Posted on 2/28/2010 - Filed under Credit Card Applications

If you know exactly where you stand with credit, you’ll be more likely to get the credit card application you send in approved. Here’s why: credit cards are made for different types of credit, and the score that you have will affect what you are eligible for.

As you look through credit card options on various websites, you’ll usually see the ratings listed as one of these: excellent, good, average, and poor. These terms identify what credit level you need to get the card. If you have poor credit, you’ll want to look for cards that cater to your rating. If you apply for one that requires a higher score, you’re more likely to get denied.

In the same way, if you have very good credit, you won’t want to sell yourself short by getting a card designed for someone with poor credit. Look for options that cater to those with good or even excellent credit. You’ll get more benefits than you would with other cards by taking this approach.

If you’re not sure what your credit score is, take some time to find out before sending in a credit card application. Once you know where you stand, you can search specifically for cards that fall in your credit range. Not only will this enhance your chances of getting approved for the card, it will make sure that you get as many features as possible for your type of credit. Once you get the card, you can continue to build your score by using it responsibly.

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Posted on 2/22/2010 - Filed under Credit Card News

There have been recent reports about some credit card issuers charging customers for not using their credit card. While this is true in some cases, it doesn’t mean that it has to happen to you. Here’s what to do to make sure you cut down on inactivity fees and other charges.

Know how many cards you have. One of the easiest ways to get charged for not using your credit card is simply to forget about it. You may have one that you haven’t used in years sitting in your wallet or a drawer. Make sure you know how many you have and when the last time you used each one was.

Use each card at least once every three months. Try to use your card frequently enough so that you don’t forget about it. Also keep track of the amount that you spend, and get rid of any outstanding balances right away. This system will help you build credit and avoid charges at the same time.

Think twice before canceling. It might seem like if you don’t use a credit card, the right thing to do would be cancel the account. Part of your credit score, however, is based on the length of time that you’ve had credit. So keeping the cards could help keep your score strong.

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Posted on 2/11/2010 - Filed under Credit Card News

A new device just hit the market that makes it possible for credit cards to be used on phones. Called Square, its purpose is to help more individuals accept payments from credit cards. It currently is only available for iPhones.

Products like Square are based on the idea that society as a whole is moving toward a cashless system. It opens the door for more people to carry out transactions with credit card payments. Street vendors, a neighbor holding a garage sale, farmers market stands – all of these now have the option of taking credit card payments instead of cash.

This is just another reason why it is nearly essential in today’s society to have a credit card. Customers can shop online with a credit card, swipe it in a restaurant, and use it for items of all sorts, from everyday purchases to big-ticket items.

If you have a credit card, you may find more and more places that accept it during the coming year. In addition to taking advantage of this quick method, keep careful track of all of your purchases. If possible, pay off your balance each month. By doing so, you’ll save yourself the headache of dealing with cash and get written records for every purchase you make.

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Posted on 2/10/2010 - Filed under Credit Card News

During the course of 2009, a number of major airlines announced that a cashless system would be used during flights. Customers interested in making purchases are now asked to pay for them with a credit or debit card. American Airlines and Southwest are among those that have adapted these cashless systems. Delta and Continental have also announced plans to incorporate this feature into many of their flights.

One of the biggest reasons for the cashless system is simplicity. It is much easier to swipe a credit card than to look for exact change or wait for the flight attendant to make change. It also gives you a chance to have the item and total amount recorded on your card’s statement. This can help you keep track of what you bought and how much you spent.

The fact that airlines have decided to switch to credit card friendly systems shows that they are following a trend in society to go cashless. If you don’t have a credit card, now may be the best time to look for one. A card can help your traveling go much more smoothly.

If you do use a credit or debit card while in flight, be sure to take the right precautions to protect your personal information. Don’t share your card with anyone besides the flight crew, and put it away right after using it. Check your statement to verify the amount you spent, and if you notice any errors, report them to the credit card company. By taking careful steps, you can shop while traveling on a plane and keep your personal information safe and sound.

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Posted on 2/8/2010 - Filed under Credit Card Rates

If you’re worried that the interest rate on your credit card will see a serious hike during 2010, you’re not alone. Many Americans are concerned about the new credit card laws that are currently being implemented. They’re wondering how credit card companies will react, and some experts are predicting that interest rates will go up.

This may indeed happen. The majority of credit cards currently being issued have a variable interest rate attached to them. This means that the rate, often referred to as the annual percentage rate (APR) for the card can change. It is often dependent on the prime rate.

The prime rate is currently very low, which means that there is a good chance it will go up during the next year. If this happens, the APR on credit cards with variable interest rates will increase as well. This means that your card could be affected.

While an increase in interest rates does not sound appealing, it may not harm your account at all. If you pay your balance off every month, you will see virtually no change. And if you do often carry a balance, now is the time to work on changing that. If you can pay your credit card bill in full every month, you’ll save hundreds of dollars on interest and enjoy other benefits as well.

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Posted on 2/4/2010 - Filed under Credit Card News

Recent news stories have reminded us of the relationship between sales and credit cards. Sometimes when we see a sale we immediately think of how much we’ll save, rather than the amount of money we’ll be spending. And if you swipe your credit card without thinking, you may end up paying a great deal of cash in the long run.

The good news is that you can still use credit cards to purchase items on sale. The key is to make sure the purchase is a wise one. Here are three questions to ask yourself before you buy something on sale with your credit card.

How much will it really cost me? If you can pay off the balance at the end of the month, it really won’t cost you anything. If, however, you’re going to be paying off the balance for months to come, you could end up shelling out hundreds of dollars in interest. Not cool.

Do I need it? Seeing a great deal can make you want to get it, even if it’s just for the sake of saving so much money. Rather than grabbing the item and sprinting toward the cash register, think about what you really need. If you have time, leave the store and take a walk, or even sleep on it. When you’ve removed yourself from the scene, you’ll be able to think more clearly. This will help you decide whether or not the item is really essential.

What are the other pros and cons? If you’re debating about whether or not to get the purchase, make a list of the pros and cons involved. This is especially important if the item on sale is a big one. Look at your life and think about what you want, both in the short and long term. Make a list of priorities; then study how the item would fit into them.

And remember, credit cards are a great tool when used properly. So don’t ditch all of your plastic, but do focus on using it wisely to reap the most rewards.

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Posted on 2/3/2010 - Filed under Credit Card Debt

If you have credit card debt on a number of cards, plus other debts hanging over your head, it can be hard to keep track of exactly what you owe and to whom. That’s where debt consolidation companies come in. They offer to bring all of your debts to one place. You pay one bill each month, and that is used toward paying down the total amount you owe.

Some people like the simplicity of having all of their debts in one place. You may too. Before you sign up for one, however, check the following.

Fees. This is a big one. Some debt consolidation companies are legit and will charge reasonable fees, and others will charge too much to make it worth it. So find out what you’ll be paying in terms of fees before signing your name to anything.

What you need. Different debt consolidation companies offer different services, so you’ll want to make sure that what’s being offered is really something you need. If you have a number of balances on different credit cards, for instance, you may just want to transfer those balances to a new card.

Consulting services. A good consolidation company will provide you with a consultation to look over the debt you owe. It will help you set up a repayment plan, and also give you advice on how to keep from falling into debt in the future. If the company you’re looking at doesn’t provide all of this, keep shopping around. Your credit and your future are worth it.

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Posted on 2/1/2010 - Filed under Credit Card News

It can be easy to use your credit card to get all of the gifts and items you need during the upcoming month. When the statement comes, however, you may find yourself utterly disappointed. The balance can add up fast, and if you don’t keep careful track, the amount you will owe for the next months can be staggering.

This is why using your credit card as if it were a debit card can have some solid benefits. Here are three ways that might work to your advantage:

No interest due. By knowing what you spend, and having the funds to pay for it at the end of the month, you won’t have to shell out a lot of extra money for the interest charged if you carry a balance.

Credit card management. Just knowing what’s going in and out of your account can help you establish a solid financial plan. This will help you in the long run, as you take on more loans and pay them back.

Earn rewards. If you just use a debit card to make your purchases, that’s fine, but many debit cards do not carry a rewards program with them. This is where a credit card is convenient. You can make purchases during the month, pay them back, and then reap the rewards that come your way during the process.

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Posted on 1/30/2010 - Filed under Credit Card Applications

If you recently filled out an application for a credit card, sent it in, and then were hit with surprising news that it was denied, you may be wondering what went wrong. As you begin your search to find out why and get the right card, here are a few possibilities of what happened and what you can do about it.

There was an error on the application. What if you filled out that your monthly income was $400 instead of $4,000? Just one zero can make a big difference. If you think that an error may have been entered, call the credit company to check. They can help you figure out what went wrong in the application process.

Your credit score doesn’t match the card. Different cards are designed for different levels of credit. If you have an averages score and you’re trying to get a card that is made for people with excellent credit, the numbers simply may not match. This will make the company send a rejection rather than an approval for your application.

Instead of looking for a card that has strong rewards or a low interest rate, start by matching your credit rating with the one that the card says it is made for. You’ll save yourself trouble and find a card that fits your lifestyle.

You’ve filled out many applications in a short time span. Lenders often view customers trying to get different types of credit in a short time frame as a cause for alarm. They might think that you are trying to get access to many lines of credit for the wrong reason, or they may see your situation as a desperate one. If you’ve filled out a number of applications and can’t get a card, you may want to talk to a financial advisor to figure out what step to take next.

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Posted on 1/27/2010 - Filed under Credit Card News

It can be easy to simply toss the mail you get from your credit card company. After all, much of it might not apply to your situation. But if you take some time, you may be able to catch some things that could turn expensive – fast – if you didn’t know about them. Case in point: credit card rates.

Credit card companies have been going through a trend of increasing the interest rate on some credit cards. If they decide to change yours, you’ll most likely get a statement in the mail to inform you of it. Knowing that a change is in the works can help you prepare for the interest hike, or even consider your other options.

Also, if you don’t know what you interest rate is, it can be difficult to calculate how much you are paying in interest charges each month. If you carry a balance, you have to pay interest on it every month. And if the interest rate goes up, you’ll have to pay more every billing cycle on the amount you’re carrying on the card.

Knowing your interest rate can help you plan out how to pay for the purchases you make each month. Better yet, it may motivate you to get that balance to zero and keep it there. If you can keep your balance at zero, the interest rate will not matter as much. You’ll also save hundreds of dollars in interest every year. That’s money you can put to work somewhere else.

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