Saturday, November 25, 2006
Cash Back Card – Buy to Save!
Credit card cash back offers have the potential to change the way consumers spend their money. Who would have thought that you could get money just by spending some? With banks rolling out credit card rebates, saving has turned out to be the latest aspect of buying. Consumers can now choose from a wide choice of rebate credit cards according to their specific needs.
Cash Back Card – What Are They All About?
A cash back card is ideal for shopaholics! The promise of getting a few bucks back at the end of a spending spree might remove some guilt of burning money – on the other hand, it may add to the retail therapy. A cash back card entitles the cardholder to a certain amount of money or a refund for every purchase made by using the card. Credit card rebates range from 1 per cent to 5 per cent and differ from transaction to transaction, depending upon the contract between the credit card company and its associated business partners.
Groceries, shopping, school fees, electricity and other utility bills; mobile phone rentals ... the possibilities are endless! Just about any transaction through a cash back card ensures reimbursements – however small – for the cardholder.
The Flipside of Rebate Credit Cards
If this was all beginning to sound too good to be true, you were right! This, like every other promotional offer, has certain pitfalls. Finding the right card amongst a host of rebate credit cards out there could be quite a time consuming task as there is no uniformity in the benefits offered by different companies. But be sure to make an informed choice after weighing all the options on hand as well as your specific needs. Each credit card company has tied up with a particular set of businesses, outlets, and service providers to offer these credit card cash back offers. Thus, you would be well advised to obtain a card that offers the most lucrative rebates on your most expensive or more frequent purchases. If you have any big-ticket expenses coming up, that you plan to charge to your card, this could be a good place to start.
Another major area of concern for a cardholder is how these rebates can be redeemed. Some cards have a minimum and maximum cash back limit and any transactions beyond the specified limit remain unaccounted for. Other credit card companies require cardholders to request reimbursements while a few others do it automatically. Most cards will reflect the points in your statements.
Are Credit Card Rebates Really Worth It?
It remains to be seen whether credit card cash backs will be a success or not. Are these offers trying to win the confidence of consumers, or simply trying to tempt them into abandoning old-fashioned cash forever? If you truly want to protect your own interests and beat the credit card companies at their own game, make sure you make a knowledgeable, well-calculated decision while choosing a cash back card.
Balance Transfers Primer
Are high credit card fees giving you sleepless nights? Think smart: balance transfers could be an intelligent short-term solution. The following article can be used as an introductory guide and a primer on the use of balance transfers that discusses the intricacies of balance transfer details. Transfer the weight off your shoulders and get a balance transfer credit card with a lower rate of interest. However, make sure to run through the terms and conditions of the new balance transfer card, to make sure you win in the long run.
If you are not really keen on getting a new card, tell your existing company that you want to transfer your balance to another card that offers a much lower rate. Your existing credit card company just might offer you a better deal. If not, then go ahead and call the competition!
So what is so great about balance transfers? Balance transfers to a card with a lower rate can significantly cut down your interest and fees. The most common rate of interest offered by companies on balance transfers is 0% for 3 to 12 months. If you are fortunate and your credit is good enough, you might qualify for a 0% interest card for 12 months on balance transfers and purchases. Be aware, however, that some cards, will link the introductory annual percentage rate (APR) to the billing cycle of the card.
There could be some additional perks available on your balance transfer card as well:
1) Your new card may charge no annual fees.
2) The grace period on payments might be longer.
3) Rewards like cash back on purchases might be available.
4) Discounts from certain retailers, identity theft protection, and even car insurance can be thrown in as well!
How Do I Get One?
You will be required to go through some basic application procedures and paperwork on a balance transfer. You could write a balance transfer on one of the convenience checks that the card issuer will provide after getting approval on the card. These function just like normal checks but there are some things to be aware of, such as expiration dates. Time can cost big money, in this case, with the old interest rates snapping at your heels. How much you can transfer will depend entirely on the credit limit of your new card.
The fees for balance transfers are similar to that of cash advances, but often times, fees will be waived for the very best card offers. If there are associated transfer fees on the card, it is advisable that you avoid transferring small balances, as the transaction fees might undercut your potential savings. Some additional fees on these cards might include:
1) Late Fees: Once the introductory period on your balance transfer ends, you will start incurring finance charges on the remaining balance. Late fees on these card offers are particularly expensive. In order to avoid these exorbitant fees, make sure that you mail payment well in advance of the due date. If you are using an ATM deposit, stay informed about the processing time of your payment. Banks either charge a flat fee, such as $10 or $15, or a percentage, such as 5%, of the minimum payment due, for example
2) Over-Credit Limit Fees: Each time you charge your card beyond the credit limit, the bank has the ability to impose a fee. It is possible that many of these aforementioned fees will gather simultaneously (in addition to interest charges) during the same billing period! Banks usually charge $10 or $15 for this fee or up to 5% of the amount on the exceeded limit amount.
3) Lost Card Replacement Fees: If you ever happen to lose your card, some banks might charge you anything between $5 and $10 for a replacement.
The most important thing to remember regarding balance transfer credit cards is to make all your payments on time and pay off the outstanding balance within the introductory time frame. Usually, there is no grace period offered up for balance transfers and unless you have snapped up an introductory 0% APR, interest will begin to accrue immediately. The calculation can get a little tricky too. Your initial repayments will first go towards clearing the balance transfer amount before making a dent in any outstanding balance created from recent purchases with the card. So if you want to avoid this mess, keep a separate card for balance transfers and another one for regular purchases.
Friday, November 24, 2006
All You Need to Know About Credit Card Rebates
Credit card rebates are the rage, after all, who can resist the temptation of earning while spending? However, don’t you think that before getting a new card, you should spend a little time going over the pros and cons of the credit card cash back offer? We have outlined everything you need to know about rebate credit cards and how to get the most out of all the various credit card rebates available.
The idea of being paid to spend money seems incredible but that is just the idea behind credit card cash back or rebate credit cards. With the growing popularity of credit cards, companies are sweating it out to make you believe that theirs is the best option for you. Here are certain guidelines on credit card rebates that can help you make the best of your cash back card:
Taking Stock of Credit Card Cash Back Offers
Take stock of your normal purchases and then get a cash back card that pays you for these items. The best option for credit card rebates, of course, is to look for a card that pays you for ALL your purchases, regardless of where you make them. The highest rate of credit card rebates may not be the best one for you. You might get rebate credit cards rates as high as 5% but these may cover only certain purchases and merchants and not necessarily the ones you need.
Choose your rebate credit cards according to your personal choice of reward. Some cards offer immediate discount on purchases, some send you gift cards from time to time, still others will reflect as points in your card statement. Who said a credit card cash back offer was simple? If you would prefer a bonus check, then go for cash back offer that pays dividends on a yearly or six-month basis. This way you could have a decent rebate in your wallet for Christmas!
A gasoline cash back card can be of good use when you have to fill your tank. Every gallon you buy earns discounts. Moreover, you might even receive cash back on purchases at a particular gas station. Cards that pay you on all purchases generally have a lower rate (usually 0.5%) but it might give you decent rewards in the long run, unless you go to only a select range of merchants. In this case, you should go for a card that covers such merchants, though beware, these might carry higher rates of interest.
Regularly compare cash back credit cards on websites to ensure that you don’t miss out on better APRs and rewards. In fact, if you are carrying balance on your accounts, interest charges might actually be eating into your cash back rewards.
Are Cash Back Credit Cards For You?
Think of the cash back card as a card that rewards you for taking a loan. These discounts may range between 1% and 5%, depending on the purchases. Make sure you know what you are getting into – for example, only apply for a gas rebate credit card if you own a car!
Look for the rebate percentage before sealing the deal. Credit card rebates are given out in different forms. Some companies offer discounts through cash incentives on an annual basis; others may directly send it to the customer’s account. You may also find options that link your rebate to a savings account or you may accumulate a certain kind of points. There could also be a deadline by which you have to spend your points, so do not hoard points without knowing the expiration date. If you have a monthly shopping schedule or if you prefer buying products in bulk then this type of card is likely to work for you. Chances are that before you are allowed to use all the privileges offered by the company, you will need to demonstrate a good credit history.
Most importantly, you must be aware that the credit card rebates may not cover all the things you wish to purchase. If you keep this and other basics in mind, you can soon be on your way to saving significantly with credit card rebates.
What is a Prepaid Debit Card And What Are Its Advantages and Disadvantages?
In the 1990s, credit card companies incurred heavy losses because of many credit card users defaulted on their payments. Thus, credit card companies had to come up with a new way to collect debts. It was during this period that credit card companies began offering secured credit cards and prepaid debit cards. Today, most credit card companies such as Visa, Mastercard and American Express issue prepaid debit cards.
The Prepaid Debit Card Concept
A prepaid debit card works similar to a prepaid phone card. You purchase a prepaid debit card by paying the amount you want as your limit. You can add funds to your prepaid debit card at a retail location or an online bank. You use the prepaid debit card like you would use a credit card. The only difference is that the transaction amount is deducted automatically from your prepaid debit card. You can keep using the prepaid debit card until the balance reaches zero.
Benefits of Prepaid Debit Cards
You can enjoy many benefits by owning a prepaid debit card.
* You won't need to carry a lot of cash with you every time you go out.
* If you travel frequently, you can use your prepaid debit card in countries where your card's issuing company provides this service. Mastercard, American Express and Visa all issue prepaid debit cards that you can use in many countries. Banks have also started issuing prepad debit cards to their clients.
* With a prepaid debit card, you won't have to worry about monthly credit card bills and missing credit card payments each month. If you are 18 years old or older, you can apply for a prepaid debit card and use it, irrespective of your credit history. Even if you have a not-so-good credit history, you can still avail of a prepaid debit card since this type of card requires funding.
* You can easily reload or add funds to your prepaid debit card. You can do this by calling the issuing company and authorizing them to transfer funds to your prepaid credit card or getting online and doing the transfer yourself. This feature of a prepaid debit card makes it very convenient for you to transfer funds, particularly when you are traveling or on vacation.
The Downside of Prepaid Debit Cards
Like other cards, the charges levied on prepaid debit cards can be high. There are fees for applying for a prepaid debit card, adding funds to it, exceeding its limit as well as cashing out and cancelling the card. So before you sign up for prepaid debit card, compare the fees offered by the issuing companies. Go with the one that has the lowest fees and the best terms. It costs about $5 to reload a prepaid debit card so make sure that you put an initial funding that is high enough. And when you need to reload your prepaid debit card, add enough funds so that you don't find yourself reloading frequently.
Keeping Your Prepaid Debit Card Safe
To access funds from your prepaid debit card, you will need to have a PIN. Keep your prepaid debit card safe from unauthorized use by changing your PIN every so often. You should also never reveal your PIN to anyone. It's also a good thing to ask your bank or issuing company to set a daily spending limit on your prepaid debit card in case you lose your card or someone finds out what your PIN is.
Even though prepaid debit cards have some disadvantages, their benefits outweigh them. Prepaid debit cards are especially a good solution for people who are unable to get approved for a credit card because of a poor credit history.
If you get a prepaid debit card, you should use it carefully and responsibly, much in the same way you would wisely use a credit card. Because it is very easy to reload a prepaid credit card, you may fall into the trap of using it too often and too much. Remember that you can only use it as long as you have funds in it and as long as you have funds to add to it. Keep track of your transactions so you never run out of funds.
Thursday, November 23, 2006
Guidelines to Choose the Right Airlines Credit Card
An airlines card earns credits or points whenever the card is used. Choosing an airline card will not be difficult, if you travel frequently with a certain airline. If you use various airlines, then it is wise to select from airline cards that provide more flexibility in their redemption and reward systems. An airlines credit card is usually best suited for business travelers.
Selecting the right airline card could be a major task so you need to ask yourself some preliminary questions before considering any airline credit card.
1. Which is the airline you frequently fly or prefer to fly? The first question is to determine your most frequented airline. If you prefer to travel by a selected carrier, it is better to check whether they have their own airline credit card. Since most of the airlines today have partnered with credit card companies, the chances are that they will have their own card. However, if you tend to fly by the cheapest or the easiest available carrier at the time of your travel, you will have to consider an airline card that offers greater flexibility. Some cards have alliance partnerships with various airlines, offering greater flexibility to you.
2. What is the frequency of your air travel per year? These cards are based on point accumulation system with the accumulated points expiring after a certain period. If you are not a frequent flyer, then you may not benefit from these cards, as you will not be accumulating enough points to avail the reduced or free travel. Conversely, if you are a frequent flyer, then ensure that the card you have chosen has favorable blackout dates and preferably no cap or maximum allowable points that can be earned. In most cases, however, there are restrictions on the number of points that you can earn and blackout dates when you will not be able to redeem your reduced or free travel privileges.
3. What are the benefits versus fees on the card? In general, airline cards have high interest rates and annual fees. It is important to evaluate the annual fees paid versus the reduced or free mile travel earned per year. An airline card will not be attractive if the annual fee is more than what you will earn as free or reduced travel. In addition, you could be paying hefty finance charges, if you are not able to pay the balance on the card in full every month. In which case, it is better to choose a credit card with a low interest rate and no frills attached than the rewards program.
It is important to research the number of points required to accumulate in order to qualify for free air travel. To get maximum benefits from your airlines card, consider these additional factors prior to making your choice:
Flexibility of the Card: Your card has to be flexible to be used in many places including restaurants and shopping malls. Points are added every time you make a purchase using the card but sometimes certain purchases add more points. It is essential to use airline cards in such cases to avoid accumulating large balances.
Cap on Accumulated Points: Most cards have a cap on the number of points that can be accumulated. If you are a frequent flyer, it is better to read this fine print. Most of these cards have rewards based on predetermined level of points.
Redemption Criteria: Mostly during high season, airlines and hotels do not encourage redemption of miles or use of free or reduced travel privileges as they already have a built in level of demand at that period of time. It is critical to check for the redemption criteria and blackout dates if any prior to application for the card.
Annual Fees: It is essential to do a cost benefit analysis on the various available airline credit cards before selecting one. If you do not travel a great deal, it is better to go for a card with a low or no annual fee and a decent set of rewards. If you are a frequent flyer, you can choose one with higher annual fees and excellent rewards that should more than offset the additional cost.
Terms and Conditions: It is important to read the terms and conditions as well, otherwise known as the fine print regarding such things as balance transfer details, upgrading to higher limit cards, interest rates, debt consolidation using your airline credit card so that you may secure maximum benefit from the use of the card.
Other Services: Certain cards provide travel insurance and discounts on car rental and hotels. Some also provide cash advances in emergencies. Obviously, you have to compare various cards on these to get the best one suited to your lifestyle.
Competition in the market forces credit card and airline companies to frequently change their airlines card product offering to remain competitive in the marketplace. However, it is recommended that once you choose the most suitable airline card for you that you do not change cards unless there are huge benefits in doing so. If you consider signing up for an airlines credit card, it is better to make an informed decision based on long-term benefit, rather than be carried away by the marketing and short-term promotional gimmicks of these companies.
Accounting Made Easy with Small Business Credit Cards
Jaded by a routine 9 to 5 job? Stifled by your thankless work? Have you bartered your dreams away for an emotionally unsatisfying life? If you have finally decided to wrench yourself free from your shackles, it is time to take stock financially and see how small business credit cards can actually help you in starting your and running your own business.
When you set out on this exciting new journey, you are likely to face a number of challenges, and with them, teething troubles. You can avoid such stress if you make good use of the various tools specially designed to assist entrepreneurs in their ventures. Small business credit cards are by far one of the most important accounting instruments made available to you.
Small Business Credit Cards are Valuable Accounting Tools
One of the major problems that small businesses face is detailed accounting of their monetary transactions. Finances of any business must be immaculate and readily presentable, and if you haven not done such accounting before, be prepared for a tough task.
Usually, a small business suffers from insufficient manpower. Business owners assume various roles and are often under tremendous pressure to perform efficiently in a frenetic race against time to meet deadlines. Thus, opportunity for human error creeps in. But when it comes to finances, even the minor errors can spell disaster for your new baby.
Small business credit cards offer an opportunity to ease this tension and minimize errors. Whenever a transaction is done through a small business credit card, it is automatically reflected in a monthly statement. Your books can then be easily updated on time with the help of these all-inclusive statements showing specific details. A thorough account of all purchases can easily be maintained in this manner.
Managing Your Business with Small Business Credit Cards
Small business credit cards generally offer features such as online banking and round-the-clock technical assistance. This is especially handy when it comes to bill payment, downloading data, viewing expense reports, redeeming points, and overall maintenance and monitoring of transactions.
Add-on Benefits of a Small Business Credit Card
Credit card companies have bettered the deal by offering additional benefits on small business credit cards. As a business owner, you cannot afford to ignore these benefits. For example, obtaining incrementally higher credit limits can provide you with additional liquidity when required and more opportunities to expand your business products and services.
A small business credit card can also have a cash back offer that entitles the cardholder to rebates on purchases made with collaborating businesses. The refund may be reflected on the customer’s account statement or just be provided by way of a periodic rebate check. Some cards also come with airline and travel reward incentives and you can even earn frequent flyer miles with your purchases that can also be redeemed for discounts and rewards.
Small business credit cards have revolutionized the way fledgling businesses approach finance. Card statements that are usually made available online can help remove tedious accounting paperwork. Small business credit cards empower even those with the most rudimentary knowledge of accounting, freeing them up to focus on growing their respective businesses.
Need Money But Have Bad Credit? No Problem - Helpful Tips On Obtaining A Bad Credit Loan
The whole idea of a bad credit loan sounds pretty uncomplicated doesn’t it? The truth is that finding a lender that offers bad credit loans isn’t the final step of the process for obtaining a loan if you have previously been financially promiscuous. There are many factors that need to be considered before taking out a bad credit loan. This article will explore bad credit loans in more detail and offer tips for anyone looking to apply for one themselves.
Before you even begin looking through lenders you should personally assess your own financial standing to determine whether or not a bad credit loan is an appropriate decision based on your current circumstances. Browse your own financial documents and do a few calculations. Not only will this help you evaluate your readiness to take out a loan but it will look great when demonstrated to your loan officer as it will appear that you are more responsible and have considered the implications of your loan more thoroughly.
The first and most obvious tip for getting a bad credit loan is to do your research. There are so many lending institutions today offering such amazing deals that it is so easy to get sucked into the first juicy offer that comes along. Make sure you peruse the loans documentation thoroughly and that you understand the most important terms and conditions of what you might be getting yourself into. Things to be considered are interest rates, term of loan, reason for loan, process for loan defaults, monthly repayments etc.
Once you have selected a lender for your bad credit loan you will need to begin putting together your application. The goal of this part of the process is to prepare whatever documentation and proof you can that suggests you to be a great loan applicant. Things that lenders look for (other than credit history) are consistency of income, level of current debt, level of current expenditure, level of income relative to the amount of suggested loan repayments, type of job, employment history and much more. It is easy in this part to show the information you want to show and emit that which you don’t and that isn’t a bad thing. Remember ultimately lenders make money when you take out a loan so they want to give you a loan as much as possible. Make their decision an easy one.
And finally, if all the stars align you will be awarded your bad credit loan. It is important to immediately setup a plan that will systematize the method in which you will pay back the loan over time. This will keep things simpler and allow less room for you to make the mistake of further adding to your already bad credit.
Tuesday, November 21, 2006
Debt Credit Counseling Services Can Damage Credit Scores
You may have heard the phrase that getting involved debt credit counseling services can be as bad as declaring bankruptcy. Unfortunately this is true. This is because if you get involved with an unethical company they could get you even deeper in debt and also cause your credit scores on your credit reports to plunge.
One way that your credit scores can be damaged is by the lenders if they perceive that you are enlisting debt credit counseling services. By law the debt credit counseling services must report that you are enlisting their aid to the credit bureaus. If one of your lenders sees this they can make a negative comment about it on their report because from their point of view (which is a legitimate one) you are trying to escape your moral obligation for paying off the entire debt.
What does moral obligation have to do with anything? When the entire system of credit bureaus adopted the Fair and Isaacs Credit Organization's method of calculating credit scores it was all about whether or not a person's moral character is worthy of credit. This worthiness of course is reflected in your FICO score - the higher your score is the more precious you are to a lender. You also get the best interest rates, lower fees and low insurance rates.
The minute you hire debt credit counseling services your moral credibility is thrown out the window as trying to reconcile your debt for pennies on the dollar is considered to be a sin in the eyes of lenders. This is why enlisting such aid can do almost as much harm to your credit scores as a real bankruptcy. Unlike bankruptcy, these bad credit comments and negative scores can stay on your credit report for years and years making life very difficult.
Credit Card Counseling Services Or Bankruptcy?
If you have credit card debt you have two important options- enlisting the aid of credit card counseling services or bankruptcy. Bankruptcy is the equivalent of giving up and can be quite costly to you in other ways in the long run. For instance after declaring bankruptcy it may be difficult for you to rent an apartment and you won't be able to take out any credit of your own for seven years.
Filing for bankruptcy is one of the most damaging thing you can do to your credit but at least if you enlist the aid of credit card counseling services there is still some hope for you. Unless you are prepared to live almost an entire decade without credit and also with the surety that you will be charged high rates for any kind of insurance because of your bankruptcy then the bankruptcy option is likely not for you.
However it is a mistake to think that working with credit card counseling services won't hurt your score as well. You will get a negative comment as well as a noticeable drop in your credit card scores for the entire duration of your credit card counseling services. The good news is that these black marks are temporary and removed as soon as your session is over. However while you are actually being given advice by one of these companies you are off limits for being provided credit by additional lenders and credit card companies.
The other drawback of working with credit card counseling services is that such a company may get your interest rate reduced, your minimum payment reduced and delayed and may even get your credit limit raised for you! Unfortunately this just encourages most people to immediately take advantage of the new available credit that they have just received and they continue to spend -- which is what caused them to get into debt in the first place!
Do You Know What Credit Scores Mean?
Many people wonder what credit scores mean and why they are important.
In fact, your credit score is much more important than a simple number and has the power to impact all areas of your financial life.
Without a proper credit score, you may not be able to get a home loan, car loan, student loan, business loan, or personal loan.
The lack of loans can put you in a sticky situation and may be the culprit of your blocked dreams to own a home, start a business, or earn your degree.
Furthermore, just as your credit score has the power to affect all aspects of your financial life, your credit score is impacted by all aspects of your financial life. Everything from how many credit cards you have in your name to how often you pay your utility bills on time is reported on your credit score.
For this reason, anyone should learn exactly what credit scores mean and their potential impact on any financial situation.
The first step in determining what credit scores mean is to take a long look at your own credit score. This is a number that is assigned to each and every individual by a financial institution.
Since anyone applying for a loan is considered to be a liability to the creditor, the credit score tells the financial institution the degree of liability. Individuals with good credit are capable of receiving loans and opening credit cards without trouble.
These individuals have proved themselves responsible by paying their bills on time and using their credit responsibly.
Although the exact formula that is used to calculate the credit score is kept a secret, there are certain known factors that are taken into account in order to determine the specific number.
These factors include the number of credit cards that you have in your name, the balance of those credit cards, the number of late fees that you have accrued on all accounts from utilities to loans to credit cards, and even the number of times that you request your credit report.
The range of a credit score is between 300 and 850, with 850 being the highest possible score and the best possible credit.
Individuals with good credit typically have scores that fall between 660 and 850. The median credit score for the United States is around 725.
If you find yourself to have a low credit score, know that there are options available to begin the process of repairing your credit. The best way to restore your credit is to pay off all outstanding bills on time.
If your debt proves to be outstanding, you may want to look into the services of a debt consolidation service.
These services work to combine all of your debts into one loan on which you can pay regularly until the entire debt is relieved.
Monday, November 20, 2006
Non Profit Credit Card Counseling - Reducing Your Debt
If you are going to look into debt restructuring and debt reduction then make sure that you check out the many non profit credit card counseling sites online. Many of these sites are put together by non profit agencies that are run by the government and they have been specifically put there to help you get rid of your overwhelming debt problem.
However one thing you need to realize is that not all credit card counseling are run by benevolent entities like the government or the church. Many so-called non profit credit card counseling companies are actually run by an organization called the National Organization for credit card counseling. This entity is largely supported by credit card companies and banks who feel that it is better that people be counseled to settle their debts for less then they actually paid instead of commit bankruptcy and default on the debt altogether.
Unfortunately not all non profit credit card counseling services are free. You need to read the fine print before you consult with one of these services as there is usually all kinds of hidden fees. One of the most common fees is supposed to cover the cost of procuring your credit report from you. This is totally unnecessary as you can very easily procure your own credit report for free from any one of the three major credit bureaus - TransUnion, Equifax or Experian.
Another risk with using non-profit credit card counseling services is “you get what you pay for” (as the old saying goes.) Sometimes you just get inappropriate advice or bad service. The worst type of non profit credit card counseling outfit is the one who forgets to report your consolidated payments to the credit bureaus which of course results in even lower credit scores then ever! These types of boiler room operations are prolific online and off and often keep your fees without helping you fix your credit at all.
How To Consolidate Your Credit Card Debt
A new credit card can be used to help you eliminate some of that debt that you have from other credit cards, and other sources of debt, too. As long as you are able to get another credit card, then you have a great tool available to reduce your monthly payments rather quickly. Here is how you can do it with a new credit card.
Look For 0% APR Interest
Here is one option that can really help you to cut down on the amount of interest that you pay each month on your credit cards. Get a credit card that has 0% APR interest, and make sure that this benefit will last for at least one year. Some cards will only give you as little as three months on this, and others will give you up to 15 months. By putting your credit card debt on the new card, you can literally reduce your interest payments to zero - as long as the introductory offer of 0% stays in effect.
Balance Transfers
This is the feature that allows you to take the debt from one credit card and put it on another. Watch out for a card that has balance transfer fees attached to it, especially if you are trying to reduce your debt - you don't need another 3 or 4% interest charged for the transfer. It is common for a credit card to have balance transfer fees, but also, many do not have it. In addition, some credit cards will charge a specific amount of interest on balance transfers, but not on other purchases during the introductory offer period. You should know, though, that when you get your new card, you may need to list all transfers that you are wanting to put on it, and that you may not be able to transfer anything else to it. Find a credit card that will give you more flexibility.
Make Big Payments
A credit card, apart from adding a little convenience to your life by making it so you do not have to carry cash, is a great tool. But if you pay a regular late fee, plus high interest each month - it becomes more of a great inconvenience, rather than the help it should be. It will help if you can reduce your debt as much as possible by making as large a payment each month as possible. By having the 0% APR interest rate, you should be able to make larger payments and reduce the principal amount rather quickly - as long as you pay on time.
No New Purchases
Consolidating your credit card debt can really profit you once you get it down to where you can pay off each month's transactions - each month. While this goal may be down the road for some, still, it is a goal that all should seek after. This means cutting down on your extra purchases that you really do not need until your credit cards are manageable in the way they should be used. Instead of looking at the card as a "buy all you can and max out the card as quickly as you can" approach, look at it simply as a way to handle finances better.
Rebates And Rewards
In order to save even more money, you will want to purchase your regular things, like gasoline, prescriptions, and food on the card, too. With some credit cards, you have the opportunity to save anywhere from 1% to 3%, and you receive it as a rebate or a reward - money subtracted from what you owe, each month.
Some of these options are only good if you learn to say "No" to unnecessary purchases. These credit card tips will help you consolidate your debt from other credit cards if you pay off the debt each month, and pay all that you can to get the debt down to a more comfortable level - and then you can start saving for those other things you want.
Sunday, November 19, 2006
How Can I Get A Mortgage With Bad Credit?
There are so many different programs for people with credit difficulties that no matter what your specific problem is, you will surely be able to obtain help from a bad credit loan lender. When it comes to mortgage loans, given that these loans are secured, your chances of approval are even better.
Causes For Bad Credit
Unexpected things can sometimes happen. An unforeseen layoff, divorce, illness, or other set of unfortunate circumstances can all contribute to bad credit. Even past irresponsible administration isn't impossible to overcome if you are trying to obtain a mortgage with bad credit (bad credit Mortgage loan).
Even those people with serious credit problems have successfully obtained a mortgage. While there are lenders who deal only with good credit applicants, there are other lenders that deal specifically with bad credit mortgage loans and home loans. Once you determine how much you can afford to pay each month for a new mortgage and any applicable taxes, the lenders can process your mortgage request and provide the best offer available.
Loan Purposes
While many bad credit mortgages loans are obtained to refinance the home, consolidate debt, improve the property, or stop foreclosure, there are plenty of mortgages for those with bad credit who simply want to own their first home. Whichever is the purpose of your desired loan, you can obtain one by applying with the right lender.
If you know that you have bad credit, this isn't always a problem while applying for a Mortgage loan. Just be prepared to discuss your bad credits honestly with your new mortgage lender. Each mortgage lender understands that there can be legitimate reasons for credit problems so they will probably still consider application acceptable.
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