Credit Card Quick

How to Make a Balance Transfer Work for You

Introduction

A balance transfer offer from your credit card may be a great financial tool for you. However, just like any other financial tool, you need to understand how balance transfer offers work in order to make the offer work best for you and your personal financial situation.

There are two, major factors to consider when searching for a credit card balance transfer offer: the balance transfer fees and the APR. In short, never accept a balance transfer offer from your credit card unless you are fully aware of all the fees and finance charges that are attached to the offer.

What to look for when using a credit card balance transfer offer:

• Introductory APR – The first thing you will want to note is the introductory APR being offered by the credit card company. Most balance transfer offers come with low, introductory APRs, but it doesn’t stop there. It is vital that you pay close attention to the length of the introductory APR, as credit card companies vary widely when it comes to this. It is quite common to find introductory APRs for as little as six months and for as long as 18 months.
• The default APR – Once the introductory period has ended, you will begin paying interest on your transferred balances. Many credit card companies lure in customers with attractive balance transfer offers, but end up hitting them with high APRs once the introductory period has ended. If you think for one minute that you may be unable to pay off the transferred balances during the card’s introductory period then you must pay close attention to the card’s default APR.
• Balance transfer fees – Once again, the credit card company may be offering a very attractive introductory balance transfer offer, but the details of the offer are often what matter most. Enter the balance transfer fee, or the fee you must pay to transfer your balances. This fee, which is usually a percentage of your transferred balances, may be as low as three percent or as high as five percent. For example, if you transfer a $5,000 balance and your balance transfer fee is five percent, you will be charged a $250 balance transfer fee by the credit card company.

Smart Credit Card Spending: your Guide to Responsible Credit Card Use

Introduction

Credit card spending in the United States has changed significantly over the last couple years. In particular, credit card consumers have developed a whole new appreciation for the use of credit cards and how they can both positively and negatively affect their credit.

This new level of thinking when it comes to credit card spending has come at a high cost: credit card companies are now incredibly picky about who they will lend credit to, and unless you have superior credit, you will likely be paying far more in interest than you did just a few years ago.

However, credit cards still remain a highly attractive financial tool for most American consumers; we just all have to make a concerted effort to establish a respect and understanding of them. Here’s how:

• Pay close attention to the credit card’s terms and conditions – Don’t ignore the APR, the credit limit or the grace period on the card, as all of these terms could have an impact on your credit and your credit card balance. You owe it yourself, your finances and your credit to remain an educated credit card consumer because, in the end, only you are responsible for your credit score and your credit card balances.
• Become a smart spender – Credit card debt is a sneaky little bugger, as it can often creep up on us when we are least expecting it. Decide what type of spender you are, and remove your credit cards from your wallet if impulse spending is your problem. Stop and ask yourself if you really need your purchase each and every time you charge on your credit card; this simple step can prevent your credit card balances from ballooning out of control.
• Choose the credit card that fits your lifestyle and your budget – Even with credit card industry lending standards still tight, you can snag a great credit card if your credit score is strong. However, it is important to assess your spending habits, your budget and your needs when deciding which type of credit card is right for you. Not all credit cards are created equal, so take the time to choose the card that will work best for you.

The Differences between Secured and Unsecured Credit Cards

Choosing Credit Card

Most consumers find that credit cards are not only a practical financial tool, but a necessary one. Even individuals who don’t use credit cards on a regular basis are all too aware that credit cards are important for doing everything from renting a car to reserving a hotel room.

For many individuals, the question of secured and unsecured credit cards is often raised. In particular, many individuals are confused about the differences between a secured and unsecured credit card, and which one is right for them.

With today’s changes in credit card terms and conditions, and with the recent credit card legislation currently enacted by Congress, many individuals are downright confused when it comes to credit cards. We all want the advantages of credit cards, but many of us don’t want the hassles associated with them. There is a way to make credit cards work for you; you just must educate yourself on both the advantages and disadvantages of each so that you can make the right financial decision.

There are benefits to both secured and unsecured credit cards, and there are also challenges associated with each of them.

Secured Credit Cards

Advantages

• Easy to Obtain
• Typically Requires no Credit Check – Ideal for Individuals with Poor Credit, No Credit or those who have Filed for Bankruptcy
• Ideal for Individuals who may have difficulty Managing their Debt
• Keeps Spending in Check
• Ideal for Individuals who are Looking to Build or Rebuild their Credit

Disadvantages

• Requires a Cash Security
• Typically has a Low Credit Limit
• Often comes with High interest Rates
• Often comes with High Fees and Strict Terms and Conditions

Unsecured Credit Cards

Advantages

• Gives the spender great buying power
• Often comes with Low Interest Rates and other Advantageous Reward Programs
• May be an Ideal way to Borrow Large Sums of Money
• May act as a Personal Loan
• May be Ideal for Consolidating Higher Interest Debt

Disadvantages

• Can Lower One’s Credit Score if it isn’t Handled Responsibly
• May come with High Interest Rates and Costly Terms and Conditions
• May be Dangerous for Individuals with Poor Spending Habits

Why Credit Cards are often better than Cash

Credit Card Rewards Introduction

It would make sense that cash is better than credit when making purchases. However, given the many benefits of today’s credit cards, this is not always the case.

For both business and personal use, credit cards may prove to be a very effective financial tool for credit card holders.

Credit Card Benefits

• Purchase Protection – If you receive an item that is unsatisfactory and the company or manufacturer is unwilling to grant you a refund, or if you purchase an item that arrives damaged, or not at all, the purchase protection feature on your credit card may cover your expenses.
• Extended warranty – Many purchases on a credit card come with the protection of an extended warranty. For example, electronics may be covered with a warranty that covers the purchase on top of the store or manufacturer’s warranty. Most credit cards offer a 90-day extended warranty on most purchases.
• Rewards – Many of today’s credit cards offer rewards of many kinds, such as cash-back rewards or rewards for products and services. For example, some credit cards enable credit card holders to earn points toward free hotel stays, airfare or reduced vacations. In other words, simply using your credit cards for purchases may earn you cash rebates or free products or services.
• Access to Emergency Money – A credit card in your back pocket may provide you with financial protection during an emergency situation where cash isn’t available. An emergency airline ticket, rental car, vehicle repair costs or even a new furnace are all necessary purchases that may not be attainable if it weren’t for the convenience of a credit card.
• Financial Bookkeeping – Credit cards are a very useful financial tool for tracking expenditures and maintaining finances. Credit cards, for both personal and business use, provide an individual with a clear record of all expenses.
• Convenience – Perhaps the most popular reason for using a credit card is the sheer convenience of it. Most individuals who use frequently use credit cards cite the practicality of not carrying cash as the biggest reason for using a credit card for purchases.