Credit Card Quick

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.

Speeding up Approvals with Online Credit Card Applications

Choosing Credit Card

Let’s face it: for most of us, time is not on our side. We spend our time desperately trying to shove everything we need to accomplish into one day, and then we get up the next day and do it all over again.

For many consumers, the only time to tend to personal business is after hours, in front of their computer. Credit card companies realize the importance of providing busy consumers with simple solutions for managing their finances, and thereby often offer consumers the ability to apply for a credit online, through the completion of an easy, online application.

Online credit card applications eliminate time on the phone, answering questions to a credit card representative, and they eliminate the need to fill out lengthy credit card applications.

Benefits of Online Credit Card Applications

Instead, they allow consumers to research and apply for a credit card, any time of the day or night, at their convenience. We all know about the practicality and convenience of the Internet, so isn’t it about time that you put the power of the Internet to work for you?

An easy way to begin your search for a credit card is to simply read the latest information about credit cards. You can compare credit cards online by their interest rates and rewards programs, for example.

To apply for a credit card online, simply assemble all necessary information in front of you before starting the online application.

Once you’ve found a credit card that suits your needs and offers competitive rates and fees, you can begin the process by checking to make sure the web site is secure. Look for a “locked” padlock icon on the top of your browser and look to make sure the credit card application web page address starts with
“https.”

Once you have completed the online credit card application and submitted it to the credit card company, you can expect to receive an answer in as little as a few minutes. Once approved, the credit card company will then send you an approval letter, via email. You can also expect to receive your new credit card in a matter of days.

The Progress Card by Capital One: Helping Consumers Rebuild their Credit

Credit Card Debt

Although there are many credit card companies that are trying to distance themselves from those consumers with bad credit, there is one card that is specifically designed for credit card customers that have a less-then-stellar credit rating.

Capital One recently introduced the Progress Card, which will be available around Christmas. This card features no interest rate and incentives for paying on time.

Like any other card designed for individuals with bad credit, the interest rate is quite shocking. In fact, it may start as high as 34.9 percent. However, most individuals have few options when it comes to rebuilding their credit or being approved for a credit card.

Incentives to do Better

It is important to note that, although the Progress Card has a super-high interest rate, credit card customers can work toward lowering their interest rate, simply by paying their bills on time and paying more than the minimum payment.

For example, if you pay your bills on time for six months, and pay at least the minimum payment during that time, you will be eligible to have the interest rate reduced by five percent. As you continue to pay your minimum payment, on time, you can expect to see a five percent increase every six months. Pay on time for 18 months and that 34.9 percent interest rate is now down to 19.9 percent.

Capital One may also offer consumers an increase in their credit limit by their fourth statement if they display responsible card usage.

Working Towards a Better Credit Rating

The Progress Card, true to its name, enables individuals with bad credit to make progress and work toward a better credit rating. This card provides consumers with the tool necessary to begin building a positive credit history and credit rating.

For many individuals that have been adversely affected by the economy, the credit card crisis and the near-collapse of the housing market, this card could have not come at a better time.

Perhaps more credit card companies can take a lesson from Capital One and discover that many otherwise-responsible consumers need a second chance at rebuilding their credit and rebuilding their lives.

Examining the Newest Credit Card Legislation Set to go into Effect

News

Starting next week, credit card companies will be forced to make some changes that will affect all of us who carry credit cards.

New Interest Rate/Grace Period Legislation

One of the most prominent features of this area of the new credit card legislation is that creditors must provide their customers with at least 45 days’ notice before they can raise their interest rates or make other changes to their card’s terms and agreements.

This 45-day notice will enable cardholders to decline this rate increase. Although the card account will be closed, the cardholder will have the option of paying off the balance of their credit card at the original rate.

Another feature of the new credit card legislation due to go into effect next week is that creditors must provide cardholders with at least 21 days to pay their credit card bill. As many of us will attest to, many creditors have shortened this window substantially over the last, few years in an attempt to collect their money.

The new credit card legislation, which was enacted in May by President Obama, will not officially go into effect until February 2010, with the exception of the above mentioned laws.

The Effects of the Credit Card Legislation

As a credit card holder, you have likely seen creditors raising interest rates and hiking minimum payments in anticipation of this new law. Another result of this law, says many financial analysts, is that creditors are pulling back consumers’ credit limits and canceling credit cards on unsuspecting consumers.

At this point, it appears to be a bit of a tug-of-war going on between the government and creditors. Many creditors, who anticipate catastrophic losses as a result of the credit card legislation, are fighting back by raising rates and payments before the law goes into effect.

Many financial analysts agree that the new credit card legislation essentially gives creditors an eight-month loophole during which time they can make the necessary changes to counter the changes mandated by the government.

It is more important than ever to remain educated about your credit card accounts, and to carefully read all material that you receive. And, as always, if you don’t agree with your creditor’s new terms and conditions, you have the right to cancel the card.