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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Posted on 1/26/2010 - Filed under Bad Credit Credit Cards

If you’ve had financial problems recently, you’re hardly alone. Reports are coming out with cases of bankruptcy on the rise and they are expected to climb some more before they start to go down again.

While filing for bankruptcy can feel devastating, there are many things you can learn from it. You’ll not only get a fresh start, but you’ll also have a chance to make some changes in order to avoid financial disasters in the coming months and years. Here are a few things you can learn from bankruptcy.

A chance to develop new habits. Start by figuring out a budget that fits your lifestyle. Aim to live within your means and you’ll be able to create an atmosphere that you are comfortable with and will not break the bank.

Evaluate new purchases. These days, less is more, and that applies to nearly all levels of credit. If you’ve been a high spender in the past, look for ways to cut back now and enjoy the simpler pleasures of life. After all, everyone else is doing it.

You can still get credit. While it is difficult to find lenders that will help out people that have filed for bankruptcy, it is possible to get restarted with new credit. A bad credit credit card can help you get back on track and is available for nearly everyone, regardless of their credit background.

Click Here To View Bad Credit Credit Card Offers

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Posted on 1/25/2010 - Filed under Credit Card Management

With so much talk about the pending changes in the credit card industry, some are questioning what the future holds for credit cards. The truth is that credit cards have been around for awhile and aren’t going anywhere soon. What you do with them is your choice. And when you use them wisely, the benefits greatly outweigh the costs. Try making one or more of the changes listed below. You’ll save and come out ahead with your credit card.

Avoid late fees. These can sneak up on you fast, so find out when the bill is due and make note of the date. Whenever possible, pay it in advance. Sign up for email reminders if you have problems remembering.

Don’t use them for splurges. A credit card is not an instant cash dispenser. It offers you a loan that you will eventually have to pay back. Rather than maxing it out, take careful measures to use it responsibly. If you have a rewards card, use it for regular purchases and pay off the balance each month. It will be just like spending cash from your regular budget, but you’ll get the added benefit of rewards.

Don’t carry a balance. If you have a balance, do all you can now to get rid of it. Then pay off whatever you charge each month. You’ll save yourself hundreds of dollars in interest charges.

Manage your account online. If you spend time online every week, check your account on a regular basis. You’ll stay on top of what you owe, the interest rates involved, and catch any mistakes or errors right away, all of which will help you save money.

Bring over a balance. For anyone carrying a balance or loan with a high interest rate, try transferring it to a card that offers a special introductory offer on the balance transfer. You’ll save money on interest and be motivated to get the amount paid off as fast as possible.

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Posted on 1/7/2010 - Filed under Credit Card News

It’s not breaking news that changes have come, and more are coming, to the credit card industry. There are some things, however, that you might not know about the way the new credit card landscape will look. Here are a few of the changes that will come into effect that you may not have heard about.

Co-signers for young cardholders. According to the legislation, people applying for credit cards that are between the ages of 18 and 20 will be required to have someone co-sign the card. This is part of an effort to protect the applicants from running into debt at an early age.

Letting you know about increased rates. When a credit card issuer decides to change the interest rate on your card, which it has the right to do, it must first inform you of its plans. You can then accept the change or turn down the offer. If you decide to reject the new rate, your rejection will be accepted. Your account will be canceled, but the rate won’t change while you pay off the remaining balance on the card.

Changes in the cards offered. While there will still be plenty of cards to choose from, some of the fees, rewards, and other fine points may take on a new look. You might find it is harder to get approved for a card or that the interest rate starts higher, an annual fee is charged, or that there are different rewards offered.

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Posted on 1/6/2010 - Filed under Bad Credit Credit Cards

If you know your credit score is low, you may be concerned that you will not be able to get approved for a credit card. But what exactly is a low score? While in the past the number varied, these days you can figure that a score of 650 or lower will make it hard to get a regular credit card.

Fortunately, if you have a low credit score, the doors are not all closed to you. You can do a little searching online and find that bad credit credit cards may be a good route to go. The best thing about them, perhaps, is that they are available to nearly everyone, regardless of your credit past. So if you fill out an application, you can feel fairly certain that you will receive the card.

Another good thing about bad credit credit cards is that they report to major credit bureaus. This means that over time, the card will help you rebuild your score. Lenders will see that you are paying your bills on time, and eventually your score will reflect that.

So if you have a low credit score, don’t be alarmed. There is plenty of hope for those that are ready to get a bad credit credit card and work on rebuilding credit right away. Filling out the application is just the first step toward a better credit future.

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