Credit Card Quick

Using Balance Transfer Checks to your Advantage

Credit Card Debt

Every once in a while you may receive a special package from your credit card company in the form of balance transfer checks. Balance transfer checks, which are typically provided to credit card holders with an excellent credit history, are an ideal way to make large purchases, pay off higher interest credit cards and make home improvements, just to name a few.

Convenience at your Fingertips

Balance transfer checks are convenient because they provide credit card holders with a more flexible way of paying off debt or making purchases. The best part of balance transfer checks is that they often come with a tempting rate. For example, many balance transfer checks offer a lower interest rate than your credit card. And most of the time the rate on the balance transfer check is good until the loan is paid off.

The next time you get balance transfer checks from your credit card company, check out the terms of the checks to see if the credit card company is offering you a good deal. If the balance transfer check rate is lower than your current credit card interest rate, and if there are no balance transfer fees, then you may want to take advantage of the offer.

Pay off Debt

Many cardholders use balance transfer checks to pay off other debts, including credit card bills, car loans and other installment-type loans. To pay off an outstanding debt and put it onto your credit card you need only write the check to the creditor and – voila! – you have just paid off another debt.

Make a Large Purchase

Other cardholders may use balance transfer checks to pay for large purchases, such as a car, vacation or home improvement. Because balance transfer checks are used like any other type of check, you may choose to write a check out to a contractor, a travel agency or a car dealership.

Write yourself a Check

Another great way to use balance transfer checks is to write the check to yourself for a specified dollar amount and deposit the money into your checking or savings account. You can then use the money in your bank account to pay off bills of any kind, or to use the money to purchase any number of things.

It is important to remember to use balance transfer checks wisely, and to think through purchases before you make them. However, as a credit card holder in good standing, you will have likely already mastered the credit card game, and will likely already understand the importance of paying your debts and being responsible regarding credit.

Finally, if you receive balance transfer checks from your credit card company and you choose not to use them, it is important to shred them immediately to prevent theft.

Balance transfer checks are yet another way that credit card companies reward good credit customers, so always remember to use them responsibly and to pay attention to the rate of the balance transfer checks, as well as the terms of the checks, as this could dictate whether or not it makes sense to transfer higher balance credit cards or to make large purchases.

Should I Take Advantage of a 0% Interest Rate Balance Transfer?

Choosing Credit Card Credit Card Types

We’ve all received those tempting offers from credit card companies offering a 0% interest rate on balance transfers. Sounds enticing, doesn’t it?

Well, credit card companies are betting on it. Don’t get me wrong – 0% balance transfer offers are a potentially excellent credit choice; but they may also come with terms and conditions that could turn around and bite you if you don’t stay on top of things.

How do they Make Money?

It only makes sense that a credit card company can’t make anything off of customers who take advantage of 0% interest rate offers, right? Wrong! The credit card company is betting on the fact that the majority of credit card holders will be unable to pay off their credit card balance during the 0% promotional rate. In other words, the credit card company may not make anything off of the credit card holder at first, but it is only a matter of time before they start making money.

How Long does the Promotional Rate Last?

Which brings me to the next point: 0% credit card balance transfer rates are rarely for the life of the loan! Upon further inspection, you will find that most credit card balance transfer offers are only good during a short, promotional period, which is typically between six and 12 months. At that point, the credit card’s interest rate will likely significantly jump.

In fact, some credit card companies may raise interest rates upwards of 18 percent once the promotional rate has expired. And this is where reading the terms of the credit card balance transfer offer becomes so important.

There are many credit card holders that accept 0% balance transfer offers, only to ignore the length of the promotion. And then, before they know it, they have been paying a 15 percent interest rate on their large balance!

What about Balance Transfer Fees?

Many of us are so excited to receive a 0% balance transfer offer that we automatically accept the offer without looking further into it. The two things that you should take special notice of include the interest rate once the promotional rate has expired, as well as the balance transfer fee.

Huh? A balance transfer fee? Yep, this is another way credit card companies make their money. Many companies charge a fee to transfer a balance, and this fee often ranges between one and three percent of the balance of the transfer.  Most credit card holders find that this fee is reasonable, considering the money they will save on interest rates, but it is definitely something to look further into when accepting a 0% balance transfer offer.

The bottom line with 0% balance transfer offers is that they can certainly prove beneficial to credit card holders who carry a balance on their cards. However, it is still important to work hard and pay off the debt as to avoid future finance charges. Check the balance transfer’s terms, including the promotional rate and the balance transfer fee, so that you can make the most informed decisions regarding your credit.

The Advantages of Online Bill Paying

Introduction

You know the scenario: you’ve had a super-hectic week. The car broke down, the kids had a school play and baseball practice and you had to work late nearly every night. After your week has wound down and the kids are in bed, you finally make it over to your computer only to find the credit card statement that you were supposed to mail last week!

OK, now panic sets in when you find out that the due date on the credit card is no less than two days away!  What do you do next?

If you call the credit card company and plead your case, it will likely fall on deaf ears. Credit card companies expect you to pay your bill on time every month, and your problems and drama are simply unimportant to them. The only other alternative is to mail the payment in late and get socked with a late charge and possibly an interest rate increase.

But is this really the only option you have?

Luckily, you do have another option; one that enables you to pay your bill almost instantaneously, without the need to worry about postage, late fees or inconveniences.

The Benefits of Online Bill Payment

Most credit card companies and banks provide their customers with online bill payment services. Online bill payment systems provide customers with unsurpassed convenience, as they allow customers to quickly and easily pay their credit card bill online.

Imagine: no more stamps, no more envelopes and no more trips to the post office! In addition, online bill payment transactions are usually posted within a day of making the online payment, which therefore allows customers to pay their bills at the last minute, without fear of late fees.

In addition, many credit card companies offer e-bills, which eliminate the need to receive paper statements every month. E-bills provide a practical reminder to pay your bill each month, and they also provide added convenience when managing your monthly finances.

Finally, online bill payment systems are almost always free to use, and are very easy to set up. These secure websites simply require registration, and the use of a user name and password for accessing the account.

How to Protect yourself against Identity Theft

Identity Theft

Identity theft, some say, is the price we all pay for our technology-driven society. We all enjoy the benefits and perks of the Internet and computer technology, but it is also these things that can cause the most unscrupulous thieves to come out of the wood work and take advantage of unknowing consumers when they least expect it.

It is with this in mind that we must all approach today’s technology with an educated eye. And credit cards are no exception. There are many ways in which identity thieves have fooled people into giving out their credit card numbers and other personal identification, and there are many computer-savvy thieves that have used today’s technology  to hack into consumer’s accounts.

Although there are no fool-proof methods for protecting your credit from identity thieves, there are a number of ways in which you can reduce your chance of being a thief’s next victim.

1. 1) Instead of signing the back of your credit card, write the words “See ID.” This may deter thieves from using your credit card in case of credit card theft or loss. In addition, never keep your credit or debit card’s pin number with your card, as this is essentially a free pass for a credit card thief.
2. 2) Beware of any emails claiming to be from your credit card company. Many identity thieves send out “phishing” emails that appear to be from legitimate companies. In the email, the thief may encourage to you to click on a link that brings you to a website that, although it looks similar to your credit card website, is actually a phony web site. The identity thief quickly obtains your personal information when you type in your user name, password, credit card number or social security number.

A simple way to avoid this type of identity theft is to never, ever respond to emails that appear to be from your credit card company. Most legitimate companies will never send you an email asking you to verify information.

1. 1) Do not choose an easy password that can be easily guessed by an identity thief. Identity thieves will often try obvious passwords, such as your address or your birth date, when attempting to gain access to your account, so steer clear of any commonly used numbers or phrases. Instead, opt for a password that contains both alpha and numeric characters.
2. 2) Review your credit card statement every month, without exception. Many consumers who use their credit cards frequently throughout the month never stop to review their statements – and credit card thieves are counting on it.

Take the time to carefully review all purchases made on your credit card each time your bill arrives so that you won’t fall victim to identity theft.

How to Stay on Top of Rising Interest Rates

Credit Card Debt

The financial crisis of the last couple of years has left many banks and creditors scrambling to recoup their losses. The overall losses are astronomical, and millions of customers are simply without the means to repay their credit card debt.

Unfortunately, whether we like it or not, the losses felt by many credit card companies and banks are simply passed onto customers in good standing. Although this certainly isn’t something that is said outright, many of us have likely experienced interest rate hikes and additional fees on our favorite credit cards over the last couple of years.

As a customer in good standing, you do have rights regarding interest rake hikes and other fees. In other words, don’t feel like you have no other option than to accept higher interest rate charges on your credit card if you have always paid your bill and kept your credit in good standing.

1.       Keep your credit card account in good standing – no matter what! You have little room for negotiation if you fail to pay your bill on time.

2.       If your credit card company sends you notice of a rate increase, immediately call the company to negotiate. Once again, if you have maintained an excellent credit history you will hold the cards regarding your interest rate. Ask the credit card company to maintain your current interest rate. If you have no luck, ask to speak to a supervisor and plead your case with him or her.

3.       If your current credit card company does not budge regarding your current interest rate, simply look elsewhere. If you have maintained an excellent credit rating, switching credit cards should not be a problem. Although obtaining credit may be harder than it was a year or two ago, individuals with good credit are still being sought out by creditors.

4.       Look for a credit card with a low, fixed interest rate or one that has a low, introductory offer. Also, look for a credit card that includes a low rate on balance transfers and or a low fee on balance transfers, as these costs can be significant, regardless of whether you have secured a low interest rate.

Newlyweds 101: Dealing with Existing Credit Card Debt

Credit Card Debt Credit Score

We all know that marriage takes compromise, patience and lots of love. But what about money?

Amidst all of the wedding and honeymoon planning, it is important to take time to discuss finances with your fiancé. Unfortunately, talking about finances is often the first thing to get bumped when life is hectic and wedding plans are in full swing. However, it is not only unwise, but detrimental to your marriage, to begin your life together without first discussing your finances.

One of the most important subjects to cover is credit cards. You may want to ask yourself and your fiancé the following questions:

• - How many credit cards do you have?
• - Are there existing balances on the credit cards?
• - What is the monthly payment on your credit cards?
• - Have you ever defaulted on any credit cards?
• - Do you currently have any credit cards that are not in good standing?
• – What are your overall views on credit and credit cards?

If you begin to search for the answers to the abovementioned questions, managing your finances once married will be much less stressful.

It is vital that you and your fiancé essentially lay it all out on the table so that you can enter your marriage without any secrets or any surprises.

• - If you find that your views regarding credit cards and debt is much more stringent that your fiancé’s, you may consider managing the finances.
• - Now is also the time to pay off as much debt as you can, and to do what you need to do to get all of your credit cards in good standing.
• - You and your fiancé may find that ordering copies of your credit reports may also prove to be extremely useful when sorting through your debt. Having copies of your credit reports on hand will allow you to clearly make sense out of each other’s credit and will enable you to both get a clear idea of where you stand financially.
• - If credit card debt is a serious issue that you cannot readily solve, you and your fiancé may choose to seek the services of an accredited, consumer credit counseling agency.

The Importance of Using Credit Responsibly from the Beginning

Credit Card Debt Credit Repair

Instead of the “what if’s” in life, wouldn’t it be great to do things right in the first place?

For young adults, the importance of using credit wisely is vital. Good credit can open up doors for many young adults and allow them to enjoy the benefits of high credit limits and low interest rates. It can allow them to purchase their first car, their first home and even start their first business.

On the other hand, poor credit from credit mistakes made during young adulthood can really limit our choices as we look to purchase those items that carry us through to adulthood, like a home and car.

Making the Right Choices from the Beginning

Many of us obtained our first credit card during our college years when it seemed like credit card companies set up shop around every corner. Many of us were lured into the idea of a credit card, and credit card companies were banking on that.

However, many of us blindly and irresponsibly used credit during this time and therefore paid the price.

For young adults, now is the time to set the standard for our credit, and to make responsible choices that will afford us a strong credit score and a future full of opportunities.

Understand Creditors and What they are Betting on

To truly maintain a great credit rating, you must first understand the purpose of credit cards and why creditors issue them.

Creditors are betting on the fact that the majority of credit card holders will not pay off their card in full every month, as they make their money on the interest that they charge.

Before you make a purchase, consider whether you have the money to pay the bill at the end of the month, or if you are willing to pay the creditor in the form of interest charges.

Always Spend within your Means

For many credit card holders, a credit card is an excuse to spend money that they simply do not have. Do not fall into this trap! Instead, stop and consider your monthly budget before making purchases that are simply not within your budget or that you don’t really need.

Always remember that, in the realm of credit, we don’t have a second chance to make a first impression!

Useful Information about the Fair Credit Reporting Act

Credit Repair Introduction

What you don’t know about the Fair Credit Reporting Act could cost you.

The Fair Credit Reporting Act (FCRA), which is enforced by the Federal Trade Commission, is a federal act designed to ensure that consumers’ privacy is protected and that the credit reporting agencies maintain accuracy and abide by certain responsibilities.

Perhaps one of the most important features about the FCRA is that consumers are entitled to a copy of their credit report from all three, national credit reporting agencies – Equifax, TransUnion and Experian – once a year.

There are also other instances in which you may be entitled to a free credit report:

• - If you have been denied for credit, insurance or employment (you must ask for a copy of your credit report within 60 days of being denied)
• - If you are unemployed and plan to begin looking for a job within the next 60 days
• - If you are on welfare
• - If you have been a victim of fraud or identity theft

Under the FCRA, you also have rights regarding inaccuracies which appear on your credit report. The credit reporting agency in which the inaccuracy appears, as well as the creditor who provided the information, have an obligation and a responsibility to investigate and correct the inaccuracy within 30 days.

Simply inform the credit reporting agency in writing. The credit reporting agency must then forward the information to the creditor, who must then investigate and review the information and report back to the credit reporting agency.

Upon resolution of the inaccuracy, the credit reporting agency must provide you with the written results of the investigation, as well as a new copy of your credit report (if the dispute results in a change on your credit report).

Finally, the FCRA recognizes that the only individuals who can obtain a copy of your credit report are those individuals with legitimate business needs. In addition, your employer may only access your credit report upon your approval.

If you have experienced violations of the FCRA, you should report it directly to the Federal Trade Commission at:

Consumer Response Center — FCRA
Federal Trade Commission
Washington, D.C. 20580.

Have you Considered a Small Business Credit Card?

Credit Card Types

We all know that credit cards play an important role in our day-to-day living. It should therefore come as no shock that small businesses rely heavily on credit from time to time.

Bridge the Income Gap

Many small businesses use small business credit cards to bridge the gap between income and expenses. A revolving line of credit is important for many small businesses or start-up businesses, as this enables the company to continue operating the business, even when cash flow is an issue.

Search for a Low, Fixed Interest Rate

Small business cards are similar to traditional credit cards, as the credit card balances are subject to interest charges; therefore, it is extremely important for small business owners to shop around and find a small business credit card with a low, fixed interest rate.

Take Advantage of Online Tools

Small business credit cards may also prove useful to small business owners who want to track their weekly, monthly and yearly spending. Most small business credit cards offer a myriad of online tools to help small business owners track expenses. In addition, year-end account summaries are also very useful, as they enable small business owners to see the overall picture regarding their yearly expenditures.

Protect yourself Against Credit Card Theft

Like traditional credit cards, small business credit cards feature protection against fraud or credit card theft, as well. For many small business owners, the ability to check the account online is important, as they can monitor the account on a weekly – or even daily – basis to ensure that there are no unapproved charges on the card.

Include Additional, Authorized Users to the Account

Small business owners can also add certain employees to the account, thereby enabling them to purchase supplies when needed. And, because all expenses are tracked and accounted for, the small business owner does not need to worry about frivolous expenditures. For many small business owners that rely on employees to make purchases and order supplies, this account feature may prove extremely beneficial.

Keep Business and Personal Expenses Separate

For many small business owners, it may prove useful to separate business expenses from personal expenses, so it may be a good idea for small business owners to obtain a small business credit card and use it solely for business expenditures, thereby eliminating the problem of confusing bookkeeping.

Credit Cards or Debit Cards: Which is Better?

Choosing Credit Card

Credit cards and debit cards provide busy consumers with convenience and practicality, as they allow us to quickly pay for purchases without fumbling for cash or writing checks. From gas and groceries to clothes and our morning coffee, credit cards and debit cards provide unsurpassed convenience.

Some consumers use their credit cards for their monthly purchases, as many credit cards now offer rewards and cash-back programs. Some of us have moved to debit cards as an easy way to budget ourselves. Which one is right for you?

Let’s take a look at the advantages and disadvantages of both credit cards and debit cards:

• Convenience – Both credit cards and debit cards run neck and neck regarding their overall convenience. They are easy to use, are accepted at nearly every location, and allow consumers to avoid carrying cash.
• Security – Both credit cards and debit cards are protected with security features; however, credit cards may win the security battle due, in part, to the fact that debit cards are connected to checking and savings accounts, both of which could be drained as a result of credit card theft.
• Rewards – Credit cards offer the best rewards for consumers who use them regularly. From airline and hotel points to cash back programs, credit cards have found many, resourceful ways to lure consumers into using them. Some debit cards offer reward systems, but they generally pale in comparison to many credit card reward systems.
• Online Shopping – Because of credit card theft, it is important to never shop online with debit cards. Credit cards are the clear winner when shopping online, as they are not directly linked to your personal bank accounts.
• Budgeting – Debit cards come out ahead regarding budgeting. Debit cards are ideal for the consumer that tends to overspend, as the consumer can only spend as much money as he or she has in the bank account. Credit cards, however, are often abused by consumers who view them as “free money” and overspend as a result. The bottom line: there are no surprises and large bills at the end of the month with debit cards.