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Credit Card City Blog
All blogs for October, 2008
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The Importance of Improving your Credit Score
Posted on 10/25/2008 - Filed under Credit Card News
Do you need to improve your credit score? Many experts are saying that whatever your score is, you need to get it higher for today’s market. According to this article from CNNMoney.com, you now need a FICO score of between 750 and 780 to get the best deal on a loan. This is a jump from the previous scores required, which ranged from 720 to 750.
What this implies is that just about everyone, regardless of their situation, could benefit from taking a hard look at their credit rating. If yours is low, now is a good time to work on building it up. If it’s already in good shape, it’s very likely that there is still room for improvement.
While credit cards aren’t the only factor, they do play a role in determining your credit score. If you currently are carrying a number of credit cards, make sure that you’re paying each one of them on time – every month. This alone can help boost your score substantially.
If you have credit card debt, start looking into ways to pay it off. Set up a schedule and stick to it. Even if it takes a few months, or even years, to get debt-free, it will be worth the effort. (If your current card has a high interest rate, consider getting a balance transfer credit card to pay off that debt).
Of course, there are many other ways to improve your credit score. The key is to get started, even if that means taking small steps. By making important changes now, you won’t have problems getting bigger lines of credit in the future. And that’s a good thing for both you and your wallet.
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The Value of Student Credit Cards
Posted on 10/24/2008 - Filed under Student Credit Cards
Student credit cards often get a bad rep, and there’s little wonder why: the media regularly publishes headlines of college students graduating with high credit card balances. And with consumers around the country dealing with debt problems, that’s hardly a good way to start out.
When it comes to student credit cards, however, there are plenty of reasons to get excited. Here are just a few of the valuable, often overlooked, benefits that students can get through a credit card:
A chance at responsibility. College students are introduced to many new responsibilities from the moment they step on campus. Getting a credit card is just another opportunity for them to exert their new freedom. A student credit card offers them a chance to feel, and act, independently.
Teaching financial discipline. Once they start using the card, students will be introduced to credit card statements, minimum payments, and other credit card issues. Working through these details gives them an important lesson in financial management. By the time they graduate from college, they’ll have a number of years of experience in the personal finance realm. This can help keep them in the black as they start dealing with a monthly salary.
Extra rewards. Many credit cards for students come with gas rewards, discounts on books, bonuses for good grades, or an initial interest-free period. With these features and the chance to build up good credit, students can make the most out of their credit card experience during their learning years.
Click Here To View Student Credit Card Offers
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What Paying the Minimum Amount Due on your Credit Card Really Means
Posted on 10/20/2008 - Filed under Credit Card News
Are you paying the minimum amount required on your credit card each month? You could end up spending years, or even decades, paying off a credit card balance if you only make minimum payments.
This is because a good chunk of the minimum amount due covers the interest charges on the card. After that, the rest is applied toward the actual balance. But this amount can be quite small, and you could spend years chipping away at it before you finally pay it off.
So what’s the lesson from this? Basically, you’ll want to pay more than the minimum amount due on your credit card statement whenever possible. If you can, try doubling the minimum amount listed. Ask that the extra money be used toward the principal balance. You’ll see the remaining balance drop significantly over a few months. And if you can pay off even more, do so. You’ll not only pay off the balance quickly, you’ll save valuable money in interest charges – money that could be well spent in other areas.
Most of us go through times when we can only make the minimum amount due, and that’s fine for a few months. After all, that’s part of the idea behind credit cards – they offer you a line of credit now that you can pay back later. But when things pick up, do all that you possibly can to get that balance paid off. You’ll save a ton of cash, and won’t have to worry about a lingering balance on your credit card statements.
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Three Tips to Transfer Debt Successfully With a Balance Transfer Credit Card
Posted on 10/14/2008 - Filed under Balance Transfer Cards
With today’s credit crunches, some consumers are finding it easy to transfer debt from one credit card to another. While many cards advertise 0% APR on balance transfers, this interest-free period does not last forever. If you’re thinking about moving debt, there’s good news: you can transfer a high amount to a low interest credit card and get rid of the debt. The key is to do it wisely. Here are a few tips to help you pay off the debt:
Read the fine print. Many credit card applications state that when you sign up, you’ll initially receive a 0% interest rate on balance transfers. Read through the terms listed to find out how long this will last. Also check what the regular interest rate will be. Then scan the text for any other underlying conditions that could affect you.
Make a plan. To successfully transfer debt from a credit card with a high interest rate to a card with a low interest rate, you’ll want to create a plan. Figure out how many months it will take you to pay off the balance. If you want to pay off $2,400 in six months, you’ll need to set aside $400 each month to make it happen. Find a reasonable amount and timeline. Then make your credit card payment at the beginning of each month. You’ll be able to see progress soon.
Stay on track. Discipline is essential when it comes to paying off debt. If you can cut back on other expenses and use the money to pay off the credit card balance, do so. Read through your credit card statements each month and note your balance. Make a goal to become debt-free and then work hard to turn it into a reality.
If you’re struggling with credit card debt, transferring the amount to a different credit card may be a wise option. Look at your choices before you make a move. If you find a card that offers 0% APR on balance transfers and will work well for your situation, apply for it. Then start chipping away at the debt. Soon you’ll be on the path to good credit.
Compare Balance Transfer Credit Cards Here
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Airline Rewards Credit Cards: Help Yourself Cut Back on Travel Expenses
Posted on 10/10/2008 - Filed under Airline Rewards Cards
Today’s airlines are finding more and more ways to hit customers with fees. Checking bags, drinking a Coke, and even getting on an earlier flight are all perks that some airlines are now charging for. If you want to fly but don’t want to pay the high prices, consider getting an airline rewards credit card.
Designed to provide you with travel benefits, airline rewards credit cards can help you save valuable cash the next time you fly. Most airline rewards credit cards work by letting you earn points or miles every time you make a purchase. These points or miles accumulate and can then be used toward getting an airline ticket.
To make the most of an airline rewards card, try using it for your daily expenses. Buy groceries and gas with it, and then pay off the balance at the end of each month. You’ll see your points or miles build up fast.
Once you’ve accumulated enough points or miles, you can redeem them for a ticket. Many card issuers now offer a no blackout date feature, which means that you can travel any day you’d like. Simply choose the date and cash in your rewards. You’ll save hundreds of dollars in airfare.
If you’re thinking about going on a trip next summer, now is a great time to start planning for it. Find an airline rewards credit card that works for you, and sign up for it. Then use it and watch the rewards build up. Before you know it, you’ll have enough points or miles to get a plane ticket, or even two.
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Credit Card Companies Accepting Fewer Applications
Posted on 10/9/2008 - Filed under Credit Card News
According to a recent article in the Huffington Post, an increasing number of credit card companies are feeling the pinch of today’s rugged economy. And some are responding to current market trends by approving fewer credit card applications.
While this may sound worrisome, there are steps you can take to make sure you do get approved for a credit card. Follow these guidelines and you’ll be able to apply with confidence:
Know your rating. The vast majority of credit cards are divided into different categories. Take a look around online and you’ll find cards made for poor, fair, good, or excellent credit. If you have fair credit and apply for a card that requires an excellent rating, your chances for getting approved will be low. If you’re not sure what your rating is, check your credit report or head to a website like Experian.com to get answers.
Find a good fit. Once you know your score, search for cards that will be a good match. If you have excellent credit, you’ll find many options. If your score is less than perfect, there are still plenty of cards to choose from. (You can even apply for bad credit credit cards). Find one that best fits your needs and credit rating; then fill out the online application.
Boost your score. If you have a solid credit rating and want to get a platinum credit card, it may be wise to first build up your credit. You can do so by getting a different credit card and making payments on time. Show that you’re a reliable consumer and your score will increase over time. Then you can go nab the card you’ve been dreaming of.
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Bad Credit Credit Card Users Improve their Credit Rating
Posted on 10/3/2008 - Filed under Credit Card News
Subprime credit cards, otherwise known as Bad Credit Credit Cards, which are usually issued to consumers with low credit ratings, have the potential to help cardholders boost their credit over time, according to a recent study. The study, carried about by Citizen for Equal Access to Credit, found that 60 percent of customers with low-limit credit cards improved their credit scores in two years.
More than 70 million people in the United States currently qualify for low-limit or subprime credit. These consumers usually find it difficult to get approved for a regular credit card or loan. They often are able to get a subprime credit card, however. Both major banks and small companies issue this type of card.
While the exact fees vary, bad credit credit cards usually come with higher costs than regular cards. Consumers can expect to receive a higher than average interest rate, higher fees, and lower credit limits. This is due to the high-risk status often associated with low credit scores.
In spite of these high costs, many consumers find low-limit credit cards to be a worthwhile tool. By making purchases and paying off the balance, they show lenders that they are able to properly manage credit. Numerous subprime cards report to credit agencies. Over time, consumers can rebuild their credit and boost their overall score. This, in turn, opens to the door to more credit card options and offers.
Click here to view Bad Credit Credit Card Offers
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