Personal Finance Tips » Credit Cards

Credit Cards – Easy Does It

admin — Mon, 27 Dec 2010 20:45:08 +0000

With the current economic climate making things difficult for both lenders and borrowers, many consumers will look to various financial services in order to be able to afford Christmas.

Small loans and short-term credit cards can be useful tools for affording some of the essentials around the holiday season, but you must be careful when you take out such services.

Credit cards, whilst being useful to help you afford things by spreading payments over a length of time, can be costly if you’re not careful with your repayment plans. But by taking the time to evaluate your finances before applying and being careful with how you use it, owning a credit card doesn’t have to be as daunting as it may first make out to be.

Many companies will offer the chance to apply for 0% credit cards, giving us the chance to cover bills and purchase essentials without having to worry about accumulating fees every month, provided of course that you meet the minimum repayment each month and don’t go over your credit limit.

You must be careful when dealing with interest free credit cards, for if you were to exceed your limits you could potentially lose your 0% interest and become susceptible to a high rate of interest as a result. Keeping a track of your finances is essential, and by regulating your spending you can ensure that you don’t fall prey to these charges.

When it comes to paying off a credit card, it is usually best to try and pay off a little more than the monthly repayment, or paying the balance off in full if you can. This can have a positive bearing on your credit rating as it shows potential lenders that you are able to successfully manage your finances accordingly.

Bad Credit Unsecured Credit Cards

admin — Sat, 18 Dec 2010 15:43:27 +0000

Bad credit unsecured credit cards can help rebuild the creditworthiness of people with bad credit, charge-offs, and arrears. Your chance of getting an unsecured credit card depends on your credit rating, earning potential and financial stability. Sometimes these are offered to people with a poor credit history. All major credit card companies, such as MasterCard and Visa, provide bad credit unsecured credit cards.

A person with bad credit has to make a small deposit, which serves as a security to the lenders if you fail to make payments. Depending on the unsecured credit card providers, the deposit amount may vary. Bad credit unsecured credit cards are issued on the basis of minimum requirements. When bad credit unsecured credit cards are approved, the borrowers are not allowed a credit line exceeding the amount deposited. The main advantage of bad credit unsecured cards is that one can easily withdraw cash in times of financial crises.

The APR (Annual Percentage Rate), card fees, account set-up fees, and programs fees for these credit cards are relatively high. Bad credit unsecured credit cards have a credit limit ranging from $250 to $500. If the borrowers make regular payments, the lender gradually increases the credit limit.

Most of the lenders provide flexible payment plans and free services. However, you have to guard against scams which occur through fraudulent emails, letters, and phone calls. Therefore, utmost care and proper research must be undertaken to select a bad credit unsecured credit card provider. You have to be cautious about some lenders who charge high fees in the form of yearly rates and additional hidden charges.

Most of the credit card companies now render online applications and instant approvals. So the Internet is considered the best source to find bad credit unsecured cards.

Credit Cards For Anyone?

admin — Wed, 15 Dec 2010 14:19:42 +0000

Most people have heard about them, Credit Cards. Most people love them. A lot of people out there hate them for the simple fact that they do not know how to properly manage a credit card. The question is, what type of person are you? If you are like me, you know that credit cards can be a pain if you do not manage your credit card payments on-time. The trick is to know when you should make minimum payments on a credit line, and when you should pay off the balance. The first step to understanding how to pay for credit is understanding what they are, and how they really work.

For those that do not know, and for those that are new to the credit world, a credit card is a small plastic card issued to users as a method of payment. This credit card allows its holder to buy goods and services based on the holder’s promise, (keyword: Promise) to pay for these goods and services. The actual ability to pay for your credit is entirely another story. The issuer of the card grants a line of credit to the consumer (or the user, as in you) from which the user can borrow money for payment to a merchant or as a cash advance to the user.

A credit card is different from a charge card, or check card: a charge card requires the balance to be paid in full each month. As opposed to a credit, credit cards allow the consumers a continuing balance of debt, subject to interest being charged. This is where most people can get confused about which credit cards to apply for. Many different financial institutions will offer attractive looking interest rates or APRs based on your credit worthiness, or may offer limited 0% Intro APR for a period of time. Most 0% Intro rates are good for first time credit users, but you must be aware that most expire after 6-7 months of having credit, with APR rates easily shooting up to 12%-13% or more.

The best way to know if you have a good card is to check what the credit APR rate is after the Introduction period has ended, which will let you know what to expect from that credit card company. Usually, it’s a range of credit, which again is based upon your credit scores, credit worthiness, and of course credit history. Many people do not realize how important credit history can be, especially if you are new to this credit mystery.

But what if you are like how I was a few years ago, a college student with no credit? What do you do In that situation? If you are old enough, (21 and up) and apply for a student card, you will most likely get approved. Most financial banks understand young people that do not have credit, or have short credit history such as myself, and would need help establishing credit and build credit history. Most people do not realize that credit history is also very important. My biggest regret was that I did not get a card as soon as I turned 18, which would have given me the ability to build a nice long credit history.

However, for those of you that are 18 and interested in getting a card, I would advise being very careful on spending habits, as it’s very easy to indulge yourself and overspend. A good way to keep yourself in check is to check your credit card balance daily, (That’s right, I said daily) If you are to busy for that kind of financial housekeeping, I would strongly recommend checking your balance weekly. It’s much easier now, because almost every credit card out there allows you to check your balance online and lets you make payments online too.

Now you are thinking, what If I have a really bad credit score? What about bad debit? Bankruptcy? Foreclosure? If you have ever faced these types of financial hardships, there is a credit card out there for you too. It’s called a prepaid card. It’s like those prepaid credit cards you can pickup in local department stores, but this card allows the user to use a bank account as the financial backing for the credit card.

As long as you have a savings or checking account at a bank, you can tie this prepaid card to a portion of your balance. This card is great for people that have suffered financial hardship due to circumstances out of there control, or even for those people who were not as responsible as they should have been. Either way, there is a card out there for everyone, and you can come see a nice selection of all different types of cards here:

http://credit401.newcreditapplications.com/

Cash Back Credit Cards for Businesses

admin — Mon, 13 Dec 2010 02:57:49 +0000

Business credit cards are an important asset for business people as these cards provide the power of credit. There are a variety of business credit cards available in the market and are offered by different companies.

Rewards and incentives associated with the card is one important factor that distinguishes all these cards from one another. A variety of reward programs are available on these cards including Frequent Flier Miles Programs for frequent travelers, Gas Rewards for transportation and fuel discounts and most importantly, and Cash Back Reward programs.

Cash back credit cards are the most preferred type of business credit cards around the world. This is because it is convenient to earn points and easy to collect rewards on these types of cards. These rewards can again be used as cash or as additional funding for the business. Rewards and points are usually quite high for businesses that require bulk purchasing.

The way cash back credit cards operate is really simple. For every dollar of purchase made by the customer using the card, he is provided with one or two reward points. These points are equivalent to cash and can be used by the cardholder either for making new purchases or for paying bills. Some cash back credit cards even pay back the customer a certain percentage of the purchase made. This is applicable only when the customer had made a purchase equivalent to a prescribed amount of money and can be availed only when purchases are made at select merchant outlets.

Cash back credit cards are offered at different terms and conditions depending on the credit card issuer. Some good cash back cards include the ones offered by Chase, Discover and Advanta.

Find Poor Credit Credit Cards

admin — Sun, 12 Dec 2010 15:41:15 +0000

Do you need a credit card? There are many places that offer cards. Look in the mail and you will know what I mean! However, what about poor credit credit cards? Let us find out more!

There are many different lenders out there. Look in the mail, on television, even on radio or billboard advertising, and we see advertisements for cards.

Most of these advertisements are designed for people with great credit ratings. Many people with poor credit ratings find it hard with these credit cards.

For the lender, the main aspect of the amount of interest they charge is based on risk. So the higher the risk, the more need to charge higher levels of interest.

This may not sound like a good thing, especially considering that a poor credit person likely needs the best levels of interest, so they can meet all there financial obligations. However, for the lender it is a principle which needs to be done.

There are poor credit credit cards available on the market, and they do have higher levels of interest. The good news is that you can get a card, however, it does cost more.

There are some other aspects to consider. One is an annual fee, which some lenders have on the card, also some have charges.

Hidden charges need to be looked at, because they can work out very expensive. Always make sure that you know what they are before applying.

Also, remember there are many places that have these cards. Researching can often bring up a handful. Then apply to 1 to 3 places at most, and you will get the card that meets your needs!

Credit Cards with Zero Interest

admin — Sun, 12 Dec 2010 02:13:48 +0000

There are two types of credit cards. You have the regular credit cards and then the prepaid cards. The prepaid cards are the ultimate credit cards with zero interest. You see you are actually offering the money to the card before you make a purchase with prepaid credit cards. Let’s look at how both cards work to determine what you may want to do.

The prepaid credit card will have a start up fee as well as a reload fee. Some of these cards even have a monthly fee or transaction fee. This is how the credit card makes their money because they don’t have the interest rate. You are taking a portion of your earnings and sending it to the credit card company. When you walk in a store with the prepaid credit card and have it swiped for a purchase you are actually deducting from the balance you placed on the card. It is essentially an ATM card with fees and more control. Once the balance is at zero you either reload or close the account. There are several reasons for this type of card. One you may have bad credit and it is the only alternative to re-establishing that credit. The other is the control you have in your spending and of course the lack of interest that you would be charged by a regular card.

The regular credit cards can offer zero percent interest as well; however this is not for the life of the card. If you wish to have a regular credit card with zero percent interest, then you need to look for a new card. The deals are only offered as an introductory rate. Most of the credit cards are going to offer two types of zero percent interest. The first type is the actual APR. This zero percent APR is an introductory rate that will last anywhere from 30 days to 12 months. It will depend on the credit card company you have chosen. In this time you are able to use the card without fear of interest, but after the period has ended you will have to pay interest on any charges. The second zero percent interest is on balance transfers. The balance transfers often offer you a zero percent interest on the card for 12 to 15 months. Some cards may be willing to offer the benefits for 18 to 24 months, but again that is up to the credit card company and their willingness to offer a great deal. There are usually no annual fees associated with the card. You do have to watch out for late fees and missed payment fees, but in general you will be able to get a decent credit card for several months.

Take the above information and consider your next move. You may find that you are happy with a regular card since you will not be using it a great deal or will be paying off the balance.

Unsecured Credit Cards For Bad Credit

admin — Sat, 11 Dec 2010 03:23:51 +0000

During these difficult economic times, many of us are struggling with our finances and need to turn to options like unsecured credit cards for bad credit. Having a bad credit rating means that you are less likely to be able to get a regular card from issuers, and other issuers may include many hidden fees to make it even harder. Fortunately, many reputable financial institutions are willing to help people with bad credit.

An unsecured credit card means that you will be benefiting from all the features of a regular card without the need to provide security. Whilst it is true that many issuers will only provide unsecured credit to those who prove themselves in a finances and debts check, they are still offered to people with bad debts. Check all the rates, terms and conditions before you sign up.

When you start your search for unsecured credit cards, bear in mind that the interest rates on these cards are higher than with secured cards. This is due to the fact that people with a lot of debt are generally more risky to the lender, so make sure you make regular payments or you could find yourself borrowing more than you can afford to pay back your debt. Missing your monthly payments will only make your credit score worse, but if you are diligent you could find your rating improving in no time at all.

Many of us will see our credit rating fall at some stage or other, at times due to factors outside of our control. But this doesn’t mean that your options should be limited, so start shopping around and you will find many issuers of unsecured credit cards for people with bad credit.

Store Credit Cards For Bad Credit

admin — Sat, 11 Dec 2010 03:05:04 +0000

Store credit cards for bad credit can be a great way of rebuilding your score, or even building it for the first time. These kinds of cards are developed by individual retail stores and are available to use on all purchases at that store. These kinds of cards can come with many benefits, especially when it comes to improving your credit score.

The fact is that it is a lot easier to get approved for a retail card that it is for a traditional credit card, usually because the balance is low and there is therefore less of a risk for the lender. Most work in the same way as a traditional credit cards, but some can only be used in the individual store. The second type are offered to people with bad credit and while this may seem inconvenient, it can be a temporary solution while you try to your credit rating.

Like any credit card, store credit cards will charge you interest when you miss your payments or don’t pay off the full balance. However, you should try to make all payments on time due to the fact that interest rates can be high. Paying on time will also prove you can manage your payments and will improve your score quickly.

There are both disadvantages and benefits to store credit cards for bad credit. When you sign up, try to do so for a store you would shop at normally – but do not buy things you don’t need simply because you have available credit. You may find that the card even comes with added benefits including discounts, rewards programs and specials offers. Your ultimate goal should always be, however, to make your payments on time and to build your score as soon as possible.

Credit Cards With Poor Credit

admin — Wed, 08 Dec 2010 19:46:09 +0000

Finding credit cards with poor credit might seem impossible, but the truth is that just about anyone is entitled to a credit card – no matter what your financial history. If you have a poor credit score, or even no credit history at all, finding a credit card from traditional card issuers can be a difficult task, so it may be wise to start looking for a cards designed specifically with your situation in mind.

Prepaid Cards

Prepaid credit cards are a great option for people with bad credit. This is available to anyone due to the fact it does not loan you money, rather you pay money into your account upfront which is deducted each time you make a purchase. There is no overdraft, and no interest charged.

Bad Credit Cards

There are credit cards offered by the financial institutions especially for those with poor credit. Often these will come with a high interest rate. Whilst this is not ideal, it can actually help you to be stricter with yourself when making monthly repayments, and once you have built up your credit score you can then choose a better deal.

Low Balance Cards

Most credit cards with poor credit will also have a low balance option. This means you won’t be able to spend much money each month, but it gives you the chance to build your credit rating and eventually increase your limit in the future. In some cases this will be the required option you as as the lender assesses your risk. Once you have proven yourself as someone who is reliable your interest payments will decrease.

Different Providian Credit Cards

admin — Wed, 08 Dec 2010 00:26:44 +0000

Providian credit cards were famous for providing credit to those people who were usually turned away from other agencies and banks. This happened either due to a poor credit history or low income. The company, Providian was founded in 1997 by Andre Kahr. It faced legal problems in 1999 due to unethical marketing and business practices. It has its headquarters in San Francisco, California. Providian was bought by Washington Mutual in October, 2005.

Washington Mutual earlier used to focus on retail banking, real estate and home loans. The sale was made for approximately 6.5 billion dollars and there were almost 10 million Providian card holders at that time. After that, Providian Financial Corporation retained its name and is on solid footing since then.

There are several types of different Providian Credit card offers which people from all backgrounds can choose from.

o Basic card: the visa platinum card of Providian is a very good card with lots of options for its users. The card doesn’t carry any annual fee and credit lines can go till 15,000 dollars. If a person transfers the balance when he/she opens the account, then they are eligible for no APR or annual percentage rate for the first year of balance transfers. The users of the card also get advances in cash and aren’t liable for any fraud charges. The credit card comes in different designs and the users can choose from Mount Rushmore, a bald eagle or American flag. The visa platinum is the main card, but it comes with different credit limits and options to satisfy the customer’s needs.

o Partner cards: there are several partner organizations of Providian which provide cardholders means of earning rewards or supporting different Groups. The HSN (Home Shopping Network) Visa lets shoppers earn 10 dollars for every 1000 dollars spent. There are membership cards which allow consumers to earn discounts in various club offers and merchandise. There are Democratic and Human Rights cards also where the cardholder can support those groups and a certain percentage of all the spending is given to them.

o There are also gift cards which one can give to their family and friends. These cards can be used at any business or stores which accept Visa, unlike other gift cards which work at some selected store. The gift cards range from $6 to $530 (plus cost of the gift) and come in a lot of designs for personalization. The sender can also get a short message printed on the card.

o Like many providian credit card companies, people can earn points or cash backs through reward plans. Also, Providian recognizes the users who make regular purchases and payments and they can reduce the interest rate of card and also receive various store and restaurant coupons.