We've all seen the commercials for credit card companies: Well meaning parents give a credit card to a college student for "emergencies," and either while showing up for an impromptu visit or getting a
heart-stopping bill find out the card has been "maxed out."
While shopping, at church and eating in fast-food places I have heard children and teenagers ask, plead for and beg their parents for credit cards. "I'll only use it in an emergency!" yeah. Seldom have I heard a parent ask the interesting question: "Exactly what do you consider an 'emergency?'" The answer might come as a surprise.
A few years ago I did a survey of teens in my church, then sat down with their parents with the results. These folks were getting hit with the "I need a credit card" petition. Amazingly, the top answers were not: paying for a tow when the car breaks down, an emergency gas-tank fill up, missing the last bus and needing a taxi or anything an adult would choose. The top answers turned out to be: dinner at the mall perhaps including friends, clothes, food delivery for parties and other non-emergency items.
I wondered who these teens were. I thought I knew them, having watched them grow up from birth. Did some metamorphosis take place and turn them into different people? I thought they had sense.
Speaking with them and their parents, one theme presented itself: the perception of credit cards as opposed to reality. Small wonder. Media ads everywhere give the impression anything can be had by using plastic. And had now. No mention is made of the reality that shows up in a month: the bill. No matter, the payment is miniscule, just make that.
Using one parent's credit card bill, I pointed out the credit limit- a high figure- $1,500. Some of the teens cheered. But wait-there's more. Moving down the bill, the monthly payment was only $45 a month. Teens cheered. But wait-there's more. Continuing down the bill, I pointed out the principal (the amount actually applied to the whole balance due) being paid was a paltry $9.52 on a balance of $1,257.85. No one cheered.
Credit card companies are there to make money. Period. They are NOT going to help anyone pay the card off and get out of debt. They make the majority of their money on the interest payments (the majority of that
"minimum" payment) and on late fees. They have no incentive at all to helping anyone but themselves.
I finally had the teens attention. Up until that moment, the meeting had been treated like a joke. "I'll get a job and pay it off myself," "All I have to do is make the minimum payment, right? No problem." The question was asked: What do we do?
Until the United States Congress convinces credit card companies to raise the minimum payments to at least 10 percent of the balance and add interest to that amount, those swimming in credit card debt could drown. Instead of waiting, I offered the following advice:
Before using a credit card, look at the interest rate. For example, if a card has a 20 percent interest rate, add a zero to it. Two hundred percent is what you'll pay back by making the minimum payments only. That means for a $20 pair of jeans, not only paying back the $20, but nearly an additional $40 in interest. Or before each use of the card, sitting down on paper and using the math formula I=PRT. Interest= Principal multiplied by the Rate multiplied by Time. The formula comes very close to the same amount. No one seemed willing to pay $60 for a $20 pair of jeans.
I had credit card debt until I paid off my last card 2 years ago by taking the bill and adding a payment of 10 percent of the balance to the existing "minimum payment." I saw the balance start to drop dramatically. When I could afford more, I paid more. On the glorious day of zero balance, I cut the card into little pieces and sent it in with the last payment. I patted myself on the back, bragged to friends at work and was proud of myself.
Now that I had that monthly payment still in my budget, what to do? There are all kinds of offers for "pre-paid" credit cards. I suggest reading all the print, fine and otherwise. You give them your money,
then use the card to spend only the amount you've paid in. If you don't use the card, the amount builds up. Who gets the interest on that account? Not you. The credit card issuer gets that interest, along with any other fees for "managing" the account, processing the purchases, etc. That didn't sit well with me. The whole idea of paying off credit cards is to have more money, not give it to someone else.
I solved the problem easily by going to my credit union and opening a second checking account. This account has a debit card with a credit card logo on it. It can be used as a debit card or as a credit card. I simply make the payments to that account that I was making to a credit card company. And who gets the interest on the account? ME. I manage the account, track the purchases, everything.
The parents and teens both realized this solution is not only feasible, but easy to do. A teen can build financial responsibility by getting "that job" and depositing some or all of their money in the account. A college-bound student has the "allowance" their parents deposit. They can only spend what they have, no more. Emergency account? Save money in the savings account and both parties sit down and if necessary, write down what is a true emergency. I suggested parents may want to impose a penalty for misusing the "emergency savings."
I was asked about younger children. How do they not lose their heads in a "plastic world?" With a family of children I that I used to watch, I asked the parents if I could try an experiment in money management training after a trip to the store. I would give each child an allowance. Not cash, I gave store gift cards. Since the oldest child had more responsibility she would receive a higher allowance. The money would be loaded onto their cards, and the children would be given a 3x5 card with their balance on it. We agreed to several rules that would be followed by the children and adults, and put everything in writing, in case the children needed reminders. When everything was ironed out, the children were informed. They were elated. The oldest child was given a calculator to figure sales tax on items to help others realize if they had enough money for the entire purchase. They could not borrow from each other or adults for a purchase.
They had "plastic" almost like adults, but learned quickly that the card is not a spend-all, have-all. They could only spend what they had. Their parents did not allow the children to put their cards together
to buy one toy- avoiding the "who owns it" argument later.
While lay-away was available, they were introduced to payments, responsibility, and what happens if those payments were not made. Borrowing from the parents/other adults (only with the parents permission) meant making payments with a small (3 percent interest with consequences if payments weren't made). When Wal-Mart announced lay-away no longer available, I watched as the oldest child asked if she could have a second gift card to save money on when those "gotta-have-it-now" purchases are encountered. She was 10 years old. I was never prouder. No one had mentioned having two cards or a savings account until that day.
Now, each child has two cards, one marked "savings" and one marked "main." They also now can deposit money into their parent's savings account (Mom keeps excellent records) to have money to spend somewhere else. When these children are old enough for checking accounts they will be well-tuned to financial responsibility.
The oldest child is almost in college now (I feel old), has managed a checking account and debit card for almost a year, and is researching scholarships and student loans for college. She does now to read all the print in an application and to ask lots of questions. She's learned to look before she leaps. The rest of the children are learning from her, too.
While these methods may sound simplistic, they really do work. Perhaps the store gift cards will work in some families, in others it may not. Some use "money jars" stored in the parent's closet.
There are many different methods out there. The only true way to find out what works is to give different methods and honest try, say six months.
Whatever method or plan works for you or your family, stick with it. It takes effort.
Here's some incentive: A lot of the adults returning home to live with/off of their parents are doing so because of overwhelming financial irresponsibility. Teaching them to be responsible now will help help them in their future, and parents can have that "sewing room," "den," etc. of their own. And keep it.
Showing posts with label Credit Card. Show all posts
Showing posts with label Credit Card. Show all posts
Wednesday, 22 December 2010
Credit Card Debt Advice
If you're looking for credit card debt advice, chances are you've accumulated higher balances on your cards than you know what to do with. If you're like many people,
you may be charging gas and groceries, because you just don't have enough money to make ends meet every month.
This is a bad situation to be in, but be assured that you're not alone. A lot of us have been there (a lot of people are still there), and there is hope. I used to be deep in debt myself, but I've managed to pay off those credit cards, and I don't carry a balance any more from month to month. I'm going to give you credit card debt advice based on my experience.
Ready? Here we go:
1. Get over the idea that you'll get anywhere paying the minimum payment.
The credit card companies specifically design things so they can stretch out your debt over years (and even decades) to keep you paying interest to them for as long as possible. Why wouldn't they? Why would they want to work when they can get tons of money for free just by letting you borrow theirs?
Many people in credit card debt think they can climb out by paying a little extra on each card every month. This is actually a bad approach. If you remember only one piece of credit card debt advice, remember the next one...
2. Pay off your highest interest credit card first.
If one card is at 9%, one is at 28%, and one is at 15%, you want to focus on the one that is at 28%. Put all your extra resources into paying off that card while you continue to pay the minimums on the other cards.
To many this seems counterproductive, but the highest rate card will grow the biggest the soonest, so it's important to get rid of that debt as soon as possible.
3. You can negotiate a better deal on many cards.
If you're feeling overwhelmed by those interest rates, call the credit card companies and request a better deal from the customer service representative. Just tell the rep you're getting better offers from other credit card companies and that you're thinking of switching. Most reps are authorized to lower rates instead of risking customers.
This advice won't just lower your interest rate so your balance doesn't increase so quickly, but it will also make your minimum payment lower each month.
4. Move your balances to cards with zero-rate introductory rates.
You may have heard this piece of credit card debt advice before, but did you act upon it?
If you can qualify for a new card with a low or zero introductory rate, don't hesitate to shift your existing balances over to that card. This can save you a lot of money in interest while you whittle away at your debt
Just be sure to read the fine print. Introductory rates are just that: rates you only pay for 6 or 9 months. The rates can hike right up to the old rates (or even higher) after that period, so you want to make sure to transfer your debt over to a new card with a new introductory rate once that happens.
Also watch out for any balance transfer fees, and make sure the low introductory rates count for the balance you transfer, not just new purchases.
5. As you pay off the highest interest cards, cancel them.
Remember the earlier advice to pay off your highest interest cards soonest? Once you have them paid off, cancel those suckers.
Replace them with debit cards, low-interest credit cards, or no-balance charge cards. It's a good idea to keep at least one credit card for emergencies, but you don't need a wallet full of them.
A good way to keep that one for emergencies is to make sure you leave it at home. Don't take it out where you can fall back into the habit of using it at the mall or anywhere you might make impulse purchases.
Hopefully this credit card debt advice has helped you. The important thing to realize with paying down your debt is that it probably will take years. That can be depressing, but never stop believing that you can do it. Stick with the plan and make it work!
you may be charging gas and groceries, because you just don't have enough money to make ends meet every month.
This is a bad situation to be in, but be assured that you're not alone. A lot of us have been there (a lot of people are still there), and there is hope. I used to be deep in debt myself, but I've managed to pay off those credit cards, and I don't carry a balance any more from month to month. I'm going to give you credit card debt advice based on my experience.
Ready? Here we go:
1. Get over the idea that you'll get anywhere paying the minimum payment.
The credit card companies specifically design things so they can stretch out your debt over years (and even decades) to keep you paying interest to them for as long as possible. Why wouldn't they? Why would they want to work when they can get tons of money for free just by letting you borrow theirs?
Many people in credit card debt think they can climb out by paying a little extra on each card every month. This is actually a bad approach. If you remember only one piece of credit card debt advice, remember the next one...
2. Pay off your highest interest credit card first.
If one card is at 9%, one is at 28%, and one is at 15%, you want to focus on the one that is at 28%. Put all your extra resources into paying off that card while you continue to pay the minimums on the other cards.
To many this seems counterproductive, but the highest rate card will grow the biggest the soonest, so it's important to get rid of that debt as soon as possible.
3. You can negotiate a better deal on many cards.
If you're feeling overwhelmed by those interest rates, call the credit card companies and request a better deal from the customer service representative. Just tell the rep you're getting better offers from other credit card companies and that you're thinking of switching. Most reps are authorized to lower rates instead of risking customers.
This advice won't just lower your interest rate so your balance doesn't increase so quickly, but it will also make your minimum payment lower each month.
4. Move your balances to cards with zero-rate introductory rates.
You may have heard this piece of credit card debt advice before, but did you act upon it?
If you can qualify for a new card with a low or zero introductory rate, don't hesitate to shift your existing balances over to that card. This can save you a lot of money in interest while you whittle away at your debt
Just be sure to read the fine print. Introductory rates are just that: rates you only pay for 6 or 9 months. The rates can hike right up to the old rates (or even higher) after that period, so you want to make sure to transfer your debt over to a new card with a new introductory rate once that happens.
Also watch out for any balance transfer fees, and make sure the low introductory rates count for the balance you transfer, not just new purchases.
5. As you pay off the highest interest cards, cancel them.
Remember the earlier advice to pay off your highest interest cards soonest? Once you have them paid off, cancel those suckers.
Replace them with debit cards, low-interest credit cards, or no-balance charge cards. It's a good idea to keep at least one credit card for emergencies, but you don't need a wallet full of them.
A good way to keep that one for emergencies is to make sure you leave it at home. Don't take it out where you can fall back into the habit of using it at the mall or anywhere you might make impulse purchases.
Hopefully this credit card debt advice has helped you. The important thing to realize with paying down your debt is that it probably will take years. That can be depressing, but never stop believing that you can do it. Stick with the plan and make it work!
Get Rid of Credit Card Debt
Credit card debt is no fun. If you are saddled by credit card debt, you are not alone. I read somewhere that the average family in America has credit card debt to the tune of $9,000.
Millions of people are in debt to credit card companies and struggle to make the minimum payments. Here are some tips that you can use to start erasing your credit card debt.
1) Pay more than the minimum payment. Always pay more than the minimum amount that you owe. If you can afford to do it, double or triple the minimum payment. This will help you get rid of credit card debt more quickly. See the credit card payment calculator at bankrate.com (http://www.bankrate.com/brm/calc/MinPayment.asp) to see how paying off more than the minimum payment will help get you out of debt faster.
2) If you have multiple credit cards, you might want to concentrate the bulk of the money you have available to paying one off at a time. The credit card you should focus on first is the one with the highest annual percentage rate. Pay this card off and then move on to the next highest one and so forth. This not only gets rid of the worst credit card debt (i.e. the one with the highest interest rate), but it gives you a sense of accomplishment and peace of mind, knowing that you have one less payment to worry about.
3) Something you might want to try to do is call your credit card company and speak to a customer service agent about getting your interest rate lowered. This would help lower the strain of your credit card debt. This is not something that is guaranteed to work, but it is worth a shot.
4) Try not to rack up your credit card bill. If you can avoid it, do not use your credit card at all, as this will just put you deeper into debt. Try to pay cash for what you need and eliminate the things that you want (even if only temporarily). The horrible thing about credit card debt is that it is so easy for your debt to increase.
5) Write down a list of expenses. It is very beneficial to know exactly where your money is going each month. Money seems to disappear before you even get your hands on it. Writing down a list of where your money
goes will get you thinking about certain areas where you can save money. You can change your money habits by taking the time to understand where it is going. When you look at your list (and you should include what you are paying in credit card debt), you will probably be motivated to do what you can to try to hold on to more of your money.
6) Transfer your debt from high interest rate cards to those with lower interest rates. It makes sense to do this if you can.
7) Pay down your credit card debt before you put money in a savings account. Your credit card interest rate is exponentially higher than what you gain from a savings account at a bank. Get rid of the credit card debt first, otherwise it will keep growing.
I know that those credit card bills look formidable, but it is possible to get out from under that oppressive burden. It will take some time and a little determination and planning, but it is possible. Good luck.
Millions of people are in debt to credit card companies and struggle to make the minimum payments. Here are some tips that you can use to start erasing your credit card debt.
1) Pay more than the minimum payment. Always pay more than the minimum amount that you owe. If you can afford to do it, double or triple the minimum payment. This will help you get rid of credit card debt more quickly. See the credit card payment calculator at bankrate.com (http://www.bankrate.com/brm/calc/MinPayment.asp) to see how paying off more than the minimum payment will help get you out of debt faster.
2) If you have multiple credit cards, you might want to concentrate the bulk of the money you have available to paying one off at a time. The credit card you should focus on first is the one with the highest annual percentage rate. Pay this card off and then move on to the next highest one and so forth. This not only gets rid of the worst credit card debt (i.e. the one with the highest interest rate), but it gives you a sense of accomplishment and peace of mind, knowing that you have one less payment to worry about.
3) Something you might want to try to do is call your credit card company and speak to a customer service agent about getting your interest rate lowered. This would help lower the strain of your credit card debt. This is not something that is guaranteed to work, but it is worth a shot.
4) Try not to rack up your credit card bill. If you can avoid it, do not use your credit card at all, as this will just put you deeper into debt. Try to pay cash for what you need and eliminate the things that you want (even if only temporarily). The horrible thing about credit card debt is that it is so easy for your debt to increase.
5) Write down a list of expenses. It is very beneficial to know exactly where your money is going each month. Money seems to disappear before you even get your hands on it. Writing down a list of where your money
goes will get you thinking about certain areas where you can save money. You can change your money habits by taking the time to understand where it is going. When you look at your list (and you should include what you are paying in credit card debt), you will probably be motivated to do what you can to try to hold on to more of your money.
6) Transfer your debt from high interest rate cards to those with lower interest rates. It makes sense to do this if you can.
7) Pay down your credit card debt before you put money in a savings account. Your credit card interest rate is exponentially higher than what you gain from a savings account at a bank. Get rid of the credit card debt first, otherwise it will keep growing.
I know that those credit card bills look formidable, but it is possible to get out from under that oppressive burden. It will take some time and a little determination and planning, but it is possible. Good luck.
Reasons to Pay Your Credit Card Bill in Full
Do you dread each month when you are looking at your credit card bill? You are like many Americans who are overwhelmed with credit card debt. However, it is vitally important to your finances to get this under control
as quickly as possible. I am going to list some reasons why it is important to pay your bill in full each month. If you are unable to pay the bill in full, you need to consider creating a strict budget and sticking to it, as well as consider obtaining a lower interest rate loan to pay your balances off, or even consider applying for a new card that allows interest free transfers for a certain period which will allow you to quickly pay the debt off.
Reason #1. Your credit rating. If you are only paying the minimum payment each month, you are setting yourself up for problems here. It is very important to keep your credit rating as high as possible so that your credit card balance does not provide a problem when you are looking to purchase a home or car. You want to make sure payments are paid off as quickly as possible.
Reason #2. Interest. Each month the balance is not paid in full, you are incurring interest charges. I liken this to going outside, making a nice little bonfire, and placing the money in your wallet in the fire one bill at a time. You are doing no better by carrying the balances on your bill. Interest rates are quite common to be around the 15%-20% range sometimes higher depending upon your credit score. This is a lot of wasted money each year that could be spent on things your family wants or needs.
Reason #3. This is similar to Reason #2. If you make a great purchase online for a wonderful item at a killer, price and you pay with your credit card you are not saving any money! If you save a couple of hundred bucks on the price of the item, but pay several hundred dollars in interest fees you are not saving any money, and are in fact paying more! Credit cards can hurt you in this respect.
Reason #4. Budgeting. If you are using your credit cards to pay your bills without paying off the balance every month then you have a budget problem somewhere. If you cannot afford to pay the balance each month then you
need some serious budget revisions. When you are having to use credit cards to merely make ends meet there are huge budget problems that can create devastating effects on your credit report. There are several consumer-financing companies that can assist you in reducing your monthly bills, as well as getting a workable budget set up so that you are able to pay your bills each month.
As you can see, credit cards can be either good or bad for your budget, finances, and credit file. You want your credit to be as spotless as possible, and dragging balances over months is never a good idea. Good luck with all your credit cards and you should be able to work out all budget issues quickly with some work.
as quickly as possible. I am going to list some reasons why it is important to pay your bill in full each month. If you are unable to pay the bill in full, you need to consider creating a strict budget and sticking to it, as well as consider obtaining a lower interest rate loan to pay your balances off, or even consider applying for a new card that allows interest free transfers for a certain period which will allow you to quickly pay the debt off.
Reason #1. Your credit rating. If you are only paying the minimum payment each month, you are setting yourself up for problems here. It is very important to keep your credit rating as high as possible so that your credit card balance does not provide a problem when you are looking to purchase a home or car. You want to make sure payments are paid off as quickly as possible.
Reason #2. Interest. Each month the balance is not paid in full, you are incurring interest charges. I liken this to going outside, making a nice little bonfire, and placing the money in your wallet in the fire one bill at a time. You are doing no better by carrying the balances on your bill. Interest rates are quite common to be around the 15%-20% range sometimes higher depending upon your credit score. This is a lot of wasted money each year that could be spent on things your family wants or needs.
Reason #3. This is similar to Reason #2. If you make a great purchase online for a wonderful item at a killer, price and you pay with your credit card you are not saving any money! If you save a couple of hundred bucks on the price of the item, but pay several hundred dollars in interest fees you are not saving any money, and are in fact paying more! Credit cards can hurt you in this respect.
Reason #4. Budgeting. If you are using your credit cards to pay your bills without paying off the balance every month then you have a budget problem somewhere. If you cannot afford to pay the balance each month then you
need some serious budget revisions. When you are having to use credit cards to merely make ends meet there are huge budget problems that can create devastating effects on your credit report. There are several consumer-financing companies that can assist you in reducing your monthly bills, as well as getting a workable budget set up so that you are able to pay your bills each month.
As you can see, credit cards can be either good or bad for your budget, finances, and credit file. You want your credit to be as spotless as possible, and dragging balances over months is never a good idea. Good luck with all your credit cards and you should be able to work out all budget issues quickly with some work.
Advantages: Automatically Pay Bills/ Donations with a Credit Card
Paying your bills with a credit has many advantages, compared to paying each bill individually, which can cost more money, and provides no rewards. Many utility services provide consumers the option, having their
monthly bills, directly charged each month to a credit card, includes electricity, water, and telephone companies or referred as Automatic Bill Payment. Also, many cable and satellite services, newspapers, and insurance company premiums (car and home insurance), offer the option for payment by credit card through an automatic service or providing the credit card number each billing cycle, by phone, internet or enclosed in the mail. When applying for Automatic Bill Payment, you should continue to pay your bills directly, until you are notified the service has been established. Certainly, companies that accept credit payments are happy, knowing that the credit card company is reliable to send them payment each month, rather than waiting until a customer pays a bill or pays the bill late. Contrarily, automatically having bills charged to a credit card, eliminates possibility forgetting to pay a utility bill or some other monthly charge, since the credit card company, pays that bill each month or like having your own accountant, except your only responsible for paying the credit card bill. These companies that have Automatic Bill Payment policy, do not have to consider any legal action, against customers that don't pay their bills, since nonpayment is the concern of the credit card company. However, at some point in time, the credit card company will notify the customer's utility service or other business entity, discontinue service and stop charging the credit card, for noncompliance of payment. However, credit card companies provide line of credit, not offered by utility or other type of monthly services. This can be utilized cautiously for a duration of time, when paying a minimum monthly amount to a credit card company, and preferably sooner than later, pay the entire balance.
A credit card user may add an additional amount to a credit card payment, which is credited for a future payment. This can be helpful, when going away on vacation or long trips, and next month(s) bills have sufficient
reserve funds to be paid, by the credit card company. Since, utility or other basic services are billed each month. Also, a good method to have sufficient reserved money held in a credit card account, if you are tempted to spend that money, before the next credit card bill arrives. However, any money credited, does not earn any interest. This approach can be helpful, if you have a college student that has credit card, and uses it responsible. Advance payment to a credit card, ensures the student's bill will be paid following month or longer, if you can calculate approximately next month's charges. Also, if you are away from home for a long period of time or have a busy schedule, which may cause you to forget to pay a future credit card payment.
Consumers that use a credit card to pay monthly, quarterly or annual bill charges increase the number of advantage reward points or earn rewards faster during the year. Also, paying with a credit card instead of cash increases reward points or benefits. Limit the number of credit cards utilized two - four cards - this will quickly increase rewards points, than having many credit cards paying bills. Certainly, advantageous signing-up with a credit company that offers some type of rewards points, "cash back" program, frequent flyer mileage, and/or rebate program, whenever a charge is applied, and paying no annual fee. Sometimes, paying an annual fee for a credit card, will entitle the credit card user availability of more services, and better selection of gifts for the exchange of reward points. Credit card companies that offer "cash back' rewards, make it possible for consumers to receive money back, from a credit card company, and in some situations, the amount can be significant. For example: A credit card company may offer the user, one percent "cash back," for each dollar charged on a credit card. If the monthly expenditures on the credit card total $2,000, than the credit card user would receive $20 "cash back." If that amount averages $2000, each month or more, by the end of the year, the total "cash back" would be at least $240. Other reward programs, such as American Express, offer advantage reward points for each dollar charged on a credit, after payment is received, and often will include additional free bonus points for certain charges. Sometimes, during the year, credit card companies including American Express, will offer double point rewards, for certain type of charges, including purchasing groceries, gasoline and insurance payment. By the end of the year, reward points could add up significantly, especially for large purchases or travel charges. Also, before the Holiday Season, reward points can be exchange for various gifts, and saving money, rather than to pay for these gifts. Besides, exchanging reward points for gifts will save money, on sales tax, usually no delivery charge, and whenever getting a gift for yourself. Also, paying each bill individually, adds to the cost of postage, and sometimes the cost of an envelope, which can be reduced to one stamp per credit card service, and a return envelope is provided. Reward points earned by a credit card does not expire, compare to frequent flyer mileage points, and other reward service providers, often have an expiring date.
Making charitable donations with a credit card has many advantages, than just claiming a deduction on your income tax return. When the charge is applied to your credit card, payment is not required immediately, until the credit card bill arrives in the mail. Some people will charge a credit card for a charitable donation, and will be expecting to receive amount of money, in the near future (within a few days), that will pay all or part of the credit card charge. Also, any amount charged on a credit card, user will receive after payment, reward points, "cash back" amount or benefits, offered by the credit card company. Most charitable organizations, accept credit card donations, since payment is send to them, from the credit card company, after verification, and processing the transaction. Many charitable organizations offer the option to debit a user credit card, for a specific amount each month. Certainly, this process is convenient, and accounting each month for a deduction.
When a monthly bills, arrive in the mail, which have been automatically charged to a credit card, those amounts should be written down, and then later, compared to the amounts charged on the corresponding credit card. This will ensure the accuracy and inconsistencies can be rectified, by contacting the credit card company, and/or charged service company or business, as soon as possible. Credit card companies usually have twenty-four telephone service, most problems can be resolved anytime, day or night. Also, many offer a website address, where customers can send E-mails to have questions answered. Sometimes for various reasons, necessary to notify the service or business that automatically charges your credit card, by providing new credit card number (and/or a new credit card service). Often, getting a new credit card number is necessary, when a credit card is fraudulently used, stolen or misplaced.
Many credit card companies provide annual statements, relating to previous year transactions. This information is useful, locating tax deductions, when preparing an income tax return.Some credit card companies, may offer this service for an additional charge or upgrade of a credit card service, while other credit card companies, don't provide this service. American Express and maybe other credit card companies will subdivide the year's paid expenses into various categories (including restaurants, entertainment, travel, etc.), which is helpful finding acceptable tax deductions including donations.
Certainly, when a credit card bill is not paid on time, additional charges will be added, and the credit rating of the user will be affected negatively. The convince of paying monthly bills by a credit card, prior there should be sufficient money collected, earned each month or during the year, which is put aside, for each monthly bill that is prepaid. Certainly, tempting to spend the money in the bank account for other expenses, instead of using the funds to pay the monthly credit card bill, should be avoided. When financially manageable, having the ability to spend the money set a side for a credit card bill, if the amount is replaced, in short amount of time or within days, before the credit card bill arrives in the mail. Actually, when money is set aside for credit card bills, that money will earn more interest in a financial institution or bank account. This happens often, considering the credit card bill does not have to be paid immediately, for at least a few days or a week later, until the amount is due. Also, after a bill arrives in the mail, which has been prepaid, usually at least a few days or more, the credit card bill will then arrive. Once the credit card bill company receives payment by mail and the check clears the customer bank account, and approximately 30 days have elapsed, since first receiving a prepaid bill(s).
Credit card service companies provide access to cash (a line of credit) or ability to write checks, but the interest and fees are very high, since the amount being borrowed, has not been back - up by a collateral asset or considered unsecured debt. This type borrowing should be considered only for emergencies or extremely short duration of time. Certainly, beneficial borrowing money from a bank or lending institution, since the interest is lower (assuming there is collateral or equity to secure the loan), and the interest is tax deductible, for certain types of loans, including home equity loans.
monthly bills, directly charged each month to a credit card, includes electricity, water, and telephone companies or referred as Automatic Bill Payment. Also, many cable and satellite services, newspapers, and insurance company premiums (car and home insurance), offer the option for payment by credit card through an automatic service or providing the credit card number each billing cycle, by phone, internet or enclosed in the mail. When applying for Automatic Bill Payment, you should continue to pay your bills directly, until you are notified the service has been established. Certainly, companies that accept credit payments are happy, knowing that the credit card company is reliable to send them payment each month, rather than waiting until a customer pays a bill or pays the bill late. Contrarily, automatically having bills charged to a credit card, eliminates possibility forgetting to pay a utility bill or some other monthly charge, since the credit card company, pays that bill each month or like having your own accountant, except your only responsible for paying the credit card bill. These companies that have Automatic Bill Payment policy, do not have to consider any legal action, against customers that don't pay their bills, since nonpayment is the concern of the credit card company. However, at some point in time, the credit card company will notify the customer's utility service or other business entity, discontinue service and stop charging the credit card, for noncompliance of payment. However, credit card companies provide line of credit, not offered by utility or other type of monthly services. This can be utilized cautiously for a duration of time, when paying a minimum monthly amount to a credit card company, and preferably sooner than later, pay the entire balance.
A credit card user may add an additional amount to a credit card payment, which is credited for a future payment. This can be helpful, when going away on vacation or long trips, and next month(s) bills have sufficient
reserve funds to be paid, by the credit card company. Since, utility or other basic services are billed each month. Also, a good method to have sufficient reserved money held in a credit card account, if you are tempted to spend that money, before the next credit card bill arrives. However, any money credited, does not earn any interest. This approach can be helpful, if you have a college student that has credit card, and uses it responsible. Advance payment to a credit card, ensures the student's bill will be paid following month or longer, if you can calculate approximately next month's charges. Also, if you are away from home for a long period of time or have a busy schedule, which may cause you to forget to pay a future credit card payment.
Consumers that use a credit card to pay monthly, quarterly or annual bill charges increase the number of advantage reward points or earn rewards faster during the year. Also, paying with a credit card instead of cash increases reward points or benefits. Limit the number of credit cards utilized two - four cards - this will quickly increase rewards points, than having many credit cards paying bills. Certainly, advantageous signing-up with a credit company that offers some type of rewards points, "cash back" program, frequent flyer mileage, and/or rebate program, whenever a charge is applied, and paying no annual fee. Sometimes, paying an annual fee for a credit card, will entitle the credit card user availability of more services, and better selection of gifts for the exchange of reward points. Credit card companies that offer "cash back' rewards, make it possible for consumers to receive money back, from a credit card company, and in some situations, the amount can be significant. For example: A credit card company may offer the user, one percent "cash back," for each dollar charged on a credit card. If the monthly expenditures on the credit card total $2,000, than the credit card user would receive $20 "cash back." If that amount averages $2000, each month or more, by the end of the year, the total "cash back" would be at least $240. Other reward programs, such as American Express, offer advantage reward points for each dollar charged on a credit, after payment is received, and often will include additional free bonus points for certain charges. Sometimes, during the year, credit card companies including American Express, will offer double point rewards, for certain type of charges, including purchasing groceries, gasoline and insurance payment. By the end of the year, reward points could add up significantly, especially for large purchases or travel charges. Also, before the Holiday Season, reward points can be exchange for various gifts, and saving money, rather than to pay for these gifts. Besides, exchanging reward points for gifts will save money, on sales tax, usually no delivery charge, and whenever getting a gift for yourself. Also, paying each bill individually, adds to the cost of postage, and sometimes the cost of an envelope, which can be reduced to one stamp per credit card service, and a return envelope is provided. Reward points earned by a credit card does not expire, compare to frequent flyer mileage points, and other reward service providers, often have an expiring date.
Making charitable donations with a credit card has many advantages, than just claiming a deduction on your income tax return. When the charge is applied to your credit card, payment is not required immediately, until the credit card bill arrives in the mail. Some people will charge a credit card for a charitable donation, and will be expecting to receive amount of money, in the near future (within a few days), that will pay all or part of the credit card charge. Also, any amount charged on a credit card, user will receive after payment, reward points, "cash back" amount or benefits, offered by the credit card company. Most charitable organizations, accept credit card donations, since payment is send to them, from the credit card company, after verification, and processing the transaction. Many charitable organizations offer the option to debit a user credit card, for a specific amount each month. Certainly, this process is convenient, and accounting each month for a deduction.
When a monthly bills, arrive in the mail, which have been automatically charged to a credit card, those amounts should be written down, and then later, compared to the amounts charged on the corresponding credit card. This will ensure the accuracy and inconsistencies can be rectified, by contacting the credit card company, and/or charged service company or business, as soon as possible. Credit card companies usually have twenty-four telephone service, most problems can be resolved anytime, day or night. Also, many offer a website address, where customers can send E-mails to have questions answered. Sometimes for various reasons, necessary to notify the service or business that automatically charges your credit card, by providing new credit card number (and/or a new credit card service). Often, getting a new credit card number is necessary, when a credit card is fraudulently used, stolen or misplaced.
Many credit card companies provide annual statements, relating to previous year transactions. This information is useful, locating tax deductions, when preparing an income tax return.Some credit card companies, may offer this service for an additional charge or upgrade of a credit card service, while other credit card companies, don't provide this service. American Express and maybe other credit card companies will subdivide the year's paid expenses into various categories (including restaurants, entertainment, travel, etc.), which is helpful finding acceptable tax deductions including donations.
Certainly, when a credit card bill is not paid on time, additional charges will be added, and the credit rating of the user will be affected negatively. The convince of paying monthly bills by a credit card, prior there should be sufficient money collected, earned each month or during the year, which is put aside, for each monthly bill that is prepaid. Certainly, tempting to spend the money in the bank account for other expenses, instead of using the funds to pay the monthly credit card bill, should be avoided. When financially manageable, having the ability to spend the money set a side for a credit card bill, if the amount is replaced, in short amount of time or within days, before the credit card bill arrives in the mail. Actually, when money is set aside for credit card bills, that money will earn more interest in a financial institution or bank account. This happens often, considering the credit card bill does not have to be paid immediately, for at least a few days or a week later, until the amount is due. Also, after a bill arrives in the mail, which has been prepaid, usually at least a few days or more, the credit card bill will then arrive. Once the credit card bill company receives payment by mail and the check clears the customer bank account, and approximately 30 days have elapsed, since first receiving a prepaid bill(s).
Credit card service companies provide access to cash (a line of credit) or ability to write checks, but the interest and fees are very high, since the amount being borrowed, has not been back - up by a collateral asset or considered unsecured debt. This type borrowing should be considered only for emergencies or extremely short duration of time. Certainly, beneficial borrowing money from a bank or lending institution, since the interest is lower (assuming there is collateral or equity to secure the loan), and the interest is tax deductible, for certain types of loans, including home equity loans.
Cash Back Credit Cards
The key to using a cash back credit card is to NOT carry a balance on the card. You should pay your total balance off monthly.
If you know that you won’t be able to pay off the balance monthly and find yourself carrying a balance; then the balance would negate any reward you might receive.
If you must carry a balance then do not look for a “reward” card but look instead for the lowest interest rate card that you can find. Because the majority of “reward” cards charge a high interest rate.
But, if you pay the balance off monthly you do not need to worry about the high interest rate. You need to worry about finding a card that matches your spending habits.
In this way, you will get the most rewards for using the right card for you.
For example, if you buy a lot of gas, you would want to find a card that offers more rewards for gas purchases. Some cards offer up to five percent back on gas purchases.
But, if that type of card wouldn’t work for your spending habits perhaps you’d be more interested in a card that rewards you for purchases such as, Groceries, Utilities, Travel, Restaurants, Movies, or even Home Improvements.
Yes, it's true there are cards that reward you for different types of purchases. To find out more about the variety of “reward” cards available you can visit: www.cardoffers.com.
After your research and you discover the perfect card for your spending habits, make sure it doesn't charge you an annual fee. Whether you choose a “reward” card or a low-interest card you will want to avoid a card that charges an annual fee.
If you know that you won’t be able to pay off the balance monthly and find yourself carrying a balance; then the balance would negate any reward you might receive.
If you must carry a balance then do not look for a “reward” card but look instead for the lowest interest rate card that you can find. Because the majority of “reward” cards charge a high interest rate.
But, if you pay the balance off monthly you do not need to worry about the high interest rate. You need to worry about finding a card that matches your spending habits.
In this way, you will get the most rewards for using the right card for you.
For example, if you buy a lot of gas, you would want to find a card that offers more rewards for gas purchases. Some cards offer up to five percent back on gas purchases.
But, if that type of card wouldn’t work for your spending habits perhaps you’d be more interested in a card that rewards you for purchases such as, Groceries, Utilities, Travel, Restaurants, Movies, or even Home Improvements.
Yes, it's true there are cards that reward you for different types of purchases. To find out more about the variety of “reward” cards available you can visit: www.cardoffers.com.
After your research and you discover the perfect card for your spending habits, make sure it doesn't charge you an annual fee. Whether you choose a “reward” card or a low-interest card you will want to avoid a card that charges an annual fee.
Sunday, 19 December 2010
Decoding Bank of America’s Latest Credit Card Fee
The headaches have been nearly endless since the day that my MBNA credit card switched over to Bank of America. There were problems logging in to my account online. Readers reported dramatic increases in their annual percentage rates. Now, I received a long letter from Bank of America full of new fees and hidden catches.
Bank of America sent out this three page "Important Amendments to your Credit Card Agreement" letter over the last few weeks. Most customers probably threw it directly into the trash. But if you read closely, you would see that Bank of America has implemented a new minimum finance charge.
Translation: Unless you pay your entire Bank of America credit card balance in full each month, you’ll be charged a minimum finance fee of $1.50 or a full finance charge on the balance, whichever is greater.
Most credit card issuers (including Citibank and Capital One) only charge a minimum finance fee of $0.50 each month. Bank of America’s change represents a pretty major fee increase.
Below the minimum finance notice are instructions for rejecting this change. According to the notice, you can send your rejection before May 1 in a letter to Bank of America – P.O. Box 15718 – Wilmington, DE 19850. However, their customer service team told me that all this rejection does is temporarily freeze your account. Once you use your card for a purchase again you virtually "accept" the change and are stuck with the fee all over again.
This lovely letter also included a notice that my account will no longer have a grace period unless I pay the balance in full by the due date each month, that late payments and over limit fees go as high as $39 and that they will charge a 2% fee for international charges.
Bank of America is obviously trying to find new ways to nickel and dime customers who rarely carry over a balance on their accounts. If I so much as pay ten cents less than the full amount due on my account, I’d be looking at some serious fees.
The timing of these changes is especially odd given that the whole credit card industry is under congressional scrutiny for charging excessive fees. Instead of following in Citibank’s footsteps and voluntarily cutting back on their worst fees, Bank of America appears to be stepping it up. I don’t know about you, but I don’t feel like using my BofA account anytime soon.
sOURCE: http://www.credit.com/blog/2007/03/decoding_bank_o/
Top Rated Cash Rewards Card
With all the cash back credit cards available, how does someone choose the best offer? Based on CardOffers.com’s statistics, the Discover More Card is the best choice for users. This card allows users to earn a 5% rebate on purchases made in popular categories such as home, apparel, and many more. Users can also earn up to a 1% rebate on general purchases and .25% when making purchases at select warehouse clubs and discount stores. As a bonus, cardholders can earn double Cashback Bonuses when they use their rebates towards gift certificates from Discover Card Partners. This card also offers a 0% introductory rate for the first year with no annual fees. Cardholders also receive benefits like auto rental insurance, up to $500,000 in travel accident insurance, and fraud protection.
Top Rated Travel Rewards Card
Even thought there are a lot of travel rewards credit cards cruising around, how is one to decide which is the best offer? According to the CardOffers.com rating system, the Miles Card by Discover finishes at the front of the pack. The Miles Card allows users to earn double miles on the first $3,000 spent on travel and restaurant purchases, and one mile for every dollar spent on general purchases. This card also allows cardholders to earn 1,000 bonus miles for every month that a purchase is made during the first year, allowing users to earn up to12,000 bonus miles. The miles earned on the card can then be redeemed for free or reduced airfare on most major U.S. based airlines. What also makes this card attractive is the 0% introductory rate offered for the first year as well as no annual fee. Like other Discover cards, the cardholder will also receive benefits such as auto rental insurance, up to $500,000 in travel accident insurance, and various internet account services.
Poor Credit Credit Cards
With a rising number of people experiencing credit woes, where are they to turn for a credit card deal? In the past it was difficult to qualify for a reasonable credit card offer with a poor credit rating. Most people with a low credit rating were stuck with a secured credit card, which requires a deposit for use, or a card that had a very high variable interest rate associated with it. Neither of these options are ideal. But in today’s world there are actually poor credit credit cards designed for these specific users that offer reasonable deals. Not only are these deals getting better, but they can also be a good way to start rebuilding a positive credit history.
Poor credit credit cards are specifically designed for users with a low credit score. Issuers are becoming increasingly aware that people deserve a second chance and designed these cards to provide that chance. By obtaining a poor credit credit card, users are taking the first step towards fixing their credit woes. These cards offer the benefit of reporting the cardholder’s payment history to the credit bureaus. This is a rare feature because most cards only report negative information or charge a fee to report positive information to the bureaus.
There are plenty of offers available for people with poor credit these days. Many of these cards offer a reasonably low interest rate, but they generally have an annual fee and application fee associated with them. These fees can vary from card to card, so it is important to look carefully at all offers.
While using a poor credit credit card can assist users in repairing their credit rating, the essential thing to remember is to use the card responsibly. If someone decides to apply for a poor credit credit card, they must make sure to make their payments on time to avoid damaging their credit even more. If they continue to miss payments or make them late, they will only further hurt their credit rating. The ideal way to utilize the credit card is to make a few small purchases with the card each month. For example, some people will use the card to pay a set amount of bills each month, such as their cable and phone bill. The key is to always pay this balance off in full at the end of each month. This shows the credit card issuer they are capable of using the card responsibly by paying off the balance when it is due. It is also important to remember that improving one’s credit rating does not happen overnight. The process takes time and requires continued action.
Poor credit credit cards are specifically designed for users with a low credit score. Issuers are becoming increasingly aware that people deserve a second chance and designed these cards to provide that chance. By obtaining a poor credit credit card, users are taking the first step towards fixing their credit woes. These cards offer the benefit of reporting the cardholder’s payment history to the credit bureaus. This is a rare feature because most cards only report negative information or charge a fee to report positive information to the bureaus.
There are plenty of offers available for people with poor credit these days. Many of these cards offer a reasonably low interest rate, but they generally have an annual fee and application fee associated with them. These fees can vary from card to card, so it is important to look carefully at all offers.
While using a poor credit credit card can assist users in repairing their credit rating, the essential thing to remember is to use the card responsibly. If someone decides to apply for a poor credit credit card, they must make sure to make their payments on time to avoid damaging their credit even more. If they continue to miss payments or make them late, they will only further hurt their credit rating. The ideal way to utilize the credit card is to make a few small purchases with the card each month. For example, some people will use the card to pay a set amount of bills each month, such as their cable and phone bill. The key is to always pay this balance off in full at the end of each month. This shows the credit card issuer they are capable of using the card responsibly by paying off the balance when it is due. It is also important to remember that improving one’s credit rating does not happen overnight. The process takes time and requires continued action.
What is Two Cycle Billing?
The term “two cycle billing” may not be common knowledge to all credit card users, but it is a concept that everyone should be aware of. Some issuers have been moving away from the average daily billing cycle and changing over to the two cycle way of calculating the interest earned on balances. Two cycle billing does not greatly affect users that tend the carry a balance, but it does however affect cardholders that pay there balance off monthly.
In order to understand two cycle billing you must first understand the average daily billing method, which will now be explained. Let’s say that you own a credit card with a 15% interest rate and your billing cycle for the month of April runs from the 1st through the 30th of the month. At the beginning of the month you have a balance of $0 on the card. Now, on the 10th of April you make a purchase of $1000, which means you are going to carry that balance for 20 days until the current billing cycle ends. You must now calculate the average daily balance for the month of April. To do so you must first multiply the balance of the card by the number of days the balance was carried ($1000 × 20 days = 20,000), then you will divide that number by the total days in the billing cycle (20,000 ÷ 30 = 666.67). You have now figured out that your average daily balance for April would be $666.67. If this card uses the average daily billing cycle and you started the month with a $0 balance, there will be no interest charged as long as the April balance is paid off in full. This billing cycle essentially gives you a grace period on purchases as long as the balance is paid off in full each month. But, if this credit card uses the two cycle billing method, you would be charged interest for the month of April when you receive your bill in May because your average daily balance is based on the last 2 billing cycles. So, when you receive your bill for May, you will have a finance charge that is due, even though your balance was paid off in full for April and you didn’t make any purchases with the card in May. In order to figure out how much your interest would be, you will take the average daily balance × number of days in the billing cycle × periodic interest rate. Below are the calculations to figure out your interest due in May.
Average daily balance 1000 × 20 ÷ 61 = 327.87
Number of days in billing cycle 30 + 31 = 61
Periodic interest rate 15 ÷ 365 = .0411
Finance charge for May 327.87 × 61 × .000411 = 8.22
Based on the interest rate of 15% stated above, you will receive a bill in May that shows a finance charge of $8.22 even though the balance was paid in full in April. As you can now see, the two cycle billing method of calculating interest is not ideal for users that choose to pay there balance of in full each month. Essentially, a two cycle billing card will start charging interest from the day the purchases is made, which will eliminate the grace period that is provided by a card that uses the average daily billing method.
As you can now see, the two cycle billing method of calculating interest would mainly effect users that always pay their balance off in full because they will still be paying interest on purchases even when there is no balance being carried over on the card. So, next time you are looking for a new credit card make sure you look at the fine print to check for what type of billing method they use for that card.
In order to understand two cycle billing you must first understand the average daily billing method, which will now be explained. Let’s say that you own a credit card with a 15% interest rate and your billing cycle for the month of April runs from the 1st through the 30th of the month. At the beginning of the month you have a balance of $0 on the card. Now, on the 10th of April you make a purchase of $1000, which means you are going to carry that balance for 20 days until the current billing cycle ends. You must now calculate the average daily balance for the month of April. To do so you must first multiply the balance of the card by the number of days the balance was carried ($1000 × 20 days = 20,000), then you will divide that number by the total days in the billing cycle (20,000 ÷ 30 = 666.67). You have now figured out that your average daily balance for April would be $666.67. If this card uses the average daily billing cycle and you started the month with a $0 balance, there will be no interest charged as long as the April balance is paid off in full. This billing cycle essentially gives you a grace period on purchases as long as the balance is paid off in full each month. But, if this credit card uses the two cycle billing method, you would be charged interest for the month of April when you receive your bill in May because your average daily balance is based on the last 2 billing cycles. So, when you receive your bill for May, you will have a finance charge that is due, even though your balance was paid off in full for April and you didn’t make any purchases with the card in May. In order to figure out how much your interest would be, you will take the average daily balance × number of days in the billing cycle × periodic interest rate. Below are the calculations to figure out your interest due in May.
Average daily balance 1000 × 20 ÷ 61 = 327.87
Number of days in billing cycle 30 + 31 = 61
Periodic interest rate 15 ÷ 365 = .0411
Finance charge for May 327.87 × 61 × .000411 = 8.22
Based on the interest rate of 15% stated above, you will receive a bill in May that shows a finance charge of $8.22 even though the balance was paid in full in April. As you can now see, the two cycle billing method of calculating interest is not ideal for users that choose to pay there balance of in full each month. Essentially, a two cycle billing card will start charging interest from the day the purchases is made, which will eliminate the grace period that is provided by a card that uses the average daily billing method.
As you can now see, the two cycle billing method of calculating interest would mainly effect users that always pay their balance off in full because they will still be paying interest on purchases even when there is no balance being carried over on the card. So, next time you are looking for a new credit card make sure you look at the fine print to check for what type of billing method they use for that card.
What to Look For in a Credit Card
With all of the credit card offers floating around today, how is one to decide which offer best fits their individual needs? Most credit cards today are designed to be used by a certain types of cardholders, and in order to get the full benefit from any given card you will need to pick the one that best fits your own personal needs. I know that this process can be difficult and sometimes seem overwhelming, but this article is designed to point out what you need to look for when deciding which credit card is right for you.
• Introductory Rate
Most credit cards offer a special introductory rate for a specified time period when you sign up for the card. The usual introductory offer you will see is for a 0% interest rate on purchases and balance transfers. Although most of the deals will look similar, you will want to pay special attention to the length of this introductory offer. Some credit cards only offer this special rate for the first 3 or 6 months, but if you look around you will find some cards that offer the introductory rate for the first 12 months that you own the card. When comparing cards, you should consider the ones that offer the lowest introductory rate for the longest time period.
• Interest Rate
After analyzing the introductory rate, you will want to look at what the interest rate will be for the life of the credit card. This number can vary from card to card so you will want to make sure that you compare a few cards to find the most competitive rate. The most important thing to look for when reviewing the interest rate is to check to see if the interest rate is variable or fixed for the life of the card. A variable interest rate can change over time, and this is not ideal because your interest rate can start of at a competitive rate and end up rising to a very high rate over time. You will want to make sure that you are not signing up for what you believe to be a low interest rate card, only to find out later that the interest rate is variable, and will go up in the future. When possible, you will want to find a credit card that offers a fixed interest rate.
• Fees
Some credit cards will charge an initial setup fee and/or an annual fee for using the card. Whether to apply for and to carry a card with such fees can be a tricky decision, because some of the cards that charge an annual fee may offer a low, fixed interest rate, or allow you to participate in an exceptional rewards program. Card features such as these can make the fee worth your while. To make the decision on whether or not the fee is worth paying, you will have to compare the card with similar cards that do not charge fees, and examine the extra benefits of the card that charges the fee. If the card with the fee offers a better rewards program that you plan to participate in, or has a lower interest rate then the fee may be worth paying.
• Benefits
Every credit card offers some benefits, however, they are not all equal. Some of the benefits that are available through certain cards are special discounts, travel insurance, lost luggage insurance, rental car insurance, identity theft insurance, purchases protection, and return protection to name a few. You will want to review the list of benefits for each card that you are comparing to find the card that offers the best benefits for your needs. For example, if you travel often, you may want to look for a credit card that offers you travel insurance, lost luggage insurance, and rental car insurance, since these benefits are services that you could potentially take advantage of.
• Perks
One of the best kept secrets when it comes to credit cards is the special perks that are available to the cardholders. You can find perks for almost anything that you wish to purchase if you look in the right place. These perks can range from discounts on items such as rental cars, clothing, sporting goods, restaurants, and home décor to give a few examples. These perks allow you to receive discounts on products that you may already be purchase using your credit card, but have not been receiving the discounts because you were not aware of how to take advantage of these offers. Most perks are available for the various card types that most cardholders currently carry, such as Visa, MasterCard or American Express, but there are also certain perks available for specific cards as well. These credit card perks can be one of the best advantages of owning a credit card, so make sure that you take advantage of these discounts when available.
• Rewards
The most important factor that you should consider when deciding on a credit card is the rewards program that is associated with the card. Most credit cards allow you to participate in a rewards program that allows you to earn points when making purchases at participating retailers. These points can then be used towards discounts or free products, based on the rewards program that the specific card offers. Some of the numerous rewards programs available are hotel, travel, gas, airline, auto, and cash back rewards. These programs are a great way for you to earn discounts while you are making normal purchases. For example, if you stay at a certain hotel chain or fly on a certain airline regularly, then you would benefit from using a credit card that offers rewards when you make a purchase from that retailer. This will allow you to earn points on your purchases and use those points for future discounts.
After reading this article, you now know what to look for when you are ready to apply for a new credit card. Make sure that you find a card the offers a competitive interest rate, benefits that fit your needs, and most importantly allows you to participate in a rewards program that you plan to take advantage of. If you look at these points when reviewing your next card you will be sure to get a credit card that will benefit you.
• Introductory Rate
Most credit cards offer a special introductory rate for a specified time period when you sign up for the card. The usual introductory offer you will see is for a 0% interest rate on purchases and balance transfers. Although most of the deals will look similar, you will want to pay special attention to the length of this introductory offer. Some credit cards only offer this special rate for the first 3 or 6 months, but if you look around you will find some cards that offer the introductory rate for the first 12 months that you own the card. When comparing cards, you should consider the ones that offer the lowest introductory rate for the longest time period.
• Interest Rate
After analyzing the introductory rate, you will want to look at what the interest rate will be for the life of the credit card. This number can vary from card to card so you will want to make sure that you compare a few cards to find the most competitive rate. The most important thing to look for when reviewing the interest rate is to check to see if the interest rate is variable or fixed for the life of the card. A variable interest rate can change over time, and this is not ideal because your interest rate can start of at a competitive rate and end up rising to a very high rate over time. You will want to make sure that you are not signing up for what you believe to be a low interest rate card, only to find out later that the interest rate is variable, and will go up in the future. When possible, you will want to find a credit card that offers a fixed interest rate.
• Fees
Some credit cards will charge an initial setup fee and/or an annual fee for using the card. Whether to apply for and to carry a card with such fees can be a tricky decision, because some of the cards that charge an annual fee may offer a low, fixed interest rate, or allow you to participate in an exceptional rewards program. Card features such as these can make the fee worth your while. To make the decision on whether or not the fee is worth paying, you will have to compare the card with similar cards that do not charge fees, and examine the extra benefits of the card that charges the fee. If the card with the fee offers a better rewards program that you plan to participate in, or has a lower interest rate then the fee may be worth paying.
• Benefits
Every credit card offers some benefits, however, they are not all equal. Some of the benefits that are available through certain cards are special discounts, travel insurance, lost luggage insurance, rental car insurance, identity theft insurance, purchases protection, and return protection to name a few. You will want to review the list of benefits for each card that you are comparing to find the card that offers the best benefits for your needs. For example, if you travel often, you may want to look for a credit card that offers you travel insurance, lost luggage insurance, and rental car insurance, since these benefits are services that you could potentially take advantage of.
• Perks
One of the best kept secrets when it comes to credit cards is the special perks that are available to the cardholders. You can find perks for almost anything that you wish to purchase if you look in the right place. These perks can range from discounts on items such as rental cars, clothing, sporting goods, restaurants, and home décor to give a few examples. These perks allow you to receive discounts on products that you may already be purchase using your credit card, but have not been receiving the discounts because you were not aware of how to take advantage of these offers. Most perks are available for the various card types that most cardholders currently carry, such as Visa, MasterCard or American Express, but there are also certain perks available for specific cards as well. These credit card perks can be one of the best advantages of owning a credit card, so make sure that you take advantage of these discounts when available.
• Rewards
The most important factor that you should consider when deciding on a credit card is the rewards program that is associated with the card. Most credit cards allow you to participate in a rewards program that allows you to earn points when making purchases at participating retailers. These points can then be used towards discounts or free products, based on the rewards program that the specific card offers. Some of the numerous rewards programs available are hotel, travel, gas, airline, auto, and cash back rewards. These programs are a great way for you to earn discounts while you are making normal purchases. For example, if you stay at a certain hotel chain or fly on a certain airline regularly, then you would benefit from using a credit card that offers rewards when you make a purchase from that retailer. This will allow you to earn points on your purchases and use those points for future discounts.
After reading this article, you now know what to look for when you are ready to apply for a new credit card. Make sure that you find a card the offers a competitive interest rate, benefits that fit your needs, and most importantly allows you to participate in a rewards program that you plan to take advantage of. If you look at these points when reviewing your next card you will be sure to get a credit card that will benefit you.
10 Reasons Why Your Company Should Own a Business Credit Card (Part 1)
No matter the size of your company, be it large or small, you may still benefit from owning a business credit card. This article presents 10 reasons why having a credit card that is specificly designed for business is a beneficial decision for both you, your company, and it’s employees.
1. Adds and air of legitimacy
Owning business credit cards will bring a level of respect to your company. Whether you are taking a client out on a business related outing, or just making a general purchase, paying with a business card shows people that your company is a legitimate business. In order to get a company credit card, the business must be well established, and this shows that your company has a level of respect associated with it.
2. Builds a positive credit history
Just like in your personal life, it is a necessity to build good credit for your business to ensure its future growth. Through the proper use of a company card you will establish a good credit history. This will help your business as you move forward, and look to expand your business in the future.
3. Better perks and discounts
Most business cards offer better perks and discounts for their users than similar cards that are not specificly designed for business owners. Business cardholders receive special rates on gym memberships, cell phone plans and devices, office supplies and equipment, rental cars, hotel stays and airfare to name only a few. These discounts are a great way for you to save money when you are making normal business purchases.
4. Earn rewards
There are business rewards cards currently available that allow cardholders to earn rewards when making purchases. Some of the reward categories that business cardholders can participate in are airline, hotel, gas, restaurant, and cash back. These rewards are earned when the cardholder makes purchases with their business card. Points or miles can then be redeemed towards discounts on future purchases.
5. Extra protection Business credit cards offer higher levels of protection for their users to help reduce the risk of problems that may arise. Some of the protection features available to users are traveler’s insurance, lost luggage insurance, auto rental insurance, as well as extra layers of identity theft monitoring. These additional features are a great way to protect you and your employees.
1. Adds and air of legitimacy
Owning business credit cards will bring a level of respect to your company. Whether you are taking a client out on a business related outing, or just making a general purchase, paying with a business card shows people that your company is a legitimate business. In order to get a company credit card, the business must be well established, and this shows that your company has a level of respect associated with it.
2. Builds a positive credit history
Just like in your personal life, it is a necessity to build good credit for your business to ensure its future growth. Through the proper use of a company card you will establish a good credit history. This will help your business as you move forward, and look to expand your business in the future.
3. Better perks and discounts
Most business cards offer better perks and discounts for their users than similar cards that are not specificly designed for business owners. Business cardholders receive special rates on gym memberships, cell phone plans and devices, office supplies and equipment, rental cars, hotel stays and airfare to name only a few. These discounts are a great way for you to save money when you are making normal business purchases.
4. Earn rewards
There are business rewards cards currently available that allow cardholders to earn rewards when making purchases. Some of the reward categories that business cardholders can participate in are airline, hotel, gas, restaurant, and cash back. These rewards are earned when the cardholder makes purchases with their business card. Points or miles can then be redeemed towards discounts on future purchases.
5. Extra protection Business credit cards offer higher levels of protection for their users to help reduce the risk of problems that may arise. Some of the protection features available to users are traveler’s insurance, lost luggage insurance, auto rental insurance, as well as extra layers of identity theft monitoring. These additional features are a great way to protect you and your employees.
10 Reasons Why Your Company Should Own a Business Credit Card (Part 2)
6. Higher spending limits
Business cards offer a higher spending limit than a standard credit card. This allows companies to make larger purchases and gives business owners more room to carry a balance on the card.
7. Employee and company spending limits
Business cardholders are able to set spending limits for the entire company, as well as for each individual employee. This is a great way to help you and your employees stay within a set budget. This allows business cardholders to control the companies spending habits.
8. Additional cards for free
Business cardholders will find it easy to receive additional cards for their employees and other potential cardholders within the business, all of which will display the names of each additional cardholder. Most card issuers will charge cardholders a fee for additional cards, but with a business credit card account you will receive additional cards at no extra charge.
9. Eliminate need for cash and checks
A major advantage of owning a business credit card is that it eliminates the need for cash and checks. Consider the advantages of this in situations such as business related travel. Business cardholders no longer have to give their employees cash advances, or take the time to add up receipts when they return from business travel to reimburse them for expenses. Instead, business cardholders can use a company card for their expenses, and all of their spending becomes far easier to track.
10. Expense reporting
Another fantastic reason for owning a company card is the advanced expense reporting that is offered by the issuers. The credit card companies now offer expense reporting that is compatible with Quicken and Microsoft Money, which allows cardholders the ability to directly tie these reports in with their accounting data. This feature may be especially useful to cardholders during tax season, as it will give those that take advantage of the service exact amounts of their spending and provide useful backups for any receipts that may have been lost or misplaced.
Now that you see all of the advantages of owning a business credit card, don’t you think it is time for you to go out and apply or one today?
Business cards offer a higher spending limit than a standard credit card. This allows companies to make larger purchases and gives business owners more room to carry a balance on the card.
7. Employee and company spending limits
Business cardholders are able to set spending limits for the entire company, as well as for each individual employee. This is a great way to help you and your employees stay within a set budget. This allows business cardholders to control the companies spending habits.
8. Additional cards for free
Business cardholders will find it easy to receive additional cards for their employees and other potential cardholders within the business, all of which will display the names of each additional cardholder. Most card issuers will charge cardholders a fee for additional cards, but with a business credit card account you will receive additional cards at no extra charge.
9. Eliminate need for cash and checks
A major advantage of owning a business credit card is that it eliminates the need for cash and checks. Consider the advantages of this in situations such as business related travel. Business cardholders no longer have to give their employees cash advances, or take the time to add up receipts when they return from business travel to reimburse them for expenses. Instead, business cardholders can use a company card for their expenses, and all of their spending becomes far easier to track.
10. Expense reporting
Another fantastic reason for owning a company card is the advanced expense reporting that is offered by the issuers. The credit card companies now offer expense reporting that is compatible with Quicken and Microsoft Money, which allows cardholders the ability to directly tie these reports in with their accounting data. This feature may be especially useful to cardholders during tax season, as it will give those that take advantage of the service exact amounts of their spending and provide useful backups for any receipts that may have been lost or misplaced.
Now that you see all of the advantages of owning a business credit card, don’t you think it is time for you to go out and apply or one today?
My credit card world
Hello world and welcome to my new blog that is dedicated to informing people about banking online and credit cards. This blog will be used to write about the features of using certain credit cards and giving you some reviews of credit cards from time to time. I will give everyone tips on how to get discounts and free stuff just from using their credit cards to purchase everyday items. Here are a few resources to check out to start to get an idea of what credit card tips you can learn.
My credit card world
Hello world and welcome to my new blog that is dedicated to informing people about credit cards. This blog will be used to write about the features of using certain credit cards and giving you some reviews of credit cards from time to time. I will give everyone tips on how to get discounts and free stuff just from using their credit cards to purchase everyday items. Here are a few resources to check out to start to get an idea of what credit card tips you can learn.
Credit Card Affiliate Program
Do you have a website and want to earn money from it? Then join the CardOffers.com Credit Card Affiliate Program and earn money from taking credit card applications on your website.
Why use CardOffers.com?
CardOffers.com offers 3 different credit card affiliate programs that their members can choose from. Each program offers different levels of content and customization so you can find the right plan for you.
Why use CardOffers.com?
- Over 150 credit cards available
- Free credit card reviews and content
- Detailed Online reporting and tracking of website
- Earn money for approved credit card applications
CardOffers.com offers 3 different credit card affiliate programs that their members can choose from. Each program offers different levels of content and customization so you can find the right plan for you.
Travel Reward Credit Cards
If you travel often, whether it is for business or pleasure, then owning a travel rewards credit card can be used to your advantage. Using credit cards that offer these rewards for your normal travel expenses is a great way to earn points towards future discounts. These types of cards allow you to earn points when you make purchases at select hotels, airlines, restaurants, retail stores and auto rental companies just to name a few. The points that you collect from your purchases can be used for discounts on hotel stays and airline tickets. If you travel often, then review these travel reward credit cards today.
Credit Card Review - Miles Card from Discover
Take advantage of the travel rewards program offered by the Miles Card from Discover were users can earn one mile for every dollar spent on general purchases. You can also earn 1,000 bonus miles for every month that a purchase is made with the card for the first year. A maximum of 60,000 miles can be earned per year and as long as the account is active the miles never expire. Miles that are earned can be used towards reduced airfare on most major U.S. airlines with no blackout dates. This card offers platinum benefits, a 0% introductory rate on purchases and balance transfers for the first year, no annual fees and a reasonably low APR for those who qualify.
College Student Credit Cards
If you are a student that is looking to build your credit history while earning rewards from everyday purchases then college student credit cards are what you are looking for. Student credit cards are a great way for a student to start building their credit history while they are still in college. These types of credit cards also offer special features to their users such as fraud protection, travel accident insurance, auto rental insurance and travel emergency assistance just to name a few. You can also receive discounts and rewards for purchases made at select merchants and retailers. Rewards can be earned when you shop at select book stores, record stores, video rental stores and movie theaters with certain cards. Select college student credit cards also reward their users for on-time payments and maintaining a high GPA with bonus rewards points that can be for discounts towards purchases.
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