Credit Card Quick

Which Credit Card Rewards Program is Right for You?

Credit Card Rewards

Today, the choices in credit card rewards programs is vast and diverse, and to some consumers, having so many choices can seem overwhelming. However, there is a way to make things a little easier on yourself when it comes to choosing a credit card rewards program. You don’t want to go with just any old program. If you do, you might not see benefits that really suit you.

Lifestyle and Needs

Consider your income, spending habits and the way you pay your bills, especially a credit card bill. If you can pay the balance off every month, avoiding all that added interest, you have more flexibility in your choice of cards. If you will be carrying a balance, keep in mind that you will be paying more in interest, and it can take time for rewards to really add up. Look for a card that will benefit you most. If you need to save for something, get discounts on particular items and services that you frequently utilize, need to travel often, or just want cash back rewards, there are cards out there for all of that.

Options

Once you have considered your options for rewards, you need to take a look at and compare several cards to see who will give you the best bang for your buck. Ideally, you want plenty of benefits as well as a low rate. Compare other fees as well, like the annual fee, cash advance, late fees and other charges and look at just how your awards accumulate and how long it will take to be able to benefit from those rewards. Choose the card with the best balance among all of these things.

Read the Tiny Print

Some rewards programs have yearly and lifetime limits. Some are simple and straightforward while others are quite complicated. Be sure you understand what you are getting into and try to find a rewards program that does not leave your head spinning in the end.

Once you have found the card that best suits you, apply for it. Once you get it and start to use it and pay on it regularly, you can watch those perks and rewards really start to work for you. If you use it just right, a credit card can bring you lots of freebies from clothing to vacations and more!

American Express: Should You Really Never Leave Home Without It?

Introduction

American Express, or AMEX, as some prefer to call  it, is among the top companies when it comes to credit cards. They offer a variety of card options, some of these even with low APRs and no annual fee. They have excellent rewards programs, including the SkyMiles frequent flier rewards. There’s no doubt about it that an AMEX card is a great asset for your wallet.

Things to Consider

While an American Express card can bring you a lot of benefits, it is not as widely accepted as Visa, MasterCard or even Discover. Sure, they have merchants worldwide, however, if you plan to use a credit card for shopping and other things, you might want to carry AMEX along side another card or two, in order to be prepared for anything. This is not advice meant to tell you to stock up on credit cards so you can spend, spend, spend; rather, it is a precaution to take for the world we live in.

Not every merchant can accept AMEX. Not every merchant accepts the other cards either. It is dependent on the businesses’ ability to afford separate payment system to process the different cards. Since this can become costly, really denting the profit margin, many simply go with one or two credit card types. Still, it does not mean you should not have an American Express card ready to use.

Some Great Benefits

Aside from the possibility of rewards, AMEX cards offer you great benefits as a customer. It is an excellent option for frequent travelers, as you can get the SkyMiles, if that is your reward of choice, for flying. They offer a way to obtain cash advances, as well as travelers cheques, insurance plans, financial services, and much more. It’s a great option for business credit as well. As an American Express customer, you have access to so many wonderful things. With great rates, exceptional customer services and all this other stuff, it’s definitely a credit card worth having.

Other than the fact that not all merchants accept it, the only other downfalls of AMEX are pretty much the same as most other cards: if you overspend, you’re going to pay a lot, and of course, you have got to have pretty good credit in the first place to even get you hands on one.

That said, if you can get you hand on one, AMEX is right: never leave home without it.

Understanding the Difference between a Credit Card and a Charge Card

Introduction

The terms “credit card” and “charge card” have often been used to describe the same thing but, in reality, they are two very different things.

A credit card is a standard card in which you can charge purchases and then pay them back over a period of time. A charge card, however, is card on which you can make purchases, but they must be paid off when your bill arrives.

Charge cards have been primarily issued by American Express, while other companies, such as MasterCard, Discover and Visa, have offered their customers credit cards.

The Benefits of a Charge Card

The premise behind an American Express card has always been liberal spending limits and no accrued interest rates, mainly because the card balance is paid in full each month. Most American Express credit cards have no set credit limit, but in order to qualify for an American Express credit card your credit history must be near flawless.

Annual Fee Amounts

There are also annual fees charged by American Express for its charge cards; they typically range between $25 to $500 a year, depending on the spending limit and benefits the card provides. The annual membership fee for owning an American Express charge card also comes with its share of perks, including a rewards program.

Should you fail to pay your balance on time, American Express charges either a flat fee or a percentage of the balance, depending on the card you are carrying. Most of the time, however, American Express affords its customers a liberal window in which to pay their balance; typically 40 to 50 days (compare that to 25 to 30 days for a standard credit card).

Flexible Payment Options

American Express also offers flexible payment options for its customers who use their cards to travel. American Express typically allows customers to carry a revolving balance of travel purchases, provided they exceed $200.

Credit Limits

American Express commonly keeps track of its customers buying habits and credit reports, and adjusts their credit limits to reflect this. Although American Express will not put a cap on your credit limit, they can refuse purchases if your balance becomes excessive. American Express, however, does not charge over-the-limit fees to its customers.

Comparing Credit Cards: What to Look for

Choosing Credit Card

So, you’re looking for a credit card? Do you know what to look for? Do you know that a good credit card is more than just a low interest rate?

If not, then you’re like most Americans that fail to look at all of the features of a credit card before choosing one. For example, if you pay your bills in full each month, a credit card with a low interest rate probably isn’t that important to you; perhaps instead you may want to look at rewards credit cards or those with no annual fee. In other words, a good credit card means different things to different people, depending on their financial needs and wants.

With that said, here is a list of items that you may want to consider when shopping for your next credit card:

• Length of APR – Is the APR simply an introductory rate and, if so, what is the interest rate once the introductory period has ended? Is the rate variable or fixed? If it is variable, how is the interest rate determined? Is it tied to the current prime rate or Treasury Index?
• APR and Purchases – Is the APR different for purchases and cash advances? Does the APR apply to balance transfers?
• Late Payment Penalties – Can the creditor raise your interest rate after just one late payment?
• Annual Fee – Does the credit card have an annual fee? If so, are the credit card’s perks and rewards worth the annual fee? Is the annual fee negotiable with the credit card company?
• Payment Terms – How is the minimum payment calculated? How many days from your statement date do you have to pay on the credit card before it is deemed late?
• Website Features – Does the card have an easy-to-navigate website? Can you make payments, view your balances and check recent purchases online?
• Finance Charges – How are the finance charges calculated? How does the credit card company determine your average daily balance? Is there a minimum finance charge imposed by the company?
• Credit Limit – What is the credit limit?
• Rewards, Incentives, Rebates – Does the card offer any rewards, incentives or rebates? Are these rewards worth paying more in finance charges? How are the rewards and incentives calculated and earned? Are there rewards bonuses for signing up?

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.

Even the Most Dutiful Credit Card Customers may soon be Hit with Unexpected Fees

News

You’ve always played by the rules. You dutifully pay on your credit card each and every month, and are proud to say you’ve never missed a payment or a due date.

So, why in the world have you just noticed that your credit card’s interest rate is set to go through the roof?

Unfortunately, many banks are not being particularly choosy with whom they raise rates and introduce fees. Take Bank of America, for example: this creditor has plans to implement an annual fee to millions of its customers, ranging anywhere from $29 to $99. Bank of America, which is calling this annual fee “experimental,” may affect any cardholder.

Citigroup has also gotten creative, as it has recently begun charging annual fees to those customers who don’t charge a specific amount onto their cards in a given year. Called inactivity fees, many creditors are requiring that their customers charge at least a specific amount during a specific time period, or be faced with fees.

If it seems a little more than odd to be punished for staying out of debt, then you’re not alone. Millions of Americans are scratching their heads and wondering: what exactly do I have to do to NOT incur fees and interest rate hikes on my credit card?

If you have a strong credit score, you will likely be in a good position to call the shots if you receive any new fees or charges on your credit card:

• Call the creditor and demand to have the fee waived. Argue that you have been a loyal and dependable customer.
• Consider paying the fee anyway. If you have a good credit card with a great, low interest rate, consider paying the fee, as the benefits that the low interest rate brings will certainly outweigh the inconvenience of the annual fee. Likewise, if you have a great rewards card that pays out in the form of cash or rewards, you may be cutting off your nose to spite your face if you cancel your card.
• If you are unhappy with your creditor and you have great credit, you should still have plenty of options regarding credit cards.

The Top Five Tips to Remember about your Student Credit Card

Choosing Credit Card

A student credit card is often a great way for a college-age student to begin working toward a positive credit score. However, it is also a time when many students mismanage their credit cards and end up not only putting themselves in debt, even before they graduate, but also ruining their credit score in the process.

It is therefore important to remember that your student credit card comes with its own set of perks, as well as responsibilities. The following, five tips will help guide you as you begin to build a healthy relationship with credit cards.

1. Look for a student credit card that offers no annual fee and competitive interest rates. It is a common misconception that you must pay high fees and interest rates with your first credit card. Although you may not be eligible for the lowest interest rates, as they are generally reserved for consumers with a long credit history, you can definitely shop around and find a competitive interest rate to suit your needs and budget.
2. Look for a student credit card that is designed specifically for college students, as these types of credit cards often offer incentives and rewards when the cardholder uses his/her credit in a responsible manner.
3. Look for a student credit card with rewards. For example, you can earn rewards for free gasoline and free airline tickets. Some creditors even offer rebates or cash back rewards for maintaining a good GPA!
4. Always consider your needs and wants before making a purchase. Although this can be a hard habit to get into, it is important to take a step back before making a purchase to ask yourself if your purchase is a need or a want. Often times, using this approach can stop you from overspending and getting yourself into a situation where you are faced with high debt and no way of paying it.
5. Be aware and educate yourself on the new credit card legislation that is set to begin in February 2010, as there are specific laws that will affect who – and who cannot – can get student credit cards.

Your First Credit Card: Terms you Need to Know

Choosing Credit Card

Congratulations! You’re on the road to financial independence and a great credit score with your first credit card!

But before you begin using your first credit card, you’ll need to first make sure you completely understand the terms and conditions of your credit card – and that means understanding the language that credit card companies use when describing these terms and conditions.

A solid understanding of your credit card’s terms and conditions will help you make the best decisions regarding your credit card so that you don’t end up mismanaging your credit and ultimately ruining your credit score.

Credit Card Terms to Know:

• Annual Fee – An annual fee is essentially a fee charged by the credit card company once a year to you for the privilege of using the credit card. Most annual fees range between $20 and $40, although there are plenty of credit card companies out there that charge no annual fee.
• Annual Percentage Rate (APR) – Ann annual percentage rate is the interest rate charged to make purchases. Always pay close attention to you card’s APR to make sure you are receiving the most competitive interest rate possible.
• Credit Line –A credit line is the maximum amount you may charge on your credit card. If you go over this limit, the credit card company will likely hit you with costly over-the-limit fees.
• Due Date – Your due date is the date that your credit card payment is due every month. If you don’t meet this due date, you will likely be charged a late payment fee and even a hike in your APR, so always pay attention to this date and make a point to get the payment in at least a week or so before the due date to avoid any problems.
• Card Member Agreement – A card member agreement details all of the card’s terms and conditions, all of which you agree to every time you make a purchase on your credit card. Never, ever make a credit card purchase if you don’t understand your card member agreement. Contact the credit card company if there is anything in the statement that is not clear.

What you don’t Know Might Hurt you: Important Questions to Ask before Signing up for a Credit Card

Choosing Credit Card

A credit card offer that seems too good to be true may be just that.

If you have a good credit scores you are likely inundated with a number of credit card offers during any given month. It therefore becomes increasingly difficult to sort through these offers and decide which one is right for you.

Although the process of weeding through your credit card offers can be arduous and even overwhelming, it is important to recognize that a great credit card offer may not be all that great once you begin to peel back the layers of the credit card’s terms and conditions.

It is therefore in your best interest to ask yourself the following questions before signing up for a credit card. If you can’t find the answers to your questions or if you have trouble deciphering the often hard-to-understand legalize used in the small print, then by all means contact one of the credit card’s representatives for answers. Most importantly, never sign up for a credit card if you don’t completely understand all of the card’s terms and conditions.

Questions you Need to Ask Yourself Before Signing up for a new Credit Card:

• If there is an introductory rate, how long does it last and what will my rate be once the introductory rate has ended?
• Are there any application or processing fees associated with signing up for this card?
• Is there an annual fee for this card?
• What are the late/over-the-limit fees?
• Is there a fee for balance transfers? What is the interest rate for balance transfers?
• Is the rate on this card fixed or variable? Under what circumstances will my variable rate change?
• Do I have the option of paying my bill online? What online services/features does this card offer?
• On what date will my statement be sent out each month? How many days do I have each month to pay my bill (i.e., what is the billing cycle)?
• What are the details of the card’s reward program?