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There definitely is no lack of the number of companies and banks happy to offer us their ‘exclusive’ credit card, nowadays.  By way of the post, at the mall, on the television – everywhere, there are people so enthusiastic to tell us that their card offers us so much a better package – with their fabulous rates, marvelous incentives, free gifts and no strings attached sign ups.

Where do we commence?  How can we as a matter of fact decide if any one credit card is good for us than the others?  Or are they all ‘very much much of a muchness’, as your grand mom used to say?

Well, there are, in fact, significant ways in which credit cards can vary and it is better to take our time to shop around compare credit cards, to see which one will give us the best package – not only when we commence using the card, but over a longer extent of time.

Thus, when we have the ‘personalized’ letter giving us the prospect of having a respective card, the first thing we should do is to find out more about the company making it – that’s easy these days with the internet.  We should also read the small print of the letter as meticulously as we can.  The APR could look appealing – if it is a high APR then we will automatically reject it, anyway – but we need to make sure that we know what ‘extra’ charges  card they might entail in the way of annual fees, administrative costs etc.  It is worth accentuating that, however appealing an offer appears to be, if the card has a high APR then it could leave us with much higher charges and should be ignored.

The three most important variety of credit card we are faced with are the behemoths of the credit card industry; namely Visa, MasterCard and American Express, or AMEX as they more often known today.  Of these, AMEX is the only one which is engaged in producing the cards and operating their own banking organization without the assistance of any input from outside organizations or banks. Both Visa and MasterCard are umbrella companies who have their cards circulated by other banks and companies.

Presently, AMEX is the least chosen of these cards on a worldwide basis, although this situation is briskly being dealt with by the company.  Both Visa and MasterCard have a much higher worldwide coverage, so if we are considering considerable international use of the credit card, they are currently more workable options.  This last point is even more accurate of the Discover credit card, which has a more limited range of possible outlets than AMEX.

There is also the chance of considering whether we opt for a bank or credit card company which is more local to us, or with which we have association already, or whether we go to the online world and search for the best packages accessible there.  As Internet banking has become far more common in recent times, the web has refined as a facility for card companies offering credit card approval online, that deserves attentive consideration.

We should ensure to have it totally clear in our heads specifically what we need from our new card before we commence to shop around for it, so we can be certain of acquiring the best possible arrangement for ourselves.

Technorati Tags: compairing credit cards, credit card, credit cards

When you are in college, you see credit card offers just about everywhere. Most of the times, the credit card advertisements do not even revolve around low interest rate or other incentives related to the credit card. Instead, the benefits for credit cards are free pizzas and burgers. In my college this is quite common. It is funny to think that such an well read group would fall into this plot. Just for a free pizza, university students apply for credit cards.

Although I frown upon this practice, I myself received my first card in a same method. We will talk about Chase Student Credit Card Review.

+1SM Student Master Card is offered by Chase Bank. Regarding the Chase Student Master Card, I have to say that I don’t have that much to complain but at the same time I don’t have much to applause for either.

When I got my credit card, I thought it would be 0% APR. When I opened my first bill, to my horror it was 13.24%, which is substantially high. Since I already made a few mistakes, I had to be careful when it came to finances. I would usually pay off my entire credit card, instead of adding more debt.

Chase offers karma points as one of the incentives. The karma points and other benefits chase promises through Karma points is quite pointless (at least from my experience). Karma points should not be an incentive when considering for a credit card. The one thing I like about the credit card is the bill paying option, which is quite easy - I guess it is a lot easier given that I am active user of online banking. The billing interface, which is one of big plus points for me is simple and easy, no one should have any reason to complain for not being able to pay online. What’s even better is that you can link you checking account and savings account with your credit card, and just pay your bills from checking account to credit card. There also appears to be regular credit limit checks – I was started off with $300, and a few months later I my credit limit was increased to $800, and then a few months later to $1600. Now, I am hoping my credit limit will increase.

To see your credit limit increase without asking for it is definitely a bonus. The reason is it gets you good credit score. I am not really interested in increasing my credit limit to spend more, but to rather to increase my credit score as it depends on Debt to Credit Ratio. The lower debt you have compared to your credit limit, the higher the chances of you increasing your credit score. A higher credit lmit is good for you credit score. Other ways in paying for college.

Technorati Tags: chase, credit card, credit score, debt, fico, finance, loans, Master Card, student debt

Do you have a credit card? If so, chances are that you are not using the best one relating to your situation. Read on to help you choose the best credit card.

For instance, a card used for 0% balance transfers will not necessarily be the best credit card for regular purchases, or one used to get cash back might actually work out more expensively than a low APR card.

Let us examine the three major reasons why people use credit cards:

Balance Transfers
It has become commonplace to switch credit card providers based on the length of the 0% balance transfer deals they offer.

If you have a significant balance on your card and you plan to pay it off over a number of months or years, then you have to take advantage of the different balance transfer deals on the market.

Purchases
This is the main reason people have credit cards and if you will use your card exclusively for purchases, you need to find one with the lowest APR (interest rate).

Some people might ask why not take advantage of a 0% purchases credit card deal. Well, it really depends on the normal credit card APR and how long you plan to use the card. What if the 0% purchases deal expire and all of a sudden you have to pay 18% APR when you could have applied for a card with no 0% purchases deal, but 12% APR? Which one would you rather have?

Cash Back or Air Miles
This one is not so simple, as many people think that they might as well get rewarded for it if they spend money on their card? Well, normally these types of credit cards have a fairly high APR.

Let’s use an example: Say you have to choose between two credit cards, one that has a cash back offer and one that does not. Easy choice, right? However, say the cash back card pays you $1 for every $100 you spend and has an APR of 15.9%. The other “normal” card has an APR of 13.9%. Now the normal card is the best choice, unless you pay off your balance every month and do not pay any interest.

Then you also get all the hybrid cards. Some cards might have 0% balance transfer and 0% purchases deals. Others might have a low APR for the life of balance transfers. This is where you need a really good guide to show you all the different factors when considering applying for a credit card.

So when choosing a bad debt credit card, don’t just apply for the first one you come across. You need to decide what the card will be used for and then check all the factors that will impact this. Do not let hidden aspects like high APR or default fees make you regret your choice!

Technorati Tags: apply for credit card, best credit card, credit card

You should always reduce your credit card debt no matter what you owe. Here are a few steps to reduce your credit card debts.

Credi card debt is a stressful situation but don’t sit on your debts, they’ll grow out of proportion. There are a few tricks to reduce your debts.

How to cut my Credit Card Debt

Quick steps to Reduce Credit Card Debt

• Assess Your Situation: Take a moment to figure out how much debt do you have, what kind of debt is it. Compare your debts with your income. Having a complete picture of your financial situation will help you create a personal plan to pay off your debt and get your finances back on a positive track.
• Define a realistic monthly Budget. If you really want to reduce your debts, you must evaluate how much money you get from your job every month. Then you calculate all your expenses like food, house, electricity, insurance, car,… If your expenses are higher than your revenues, you need to change something: new job, new home, selling your car,…
• Cut every extra expenses. Theatre, cable, new clothes every week, restaurants,… If you buy a coffee every day of the week, it costs you near $100 per month. Is it necessary?
• Cut your Credit Card Cut your card or put it in the freezer. You can keep your credit card for emergency but for the daily purchases, pay cash.
• Consolidate your credit card debts. Try to find a new credit card with lower interest rate. Then, you move all your debts from your other credit cards to this new credit card Or, a better solution, you go to your local bank and you ask for a debt consolidation. Don’t forget to cut your credit cards, you don’t consolidation to have more debts!

These are just a few tricks to learn how to reduce your credit card debts. Take action today. It is in your interest!

Technorati Tags: credit card, Debts, finance

Do you still feel it worthwhile to pay for purchases with your rewards credit cards? It seems issuers of rewards credit cards are taking great pains to offer rewards programs — but the rewards now come with many strings attached. For instance, rewards items seem to be priced higher and your ability to earn points is lower.

But although you may have to jump over more hurdles, there are still ways to profit from rewards credit cards. Here are a few easy ways to max your returns and get the most value.

• Assess your spending habits. To maximise the accumulation of rewards points, you need to calculate the amount you spend on your rewards credit cards each month. Your spending habits may not necessarily match with your rewards card. According to a major financial services research group, spending below $1000 a month on your card is not worth your while.  To get the most out of rewards credit cards, you should charge at least $12,000 a year on your plastic. If the sums don’t add up for you then it may be that the best credit card for you is actually another card type.

• Match rewards programs with your interests. When you compare credit cards, you realise that there are four types of rewards credit cards: frequent flyer rewards, general rewards, cash-back rewards, and instant rewards. If you travel regularly, frequent flyer rewards credit cards may do the trick for you; but there would be no point having them if you don’t fly often. If you’re worried about maximising your budget, you might be better off having cash-back rewards credit cards or similar cards that reward you for purchasing goods you need to buy regularly.

• Get rid of less advantageous rewards cards. If you think you can earn more points by having several rewards credit cards, then think again. Chances are you are diffusing your capability to earn more rewards by spreading the spending over so many cards. Or, you may be charging more spending onto rewards credit cards whose advantages are inferior to others. If you do have many cards in your wallet, you may have to do credit card comparisons to decide which among them need to be dropped.  Cards with higher interest rates and expensive annual fees may have to go first.

• Understand the program rules. Make sure you read through the fine print for the rewards program to understand how it works, for example many schemes have expiry dates on the points earned so its a case of use them or lose them. While that used to be the rule, it is now common practice in the industry to set an expiry date on accumulated rewards points. Make sure to read the fine print when you do your credit card comparison.

• Try to pay your account off in full each month. When you carry balances from month to month, you are charged interest which immediately negates any value you could expect to gain from your rewards credit cards. This is particularly true if you want to earn points towards a frequent flyer program. If, however, you cannot pay off the entire balance each month but would still want rewards credit cards to be part of you, you may have to settle for rewards programs offering cash-back or instant rewards.

Rewards credit cards are now on offer from all issuers. When looking for a credit card it used to be as simple as deciding to get a rewards credit card or not but now it’s a bit more complex. It really comes down to the card that will fit your spending and lifestyle best in terms of the rewards on offer but also the costs involved from the interest, fees or any special conditions or restrictions. By doing some good credit card comparison and planning your spending you can boost your return from rewards credit cards.

Article by Richard Greenwood Director of click4credit.com.au

Technorati Tags: credit card, credit card comparison, credit card rewards, credit cards, rewards credit cards

Finding it hard to meet spending commitments? While taking out a credit card could be an effective means of tackling money management problems, borrowers should ensure that they do not fall into the trap of getting themselves into an untenable financial position.

In a Money-AU.com article, Sharat urges people to avoid making a number of common mistakes when using credit cards. One of these, "which is something that nearly everyone does", is purchasing unnecessary items on plastic.

That, the Money.AU.com writer states, could be avoided if time was taken to examine credit card statements on a regular basis, something that could help them to recognise wasteful expenditure.

Meanwhile, those looking for an effective means of keeping on to top of credit card expenditure may also wish to search for a product offers an interest free period on purchases.

Furthermore, borrowers are urged to ensure they are getting the most competitive deal possible.

The article states that many consumers are too lazy to look around for the best credit cards with a good interest deal, and states that people should be aware of some rates given on unsolicited credit card offers. Those that have had money management problems in the past however were advised that they are unlikely to be able to obtain the most competitive rates or terms.

in addition, credit card users should always ensure repayments are always made on time, not only to avoid being fined, but also to avoid damaging their credit ratings, something that affect their ability to access credit in future.

An earlier Money-AU.com article stated that while a 0% balance transfer deal can be an effective way of shift debts, borrowers should ensure they do not use the credit card for any purpose other than repaying what they owe.

Technorati Tags: 0% balance, credit card, interest free period, rate interest

Banks and other financial institutions issuing credit cards have offered consumers with a bewildering array of card deals, including cards with rewards programs and low interest credit cards. With the variety of credit card offers to choose from, it only means that you can have at least one card in your wallet. To spare you from accumulating credit card debts, you can actually make low interest credit cards work in your favour.

Before you can make these cards work for you, it is important to know the two types of low interest credit cards. These cards can have a continuing low interest, or offer low honeymoon rates which eventually revert to a higher rate after the expiration of the introductory period.

Cards with continuing low interest rate

Credit cards that attract continuing low interest keep their low-interest offers for as long as you have the card. These types of low interest credit cards work if you are revolver, that is, you pay only a portion of your account each month and revolve the rest of the credit card debt balance from month to month. You can find a number of these low interest credit cards with interest rates as much as 9 per cent less than the standard rates. If you carry an average balance of $2,000 in your account, the interest difference can mean a savings of at least $180 over one year.

These low interest credit cards often levy higher fees, however. They may charge higher annual fees, and ATM withdrawal fees. As with most other types of cards, the cost of cash advances are far higher than on purchases and should generally be avoided. These cards do not allow you to earn rewards points.

But you can address this drawback by getting another credit card with rewards programs. You can use the low interest credit card to buy expensive items which you cannot otherwise afford to pay in full after a month, and would prefer to pay in instalments. The card with rewards program can be utilised to pay for goods and services which you can afford to pay off in full every month.

Cards offering low honeymoon interest rate

These types of low interest credit cards are particularly useful if you transfer your balances from your other existing credit cards. The low, or even zero, rates are usually valid for a certain period, say six months. You’ll need to watch out for when the intro rate expires and interest moves to the standard and much higher rates.

To save more money using these low interest credit cards, strive to clear the transferred balance of credit card debt within the introductory period. The jump between the intro rate of 0% APR and the standard rate of 16% is massive. You could save around $160 on a $2,000 balance over six months.

If your looking to eliminate your debts then you should focus on using low interest credit cards to pay off your debts at low cost, not to accumulate further debts through purchases. You will only get this special rate on balance transfers although some cards have intro offers on purchases as well. More important, repayments you make will apply to the transferred (low-rate) balances first. This means the more expensive credit card debt for new purchases will get paid off last - and continuing to be charged higher rates all the while.

Regardless of which type of low interest credit card you decide to use, bear one thing in mind. To make low interest credit cards really work for you in getting rid of credit card debt quickly, you should pay significantly more than the minimum amount due each month.

This article is bt Richard Greenwood from click4credit.com.au, an Australian credit card comparison site featuring leading issuers and cards including Bankwest Lite Mastercard.

Technorati Tags: credit card, credit card debt, low interest credit cards

Credit cards have great utility. Used wisely, credit cards help you accomplish many things, including the very important task of managing your cash flow. Indiscriminately used, credit cards can plunge you into a debt hole so deep you could get stuck for years.

Debt can have a devastating impact on lives. If things reach crisis point then the stress of debt can lead to problems in your relationship and at work. Before that happens, it pays to pause and consider more responsible use of credit cards. Cherish credit cards for the convenience they can provide, but do not allow yourself to get carried away. Below are a few ideas.

• Avoid making minimum payments. Try and pay the balance off in full each month if you can. This is the best way to minimise interest charges. If this is not possible, always pay substantially more than the minimum repayment. Credit cards set their minimum payment at only 1.5 to 3 percent of the balance you have outstanding. At say 2.5 per cent, this is only $25 for every $1000 in your account. Even if no interest and fees were added, it would take you 40 months — that’s 3 years 4 months — to pay off the principal. When you include interest (average APR is 16 per cent) and fees, why, you would need at least 11 years to clear the $1000 debt. To figure out exactly how much quicker you could wipe out your own debts by raising your repayments search online for a ‘debt repayment calculator’ and see how the interest paid drops.

• Arrange for a lower credit limit. The credit limit allowed on credit cards is not meant to be taken as an obligation to spend that much. But these tacit invitations are so difficult to resist, so do something proactive: call the credit card company and ask them to lower your credit limit. Set it at a level that you can comfortably repay.

• Avoid making late payments. If you miss the due date for the statement then you can be hit with late payment fees which can be very high as well as extra interest. The expense is totally avoidable on your part. In addition it adds more to the money you owe.

• Pay early. Aside from protecting you against late-payment fees, this works to your benefit if you usually carry a balance. Most credit cards use the average daily balance method to calculate interest. By pay money off earlier in the month you will lower your outstanding balance throughout the month and cut back on the interest due.

• Monitor your spending. All credit cards provide online services. You can use these to check how much you have spent during the month and the amount that will be included in your statement for the month. This gives you enough time to prepare for the payment when it comes due.

• Stay away from cash advances. If you are making cash advances from credit cards more frequently, you really need to review your budget. Cash advances are expensive. Many issuers charge around 3% of the withdrawal as a instant transaction fee. There is no interest-free period on cash advances and the interest rate is often higher than that for purchases.

• Pick the best credit cards for your needs. Your credit cards should fit your paying behaviour. If you normally pay off your balance in full each month (called a “transactor” in the industry), the interest rate on your credit cards won’t matter at all; instead you’ll want longer interest-free periods and probably a rewards program. If you usually carry a balance (called a “revolver”), low interest rates are extremely important. Be honest with yourself: if you’re a revolver, choose the appropriate credit cards.

Make sure you are the one in control of your credit cards. They can be very handy tools in achieving some of your goals.

This finance article is by lowinterestcreditcards4u.co.uk co-founder Richard Greenwood which compares cards and products including Visa debit cards. Visitors can compare products side by side and then apply online.

Technorati Tags: best credit card, credit card, credit cards, low interest

Credit cards are the moden replacement of the good old cash. That is something we all agree with. How many of us do not carry money in our wallets? We just take a little change in our hands but not ‘big’ bills. Credit cards have even been given the nickname  plastic cash , showing just how much a part of everyday life it has become. But this culture of credit cards has meant that we have been one of the causes for the world to come to where it is today one with economies tumbling and a global recession. Credit card debt has reached phenomenal highs, and credit card debt management is something many of us lack.

What kind of credit card debt management will help us get out of the mess we have gotten into? First of all, we need to make sure we do not spend more than we can afford. When it comes to personal finance, the previous statement is considered as the rule of thumb. It is easy to spend cash when using a credit card, as you believe that by the time the credit card bill arrives, you will have the cash to pay the bill. Once you make a couple of similar spendings, you become not capable of settling the credit card bill in full once it arrives. At this point, credit card debt management should comes into play, in case if you have any hope of not getting in to bad finances.. Many people think that, one should start credit card debt management only when you go in to bad credit. This is one of the main misconceptions and the results will be damaging. Therefore, the credit card users should start credit card debt management as soon as they receive their first credit card. There is also the problem that once the bills arrive, there are some who keep forgetting to pay those bills on time, and so there is a huge interest added to the bill, which makes the amount to be paid larger and larger.The credit card bills should be paid ontime, so that you do not end up paying much more than you should be and that too for any adequate reason. All this helps in credit card debt management.

In case the credit card bills has grown to a state where you cannot absolutely pay it back in the usual way, options such as consolidated loans will be a great option for looking at, as you will only be charged less interest. Although the interest that you will end up paying is higher in this solution, it could also give you more to sort out your finances and make sure your credit card debt management is ready to begin.

Technorati Tags: consolidated loans, credit card, credit card bill, credit card debt management

There are a couple factors to take into consideration before applying for a new credit card. Is this going to be for the long term? Do you only need it to start a business? Do you need to establish a credit history or are you getting it to earn rewards? Each of these questions should be answered before you begin your search.

Every person who has ever had a credit card knows that interest rates are what makes or breaks somebody. There are stories every where about people getting into trouble with credit card debt and them not even being able to pay down the interest earned on the principal balance. The first one to look at would be a low interest credit card. With a low interest rate you can focus on paying down debt instead of worrying about it. Do your best to pay your monthly balances in full so interest will not be added to your balance.

If you did not know already, interest rates are based on a variable rate. What you can do before time is research a fixed rate credit card so you will know what your payments will be every month. Most banks will let you enjoy a zero percent interest rate for a specific time period like six months or a year. If you have to carry a balance from month to month and are on a budget then this type of card might be your best bet.

One popular type of rewards program is for people who travel. These are usually called airline credit cards. With this specific card you earn points towards your next flight. You do not need to earn the full amount to redeem them. This is a easy way to get a cheap flight. The interest rates might not be as good as normal cards without rewards but if you are good about paying your bills on time or in full then you have nothing to worry about.

There are many other types of credit cards to choose from. Regardless of which one you choose to apply for make sure you read all of the terms and conditions so you know what to expect with it. This way there will never be any surprises when it comes to your next credit card statement.

Technorati Tags: airline credit card, credit card, fixed rate credit card, low rate credit card