Credit Card Quick

How to make a Balance Transfer Offer Work for you

Introduction

As credit card companies begin easing up on their credit card practices, you may begin to see a steady trickle of credit card offers entering your mailbox. And, along with credit card offers come balance transfer offers.

Balance transfer offers are typically used to transfer higher balance cards onto another card with a more attractive rate. Many times, credit card companies offer low introductory or balance transfer rates, thereby saving the customer from hefty finance charges.

Finding a good balance transfer offer may take a bit of work, but there are plenty of credit card companies out there who are competing for your business.

How a Balance Transfer Works

If you are paying too much in interest charges on your debt then you may want to consider the advantages of credit card balance transfers.

Simply find a credit card that is offering a special balance transfer rate and consolidate your other, higher interest debt onto the lower interest rate card. Pay close attention, however, to the term of the promotional rate, as well as the balance transfer fee, as both of these factors could impact your debt.

Many times, it pays to pay off your debt during the introductory, or promotional, period. However, if you are unable to pay off the debt during that time, pay close attention to the card’s standard APR, as it may be quite high.

Balance Transfer Features to Watch for

A good balance transfer offer will have three, main components:

• A long introductory period
• An attractive introductory rate
• A low balance transfer fee

Most balance transfer offers have an introductory period of between six to 12 months. Depending on your financial goals, look for the introductory period that best suits your needs.

A balance transfer offer often comes with a great, low introductory rate. For example, it is not uncommon to see 0% introductory rates.

Finally, a good balance transfer offer will have a low balance transfer fee. Most balance transfer fees range from three to five percent of the balance transferred, so pay close attention to this fee to ensure that it makes good financial sense to complete the balance transfer.

Credit Card Legislation Introduces an Era of Responsible Credit Card Usage

News

This upcoming year may bring more than new credit card legislation; it may just bring about more responsible credit card usage among consumers.

Looking Back on 2009

We have learned a lot from the past year. From the housing market crash to the debacle that resulted from the near-collapse of the credit industry, 2009 was a year of shocking change. For those of us accustomed to spending wildly on everything from cars and houses to vacations and clothes, 2009 brought about a huge change.

No longer could we take out credit at will; in fact, many creditors pulled in the reigns and not only began denying credit to consumers, but also limiting their access to the credit that they already had.

Case in point: many consumers saw the interest rates on their credit cards soar and their credit limits cut in half. It was a desperate attempt at credit card companies to limit their losses amidst delinquent loans and abandoned credit card debt.

Many individuals were also shocked to see their credit card company change the terms, fees and conditions on their cards. Even those with the best credit scores saw changes to their credit cards. In fact, 2009 left everyone feeling much more financially vulnerable than they did just a year earlier.

Positive Changes for 2010

However, 2010 may be the year that responsible credit card usage and accountability take center stage. No longer will credit card consumers be able to blame credit card companies for unfair practices and sneaky tactics. In fact, credit card companies will be forced to lay all cards out on the table, thereby leaving no surprises for credit card consumers.

In other words, credit card companies must be more responsible, and credit card customers must also do their part and act more responsibly.

One of the biggest changes for 2010 is that only the most responsible credit card consumers will be offered credit. Everyone else must prove themselves by acting responsibly with their other types of credit if they expect to snag a credit card.

Make a Promise for a More Financially Secure Future

Make 2010 your year for more responsible credit card usage. Read and re-read your credit card’s terms and conditions and make it a point to understand all aspects of your credit card. You owe it yourself and you owe it to your credit score to act responsibly in 2010.

Choosing Credit Cards over Personal Loans: What you need to Know

Choosing Credit Card

Many consumers use credit cards as a way to secure money for a wide variety of things, from home improvements to cars. Given the low interest rates and attractive terms offered by many credit card companies, particularly for individuals with prime credit, it is no wonder that many people turn to credit cards instead of personal loans.

However, is credit card debt really the same as a personal loan? For many individuals, attractive balance transfer offers lure them into using a credit card, while many personal loans carry a much higher interest rate than many credit cards.

However, with the good comes the not-so-good – and that goes for credit cards, too.

There are a number of reasons why credit cards are much different than personal loans:

• Your monthly payment will vary – Many consumers choose personal loans over credit cards because the monthly payment is fixed. However, for individuals with responsible credit management, the difference in monthly payments for credit cards is quite manageable. If you are looking for a fixed payment that you can come to expect during the life of the loan then a personal loan is probably better for you.
• Your interest rate may vary – Unlike personal loans that typically feature fixed interest rates over the life of the loan, credit cards may have changing interest rates, which then may affect your monthly payment and the amount of interest you pay on your loan. For example, although you may secure a credit card at an attractive 0% interest rate, this rate will likely expire and then you will be left with a credit card balance that features a much higher interest rate.
• You won’t have a clear payoff date – Unlike personal loans, which have a set repayment period, your repayment period for a credit card may vary greatly, depending on the interest rate being charged by the credit card company and the monthly payment you make. Because of this, credit card loans often turn into long-term loans that take much longer to pay off than traditional personal loans. It is therefore important to come up with a reasonable game plan for the repayment of your credit card and stick to it.

Can you Negotiate Different Payment Terms with your Creditor?

Credit Repair

Are you one of the millions of people that have been unpleasantly surprised by higher interest rates and larger minimum monthly payments? Are you worried about falling behind on your credit card payments? Are you struggling to pay the minimum payment every month?

If so, then it may be time to consider contacting your credit card company and asking them for payment assistance with your credit cards. Often times, a creditor will respond positively to a customer who recognizes a problem and chooses to deal with it before it gets out of hand. In other words, dealing with your debt problems head on instead of ignoring your mounting debt is not only better for you, but also better for your creditors.

But will your creditor bite?

Maybe and maybe not. There are some credit card companies who simply will not negotiate different payment terms for your credit card bill, while others will work with you to find a plan that will suit both parties. The only way you can find out how your creditor will respond to your request is to simply ask them. After all, you really don’t have anything to lose except a lot of worry over your debt load.

How to Negotiate Changes for your Credit Card Debt:

• Don’t wait until you fail to pay your credit card bills to ask for assistance; instead, make every effort to cover your card’s minimum payment so that you can show good faith on your part. Your creditor will be more willing to negotiate with a customer that has a strong payment history.
• Document all contact you have with your credit card company, including dates and times of phone calls and names of representatives you talked to. Then, ask for a written agreement from your credit card company that details the terms of your new agreement.
• If your credit card company is unwilling or unable to assist you with coming up with more reasonable repayment terms regarding your credit cards, you should seek help through a nonprofit consumer debt agency, who can help you find ways to manage your debt.

The Blueprint Card from Chase

Choosing Credit Card

Can a credit card company really make your life easier? Well, Chase hopes to.

The Blueprint card from Chase features an all new set of credit card tools that are designed to help us all manage our money and make our lives easier.

A Different Approach

Although there are a slew of credit card companies that have taken to cutting credit limits and raising interest rates this past year, the Blueprint card is taking a bit of a different approach; attracting customers by helping them manage the often-demonized credit card.

And if there’s one thing that credit card customers need during this tough, economic time is relief and assistance.

Budget-Friendly Features

The Blueprint card offers a myriad of neat features that are designed to help customers stay on track and stay on budget. If you’re like most people, you simply can’t believe that a credit card company may actually help you manage our debt, instead of help you get into it. But the Blueprint card actually accomplishes this – and more!

The Blueprint card helps customers understand how they are spending their money and where they are spending it. It also provides a tool that helps them calculate various payment options, thereby giving them a clear picture of how long it will take them to pay off their balance at their current monthly payment.

In other words, it can provide you with a snapshot, of sorts, so that that you can also see how much you will be paying in finance charges, over time, on the balance of your card. Often times, it is this eye-opener that encourages people to see just how much their purchases are costing them.

Full Pay Option

A valuable feature of the Blueprint card is the “Full Pay,” which allows you to pick a category – anywhere from grocery stores and gas stations to restaurants and retail stores – and then save. The Blueprint card then divides and separates your expenses into their proper categories; any expenses that fall under your chosen category are exempt from interest charges, even if you fail to pay our balance in full each month.

The Practicality of Online Credit Card Management

Credit Card Debt

Managing our bills – including our credit cards – has never been easier, thanks to online banking.

Whether through your bank or through your credit card’s website, you can pay your bill and stay on top of your debt without relying on snail mail.

Often times, it just makes more sense to sign up for the credit card management system offered through your credit card, as it will be able to provide you with more information than the bill payment system through your bank.

The Benefits of Online Credit Card Management

In other words, a credit card online management system may allow you to do many things: it may allow you to view your statement; it may allow you to pay your bill online; it may allow you to set up an automatic payment system; it may allow you to request convenience checks; and it may even allow you to ask for a credit increase.

Whatever type of online credit card management system you choose, one thing’s for sure: it sure beats paper statements, checks and stamps any day of the week.

Many people who use credit card management systems may choose to simply eliminate their paper bill each month. Not only can you save paper, but you can greatly increase the practicality and convenience of paying your credit card bill each month.

Features of Online Credit Card Management

You can use your credit card online management system to check recent transactions and to periodically check your account for any signs of theft or fraudulent activity. You may also periodically check your credit card’s balance to prevent you from going over your credit limit.

How to Protect your Identity

Before signing up for an online credit card management system, make sure your computer has the most up-to-date anti-virus and firewall protection, and always make sure that the website security certification is up to date. Finally, always choose a random user name and password, and not a password that is easily identified, such as your address or birth date.

Before accessing your account via your credit card’s website, make sure that you identify the locked padlock symbol near the address bar and that the address of the web page starts with “https”. This signifies that the website you are currently on is encrypted to prevent credit card thieves from gaining access to your personal information.

How to Prepare for Difficult Financial Times

Introduction

Given the state of the economy, it certainly comes as no surprise that many of us have been affected by the recession and the credit crisis in more than one way. And, unfortunately, most of our finances have taken a hit over the last year or so.

With that said, it is important that everyone prepares for difficult financial times so that we can best handle a financial crisis if it comes our way.

1. Start an emergency fund – There is absolutely no better way to make your way through a financial crisis than to fall back on an emergency fund. Most experts recommend aiming to save at least 3 to 6 months worth of living expenses, but every little bit helps. An easy way to start an emergency savings fund is to have a set dollar amount transferred from your paycheck or checking account into an interest-bearing savings or money market account.
2. Keep a good credit card or two and keep the balances low – Now is a good time to find a great credit card or two with competitive terms and conditions and get rid of the rest. It is also a good time to put yourself on a spending budget and to also make it a point to pay the balance in full every month. Getting into the habit of paying off your credit card every month will certainly enable you to manage your budget and your finances better.
3. Reconsider carrying retail credit cards – Retail credit cards are often a mess waiting to happen. They are easy to apply for, easy to receive, and often too tempting to avoid using in excess. If you find yourself charging more than you normally would just because you have a retail credit card then it may be time to say good-bye to your retail credit cards and simply stick with one or two, major credit cards.
4. Keep a home equity line of credit open – Homeowners with significant equity in their homes may be able to secure a home equity line of credit. Many financial experts recommend securing a line of credit in case of a financial emergency. The line of credit is open and ready to use whenever necessary, but you pay no interest or charges if your balance is zero.

0% Credit Cards: What’s the Catch?

Introduction

With all of the doom and gloom surrounding the credit card industry, a credit card boasting a 0% interest rate sure sounds good, doesn’t it?

But is there a catch to this impressive rate?

A so-called “free” credit card may not be free after all. You may have to pay a yearly membership fee; you may have to pay interest on charges that you carry from month to month; or your interest rate may only be promotional.

Good and Bad 0% Credit Cards

Whatever the catch, it is important to understand that all 0% interest rate credit cards are not created equal. There are some 0% interest rate credit cards that aren’t worth your time, but there are also others that are able to offer fairly attractive terms and conditions.

In order to qualify for a 0% credit card you must have excellent credit. Bottom line: there are no free rides when it comes to great interest rates. If you have paid your dues and maintained an excellent credit score then you may be eligible for some of the lowest interest rates going at any given time.

0% Promotional Rate Credit Cards

There are some 0% credit cards that offer this low rate for a promotional period of time. In other words, the 0% is not forever; just until the promotional rate ends, which is typically about six to 12 months. Although this may sound like a bum deal, the reality is that you could transfer a higher interest rate credit card onto a 0% promotional rate card and save hundreds of dollars in interest over a six month period.

Pay close attention to balance transfer fees and do the math: consider whether it will still benefit you financially to transfer your higher interest rate balances onto a 0% interest rate credit card after you pay the balance transfer fee.

Another common fee charged to individuals with low interest rate credit cards is an annual fee. Although you certainly should not have to pay an annual fee to have a credit card, paying a small annual fee may very well be worth your time if you are able to snag a super-low interest rate.

Finding a credit card with a 0% interest rate is possible; you just simply must realize that it may come with its share of terms and conditions. Often times, these terms and conditions are well worth it, so always weigh your options when shopping for a new credit card.

Credit Repair Companies: Why you shouldn’t have to Pay for Repairing your Credit

Credit Repair

The tough economic conditions this past year have left millions of consumers in financial straits. From the effects of the recession and credit industry to the tumbling housing market, credit card consumers across the country are finding it difficult to keep up with their credit card payments and are slowly destroying their credit in the process.

If you have been a victim of the economy and you are drowning in a sea of credit card debt, you may be tempted to contact one of those credit repair companies you often see advertising on television, radio and even on billboards. They often offer to repair your credit so that you can get approved for a car loan, a home loan or personal credit.

It may sound quite tempting, actually. The thought of paying a company to pull a quick fix on your credit may just solve a host of problems. But before you jump into the arms of one of these credit repair companies, there are a few things you should consider:

•  No one can legally remove information from your credit report. Regardless of what these companies may promise you, it is simply illegal to have any information removed – unless, of course, you find an error or discrepancy, in which case you must request an investigation by the appropriate credit bureau.

•  The only thing that will remove your bad credit rating is time – and responsible credit behavior.  Your negative credit card information can only be reported for seven years (bankruptcy is ten years). Unpaid judgments go back seven years, or until the statute of limitations ends.

•  Improving your credit score can only be accomplished one way: paying off your debt. In other words, instead of trying to hide from your creditors, contact them and set up a reasonable payment plan, if possible. You will feel relieved to end the stress of avoiding the creditor, and you will immediately begin repairing your credit.

•  If you choose to contact a credit repair company, make sure you receive the brochure, “Consumer Credit File Rights under State and Federal Law.” This brochure should clearly outline the company’s fees, as well as your rights and obligations.

•  Consider seeking help through a non-profit consumer credit counseling service, which is almost always free of charge.

Are Secured Credit Cards the Right Move for Subprime Borrowers?

Choosing Credit Card

We often hear from financial experts that a great first step when rebuilding your credit is to land a secured credit card. But is this really the case? Can secured credit cards really help to rebuild a not-so-stellar credit?

As it stands, there are more than 70 million Americans with credit scores low enough to qualify them as subprime borrowers. Because of this, many of these Americans will turn to subprime credit cards, also known as secured credit cards.

The Basics of Secured Credit Cards

Secured credit cards often come with very low limits and strict regulations regarding their use. For example, a secured credit card requires that the cardholder “secure” the card with cash. The cash that is secured for the card equals the card’s credit limit, thereby allowing the credit card company to cover the card’s credit limit in the event that the customer does not pay the bill. If the customer pays the bill, however, the cash is kept in a secure account and not used.

Subprime Credit Card Restrictions

There are some restrictions on secured credit cards as a result of the new federal credit card legislation, including placing a cap on the amount of fees that the credit card company can charge the cardholder in the first year (25 percent), but for the most part credit card issuers can continue to charge surprisingly high interest rates and fees.

Subprime Credit Cards still a Smart Financial Move

Even with the high interest rates and fees imposed by creditors, secured credit cards are still a smart move for individuals looking to improve their credit score. A recent study conducted by TransUnion and commissioned by Citizens for Equal Access to Credit followed 365,000 subprime borrowers over a two-year period and found that subprime credit cards were successful in helping consumers rebuild their credit.

In fact, during the study’s two-year period, 37 percent of subprime borrowers saw an increase in their credit score by using subprime credit cards. About one in five subprime cardholders saw an increase of more than 40 points to their credit score, which took many of them to near-prime, prime or even above-prime credit scores.