Credit Card Quick

How to Protect yourself from the Credit Card Legislation Loopholes

Introduction

It is no secret that credit card companies are looking for ways to make money given the new credit card legislation. As a result, many credit card companies have found quite a few loopholes in the new legislation; loopholes that you may not be aware of and loopholes that can cost you big.

There are, however, a number of things you can do protect yourself, even given the loopholes being enacted by credit card companies:

• Look closely at your credit card statement each and every month and take note of any changes in your credit card’s terms and conditions. The CARD act requires that credit card companies must notify you 45 days in advance of any credit card changes, thereby providing you with the opportunity to find another credit card or close your account. Remember: credit card companies can charge all the fees they want, but in the end it is up to you as to whether you will accept these fees or not.
• Regardless of what you have been told in the past, if you don’t like the terms and conditions of your current credit card, cancel the account and find another one. The small hit you may take on your credit score due to a closed account will be minor, so get rid of the unwanted card and make a better choice. It is important to close any accounts that you no longer use, as you will likely incur inactivity fees as a result inactive accounts.
• To find the most competitive credit card, check out popular bank, credit card, and lending websites. These websites compare all of the latest credit cards, side by side, so can shop for a new credit card in one place. In addition, don’t forget to check out credit cards through your local credit union or bank; often times the interest rates charged by these local institutions are quite attractive and competitive.

It is important to remain in charge of your financial future, and the only way to accomplish this is to remain educated, informed and aware.

How to Avoid the Pitfalls of Credit Card Debt

Credit Card Debt

Think of your credit card as an opportunity to prove your credit worthiness. Your credit card is your chance to build a strong credit history so that you can enjoy all of the benefits that come with a strong credit score.

Here are some tips for preventing the pitfalls of credit cards that so many consumers have found themselves in:

• Find the credit card that is right for you – Instead of choosing a card because of rewards or introductory rates, concentrate on the basics of the credit card, including the APR and the annual fee. Your ability to build a strong credit history relies on your ability to pay your card on time and pay it off in a reasonable amount of time. It is therefore imperative that you find a card with only the most competitive rate and terms.
• Understand your card’s terms and conditions – Your card’s terms and conditions are likely to change because of the new credit card legislation, so it is more important than ever to pay close attention to any and all changes relating to your credit card’s terms and conditions. It is ultimately up to you to understand your credit card and all of the rules and regulations that go along with it.
• Know your credit card’s APR and pay close attention to any changes –Always pay close attention to your credit card’s APR. In fact, it is a good idea to take note of the APR every time you receive your credit card statement. Although credit card companies must provide you with at least a 45 day notice of any changes to your card’s APR, you may miss this disclosure. It is therefore always a good idea to take note of your card’s APR.
• If your card isn’t working for you, don’t be reluctant to find another card that will work for you. You must remain in charge of your financial well being, and that includes taking charge of your credit card. If you don’t feel as if your credit card is giving you the most competitive rate and terms, then by all means find another card that will.

New Credit Card Legislation Filled with Loopholes

News

So you think you are fully protected now that the new Credit Card Accountability Responsibility and Disclosure Act of 2009 has taken effect.

Think again.

The new law, which essentially requires credit card companies to end unfair and deceptive practices, was enacted by Congress to be a savior to credit card-weary customers. However, the new laws have their share of loopholes; loopholes that credit card companies are quick to take advantage of.

In short, there is simply no law that can fully protect consumers from deceptive credit card practices.

• For example, the new law doesn’t prohibit credit card companies from charging outrageous fees. In fact, the law does not cap interest rates at all. Credit card companies are also permitted, under the law, to cancel a credit card at any time.
• Credit card companies are also permitted, under the new legislation, to impose new fees and even charge more for fees currently in place. In other words, your credit card company is still permitted to raise everything from cash advance to account transfer fees.

Although there are plenty of positive aspects of the current credit card legislation, unfortunately there are just as many negative aspects of which consumers need to be made aware.

• One of the new charges that credit card companies are imposing, likely as a result of the credit card legislation, is a credit card inactivity fee. This fee, which can be as much as $36 per year, is charged by the credit card companies when you don’t use your credit card enough.

Still, other credit card companies have begun charging their customers for everything from paper statements to foreign transactions.

• Did you also know that credit card companies can also charge a “minimum finance charge?” Yep, that means, regardless of how small your balance, your credit card company can charge you a minimum fee.
• Many credit card companies are also bringing back annual fees.

The bottom line is that it is up to you, the consumer, to continue to monitor you credit card statements very carefully and to always, always take the time to read the terms and conditions of your credit card.

Smart Credit Card Spending: your Guide to Responsible Credit Card Use

Introduction

Credit card spending in the United States has changed significantly over the last couple years. In particular, credit card consumers have developed a whole new appreciation for the use of credit cards and how they can both positively and negatively affect their credit.

This new level of thinking when it comes to credit card spending has come at a high cost: credit card companies are now incredibly picky about who they will lend credit to, and unless you have superior credit, you will likely be paying far more in interest than you did just a few years ago.

However, credit cards still remain a highly attractive financial tool for most American consumers; we just all have to make a concerted effort to establish a respect and understanding of them. Here’s how:

• Pay close attention to the credit card’s terms and conditions – Don’t ignore the APR, the credit limit or the grace period on the card, as all of these terms could have an impact on your credit and your credit card balance. You owe it yourself, your finances and your credit to remain an educated credit card consumer because, in the end, only you are responsible for your credit score and your credit card balances.
• Become a smart spender – Credit card debt is a sneaky little bugger, as it can often creep up on us when we are least expecting it. Decide what type of spender you are, and remove your credit cards from your wallet if impulse spending is your problem. Stop and ask yourself if you really need your purchase each and every time you charge on your credit card; this simple step can prevent your credit card balances from ballooning out of control.
• Choose the credit card that fits your lifestyle and your budget – Even with credit card industry lending standards still tight, you can snag a great credit card if your credit score is strong. However, it is important to assess your spending habits, your budget and your needs when deciding which type of credit card is right for you. Not all credit cards are created equal, so take the time to choose the card that will work best for you.

All Credit Card Consolidation is not Created Equal

Credit Repair

You hear it all the time: credit card consolidation is the way to go. And, based on your mountain of credit card bills, credit card consolidation looks pretty darn good right now.

But what credit card consolidation programs are the best for you?

Often the easiest way to consolidate your credit cards is through a balance transfer offer from another credit card. However, it is important to realize that, although they may all seem alike upon first glance, they are, in fact, quite different according to their terms and conditions.

In order to determine if credit card consolidation is right for you, and to determine if you are getting a competitive rate on a balance transfer offer, you may want to begin by:

• Assemble all of your credit card debt. The best thing you can do, first and foremost, is to assess your credit card situation. Add all of your credit card debt up and determine your interest rate and minimum payment on each card. Then, add all payments together and compare it with current credit card consolidation offers. Make sure the offer is worth your while. For example, it certainly doesn’t make much sense to consolidate your debt if you won’t save on interest.
• Don’t just take one credit card consolidation offer and run with it. Instead, eye up the competition and check their interest rates, promotional rates, balance transfer fees and other related fees.
• Regardless of your decision, make a promise to repay your credit card debt in a reasonable amount of time and with a serious game plan. You can repay your credit card debt without consolidating your debt onto a balance transfer offer, but it may make sense to consolidate debt merely for the convenience of paying just one payment each month.
• Develop a game plan once your credit card debt is paid off. Many people, once their credit card debt is paid off, will simply recharge on their credit cards, thereby creating the same problem all over again. If you need to cut up your credit cards, then by all means so do. If you need to take them out of your purse or wallet, then make the move before your credit card debt becomes a problem once again.

The Four Terms to Pay Close Attention to when Applying for a Credit Card

Introduction

Applying for a credit card involves more than looking for the best interest rate. In fact, it is often the other terms and conditions on the credit card that make the most difference when it comes to managing your credit.

Your credit card can be incredibly valuable, or it can be incredibly detrimental; in other words, your credit card is only as useful as the behavior that accompanies it. And that means starting with a good understanding of your credit card and the important terms to study when applying for a credit card.

1. Annual percentage rate – The annual percentage rate on a credit card, otherwise known at the APR, is usually the best place to start when comparing credit cards. Pay close attention to the APR, as well as the APR should you become delinquent on a payment. New credit card legislation states that a creditor can raise your APR if you are more than 60 days delinquent on a credit card payment, so make it a top priority to get your credit card payment in on time, or else you could be faced with an astronomical APR.
2. Grace period – The grace period on the card is the time frame during which you must pay your credit card’s minimum balance. Although the new credit card legislation has forced creditors to allow customers adequate time to pay their credit card bills, you should still pay very close attention to the due date on the card, as well as a the grace period, and allow yourself plenty of time to get your payment in on time, each and every month.
3. Credit limit – Your credit limit should never, under any circumstances, be disregarded. In addition to incurring hefty over-the-limit fees, your credit score will inevitably become damaged, as your debt-to-income ratio will soar. In other words, make a great effort to keep your balance paid down and to not come close to maxing out your credit card.
4. Introductory rate – Many cards offer introductory rates to court customers. As they say, all good things must come to and end and this goes for introductory rates, as well. Pay close attention to the length of your introductory rate, as well as the APR once the introductory rate has ended.

New Places where you can use your Credit Card

News

The convenience and practicality of credit cards has hit an all-time high; where once cash was king credit, cards have taken over. Let’s face it: credit cards are incredibly convenient and they eliminate the need to carry around cash.

With that said, here are some of the most unlikely of places you can now whip out your credit card:

• Courts and government offices – From paying fines to paying taxes, most federal offices and courts now accept credit cards as payment.
• Vending machines – Still digging in your pocket for change for the vending machine? You can finally put it away and use your credit card to purchase vending items instead.
• Churches – We used to throw cash into the church plate, but churches now accept credit card payments, thereby making the process of paying your monthly offering easier than ever.
• Salvation Army kettles – This year saw a truly remarkable sight – Salvation Army kettles accepting credit card donations! These specially designed credit card receptacles will help this nonprofit organization – and eventually many others – to accept donations when people don’t have cash on hand.
• Tolls and parking meters – You know the drill: you pull into a metered parking space, only to find that you are lacking the change to put in the parking meter. Newer parking meters, as well as toll booths, are now accepting credit card payments, thereby greatly reducing the amount of stress felt when you simply can’t find any spare quarters under your car seat.
• Fast food restaurants – You need a late-night snack or a quick family dinner and you’re short on cash. No problem: simply head to your local fast food restaurant and enjoy your fast dinner using your credit card. Many fast food restaurants now accept credit cards, even when you’re heading through the drive-through lane.

Although credit card usage has become more convenient than ever, it is still important to remain diligent when paying with a credit card. Only pay by credit card at trusted merchants and always check your credit card bill for incorrect charges.

The Best Way to take Advantage of Cash Back Credit Cards

Credit Card Rewards

Cash back credit cards are a great product that millions of Americans have taken advantage of over the years. However, like any other kind of credit card offer, you must understand the concept behind cash back credit cards if you expect to come out ahead.

Cash back credit cards, in general, are very good credit card products for individuals who charge consistently and also pay off their balances each month. Because it certainly doesn’t make much sense earning cash back on a purchase that you are likely paying more for in finance charges.

Cash back credit cards are essentially an opportunity to earn free money; you just have to know how to do it:

• Compare cash back credit cards to determine which one best suits your spending habits and which one offers the most competitive cash back terms. It is important to remember that all cash back credit cards are not created equal, so it will benefit you greatly to do your homework when it comes to choosing a cash back credit card.
• In order to really start earning cash back rewards, you must start charging your everyday purchases. The consumers who really make out in the cash back credit card rewards game are those customers who make a habit of charging nearly all of their purchases – and paying those purchases off when their bills arrives.
• Don’t forget to keep close track of your spending habits on a cash back credit card. Like I mentioned earlier, the only way to really use a cash back credit card to your advantage is to pay off your bill at the end of the month; however, if you charge a lot during the course of the month you may not be able to pay your bill in full. This is why it is important to keep a close track of your monthly spending so you don’t end up carrying a balance over from month to month.
• Pay close attention to the terms and conditions regarding your cash back program, as they often come riddled with exceptions and rules. Make it a point to fully understand the card’s cash back program so that you can enjoy your cash back rewards without any penalties.

Five Moments in your Life when it Pays to have Credit Cards

Credit Card Rewards

Credit cards are more than convenient. In fact, they can be a downright necessity at times. For many individuals, having a credit card is more about freedom and security than it is about being able to spend freely.

The first step in successfully managing your credit is to develop a healthy relationship with credit cards. Once you have a certain appreciation for their practicality and convenience, and once you have a clear understanding of their ability to not only make, but break, your credit, you are well on your way to an excellent credit future.

For most people, the ability to have purchasing power in the event of an emergency is crucial. In addition, there are many times when a credit card is simply a must:

1. When you Book a Hotel – Most hotels simply won’t allow you to book a room unless you are able to secure it on a valid credit card. For anyone traveling on vacation or business, a valid credit card is essential.
2. When you Book Airline Travel – Perhaps the easiest way to book airline travel is on the Internet or over the phone, and both of these methods require a valid credit card.
3. When your Car Breaks Down – Most of us have been in the unfortunate situation of a car breakdown. And most of us know it is quite a relief to know that we have a credit card in our back pocket to take care of the bill so we can be on our way.
4. When your Furnace Dies – It’s the middle of the winter your furnace decides to blow. What do you do? If you’re a credit card customer, you can immediately call in a repair man who can get your furnace repaired or replaced so you and your family can remain warm and comfortable.
5. When your Wallet is Stolen – When our wallets are stolen our cash is gone, along with your sense of security. However, you will be likely protected from theft and fraud when it comes to your credit card. In addition, most creditors can rush a new card to you within one or two days.

Smart Steps to Build a Positive Credit History

Credit Score

The last year or so has done a lot of damage to many Americans’ credit scores. With lending standards tighter than ever, it is now of extreme importance that we all work towards a strong credit score because our ability to obtain any type of credit depends on it.

Our credit score is determined, in part, by our credit history; in particular, if we have one, and if that credit history is positive. There are many ways to build a strong credit history; here’s how:

• Pay everyday bills on time and in full each and every month – Not only do loans and credit cards affect your credit score, but everyday bills do, as well. From your electric and gas bills to your phone and water bills, your payment history on your monthly utility bills can make a big difference in your credit score.
• Open a checking and/or savings account and take care of it – An active bank account is another great way to build a strong credit history. Take care of your bank account; don’t overdraw it and keep a steady balance in it, if possible. Your ability to manage a bank account is essential for developing a strong credit history.
• Obtain a credit card and never, ever miss a payment – A credit card is a great, first step in establishing a positive credit history. If you can’t snag a standard credit card, consider a secured credit card. Although secured credit cards must be secured with a cash deposit, regular payments still positively reflect your credit history.
• Choose credit over cash – When possible, choose to pay your purchases with a credit card. The more activity on your credit card the more history you can establish. Make certain, however, to keep close track of your monthly purchases and to pay off your credit card in full each month.  Remember: we must use credit to build credit, so establish a healthy respect for your credit cards and you will soon find that your credit score is making positive gains.