Credit Card Quick

Credit Cards and Marriage: Getting started Right

Introduction

If you are getting married soon, chances are you and your spouse will each come into the marriage with your own set of bills; and that includes credit card bills. In order to start your life out on the right foot, you and your spouse will need to be on the same page when it comes to finances; and to do that you need to remain open and honest with one another.

Here’s what you and your spouse, or soon-to-be-spouse, may want to discuss:

• Order copies of your credit reports – There is no better way to start a marriage than by laying everything out on the table. Regardless of the financial mistakes you or your spouse made in the past, it is best to begin your life together with complete knowledge of where you stand financially. Agree not to judge each other; just concentrate on your goals moving forward.
• Consider consolidating debt or paying it off – One of the best things you can do before you even think about any other financial decisions is to pay off outstanding credit card bills that either you or your spouse currently possess. Paying off debt, especially high-interest credit card debt, will free up your household budget so that you can move forward and work together to save money and create savings.

In addition, if you or your spouse have a great credit card with a low interest rate, consider transferring your other credit cards to just this one card.

• Consider opening a joint credit card account instead of carrying separate accounts. A joint account will allow you and your spouse to keep better track of your household spending and work together to pay the bill each month. This is also a good way for both you and your spouse to stay better informed regarding your credit card debt.
• Choose the card that’s best for you – Consider your options regarding credit cards, and decide on a card that will benefit both you and your household. For example, you may want a low-interest, no-frills credit card or one that comes with attractive rewards.

Your Credit Score: Broken Down

Credit Score

We all know that our credit score is of great importance, as it determines our ability get a loan or any other type of credit, but not many of us really understand the many factors that go into determining the all-mighty credit score.

Understanding the components that determine our credit score will ultimately enable us to better manage our credit, so it pays to take the time to really understand what our credit score is really trying to tell us:

• Payment History – Our payment history makes up about 35 percent of our credit report.  Our payment history is the largest component of our credit score, as it ultimately allows a lender to see if you have repaid loans in the past in a responsible manner. With this in mind, it is important to understand that any late payments made on loans, credit cards, and even utility payments, can have a negative effect on your credit score. In addition, your credit score will detail how late you were – 30, 60, 90 days or beyond.  In addition, if you have any accounts that have gone to collections for failure to repay, you can expect your credit score to take a serious hit. Other important factors that make up your payment history include: charge offs, debt settlements, bankruptcies, foreclosures, wage attachments, and liens.
• Debt Amount – Your current debt is the second most important component of your credit score, as it makes up about 30 percent of your credit score. The credit reporting agency will look at a few factors when determining this component of your credit score, including: total available credit used; amount owed on specific accounts (mortgage, car loans, installment loans, credit cards); and how much of original installment loan balances have you paid down. The general rule of thumb is to keep your credit card balances to less than 30 percent of your total available credit. Because of the importance of this component of your credit card score, many individuals will aim to pay down their debt before taking out a large loan.
• Credit History – How long have you have been using credit is the third most important component of your credit score, as it makes up about 15 percent of your total credit score. Some of the things considered include the age of the oldest account and the average age of all accounts.
• New Credit – Another 10 percent of your credit score is determined by how many new accounts you have. This includes newly opened accounts and recent applications for new accounts.
• Types of Credit – Another 10 percent of your credit score is determined by the types of credit you possess. Diversified credit is often helpful when determining this component of your credit score.

The Top Three Factors to Consider when Shopping for a Credit Card

Choosing Credit Card

If you have strong credit, you’ve undoubtedly begun receiving an influx of credit card offers in your mailbox. Now that the credit sector has begun loosening its reigns on credit, most consumers with good credit scores have now begun receiving a considerable amount of correspondence from credit card companies.

If you have a nice pile of credit card offers sitting in front of you, and you are ready for a new credit card (hopefully with attractive features and a low interest rate), then you can begin to compare credit card offers using three, simple factors:

• Interest Rate – So this sounds quite straightforward, right? You find the credit card with the best interest rate and go from there. However, consider that the current interest rate is just one piece of the credit card puzzle, as many credit cards offer attractive introductory rates that are not so attractive once the introductory period has ended. Therefore, before grabbing the first credit card offer with a zero percent interest rate, consider the length of the promotional rate and the interest rate once the promotional period has ended.
• Annual Fee – An annual fee is a touchy subject for many financial analysts; this is because some experts will tell consumers that they simply shouldn’t pay an annual fee, while others feel that an annual fee is well worth it if the card comes with very attractive rates and features. If a credit card offer comes with an annual fee, but also comes with its share of features, such as rewards and cash back, an annual fee may very well worth the expense. For the majority of consumers, however, it is really quite unnecessary to pay for an annual fee.
• Rewards – And now we come to the all-mighty rewards programs offered by many credit card companies. In a nutshell, rewards can definitely be, well, rewarding, if you follow a certain set of rules. In particular, forget about the advantages of any rewards program if you don’t pay your balance in full every month. Simply put, any rewards that you may earn through the credit card will likely be negated because of the finance charges paid to the creditor each month.

The Best 0% APR Credit Cards

Choosing Credit Card

There are many attractive credit cards available now which offer zero-percent introductory APRs, both for balance transfers and purchases. Therefore, it may become quite difficult to compare these zero-percent APR credit cards.

The first feature to look at when comparing zero-percent APR credit cards is the introductory period, as the interest rate will no doubt rise substantially after the introductory period has ended. In addition, pay close attention to other terms and conditions, as well as additional features of these credit cards. Remember: there is a great deal of competition in the world of zero-percent APR cards, so take your time to find the one that best suits your needs, wants and budget!

With that said, here is our comparison of some of the most popular zero-percent APR credit cards currently available:

• NASCAR RacePoints Platinum Plus Visa Credit Card (Bank of America) – The NASCAR RacePoints card features a zero-percent introductory APR on balance transfers and cash advance checks during the first 12 billing cycles. Other features include free online account access, no annual fee, rewards for NASCAR Experiences and Collectibles, and an opportunity to earn RacePoints on every purchase.
• Pulaski Bank Visa/MasterCard – The Pulaski Visa/MasterCard features a zero-percent introductory APR on all balance transfers for six months, along with no balance transfer fees. This credit card, at the time of this publication, has the best credit card rate in the country, at 7.99 percent.
• The Platinum Business Credit Card (American Express) – The American Express Platinum Business Credit card features no annual fee and additional cards with no fees. The introductory rate for this card is zero percent for the first 12 months. Other features include an option to enroll in a fee-free membership rewards program and automatic discounts with companies such as FedEx, Delta and Courtyard by Marriott.
• Bank of America WorldPoints Platinum Plus MasterCard – This card features a zero-percent introductory rate for the first 12 months, as well as fraud protection, 24/7 concierge service, no annual fee, and points that are redeemable for brand-name merchandise and dining certificates.

A No-Nonsense Guide to Credit Card Debt Elimination

Credit Card Debt

It may seem like a daunting task to finally begin making a dent in your credit card balances, but it can be done – and without a lot of nonsense and frustration.

You have likely heard of plans to reduce and eliminate your credit card debt, and many of these words of advice are quite useful. However, sometimes it may make the process of reducing your debt a bit easier if you break it down into a basic plan of action.

If you want to reduce – and ultimately eliminate – your credit card debt, here’s how to get started:

• Stop using your credit card – You may think that small purchases are relatively harmless, but it reality these small purchases often add up big when it comes to your credit card balance. Therefore, the best rule of thumb is simply to go cold turkey and stop using credit as a form of payment.  The act of eliminating credit card spending will require a new way of thinking, but if you are serious about reducing your credit card debt, then it is one to which you must be committed. In other words, if you want to take a trip, but you don’t have the cash, you simply don’t take the trip.
• Pay it down – Once you have taken the time to really change your spending habits you can start to focus on the debt. If you are only making the minimum payments on your cards, you are getting nowhere fast.  Make a commitment to pay at least twice the minimum payment each month. Although this may mean making additional sacrifices regarding your spending, you will soon be rewarded with your diminishing credit card balances. If you are having difficulty paying double the amount on all of your credit cards, concentrate first on those cards with the highest interest rate and pay the minimum payment on your other credit cards in the meantime.
• Make it easy – Paying more than the minimum payment on your credit card may be a hard thing to do; that is, if you have a choice. If you set up an automatic payment plan for your credit card payment each month (either through your bank or your credit card company), you will keep your payment commitment and likely not miss the extra money.

Which Wells Fargo Specialty Credit Card is Right for you?

Choosing Credit Card

Wells Fargo, being the mammoth financial institution that it is, offers many different credit cards, most of which offer fantastic features and fair terms and conditions.

If you are interested in a Wells Fargo credit card, but you don’t know which one is right for you, take a look at our comparison between some of the most popular Wells Fargo specialty credit cards:

• Wells Fargo Rewards Card – We like the Wells Fargo Rewards Card because it charges no annual fee and because it offers a great, zero-percent interest rate for the first six months. After that, however, the average rate runs between 12.15 percent and 21.15 percent, so if you don’t always pay your balances in full, you may end up paying quite a bit in interest charges. The rewards program works when you earn points for your purchases; earn one point for every dollar spent and one point for every four dollars in debit card purchases. Rewards with the Wells Fargo Rewards Card include travel, cash rebates, gift cards and merchandise.
• Wells Fargo cash Back Card – The Wells Fargo Cash Back Card is great if you like earning cash back on your purchases. This card comes with no annual fee and a zero percent interest rate for the first six months. Afterwards, expect an interest rate between 12.15 and 21.15 percent, which is quite typical for cash back rewards cards.
• Wells Fargo Home Rebate Card – The Wells Fargo Home Rebate Card is quite unique, as it enables customers to pay down their Wells Fargo home mortgage principal. Like the Cash Back card and the Rewards cards, the interest rate will vary between 12.15 percent and 21.15 percent after the six-month, zero-percent introductory period ends.
• Wells Fargo Cash Back College Card – This Wells Fargo student credit card is a great way for college students to earn cash back on their purchases while building their credit. A low, introductory rate of between 7.9 and 13.9 percent, followed by a variable rate between 14.5 and 21.5 percent, is featured on this card.

Comparing the most Popular Balance Transfer Credit Cards

Introduction

We love balance transfer credit cards, especially when they come with really great terms. Because most creditors have begun loosening those belts that have been so tight for the past year or so, many individuals are seeing the return of credit card offers in their mailbox, and balance transfer credit cards are becoming a more common sight.

With that said, it is important to understand that all balance transfer credit cards are not created equal and the introductory balance transfer period is often quite different from one card to the next. Here’s a quick comparison of some of the most popular balance transfer credit cards currently available:

• Capital One Platinum Prestige Credit Card -  This popular balance transfer credit card features a zero-percent APR until August 2011 on balance transfers and purchases, and balance transfer requests can be processed in as little as 48 hours. Other features of the Capital One Platinum Prestige card include a $0 fraud liability, 24-hour roadside assistance, travel accident insurance and no annual fee.
• Citi Platinum Select Master Card – This card comes with a zero-percent APR on balance transfers for 18 months and a zero-percent APR on purchases for 12 months. The APR on the Citi Platinum Select will be based on the prime rate. Just some of the goodies offered with this card include: discounts on gift cards; travel discounts; and merchandise discounts. There is no annual fee for this credit card.
• Bank of America Cash Rewards Visa Signature Card – The first perk offered to customers of this card is a $50 statement credit after spending $100 in retail purchases in the first 60 days the account is open. Other features include three-percent cash back on gas, grocery and drug store purchases for the first six months and one percent on all other purchases. In addition, customers of the Bank of America Cash Rewards Visa Signature Card enjoy a 25 percent bonus on all cash reward redemptions of $300 or more. This card also comes with a zero-percent introductory interest rate that lasts from seven to 10 billing cycles.

Common Terms for Balance Transfer Credit Cards

Introduction

Balance transfer credit cards are becoming increasingly popular in the credit card sector, as many individuals are searching for easy ways to consolidate their higher-interest credit cards into one, easy-to-manage credit with a lower interest rate.

However, balance transfer credit cards may be a bit more confusing to understand, based merely upon the fact that the entire balance transfer process will vary greatly from one credit card to the next. Because of the differences in terms and features between balance transfer credit cards, it is important to thoroughly read the cards’ terms and conditions.

And in order to understand the balance transfer credit cards’ terms and conditions, you must first have a good understanding of the terms commonly used:

• Annual Percentage Rate (APR) – The APR is essentially the cost of using the credit card; it is commonly expressed using a yearly interest rate. The credit card company simply charges a fraction of the annual rate (for every 30 days) when figuring out the finance charges on the outstanding balance. This calculation is often referred to as the “periodic rate.”
• Balance Transfer – Balance transfer is essentially the process of transferring debt from one credit card account to another.
• Balance Transfer Fees – Many balance transfers come with a fee that is charged by the credit card company for completing a balance transfer request. The balance transfer fee is either a flat fee or a percentage of the balances transferred.
• Credit Limit – A credit card’s credit limit is the maximum that you can borrow on a credit card.
• Default APR – The default APR on a credit card is an APR that is imposed by the credit card company when a customer fails to uphold his or her credit card agreement. Default APRs can be imposed on customers who fail to pay just one of their credit card payments on time.
• Introductory APR – Many balance transfer credit card offers come with an introductory APR, which is the APR that is charged during the introductory period. Once the introductory period has ended, the credit card company will change the APR.
• Purchase APR – The purchase APR will be the APR imposed for purchases; this will often differ from the introductory period for the balance transfer APR.

The Top Five Tips for Protecting yourself from Credit Card Thieves

Identity Theft

There are many sneaky routes credit card thieves are taking to steal our credit card numbers and go on a shopping spree. However, there are just as many credit card thieves that are merely looking for a good opportunity. In other words, let your guard down and you can be sure that a credit card thief will be waiting to pounce.

The fact of the matter is that most credit card thefts are crimes of opportunity. This means that, as a consumer, you need to do what you can to not give a credit card thief the opportunity to take your credit card or personal information and run.

Here’s what you need to know:

1. When shopping online, stick to trusted sites. If you are unsure about the online company or if you simply don’t know anything about them, it is probably a wise idea to steer clear of purchasing from them.
2. Speaking of online shopping, make sure you check and double-check your antivirus and firewall software, as well as the site’s security certification. Remember: all of these things need to be in place in order to be fully protected from online thieves.
3. If you do a lot of online shopping, consider devoting just one credit card to your online purchases, thereby making it easier to track your purchases and prevent unauthorized charges from slipping past you.
4. Keep your credit card in sight, especially in unknown areas or at unfamiliar retailers. Many thieves will use small devices, called skimmers, to catch your credit card information after you hand over your credit card for a purchase. Beware of a retailer who walks away with your credit card to complete your transaction.
5. Don’t just skim over your credit card bills. Instead, take the time to thoroughly check all charges. Many credit card thieves charge multiple, inexpensive items in an effort to go unnoticed, so make sure even the smallest charges on your credit card are accounted for.

American Credit Card Debt Decreases

News

According to Synovate, credit card spending is up again throughout the United States.

In fact, the latest data shows that credit card consumers spent an average of $1,559 in 2010; that’s an increase of 6 percent over 2009. These numbers are indicative of those in 2008 – the last time consumers spent before the recession took hold. In 2008, credit card consumers spent an average of $1,701 on their credit cards.

Credit Card Debt Falling to Lowest Level in Eight Years

A related study by TransUnion also has good news to report: credit card debt has fallen to its lowest level in eight years. The average consumer credit card debt has averaged $4,951 over the last three months, which is a decrease of nearly 13 percent from 2009’s average of $5,719. The last three months, in fact, were the first time the average consumer credit card debt dipped below $5,000 since the first quarter of 2002.

Many economists are quick to point out, however, that the decrease in credit card debt has little to do with consumers having more money; instead, it is likely that consumers are making much more of an effort to get out of the debt they are in because of high interest rates.

Rising Credit Card Interest Rates

According to Synovate, the average interest rate on a credit is now 14.7 percent, compared with 13.1 percent this time last year. The spike in interest rates is likely a result of the CARD Act that was recently enacted.

In short, it seems that credit card companies are getting their money one way or another. If they are limited or prevented from charging certain fees, they will certainly find a new way to bring in the all-might dollar; and that just may be in the form of higher interest rates.

In addition, many banks and credit card companies scrambled to raise interest rates before the CARD Act went into effect, given the strict regulations the government put on companies regarding notice of interest rates increases.

Another reason the data is coming back showing a decrease in credit card debt is also likely because of the many bankruptcies and other debt write-offs that have taken place over the last year. This type of debt reduction or elimination is not included in these studies.