may ask you for some information that only you would know, like the amount of your monthly mortgage payment. Each company may ask you for different information because the information each has in your file may come from different sources.

Q: Are there other situations where I might be eligible for a free report?
A: Under federal law, you're entitled to a free report if a company takes adverse action against you, such as denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You're also entitled to one free report a year if you're unemployed and plan to look for a job within 60 days; if you're on welfare; or if your report is inaccurate because of fraud, including identity theft. Otherwise, any of the three consumer reporting companies may charge you up to $9.50 for another copy of your report within a 12-month period.

How To Deal With Old Credit Card Accounts

2011-11-19T01:10:00.000+07:00

So, you’ve been rummaging through your belongings and found a credit card that you signed up for in college. That pizza that they gave you for signing up was pretty good, but it is long gone. Now, your stuck with this card and wondering if you should just cut it up and cancel it or keep it around.

It may not seem like a big decision, but how you handle this and other old credit card accounts can impact your credit score. It may seem foolish, but canceling that account can actually hurt your score. Let’s take a look at how to properly handle old credit card accounts.

View Your Credit Report

You are entitled to a free credit report each year. Visit annualcreditreport.com to do so, as this is the only site that is officially authorized to give free credit reports. Others may do so, but many come with strings attached.

Check the report for credit cards that you may have forgotten about and anything else that you were unaware of. For example, if you have 2 cards in your wallet and 8 cards on your report, you may want to address this situation.
Cancel (Some) Unused Credit Cards

If you have an unused credit card or two out there on your credit report, contact the card provider to cancel all but one of them. If you have a lot of unused cards out there, it is best to cancel them gradually. Doing so over time will help avoid negative attention from creditors.

Even if your unused cards still have a balance, you can cancel them. Ask the provider to close the account to new purchases. This will prevent the temptation to spend more money and will also prevent identity theft.

It is important to keep a few older cards active. While this may seem like nonsense, cancelling an old card may shorten your credit history and adversely affect your credit score.

Finally, after you cancel the cards, check your credit report at the usual time (for example, yearly) to confirm that they have been cancelled.
Things to Avoid

It may be tempting to just cut up your old credit cards and throw them away. However, doing so will not close the account. You should contact the provider to cancel the account.

Also, don’t ignore inaccuracies on your credit report. If you do not agree something or have no clue where that $5,000 balance on your 10 year old card came from, contact the card provider until you are satisfied with the issue. Someone could have stolen your identity or there could have been a simple mistake. Either way, it’s best to investigate it.

After you get your credit card situation cleaned up, be sure to track your card usage in the future. It is rarely a good idea to have old cards out there that you have forgotten about. An identity thief could charge a load of money in your name and leave you holding the bag. It’s best to tie up all loose ends and keep your credit card situation under control.
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Credit Card Issuers Dropping Some Fees

2011-11-19T00:57:00.000+07:00

Big banks with their significant fees and high interest rates have become the villain of both Congress and consumers for the past few years. In 2009, politicians made major revisions in credit card practices with the CARD Act. More recently, angry consumers protested the monthly debit card fees with a “Bank Transfer Day”, causing banks to rescind those fees.

Now, some banks seem to be trying to polish their tarnished image by dropping fees and increasing rewards.

Here are some changes that credit card issuers have made in 2011 that have been good for cardholders.

Eliminating the foreign transaction fee

Last week, Discover dropped its 2% foreign transaction fee. Earlier this year, Chase dropped its 3% foreign transaction fee from their Sapphire Preferred. Citi eliminated its 3% fee from the ThankYou Premier and ThankYou Prestige cards. Avoiding the foreign transaction fee is a significant savings for travelers, but also for consumers who make a purchase from another country or even a purchase that is routed through a foreign bank.

Eliminating the balance transfer fee
Chase is now offering a new version of the Chase Slate card that does not charge a 3% fee for balances transferred during the first 30 days that the card is open.

Increasing rewards
After the credit crash in 2008, credit card issuers cut back on the rewards offered to new cardholders. But in 2011, nearly every issuer has ramped up the rewards trying to attract new customers with good or excellent credit scores. Rewards are used to compete for new cardholders, as well as to encourage credit card spending and regular usage.

Earlier in the year, there were extremely attractive airline rewards. In March, Capital One created a buzz with the heavily promoted “Match My Miles Challenge” where consumers could earn up to 100,000 miles by switching and spending on the Venture Card. Chase followed with a promotion on the British Airways card where cardholders could receive an extra 100,000 miles by becoming a customer and reaching a certain spending level. Issuers have also dangled generous cash back bonuses in front of potential customers. The Chase Freedom card offers a $200 bonus once a new cardholder spends $500 in the first 90 days. Similarly, Capital One Cash pays $100 for a new customer that spends $500 in the first three months.

Provided by LowCards.com

Is it Safe to Go Back to the Citibank? Weighing in on Citibank’s Turmoil

2011-11-19T00:52:00.000+07:00

Citibank has been in the news a lot lately, and not for the right reasons. In 2009, the company closed thousands of active credit card accounts without warning because it was losing money on its rewards system.

Then, exactly two years later, Citibank had 30 Occupy Wall Street protesters arrested for trying to close out their own accounts in protest of the company’s unfair practices. Most notably, though, the financial giant’s credit card division has been reeling ever since a massive database hack over the summer compromised the account information of 360,000 customers, resulting in nearly $3 million in fraudulent charges.

Following the incident, the Wall Street Journal reported that Citibank intended to close its private-label card division altogether. For many, it seemed like the era of “too-big-to-fail” credit card lending was finally coming to an end.

Private-label credit cards are not the same as standard credit cards. Also known as retailer credit cards, private label cards are issued through Citibank by a retail affiliate. They typically tend to attract a lot of “bad” credit because they only require a fair credit rating to obtain, they carry high APRs and they can only be used at the issuing retailer. In other words, these are not the credit cards that most consumers apply for.

In the end, after reporting higher-than-expected quarterly profits, Citibank decided to keep the entire private-label division on life support rather than burying it. This isn’t to say that the corporation has ignored all the turmoil surrounding its credit cards. Following its database compromise, Citibank came up with three new credit card offers to woo back wary consumers. How you feel about them is up to you to decide, but here’s our take:

Citi Simplicity Card. A totally new card issued by Citibank this past July, the Simplicity card is known for the three major perks it gives cardholders: no late fees, no penalties and a single interest rate for all purchases. According to CitiCard CEO Jud Linville, the card is “for those who are juggling busy schedules and want a credit card with simple terms.” Considering that the card has no rewards system to speak of, it seems most suitable as a way for consumers with a history of bad credit to begin rebuilding their score while they work on developing responsible habits.

Citi Dividend World MasterCard. Just in time for the holidays, Citibank is also offering a $200 bonus to new cardholders who spend $500 in the first three months after opening a Dividend World card account. The straight-cash bonus is currently the market’s largest, and the fact that the card gets you 5% cash back on groceries, gas and other purchases until January 1st doesn’t hurt, either. Once the promotional period expires, though, the bonuses for using the card drop to a meager and universal 1%.

Citi ThankYou(SM) Preferred Rewards Card. With Citibank’s “big spender” offer, spending $2,000 on Citi’s ThankYou card within three months of opening the account will net you $250 in gift cards. Unlike the Dividend World card, the ThankYou card starts out with a flat one-point-per-dollar bonus rate, and it also rewards cardholders with a yearly bonus.

Citibank’s new line of credit cards are a real paradox. While they certainly aren’t the best pieces of plastic on the market – especially considering how good the company’s rewards program used to be in 2008 – their signing bonuses are shoulders above the competition. Additionally, the Citi Simplicity card might be just the tool many consumers need to rebuild their credit score after Citibank ruined it. To decide if any of these cards are right for you, compare them with the rewards systems and interest rates of their competitors. In the end, the decision is up to you.

For more details please visit: http://www.creditcardassist.com/blog/is-it-safe-to-go-back-to-the-citi-weighing-in-on-citibanks-turmoil-14539/#more-14539

Six Rules of Rewards Credit Card Power Users

2011-11-19T00:41:00.000+07:00

Play your rewards cards right and they can lead to enviable vacations, luxury gifts or cold hard cash. Play them wrong and they can cost you. Maximizing your rewards credit cards boils down to understanding how your card works and minding the pitfalls, say the experts. Here are six strategies to help you get the most out of your rewards cards.

Pay your balance every month

According to Bethany and Scott Palmer, authors of "First Comes Love, Then Comes Money," having a rewards card may not make sense if you have to pay more for it. Even carrying a balance for just one month on a rewards card with a high annual fee and APR could negate the card's rewards.
Scott Palmer says that "if you find that you're paying $300 to $400 in fees [on a travel rewards card] and you see that an average flight is the same price, you might be shooting yourself in the foot."
There are deals in the rewards card field, but you'll have to shop around a bit to find them. The Escape by Discover Card and the Citi Forward Card have variable APRs starting at 10.99% and 12.99% respectively. The Palmers say that consumers can dodge the pricey APR bullet by paying their bills in full and on time.
Find the hidden fees
In addition to annual fees, penalties for late payments and fees for cash withdrawals, you may also be on the hook for taxes, baggage fees and miscellaneous costs when you redeem rewards.
"British Airways charges fuel surcharges on award flights which can be as much as $500 to $600," says Tim Winship, editor-at-large for SmarterTravel.com. "That's quite shocking to a lot of people."
Winship adds that taxes and fees on most award tickets with U.S. airlines are $50 or less. With other types of rewards credit cards, you can incur customer service fees, shipping costs or processing fees that add up fast. Calling your card issuer and asking what it costs to redeem your rewards can help you decide if your rewards card is truly paying off.
Know the true cost

The Citi Dividend World MasterCard offers $200 cash back. The Chase Sapphire Preferred card comes with 50,000 bonus rewards points. The Marriott Rewards Visa Signature Card comes with two free hotel stays. They all come with a catch.
Thomas Fox, community outreach director for Cambridge Credit Counseling Corporation in Agawam, Mass., says that incentive cards frequently come with annual fees and require consumers to charge a certain amount or make specific types of purchases to activate the reward.
"If there's an annual fee [on the card] and you have to spend $20,000 to get a $100 gift card, is it worth it?," asks Fox.
To maximize rewards, Fox says to carefully read the card's terms, then evaluate whether the rewards program makes sense for your buying habits.
Know your limits
You'll have to spend to get rewards, but you'll also have to abide by your card's limitations. Blackout dates, maximum rewards caps and restrictions on where and when rewards can be used abound in the world of incentive cards.
Winship says that travel rewards cards, in particular, are riddled by blackout dates. "That situation is worse today than it's ever been because the airlines are flying fuller than they ever have in the past," he says. "The availability of award seats is more constrained than ever."
Knowing your card and planning ahead can help you maneuver around your card's limitations and make the most of your rewards.
Stick to your budget

With rewards ranging from hockey tickets to cruises, those cards practically beg you to spend. Even consumers with cash back cards tend to spend more once they have a rewards card than they did before. Research from the Federal Reserve Bank of Chicago shows that when consumers were offered a $25 cash back reward, spending and debt rose by $79 to $191 per month.
Keep overspending in check by tracking your purchases and having a rewards goal in mind, says David Jones, president of the Association of Independent Consumer Credit Counseling Agencies.
"[Consumers] should try to visualize what that goal is, write it down and work that card for that goal, not just spend blindly and be thrilled that they have 10,000 miles," explains Jones.
Keeping one eye on your debt and the other on a specific rewards can help you stay fiscally focused and avoid big credit card bills.
Stay on the bank's good side

Credit card companies legally have the right to modify or cancel their rewards programs at any time. They can also choose who stays in the program.
"With a rewards card, it's very plausible that a lender would say 'You lose your rewards for missing a payment,'" says Fox. "The rewards is based on you being a 'good customer.'"
To stay in a card issuer's good graces, make payments on time, keep your debt well below your credit limit and call your card issuer ahead of time if you know you can't make a payment.

The original article can be found at CardRatings.com:

Steakhouse Waiters From Smith And Wollensky, Wolfgang Steak, And More Arrested For Credit Card Fraud

2011-11-19T00:36:00.000+07:00

Waiters and other restaurant employees from some of the city's top steakhouses, including Smith and Wollensky and Wolfgang's, have been arrested for allegedly taking part in a massive identity theft ring totaling at least $1 million in stolen credit card information.
NBC New York reports on the more than a dozen arrests of both current and former employees who allegedly used handheld credit card skimmers to copy information from wealthy patrons paying with high-limit credit cards such as the American Express Black card.
The rather complicated scenario would then involve the illicitly obtained card information to be sent to the alleged fraud ring, who would then use the information to buy high-end, luxury goods such as Jimmy Choo shoes.
Those goods would then be resold for cash.
Police say restaurant owners were unaware of the alleged scam.
News of the arrests come two days after police arrested three Canadian tourists on Wednesday for allegedly planting hidden cameras and card skimmers in Chase ATM's near Union Square and stealing nearly $300,000 from more than a thousand customers.
Back in October, it was reported that banks in the United States were failing to properly secure credit and debit card information, ultimately losing in the global effort to fight off thieves and hackers.
According to the report, fraud in the United States made up for 47 percent of the international fraud losses in the past year.

For more details please visit: http://www.huffingtonpost.com/2011/11/18/steakhouse-waiters-from-s_n_1101398.html?ref=new-york

Title: Is credit card debt consolidation for me?

2011-11-19T00:17:00.000+07:00

With the average Australian household credit card debt rising to almost $10,000, credit card debt consolidation is big business today. The popularity of credit card debt consolidation is evident by the numerous methods as well as the large number of firms providing credit card debt consolidation services. However, all credit card debt consolidation methods work differently, and depending upon your own financial situation and the amount of your debt, you should choose the credit card debt consolidation method that works optimally for you.

There are numerous credit card debt consolidation options available for the average debtor. If you are not already neck-deep into debt, then the best method for paying it off is to consolidate using credit cards. Credit card companies offer many different options for people who use this method of credit card debt consolidation. Many companies offer a 0 interest rate.

The advantage of using this kind of credit card debt consolidation method is that you end up saving the sky high interest that you were paying on your earlier credit card. This way, whatever you spend on paying off your credit card balance goes directly towards reducing your principal instead of being wasted on interest payments. However, this method of credit card debt consolidation works only for people who are regular and disciplined about paying off their credit card balance on time.

One thing that you need to keep in mind is that, no matter what, you are consolidating with a credit card! So, in case you delay your monthly payments, you will have to pay back your balance with a much higher rate of interest than what you were probably paying on your earlier credit card. While generally credit card debt consolidation schemes start with a 0% APR, the rate of interest shoots up steeply once the introductory period is over and you may end up paying more than you would have originally. If you want to become debt free this way, then remember that strict discipline and thoughtful planning are the cornerstones of credit card debt consolidation through balance transfers.

In case you feel you are not disciplined enough to always pay off the balance on your new card on time, then consolidation through credit card may not be the best option for you. In such cases, you should try exploring credit card debt consolidation loans. You can write off your entire credit card debt using the payment from a credit card debt consolidation loan. And the best part is that these loans are available at a much lower interest rate than what your average credit card company charges.

Title: Benefits Of Online Credit Card Processors

2011-11-19T00:14:00.000+07:00

We have all heard of PayPal. PayPal is an online credit card processor that allows online businesses to securely accept credit cards as a form of payment. In addition to PayPal, there are additional online credit card processors.

Online shopping has dramatically increased in popularity and each day more consumers think about purchasing online. Online shopping is popular because it is generally easy and convenient. Online credit card processors help to make online shopping hassle free. Online credit card processors are used by large or small businesses. In additional to nationally known companies, online credit card processors make it easy for work-at-home individuals to successfully make a profit selling homemade or wholesale merchandise.

For individuals interested in starting their own online business, finding the perfect online credit card processing company make take sometime. Credit card number are valuable information and unfortunately many account numbers are stolen each day. In addition to protecting the assets of your business, obtaining a secure online credit card processor will also protect your customers. Consumers do not want to be shopping or handing out valuable personal information to an unsecured website or credit card processing company. The best way to determine the success of online credit card processors is by searching for customer feedback on the internet. Many times clients will post feedback when they have had a positive or negative experience with a company.

In addition to personal and business security, fully researching the various different online credit card processors is a potential way to increase your profits. For allowing you to use their services, you are charged a fee. The fee and rates will depend on the online credit card processor in question. For this reason, it is important to shop around and find the best value for your money. Although cheaper rates are nice, it is not always better. Go with your gut instinct, if something seems too good to be true it may be. Research is an important tool in keeping your profits intact.

It is not uncommon to come across online credit card processors that offer certain guidelines or restrictions on their services. For example, there may be a select few of online credit card processors that limit the amount of sales it processes. This limit may be monthly, weekly, or even daily. If your business becomes a success, this restriction could only hurt it and could cause you to lose potential profits.

Another restriction may include the type of business that you are operating. Although each online credit card processor is different and they tend to operate under different standards, some online businesses may be a violation of their standards. A few examples of the businesses that online credit card processors may refuse to service are gambling sites, adult sties, or pharmacies. Before entering into a contract with an online credit card processing company, it is important to read through their contract rules and guidelines.

Credit cards are used by consumers because they are a convenient and easy way to participate in online shopping. If you are operating an online business, whether it be large or small, consider accepting online credit cards. There a wide number of online credit card processors available to serve your needs and help your businesses grow.

Title: Is a Credit Card right for you?

2011-11-19T00:12:00.000+07:00

So, you just received an application for a credit card in the mail or you happened to come across one on the internet, how do you know if you can handle a credit card or the many responsibilities that come with having a credit card?

There are some people that believe that there are certain personal characteristics that can help to determine if you are responsible enough to have a credit card or if you should hold off on getting one.

1.    Excessive spender-are you an excessive spender? Do you have a problem with spending too much money? If so, than you should hold off on getting a credit card. Credit cards are great to have for an emergency or the occasional purchase, but not all of the time and for everyday use; unless you can keep up with the bills.
2.    Previous Credit cards-Do you have several other credit cards that you have fallen behind on and/or are over limit on? If this is you, than maybe you should also hold off on getting a credit card unless you cut some of the others or pay some off.
3.    Consistently late on payments-Are you ALWAYS late on payments on your bills or other purchases? This is another sign that maybe you should not have a credit cards just yet.

There are several credit cards out there specifically for those that have bad credit or no credit at all, but even if you are one of those people, think before you get a credit card. You do not want to get yourself in even more debt. Try and pay other things off first.

Above I have listed three personal characteristics that are great in helping to determine if you are ready for a credit card or not. If you fall under one or two of these characteristics, make sure you think twice before signing on the dotted line, otherwise; sign away, just don’t over do it on the spending and make sure you keep up with your purchases.

Do You Know How Cash Back Credit Cards Work? 2

2011-11-18T21:39:00.000+07:00

Competition among credit cards
Cash back credit card companies are all competing for attention and in order to get more clients, these companies promise only the best. Or course, not everyone deserves your trust. For this reason, caution is advised for everyone who plans on applying for a reward credit card.
Most reward credit cards are accompanied with unreasonably high interest rates but if you do your research, you can find one that offers a good deal. When it comes to annual fees, you can now find cash back reward cards that do not have annual fees. If the cash back card you choose requires an annual fee, you'll want to make sure that the cost does not outweigh your potential to earn rewards. If you'll be paying for an expensive annual fee each year, then can you still say that you are being rewarded? Or would you end up paying more than what you get back?
Lastly, cash back credit cards will only work if you keep up with your payments religiously. Never carry over your balance for the next billing cycle if you don't want to suffer paying for an expensive interest rate. Make it a point to pay off your balance in full each month so make sure that you will be rewarded.

Do You Know How Cash Back Credit Cards Work?

2011-11-18T21:37:00.000+07:00

The popularity of cash back credit cards hasn't waned over the years. In fact, today, more and more people still prefer a cash back credit card over other reward credit cards programs. Do you own a cash back card yourself? Or are you still thinking about applying your own cash back card? Whether you already have a cash back card or is still planning on getting one, this article would surely be useful for you. Let's discuss more closely how these reward credit cards work.
How Cash Back Credit Cards Reward Holders
Although specific terms and conditions vary between each credit card issuer, the procedure on earning the cash rewards is pretty much the same. Generally, a card holder earns a corresponding point for every dollar he spent using his credit card. Some credit card issuers give 2 points or double points for every dollar but in most cases, 1 point is given for each dollar amount charged on the card. The points are converted to cash or money points, thus their name- cash back credit cards.
What can you do with the cash points you earn? You can use these cash points to make new purchases or pay bills using your credit card. Some credit cards would require the holder to spend his reward from a specific shop while others give the flexibility to use your cash rewards from any store you want.Discoverฎ Gas CardSome cash back cards impose a maximum amount of cash points that the card holder can earn. After reaching this limit, the card holder may stop qualifying for more points. The best cash back credit cards however do not impose restrictions on the amount of rewards you can earn. As long as you're using credit card on your payments, you continuously earn points on your account. You can earn as much cash as you want as long as you're an active member of the reward program.

Fake Credit Card Numbers Mean Safer Online Shopping.

2011-11-18T19:11:00.001+07:00

Isn't That Illegal?
Yes, using credit cards fraudulently is illegal. This article is absolutely not suggesting that you make up and use a credit card number. You should also never use credit cards belonging to other people.
Below is a summary of new services the credit card companies have created to make online credit card use more secure.
How Does It Work?
It is more appropriate to use the terms "temporary credit card numbers" or "single-use credit card numbers" rather than "fake credit card numbers."
Some credit card issuers allow customers to generate and use a credit card number that is different from the number on their plastic credit card.
Current Online Security Measures
Security-conscious online buyers should only submit their credit card numbers to web sites that are secured by Secure Socket Layer (SSL) encryption. You can tell if a web page is secure by looking for the following signs:
1. The page address in the browser address bar begins with https. The extra "s" means secure. Normal web page addresses begin with http.
2. The browser will usually display a closed lock or a complete key symbol when you are at a secure page.
3. Clicking or double-clicking the closed lock symbol (or the security symbol your browser uses) will usually show the security information for that website.
4. Secure (https) web pages will encrypt (scramble) your credit card information before sending it across the public internet. Chances are that a human being will never even view the information.
That Sounds Secure Enough. Why Do We Need Single-Use Credit Card Numbers?
It is a bonus to the consumer any time a vendor can provide an extra layer of security. Online credit card consumers can generate a separate credit card number for each online purchase, if they wish.
This easy-to-use extra security measure makes consumers more confident about buying with credit cards over the internet. Anyone who did view your information in transit would see only your encrypted information. Encrypted information looks like gibberish to everyone except the credit card company's computer.
Additionally, it is no longer necessary to submit online the credit card number imprinted on your physical credit card.
Will They Run Out Of Credit Card Numbers?
No! Assume that Earth's population is about 6 billion people. Most credit card numbers have 16 digits in this familiar pattern: nnnn-nnnn-nnnn-nnnn. Assume that each digit in a credit card number can assume any value between 0 and 9.
That works out to be almost 1.7 million credit card numbers available to every man, woman, and child on Earth!
Even if the first 4 digits are reserved for some reason, there are still about 170 credit card numbers available for every person on the planet. In short, the credit card companies will not run out of single-use credit card numbers.
How Are They Different From My Real Credit Card Number?
They are as valid as your plastic credit card to online merchants. Each single-use credit card number is linked to your primary credit card account. Purchases made with single-use numbers appear on your monthly statement. Refunds made to single-use numbers will appear as credits on your monthly statement.
OK, What's The Bad News?
There are certain circumstances under which you should not use a single-use credit card number to make an online purchase. This author learned from experience not to use a single-use number at home to purchase movie tickets from a popular online ticket vendor.
The problem occurred because the machine at the movie theater that dispenses the online movie tickets requires the insertion of your real plastic credit card. If you did not use your real credit card number to buy the tickets, the machine will not release your tickets.
Any online purchase that requires you to present your physical credit card at the venue should only be made with the number on your physical credit card. Web sites that sell movie and other tickets will warn you of this.
Furthermore, your online ticket purchase will come with a confirmation number. Write or print that number and take it with you in case of problems.
Conclusion
Single-use credit card numbers are easy to generate, make online buying safer and more secure, and give consumers extra confidence when making online purchases. Call your credit card company or visit their website to learn if it offers this extra peace of mind on your credit card account.
Use the links following this article to learn more about cash rebate credit cards and gas credit cards.

Credit Cards: What Do Psychologists Have to Say about It

2011-11-18T19:07:00.001+07:00

The number one rule when you are choosing a credit card deal is to consider your spending habits. You should always keep in mind where you like to shop, how much balance you usually carry on your plastic and whether you spend enough to qualify for those rewards and cash backs. So it is obvious, that your credit card choice depends on your spending habits. However, your spending habits are greatly influenced by credit cards.
Psychological studies have shown that consumer behavior of those using credit is different from those paying with cash. The following experiment was conducted at one of the American universities. Two groups of people were bidding on the same items. Members of one group could only bid with cash, the others were allowed to bid only with credit cards. The result of the experiment was quite interesting. Those who could bid with credit cards ended up making bets twice as high as those made by participants paying with cash.
That means that every dollar spent with a credit card equals 50 cents spent in cash. In other words, people shopping with credit cards spend twice as much as those shopping cash. Why does this happen?
Buying things is pleasant. Paying for them is not. Usually a consumer tries to find a balance so that the pleasure of having overweighs the pain of paying for it. When a credit card holder uses his or her plastic pleasant consumption transaction is disconnected from the unpleasant payment transaction.
Of course, you still have to pay for what you have bought. According to scientific data people dislike paying credit card bills even more than paying parking tickets. But still, people enjoy buying something with a credit card more.
Studies have shown that even a credit card logo on a catalogue or a debit card excites people. This is another wonderful way to increase sales and many merchants know that.
So are credit cards enticing you to overspend? Pretty much so. So are credit card-issuers to blame for the increased credit card debt? Well, that would not be quite fare to say so.
Even though a consumer seems to spend more with a credit card but most people are able to stop when they know they are about to exceed the limit. And we are not talking about credit card limit, but the limit they have set for themselves, something like ‘I won’t pay for a pair of shoes more than 100 bucks’. Credit cards might make you spend more but they do not force you to overspend.
Rather, high interest rates and fees and those unpleasant credit card bills make consumers stop. People do not like giving money, especially to banks. From this standpoint overspending is more likely to happen when shopping with cash than with a credit card.
Credit card deals can be very beneficial for consumers if used wisely. Of course, they sometimes make you to spend more, especially if you want to get a cash back or earn bonus miles. But the decision is always yours. You are the only one who can answer the crucial question – to spend, or not to spend…

Credit card application for starters

2011-11-18T15:53:00.000+07:00

“Plastic money” is a term dubbed by the people of the world in reference to the wondrous item called the “credit card.” And at the rate the economy is going and with the pace of life that we have right now we want everything done the express way. That’s why a lot of businessmen, young professionals, big bankers and even well-off students are lining up inside their trusted banks, credit card application in one hand and the need to have instant credit on the other.
Of credit, cards and credit card application
Credit card applications have taken over the need to have cold cash and a lot of people are trading in their hard-earned green bucks for a shot of having the charge-it-card. But along with your credit card application is the responsibility that we are mainly unaware of. So when you are thinking about falling in line to get started with your credit card account and before you start filling up the fields necessary to get up and running with your credit card application know all the precautions and the counter measures for you to be protected by the federal law. Credit card application, as we all know takes a lot of time with regards to the verification of the identity of the person on top of the credit card application. Because of the US Patriotic Act that requires further verification of anyone applying for anything on the United States, that includes credit card application, getting anything in the US has become quite a chore. But since the importance of having a credit card is top priority in the US many are still willing to go to immense amount of trouble that is coupled with it.
The importance of having a credit card is very imminent; take for example the average American. An average American from the middle class bracket owns about eight to ten different credit cards and uses all of them at an average if once a day. With this number it’s not surprising that there are about a hundred thousand credit card applications being processed in a single day. And the rate if credit card applications are still expected to rise within the next quarter. The need for credit cards and debit cards is for real and the market should be open for more credit card applications that is expectedly going to flood their way. There will be a great need for more people to look into the responsibility of educating other people on how and when to use their credit cards, because it’s hard earned greenbacks that we are throwing away when we buy online porno and junk like that only profit a few people. So whenever you’re ready grab a pen and paper and get ready to fill up that credit card application form and take one step in the express charging the way you buy.
Most of the time, although your credit card application is mailed to that states that you have been pre-approved, you will still be asked to fill out a credit card application or the ‘acceptance form’. The reason behind this is the need of the bank or the company to verify the identification of the person they have sent the card to. Since most companies offer online credit card application, you may go online to fill out the form so the processing will be convenient and easier.
When filling out your credit card application, there are some important details that should be considered aside from your name and contact information like the query should you accept every offer or not, the possibility of hidden fees that can be quite expensive and the like.

Title:How To Accept Credit Cards Without A Merchant Account

2011-11-18T15:47:00.000+07:00

To increase sales on your website, you must accept credit cards. To process credit cards, you could apply for a merchant account through your bank or other financial institution.
Sometimes, though, you would be further ahead to use the services of a credit card processor. This is especially true when you are first starting out and have more limited resources. In this way, you may process credit card transactions without the high front-end costs and requirements of a merchant account.
Here, then, are just a few ways of accepting credit cards without a merchant account. I personally use all of these vendors and can recommend them wholeheartedly.
1. Clickbank
If your product is downloadable (such as electronic books or software), you might consider ClickBank.com . For a $49.95 initial fee, you can process credit cards and on-line cheques for $1.00 per transaction plus 7.5% of sales.
You receive additional exposure through free listing on their website and through the search facilities of other websites, such as CBMall.com.
As an added bonus, you have your own built-in affiliate program. You decide what commission (from 1% to 75%) you would like to pay your affiliates.
2. PayPal
PayPal.com has no initial fees. For just 2.9% of sales and $ .30 per transaction (and sometimes less), you can receive money from anyone.
Also, you can pay others by credit card or chequing account without supplying your personal credit information to the payee. PayPal can be used to collect money from your auctions, website sales, or even from friends or clients.
3. PaySystems
In the original edition of this article, I recommended PaySystems.com (also known as MyPaySystems.com). This is what I wrote about them:
"PaySystems.com can handle either intangible (downloadable) or tangible (shippable) products. For an initial fee of $49.00, you can accept all major credit cards as well as online checks. Fees are just 3.95% of sales and $1.00 per transaction. Alternatively, you may pay 5.5% of sales and $ .35 per transaction."
"For this, you receive shopping cart, integration with third-party affiliate programs (such as ClixGalore.com), fraud screening, multi-currency transactions, toll-free support, marketing tools, and more."
Unfortunately, PaySystems.com has discontinued their "Internet Billing Account" for those outside the United States.
4. 2CheckOut
2CheckOut.com can handle both intangible and tangible products. For an initial fee of $49.00, you can accept all major credit cards as well as online checks. Fees are just 5.5% of sales and $0.45 per transaction.
For this, you receive shopping cart, fraud detection, integration with third-party affiliate programs, multi-currency transactions, free on-line support, and more.
Incidentally, 2CheckOut.com has the same policy as ClickBank.com does with regard to sales taxes. Both companies take the position that you are selling your product to them and that they resell it to the final consumer. Thus, they claim that you are not subject to sales taxes on those sales.

The Bad Credit Card- Offered By Many Companies

2011-11-18T15:39:00.000+07:00

Check-books and paying with cash is becoming less frequent as more people are using plastic to pay for purchases. Checkbooks are being replaced by debit cards and the use of credit cards is rising. Online shopping has helped fuel the need for a credit card. Unfortunately people with bad credit are normally not approved for a credit card. It is not hopeless, there are avenues for those with bad credit histories to enter or return to the world of plastic.
Bad credit - credit cards are offered by many companies. This became a necessity since individuals with low incomes or credit problems would be declined for a low interest, no fee credit card. Many of these companies use what is called Risk Based Pricing. What this does is they have several types of offerings with different interest rates. The rate they offer is based on your credit score. So if you apply for one card you may get declined but offered a card with a higher rate. This is an excellent way for someone with a bit of a negative credit history to be approved for a bad credit, credit card.
So what about those individuals with no credit or extremely negative credit? They may need to look at another type of bad credit, credit card. There are several companies that target these types of people. They offer what is called a starter card. This type of card has a very high interest rate and very low credit limit. There are also a substantial amount of fees normally connected with these cards.
These cards pale in comparison to the more normal type of credit card offers but the acceptance rate is high. By using, one of these bad credit, credit cards and keeping with the terms of the agreement, making payments on time in a period of time your credit rating will be more positive. This will allow you the opportunity to apply with a better chance of acceptance for a lower rate and more favorable term credit card.
There are some individuals with such critical credit problems, a recent bankruptcy for instance, that a starter card would not be an option. If this is the case the only solution that would be left is a prepaid credit card which is sometimes called a secured card. The fact they look like a credit card it the only similarity. They need to have funds deposited to use them. You are virtually guaranteed to be accepted for this type of bad credit, credit card.
They work the same as any Mastercard or Visa but you can only spend the amount of money you have deposited. This leaves very little risk to the card issuer since you can not incur any debt with them. Because the issuer of the card will not be making any money on monthly interest rates for the balance they make their money in other ways. The can charge a fee for applying, a annual fee, an administration fee even a small percentage for every time you purchase something with the card. You will want to research several companies before applying for this type of bad credit, credit card since these fees can vary greatly.
Basically what all this means if even with a bad credit rating, nearly everyone can find a bad credit, credit card. It may take some research but it can be accomplished.

Small Business Credit Cards: Make Your Accountant Obsolete

2011-11-18T15:32:00.000+07:00

Small business credit cards can play an important role in the success of many enterprises and small businesses. Yet currently most folks view of small business credit cards is extremely limited. Mostly they only think of them as tools to aid them in obtaining certain incentives for small businesses that credit cards have become famous for giving.
Problems That A Small Business Credit Card Can Solve
The more significant potential role that small business credit cards can play is that of helping entrepreneurs manage their businesses more efficiently and easily by greatly simplifying the accounting and financial record keeping tasks. There is no doubt that this is a critical area in the management of the affairs of any business and yet keeping constantly updated and accurate records is quite a challenge for any small business.
Many people thought that with the advent of popular and easy to use small business software accounting packages like Quickbooks, this problem was gone forever. Alas, some old problems persisted. One of them was that somebody still had to enter the details and somebody still had to keep all the receipts. Then there is always the struggle to separate personal expenses from business expenses for a small business. Not to mention the need to divide all the expenses into various different categories for tax reasons.
All these headaches instantly create the position for a full-time, experienced and therefore expensive accountant for any small business.
How Small Business Credit Card Reporting Systems Work Magic

Most small business credit card statements are very detailed and immediately eliminate the cumbersome need to get and carry around receipts with you. Small business credit card statements can easily be categorized and dividing personal and business expenses is a breeze.
What makes things even easier is the fact that these detailed reporting systems are accessible online and statements can easily be downloaded directly into most of the popular small business accounting packages around. What this means is that there is no need of getting somebody to key in your expenses into the system with all the possibilities of errors and omissions.
So with one master genius stroke of getting a small business credit card and ensuring that all expenses are paid using it, any small enterprise instantly creates a highly efficient and paperless accounting system that virtually requires no manpower.
You really need to have gone through the hassles of keeping track of your expenses by physically collecting and keeping receipts to appreciate how much of a relief a small business credit card accounting system can be.
Even if you choose to retain your accountant (which you should if you can afford him), they will now get involved in doing other more useful tasks that will impact even more directly on the success of your small business like researching for lower cost vendors and generally finding new ways to reduce costs and expenses for the small business. Meanwhile your small business credit card reporting system will accomplish most of the time-consuming daily tasks of the past. And let's not forget, the frequent flyer, cash back, and other rewards small business credit cards offer are great too!

The how to Pick the Right Credit Card For Your Spending Habits

2011-11-18T15:15:00.000+07:00

There are so many different credit cards out there to choose from! Picking the right one for your spending habits can be a difficult decision. Here, we'll try to help you sort through the types, and to make a wise choice.

No annual fee vs annual fee:

*Some credit card companies charge an annual fee just to have the card. Some will waive the fee just for charging a certain amount during the year on it. Many cards that have an annual fee are for individuals with less than stellar credit, although there are others such as rewards cards, and some specialty cards that also charge a fee. If the card offfers a low enough interest rate, it may be worth your while to pay the fee.

Balance transfer credit cards:

*If you are carrying a balance on a higher interest credit card, it may be to your advantage to transfer your balance to a card offering a lower interest rate. This rate can be as low as 0% for a length of time that varies widely between card issuers. Typically, this can be from 3-18 months, although some carry the lower interest rate until the balance is paid off. Be sure to read the fine print for any balance transfer fees that may apply.

Low interest credit cards:

*Some credit card companies offer a low interest rate. This often includes a low introductory rate on purchases, which will increase after a specified amount of time-normally from 3-12 months. Again, read the fine print to see what the interest rate will be after the introductory period ends, and check to see if an annual fee applies.

Reward credit cards:

*These cards reward you for using them. The more you charge on them the more you get back. These are ideal for individuals who pay off their bill in full each month. The rewards can vary widely by issuer. Typical rewards include: cash back on all purchases, airline miles, store discounts and other perks. Be sure to read the terms and conditions thoroughly before applying. And, make sure if you use these cards, pay off the balance in full each month. The interest rates are normally higher than other cards to compensate for the rewards. You don't want to lose what you gained in rewards to interest charges.

Student credit cards:

*These cards are for students who generally have little or no credit history. Often, they have more restrictions than a non-student card. Some require a parent or guardian to co-sign. This would mean if a student defaulted on all or part of their payments, the parent would be responsible. The parent or guardian can also get a statement sent to them or have online access to it, and would have control over increases in future raises in the credit limit. Student cards can help teach financial responsibility, as well as build credit history.

Business credit cards:

*Business credit cards are generally available to business owners as well as emplyees. They can help keep business expenses seperate from personal expenses. They also offer many of the same features as traditional credit cards, such as low introductory rates, cashback rewards, airline miles or gifts. You may even use the rewards as an incentive to employess at no out of pocket expense to the business.

Secured credit cards:

*If you have poor credit, you may need to get a secured credit card. With a secured card, you secure the card by depositing cash up front in a savings account or to the credit card company. The amount of funds you place on deposit will generally match your credit line. Your card issuer has a lien on the deposit account, which you stand to lose if you fail to make your credit card payments on time.

A secured credit card looks just like a regular one, and the law specifies that it has all the same consumer protections. A secured card typically carries a higher interest rate. But, a secured card can be a good deal because it offers you ability to have a credit card while you work on establishing or rebuilding your credit rating.

Debit cards:

*Debit cards look like a normal credit card, and are accepted anywhere credit cards are. They work more like checks than credit cards though. You can also use it at an ATM to withdraw cash from your account. The money comes directly out of your checking or savings account immediately when you make a purchase, instead of waiting for the montly bill. And, consumers who use debit cards don't have all of the same protection as credit card users. Conusmers don't have the right to withhold payment in the event of a dispute with a merchant, and if your card number is stolen, your account may be emptied before the bank can complete an investigation.

Hopefully, this information will help you sort through the credit card maze. The most important thing to remember is to read the cardholder agreement closely to find out the terms-especially after the introductory period is over. And, always consult with your financial advisor before applying for any credit card or making any major financial decision.