Posted on 1/3/2009 - Filed under Credit Card News

If you have a credit card that you don’t use anymore, it may be tempting to close the account. A recent article in the Washington Post, however, warns that canceling a credit card can potentially lead to a lower credit score. This is due to a variety of factors, but the bottom line is that closing an account can take a toll on your overall credit rating.

So how does canceling a credit card cause your score to drop? It could reduce your credit history, for starters. If you opened an account ten years ago and it is still in good standing, lenders see that as a solid history. By closing the account, you could lose that long history of good credit.

Canceling a credit card can also reduce the amount of available credit that you have. Say you currently carry two credit cards, each with a limit of $10,000. This gives you a credit line of $20,000. If you have a balance of $5,000 on one of them, you are using 25 percent of your available credit. By canceling a card, you will change that ratio and be using 50 percent of your available credit. Some lenders will view this as a higher risk, and will be less likely to grant you more credit.

So if you have a card that you no longer use, call the credit company before canceling the account. Explain your situation and ask what the effects of closing the account will be. The representative that you speak with should be able to give you helpful information for your situation.

In many cases, you’ll find that your best bet is to hold on to the card and use it occasionally. This way, you keep the account open and active. You also receive the benefits of building a long, reputable credit history.

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Posted on 1/1/2009 - Filed under Credit Card Debt

Did you put “paying off debt” on your list of New Year’s resolutions? If so, you’ll be like many other Americans who are trying to cut back on credit card debt this year. In order to make sure this is a resolution you can keep, follow these steps:

Know what you owe. It is very hard to get out of credit card debt if you don’t know the exact amount of debt you’re carrying. So sit down at the end of the month and look through your credit card statements. Pay attention to the balance on each one of your cards.

One at a time. If you have a balance on more than one credit card, don’t try paying them all off at once. Instead, choose one balance to start with. You might want a low one that you can pay off right away, or you may want to start with one that carries a high interest rate. Work to pay off the balance on that card, and then move on to the next one. (While doing this, keep making minimum payments on your other accounts.)

Follow a plan. Once you have chosen a balance to pay off, figure out how long it will take to get rid of it. An easy method is to double the minimum amount listed on the monthly statement. If you can pay off more, do so. Try to set up a timeline that will show how many months you’ll need to pay off the balance. If you can get rid of the debt in this time period, reward yourself for your wise credit card management.

Limit credit card use. While you pay off the balance of a card, try not to use the card for other purchases. Keep it in your desk drawer or a safe place in your home. If you don’t have it in your wallet when you shop, you’ll be less likely to use the card. Once you are debt-free, you can start using the card once again.

By following these steps, you’ll not only get out of credit card debt, you’ll also learn about wise money management. And that is real key to staying out of debt. So take some time to set up a plan and follow it. You’ll be able to end the year with less debt, or better yet, no debt at all.

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Posted on 12/28/2008 - Filed under Credit Card News

As noted by CBS News and other media channels, the Federal Reserve Board approved a number of proposals last week. These changes will affect credit card companies and cardholders in the near future. Starting in 2010, you can expect to see some benefits coming your way. Here’s what to watch for:

More time to pay. In the past, credit card companies would increase interest rates after a payment was made just three days late. With the new regulations, they will have to wait until the account is 30 days past due. So if you forget to pay your bill and send in the payment a little late, it won’t come back to haunt you right away with higher interest rates.

Better interest rates. Some card companies will increase your rates if you make any payment late, including a gas bill or utility expense. This will no longer happen with the new rules. As long as you pay your credit card bills on time, you should be in the clear.

No more double-cycling. This is a tricky feature that many consumers don’t even realize is taking place. Some card companies will charge you for a previous balance, meaning that even after you pay off the balance, you could still be charged interest on the amount. But with the new changes, you won’t have to worry about that anymore.

With the economy on slippery terms at the moment, it’s good to hear positive news about credit cards. You can bet that in the near future, credit cards will be easier for cardholders to use and understand. All of this is good for you, and means that there is a bright future when it comes to credit cards.

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Posted on 12/27/2008 - Filed under Cash Back Credit Cards

If you have a cash back credit card, you know that these cards offer a bit of cash every time you make a purchase. The deal sounds great; however, not everyone takes full advantage of the cash back reward program. Here are a few things you can do to make sure you really are getting the most out of your cash back card.

Use it for daily purchases. Instead of swiping your debit card at the grocery store, use your cash back credit card. In fact, you could use your card for all sorts of regular purchases, including filling up with gas or department store purchases. Then pay off the balance at the end of the month. You won’t pay anything in interest, and you’ll accumulate plenty of cash back rewards.

Find the best deal. Some credit cards grant you a higher percentage of cash back for certain purchases. Check to see if your card offers more cash back for things like restaurant bills, online shopping, or certain gas stations. Then use the card at these places, and you’ll earn more cash back for each purchase.

Read the fine print. Many cards that grant cash back operate on a tiered basis, meaning that you have to spend a certain amount before you receive a good amount of cash back. If you’re not sure what your card offers, read the fine print listed in the monthly statement or call the company. Then see if you can work out a way to get the highest percentage of cash back offered. This may mean making a large purchase and paying it off right away, or simply using your card for more regular shopping. A word of caution: before you buy a big-ticket item, make sure you can pay off the balance quickly. If you can’t, think twice before using the card. You don’t want to end up making more payments and being charged high interest rates than necessary.

By taking some time to set up a plan for your card, you can get the most cash back possible. Once you have a system set up, the rewards will come in quickly. Then you’ll have to decide how to use all the cash you’ve accumulated in rewards.

Click Here To View Cash Back Credit Card Offers

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Posted on 12/21/2008 - Filed under Business Credit Cards

They may not be as well-known as Visa or MasterCard, but when it comes to small businesses and credit cards, Advanta really knows how to mix the two. Started in 1951 with a capital of just $30, this company has grown into one of the nation’s largest providers of small business credit cards.

If you’re a small business owner, getting an Advanta card can really be to your advantage. Here are just a few of the perks you’ll get when you sign up:

Low interest rate. Getting credit for small business owners can be tough. But with a low 7.99% APR, there’s little to complain about.

0% APR. Many cards today offer an initial 0% APR period, but Advanta takes this one step further. Sign up and you’ll get 15 months of interest-free time.

90 days of interest free. One of Advanta’s cards lets you go for 90 days after making a purchase before interest is charged. This lets you get a longer grace period than you’ll find with most cards.

In short, it’s worth checking out Advanta credit cards if you’re a small business owner. You may find that Advanta is just what you need to help your own business grow during the next year.

Click Here To View Advanta Credit Card Offers

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Posted on 12/20/2008 - Filed under Credit Card News

Credit card companies may soon be adjusting some of their standards for cardholders. Federal regulators may create various restrictions in the coming years. These changes would greatly benefit cardholders all over, including you.

For starters, the new standards would make it harder for companies to raise interest rates. They would also mean fewer penalty fees, and a longer grace period for cardholders. Those that have credit cards could expect to see easy-to-read tables listed in their monthly credit card statements.

All of these changes would greatly benefit consumers. So if you’re looking for a credit card, keep in mind that the government may soon make some changes to your benefit. And if you’re not satisfied with your credit card at the moment, better standards may be coming your way in the next year or two.

The changes proposed by federal regulators would make the entire credit card process less complicated. And even if these changes do not come into effect, you can still make an effort to fully understand how your credit card works. Read through the fine print and look over your statement carefully. If you have any questions, call the company right away. By making sure you understand what’s involved, you can better manage your credit card.

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Posted on 12/20/2008 - Filed under Credit Card Rewards

You’ve probably noticed the recent drop in gas prices throughout the country. If these falling prices mean that you are now on the road more than before, it might be time to think about getting a gas rewards credit card.

Gas rewards credit cards work in a way that is similar to regular rewards cards. When you use the card to buy gas, you automatically get a reward. Gas rewards credit cards often let you accumulate rewards when you make other purchases as well.

The rewards usually come in the form of cash. Some cards, however, let you earn points that can be redeemed for merchandise or gift certificates. Most rewards programs have unique benefits, so you’ll want to check your options before applying for a card.

You’ll often receive other benefits with a gas rewards credit card. Some offer 0% APR for a few months or travel insurance. Others do not charge an annual fee for using the card.

Gas rewards cards are not for everyone, but if you spend a lot of time on the road, it may be wise to look into getting one. That way, you’ll get rewarded every time you fill up. And with today’s economy, finding ways to reward yourself wherever you can are definitely worthwhile.

Click Here To View Gas Rewards Credit Card Offers

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Posted on 12/19/2008 - Filed under Balance Transfer Cards

Are you finding yourself using more credit cards than cash this holiday season? It can be easy to pull out the plastic to buy gifts. But when December ends and January rolls around, none of us want to be facing high credit card balances.

If you do end up with a leftover holiday balance on your credit card, there’s a fairly easy way to get rid of it. You can apply for a balance transfer credit card. These cards are set up so that you can bring the balance from an existing credit card over to the new one. You are then given a certain period of time during which no interest is charged. You can use the time to pay off the debt.

While balance transfer credit cards won’t make your debt magically disappear, they can be a great help. They give you time to focus on paying off the balance without having to pay interest charges. If you set aside money each month, you can easily get rid of the debt in a short amount of time.

So if you’ve been using a credit card with a high interest rate for your holiday shopping, think about applying for a balance transfer credit card. When January sets in, you can take the time to set up a payment plan and get rid of any leftover December debt.

Applying for a balance transfer credit card online is easy. Once you receive the card, work hard to pay off the balance you bring over. After that, you’ll be ready to use the card for other purchases.

Click Here To View Balance Transfer Credit Card Offers

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Posted on 12/13/2008 - Filed under Credit Card Debt

If you’ve fallen into credit card debt problems, you’ll find that there are many so-called debt counselors who are more than eager to help you out. Before you choose one, though, be sure to investigate them and their company thoroughly. Debt counselors can be involved in many scams,and they may drag you right down with them.

So who do you turn to when you have credit card debt problems? You have a number of options. You could sit down yourself and take a hard look at the numbers. Figure out how much you owe, and then set up a plan to pay it back.

If going solo seems overwhelming, consider asking a trusted friend with a financial background for help. They can help you get started on the right track, or point you to someone who can help. If you want to have a debt counselor help you, check out the person and the company they represent before you sign on to anything. If you see anything that makes you feel uncomfortable, look for a different option.

For some debt problems, you can even use credit cards to help you out. Look into balance transfer credit cards or those offered for people with poor credit. By taking it one smart step at a time, you’ll be able to work yourself out of debt and avoid scams at the same time.

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Posted on 12/7/2008 - Filed under American Express Cards

American Express is one of the leading credit card companies in today’s market, and its cards are quite popular in the United States and Europe. If you’re thinking of getting a new card, American Express is definitely an option to consider. Here are some of the top benefits you’ll find in American Express.

Solid Rewards. Many of the cards issued by American Express have a valuable rewards program attached to them. This might include cash back or points that can be redeemed for gift cards, travel benefits, merchandise, and more.

Sign-on Bonuses. With American Express, you can often get a 0% APR introductory period when you sign up for a card. This interest-free perk can last for up to 12 months, giving you a chance to get off to a good start with the card. You may even be able to bring over an existing balance you have on a different credit card, making it easier to have all of your balances in one place.

Instant Approval. For the vast majority of American Express cards, when you apply online you’ll have the advantage of finding out whether or not you’ve been approved in less than 60 seconds. This quick response is a nice feature if you’re in a hurry to get a card.

Click Here To View American Express Credit Card Offers

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