Credit Card Quick

How to Stay out of the Credit Card Danger Zone

Introduction

It happens all the time: we think we have our credit card debt under control but then, quicker than we can imagine, it spirals out of control and we find ourselves in the same boat as many millions of other consumers who are having trouble paying their debt.

Although the only way to ensure you will never find yourself in credit card trouble is to not use credit cards, there are several other steps you can take to keep yourself out of the credit card danger zone:

• Always pay more than the minimum amount – There is one certain way to find yourself in over your head in credit card debt, and that is to pay just the minimum payment each month. There may be a time or occasion where finances prohibit you from paying more than the minimum payment on your credit card, and that’s okay. What is not okay is doing little more each month than paying the minimum payment. It is vital to always pay as much as your budget allows each month as to avoid mounting interest and never-decreasing balances. It may not seem like much of a difference to put an extra $20 or $30 on your credit card balance each month, but it allows you to pay off your card in a much shorter amount of time.
• Stay away (far away) from cash advances – Cash advances should always be used for emergency purposes only, such as cash flow difficulties when traveling, for example. This is because the general rules of credit cards are out the window, so to speak, when it comes to cash advances. From higher interest rate to cash advance fees, this type of credit card feature should only be used as a last resort. If you are using cash advances to cover living expenses and to make up for a lack of cash on any given month, you may very well find yourself entering the credit card danger zone.
• Don’t use your credit card to pay other bills – If you find yourself using your credit card to pay your electric bill or cover your monthly grocery bill, your credit card balance can get out of control in a short amount of time. Avoid this by paying close attention to your spending habits and even keeping your credit card out of your wallet to avoid overspending.

Your Guide to Finding a Good Credit Card Match

Choosing Credit Card

The credit card industry has done a good job of providing a number of credit cards to consumers, from secured credit cards to those with low, introductory rates and rewards programs. It is important to realize, though, that not every credit card will be a good match for you and your financial situation.

The two, main factors to consider when shopping for a credit card include: identifying and understanding your personal spending habits and your financial history, as they will likely determine which type of credit card is right for you.

Here are our recommendations for choosing a credit card that’s a good match for you:

• Low credit score – If you have a credit score below 650, you will likely want to take the time to build up your credit score before applying for a major credit card. If you apply for a major credit card with a low credit score you will either not be approved or you will end up with a fairly high interest rate. With that said, the best bet for improving your credit score is to apply for a department store or gas credit card. Apply at a retailer you frequent as to take advantage of coupons and special deals for cardholders, but remember to pay it off each month as to establish a strong credit history and to avoid paying interest.
• Really low credit score – If your credit score is in the tank because of major credit indiscretions in the past, it is best to start with a secured credit card. A secured credit card is essentially a credit card that requires a down payment for collateral. After making regular payments for a set period of time (usually a year), you can likely then transfer to an unsecured credit card.
• Paying off debt – If you want to consolidate debt and pay it off, you are likely best suited for a credit card that offers a zero-percent introductory offer and an attractive balance transfer option.
• Frequent spender – If you use your credit card frequently throughout month, but also pay off the balance each month, you will likely benefit from the perks of a rewards credit card. Take advantage of the rewards offered by the credit card, but make sure to pay off your balance each month as to not negate any rewards benefits.

Creditors Set their Sights on Small Businesses Once Again

News

As a small business owner, you may have found the process of obtaining credit over the last few years quite difficult. However, as lenders begin to, once again, lend to consumers, small business owners may also be able to secure a business credit card without too much hassle.

The Past Haunts Small Businesses

In the past, many creditors were reluctant to offer credit to small businesses because many businesses were unable to pay on their balances because of the lackluster economy. As a result, the number of small businesses that rely on credit cards has decreased dramatically.

In fact, according to the National Small Business Administration, nearly 50 percent of all small businesses in the past relied on credit cards. However, over the past year, that number has fallen to just 30 percent, and credit cards are now ranked in third place when it comes to small businesses seeking financing.

Are Small Businesses Ready to Use Credit Cards Again?

Because of the events of the past, couple years and the decreasing number of small business credit card holders, creditors are once again wooing these individuals. They hope that small businesses, now that the economy is improving, will once again return to credit cards as a source of financing. But have small businesses given up on using credit cards?

It is no secret that, in addition to creditors pulling back the number of credit card offers to small businesses, many small businesses cut their ties with credit cards because they weren’t afforded the protection offered to consumers under the CARD Act.

Another factor that is making small businesses wary about applying for a business credit card is that fact that business credit card rates rose faster than any other type of credit card in 2010; meaning that small businesses were being socked for very high interest rates while consumers enjoyed much lower interest rates. In addition, businesses are also not exempt from penalty rates. In other words, one missed payment by a small business could spell catastrophe in terms of their credit card rates.

The jury is still out on whether small businesses will return to credit cards, so creditors must do everything in their power to woo their customers back.

Is a Debt Consolidation Loan Right for your Credit Card Maladies?

Credit Card Debt

With unemployment still hovering around the 10 percent mark, the demand for debt consolidation services continues to rise. Many individuals across the country are turning to debt consolidation services as a way to better manage their finances and deal with unmanageable payments while they are unemployed.

Debt consolidation companies offer consumers the chance to take control of their finances and control their debt, but not many individuals understand exactly how the process works.

What is a debt consolidation company?

A debt consolidation company works to negotiate unsecured debt with creditors. A debt consolidation company is designed to work on the consumer’s behalf to negotiate better rates, terms and conditions with their current creditors, including personal loans, credit cards and car notes, just to name a few. The debt consolidation company negotiates lower rates with their client’s creditors, and rolls all debt into one, manageable loan. The debt consolidation company offers the loan. In other words, the client will pay their monthly payment to the debt consolidation company, who will then pay the creditors.

What are the advantages of a debt consolidation company?

The upside to using a debt consolidation company is that you no longer have to worry about paying multiple bills to multiple creditors each month. Instead, you can pay one bill to the debt consolidation company instead of dealing with different companies. In addition, the debt consolidation company should be able to negotiate better terms with your creditors, thereby providing you with a more manageable payment each month.

What are the disadvantages of a debt consolidation company?

Using the services of a debt consolidation company will likely hurt your credit score. However, many of the individuals who seek debt consolidation are already in a financial bind and have likely already taken a hit on their credit score. Also, a debt consolidation loan may come with a fairly high interest rate to account for their services. In some cases, the high interest paid on a debt consolidation loan will end up costing you more than if you simply paid off your bills on your own.  These disadvantages, however, are often welcomed by consumers who are anxious to put an end to their debt problems.

A Great Credit Score is in your Future!

Credit Score

If you haven’t had a chance yet to establish a strong credit score, you may be wondering how to go about doing so. Luckily, there are a number of ways you can begin building your credit score so you enjoy the many benefits of a strong FICO score.

Here’s what you need to do to begin your journey to a strong credit score:

• Order a copy of your credit report from all three major credit reporting agencies. Although you may think your credit report will be virtually blank, mistakes do happen and it’s possible that there are errors on your credit report. You are entitled to a free copy of your credit report from the credit reporting agencies once a year so take advantage of this opportunity and order them today!
• Once you have checked your credit report, you must open a checking or savings account. Lenders of any kind like to see an active bank account, as it shows financial stability. Plus, it provides you with a means to pay on monthly bills and debts.
• Understand the factors that credit reporting agencies take into consideration when determining your credit score. Understanding that your credit score is made up of a number of factors, including payment history, payments and the ratio of debt to income, will better help you build your credit score.
• Start with a secured credit card to begin building your credit history. Secured credit cards are essentially credit cards that are secured with a cash deposit. Once you have established a history of regular payments with a secured credit card you can likely apply for – and be approved for – an unsecured credit card.
• Don’t think just in terms of credit cards when considering your credit score. In fact, lenders and credit reporting agencies look at your payment history on other types of monthly bills, including student loans and utilities, just to name a few. In other words, be responsible when paying any type of monthly bill or debt, as it could reflect poorly on your credit score if you don’t.

Your Guide to Negotiating your Way to Credit Card Savings

Introduction

Do you feel “stuck” with a particular credit card? Is the thought of changing credit cards and applying for new credit cards send you into fits of anxiety? Do you love the rewards on your credit card, but the interest rate is just too high for your liking?

If you answered “yes” to any of the above questions, then you need to consider the many ways you can save on the credit card you already have, simply be negotiating with your credit card company.

Before you can begin negotiating with your credit card company, you need to understand that, in order to have any leverage, you must have a good history with your credit card company and a great credit score. Without these things, you may not have the leverage needed to negotiate better terms.

Here’s what you may be able to negotiate on your current credit card account:

• A credit card rate hike – Thanks to the current credit card legislation, consumers are able to say no to rate hikes. Once you say no to a rate hike, you either have the option of paying off your debt with your current interest rate and cancelling the card, or negotiating a better rate with your credit card company. If you have a good credit history with the credit card company, you may likely have some leverage when it comes to keeping your credit card interest rate low. Beware, though, as you have only between 30 and 60 days to let the creditor know you are disputing the credit card rate hike.
• Other fees – As a good credit card customer, you may be able to negotiate a number of fees with your credit card company, such as annual fees, balance transfer fees or even late charge fees. For example, if your credit card company charges an annual fee and you ask them to drop the fee, they will likely do so because you have a proven track record of being a great credit card customer.
• A lower APR – In addition to avoiding rate hikes, you may also be able to lower your current interest rate. Take a look at some of the current credit card interest rates before you contact the credit card company. Then contact the company and let them know that you are requesting a lower rate based on some of the current interest rates. If you don’t have any luck, you may also want to threaten to cancel the card unless the rate is lowered, as many credit card companies won’t bite until you pull out this strategy.

Why you still need a Credit Card in your Back Pocket

Introduction

All the trouble and scrutiny surrounding the credit card industry over the last few years has led many people to wonder if having credit cards is really beneficial for them anymore. Although it may, at times, seem easier to just abandon credit cards so you no longer have to deal with all the changes constantly bombarding the industry and the customers, having at least one credit card in your back pocket really does still make sense.

This is because there are times when a credit card is simply unmatched in terms of convenience and protection. What’s more, there are occasions when only a credit card will do. Here are just a few of the reasons why credit cards still play an important role for many of today’s consumers:

• Credit cards are the obvious answer to online orders and hotel and plane reservations. Although, in some instances, there are exceptions to this rule, in general you must have a credit card do place online orders and to make reservations, such as hotel, car and plane reservations. Even watching a movie through one of the online movie services or renting a movie from one of those boxes outside of your local grocery store now requires the use of a credit card.
• Credit cards make paying at the gas station an easy process. If the thought of walking into a gas station to pay cash for your gas seems like a waste of time, then you need to consider a credit card to facilitate the process of paying for your gas. A credit card allows you to gas up and go in minutes, compared to the added time of paying cash for your gas purchase.
• Credit cards help build your credit score, which can help you tremendously in the long run. If you think ditching credit cards in favor of cash is the best decision for you, consider that credit cards are almost always the number-one factor in credit scores. The frequent use of a credit card, and the responsible payoff of any money spent on the card, is a great way to see your credit score rise so that you have the luxury of getting the lowest rates on everything from personal loans to car loans and mortgages.

Where to Look for the Best Credit Card Offers

Choosing Credit Card

It seems like everyone’s telling you about the great credit card offers available now, as creditors are loosening up the reins a bit and are, once again, offering attractive credit card deals for individuals with good credit. If you want to snag one of these great new credit card offers (and who doesn’t?), it pays to know where to look:

• Your current credit card company – Many times, if you have proven yourself to be a good credit card customer, you can negotiate better terms on your current credit card with your credit card company. In fact, most of the time it is best to be able to negotiate more attractive terms for an existing credit card account, as it saves you the time and hassle of opening up a new account. Check the current interest rates on some of the newer card offers (you can easily find this information online),  and then go to your credit card company and either ask for a lower rate or negotiate other terms, such as a balance transfer offer.
• Your bank – Many times, your local bank may be able to offer you a great deal on a new credit card. In fact, you may be more likely to snag a good offer because you are a current bank account holder. If you have a solid history with your bank and you want to take advantage of some of the low rates and competitive terms of today, give your bank a call.
• Your mailbox – Credit card companies are sending out more credit card offers than they have in almost two years. Just a quick peek inside your mailbox and it’s easy to see that credit card companies are becoming more aggressive in their quest for new credit card customers.  A great way to get in on some of the great terms and conditions of today’s credit card is to simply set aside the credit card offers you receive on any given week and look through them to determine which card best suits your financial situation and budget.

Report Shows American Still Owe Big on Credit Cards

News

We’ve all heard about the trend taking place across America: Americans are using credit cards less and cash more often. However, even as Americans continue to pay off their debt and use cash more often, Equifax found, in a recent report, that many households in the United States are still carrying a burden of debt.

In fact, Equifax found that many Americans pay as much as 17 percent of their current income toward credit cards. The report also found that the major, metropolitan areas of the U.S. are the hardest hit, in terms of credit card debt, and residents of Florida, North Carolina, Ohio, Texas, Washington and California are having the most trouble with their credit card debt. Here is the amount of credit card debt the top metropolitan areas of the country are dealing with:

• California: $90,566,978,302
• Texas: $48,833,824,544
• Florida: $47,568,265,541
• Ohio: $28,985,502,668
• North Carolina: $22,386,064,118
• Washington: $18,288,819,367

If you are one of the millions of Americans struggling to pay off credit card debt, there are several things you can do today to begin cutting that debt down:

• Make a budget and figure out why you are spending on credit cards. Often times, overspending on credit cards is due to little more than not keeping a close eye on our monthly spending. Because of this, taking the time to sit down and make a reasonable budget – and stick to it! – is vital for conquering the credit card beast.
• If you are having difficulty making ends meet and you are worried that you will fall behind (or are already falling behind), it may be time to contact a non-profit credit counseling agency who can help negotiate better terms with your creditors and help you pay off debts without filing for bankruptcy.
• Make sacrifices to cut down on your debt. Although making large changes to your lifestyle may be difficult to do, the pride of paying off your debts and living debt-free will most certainly make up for your reservations about moving to a one-car family or getting rid of the cable television.

Incentives your Credit Card Company may be using to get your Attention

Credit Card Rewards

The credit card industry is gradually going through a number of changes as the economy begins to improve. In particular, credit card companies are extending credit to consumers with strong credit score and are rolling out the red carpet in terms of attractive offers. Here are some of the best incentives being offered to credit card consumers:

• Zero Percent Introductory Rates – The zero percent introductory rates were a thing of the past couple years, and many analysts these types of introductory offers would never make a comeback. However, it looks as if they were wrong, as credit card companies, over the last, few months, have really stepped up to the plate in terms of offering great zero-percent introductory rates and balance transfer rates. Before applying for one of these introductory offers, however, carefully read the terms and conditions associated with the zero percent introductory rate so you can be sure you are getting an attractive deal on balance transfer fees.
• Cash-Back Rewards – Cash back rewards are, perhaps, the most popular type of reward offered by credit card companies. In fact, it is quite common to find credit cards with very attractive cash back rewards features. When searching for a cash back rewards credit card, search for the card that best fits your spending style, and pay close attention to rolling rewards so you can maximize your cash back benefits.
• Travel Rewards – If you are a frequent traveler, it may be quite advantageous for you to apply for a travel rewards credit card. From airline rewards to gas perks and hotel rewards, a travel rewards credit card is ideal for business travelers or for those individuals who simply travel often on pleasure. Credit card companies are offering plenty of attractive travel rewards, so take the time to examine which one best fit your travel needs.
• Student Credit Cards – Credit card companies are offering up plenty of easy repayment terms for students, so using a student credit card to establish credit and to begin building your credit history is often a good move to make. Credit card companies, in response to scrutiny and legislation from the government, have included a number of features that help keep students on track in terms of their finances and budget.