Want Answers About Your First Credit Card
by Deanna Mascle
Stepping into the adult world presents a lot of new issues you may never have considered before. Among these new problems is how to establish credit. So many people find themselves ready to leave their parents' home to get a home or apartment of their own only to find out that they can't get certain things like a place to live and the utilities that go with it because they don't have sufficient credit. Sometimes having no credit can be worse than having bad credit. When you are trying to get a loan for a car or a house your future creditors want to make sure you can pay the loan back. They have no records to look at to tell them if you will do this or not. It might sound like a Catch 22, but you will have to start by getting a credit card and making a few purchases.
When deciding which credit card to start with, you should sit down and evaluate some things about yourself. For instance, are you someone who procrastinates? Do you have steady income that will allow you to pay the bills? Why do you want a credit card in the first place? It is very important to be honest with yourself when you answer these questions because it is easy to get into a hole that you can't crawl out from. Even if you feel like you are the most irresponsible person on earth, but you still want a credit card, a good one to get is the American Express green card. The Amex card has to be paid off every month, and you may be willing to spend less if you know that there is not going to be a minimum balance.
Finding the right credit card can be confusing because there are a lot of things to keep up with like APR, annual fees, and hidden charges. The best way to compare credit cards is to compare the APRs. The general rule is that the lower the APR, the lower the cost of credit. Try to look out for the hidden charges that are behind credit card companies. Sometimes companies like to hide things away in the fine print. Even if fine print annoys you, you should try to read it. There are often times charges for charging more than your credit limit, late fees, or periodic finance charges. Little charges here and there will end up costing you massive amounts in the long run.
When you use your first credit card there are some rules that you should follow. You should always shred your receipts, and also shred any credit card offers that you are not considering. Do not ever give your credit card number over the phone unless you are the one who initiated the phone call to the company that you are ordering things from, or trying to get a bill paid. Keep the customer service numbers of all of your credit cards in a safe place. Sometimes companies will send you a new card and it will get lost in the mail, an automated system will ask for your information before it will let you proceed, however, if you don't have a customer service number, you will have to wait until your next bill comes in. You would think that calling the store would help, but incompetence runs rampant in all parts of the world.
Try your hardest not to get a credit card in the first place. I know this may seem like impossibility, but they are only troublesome beasts. If you have to get one, make sure that you have really thought about what you are capable of, and how you are going to manage your money.
Tuesday, March 24, 2009
Credit Card Debt Management: Cure Yourself Of Debts
Credit Card Debt Management: Cure Yourself Of Debts
by Elaine Owen
We make the use of credit cards to help us around when we are not carrying enough cash so that we do not have to compromise on our needs or miss any opportunity. But nowadays debts seem to be the only thing that they result in. these debts can be easily removed if the borrower takes up Credit Card Debt Management.
The first and foremost way to put a brake to the creation of debts is to stop the usage of credit cards. It is mainly due to the careless and limitless spending by the borrower through the card which is often more than one for the user. This usage of multiple cards actually is an obstruction in the removal of debts.
The borrowers can remove their debts easily through a couple of ways which are available to them. The first way is to get a new credit card which offers zero interest on the payments in the initial period of payments. This is a usual offer by most cards for promotion but can be used by the borrowers to repay their debts to the earlier lenders without any extra cost. The other way through which the borrowers can resolve their debts is through a fresh loan that can be borrowed by them easily. This loan will be borrowed in an amount which is equal to all the debts consolidated for the borrower. He can repay all his debts with this money and remove them easily. This will help the borrower by saving money as the rate of interest will be lower than that charged on the unpaid multiple debts. Also, the hassle of multiple repayments can be removed by repaying just a single loan amount.
The borrowers can look for these services which can help them through the online mode. Low cost management services are available for the borrowers which solves the problems of money very easily. With these credit card debt management services, the burdened financial history of the borrowers can be easily corrected without any problems.
by Elaine Owen
We make the use of credit cards to help us around when we are not carrying enough cash so that we do not have to compromise on our needs or miss any opportunity. But nowadays debts seem to be the only thing that they result in. these debts can be easily removed if the borrower takes up Credit Card Debt Management.
The first and foremost way to put a brake to the creation of debts is to stop the usage of credit cards. It is mainly due to the careless and limitless spending by the borrower through the card which is often more than one for the user. This usage of multiple cards actually is an obstruction in the removal of debts.
The borrowers can remove their debts easily through a couple of ways which are available to them. The first way is to get a new credit card which offers zero interest on the payments in the initial period of payments. This is a usual offer by most cards for promotion but can be used by the borrowers to repay their debts to the earlier lenders without any extra cost. The other way through which the borrowers can resolve their debts is through a fresh loan that can be borrowed by them easily. This loan will be borrowed in an amount which is equal to all the debts consolidated for the borrower. He can repay all his debts with this money and remove them easily. This will help the borrower by saving money as the rate of interest will be lower than that charged on the unpaid multiple debts. Also, the hassle of multiple repayments can be removed by repaying just a single loan amount.
The borrowers can look for these services which can help them through the online mode. Low cost management services are available for the borrowers which solves the problems of money very easily. With these credit card debt management services, the burdened financial history of the borrowers can be easily corrected without any problems.
How to be A Credit Card Debt Dummy
How to be A Credit Card Debt Dummy
by John Stevenson
Anyone that is living or about to live on their own, be they high school graduates or middle aged parents, should understand the uses and perils of credit cards. They can be fantastic tools for charging items when you're a little too short on cash, but using them too often and to charge very large purchases can result in massive debt that some people find it nearly impossible to escape from. The average credit card debt in the US is over $9,000. Chances are you are one of the people that should read about info on credit card debt.
How to Get into Debt
Getting into debt is a lot easier than most people realize. That's a pretty silly statement isn't it? It would be except it is so true. I've been there myself. So how does somebody get into credit card debt without their realizing it at the time? They most likely make a lot of small purchases which add up over time. While eating out at McDonald's or seeing a movie at the theater doesn't seem like much at the time, continual small purchases do add up. A $5 purchase once a day, like that mocha latte you love so much, adds up to $150 a month. Therefore, try paying small purchases with cash or a debit card as opposed to a credit card. Or cut out the latte a few times a week.
I'm sure you know enough about getting in to debt. What should you do to get out of debt? Don't ignore the bills! If you do, your credit rating will suffer, making loans and other lines of credit harder to acquire over time. When you get bills, pay them on time. This will help minimize the interest that you accumulate from credit companies. Interest doesn't go down on its own. When many people ignore it, it grows to unmanageable proportions. A $5,000 balance can grow to $15,000. Pay your bills.
Are you in over your head? For more info on credit card debt, you can turn to credit counseling companies to give you an idea of how long it would take to pay off a particular balance with a particular interest rate. Better yet, stop making the minimum payments. By paying more than the minimum payment, you can easily shave 50% of the interest payments off. This is just a basic amount of info on credit card debt. Don't let it ruin your life. For more information please visit Reduce Credit Card Debt.
by John Stevenson
Anyone that is living or about to live on their own, be they high school graduates or middle aged parents, should understand the uses and perils of credit cards. They can be fantastic tools for charging items when you're a little too short on cash, but using them too often and to charge very large purchases can result in massive debt that some people find it nearly impossible to escape from. The average credit card debt in the US is over $9,000. Chances are you are one of the people that should read about info on credit card debt.
How to Get into Debt
Getting into debt is a lot easier than most people realize. That's a pretty silly statement isn't it? It would be except it is so true. I've been there myself. So how does somebody get into credit card debt without their realizing it at the time? They most likely make a lot of small purchases which add up over time. While eating out at McDonald's or seeing a movie at the theater doesn't seem like much at the time, continual small purchases do add up. A $5 purchase once a day, like that mocha latte you love so much, adds up to $150 a month. Therefore, try paying small purchases with cash or a debit card as opposed to a credit card. Or cut out the latte a few times a week.
I'm sure you know enough about getting in to debt. What should you do to get out of debt? Don't ignore the bills! If you do, your credit rating will suffer, making loans and other lines of credit harder to acquire over time. When you get bills, pay them on time. This will help minimize the interest that you accumulate from credit companies. Interest doesn't go down on its own. When many people ignore it, it grows to unmanageable proportions. A $5,000 balance can grow to $15,000. Pay your bills.
Are you in over your head? For more info on credit card debt, you can turn to credit counseling companies to give you an idea of how long it would take to pay off a particular balance with a particular interest rate. Better yet, stop making the minimum payments. By paying more than the minimum payment, you can easily shave 50% of the interest payments off. This is just a basic amount of info on credit card debt. Don't let it ruin your life. For more information please visit Reduce Credit Card Debt.
Getting Your First Credit Card
Getting Your First Credit Card
by financeglobe
Getting your first credit card is a major stepping stone to financial independence. It's nice to be able to cover surprise expenses or emergencies without having to borrow money from relatives. You will have the freedom to make purchases based on an anticipated paycheck. Even if you're smart enough to only buy things when you have the cash, it's important to establish your credit history now. After showing a history of responsible credit card use, you can qualify for better credit cards that offer better rates, perks, and rewards. One day in the future you may want to own a home, or buy a nicer car. Using your credit card responsibly will improve your credit history, so that you can eventually qualify for the best terms possible on home mortgages or car loans.
A credit card will allow you to make hotel reservations, rent a car, and make purchases online or by phone. A credit card offers the convenience of pay-at-the-pump at gas stations. You can go out for dinner or a day of shopping without needing to make sure you have enough cash on hand. A credit card is a wonderfully convenient way to pay at nearly any merchant, as long as you are in control of your credit card use.
If used properly, your first credit card can help you build your credit, keep track of your spending, and develop a budget. It's amazing how we lose track of spending when we pay for everything in cash everyday; when you see it all in black and white on a monthly credit card statement, you may gain some insight on where your money really goes. When you use your credit card, be sure that you are only using it for the convenience of replacing cash that you already have in the bank, or will have by the time the credit card bill arrives. It's very important to develop good credit habits now; if you can use one credit card responsibly, you'll be more likely to be in control of your finances when your credit is better established and you have more credit cards at your disposal.
If used carelessly, a credit card can be the first bad habit that will lead to a mountain of debt. The problem many people have with credit cards is that they spend without making sure they are able to pay their balance in full each month. They figure they'll pay it off later, since the minimum monthly payment is so low. What these people aren't thinking about is that they will grow accustomed to the overspending that a credit card allows, and it's a habit that's hard to break once you've become used to it. They look at a credit limit as extra money, instead of the debt that it really is. Interest charges accumulate if the debt isn't paid off every month, and a credit card can quickly become a major expense rather than a valuable money management tool.
If you are in the market for your first credit card, then you probably don't have an established credit history. You will be more limited in your choices of credit cards, but many card issuers offer credit cards for people with limited or poor credit. Since you have not yet had the opportunity to prove your credit-worthiness, it is a simple fact that you will not be offered the best rates and deals that are reserved for people with a proven credit record. Most credit cards for people with limited credit histories do not offer rewards of any kind. You'll most likely be required to pay an annual fee, and the interest rate is probably going to be on the high side.
Secured credit cards are a popular way for people to establish or rebuild their credit. You are basically paying a security deposit, so that in case the debt is not repaid, the card issuer will get their money back. This really isn't as bad as it sounds. Your money will most likely be put into an interest earning account, like a CD, and is just another place you can keep some savings. After you've proven yourself with the credit card issuer, maybe after a year or so of responsible credit card use, they will allow you to withdraw your deposit. Or, you could just leave it there to accumulate interest, and consider it your emergency savings.
Be sure that if you go with a secured card, that the issuer will be willing to upgrade it to an unsecured card once you prove yourself to their standards. Be wary of "banks" you've never heard of; I suggest going with a nationally known bank that offers credit cards to people of various credit histories. Then you'll probably be able to upgrade to a better card while keeping the same account number, which is better for your credit score. The security deposit and an annual fee are pretty standard and are to be expected, but don't apply with a credit card issuer who wants to charge you application fees, monthly service fees, or other fees just to open your account.
If you have a good business relationship with a local bank or credit union, they may be more likely to give you an unsecured credit card than an issuer that you have no relationship with. You may be able to get a credit card if you have had a checking account with them for some time and have never bounced any checks. They may qualify you for a credit card if you've had an auto loan and made your payments on time, even if there was a co-signer on the loan. They will probably start you off with a pretty low limit, but it will still help you build your credit history.
If you're in college, you have quite a few choices in credit cards for students. Student credit card issuers are usually more flexible with the applicants, since they understand that most students are young people with limited credit histories and limited income. They know that you are probably still financially dependent on your parents, which means that Mom or Dad will be likely to help out with the bill if needed. They also know that it's easier to mold a young mind, so if they issue you your first credit card, you'll most likely be their customer for years to come. If you are qualified to apply for a student credit card, take advantage of it while you can. It's usually easier for a student to get a credit card than a young, independent adult who pays his own bills on limited income.
Be sure to read and understand all the terms and conditions of the credit card offer before you apply; unscrupulous credit card issuers often target people with limited or poor credit. There are fees that are necessary and common; late fees, over-limit fees, cash advance fees, bounced check fees are a few of the ways that credit card issuers can recoup the cost of maintaining an account that costs them more or isn't paid as agreed. They're in business; if they didn't charge those fees, everybody would pay late and the credit card business would be in trouble. Some fees are required so they can continue to give their best deals to people who have proven themselves with an excellent credit history. Some fees take advantage of people who are trying to establish their credit, one little mistake and you could be hit with fee after fee. Be aware of any and all fees that could be assessed before you use your card.
by financeglobe
Getting your first credit card is a major stepping stone to financial independence. It's nice to be able to cover surprise expenses or emergencies without having to borrow money from relatives. You will have the freedom to make purchases based on an anticipated paycheck. Even if you're smart enough to only buy things when you have the cash, it's important to establish your credit history now. After showing a history of responsible credit card use, you can qualify for better credit cards that offer better rates, perks, and rewards. One day in the future you may want to own a home, or buy a nicer car. Using your credit card responsibly will improve your credit history, so that you can eventually qualify for the best terms possible on home mortgages or car loans.
A credit card will allow you to make hotel reservations, rent a car, and make purchases online or by phone. A credit card offers the convenience of pay-at-the-pump at gas stations. You can go out for dinner or a day of shopping without needing to make sure you have enough cash on hand. A credit card is a wonderfully convenient way to pay at nearly any merchant, as long as you are in control of your credit card use.
If used properly, your first credit card can help you build your credit, keep track of your spending, and develop a budget. It's amazing how we lose track of spending when we pay for everything in cash everyday; when you see it all in black and white on a monthly credit card statement, you may gain some insight on where your money really goes. When you use your credit card, be sure that you are only using it for the convenience of replacing cash that you already have in the bank, or will have by the time the credit card bill arrives. It's very important to develop good credit habits now; if you can use one credit card responsibly, you'll be more likely to be in control of your finances when your credit is better established and you have more credit cards at your disposal.
If used carelessly, a credit card can be the first bad habit that will lead to a mountain of debt. The problem many people have with credit cards is that they spend without making sure they are able to pay their balance in full each month. They figure they'll pay it off later, since the minimum monthly payment is so low. What these people aren't thinking about is that they will grow accustomed to the overspending that a credit card allows, and it's a habit that's hard to break once you've become used to it. They look at a credit limit as extra money, instead of the debt that it really is. Interest charges accumulate if the debt isn't paid off every month, and a credit card can quickly become a major expense rather than a valuable money management tool.
If you are in the market for your first credit card, then you probably don't have an established credit history. You will be more limited in your choices of credit cards, but many card issuers offer credit cards for people with limited or poor credit. Since you have not yet had the opportunity to prove your credit-worthiness, it is a simple fact that you will not be offered the best rates and deals that are reserved for people with a proven credit record. Most credit cards for people with limited credit histories do not offer rewards of any kind. You'll most likely be required to pay an annual fee, and the interest rate is probably going to be on the high side.
Secured credit cards are a popular way for people to establish or rebuild their credit. You are basically paying a security deposit, so that in case the debt is not repaid, the card issuer will get their money back. This really isn't as bad as it sounds. Your money will most likely be put into an interest earning account, like a CD, and is just another place you can keep some savings. After you've proven yourself with the credit card issuer, maybe after a year or so of responsible credit card use, they will allow you to withdraw your deposit. Or, you could just leave it there to accumulate interest, and consider it your emergency savings.
Be sure that if you go with a secured card, that the issuer will be willing to upgrade it to an unsecured card once you prove yourself to their standards. Be wary of "banks" you've never heard of; I suggest going with a nationally known bank that offers credit cards to people of various credit histories. Then you'll probably be able to upgrade to a better card while keeping the same account number, which is better for your credit score. The security deposit and an annual fee are pretty standard and are to be expected, but don't apply with a credit card issuer who wants to charge you application fees, monthly service fees, or other fees just to open your account.
If you have a good business relationship with a local bank or credit union, they may be more likely to give you an unsecured credit card than an issuer that you have no relationship with. You may be able to get a credit card if you have had a checking account with them for some time and have never bounced any checks. They may qualify you for a credit card if you've had an auto loan and made your payments on time, even if there was a co-signer on the loan. They will probably start you off with a pretty low limit, but it will still help you build your credit history.
If you're in college, you have quite a few choices in credit cards for students. Student credit card issuers are usually more flexible with the applicants, since they understand that most students are young people with limited credit histories and limited income. They know that you are probably still financially dependent on your parents, which means that Mom or Dad will be likely to help out with the bill if needed. They also know that it's easier to mold a young mind, so if they issue you your first credit card, you'll most likely be their customer for years to come. If you are qualified to apply for a student credit card, take advantage of it while you can. It's usually easier for a student to get a credit card than a young, independent adult who pays his own bills on limited income.
Be sure to read and understand all the terms and conditions of the credit card offer before you apply; unscrupulous credit card issuers often target people with limited or poor credit. There are fees that are necessary and common; late fees, over-limit fees, cash advance fees, bounced check fees are a few of the ways that credit card issuers can recoup the cost of maintaining an account that costs them more or isn't paid as agreed. They're in business; if they didn't charge those fees, everybody would pay late and the credit card business would be in trouble. Some fees are required so they can continue to give their best deals to people who have proven themselves with an excellent credit history. Some fees take advantage of people who are trying to establish their credit, one little mistake and you could be hit with fee after fee. Be aware of any and all fees that could be assessed before you use your card.
Saving With An Airline Credit Card
Saving With An Airline Credit Card
by Tom Tessin
So, you've finally sat back and realized that you travel a lot via the big old blue sky. Whether you travel a lot via pleasure or strictly business or maybe even both, maybe you haven't realized that you can truly save money by applying for an airline credit card. The benefits of an airline credit are beyond belief and you would be silly not to apply for one.
An airline credit card works like most credit cards but instead solely focuses on a particular airline or even some focus on travel itself. What you'll find with most travel credit cards is that you won't get as many points or benefits as compared to a credit card that focuses on an airline itself. Most major airline companies carry credit cards in their name such as Northwest airlines, Delta airlines, southwest, and the list continues to go on. If you're loyal to a particular company, it's almost one hundred percent positive that a credit card is in their name.
Airline credit cards are very simple to understand. Every time you spend money with it, you'll simply get a mile. Most credit cards vary but a lot of the times, you will find that one dollar will equal one mile. As you rack up the miles, you will then be able to turn your points in for an airline ticket for a destination of your choice. It will work as if you're buying an airline ticket. You're able to pick the time, date, etc and where you want to go. It really works to the consumers advantages.
The nice thing about these types of credit cards is the perks that they offer in general. Most airliners will offer to give you bonuses when you buy your ticket directly from them with your credit card. This means that sometimes you'll be able to get double, triple, and sometimes even more for your points. This means that there will be more miles in your pocket. This is why it's important that you carry a particular airline credit card because some travel credit cards don't allow you to get bonuses like this which can be a huge downfall.
Whenever you use your airline credit card, you may find that the more you use it, the higher up you move on the airline's status chart. If you haven't been to an airport at all or lately, you'll notice that there are certain statuses like gold, platinum, silver, etc. How do they determine the status you might ask? The answer is quite simple. The more you fly the more perks you get. These perks may include complimentary plane tickets, first class upgrades, and more.
If you haven't looked into a credit card that focuses on your airline, I would highly suggest doing it. A lot of these cards carry no annual fee and a majority of them will give you a free ticket when you sign up. It's like getting something for nothing. It's worth a shot and if you travel a lot and want to save money and get tons of perks, an airline credit card is for you!
by Tom Tessin
So, you've finally sat back and realized that you travel a lot via the big old blue sky. Whether you travel a lot via pleasure or strictly business or maybe even both, maybe you haven't realized that you can truly save money by applying for an airline credit card. The benefits of an airline credit are beyond belief and you would be silly not to apply for one.
An airline credit card works like most credit cards but instead solely focuses on a particular airline or even some focus on travel itself. What you'll find with most travel credit cards is that you won't get as many points or benefits as compared to a credit card that focuses on an airline itself. Most major airline companies carry credit cards in their name such as Northwest airlines, Delta airlines, southwest, and the list continues to go on. If you're loyal to a particular company, it's almost one hundred percent positive that a credit card is in their name.
Airline credit cards are very simple to understand. Every time you spend money with it, you'll simply get a mile. Most credit cards vary but a lot of the times, you will find that one dollar will equal one mile. As you rack up the miles, you will then be able to turn your points in for an airline ticket for a destination of your choice. It will work as if you're buying an airline ticket. You're able to pick the time, date, etc and where you want to go. It really works to the consumers advantages.
The nice thing about these types of credit cards is the perks that they offer in general. Most airliners will offer to give you bonuses when you buy your ticket directly from them with your credit card. This means that sometimes you'll be able to get double, triple, and sometimes even more for your points. This means that there will be more miles in your pocket. This is why it's important that you carry a particular airline credit card because some travel credit cards don't allow you to get bonuses like this which can be a huge downfall.
Whenever you use your airline credit card, you may find that the more you use it, the higher up you move on the airline's status chart. If you haven't been to an airport at all or lately, you'll notice that there are certain statuses like gold, platinum, silver, etc. How do they determine the status you might ask? The answer is quite simple. The more you fly the more perks you get. These perks may include complimentary plane tickets, first class upgrades, and more.
If you haven't looked into a credit card that focuses on your airline, I would highly suggest doing it. A lot of these cards carry no annual fee and a majority of them will give you a free ticket when you sign up. It's like getting something for nothing. It's worth a shot and if you travel a lot and want to save money and get tons of perks, an airline credit card is for you!
Thursday, March 19, 2009
Choosing the Best Credit Card Offers to Meet Your Needs
Choosing the Best Credit Card Offers to Meet Your Needs
by Noreen Ruth
With card offers filling up your mailbox and every retailer ready to have you fill out at application, how do you choose what's best for you? The following explains some of the benefits of the various offers to help you decide.
Standard Credit Cards
These are your run of the mill credit cards--unsecured and available from almost every bank or financial institution. The interest you'll pay to use these cards varies depending on your credit history and how you plan to use it. A low interest introductory period is often offered to catch your eye. This can be an advantage when you make a large purchase because it gives you time to pay it off at a lower rate. Be sure you understand how the rates and fees will increase after the introductory period as stated in the terms and conditions.
Reward Program Cards
There's a reward program for just about every interest, hobby or business--from airlines to telephone companies. The typical reward program pays 1% cash back or equivalent value in a gift card or merchandise. Additional rewards are sometimes given for purchasing from the issuing or select merchants. For example: purchasing from Amazon.com with an Amazon credit card earns double the reward points. Airlines offer points to be redeemed for airline travel. Due to the cost of running such programs an annual fee is often applied to the card. Be sure to read the terms and conditions to reap all the benefits of being enrolled in the program. Reward credit cards are a great deal for those who pay off their balances each month as its like money in the bank.
Balance Transfers
Balance transfers are another gimmick offered for a savings to you, as long as you understand the terms and conditions. If you transfer a balance from a high interest rate credit card to the lower rate card offered, there is usually a transfer fee and sometimes a time limit at the lower interest rate. Be sure that you're really benefiting by adding all the costs up before you make the transfer.
Cards for Consumers with Bad Credit
The easiest credit card to qualify for to help rebuild or repair a damaged credit rating is the secured credit card. Collateral of some sort, whether a security deposit, jewelry, stocks or other items of value, is used as a security deposit against the credit amount being applied for. Typically, the value of the item needs to be of equal or greater value than the amount being borrowed. A low credit line of less that $250 is often available to those who need help rebuilding. These carry additional charges and penalties but can help you overcome the credibility problem you may have with lenders and get your credit back on track.
Prepaid Credit Cards
One last consideration in handling a bad credit situation is the prepaid credit card. These work like a debit card in that the amount available is already secured by having paid upfront. The risk of running up your debt is eliminated by using these cards. However, there are fees that may apply such as startup, over limit, ATM and more. Be sure to read the terms and conditions carefully.
Specialty Credit Cards
Business cards are specialty credit cards offered to meet special credit needs of businesses. Like traditional cards they offer rewards, low intro rates, balance transfers, etc. There are additional benefits that may make these offers attractive: additional cards for employees, business rewards, separate expense reports for business and personal purchases and higher credit limits. Student cards are offered to begin the process of building a healthy credit history. The credit limit is kept low to help the first time card user become accustomed to a monthly pay-off or payment.
by Noreen Ruth
With card offers filling up your mailbox and every retailer ready to have you fill out at application, how do you choose what's best for you? The following explains some of the benefits of the various offers to help you decide.
Standard Credit Cards
These are your run of the mill credit cards--unsecured and available from almost every bank or financial institution. The interest you'll pay to use these cards varies depending on your credit history and how you plan to use it. A low interest introductory period is often offered to catch your eye. This can be an advantage when you make a large purchase because it gives you time to pay it off at a lower rate. Be sure you understand how the rates and fees will increase after the introductory period as stated in the terms and conditions.
Reward Program Cards
There's a reward program for just about every interest, hobby or business--from airlines to telephone companies. The typical reward program pays 1% cash back or equivalent value in a gift card or merchandise. Additional rewards are sometimes given for purchasing from the issuing or select merchants. For example: purchasing from Amazon.com with an Amazon credit card earns double the reward points. Airlines offer points to be redeemed for airline travel. Due to the cost of running such programs an annual fee is often applied to the card. Be sure to read the terms and conditions to reap all the benefits of being enrolled in the program. Reward credit cards are a great deal for those who pay off their balances each month as its like money in the bank.
Balance Transfers
Balance transfers are another gimmick offered for a savings to you, as long as you understand the terms and conditions. If you transfer a balance from a high interest rate credit card to the lower rate card offered, there is usually a transfer fee and sometimes a time limit at the lower interest rate. Be sure that you're really benefiting by adding all the costs up before you make the transfer.
Cards for Consumers with Bad Credit
The easiest credit card to qualify for to help rebuild or repair a damaged credit rating is the secured credit card. Collateral of some sort, whether a security deposit, jewelry, stocks or other items of value, is used as a security deposit against the credit amount being applied for. Typically, the value of the item needs to be of equal or greater value than the amount being borrowed. A low credit line of less that $250 is often available to those who need help rebuilding. These carry additional charges and penalties but can help you overcome the credibility problem you may have with lenders and get your credit back on track.
Prepaid Credit Cards
One last consideration in handling a bad credit situation is the prepaid credit card. These work like a debit card in that the amount available is already secured by having paid upfront. The risk of running up your debt is eliminated by using these cards. However, there are fees that may apply such as startup, over limit, ATM and more. Be sure to read the terms and conditions carefully.
Specialty Credit Cards
Business cards are specialty credit cards offered to meet special credit needs of businesses. Like traditional cards they offer rewards, low intro rates, balance transfers, etc. There are additional benefits that may make these offers attractive: additional cards for employees, business rewards, separate expense reports for business and personal purchases and higher credit limits. Student cards are offered to begin the process of building a healthy credit history. The credit limit is kept low to help the first time card user become accustomed to a monthly pay-off or payment.
Choosing the Best Credit Card Offers to Meet Your Needs
Choosing the Best Credit Card Offers to Meet Your Needs
by Noreen Ruth
So, you've finally sat back and realized that you travel a lot via the big old blue sky. Whether you travel a lot via pleasure or strictly business or maybe even both, maybe you haven't realized that you can truly save money by applying for an airline credit card. The benefits of an airline credit are beyond belief and you would be silly not to apply for one.
An airline credit card works like most credit cards but instead solely focuses on a particular airline or even some focus on travel itself. What you'll find with most travel credit cards is that you won't get as many points or benefits as compared to a credit card that focuses on an airline itself. Most major airline companies carry credit cards in their name such as Northwest airlines, Delta airlines, southwest, and the list continues to go on. If you're loyal to a particular company, it's almost one hundred percent positive that a credit card is in their name.
Airline credit cards are very simple to understand. Every time you spend money with it, you'll simply get a mile. Most credit cards vary but a lot of the times, you will find that one dollar will equal one mile. As you rack up the miles, you will then be able to turn your points in for an airline ticket for a destination of your choice. It will work as if you're buying an airline ticket. You're able to pick the time, date, etc and where you want to go. It really works to the consumers advantages.
The nice thing about these types of credit cards is the perks that they offer in general. Most airliners will offer to give you bonuses when you buy your ticket directly from them with your credit card. This means that sometimes you'll be able to get double, triple, and sometimes even more for your points. This means that there will be more miles in your pocket. This is why it's important that you carry a particular airline credit card because some travel credit cards don't allow you to get bonuses like this which can be a huge downfall.
Whenever you use your airline credit card, you may find that the more you use it, the higher up you move on the airline's status chart. If you haven't been to an airport at all or lately, you'll notice that there are certain statuses like gold, platinum, silver, etc. How do they determine the status you might ask? The answer is quite simple. The more you fly the more perks you get. These perks may include complimentary plane tickets, first class upgrades, and more.
If you haven't looked into a credit card that focuses on your airline, I would highly suggest doing it. A lot of these cards carry no annual fee and a majority of them will give you a free ticket when you sign up. It's like getting something for nothing. It's worth a shot and if you travel a lot and want to save money and get tons of perks, an airline credit card is for you!
by Noreen Ruth
So, you've finally sat back and realized that you travel a lot via the big old blue sky. Whether you travel a lot via pleasure or strictly business or maybe even both, maybe you haven't realized that you can truly save money by applying for an airline credit card. The benefits of an airline credit are beyond belief and you would be silly not to apply for one.
An airline credit card works like most credit cards but instead solely focuses on a particular airline or even some focus on travel itself. What you'll find with most travel credit cards is that you won't get as many points or benefits as compared to a credit card that focuses on an airline itself. Most major airline companies carry credit cards in their name such as Northwest airlines, Delta airlines, southwest, and the list continues to go on. If you're loyal to a particular company, it's almost one hundred percent positive that a credit card is in their name.
Airline credit cards are very simple to understand. Every time you spend money with it, you'll simply get a mile. Most credit cards vary but a lot of the times, you will find that one dollar will equal one mile. As you rack up the miles, you will then be able to turn your points in for an airline ticket for a destination of your choice. It will work as if you're buying an airline ticket. You're able to pick the time, date, etc and where you want to go. It really works to the consumers advantages.
The nice thing about these types of credit cards is the perks that they offer in general. Most airliners will offer to give you bonuses when you buy your ticket directly from them with your credit card. This means that sometimes you'll be able to get double, triple, and sometimes even more for your points. This means that there will be more miles in your pocket. This is why it's important that you carry a particular airline credit card because some travel credit cards don't allow you to get bonuses like this which can be a huge downfall.
Whenever you use your airline credit card, you may find that the more you use it, the higher up you move on the airline's status chart. If you haven't been to an airport at all or lately, you'll notice that there are certain statuses like gold, platinum, silver, etc. How do they determine the status you might ask? The answer is quite simple. The more you fly the more perks you get. These perks may include complimentary plane tickets, first class upgrades, and more.
If you haven't looked into a credit card that focuses on your airline, I would highly suggest doing it. A lot of these cards carry no annual fee and a majority of them will give you a free ticket when you sign up. It's like getting something for nothing. It's worth a shot and if you travel a lot and want to save money and get tons of perks, an airline credit card is for you!
How To Choose and Use Credit Cards
How To Choose and Use Credit Cards
by sas_upena1
Credit Card Terms
A credit card is a form of borrowing that often involves charges. Credit terms and conditions affect your overall cost. So it's wise to compare terms and fees before you agree to open a credit or charge card account.
The following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application. You also may want to ask about these terms when you're shopping for a card.
Annual Percentage Rate. The APR is a measure of the cost of credit, expressed as a yearly rate. It also must be disclosed before you become obligated on the account and on your account statements.
The card issuer also must disclose the "periodic rate" - the rate applied to your outstanding balance to figure the finance charge for each billing period.
Some credit card plans allow the issuer to change your APR when interest rates or other economic indicators - called indexes - change. Because the rate change is linked to the index's performance, these plans are called "variable rate" programs. Rate changes raise or lower the finance charge on your account. If you're considering a variable rate card, the issuer must also provide various information that discloses to you:
* that the rate may change; and * how the rate is determined - which index is used and what additional amount, the "margin," is added to determine your new rate.
At the latest, you also must receive information, before you become obligated on the account, about any limitations on how much and how often your rate may change.
Free Period. Also called a "grace period," a free period lets you avoid finance charges by paying your balance in full before the due date. Knowing whether a card gives you a free period is especially important if you plan to pay your account in full each month. Without a free period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account. If your card includes a free period, the issuer must mail your bill at least 14 days before the due date so you'll have enough time to pay.
Annual Fees. Most issuers charge annual membership or participation fees. They often range from $25 to $50, sometimes up to $100; "gold" or "platinum" cards often charge up to $75 and sometimes up to several hundred dollars.
Transaction Fees and Other Charges. A card may include other costs. Some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. Some charge a monthly fee whether or not you use the card.
Balance Computation Method for the Finance Charge. If you don't have a free period, or if you expect to pay for purchases over time, it's important to know what method the issuer uses to calculate your finance charge. This can make a big difference in how much of a finance charge you'll pay - even if the APR and your buying patterns remain relatively constant.
Examples of balance computation methods include the following.
Average Daily Balance. This is the most common calculation method. It credits your account from the day payment is received by the issuer. To figure the balance due, the issuer totals the beginning balance for each day in the billing period and subtracts any credits made to your account that day. While new purchases may or may not be added to the balance, depending on your plan, cash advances typically are included. The resulting daily balances are added for the billing cycle. The total is then divided by the number of days in the billing period to get the "average daily balance."
Adjusted Balance. This is usually the most advantageous method for card holders. Your balance is determined by subtracting payments or credits received during the current billing period from the balance at the end of the previous billing period. Purchases made during the billing period aren't included.
This method gives you until the end of the billing cycle to pay a portion of your balance to avoid the interest charges on that amount. Some creditors exclude prior, unpaid finance charges from the previous balance. Previous Balance. This is the amount you owed at the end of the previous billing period. Payments, credits and new purchases during the current billing period are not included. Some creditors also exclude unpaid finance charges.
Two-cycle Balances. Issuers sometimes use various methods to calculate your balance that make use of your last two month's account activity. Read your agreement carefully to find out if your issuer uses this approach and, if so, what specific two-cycle method is used.
If you don't understand how your balance is calculated, ask your card issuer. An explanation must also appear on your billing statements.
Other Costs and Features
Credit terms vary among issuers. When shopping for a card, think about how you plan to use it. If you expect to pay your bills in full each month, the annual fee and other charges may be more important than the periodic rate and the APR, if there is a grace period for purchases. However, if you use the cash advance feature, many cards do not permit a grace period for the amounts due - even if they have a grace period for purchases. So, it may still be wise to consider the APR and balance computation method. Also, if you plan to pay for purchases over time, the APR and the balance computation method are definitely major considerations.
You'll probably also want to consider if the credit limit is high enough, how widely the card is accepted, and the plan's services and features. For example, you may be interested in "affinity cards" - all-purpose credit cards sponsored by professional organizations, college alumni associations and some members of the travel industry. An affinity card issuer often donates a portion of the annual fees or charges to the sponsoring organization, or qualifies you for free travel or other bonuses.
Special Delinquency Rates. Some cards with low rates for on-time payments apply a very high APR if you are late a certain number of times in any specified time period. These rates sometimes exceed 20 percent. Information about delinquency rates should be disclosed to you in credit card applications or in solicitations that do not require an application.
Shopping Tips
Keep these tips in mind when looking for a credit or charge card. * Shop around for the plan that best fits your needs. * Make sure you understand a plan's terms before you accept the card. * Hold on to receipts to reconcile charges when your bill arrives. * Protect your cards and account numbers to prevent unauthorized use. Draw a line through blank spaces on charge slips so the amount can't be changed. Tear up carbons. * Keep a record - in a safe place separate from your cards - of your account numbers, expiration dates and the phone numbers of each issuer to report a loss quickly. * Carry only the cards you think you'll use.
by sas_upena1
Credit Card Terms
A credit card is a form of borrowing that often involves charges. Credit terms and conditions affect your overall cost. So it's wise to compare terms and fees before you agree to open a credit or charge card account.
The following are some important terms to consider that generally must be disclosed in credit card applications or in solicitations that require no application. You also may want to ask about these terms when you're shopping for a card.
Annual Percentage Rate. The APR is a measure of the cost of credit, expressed as a yearly rate. It also must be disclosed before you become obligated on the account and on your account statements.
The card issuer also must disclose the "periodic rate" - the rate applied to your outstanding balance to figure the finance charge for each billing period.
Some credit card plans allow the issuer to change your APR when interest rates or other economic indicators - called indexes - change. Because the rate change is linked to the index's performance, these plans are called "variable rate" programs. Rate changes raise or lower the finance charge on your account. If you're considering a variable rate card, the issuer must also provide various information that discloses to you:
* that the rate may change; and * how the rate is determined - which index is used and what additional amount, the "margin," is added to determine your new rate.
At the latest, you also must receive information, before you become obligated on the account, about any limitations on how much and how often your rate may change.
Free Period. Also called a "grace period," a free period lets you avoid finance charges by paying your balance in full before the due date. Knowing whether a card gives you a free period is especially important if you plan to pay your account in full each month. Without a free period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account. If your card includes a free period, the issuer must mail your bill at least 14 days before the due date so you'll have enough time to pay.
Annual Fees. Most issuers charge annual membership or participation fees. They often range from $25 to $50, sometimes up to $100; "gold" or "platinum" cards often charge up to $75 and sometimes up to several hundred dollars.
Transaction Fees and Other Charges. A card may include other costs. Some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. Some charge a monthly fee whether or not you use the card.
Balance Computation Method for the Finance Charge. If you don't have a free period, or if you expect to pay for purchases over time, it's important to know what method the issuer uses to calculate your finance charge. This can make a big difference in how much of a finance charge you'll pay - even if the APR and your buying patterns remain relatively constant.
Examples of balance computation methods include the following.
Average Daily Balance. This is the most common calculation method. It credits your account from the day payment is received by the issuer. To figure the balance due, the issuer totals the beginning balance for each day in the billing period and subtracts any credits made to your account that day. While new purchases may or may not be added to the balance, depending on your plan, cash advances typically are included. The resulting daily balances are added for the billing cycle. The total is then divided by the number of days in the billing period to get the "average daily balance."
Adjusted Balance. This is usually the most advantageous method for card holders. Your balance is determined by subtracting payments or credits received during the current billing period from the balance at the end of the previous billing period. Purchases made during the billing period aren't included.
This method gives you until the end of the billing cycle to pay a portion of your balance to avoid the interest charges on that amount. Some creditors exclude prior, unpaid finance charges from the previous balance. Previous Balance. This is the amount you owed at the end of the previous billing period. Payments, credits and new purchases during the current billing period are not included. Some creditors also exclude unpaid finance charges.
Two-cycle Balances. Issuers sometimes use various methods to calculate your balance that make use of your last two month's account activity. Read your agreement carefully to find out if your issuer uses this approach and, if so, what specific two-cycle method is used.
If you don't understand how your balance is calculated, ask your card issuer. An explanation must also appear on your billing statements.
Other Costs and Features
Credit terms vary among issuers. When shopping for a card, think about how you plan to use it. If you expect to pay your bills in full each month, the annual fee and other charges may be more important than the periodic rate and the APR, if there is a grace period for purchases. However, if you use the cash advance feature, many cards do not permit a grace period for the amounts due - even if they have a grace period for purchases. So, it may still be wise to consider the APR and balance computation method. Also, if you plan to pay for purchases over time, the APR and the balance computation method are definitely major considerations.
You'll probably also want to consider if the credit limit is high enough, how widely the card is accepted, and the plan's services and features. For example, you may be interested in "affinity cards" - all-purpose credit cards sponsored by professional organizations, college alumni associations and some members of the travel industry. An affinity card issuer often donates a portion of the annual fees or charges to the sponsoring organization, or qualifies you for free travel or other bonuses.
Special Delinquency Rates. Some cards with low rates for on-time payments apply a very high APR if you are late a certain number of times in any specified time period. These rates sometimes exceed 20 percent. Information about delinquency rates should be disclosed to you in credit card applications or in solicitations that do not require an application.
Shopping Tips
Keep these tips in mind when looking for a credit or charge card. * Shop around for the plan that best fits your needs. * Make sure you understand a plan's terms before you accept the card. * Hold on to receipts to reconcile charges when your bill arrives. * Protect your cards and account numbers to prevent unauthorized use. Draw a line through blank spaces on charge slips so the amount can't be changed. Tear up carbons. * Keep a record - in a safe place separate from your cards - of your account numbers, expiration dates and the phone numbers of each issuer to report a loss quickly. * Carry only the cards you think you'll use.
Start an Ebay Buyer Account Without a Credit Card
Start an Ebay Buyer Account Without a Credit Card
by Lisa Page
Ebay just wants to verify you are who, you say you are. I have even seen ebay lock up someones account, until they show ebay proof of who you are. Fraudulent accounts are everywhere on ebay, so they have to take measures to assure nobody gets ripped off.
If you are in the USA, you need to start an account with an email address you pay for. Your ISP email address should be used when you sign up for an ebay buyer account. Don't use free email addresses such as yahoo, msn, hotmail, google etc. If you open a buyer account with a free email address, ebay will make you enter a credit card for verification purposes. So, don't use a free email address when you sign up for a buyer account and ebay will never ask for a credit card number. Use your ISP email address when you sign up.
If you are outside the USA, give your correct phone number and ebay will call you with a pin number to verify you are who you say you are. Enter the pin number into your ebay account and you will be automatically verified for a buyer account. You won't have to enter a credit card number if you give your correct phone number for verification purposes.
It's as easy as that. Both of these methods work for everyone around the world. Now you know how to make a buyer account without using a credit card. Ebay has to ask for some kind of identity verification. Thousands of people sign up for ebay everyday just to rip people off. One fraudulent ebay account is opened every minute on average. So don't blame ebay for taking these measured steps. They are only trying to protect your identity. In today's age of identity theft, be thankful that someone is trying to help you.
Remember to be careful. Ebay will never ask for your personal information through an email. They will never ask you to sign in to your account directly from an email. Don't be fooled by the fake ebay scam and phishing emails. Protect your identity at all costs.
by Lisa Page
Ebay just wants to verify you are who, you say you are. I have even seen ebay lock up someones account, until they show ebay proof of who you are. Fraudulent accounts are everywhere on ebay, so they have to take measures to assure nobody gets ripped off.
If you are in the USA, you need to start an account with an email address you pay for. Your ISP email address should be used when you sign up for an ebay buyer account. Don't use free email addresses such as yahoo, msn, hotmail, google etc. If you open a buyer account with a free email address, ebay will make you enter a credit card for verification purposes. So, don't use a free email address when you sign up for a buyer account and ebay will never ask for a credit card number. Use your ISP email address when you sign up.
If you are outside the USA, give your correct phone number and ebay will call you with a pin number to verify you are who you say you are. Enter the pin number into your ebay account and you will be automatically verified for a buyer account. You won't have to enter a credit card number if you give your correct phone number for verification purposes.
It's as easy as that. Both of these methods work for everyone around the world. Now you know how to make a buyer account without using a credit card. Ebay has to ask for some kind of identity verification. Thousands of people sign up for ebay everyday just to rip people off. One fraudulent ebay account is opened every minute on average. So don't blame ebay for taking these measured steps. They are only trying to protect your identity. In today's age of identity theft, be thankful that someone is trying to help you.
Remember to be careful. Ebay will never ask for your personal information through an email. They will never ask you to sign in to your account directly from an email. Don't be fooled by the fake ebay scam and phishing emails. Protect your identity at all costs.
Understanding Prepaid Credit Cards
Understanding Prepaid Credit Cards
by Tina Porter
If your credit is poor or severely damaged then you are fully aware of how difficult it can be to obtain a credit card, even one that is secured. You also know that in this day and age it is a necessity to have one. Do not worry. There is a solution to this problem.
Prepaid credit cards can give you the spending freedom that you need without being bound by any type of contract. They are easy to set up and use. All you need to do is open and deposit money into an account with a company that offers them. You control what the limit is because you are the one supplying the funds.The amount you deposit is the amount you have available. You do not have to worry about receiving a monthly bill because you do not owe any money. You will not be charged interest or finance fees because you are not borrowing any money. There is no chance of you ever being late with a payment or going over the limit. Once the balance on your card reaches zero you will no longer be able to use it until you deposit more money into your account, which you do at your own convenience.
It is important to note that these cards also have several limitations. Technically, they are the same as debit cards with the exception that they are not tied to your personal checking or savings account. Your payment history is not monitored so your credit rating will never be affected by them. Also, many companies will charge you a fee to open or deposit money into a prepaid account with them. This fee is usually around $5 or $10. It would be cheaper to open a no cost checking or savings account that automatically comes with a free debit card. Finally, you may find that you are not able to use a prepaid credit card for reoccurring charges, such as a phone bill, Internet subscription, or cable bill. Many companies refuse to accept them for these types of transactions because there is always the chance that the money won't be there when it is time to withdraw it.
A Prepaid credit card works exactly like a normal credit card without all of the hassle. You have total control over every aspect of it, including the limit and availability of funds. While it will not eliminate the damage that is already done to your personal record, it will give you the freedom to purchase those items that you might not be able to buy with cash.
by Tina Porter
If your credit is poor or severely damaged then you are fully aware of how difficult it can be to obtain a credit card, even one that is secured. You also know that in this day and age it is a necessity to have one. Do not worry. There is a solution to this problem.
Prepaid credit cards can give you the spending freedom that you need without being bound by any type of contract. They are easy to set up and use. All you need to do is open and deposit money into an account with a company that offers them. You control what the limit is because you are the one supplying the funds.The amount you deposit is the amount you have available. You do not have to worry about receiving a monthly bill because you do not owe any money. You will not be charged interest or finance fees because you are not borrowing any money. There is no chance of you ever being late with a payment or going over the limit. Once the balance on your card reaches zero you will no longer be able to use it until you deposit more money into your account, which you do at your own convenience.
It is important to note that these cards also have several limitations. Technically, they are the same as debit cards with the exception that they are not tied to your personal checking or savings account. Your payment history is not monitored so your credit rating will never be affected by them. Also, many companies will charge you a fee to open or deposit money into a prepaid account with them. This fee is usually around $5 or $10. It would be cheaper to open a no cost checking or savings account that automatically comes with a free debit card. Finally, you may find that you are not able to use a prepaid credit card for reoccurring charges, such as a phone bill, Internet subscription, or cable bill. Many companies refuse to accept them for these types of transactions because there is always the chance that the money won't be there when it is time to withdraw it.
A Prepaid credit card works exactly like a normal credit card without all of the hassle. You have total control over every aspect of it, including the limit and availability of funds. While it will not eliminate the damage that is already done to your personal record, it will give you the freedom to purchase those items that you might not be able to buy with cash.
Monday, March 16, 2009
Credit Cards And Your Happy Life
Credit Cards And Your Happy Life
by Ajeet Khurana
Credits Cards have greatly changed the way that we all do business. Shopping both online and offline has become exponentially easier through the intelligent use of credit cards. This only works under the right circumstances though, since reckless credit card use can easily ring up quite a debt that may be very difficult to pay back.
The best aspect of credit cards is obviously the way that they can make your life easier. Travel has been made much easier through the development of the credit card as a part of modern life. It doesn't matter if you're going to Melbourne or London. Any trip near or far will be easier if you have a good credit card at your disposal. Do you really want to carry all of your vacation money in cash or annoying traveler's checks? You want a credit card.
Even daily business will be easier through credit cards. You can just use your credit card as a type of smart debit account. You can easily charge your daily purchases or take advantage of that big sale and then just pay off most or all of the debt at the end of the month. You'll ultimately have the best of both worlds. Shopping will be easier, you will still get everything that you want, and if done correctly, you won't build up any significant amount of credit card debt.
Shopping online is only possible through a good credit card account. There are going to be a lot of times when you aren't going to want to leave the house. In times of swelteringly hot temperatures or stunning gas prices, you would greatly benefit from being able to buy a new book or a DVD on your card. Then, you'll just have a few days to wait until it is in your hands and ready to go.
Using a credit card properly also requires a whole lot of common sense. It may seem like you won't have any problems with your credit card when you first get it, but the debt can add up very quickly. The idea of the seemingly limitless pit of credit available to you may be a little bit too convenient at times. You have to remember that building up a debt to take advantage of a sale is not always a good idea.
If you can't take care of it quickly, the interest acquired will easily make the savings from the sale worthless. Add to that the really terrible interest rates that can quickly multiple a small debt into a large one, and you will have a serious problem.
In the end, you just have to really take a look at what you want from your credit card. If you want a good financial state, you should focus on just using it for convenience. It really isn't a good idea to see it as a huge loan, since you could probably get a loan for a cheaper interest rate.
But, if you keep that in mind, you can live in the best of both worlds. You can have the convenience of a credit card with the benefit of not having to build up a large debt.
by Ajeet Khurana
Credits Cards have greatly changed the way that we all do business. Shopping both online and offline has become exponentially easier through the intelligent use of credit cards. This only works under the right circumstances though, since reckless credit card use can easily ring up quite a debt that may be very difficult to pay back.
The best aspect of credit cards is obviously the way that they can make your life easier. Travel has been made much easier through the development of the credit card as a part of modern life. It doesn't matter if you're going to Melbourne or London. Any trip near or far will be easier if you have a good credit card at your disposal. Do you really want to carry all of your vacation money in cash or annoying traveler's checks? You want a credit card.
Even daily business will be easier through credit cards. You can just use your credit card as a type of smart debit account. You can easily charge your daily purchases or take advantage of that big sale and then just pay off most or all of the debt at the end of the month. You'll ultimately have the best of both worlds. Shopping will be easier, you will still get everything that you want, and if done correctly, you won't build up any significant amount of credit card debt.
Shopping online is only possible through a good credit card account. There are going to be a lot of times when you aren't going to want to leave the house. In times of swelteringly hot temperatures or stunning gas prices, you would greatly benefit from being able to buy a new book or a DVD on your card. Then, you'll just have a few days to wait until it is in your hands and ready to go.
Using a credit card properly also requires a whole lot of common sense. It may seem like you won't have any problems with your credit card when you first get it, but the debt can add up very quickly. The idea of the seemingly limitless pit of credit available to you may be a little bit too convenient at times. You have to remember that building up a debt to take advantage of a sale is not always a good idea.
If you can't take care of it quickly, the interest acquired will easily make the savings from the sale worthless. Add to that the really terrible interest rates that can quickly multiple a small debt into a large one, and you will have a serious problem.
In the end, you just have to really take a look at what you want from your credit card. If you want a good financial state, you should focus on just using it for convenience. It really isn't a good idea to see it as a huge loan, since you could probably get a loan for a cheaper interest rate.
But, if you keep that in mind, you can live in the best of both worlds. You can have the convenience of a credit card with the benefit of not having to build up a large debt.
Credit Cards - Avoid Overspending at Christmas
Credit Cards - Avoid Overspending at Christmas
by David Collins
A recent survey has suggested that around half of us will spend more than we mean to over the festive season.
With demand for high-quality technological goods such as the Wii dominating the Christmas sales, for some it could prove to be a very expensive holiday season.
But it's not only presents that can contribute to festive debt, there's the outfit for the office party and the food for Christmas dinner - all of which can put strain on us and our wallets.
Then the New Year arrives, which brings even more worries as we then try and budget to pay off our credit cards and store cards.
However there are a few steps you can take to ensure that your festive spending doesn't go over budget:
Draw up a budget before the holiday season - work out how much ready cash and savings you have available and try and budget to within your cash limit, rather than opting for a credit card or breaking into your overdraft.
Take into account all the factors of Christmas - including clothes, food and decorations - and work out how much you wish to allocate to each area.
Calculating a budget can also help with the shopping process, drawing up a list of gifts for each person and budgeting accordingly could eliminate those long and frustrating shopping trips.
Avoid the lure of store cards this Christmas, the offers may seem tempting at the checkout, but high interest rates will lead to you paying off much more in the New Year.
If you're going to use a credit card for purchases this Christmas, there are now a wide variety of 0% credit cards available, along with some that offer cash back on purchases, which could equate to the cost of a present - depending on how much you choose to spend.
Be careful when shopping online, it may eliminate the long checkout queues, but it can be all too easy to overspend - draw up another budget for online purchases if need be.
With more of us now having access to an internet connection and e-mail address, you can save yourself a little money on cards by sending e-cards to your family and friends. Some of which are animated and can be personalised in order to help bring a little festive humour to inboxes, whilst saving you money on postage.
by David Collins
A recent survey has suggested that around half of us will spend more than we mean to over the festive season.
With demand for high-quality technological goods such as the Wii dominating the Christmas sales, for some it could prove to be a very expensive holiday season.
But it's not only presents that can contribute to festive debt, there's the outfit for the office party and the food for Christmas dinner - all of which can put strain on us and our wallets.
Then the New Year arrives, which brings even more worries as we then try and budget to pay off our credit cards and store cards.
However there are a few steps you can take to ensure that your festive spending doesn't go over budget:
Draw up a budget before the holiday season - work out how much ready cash and savings you have available and try and budget to within your cash limit, rather than opting for a credit card or breaking into your overdraft.
Take into account all the factors of Christmas - including clothes, food and decorations - and work out how much you wish to allocate to each area.
Calculating a budget can also help with the shopping process, drawing up a list of gifts for each person and budgeting accordingly could eliminate those long and frustrating shopping trips.
Avoid the lure of store cards this Christmas, the offers may seem tempting at the checkout, but high interest rates will lead to you paying off much more in the New Year.
If you're going to use a credit card for purchases this Christmas, there are now a wide variety of 0% credit cards available, along with some that offer cash back on purchases, which could equate to the cost of a present - depending on how much you choose to spend.
Be careful when shopping online, it may eliminate the long checkout queues, but it can be all too easy to overspend - draw up another budget for online purchases if need be.
With more of us now having access to an internet connection and e-mail address, you can save yourself a little money on cards by sending e-cards to your family and friends. Some of which are animated and can be personalised in order to help bring a little festive humour to inboxes, whilst saving you money on postage.
Best Credit Card Deals
Best Credit Card Deals
by Mario Churchill
No matter where you search on the Internet today there are several advertisements for the best credit card deals. Some that offer low interest rates while others offer no payments for a year.
With so many credit cards available the best credit card deals are usually the ones that are offering incentives as well such as reward points, or air miles, anything of that nature.
However with the best credit cards available in such abundance it is actually rather hard to choose which one to go with. The best credit card values depend solely on what the credit card company has to offer so basically read the terms and the agreements and you should be able to come up with the best credit card deals.
If you own a company or a small business then obviously the best credit card deals for you would be those referenced for business. And these can be found simply by doing a search on the Internet. A note to the wise however, some of the best credit card deals have a catch so read up on them thoroughly.
Although, some of the best credit card deals actually come to your mailbox, offering different types secured, unsecured, or prepaid. In any case the best credit card deals are out there, you don't even have to look very hard for them.
In fact, another way to find out about the best credit card deals is through your email address, quite often credit card companies will send offers via the email account that you have placed on one advertising site or another.
If you aren't sure which credit card company has the best credit card deals then do a little research on the background of the company, compare different credit cards, believe me they are in abundance and used a lot today.
In all reality, the best credit card deals are those with low interest rates or fixed interest rates, those that offer points or cash back when you use the credit card, or those that are offered with minimal fees and requirements.
Nine times out of ten you will find the best credit card deals on the Internet through a search of some kind, whether you look up the actual name of a credit card provider or simply search unsecured or secured. Whatever your preference may be, the best credit cards will be listed among the results, however as previously stated, compare a few of the results to actually find the best credit card deal that suits your finances and your needs.
In most cases some of the best credit card deals even offer two credit cards one for you and one for you domestic partner, whichever the case may be.
Ultimately, the best credit card deals are out there just waiting for people to sign up for them. After the initial application is done, then if you are approved for whichever type of the best credit card deal you could find, then you should receive your credit card and after activation you will be using the plastic in no time.
by Mario Churchill
No matter where you search on the Internet today there are several advertisements for the best credit card deals. Some that offer low interest rates while others offer no payments for a year.
With so many credit cards available the best credit card deals are usually the ones that are offering incentives as well such as reward points, or air miles, anything of that nature.
However with the best credit cards available in such abundance it is actually rather hard to choose which one to go with. The best credit card values depend solely on what the credit card company has to offer so basically read the terms and the agreements and you should be able to come up with the best credit card deals.
If you own a company or a small business then obviously the best credit card deals for you would be those referenced for business. And these can be found simply by doing a search on the Internet. A note to the wise however, some of the best credit card deals have a catch so read up on them thoroughly.
Although, some of the best credit card deals actually come to your mailbox, offering different types secured, unsecured, or prepaid. In any case the best credit card deals are out there, you don't even have to look very hard for them.
In fact, another way to find out about the best credit card deals is through your email address, quite often credit card companies will send offers via the email account that you have placed on one advertising site or another.
If you aren't sure which credit card company has the best credit card deals then do a little research on the background of the company, compare different credit cards, believe me they are in abundance and used a lot today.
In all reality, the best credit card deals are those with low interest rates or fixed interest rates, those that offer points or cash back when you use the credit card, or those that are offered with minimal fees and requirements.
Nine times out of ten you will find the best credit card deals on the Internet through a search of some kind, whether you look up the actual name of a credit card provider or simply search unsecured or secured. Whatever your preference may be, the best credit cards will be listed among the results, however as previously stated, compare a few of the results to actually find the best credit card deal that suits your finances and your needs.
In most cases some of the best credit card deals even offer two credit cards one for you and one for you domestic partner, whichever the case may be.
Ultimately, the best credit card deals are out there just waiting for people to sign up for them. After the initial application is done, then if you are approved for whichever type of the best credit card deal you could find, then you should receive your credit card and after activation you will be using the plastic in no time.
Shopping Online With Credit Cards And Wholesale Items
Shopping Online With Credit Cards And Wholesale Items
by Victor Epand
Almost all of the online stores that I shop at require a credit card. I don't know of any that doesn't require one. The use of a credit card also helps protect you from any fraud in the case of not receiving what you ordered; shipment is lost during delivery, etc. Most credit card companies will cover this kind of stuff.
Looking partially to shop for things online and partially to sell things. But I guess both would stem from my buying things online, so I'll start there. I have a lot of wealthy friends who love to look for bargains, so I recently decided to try doing some sales. Anyway, I have looked all over the place and have found some interesting deals. Basically want to find a site somewhere that has very good wholesale prices, like maybe something that some type of dealers would use I guess, on a variety of things.
My friends, as well as myself, are interested in buying many different things. They are mostly interested in electronics, video games, sunglasses, and watches. I am interested in those as well as clothes. I want to find these at the best possible wholesale prices so I can order them and then resell them to others. I would not be keeping any inventory. People would just be telling me what they're interested in and I'll try to find a good deal on it, order it, and then mark the price up a bit and sell it to them, so I can make some profit but still give them a good deal. An added bonus would be if there were a phone number I could call to get a price for a specific item, as I am not always able to get to a computer or a catalog.
Generally speaking, the idea of buying things for wholesale, in other words, low, prices and retail them to your friends at street prices is good. You have a demand from your friends and you have the source where to buy the needed items. The problem is to keep the balance between the profits from the trade; sure you want it to be the highest possible, and the risk of loosing money-buying things on the Web at a very low price.
Online price may differ from merchant to merchant as much as. Two or three years ago there was a company that announced to be the first online merchant selling under wholesale price, it used the advertising model of profit. Despite of that, I found some items like cameras, I checked prices and found that they were cheaper at other companies on the web due to running promotion of those items. It is funny that very popular shopping, price comparison, does not detect the lowest price if this price corresponds to running promotion at merchants' site. To minimize the risk, it is very useful to evaluate the merchant where to buy. There are companies that do the job of merchants' ratings very well. If you find the lowest price, you'll be able to assess the merchant, for example, whether its customer service is good enough, to make the final decision.
As to me, I use the golden middle reasonable discounts and low risk. I have chosen about 200 merchants whose solidity I am aware of. You can do the same. Then I traced promotional offers (coupons) for those merchants. My profit was 20-30% with every sale and completely no problems with wrong orders and refurbished items. I found that a lot of purchase through my website is performed by customers ordering 5-10 of the same items at ones. Sure they were of your kind of guys making their own profit. There are a lot of people out there that like to do the same thing and just buy wholesale and sell them. But there are others out there that buy wholesale because they have a big family to feed or they are just on a set beget and that is the only way that they can get what they need for there family if they buy if wholesale. But like I said just go and look around and see what you come up with check out there web site get the name and then go from there.
by Victor Epand
Almost all of the online stores that I shop at require a credit card. I don't know of any that doesn't require one. The use of a credit card also helps protect you from any fraud in the case of not receiving what you ordered; shipment is lost during delivery, etc. Most credit card companies will cover this kind of stuff.
Looking partially to shop for things online and partially to sell things. But I guess both would stem from my buying things online, so I'll start there. I have a lot of wealthy friends who love to look for bargains, so I recently decided to try doing some sales. Anyway, I have looked all over the place and have found some interesting deals. Basically want to find a site somewhere that has very good wholesale prices, like maybe something that some type of dealers would use I guess, on a variety of things.
My friends, as well as myself, are interested in buying many different things. They are mostly interested in electronics, video games, sunglasses, and watches. I am interested in those as well as clothes. I want to find these at the best possible wholesale prices so I can order them and then resell them to others. I would not be keeping any inventory. People would just be telling me what they're interested in and I'll try to find a good deal on it, order it, and then mark the price up a bit and sell it to them, so I can make some profit but still give them a good deal. An added bonus would be if there were a phone number I could call to get a price for a specific item, as I am not always able to get to a computer or a catalog.
Generally speaking, the idea of buying things for wholesale, in other words, low, prices and retail them to your friends at street prices is good. You have a demand from your friends and you have the source where to buy the needed items. The problem is to keep the balance between the profits from the trade; sure you want it to be the highest possible, and the risk of loosing money-buying things on the Web at a very low price.
Online price may differ from merchant to merchant as much as. Two or three years ago there was a company that announced to be the first online merchant selling under wholesale price, it used the advertising model of profit. Despite of that, I found some items like cameras, I checked prices and found that they were cheaper at other companies on the web due to running promotion of those items. It is funny that very popular shopping, price comparison, does not detect the lowest price if this price corresponds to running promotion at merchants' site. To minimize the risk, it is very useful to evaluate the merchant where to buy. There are companies that do the job of merchants' ratings very well. If you find the lowest price, you'll be able to assess the merchant, for example, whether its customer service is good enough, to make the final decision.
As to me, I use the golden middle reasonable discounts and low risk. I have chosen about 200 merchants whose solidity I am aware of. You can do the same. Then I traced promotional offers (coupons) for those merchants. My profit was 20-30% with every sale and completely no problems with wrong orders and refurbished items. I found that a lot of purchase through my website is performed by customers ordering 5-10 of the same items at ones. Sure they were of your kind of guys making their own profit. There are a lot of people out there that like to do the same thing and just buy wholesale and sell them. But there are others out there that buy wholesale because they have a big family to feed or they are just on a set beget and that is the only way that they can get what they need for there family if they buy if wholesale. But like I said just go and look around and see what you come up with check out there web site get the name and then go from there.
Saturday, March 14, 2009
Rid Credit Card Debt
Rid Credit Card Debt
by Joe Smith
Tired of having to pay off your credit card every month for purchases you made months or even years ago? Exhausted with paying the bills when your credit balance seems to be at a standstill? Though charging your purchases and shopping spree to your credit card may be fun, the enjoyment that you feel will last only for sometime while the corresponding responsibility and liability on your part will continue to haunt you.
The principal function of a credit card is to make a purchase on credit in the event that you do not have the necessary cash with you. You can likewise use it if you are expecting some money to come your way but you need to make an immediate purpose at the moment. To the wise consumer, credit card should to be used for emergency purposes only. However, the use of the credit card has been subject to abuse like compulsive shopping free or impulse buying. Hence, it is a logical consequence that most people have credit card bills to pay every month.
You can erase your credit card debts and be free from the liability of paying every month. It is only a matter of discipline on your part. Determine your credit card balance and how much you are paying each month. Resist from increasing further your credit balance. There might be a need for you to increase the amount that you pay so that a substantial portion of your debts can be erased. If you do not have the extra money to add to your regular monthly payments, you may consider taking on a second job, the proceeds from which you will pay on your credit card. If you are a multiple credit card holder, it will be advisable to retire the one that charges the highest interest. Pay all your credit cards to avoid being harassed by your creditors. In the end, you will be able to pay off your credit card bills one by one and erase your debts.
by Joe Smith
Tired of having to pay off your credit card every month for purchases you made months or even years ago? Exhausted with paying the bills when your credit balance seems to be at a standstill? Though charging your purchases and shopping spree to your credit card may be fun, the enjoyment that you feel will last only for sometime while the corresponding responsibility and liability on your part will continue to haunt you.
The principal function of a credit card is to make a purchase on credit in the event that you do not have the necessary cash with you. You can likewise use it if you are expecting some money to come your way but you need to make an immediate purpose at the moment. To the wise consumer, credit card should to be used for emergency purposes only. However, the use of the credit card has been subject to abuse like compulsive shopping free or impulse buying. Hence, it is a logical consequence that most people have credit card bills to pay every month.
You can erase your credit card debts and be free from the liability of paying every month. It is only a matter of discipline on your part. Determine your credit card balance and how much you are paying each month. Resist from increasing further your credit balance. There might be a need for you to increase the amount that you pay so that a substantial portion of your debts can be erased. If you do not have the extra money to add to your regular monthly payments, you may consider taking on a second job, the proceeds from which you will pay on your credit card. If you are a multiple credit card holder, it will be advisable to retire the one that charges the highest interest. Pay all your credit cards to avoid being harassed by your creditors. In the end, you will be able to pay off your credit card bills one by one and erase your debts.
Economy, Banking, Credit Cards And Usury
Modern world recognize and use two sciences: mathematic and economy.
Long time ago, Albert Einstein said:
"The hardest thing in the world to understand is the income tax.
" For every action there is an equal but opposite reaction.
Interpretation of Einstein law is very simple:
Unfortunately, one of our two sciences is guilty for the worst crimes ever committed.
In simple terms the new money comes into circulation through the banking system, issued as a debt to the banking system.
This money is created out of thin air and is backed by nothing.
There is a significant difference between a nominal value and printing costs of the money.
Here we are talking about enormous profit, also called seigniorage.
What's worse, with fractional reserve banking like in Euro area, we have the same money in 50 different places at the same time.
In the case of money lending like this one, generated interest on initial deposit becomes unbelievable number.
It's not finished yet: You have to repay public debt, interests, inflation, other hidden taxes, and who knows what else...
Finally, world is full of enemies so you have to fight them before they have a chance to attack you.
It's a war that you're losing for twenty centuries.
What is hidden behind the Central Banks independence and autonomy ?
Privately owned corporations and lost of "democratic countries "monetary sovereignties ?
Some Little-Known Facts
- All revolutions have one common thing: no one changed a monetary system.
- Existence of Bilderberg, Trilateral Commission and similar organizations.
- On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal Reserve Bank would soon be out of business.
- On June 23, 2005, Former IRS CID Special Agent Joseph Banister has been acquitted of tax fraud and conspiracy. The government was unable to prove that US law requires income tax withholding or filing.
- On September 15, 2005, a Justice of the peace in the southern Italian town Lecce has decided that the Italian Central Bank's practice to retain the seignorage (signoraggio) on paper money for its own profit is illegal and that the money should be turned over to its rightful owners - the citizens of Italy.
- Existence of hundreds of trillions invented values of financial derivatives.
Negative Effects Of Credit Card
The magnetic strip was introduced in 1970 and ushered in the information age and the credit card industry boom which has driven this economy now for decades.
Though we don't have a debtor's prison as in the days of Babylonia, nor is usury lawful (though a good argument might be presented that it is from time to time), we do seem to have come full circle.
Remember all those farmers back 3000 years ago who went to prison and could not grow thereby starving there countryman ?
Well, what do you suppose drives our economy ?
It's credit.
And what horrible condition continues to rise in epidemic proportions as a result ?
It's bankruptcy.
Per an article Can You Afford It ?
The national balance on credit cards, auto, and other non-mortgage loans rose to a new record figure in April 2001 at $1.58 trillion.
Delinquent credit card payments (30 days past due) has risen to new high of 5% delinquency.
There is a 17.5% increase in the already staggering number of bankruptcies filed.
The credit card has been the single major pivot in creating a boom in bankruptcies.
Do you suppose it might be possible to have enough consumers declare bankruptcy so that the entire economy might implode upon itself ?
It did with the farmers in early civilizations.
I would say it is very possible when your castle is built of plastic.
Long time ago, Albert Einstein said:
"The hardest thing in the world to understand is the income tax.
" For every action there is an equal but opposite reaction.
Interpretation of Einstein law is very simple:
Unfortunately, one of our two sciences is guilty for the worst crimes ever committed.
In simple terms the new money comes into circulation through the banking system, issued as a debt to the banking system.
This money is created out of thin air and is backed by nothing.
There is a significant difference between a nominal value and printing costs of the money.
Here we are talking about enormous profit, also called seigniorage.
What's worse, with fractional reserve banking like in Euro area, we have the same money in 50 different places at the same time.
In the case of money lending like this one, generated interest on initial deposit becomes unbelievable number.
It's not finished yet: You have to repay public debt, interests, inflation, other hidden taxes, and who knows what else...
Finally, world is full of enemies so you have to fight them before they have a chance to attack you.
It's a war that you're losing for twenty centuries.
What is hidden behind the Central Banks independence and autonomy ?
Privately owned corporations and lost of "democratic countries "monetary sovereignties ?
Some Little-Known Facts
- All revolutions have one common thing: no one changed a monetary system.
- Existence of Bilderberg, Trilateral Commission and similar organizations.
- On June 4, 1963, a virtually unknown Presidential decree, Executive Order 11110, was signed with the authority to basically strip the Federal Reserve Bank of its power to loan money to the United States Federal Government at interest. With the stroke of a pen, President Kennedy declared that the privately owned Federal Reserve Bank would soon be out of business.
- On June 23, 2005, Former IRS CID Special Agent Joseph Banister has been acquitted of tax fraud and conspiracy. The government was unable to prove that US law requires income tax withholding or filing.
- On September 15, 2005, a Justice of the peace in the southern Italian town Lecce has decided that the Italian Central Bank's practice to retain the seignorage (signoraggio) on paper money for its own profit is illegal and that the money should be turned over to its rightful owners - the citizens of Italy.
- Existence of hundreds of trillions invented values of financial derivatives.
Negative Effects Of Credit Card
The magnetic strip was introduced in 1970 and ushered in the information age and the credit card industry boom which has driven this economy now for decades.
Though we don't have a debtor's prison as in the days of Babylonia, nor is usury lawful (though a good argument might be presented that it is from time to time), we do seem to have come full circle.
Remember all those farmers back 3000 years ago who went to prison and could not grow thereby starving there countryman ?
Well, what do you suppose drives our economy ?
It's credit.
And what horrible condition continues to rise in epidemic proportions as a result ?
It's bankruptcy.
Per an article Can You Afford It ?
The national balance on credit cards, auto, and other non-mortgage loans rose to a new record figure in April 2001 at $1.58 trillion.
Delinquent credit card payments (30 days past due) has risen to new high of 5% delinquency.
There is a 17.5% increase in the already staggering number of bankruptcies filed.
The credit card has been the single major pivot in creating a boom in bankruptcies.
Do you suppose it might be possible to have enough consumers declare bankruptcy so that the entire economy might implode upon itself ?
It did with the farmers in early civilizations.
I would say it is very possible when your castle is built of plastic.
Wise Use Of Credit Cards
Wise Use Of Credit Cards
by Joseph Kenny
Using your credit cards wisely might be the most important and beneficial decision you can make towards financial health. The reason for this is simple: high interest rates on credit cards can cost you more than money if you find yourself unable to make your payments on time.
Consider this: For most consumers, home payments (or rent payments), along with automobile payments are usually the two most expensive debts that a consumer carries. These two payments alone can often account for over 30% of a consumer's take home pay per month. When high-interest rate credit cards are added to this, the overall cost per month can easily reach 60% or more of take home pay. That does not leave much for other expenses such as food, clothing, car insurance, personal loans, etc. For many consumers, the payments on their credit cards are the most expensive debt that they carry. In other words, the total amount of money that they have to send in on payments is higher than what they spend on home loan payments or automobile payments.
There are many reasons why credit cards can become a threat to your financial health, but the number one reason is that they are so easy to use. The number of people who use credit cards for small, incidental purchases is staggering. Consumers often forget that if they do not pay off the entire balance owed within the grace period allowed they will be charged interest. Some companies will be fair about this charge, but most will happily charge as much as they can for the credit they are extending to you.
To make matters worse, if you are late on your payments, or if you do not make any payment at all, this can be reflected in your credit score. It does not take very long at all for delinquent payments or non-payments to hit your credit report and once they are on your report they stay there for up to seven years. These marks against your credit will often cause lenders to either deny you future loans or cause them to levy higher interest rates on accounts that you may wish to open. All in all, late payments will cost you money in the future.
The very best way to handle credit cards is to pay off the balances as they occur. This not only makes you look good in your credit report but it also keeps you from having to pay those high interest rates for balances that are carried over. The second thing to do is to avoid using your credit cards unless you honestly need to do so. Instead of paying with your card, pay with cash. This one action can save you more money than you might imagine. Yes, it is easier to pay with the card sometimes, but it is also more costly.
If you feel you are already in trouble, sit down with your statements and make a plan to begin paying them down. Start with the credit cards that have the lowest balances. Once these are paid off, move to the next highest and begin paying these down. It will take patience and sacrifice, but it can be done and soon your credit cards will be under control.
by Joseph Kenny
Using your credit cards wisely might be the most important and beneficial decision you can make towards financial health. The reason for this is simple: high interest rates on credit cards can cost you more than money if you find yourself unable to make your payments on time.
Consider this: For most consumers, home payments (or rent payments), along with automobile payments are usually the two most expensive debts that a consumer carries. These two payments alone can often account for over 30% of a consumer's take home pay per month. When high-interest rate credit cards are added to this, the overall cost per month can easily reach 60% or more of take home pay. That does not leave much for other expenses such as food, clothing, car insurance, personal loans, etc. For many consumers, the payments on their credit cards are the most expensive debt that they carry. In other words, the total amount of money that they have to send in on payments is higher than what they spend on home loan payments or automobile payments.
There are many reasons why credit cards can become a threat to your financial health, but the number one reason is that they are so easy to use. The number of people who use credit cards for small, incidental purchases is staggering. Consumers often forget that if they do not pay off the entire balance owed within the grace period allowed they will be charged interest. Some companies will be fair about this charge, but most will happily charge as much as they can for the credit they are extending to you.
To make matters worse, if you are late on your payments, or if you do not make any payment at all, this can be reflected in your credit score. It does not take very long at all for delinquent payments or non-payments to hit your credit report and once they are on your report they stay there for up to seven years. These marks against your credit will often cause lenders to either deny you future loans or cause them to levy higher interest rates on accounts that you may wish to open. All in all, late payments will cost you money in the future.
The very best way to handle credit cards is to pay off the balances as they occur. This not only makes you look good in your credit report but it also keeps you from having to pay those high interest rates for balances that are carried over. The second thing to do is to avoid using your credit cards unless you honestly need to do so. Instead of paying with your card, pay with cash. This one action can save you more money than you might imagine. Yes, it is easier to pay with the card sometimes, but it is also more costly.
If you feel you are already in trouble, sit down with your statements and make a plan to begin paying them down. Start with the credit cards that have the lowest balances. Once these are paid off, move to the next highest and begin paying these down. It will take patience and sacrifice, but it can be done and soon your credit cards will be under control.
How Shrewd Credit Card Users Shop For Free
How Shrewd Credit Card Users Shop For Free
by Jon Robson
The UK credit card market is ludicrously competitive - sometimes it seems that some of the biggest lenders would even be prepared to offer you their own grandmothers just to get you to sign up. By enticing you in with incredible credit card introductory offers they hope to reap the rewards from your interest payments. However, when used wisely, credit cards - and in particular introductory offers like 0% balance transfers and 0% interest on purchases, as well as retail and travel discounts, could effectively mean that, not only can shop for free, sometimes you can even actively reduce your current spending.
While credit agencies may advise that credit card lending is the most expensive form of debt, crafty consumers who manage their spending on credit cards with care and restraint can use great credit card introductory deals to their advantage. Some even use a technique known as "credit card offsetting" where you use your credit card to buy all the goods you would normally purchase on your debit card and then place the money you have saved in a high interest bank account. However you plan to use your credit card, there are a number of tips and pitfalls to be aware of to get the most for your money.
Firstly, beware of 0% balance transfers! Banks and other lenders have got wise to "credit card tarts" that continually swap between balance transfer offers; some lenders will charge a transfer fee. Others may even refuse your card application if you have taken advantage of their 0% credit card introductory offer in the past. Swapping cards too frequently to take advantage of 0% on balance transfers could even affect your credit rating as lenders are able to assess the number of credit searches against your name.
Many credit card introductory offers also include 0% on any purchases for a limited duration. Barclaycard Premium for example offers 3 months at 0% while others like MBNA Platinum fix the period on a specific date (in their case 0% on purchases until March 2008). However, it's worth finding out if the card you're interested in offers 0% on cash back. If not then you need to be aware that while it's convenient, it's not the same as using a cash point - every time you get cash back on your credit card you are borrowing money and will therefore be liable for interest on the cash. If your card doesn't offer 0% on cash back then it makes far more sense to use your debit card to withdraw cash.
Credit cards can be an extension of your lifestyle. While 0% balance transfers and 0% on purchases are the main incentives for many lenders there are also a huge variety of other credit card introductory offers, often specific to a particular card. Some are designed to appeal to your lifestyle choices - Barclaycard OnePulse, for example, has tied in with the Oyster Travelcard so you only need one card for travel and shopping while the MBNA WWF card makes a contribution to the World Wildlife Fund for every card. Other cards appeal more directly to your pocket offering discounts and special offers at specific retailers - Virigin Credit Card offers discounts at the Virgin Megastore & Virgin Holidays while Egg offers up to 10% at selected retailers. If you already spend a great deal of money at a specific retailer included in a credit card introductory offer then it gives you the opportunity to make potential savings.
Don't forget the APR! Cynical observers might note that credit card introductory offers are simply their to distract consumers from looking too carefully at the amount of interest they will have to pay every month - for most people it should be the primary consideration in how they decide on which credit card to choose. Rates vary but are currently between 14.9% and 16.9% on average - while Capital One are offering 9.9% with their Platinum card. Whatever card you choose there is one single piece of advice that will save you money: pay off your outstanding balance every month. That way you will only ever reap the benefits of credit cards with none of the expensive charges.
by Jon Robson
The UK credit card market is ludicrously competitive - sometimes it seems that some of the biggest lenders would even be prepared to offer you their own grandmothers just to get you to sign up. By enticing you in with incredible credit card introductory offers they hope to reap the rewards from your interest payments. However, when used wisely, credit cards - and in particular introductory offers like 0% balance transfers and 0% interest on purchases, as well as retail and travel discounts, could effectively mean that, not only can shop for free, sometimes you can even actively reduce your current spending.
While credit agencies may advise that credit card lending is the most expensive form of debt, crafty consumers who manage their spending on credit cards with care and restraint can use great credit card introductory deals to their advantage. Some even use a technique known as "credit card offsetting" where you use your credit card to buy all the goods you would normally purchase on your debit card and then place the money you have saved in a high interest bank account. However you plan to use your credit card, there are a number of tips and pitfalls to be aware of to get the most for your money.
Firstly, beware of 0% balance transfers! Banks and other lenders have got wise to "credit card tarts" that continually swap between balance transfer offers; some lenders will charge a transfer fee. Others may even refuse your card application if you have taken advantage of their 0% credit card introductory offer in the past. Swapping cards too frequently to take advantage of 0% on balance transfers could even affect your credit rating as lenders are able to assess the number of credit searches against your name.
Many credit card introductory offers also include 0% on any purchases for a limited duration. Barclaycard Premium for example offers 3 months at 0% while others like MBNA Platinum fix the period on a specific date (in their case 0% on purchases until March 2008). However, it's worth finding out if the card you're interested in offers 0% on cash back. If not then you need to be aware that while it's convenient, it's not the same as using a cash point - every time you get cash back on your credit card you are borrowing money and will therefore be liable for interest on the cash. If your card doesn't offer 0% on cash back then it makes far more sense to use your debit card to withdraw cash.
Credit cards can be an extension of your lifestyle. While 0% balance transfers and 0% on purchases are the main incentives for many lenders there are also a huge variety of other credit card introductory offers, often specific to a particular card. Some are designed to appeal to your lifestyle choices - Barclaycard OnePulse, for example, has tied in with the Oyster Travelcard so you only need one card for travel and shopping while the MBNA WWF card makes a contribution to the World Wildlife Fund for every card. Other cards appeal more directly to your pocket offering discounts and special offers at specific retailers - Virigin Credit Card offers discounts at the Virgin Megastore & Virgin Holidays while Egg offers up to 10% at selected retailers. If you already spend a great deal of money at a specific retailer included in a credit card introductory offer then it gives you the opportunity to make potential savings.
Don't forget the APR! Cynical observers might note that credit card introductory offers are simply their to distract consumers from looking too carefully at the amount of interest they will have to pay every month - for most people it should be the primary consideration in how they decide on which credit card to choose. Rates vary but are currently between 14.9% and 16.9% on average - while Capital One are offering 9.9% with their Platinum card. Whatever card you choose there is one single piece of advice that will save you money: pay off your outstanding balance every month. That way you will only ever reap the benefits of credit cards with none of the expensive charges.
Is It Worth Applying For A Platinum Credit Card?
Is It Worth Applying For A Platinum Credit Card?
by Michael Strauss
Way back in the early days of credit cards, around 50 years or so ago, the proposition they offered was pretty simple: pay by card, and either clear the balance in full each month or pay interest on the debt you accumulate. There would be little or nothing in the way of added benefits or inducements, as the novelty of paying by plastic and getting easy credit was enough to lure in customers. Indeed, it was perfectly normal to charge cardholders an annual fee simply for the privilege of carrying the card.
Over time, as more and more banks and finance providers got in on the credit card act, there was more competition and so extra features became common. One easy way to make a card stand out from the crowd was to label it as a 'Gold' card, implying a level of prestige and even glamour, which would in theory rub off onto the cardholder. Generally these cards would offer some sort of premium service such as free insurance or travel benefits, although often at the cost of a higher annual fee and more stringent approval criteria - good credit was essential, as was usually a higher minimum income.
As gold cards became more and more common, and the features on standard cards began to get more enticing, a new level of prestige was needed, and so the platinum card was introduced into the market. Typically, a holder of a platinum card would have been considered among society's financial elite, and the card accounts would have higher credit limits and access to a greater range of premium features compared to standard or even gold cards.
These days, however, even the most humble of credit cards will probably offer features considered inconceivable a few decades ago. Balance transfers, interest free periods, rewards, cash back, free insurance, telephone help and information lines - all of these can be found in one form or another right across the credit card spectrum. So what reasons remain for choosing a platinum card over another one?
Although some platinum cards can still offer benefits that you wouldn't normally find on a standard card, such as entry into business class lounges at airports for example, it's rare to find a general platinum card that can't be beaten by a more specialized card on a lower rung of the prestige ladder. A proper travel rewards card, for example, will likely still offer the airport lounges feature as a backup to its main travel points program.
The main reason for the existence of platinum cards is still the perception of them as a status symbol. Even this benefit is under threat, with the emergence of 'black' credit cards which are aimed at supplanting platinum cards as the highest status cards on the market.
If you can find a card which suits your needs and offers the features you desire, and it just happens to be a platinum card, then that's not a problem at all. Just don't be fooled by the marketing hype into thinking that a platinum card is necessarily a good deal or of higher status: you should judge a card on its features alone, and not on any pretensions of prestige.
by Michael Strauss
Way back in the early days of credit cards, around 50 years or so ago, the proposition they offered was pretty simple: pay by card, and either clear the balance in full each month or pay interest on the debt you accumulate. There would be little or nothing in the way of added benefits or inducements, as the novelty of paying by plastic and getting easy credit was enough to lure in customers. Indeed, it was perfectly normal to charge cardholders an annual fee simply for the privilege of carrying the card.
Over time, as more and more banks and finance providers got in on the credit card act, there was more competition and so extra features became common. One easy way to make a card stand out from the crowd was to label it as a 'Gold' card, implying a level of prestige and even glamour, which would in theory rub off onto the cardholder. Generally these cards would offer some sort of premium service such as free insurance or travel benefits, although often at the cost of a higher annual fee and more stringent approval criteria - good credit was essential, as was usually a higher minimum income.
As gold cards became more and more common, and the features on standard cards began to get more enticing, a new level of prestige was needed, and so the platinum card was introduced into the market. Typically, a holder of a platinum card would have been considered among society's financial elite, and the card accounts would have higher credit limits and access to a greater range of premium features compared to standard or even gold cards.
These days, however, even the most humble of credit cards will probably offer features considered inconceivable a few decades ago. Balance transfers, interest free periods, rewards, cash back, free insurance, telephone help and information lines - all of these can be found in one form or another right across the credit card spectrum. So what reasons remain for choosing a platinum card over another one?
Although some platinum cards can still offer benefits that you wouldn't normally find on a standard card, such as entry into business class lounges at airports for example, it's rare to find a general platinum card that can't be beaten by a more specialized card on a lower rung of the prestige ladder. A proper travel rewards card, for example, will likely still offer the airport lounges feature as a backup to its main travel points program.
The main reason for the existence of platinum cards is still the perception of them as a status symbol. Even this benefit is under threat, with the emergence of 'black' credit cards which are aimed at supplanting platinum cards as the highest status cards on the market.
If you can find a card which suits your needs and offers the features you desire, and it just happens to be a platinum card, then that's not a problem at all. Just don't be fooled by the marketing hype into thinking that a platinum card is necessarily a good deal or of higher status: you should judge a card on its features alone, and not on any pretensions of prestige.
Choosing Between Cash Back Or Rewards Credit Cards
Choosing Between Cash Back Or Rewards Credit Cards
by Michael Strauss
The basic premise behind a credit card is simple: you use the plastic to pay for goods either in person or online, and then you either clear the debt within a month or you begin to be charged interest on it. As anyone who's spent any time at all comparing credit cards will be able to attest, things are nothing like so simple.
Not only do different cards charge different rates of interest, and indeed a single card can charge many different rates of interest depending on how it's used, but there are a whole host of different features that card issuers use to vie for your attention and custom.
The classic kind of credit card inducement was the balance transfer offer, where you could shift a debt from one card to another and avoid paying interest for an introductory period. Once it became clear that many people were avoiding interest almost indefinitely by constantly moving from card to card, and so costing card issuers billions, the balance transfer fee was introduced, making the whole exercise rather less attractive.
As the balance transfer craze waned, two features closely related to each other became the new battleground for credit card marketers: rewards and cash back.
Both of these operate on the same basic idea, that being each time you spend on the card you receive a benefit in return. With cash back, a small percentage of each purchase you make is credited back to your account, usually annually.
With rewards, the benefit is more subtle in that you build up points in relation to how much you spend, which you can then use to cut the cost of certain products or services, depending on the specific type of reward program your card offers.
Both rewards and cash back can be extremely attractive, especially for heavy card users, but which one should you choose?
Cash back cards give you the freedom to spend the rebate you receive on anything you want, but they have the disadvantage that the actual cash back rates are pretty low, usually at around 1%. Some cards, however, are upping the ante by offering much higher introductory rates, but only time will tell whether or not long term rates will rise much further.
In contrast, most rewards programs allow you to redeem your points against a strictly limited range of goods or services, but can often therefore afford to give more actual benefit. For example, travel enthusiasts might find a card which rewards them with hotel discounts and free flights much more useful than an across the board 1% discount on their purchases.
Similarly, wine buffs may find a card which gives them access to a discount wine club a more attractive way to benefit from their card use, and drivers may especially appreciate a rebate on their fuel costs.
In most cases, a rewards program that fits in well with your lifestyle is likely to give a more satisfactory overall result than a general cash back program, but this depends on being able to find a card that suits you well.
Whichever kind of card you choose, these days it's no longer necessary to pay through the nose just for the convenience of using your card - you should be able to find a card which gives you something very worthwhile back.
by Michael Strauss
The basic premise behind a credit card is simple: you use the plastic to pay for goods either in person or online, and then you either clear the debt within a month or you begin to be charged interest on it. As anyone who's spent any time at all comparing credit cards will be able to attest, things are nothing like so simple.
Not only do different cards charge different rates of interest, and indeed a single card can charge many different rates of interest depending on how it's used, but there are a whole host of different features that card issuers use to vie for your attention and custom.
The classic kind of credit card inducement was the balance transfer offer, where you could shift a debt from one card to another and avoid paying interest for an introductory period. Once it became clear that many people were avoiding interest almost indefinitely by constantly moving from card to card, and so costing card issuers billions, the balance transfer fee was introduced, making the whole exercise rather less attractive.
As the balance transfer craze waned, two features closely related to each other became the new battleground for credit card marketers: rewards and cash back.
Both of these operate on the same basic idea, that being each time you spend on the card you receive a benefit in return. With cash back, a small percentage of each purchase you make is credited back to your account, usually annually.
With rewards, the benefit is more subtle in that you build up points in relation to how much you spend, which you can then use to cut the cost of certain products or services, depending on the specific type of reward program your card offers.
Both rewards and cash back can be extremely attractive, especially for heavy card users, but which one should you choose?
Cash back cards give you the freedom to spend the rebate you receive on anything you want, but they have the disadvantage that the actual cash back rates are pretty low, usually at around 1%. Some cards, however, are upping the ante by offering much higher introductory rates, but only time will tell whether or not long term rates will rise much further.
In contrast, most rewards programs allow you to redeem your points against a strictly limited range of goods or services, but can often therefore afford to give more actual benefit. For example, travel enthusiasts might find a card which rewards them with hotel discounts and free flights much more useful than an across the board 1% discount on their purchases.
Similarly, wine buffs may find a card which gives them access to a discount wine club a more attractive way to benefit from their card use, and drivers may especially appreciate a rebate on their fuel costs.
In most cases, a rewards program that fits in well with your lifestyle is likely to give a more satisfactory overall result than a general cash back program, but this depends on being able to find a card that suits you well.
Whichever kind of card you choose, these days it's no longer necessary to pay through the nose just for the convenience of using your card - you should be able to find a card which gives you something very worthwhile back.
Wednesday, March 11, 2009
Credit Card Advice
Credit Card Advice
by Nick C
It's good practice to shop around when looking for a credit card. Going for the first one that comes your way just because you recognise the name can be a costly mistake. There are also plenty of facilities available online that offer a comparison of all the cards currently available. With such a vast amount of financial information available freely on the internet, there's really no excuse for being ill informed when it comes to your finances.
If you're a new owner of a credit card then here are a few things that are worth remembering:
Avoid using credit cards at ATM machines unless you really have no other choice. Each time you use your card you will be charged a percentage of the cash that you withdraw. Overtime this can prove to be very expensive.
Be organised with your finances and make sure that you pay at least the minimum payment each month and on time. You may incur a late charge if you miss the pay by date, which can be as much as £30. This practice is now considered illegal and it's possible to reclaim these fees from your bank or credit card company.
Take care of your credit cards when in restaurants or other places where your card is taken away to be processed. There have numerous reports of unscrupulous workers swiping the details from credit cards when they are out of sight of the card holders.
Carefully check your monthly incoming and outgoings of your account against what your minimum card re-payments will be. Avoid financial difficulties by avoiding taking on more than you can afford.
If you do find yourself getting into debt, then try to transfer your current balance to another credit card that has 0% balance transfer. This will help save you money and hopefully reduce some of your financial stress. Avoid temptation by destroying your card once the debt has been transferred to the 0% credit card.
by Nick C
It's good practice to shop around when looking for a credit card. Going for the first one that comes your way just because you recognise the name can be a costly mistake. There are also plenty of facilities available online that offer a comparison of all the cards currently available. With such a vast amount of financial information available freely on the internet, there's really no excuse for being ill informed when it comes to your finances.
If you're a new owner of a credit card then here are a few things that are worth remembering:
Avoid using credit cards at ATM machines unless you really have no other choice. Each time you use your card you will be charged a percentage of the cash that you withdraw. Overtime this can prove to be very expensive.
Be organised with your finances and make sure that you pay at least the minimum payment each month and on time. You may incur a late charge if you miss the pay by date, which can be as much as £30. This practice is now considered illegal and it's possible to reclaim these fees from your bank or credit card company.
Take care of your credit cards when in restaurants or other places where your card is taken away to be processed. There have numerous reports of unscrupulous workers swiping the details from credit cards when they are out of sight of the card holders.
Carefully check your monthly incoming and outgoings of your account against what your minimum card re-payments will be. Avoid financial difficulties by avoiding taking on more than you can afford.
If you do find yourself getting into debt, then try to transfer your current balance to another credit card that has 0% balance transfer. This will help save you money and hopefully reduce some of your financial stress. Avoid temptation by destroying your card once the debt has been transferred to the 0% credit card.
Use a Small Business Credit Card to Manage Your Business
Use a Small Business Credit Card to Manage Your Business
by Pamela Williams
One of the major concerns for those who have small businesses or who are just starting up with a business is financing. In the past, it obligatory to come up with a large cash that will be sufficient as working capital in order to put up business or even a small enterprise. Today, small businesses can take advantage of the fact that they can use small business credit cards to help them not only to start up a business but in managing it as well.
Can you really use a small business credit card for starting up your business? The answer is yes. Credit cards for small business can be of great assistance to prepare all the equipment you need to begin your business operations. Some of the equipment or device essential for a business is a computer, printer, a fax machine, telephone, or a cash register. With a small business credit card, you don't have to buy all these things with cash. You can charge these expenses to your small business credit card and pay them off in installment mode the next month after you already open up business.
Credit cards for small businesses can also be used as your working capital. You can buy raw materials with your business credit card so you can start manufacturing your products right away or you can also wholesale merchandise that you plan to put on market and start selling right away. Afterwards, you can pay off these expenditures in a monthly basis using your small business credit card.
Another great advantage of credit cards for small business is when you get short on your cash flow in the middle of your business operations. Your small business credit card can truly come in handy in purchasing items or paying for services such as printing or shipping purposes that are urgently in need.
The benefits that small business credit cards give are truly rewarding. Speaking of rewards, most credit cards for small businesses offer great incentives for their card holders whether in the form of cash rebates, cash back programs or fee travel tickets. Since businesses usually purchase in bulk or in large packages, the opportunity to earn points equivalent to bonuses is much bigger than for those who use regular credit cards.
If you're thinking about starting up your business with small business credit card, you are very much welcome to do so. Just remember the advice that applies for all those who own credit cards. Pay off your monthly charges on time and never put off one single payment.
It would be best to have a plan prepared on how you will pay for your purchases even before you purchase them using your small business credit card. This way, you can consider how much you can afford to pay and avoid exceeding your budget. Technically, this is really the only key in managing credit cards successfully whether it's a business credit card or a personal credit card. Lastly, it is always recommended for businesses to open a regular business account in a bank as soon as the business becomes stable.
by Pamela Williams
One of the major concerns for those who have small businesses or who are just starting up with a business is financing. In the past, it obligatory to come up with a large cash that will be sufficient as working capital in order to put up business or even a small enterprise. Today, small businesses can take advantage of the fact that they can use small business credit cards to help them not only to start up a business but in managing it as well.
Can you really use a small business credit card for starting up your business? The answer is yes. Credit cards for small business can be of great assistance to prepare all the equipment you need to begin your business operations. Some of the equipment or device essential for a business is a computer, printer, a fax machine, telephone, or a cash register. With a small business credit card, you don't have to buy all these things with cash. You can charge these expenses to your small business credit card and pay them off in installment mode the next month after you already open up business.
Credit cards for small businesses can also be used as your working capital. You can buy raw materials with your business credit card so you can start manufacturing your products right away or you can also wholesale merchandise that you plan to put on market and start selling right away. Afterwards, you can pay off these expenditures in a monthly basis using your small business credit card.
Another great advantage of credit cards for small business is when you get short on your cash flow in the middle of your business operations. Your small business credit card can truly come in handy in purchasing items or paying for services such as printing or shipping purposes that are urgently in need.
The benefits that small business credit cards give are truly rewarding. Speaking of rewards, most credit cards for small businesses offer great incentives for their card holders whether in the form of cash rebates, cash back programs or fee travel tickets. Since businesses usually purchase in bulk or in large packages, the opportunity to earn points equivalent to bonuses is much bigger than for those who use regular credit cards.
If you're thinking about starting up your business with small business credit card, you are very much welcome to do so. Just remember the advice that applies for all those who own credit cards. Pay off your monthly charges on time and never put off one single payment.
It would be best to have a plan prepared on how you will pay for your purchases even before you purchase them using your small business credit card. This way, you can consider how much you can afford to pay and avoid exceeding your budget. Technically, this is really the only key in managing credit cards successfully whether it's a business credit card or a personal credit card. Lastly, it is always recommended for businesses to open a regular business account in a bank as soon as the business becomes stable.
FSA Debit Cards: Flexible Spending Accounts Made Easy
FSA Debit Cards: Flexible Spending Accounts Made Easy
by Alan Jacobson
A flexible spending Account (FSA) is a way for you to put money aside tax free for important expenses. These accounts can potentially save you hundreds of dollars in taxes, but they often require a lot of paperwork so that you can prove you bought the "qualifying" product or service. FSA debit cards are relatively new to the market and make the process of having an FSA smoother and faster than it used to be. Now you can sit back and enjoy your lower tax bill without the hassle that used to come with keeping track of, copying, and submitting all your proof of purchases and receipts.
First some background. There are primarily three types of flexible spending account:
1. The Health Care FSA (also known as Medical FSA, Medical Expense FSA, or simply Health FSA), where qualified medical expenses are put aside. These can include insurance deductibles, co-payments, and coinsurance costs as well as specific products, treatments, and medications not specifically covered by insurance. Medical issues can be serious, or as simple as buying a year's worth of band-aids.
2. The dependent care FSA, where qualified child care (such as day or after care) expenses can be put aside. While almost always used for children, they can also be used for adult day care� for elderly dependents (such as parents) that live with you.
3. The travel FSA, where costs of public transportation and in some cases tolls and parking can be put aside before taxes.
In each case the money put aside is subtracted from your earnings and then you are only taxed on the lower amount. More information about how to figure your own tax savings can be found at http://www.flexiblespendingaccounts.info.
In the past, the paperwork involved in having an FSA sometimes led people to avoid them. You had to keep and submit many documents, from receipts and bills to itemized statements. However, a new addition to the FSA market, one which makes things much easier, smoother, and paperless, is the FSA Debit Card. These are credit cards that are used to pay for any of the above expenses after you've signed up for an FSA account. You carry your FSA Debit card with you, and when something you are paying for through the flexible spending account, from day care to medical supplies, to parking, is a qualified expense in an FSA you have joined, you use the card. You are actually spending your own money that you set aside for the FSA from your earnings.
Currently there are 7 million or more debit cards tied to an FSA account. This includes involves almost one-third of people who have FSAs. By 2010, it is projected this rate will increase to 85%. If you don't use a debit card you will need to submit proof of payment for qualified expenses, such as receipts, bills, and statements. In many cases you still may have to do that anyway, as some expenses will have to be paid to providers that don't take debit cards.
There are two very important restrictions you should know about when signing up for an FSA and use your FSA Debit Card. Most importantly, all the money put aside must be spent within the "plan year", which is usually the calendar year (sometimes plus a 90 day grace period) but for some companies can be the fiscal year. The money left in the account at the end of the plan year is forfeited back to the company. In general it is vital that you check out the full listing of a FSA plan's inclusions, exclusions, and rules before signing up and before using your debit card. You may have to repay the company for any uses that are not within the FSA agreement.
by Alan Jacobson
A flexible spending Account (FSA) is a way for you to put money aside tax free for important expenses. These accounts can potentially save you hundreds of dollars in taxes, but they often require a lot of paperwork so that you can prove you bought the "qualifying" product or service. FSA debit cards are relatively new to the market and make the process of having an FSA smoother and faster than it used to be. Now you can sit back and enjoy your lower tax bill without the hassle that used to come with keeping track of, copying, and submitting all your proof of purchases and receipts.
First some background. There are primarily three types of flexible spending account:
1. The Health Care FSA (also known as Medical FSA, Medical Expense FSA, or simply Health FSA), where qualified medical expenses are put aside. These can include insurance deductibles, co-payments, and coinsurance costs as well as specific products, treatments, and medications not specifically covered by insurance. Medical issues can be serious, or as simple as buying a year's worth of band-aids.
2. The dependent care FSA, where qualified child care (such as day or after care) expenses can be put aside. While almost always used for children, they can also be used for adult day care� for elderly dependents (such as parents) that live with you.
3. The travel FSA, where costs of public transportation and in some cases tolls and parking can be put aside before taxes.
In each case the money put aside is subtracted from your earnings and then you are only taxed on the lower amount. More information about how to figure your own tax savings can be found at http://www.flexiblespendingaccounts.info.
In the past, the paperwork involved in having an FSA sometimes led people to avoid them. You had to keep and submit many documents, from receipts and bills to itemized statements. However, a new addition to the FSA market, one which makes things much easier, smoother, and paperless, is the FSA Debit Card. These are credit cards that are used to pay for any of the above expenses after you've signed up for an FSA account. You carry your FSA Debit card with you, and when something you are paying for through the flexible spending account, from day care to medical supplies, to parking, is a qualified expense in an FSA you have joined, you use the card. You are actually spending your own money that you set aside for the FSA from your earnings.
Currently there are 7 million or more debit cards tied to an FSA account. This includes involves almost one-third of people who have FSAs. By 2010, it is projected this rate will increase to 85%. If you don't use a debit card you will need to submit proof of payment for qualified expenses, such as receipts, bills, and statements. In many cases you still may have to do that anyway, as some expenses will have to be paid to providers that don't take debit cards.
There are two very important restrictions you should know about when signing up for an FSA and use your FSA Debit Card. Most importantly, all the money put aside must be spent within the "plan year", which is usually the calendar year (sometimes plus a 90 day grace period) but for some companies can be the fiscal year. The money left in the account at the end of the plan year is forfeited back to the company. In general it is vital that you check out the full listing of a FSA plan's inclusions, exclusions, and rules before signing up and before using your debit card. You may have to repay the company for any uses that are not within the FSA agreement.
Tuesday, March 10, 2009
How to use your credt card smart at your shopping
How to use your credt card smart at your shopping
by Leslie Kovacs
If I want to categorize the people from the point of view of spending, two types exist independently their financial background. Those who know of how to control their spending and avoid huge credit card debt, and those who don't.
One of the basic mistakes which the people frequently make is they buy everything for credit and after find themselves in the rat race of paying off their credit card debts.The other, the majority of the average people does not even think over that there is a way of saving lot of money at shopping and find great pleasure in the same time. Our school system is great independently that we are talking about the USA or Europe or Canada or Latin-America, etc, since it creates excellent professionals in different fields, different sciences. One thing the schools fail to teach. Although it would be very-very important to learn. This subject is the Subject of Money. Basic financial education. And it starts with learning of how to control our daily and weekly spending, how to avoid becoming in huge debts, at shopping how to save huge amounts etc.
And than let me get down to the brass tracks. First, if you have credit card, do not buy more with it just as much as you can afford from your financial background. Here is the point. If your credit card is unsecured that means there is now money on it you buy everything from the beginning on credit. This is I think very bed custom of our every day life.
But if you secure your card and put $300-400 than you know that until this amount you can purchase with your card without being in debt. What I say is that you pay close attention how much money you can spend. You must learn of how to take control of your spending and it starts with careful and mindful purchase with your credit card.
Second, if you are already in credit card debt, first pay it off before you do further shopping. Do not let yourself to fall into that huge mistake which most of the people do: keep purchasing on credit just because they see the ads of the local supermarket which say why they have to go shopping now!!!!
Take control of your spending and you did the first step toward a more stable and secure financial background.
by Leslie Kovacs
If I want to categorize the people from the point of view of spending, two types exist independently their financial background. Those who know of how to control their spending and avoid huge credit card debt, and those who don't.
One of the basic mistakes which the people frequently make is they buy everything for credit and after find themselves in the rat race of paying off their credit card debts.The other, the majority of the average people does not even think over that there is a way of saving lot of money at shopping and find great pleasure in the same time. Our school system is great independently that we are talking about the USA or Europe or Canada or Latin-America, etc, since it creates excellent professionals in different fields, different sciences. One thing the schools fail to teach. Although it would be very-very important to learn. This subject is the Subject of Money. Basic financial education. And it starts with learning of how to control our daily and weekly spending, how to avoid becoming in huge debts, at shopping how to save huge amounts etc.
And than let me get down to the brass tracks. First, if you have credit card, do not buy more with it just as much as you can afford from your financial background. Here is the point. If your credit card is unsecured that means there is now money on it you buy everything from the beginning on credit. This is I think very bed custom of our every day life.
But if you secure your card and put $300-400 than you know that until this amount you can purchase with your card without being in debt. What I say is that you pay close attention how much money you can spend. You must learn of how to take control of your spending and it starts with careful and mindful purchase with your credit card.
Second, if you are already in credit card debt, first pay it off before you do further shopping. Do not let yourself to fall into that huge mistake which most of the people do: keep purchasing on credit just because they see the ads of the local supermarket which say why they have to go shopping now!!!!
Take control of your spending and you did the first step toward a more stable and secure financial background.
Information and Advice on Five Different Types of Credit Cards
Information and Advice on Five Different Types of Credit Cards
by TL Kleban
How can you find the right credit card for you with so many different types of cards available? The first thing you need to do is start thinking about how you plan on using credit and for what. After you do this, you can start comparing all the different charge cards and credit cards available. Some cards offer you excellent value, and then there are others, which may cost more in finance and interest charges, provide incentives you may find useful. My advice is to research all the varying card rates, fees and benefits before making a decision.
Depending on your needs, you'll find several different options which can fit what you are looking for. There are some cards aimed toward individual consumers, while others are built specifically for small business needs. To help you figure out what type of credit card would fit your needs, here is some information on five of the most common credit cards available:
* Standard credit cards - These types of credit cards are the most commonly used. They let the user hold a balance on the card all the way up to a set credit limit. After you make a purchase for an item such as a new TV, credit from that balance is used. After you make payments on that balance, that credit is made available to you once again. Keep in mind that finance charges and interest rates will be applied at the end of the month to your balance. You should also be aware of your card's minimum payment that needs to be paid by a certain due date or be charged late-payment penalties.
* Premium credit cards - Premium credit cards are very similar to regular credit cards except these offer incentives and benefits. I'm talking about those Gold and Platinum credits cards. These offer incentives such as cash back, reward points, or travel upgrades along with many other different types of rewards just for using the card. However, they tend to come with higher fees and you will need minimum income and credit score requirements before you can be qualified for one.
* Prepaid credit cards - These credit cards require money to be uploaded onto the card before it can be used for a transaction. You do not have a renewing credit limit on these either since you are responsible for how much of a balance is loaded up on the card. They work very similarly as debit cards do, but are not dependent on the balance of your checking account.
* Business credit cards - These cards are intended specifically for business use. These cards allow business owners to keep all of their transaction separated between personal and business. They work nearly identical to a standard credit card does with mostly all the same rules and fees.
* Charge cards - Charge cards are basically credit cards without a limit to how much you can charge. The only requirement is that the entire balance must be paid in full at the end of the month. Since the balance is always paid in full monthly, they tend not to come with any finance charges or minimum payments. They ares however, subject to fees, charge restrictions, or card cancellations if you are late on your monthly payments.
by TL Kleban
How can you find the right credit card for you with so many different types of cards available? The first thing you need to do is start thinking about how you plan on using credit and for what. After you do this, you can start comparing all the different charge cards and credit cards available. Some cards offer you excellent value, and then there are others, which may cost more in finance and interest charges, provide incentives you may find useful. My advice is to research all the varying card rates, fees and benefits before making a decision.
Depending on your needs, you'll find several different options which can fit what you are looking for. There are some cards aimed toward individual consumers, while others are built specifically for small business needs. To help you figure out what type of credit card would fit your needs, here is some information on five of the most common credit cards available:
* Standard credit cards - These types of credit cards are the most commonly used. They let the user hold a balance on the card all the way up to a set credit limit. After you make a purchase for an item such as a new TV, credit from that balance is used. After you make payments on that balance, that credit is made available to you once again. Keep in mind that finance charges and interest rates will be applied at the end of the month to your balance. You should also be aware of your card's minimum payment that needs to be paid by a certain due date or be charged late-payment penalties.
* Premium credit cards - Premium credit cards are very similar to regular credit cards except these offer incentives and benefits. I'm talking about those Gold and Platinum credits cards. These offer incentives such as cash back, reward points, or travel upgrades along with many other different types of rewards just for using the card. However, they tend to come with higher fees and you will need minimum income and credit score requirements before you can be qualified for one.
* Prepaid credit cards - These credit cards require money to be uploaded onto the card before it can be used for a transaction. You do not have a renewing credit limit on these either since you are responsible for how much of a balance is loaded up on the card. They work very similarly as debit cards do, but are not dependent on the balance of your checking account.
* Business credit cards - These cards are intended specifically for business use. These cards allow business owners to keep all of their transaction separated between personal and business. They work nearly identical to a standard credit card does with mostly all the same rules and fees.
* Charge cards - Charge cards are basically credit cards without a limit to how much you can charge. The only requirement is that the entire balance must be paid in full at the end of the month. Since the balance is always paid in full monthly, they tend not to come with any finance charges or minimum payments. They ares however, subject to fees, charge restrictions, or card cancellations if you are late on your monthly payments.
Sunday, March 8, 2009
Credit Cards - Handle Them With Care
Credit Cards - Handle Them With Care
by AJ Adams
Credit cards can be useful financial tools, but they can also get you into a lot of debt if you use them improperly. In order to make the most of a credit card, you should look for certain things when deciding which credit card you will use. If you make your decision carefully, you can avoid a lot of future grief.
Part of your decision will hinge on how you plan to pay back your debts. If you know that you can pay back your balance in full every month without carrying over any debt, then the APR won't matter. The APR refers to the interest rate of carrying over a balance. If you pay it back every month, then you won't be affected by a high APR! With this type of card, you will be able to find a deal with no annual fee, and longer grace periods (extra time to make your payment).
If you plan to use the credit card as a sort of long-term borrowing tool, then a high APR will be financial suicide. You should look for a deal with a low APR rate, but make sure to read between the lines. Some credit cards offer introductory APR rates that are quite attractive, but will change to a less appealing rate after several months. You should also beware of penalty APR rates that charge extra money if your balance exceeds a certain limit.
One thing you will quickly realize is that credit card companies frequently hit you with unexpected fees and charges. That is why it is important to read the contract they give you, no matter how intimidating it is. Find out exactly what you are getting into, and you will be able to use the credit card to your own benefit, to assist you in your financial troubles instead of creating new ones.
by AJ Adams
Credit cards can be useful financial tools, but they can also get you into a lot of debt if you use them improperly. In order to make the most of a credit card, you should look for certain things when deciding which credit card you will use. If you make your decision carefully, you can avoid a lot of future grief.
Part of your decision will hinge on how you plan to pay back your debts. If you know that you can pay back your balance in full every month without carrying over any debt, then the APR won't matter. The APR refers to the interest rate of carrying over a balance. If you pay it back every month, then you won't be affected by a high APR! With this type of card, you will be able to find a deal with no annual fee, and longer grace periods (extra time to make your payment).
If you plan to use the credit card as a sort of long-term borrowing tool, then a high APR will be financial suicide. You should look for a deal with a low APR rate, but make sure to read between the lines. Some credit cards offer introductory APR rates that are quite attractive, but will change to a less appealing rate after several months. You should also beware of penalty APR rates that charge extra money if your balance exceeds a certain limit.
One thing you will quickly realize is that credit card companies frequently hit you with unexpected fees and charges. That is why it is important to read the contract they give you, no matter how intimidating it is. Find out exactly what you are getting into, and you will be able to use the credit card to your own benefit, to assist you in your financial troubles instead of creating new ones.
What Are Prepaid Credit Cards For?
What Are Prepaid Credit Cards For?
by AJ Adams
Prepaid credit cards are useful tools that are often utilized to improve one's credit. When someone is not able to make their payments on time, or has other financial trouble, their credit can be hit pretty hard. But, a prepaid credit card can help them get back in good standing with lenders. It works essentially the same as a debit card, and only allows you to spend money that you have already got. This will help you avoid many of the pitfalls that have given credit cards notoriety for being financially ruining.
To open a prepaid credit card, you will have to deposit a small fee. The fee is usually between 5 and 10 dollars. After that, you can deposit any amount of money through your bank account. This money is added to the balance of the card. After it has a balance, you can use it just like a normal credit card, to do anything that you would regularly do. Therefore you are given the convenience of a credit card without the temptation to spend more than you actually have.
Your activity on a prepaid credit card is reported to the credit bureau, so over time you can gradually regain your credit to decent standing. With poor credit, if you try to get a regular credit card, you won't be able to find anything with decent terms. You'll have to deal with high APR rates and inflexible deadlines. But if you can improve your credit with a prepaid credit card, you'll be able to get a regular card with terms that you can agree to.
So if you suffer from poor credit, you should look into getting a prepaid credit card. Instead of applying for one with horrible terms and rates, you can use one that will keep you out of debt and start improving your overall credit.
by AJ Adams
Prepaid credit cards are useful tools that are often utilized to improve one's credit. When someone is not able to make their payments on time, or has other financial trouble, their credit can be hit pretty hard. But, a prepaid credit card can help them get back in good standing with lenders. It works essentially the same as a debit card, and only allows you to spend money that you have already got. This will help you avoid many of the pitfalls that have given credit cards notoriety for being financially ruining.
To open a prepaid credit card, you will have to deposit a small fee. The fee is usually between 5 and 10 dollars. After that, you can deposit any amount of money through your bank account. This money is added to the balance of the card. After it has a balance, you can use it just like a normal credit card, to do anything that you would regularly do. Therefore you are given the convenience of a credit card without the temptation to spend more than you actually have.
Your activity on a prepaid credit card is reported to the credit bureau, so over time you can gradually regain your credit to decent standing. With poor credit, if you try to get a regular credit card, you won't be able to find anything with decent terms. You'll have to deal with high APR rates and inflexible deadlines. But if you can improve your credit with a prepaid credit card, you'll be able to get a regular card with terms that you can agree to.
So if you suffer from poor credit, you should look into getting a prepaid credit card. Instead of applying for one with horrible terms and rates, you can use one that will keep you out of debt and start improving your overall credit.
Think Before You Apply For A Credit Card
Think Before You Apply For A Credit Card
by Connie Barker
If you check your mail, one item that most people are sure to see several times per month is an invitation to apply for a credit card. Credit card offers have inundated us, whether you are a college student or even a senior citizen. It seems that almost every bank and credit card company are in stiff competition to see who can offer credit to the most people as possible. However, before you apply for your next credit card it is important to take several things into consideration.
How Many Credit Cards are Enough?
People love to collect items that are associated with wealth and exclusivity; however one item that you shouldn't collect is a credit card. Having more than two or three credit cards can exacerbate credit issues usually due to the ease in which a person can borrow beyond their means. For instance, if a person has only two credit cards each with a limit of $3,000 each, the individual will most likely be able to climb out of a credit hole if both credit card limits are maxed out. However, if you have five, six or more credit cards with a total limit in the tens of thousands of dollars, it is no longer easy for a person to climb out of a credit hole; in fact it can usually take 5 to 10 years for a person to pay off their debts in many of these cases. In some cases the only resolution is bankruptcy.
Having Several Credit Cards Can Have a Negative Effect on Your Credit Rating
Some credit experts suggest that having more than three credit cards may be a red flag to many creditors and thus negatively effect your credit rating. Creditors prefer customers with manageable debt, the more credit cards you have, the more debt you can rack up. Even if you don't use many of your credit cards, there is still a possibility that you can always start maxing out your credit cards and find yourself in debt.
Use Bank Debit Cards Instead of Credit Cards
There are much more advantageous financial tools available besides credit cards that are just as convenient. Debit cards are very similar to credit cards in that they do not require you to carry large amounts of cash around with you at all times, however unlike a credit card, they are tied directly to your bank account which means besides a small yearly or monthly fee, there are no interest payments since you are purchasing items with your own money. Credit cards on the other hand are considered unsecured loans and each purchase you make also requires you to pay interest. This means that a purchase of $20 for a DVD, can end up costing you 50% or even 100% more in the long run after interest charges are added. It is definitely something to think about the next time you would like to purchase an impulse item.
For those bombarded with credit card offers, think before you apply for your next credit card.
by Connie Barker
If you check your mail, one item that most people are sure to see several times per month is an invitation to apply for a credit card. Credit card offers have inundated us, whether you are a college student or even a senior citizen. It seems that almost every bank and credit card company are in stiff competition to see who can offer credit to the most people as possible. However, before you apply for your next credit card it is important to take several things into consideration.
How Many Credit Cards are Enough?
People love to collect items that are associated with wealth and exclusivity; however one item that you shouldn't collect is a credit card. Having more than two or three credit cards can exacerbate credit issues usually due to the ease in which a person can borrow beyond their means. For instance, if a person has only two credit cards each with a limit of $3,000 each, the individual will most likely be able to climb out of a credit hole if both credit card limits are maxed out. However, if you have five, six or more credit cards with a total limit in the tens of thousands of dollars, it is no longer easy for a person to climb out of a credit hole; in fact it can usually take 5 to 10 years for a person to pay off their debts in many of these cases. In some cases the only resolution is bankruptcy.
Having Several Credit Cards Can Have a Negative Effect on Your Credit Rating
Some credit experts suggest that having more than three credit cards may be a red flag to many creditors and thus negatively effect your credit rating. Creditors prefer customers with manageable debt, the more credit cards you have, the more debt you can rack up. Even if you don't use many of your credit cards, there is still a possibility that you can always start maxing out your credit cards and find yourself in debt.
Use Bank Debit Cards Instead of Credit Cards
There are much more advantageous financial tools available besides credit cards that are just as convenient. Debit cards are very similar to credit cards in that they do not require you to carry large amounts of cash around with you at all times, however unlike a credit card, they are tied directly to your bank account which means besides a small yearly or monthly fee, there are no interest payments since you are purchasing items with your own money. Credit cards on the other hand are considered unsecured loans and each purchase you make also requires you to pay interest. This means that a purchase of $20 for a DVD, can end up costing you 50% or even 100% more in the long run after interest charges are added. It is definitely something to think about the next time you would like to purchase an impulse item.
For those bombarded with credit card offers, think before you apply for your next credit card.
A problem called 'Credit Card Debt'
A problem called 'Credit Card Debt'
by sas_submitemail
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.
by sas_submitemail
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.
Saturday, March 7, 2009
Three Realities of Credit Card Identity Theft
Three Realities of Credit Card Identity Theft
by Wade Robins
ou may have heard or read credit card identity theft horror stories, but though that as long as you keep your credit cards in a safe place unless you are going to use one of them, your risk of being a victim of credit card identity theft are extremely low. But you are wrong, and there are some things you need to know about credit card identity theft if you want to protect both your credit rating and your financial future.
First, having your credit card stolen is not the only way in which you can be targeted for credit card identity theft. Your card may be stolen, your card details may be stolen, or you card's PIN number may be stolen. If your card's details or PIN are stolen, your card may be completely looted before you know anything is amiss. A credit card scammer can simply copy your card number, name, expiration date, and ID number, or observed you entering your PIN number at an ATM or register without your noticing.
Credit card identify theft can also occur when someone applies for a credit card using your name and social security number, which they can get by stealing your mail. With that information, all the identity thief needs to do is use your information and have the card sent to their address, and start using the card. When they fail to make the payments, the credit card company will come after you, and the charges and missed payments will devastate your credit rating, making it impossible for you to get new credit and sometimes even to get a job.
Internet Identity Theft
Second, there is no way to be completely safe from credit cart identity theft, and those who engage in it are very sophisticated in their techniques. You can even be targeted for credit card identity theft on your PC, if it has had a secret keylogger installed from a remote location.
A keylogger is a form of spyware which will record every keystroke you make, and when you enter your credit card information to make an online purchase, a record will go straight to the scammer's computer. If you are not running a spyware program on your computer now, you should install one and begin using it immediately.
Watching Your Back
Third, while the Internet has brought a new opportunity for identity thieves, their favorite targets remain retail stores, where either physical theft of their cards, or surreptitious copying of their card details, can easily occur. So whenever you make a purchase using your credit card, do not take your eyes off it and try to find stores which let you run the card yourself without having a cashier enter your information.
If you are using your credit card to for a debit purchase or cash withdrawal, find a way to shield the keypad when you punch in your PIN number.
Credit card identity theft is one of the most virulent forms of identity theft, and you need to view it as a serious threat. Knowing where and how it most often occurs will help you improve your odds against becoming a victim. You can find more information on how to avoid credit card identity theft.
by Wade Robins
ou may have heard or read credit card identity theft horror stories, but though that as long as you keep your credit cards in a safe place unless you are going to use one of them, your risk of being a victim of credit card identity theft are extremely low. But you are wrong, and there are some things you need to know about credit card identity theft if you want to protect both your credit rating and your financial future.
First, having your credit card stolen is not the only way in which you can be targeted for credit card identity theft. Your card may be stolen, your card details may be stolen, or you card's PIN number may be stolen. If your card's details or PIN are stolen, your card may be completely looted before you know anything is amiss. A credit card scammer can simply copy your card number, name, expiration date, and ID number, or observed you entering your PIN number at an ATM or register without your noticing.
Credit card identify theft can also occur when someone applies for a credit card using your name and social security number, which they can get by stealing your mail. With that information, all the identity thief needs to do is use your information and have the card sent to their address, and start using the card. When they fail to make the payments, the credit card company will come after you, and the charges and missed payments will devastate your credit rating, making it impossible for you to get new credit and sometimes even to get a job.
Internet Identity Theft
Second, there is no way to be completely safe from credit cart identity theft, and those who engage in it are very sophisticated in their techniques. You can even be targeted for credit card identity theft on your PC, if it has had a secret keylogger installed from a remote location.
A keylogger is a form of spyware which will record every keystroke you make, and when you enter your credit card information to make an online purchase, a record will go straight to the scammer's computer. If you are not running a spyware program on your computer now, you should install one and begin using it immediately.
Watching Your Back
Third, while the Internet has brought a new opportunity for identity thieves, their favorite targets remain retail stores, where either physical theft of their cards, or surreptitious copying of their card details, can easily occur. So whenever you make a purchase using your credit card, do not take your eyes off it and try to find stores which let you run the card yourself without having a cashier enter your information.
If you are using your credit card to for a debit purchase or cash withdrawal, find a way to shield the keypad when you punch in your PIN number.
Credit card identity theft is one of the most virulent forms of identity theft, and you need to view it as a serious threat. Knowing where and how it most often occurs will help you improve your odds against becoming a victim. You can find more information on how to avoid credit card identity theft.
Credit Cards For Emergency Purposes Only
Credit Cards For Emergency Purposes Only
by Mario Churchill
There are some people who apply for credit cards and have them for maybe a year and they have never used them. They pay the monthly fees that are required if there are any. These people simply have the credit card with obviously extended ability to use it and they know they could use it if they wanted to. Many have unsecured credit cards to top it all off.
So, why don't these people use their credit cards? Is it out of fear, or are they so used to using cash it just never crosses their mind to use the credit card in the first place?
It could be that way however believe it or not, that's not exactly true. A lot of people who have been approved for an unsecured credit card only use the credit card for emergency purposes. This way they know they have the means to do whatever it is that is so important and they just don't have the cash funding to get the task accomplished.
This is such a good idea, and those who are in control of their spending habits are able to do this. It's as if they put the credit card in their purse or wallet and forget or pretend they don't really have it.
Although you have to admit there are several people who once they have that credit card in hand cannot help themselves but go out and use it to the maximum amount. Then when the monthly statements come in they are simply paying the minimum they can in order to actually keep the credit card.
I believe the idea of having a credit card for the sole purpose of those emergencies that arise in one's life is a good plan. And everyone knows those times do arise, often times more than once. In these cases, the person that is only using the credit card for the sole purpose of emergencies can have it paid off a lot quicker for the simple reason that the credit card is usually not to the maximum amount and can easily and quickly repaid before all the interest fees are accumulated. Not to mention the fact that they do not have to pay the minimum each month, they simply pay the amount used for the emergency purpose that has arisen and then put the credit card back in their purse or wallet all but forgetting they have it once again, until the next emergency situation arises and they don't have the cash flow to take care of the problem.
This is turn also builds their credit, whether people can see this or not. You see when they use the credit card and then turn around and quickly pay it off, this looks good on the their credit scoring or their credit record as a whole. So which are you? The one that uses the credit card for emergencies literally forgetting you have it until the absolute need arises and you have to use it, or are you the individual that goes out and uses it up to the maximum amount allowed and simply pays the minimum required each month?
by Mario Churchill
There are some people who apply for credit cards and have them for maybe a year and they have never used them. They pay the monthly fees that are required if there are any. These people simply have the credit card with obviously extended ability to use it and they know they could use it if they wanted to. Many have unsecured credit cards to top it all off.
So, why don't these people use their credit cards? Is it out of fear, or are they so used to using cash it just never crosses their mind to use the credit card in the first place?
It could be that way however believe it or not, that's not exactly true. A lot of people who have been approved for an unsecured credit card only use the credit card for emergency purposes. This way they know they have the means to do whatever it is that is so important and they just don't have the cash funding to get the task accomplished.
This is such a good idea, and those who are in control of their spending habits are able to do this. It's as if they put the credit card in their purse or wallet and forget or pretend they don't really have it.
Although you have to admit there are several people who once they have that credit card in hand cannot help themselves but go out and use it to the maximum amount. Then when the monthly statements come in they are simply paying the minimum they can in order to actually keep the credit card.
I believe the idea of having a credit card for the sole purpose of those emergencies that arise in one's life is a good plan. And everyone knows those times do arise, often times more than once. In these cases, the person that is only using the credit card for the sole purpose of emergencies can have it paid off a lot quicker for the simple reason that the credit card is usually not to the maximum amount and can easily and quickly repaid before all the interest fees are accumulated. Not to mention the fact that they do not have to pay the minimum each month, they simply pay the amount used for the emergency purpose that has arisen and then put the credit card back in their purse or wallet all but forgetting they have it once again, until the next emergency situation arises and they don't have the cash flow to take care of the problem.
This is turn also builds their credit, whether people can see this or not. You see when they use the credit card and then turn around and quickly pay it off, this looks good on the their credit scoring or their credit record as a whole. So which are you? The one that uses the credit card for emergencies literally forgetting you have it until the absolute need arises and you have to use it, or are you the individual that goes out and uses it up to the maximum amount allowed and simply pays the minimum required each month?
0% Credit Cards: Are They The Real Deal?
0% Credit Cards: Are They The Real Deal?
by Ajeet Khurana
Whenever I hear the number 0%, I hope that it refers to the interest rate I have to pay and not the interest rate that I have to earn. There are many different credit card offers out there, and of course when you see the 0% it seems like it would be the best option. But, when you sit and think about it you might wonder why one credit card would be 0% and the other would be 26%, what's the catch?
It is not that the issuer is out to scam you. But you still need to look close. You never know what you are in for unless you read all the terms and conditions associated with the card.
0% Doesn't Mean 0% Across the Board
While there are some legit 0% credit cards out there you need to look at the fine print before you simply assume that you can buy everything with no interest. The 0% is not a blank check that you cash anywhere. If applies to some types of transactions. This isn't to say that you shouldn't take advantage; you just need to be an aware consumer and make sure that you know how the 0% works.
If you have some credit card balances that you would like to transfer than you may want to look for a 0% credit card. There are many credit cards out there that offer 0% balance transfers. The more the transfer, the higher the saving. Many people use these cards to do away with those high interest credit cards so that they can actually start making a dent in the amount of money that they owe instead of just paying off the interest each month.
Many 0% credit cards have 0% interest rate offers on specified purchases. These may be purchases at specific stores or for specific products, but depending on what you purchase these credit card offers really can save you a lot of money. You'll need to be sure to read all of the fine print on these cards to be sure that it is something that will save you as much money as you would hope.
Then there are the cards that use 0% as the way to ensnare you. Often times this 0% is good for the first six months or a year that you have a card. This is a nice way to consolidate debt, make big purchases, pay for car or house repairs, or just buy things that you have been putting off because you didn't want to pay interest. One more interesting dimension of credit cards relates to rewards and cash back.
Before you choose any one of the 0% credit cards that you come across you should read through all of the features. The prudent buyer wants to know the interest rate, not just on day one but also on later days. Do you need to pay off all of the items that you bought during the 0% time? Whether you make money or lose money will depend on how smartly you use the card.
by Ajeet Khurana
Whenever I hear the number 0%, I hope that it refers to the interest rate I have to pay and not the interest rate that I have to earn. There are many different credit card offers out there, and of course when you see the 0% it seems like it would be the best option. But, when you sit and think about it you might wonder why one credit card would be 0% and the other would be 26%, what's the catch?
It is not that the issuer is out to scam you. But you still need to look close. You never know what you are in for unless you read all the terms and conditions associated with the card.
0% Doesn't Mean 0% Across the Board
While there are some legit 0% credit cards out there you need to look at the fine print before you simply assume that you can buy everything with no interest. The 0% is not a blank check that you cash anywhere. If applies to some types of transactions. This isn't to say that you shouldn't take advantage; you just need to be an aware consumer and make sure that you know how the 0% works.
If you have some credit card balances that you would like to transfer than you may want to look for a 0% credit card. There are many credit cards out there that offer 0% balance transfers. The more the transfer, the higher the saving. Many people use these cards to do away with those high interest credit cards so that they can actually start making a dent in the amount of money that they owe instead of just paying off the interest each month.
Many 0% credit cards have 0% interest rate offers on specified purchases. These may be purchases at specific stores or for specific products, but depending on what you purchase these credit card offers really can save you a lot of money. You'll need to be sure to read all of the fine print on these cards to be sure that it is something that will save you as much money as you would hope.
Then there are the cards that use 0% as the way to ensnare you. Often times this 0% is good for the first six months or a year that you have a card. This is a nice way to consolidate debt, make big purchases, pay for car or house repairs, or just buy things that you have been putting off because you didn't want to pay interest. One more interesting dimension of credit cards relates to rewards and cash back.
Before you choose any one of the 0% credit cards that you come across you should read through all of the features. The prudent buyer wants to know the interest rate, not just on day one but also on later days. Do you need to pay off all of the items that you bought during the 0% time? Whether you make money or lose money will depend on how smartly you use the card.
Subscribe to:
Posts (Atom)
