Credit Card Quick

Finding the Best Credit Card Offer: do you Know What you’re Looking for?

Choosing Credit Card

Even with the unsteady state of the credit card industry, there are plenty of credit card companies and credit cards from which to choose. For someone looking to get a new credit card, the process of finding the card that’s right for them can be downright confusing.

Given all of the credit card options available, how can you be sure you’re getting best deal and the most competitive rates?

Well, the first thing you can do is use the Internet to research and compare the top credit cards by each credit card company. However, there are several other factors that you may want to look at next time you are considering applying for a new credit card:

• Read the fine print when it comes to cards boasting a zero percent interest rate. More importantly, find out whether this zero percent rate is fixed or variable, and whether it is simply a promotional or “teaser” rate that will last just a few months. Many consumers fall into the zero-percent-interest trap, only to be stuck with a high interest rate once the promotional rate expires.
• Look further than just the interest rate. A credit card company could offer you a fantastic interest rate, and then sock you with outrageous fees. Check to see if the credit card company charges an annual fee for the card; also, check the card’s fees and penalties for cash advances, late payments and over-the-limit fees.
• Make sure the credit card you choose has a grace period. Some credit card companies charge interest from the moment you make a purchase, while others offer consumers a grace period during which they can pay off the card with no interest charges.
• Look beyond rewards and perks. Some consumers are drawn into using a credit card simply because it offers them some type of reward program or perks for using the card. However, what many consumers fail to realize is that the rewards they think they are earning are merely being trumped by high interest rates or other fees and charges. In other words, make sure you are not paying out more simply to earn rewards points.

Consolidating your Credit Card Debt: How to Make it Work for you

Credit Card Debt

If you find yourself in over your head in credit card debt, or if you simply want an easier way to manage your existing credit card debt, you may consider consolidating your debt onto one credit card.

If you have good credit – and provided you do not already have too much debt – you will likely be able to secure a low, fixed interest rate credit card. In addition, you may be able to snag an even lower introductory rate.  You can use this new credit card to transfer all of your outstanding credit card debt, thereby alleviating higher interest rate cards and multiple, monthly payments.

Debt consolidation is usually a smart move to make, although it pays to consider your actions after you have consolidated your debt:

• Make a budget – Once your debt has been consolidated, now is the time to sit down and make a firm, monthly budget, without all of the cards that you have been accustomed to paying every month. It is important to recognize your new debt, along with its due date and monthly payment.
• Cancel other credit cards, if necessary – Although you’ve no doubt heard many credit card experts tell you not to close credit card accounts because it will lower your credit score, the fact of the matter is that if you think – even for a minute – that you might be tempted to charge these cards back up, it will simply be in your best interest to close the accounts and eliminate the temptation.
• Make a plan and stick to it – One of the best things you can do once you consolidate your debt is to come up with a realistic game plan. Do the math and figure out how long it will take you to pay off your credit card if you put X amount of dollars on it every month, and then go from there. Make a commitment to pay at least a certain amount above the minimum payment each month so you won’t be stuck with a credit card payment for years and years to come.

Credit Card Reforms may Happen Sooner than Previously Thought

News

Capitol Hill is now considering whether the legislation that will protect millions of Americans from deceptive credit card practices is not coming soon enough.

Speeding up the Credit Card Legislation

A proposal, which would speed up the implementation of the credit card legislation, is now being considered by Congress. The many credit card reforms, which are a part of the Credit Card Accountability Responsibility and Disclosure Act of 2009, were set to go into effect in February 2010; however, the many changes being made by creditors in an attempt to get around the legislation and prevent too much loss have made many financial experts wonder whether the new credit card legislation has caused more harm than good.

Because of the many last-minute measures being taken by creditors in attempt to boost their profit margins before the February deadline, Congress is considering moving up the effective date of the new legislation to December 1.

Opposition Meets Change….and Loses

There are some individuals and groups, however, that oppose the idea of moving up the effective date of the legislation, such as Federal Reserve Chairman Ben Bernanke, because they argue that creditors still need more time to implement new policies and to deal with any regulatory issues that may be a result of the legislation.

The members of the House Financial Services Committee were clearly not in agreement, however, when they voted unanimously to speed up the effective date for the credit card legislation. Now that the House Financial Services Committee has voted to move up the effective date, the legislation will now move onto the House for a vote, and then onto the Senate.

Many financial experts and politicians see this move as a way for Congress to protect consumers from a hike in interest rates, among other things, especially as the holidays approach.

Although many see this reform as long-overdue, there are many individuals that see it as a way to control the credit sector, instead of placing the responsibility on the consumer.

Now it is simply up to the powers of Capitol Hill to decide whether consumers will receive the protection of the credit card legislation sooner than later.

How to Keep your Credit Score Strong

Credit Score

We all need to pay close attention to our credit score these days, as a strong credit score is essential for obtaining any type of credit. Things certainly have changed in the credit sector, particularly as a result of the struggling economy and the new credit card legislation, so it certainly benefits us to find new ways to protect our credit score.

We all know that paying our debt on time, each and every month, is the number-one thing we can do to keep a strong FICO score, but there are also many other things that may hurt our credit:

• Cash Advances – Do not, under any circumstances, take out a cash advance on your credit card, unless absolutely necessary. Credit card companies see a cash advance move as a bad financial sign on your end, and will often pay close attention to the number of cash advances you take out. Many consumers wonder why in the world a creditor would offer a cash advance, given that information, but the fact of the matter is that creditors make a lot of money on cash advances, mainly due to the high fees associated with them.
• Maxed out retail cards – Your retail credit cards with high balances often send a signal that you are using your credit irresponsibly and that you may be under financial stress. In addition, most retail credit cards come with high interest rates and fees, thereby making them more difficult to pay off. The best rule of thumb, when dealing with a retail credit card, is to not purchase anything that you can’t pay off within a month or two.
• Too many new accounts – If you open too many credit card accounts at one time, or if you apply for too many credit cards, and are rejected, the credit reporting bureaus often see this as a sign of financial desperation. As a result, you may experience a hit on your credit score. If you were recently rejected for multiple cards, or if you opened more than one card within a month or two of each other, you may see a drop in your credit score, so pay close attention when opening any new accounts.

Three Ways to Beat the Credit Card Game

Introduction

Credit cards can be your best friend, and your worst enemy. For those who have mastered the credit card game, credit cards are merely a convenience, and one that they certainly never rely on. Mindful, responsible spending and a serious commitment to paying off your credit card debt in a reasonable amount of time will save you from credit card problems, thereby helping you to become financially independent and not bogged down in credit card debt.

How to Beat the Creditors at their own Game:

• Did you ever hear the saying that the best way to achieve a zero percent interest rate on your credit card is to simply not have a balance? Listen, credit cards more than serve their purpose, for a multitude of reasons; however, when you find yourself purchasing things that you know darn well you will not be able to pay off in the near future then it is time to rethink your attitude towards credit card debt.

For starters, make a budget and stick to it. That will allow you to estimate what you can afford to charge each month and pay off each month. Next, before you whip out your credit card to make a purchase, simply take a moment or two and ask yourself if you really need this item, or if it an impulse purchase.

• Consolidate your debts onto one, manageable credit card and then cut up all of the other ones. One of the biggest mistakes consumers make is to consolidate their credit cards and then simply charge them back up again. You must make a conscience decision once you have consolidated your debt to no longer use those cards that got you into trouble in the first place.
• Negotiate the terms of your credit cards. It is not uncommon to see interest rates skyrocketing and credit limits being slashed, as the new credit card legislation has prompted many creditors to stick it to their customers in hopes of recouping some of their losses. However, if you notice you APR on the rise or your credit limit being cut, immediately contact your creditor to remind them that you have been a loyal, responsible customer and that you expect the changes to be reversed. If they are unwilling to negotiate with you regarding the terms of your credit card then it may be time to move on.

Credit Cards now Encourage Responsible Spending

News

It seems rather ironic, doesn’t it? Credit cards, after years of encouraging credit card spending – often irresponsibly – are now encouraging more responsible behavior and helping consumers better manage their debt.

Case in point: JCPMorgan Chase recently unveiled a new credit card, called Blueprint, which is designed to help customers handle their debt.  This card enables customers to better manage and track their purchases, and helps them pay off their debt by making the process a bit more practical and manageable.

Features of Chase’s Blueprint

One of the key features of the Blueprint credit card includes the ability to avoid interest charges on everyday purchases, such as food and gas. Although consumers would continue to pay interest on other types of charges, everyday purchases would be exempt from interest charges for a certain period of time.

JPMorgan Chase’s Blueprint will also enable customers to design payment plans to assist them when paying down their debt, and will also allow them to better track their spending. Customers of the Blueprint card simply choose their everyday categories in advance to enjoy an interest-free grace period on certain purchases.

The new Blueprint card is available to more than 20 million Chase customers.

Other Credit Card Companies hit the Bandwagon

A number of other credit card companies have also released similar credit cards with features such as debt-management tools and online budgeting tools. Wells Fargo and Discover have both introduced cards like this.

American Express, meanwhile, is pushing its credit card terms to consumers – which includes paying the card in full every month – as the right card for these tough, economic times.

It’s no wonder that credit card companies have finally caught onto the serious credit card problems plaguing millions of consumers in the United States. With credit card defaults and delinquencies soaring, credit card companies must find ways to help consumers better manage their debt.

This new era of “transparent” credit cards is sure to help consumers who are finding it difficult to manage their debt and maintain a strong credit score.

Now, the question is, during this difficult period of time, are consumers willing to trust that credit card companies are there to help them and to not put them further into debt?

Only time will tell.

Speeding up Approvals with Online Credit Card Applications

Choosing Credit Card

Let’s face it: for most of us, time is not on our side. We spend our time desperately trying to shove everything we need to accomplish into one day, and then we get up the next day and do it all over again.

For many consumers, the only time to tend to personal business is after hours, in front of their computer. Credit card companies realize the importance of providing busy consumers with simple solutions for managing their finances, and thereby often offer consumers the ability to apply for a credit online, through the completion of an easy, online application.

Online credit card applications eliminate time on the phone, answering questions to a credit card representative, and they eliminate the need to fill out lengthy credit card applications.

Benefits of Online Credit Card Applications

Instead, they allow consumers to research and apply for a credit card, any time of the day or night, at their convenience. We all know about the practicality and convenience of the Internet, so isn’t it about time that you put the power of the Internet to work for you?

An easy way to begin your search for a credit card is to simply read the latest information about credit cards. You can compare credit cards online by their interest rates and rewards programs, for example.

To apply for a credit card online, simply assemble all necessary information in front of you before starting the online application.

Once you’ve found a credit card that suits your needs and offers competitive rates and fees, you can begin the process by checking to make sure the web site is secure. Look for a “locked” padlock icon on the top of your browser and look to make sure the credit card application web page address starts with
“https.”

Once you have completed the online credit card application and submitted it to the credit card company, you can expect to receive an answer in as little as a few minutes. Once approved, the credit card company will then send you an approval letter, via email. You can also expect to receive your new credit card in a matter of days.

The Progress Card by Capital One: Helping Consumers Rebuild their Credit

Credit Card Debt

Although there are many credit card companies that are trying to distance themselves from those consumers with bad credit, there is one card that is specifically designed for credit card customers that have a less-then-stellar credit rating.

Capital One recently introduced the Progress Card, which will be available around Christmas. This card features no interest rate and incentives for paying on time.

Like any other card designed for individuals with bad credit, the interest rate is quite shocking. In fact, it may start as high as 34.9 percent. However, most individuals have few options when it comes to rebuilding their credit or being approved for a credit card.

Incentives to do Better

It is important to note that, although the Progress Card has a super-high interest rate, credit card customers can work toward lowering their interest rate, simply by paying their bills on time and paying more than the minimum payment.

For example, if you pay your bills on time for six months, and pay at least the minimum payment during that time, you will be eligible to have the interest rate reduced by five percent. As you continue to pay your minimum payment, on time, you can expect to see a five percent increase every six months. Pay on time for 18 months and that 34.9 percent interest rate is now down to 19.9 percent.

Capital One may also offer consumers an increase in their credit limit by their fourth statement if they display responsible card usage.

Working Towards a Better Credit Rating

The Progress Card, true to its name, enables individuals with bad credit to make progress and work toward a better credit rating. This card provides consumers with the tool necessary to begin building a positive credit history and credit rating.

For many individuals that have been adversely affected by the economy, the credit card crisis and the near-collapse of the housing market, this card could have not come at a better time.

Perhaps more credit card companies can take a lesson from Capital One and discover that many otherwise-responsible consumers need a second chance at rebuilding their credit and rebuilding their lives.

How to Choose the Best Frequent Flyer Credit Card

Choosing Credit Card

All frequent flyer miles cards are not the same. We all love our frequent flyer miles, and we all want to earn as many points as possible, so the question that begs an answer is, “Which frequent flyer credit card is right for me?”

The answer to this question is certainly different for many people, as any one frequent flyer credit card is not a one-size-fits-all kind of card.

It is quite easy, however, to find the frequent flyer card that is right for you. First, it is important to understand that there are two, basic types of frequent flyer cards: cards that earn miles for airlines; and cards that earn miles for airline programs.

Many of the larger airlines partner with banks to produce “co-branded” credit cards. Most airlines will sponsor either Master Card or Visa, while others may partner with American Express. Most cards work in a similar manner: each dollar you spend on your frequent flyer credit card will earn you points toward your frequent flyer program. Some purchases may even earn you bonus miles, thereby enabling you to rack up points even quicker.

Airline Credit Cards

Airline credit cards are ideal for individuals that either fly often or fly in premium class. These credit cards are best for upgrades and premium tickets, but they restrict you to just one airline, which can be frustrating if you are traveling to a destination where that particular airline doesn’t travel.

Bank Credit Cards

Bank credit cards are convenient, as they allow you to earn “points” instead of “miles,” thereby allowing you to use your points either on airline travel or other types of rewards. The points are fairly easy to calculate, too, as each dollar spent usually equals one frequent flyer point. These types of cards may also offer bonus programs for particular purchases.

In addition, bank frequent flyer cards allow you to choose the airline through which you want to travel. It is also generally easy to arrange for travel wherever and whenever you want.

How to Handle a Credit Card Dispute

Introduction

If you had to fight a charge on your credit card, would you know what to do?

It is important that you understand how to handle a credit card dispute so that you won’t be caught in a fight that you can’t handle.

Let’s assume that you made a purchase at a local department store and paid for it with your credit card. When you receive your credit card bill you notice that the department store charged your card twice for the same purchase. Now what do you do?

Under the Fair Credit Billing Act, you can file a dispute with your credit card company to have the charge removed.  It may take a bit of time on your part, but you can get the charge removed if you know which avenues to take.

1. Your first point of contact should be the department store that double charged your purchase. Bring the credit card statement with you and ask them to remove the charge. Chances are they will comply. However, if you have no luck with this approach, consider making a complaint, in writing, and send it as proof to the merchant. Remember to send the complaint via certified mail so that you have proof that it was received.
2. If you still have no luck with the merchant, your next step should be to contact your credit card company and file a dispute. Most credit card companies will want you to submit this dispute in writing. It is important to understand that most credit card companies will only entertain a dispute if it is filed within 60 days of receiving your statement. You may be asked by the credit card company to provide them with proof that you attempted to resolve the dispute with the merchant, which is why sending a dispute letter to the merchant, via certified mail, is so important.
3. The credit card company, once they receive your dispute, will contact the merchant directly to get specifics regarding the charge. If the credit card company finds that the merchant made an error, the charge will be removed. If the credit card company determines that the charge was not made in error then you will be responsible for the charge.
4. The Fair Credit Billing Act specifies that a dispute can only be made with your credit card company if the charge was over $50, and that the merchant must be located in your state or within 100 miles of your billing address.