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How to Make a Store Credit Card Work for You

Choosing Credit Card

It’s no secret that store credit cards cost consumers quite a bit of money every year. Store credit cards are quite easy to get, and are quite easy to use, thereby leaving many consumers in deep when it comes to exorbitant interest rates and mounting balances.

Although it always pays to thoroughly examine the terms and conditions of a store credit card, including the interest rate and related fees, there are ways to make a store credit card work for you.

In other words, although your favorite store credit card boasts an interest rate high enough to make you break out into a cold sweat, you may actually be able to beat the store at its own game. Here’s how:

• Pay off your balance each and every month, without fail. Using a store credit card can be quite convenient – that is, until you begin paying steep finance charges on your balance. You can avoid paying any fees or finance charges by simply paying off your store credit card before the due date each month.
• Take advantage of the store card’s initial discount. If the store offers you an attractive discount just by opening the account, by all means take advantage of it. However, once again, it is important to pay off your balance when the bill arrives. After all, paying interest on your purchase will likely negate any benefits you received from your initial discount.
• Take advantage of the member benefits of the card. Carefully read any correspondence you receive from your store so you know when to shop. Most store credit cards come with special discounts, coupons and shopping days for card members, so remember to pay attention to these offers so you can save the most money.
• Be aware of your shopping habits. If you tend to spend more because you have a store credit card in your back pocket, it may make more sense to pass on using a store credit card. It may also pay to shop first without your credit card and then return with your credit card once you have given some thought to what you need and what you can afford.

When to Choose a Credit Card over a Debit Card

Choosing Credit Card

Debit cards are ideal, as they allow individuals to stay within their budget and spend only what they have. However, there are time when using a debit card is not a good option. Credit cards boast a number of advantages over debit cards, although they can be used in generally the same way. In other words, don’t let the debit cards fool you: they simply can’t offer the protections afforded by credit cards.

Here are times when it is best to choose a credit card over a debit card:

• Shopping online – Because debit cards are linked directly to your bank account, you may leave your finances vulnerable should an identity thief steal your card’s numbers. Although there are some protections afforded to debit card customers in the case of identity theft, the protections afforded to credit card customers are more comprehensive. In addition, although you may be protected from fraudulent use of your debit card, having your bank account drained may cause additional problems, like bouncing checks or not having enough money to cover living expenses.
• Expensive purchases – Any expensive purchase is best bought using a credit card, as it will likely offer you dispute rights if something goes awry with the product or service. Also, many credit cards feature extended warranties, thereby eliminating the need to purchase them from the retailer.
• Deposits – If you must use a credit card to hold anything from a hotel stay to a car, the company will likely take a security deposit against your debit card. In other words, if you reserve a hotel they may charge you a $200 security deposit that is returned after your stay; however, if you use a debit card to reserve the hotel room, you won’t have access to that $200 until your stay had ended.
• Restaurants – Using a debit card at a restaurant may set you up for loss. Anytime someone needs to walk away from you, out of your sight, to make a charge purchase, there is a chance of theft. With this in mind, it is best to use a credit card when you dine out, thereby better protecting yourself from the ill effects of identity theft.

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.

Is a Business Credit Card Right for you?

Choosing Credit Card

Most small business owners agree that having access to credit is essential for the smooth operation of their business. Credit cards can play a very important role when it comes to managing a small business, and can provide business owners with the resources necessary to keep the business running when cash is tight.

Small Business Card vs. Consumer Credit Card

However, it is important for business owners to understand that small business credit cards were not included in the credit CARD Act; this means that, as a small business owner, you may not have the protection that has been granted to consumer credit customers.

In other words, you may be personally responsible for any debt incurred through your business, even though it is for business purposes. As such, it may make more sense to simply carry a personal credit card for business purchases that you may not be able to pay back immediately. As a consumer, you will have protection through the CARD Act; as a business owner with a business card you will not.

Some of the protection offered for consumer credit cards under the CARD Act include: the credit card company cannot increase the interest rate on existing balances and cannot activate a penalty APR unless the credit card customer is at least 60 days delinquent. But many of the credit card companies, such as Capital One, JP Morgan Chase and Bank of America, need not adhere to these guidelines when it comes to business credit cards.

Business Credit Card Advantages

With that in mind, there are many advantages to owning a business credit card if you are a small business owner. For example, you can set individual credit limits for key employees and more easily track expenses In addition, business credit cards often come with higher credit limits than consumer credit cards and are much easier to handle when multiple people are using the same account.

In the end, your decision to use either a consumer credit card or a business credit card will depend on your business’ financial needs, so weigh your options

Visa or MasterCard? What to Choose

Choosing Credit Card

Visa and MasterCard are the top two companies leading the credit card industry. However, since the credit cards themselves are issued by banks and other financial groups, some consumers may find themselves wondering which card to choose. Is Visa a better choice than MasterCard or vice versa?

In a word, no. Visa and MasterCard are quite similar in the products they offer, customer benefits, and acceptance. Pricing may vary somewhat, but terms and conditions are generally a mix between general Visa and MasterCard rules and those of the issuing institution.

Worldwide Acceptance

Visa and MasterCard are both more widely accepted around the world than any other credit card type. While acceptance may be a bit different in some countries, some limited to tourist-oriented places and others with broad acceptance, you can still count on the benefit of cash advances at ATMs around the world. In foreign countries, as with any kind of currency exchange, there will be a foreign exchange transaction fee. MasterCard does have a few more ATM locations, while Visa has slightly more merchants.

It’s Not The Logo That Matters

Some people do prefer Visa over MasterCard, while others might see it the other way around. Really, it is a matter of personal preference. For those who prefer having two credit cards to rely on, a good bet is to have one Visa and one MasterCard. That way, should you encounter the situation where only one is accepted, you are well prepared.

Visa and MasterCard are both reputable companies and offer a wide array of products to suit the financial needs of their customers. However, you don’t want to make the mistake of thinking that because your card has either logo that it was actually issued to you directly from Visa or MasterCard. Both companies are a simply a form of payment method, offering accounts to merchants. They make their money through transaction fees charged to the merchants for using their method process payments. Your card itself is issued to you by a financial company (as briefly mentioned earlier) who has an account with Visa and/or MasterCard for payment processing.

It’s  All About You

So, you see, it really does not matter which logo is on your credit card. If your personal preference leans toward one or the other, then you should go with that. It’s more about the terms, conditions and benefits of the credit card being offered by your financial institution and the ability of the product to meet your needs.

Which Credit Card is Right for You?

Choosing Credit Card

Once upon a time, credit cards were simple. A plastic card that allowed you to “charge it,” pay off the debt later with a few added fees, and that was that. Our fast paced world thrives on technology and options. Many cards now come with features and perks that make them more enticing to the consumer. Credit cards have become a competitive market where the idea is to gain and keep the customer through great rates, reward programs and more. However, it’s still up to the consumer to decide which credit card fits both their needs and wants. So, exactly what kind of options do you have?

There is, of course, the most common option of the standard credit card. These are unsecured cards offered by most any bank or financial company that issues credit cards. The APR on these varies from issuer to issuer. Standard credit cards include balance transfer cards, which allow the cardholder to transfer the balance owed on a high interest card onto a lower interest card. Another type of standard credit card is the low-interest rate card. This might be a card that offers a lower introductory rate and then increase after a period of time or a low fixed-rate APR.

Credit Cards with Incentives

Many credit cards these days offer perks and rewards just for using them. If you frequently use your credit card, this might be the best option for you. By simply using your card for purchases, travel, etc. and keeping your balance paid,  you can earn rewards, points and even cash to use for future purchases and other things. Talk about customer appreciation! It’s really a nice perk for credit card holders.

There are several different kinds of rewards programs, so you will want to explore the options and decide which suits you most. Cash Back credit cards reward you by allowing you to earn cash on eligible purchases. Everyone loves cash, so this is a popular incentive. These cards only offer a small percentage back on purchases and may take time to add up. They also typically have an annual fee of $50 to $100. However, if your faithful about paying your balance and using your card, it can be well worth it. Some credit card companies are also offering a similar incentive with their savings account program. They will deposit so much per transaction into a high yield savings account.

Points cards offer the cardholder a chance to earn points on their purchases. After accumulating so many points, they can be redeemed for specific items. The promotions and conditions are subject to change, so be sure to stay up-to-date on the fine print. some of these cards will have an annual fee, while others do not. There are also specific points, rebate and rewards programs for travel such as airfare (frequent flier programs) and hotels, retailers, and gasoline purchases. There are other points programs out there, but these are among the most common and most popular offerings.

Credit Cards To Repair Your Credit?

Yes, there are also credit cards made for those with bad credit and in need of credit repair. Some of the best options among these are secured credit cards, which usually require an application fee, an initial deposit equal to or greater than the credit on the card, and a low credit limit. These will allow you to use the card and make payments, helping to repair your credit rating. Another good option is a pre-paid credit card. It’s a lot like a gift card or a debit card, however, you can use it anywhere and don;t run the risk of going over your limit or going into debt because you load the money onto it and you control the spending.

There are also credit cards geared toward businesses and students, so if you fit the bill, you might look into these options.

A credit card can be a great asset to have, however, terms, conditions and rates will vary between card companies, so be sure to read the fine print so you will know what you’re getting and what to expect.

Finding the Best Credit Card Offer: do you Know What you’re Looking for?

Choosing Credit Card

Even with the unsteady state of the credit card industry, there are plenty of credit card companies and credit cards from which to choose. For someone looking to get a new credit card, the process of finding the card that’s right for them can be downright confusing.

Given all of the credit card options available, how can you be sure you’re getting best deal and the most competitive rates?

Well, the first thing you can do is use the Internet to research and compare the top credit cards by each credit card company. However, there are several other factors that you may want to look at next time you are considering applying for a new credit card:

• Read the fine print when it comes to cards boasting a zero percent interest rate. More importantly, find out whether this zero percent rate is fixed or variable, and whether it is simply a promotional or “teaser” rate that will last just a few months. Many consumers fall into the zero-percent-interest trap, only to be stuck with a high interest rate once the promotional rate expires.
• Look further than just the interest rate. A credit card company could offer you a fantastic interest rate, and then sock you with outrageous fees. Check to see if the credit card company charges an annual fee for the card; also, check the card’s fees and penalties for cash advances, late payments and over-the-limit fees.
• Make sure the credit card you choose has a grace period. Some credit card companies charge interest from the moment you make a purchase, while others offer consumers a grace period during which they can pay off the card with no interest charges.
• Look beyond rewards and perks. Some consumers are drawn into using a credit card simply because it offers them some type of reward program or perks for using the card. However, what many consumers fail to realize is that the rewards they think they are earning are merely being trumped by high interest rates or other fees and charges. In other words, make sure you are not paying out more simply to earn rewards points.