Credit Card

What You Need to Look for in No Annual Fee Credit Cards

2008-07-27T23:17:00.004-07:00

Credit card companies offer many incentives to choose their card over another card. One way they try to do this is to lower or eliminate fees, as in no annual fee credit cards. An annual fee is basically a service charge the credit card company makes to a person's credit card every year. It is like the credit card company charging the person for using their card. So no annual fee credit cards basically offer a person a free credit card.

Many times the annual fee is used to make up for savings on other fees. For example, many card companies offer low interest rates, but charge a higher annual fee. Other times the savings on cards with lower interest rates are void when one figures the annual fee into the equation. Many people are starting to catch on and are now looking for these low annual fee credit cards.

To find a good no annual credit card a person should compare a variety of no annual fee credit cards. By comparing they can find the card that will cost them the least amount. Many times credit card companies wave the annual fee for a certain amount of time or they raise interest rates to make up for the loss of the annual fee. The main things a person should look at is how long the no annual fee applies and how much it will be once the no annual fee time period expires. This could mean the difference in saving big or losing big. It is important to look at a variety of cards to get the best deal.

No annual fee credit cards are best for a person who will use their card sparingly. This is because the interest rates are always going to be higher than with other cards. A person who does not use their credit card very often will not have to pay a lot of interest and end up saving quite a bit of money. HoweverPsychology Articles, a person who uses their card a lot might end up paying more in interest then if they went with a different card.

No annual fee credit cards are a great deal for some people. The key to finding a good no annual fee credit card is for a person to compare different cards and understand their own spending habits. This will ensure that they get the most from their no annual fee credit cards.

7 Options To Consider When Taking Out A New Credit Card

2008-07-27T23:17:00.003-07:00

Have you ever taken out a credit card only to find a better deal later. Credit card deals can confuse as when considering a new credit card there are a number of options to be taken into account. In this article I've outlined seven options to be considered when you take out your next credit card.

How many times have you taken out a credit card based purely on its current interest rate or balance transfer option?

You may be surprised to note there are at least 7 elements worthy of consideration when you take out a new credit card. To judge a new credit card on just one or two options could easily result in a bad deal for you. You need to consider the following 7 options when you take out a credit card:

1. The Initial Concessionary Interest Rate And Period

Many credit cards offer a 0% interest rate on purchases for a limited period, usually six to nine months. This option can be very attractive particularly when you do not repay the balance in full each month.

After the initial period the rate reverts to the standard rate, usually in the 10 to 16% range although this can be considerably higher.

Some cards however have no interest free offer but have a much lower permanent rate, from about 6.9% (although it will vary in line with general interest rate charges).

If you are likely to have a long term balance (if you are unable to pay off the debt within the first 6 to 9 months) this option could save you money in the medium to long term. You will not be able to switch to this rate if you have taken the 0% initial rate offer.

2. A Monthly Interest Free Period On New Purchases

This relates to the period between your purchase of an item and when you will be charged interest on that purchase amount. Many cards have a policy of only charging from the payment date after the item appears on your card statement.

The effect of this is to give you between approximately 25 days and 56 days interest free credit on all purchases. Clearing your balance within this period will result in no interest being charged.

Some cards will charge interest immediately from the date of purchase and are therefore not suitable if you clear your balance each month.

3. The Annual Fee

Many cards have now implemented an annual fee. This fee is chargeable whether you clear the debt each month or if you roll over your debt.

4. 0% Balance Transfers

When taking out a new credit card you will normally have the option of transferring any outstanding balance to your new card with no interest charged for a specified period.

Although marketed as a "0% balance transfer" many are not totally free of charge. An increasing number now charge a one off charge of 2-3% of the amount transferred as an "administration chearge" for handling the transfer.

This is legally not an interest charge but it amounts to the same thing - you are charged a fee by your credit card company based on the amount transferred.

The availability of true 0% balance transfers is disappearing and in all likely hood will completely disappear sometime soon. If a 0% balance transfer is important to you take advantage soon, however be aware that many of these cards have higher subsequent interest rates.

5. The Availability Of Cashback

Many cards now offer cashback on purchases. This is usually is between 1/2 and 1% of new purchases (excluding balance transfers and cash withdrawal). If you do not repay your account in full each month take this into account when considering the interest rate chargeable.

It is only where you repay the card in full each month that this is a true cashback on purchases and if you do repay in full each month you may choose to make this a priority.

6. The Rewards And Discounts Offered With Your Credit Card

Rewards are where you can purchase goods or services at a discount by using your credit cardBusiness Management Articles, or you have free insurance on purchases made using your credit card.

In the credit card business nothing is free. If there are rewards offered the cost will be built in somewhere (usually a higher interest charge) so compare with other cards not offering the same rewards.

7. Credit Card Payment Insurance

Whether you take this option or not most cards now offer some sort of payment protection insurance in the event of sickness and disability. In the past this cover was limited to paying the minimum monthly payment however many cards now pay 10% of the balance on the card at the time your claim commences and may be worth considering.

Be very careful with this insurance as it will exclude any condition you suffer from when the cover commences and similarly any redundancy announced before the cover commences.

Taking out a new credit card is more complex than it seems at first. As you can see when considering a new credit card there are a number of aspects which must be taken into account and t can be very difficult choosing a new card.

There are many comparison services available that can help you cut through the confusion and I suggest you consult one or more before making your decision.

In all cases prioritise your requirements and only apply for the credit card which best matches your circumstances. Don't just pick the card with the longest balance transfer period or lowest interest rate as it may cost more in the longer term.

The Advantages of a Business Credit Card

2008-07-27T23:17:00.001-07:00

Modern businesses these days are finding life easy by using a business credit card. Smart business men always make it a point to establish their business credit through this type f credit card. This type of credit card is the same as your ordinary personal credit card, but these cards are use exclusively for business transactions. These credit cards can often be more important than your personal credit, so knowing as much as you can about them is indispensable. It is also vital to know what you should look for in a business credit card.

A good number of cards offers you will receive will be based on your personal credit and just have your name on them. This means that your business name will be included in your personal credit report and this card will report to your personal credit. As a result, you will be unable to build credit for your business. If you want to find out about the nature of the credit offers you are getting, you have to ascertain the credit agency they report to. The common business credit agencies that credit card offers report to are: Experian Business, Business Credit USA, Dun & Bradstreet, and Equifax Business. If they report to anyone else then it will be based on your personal credit. Try your best to get a business card to ensure that you will build business credit.

The benefits of having a business credit card are not limited to initiating a business credit report. You will also be able to separate business and personal finances. It allows you to monitor your business purchases and keep a detailed record of everything buy on your credit card in your monthly statements. The biggest advantage will be apparent during tax time when you will not be bothered by sorting through the mess of mixing business and personal records.

The other things that you need to examine in a business credit card are similar to what you would look for in a personal credit card. It would be good to compare interest rates and fees. Consider how you should use your card and the benefits offered by the credit card company. It would be wise to shop around and look for the card that will suit your business.

Try to take advantage of the benefits that a business credit card can give you and your business. It makes it convenient to organize your finances and build a decent credit history for your business. To take full advantage of a business credit cardFeature Articles, make sure that it is reporting to the business credit card agencies and is detached from your personal credit record. Try to find the best cards that matches your business and has good fees. Finding a good business credit card is in some ways similar to finding other types of credit card except it is exclusively meant for business purposes.

The Basic Credit Card Types

2008-07-27T23:16:00.000-07:00

It may seem incredible, but credit card issuers clog the mails with over 2.5 billion offers inviting people to apply for a credit card. Even those who would not qualify for a conventional credit card due to serious credit problems are now able to get one; some credit card issuers even specialize in this particular type of market.

And according to financial gurus, there are at least a billion credit cards in active circulation throughout the United States alone.

Credit has been an economic cornerstone for some time now. Surveys show that the average American household is estimated to have at least twelve credit cards, including charge cards. While you may tend to think that one credit card is pretty much the same as the next, there are in actual fact distinct characteristics for each different credit card type. It is good to know these difference between the three different types of cards in the market: a bank credit card, a travel credit card, an entertainment credit card (although nowadays the combined travel and entertainment card has become more common) and a retail credit card or house card.

Bank Credit Cards

You have probably noticed that most credit cards bear either the logo of Visa or MasterCard together with the name of the bank. It would appear that the credit card has been issued by either Visa or MasterCard. That is not quite an accurate assumption: these two companies do not issue credit cards directly to the consumers. Most of the credit cards on the market today are offered by thousands of banks around the globe. Each bank is linked to the credit card association, because are not allowed to issue any kind of card unless they are association members.

Visa is a privately held membership association, although it is preparing to go public. It started as an association of banks in California and the West Coast. There are over 20,000 financial institutions in the membership rolls, and virtually all of them offer Visa Card. MasterCard is also a membership association, similar to Visa, and originally consisted of member banks in the East.

A bank credit card is in reality a revolving credit line. When you receive your statement, you can pay all or part of your balance each month, run up the balance again and so on. Being a credit line, the account comes with a pre-determined credit limit that depends on key factors like disposable income, credit history, etc. The credit limit can be as low as a $100 or as high as many thousands of dollars.

It is possible for card holders to get themselves into trouble when they do not properly manage the revolving credit line. When you carry a balance instead of paying it off, the credit card issuer starts charging interest on that balance — in some cases, this interest could be pretty steep. The interest rate varies widely, depending on who issued the card, but you could expect the average credit card interest rate to be at about 18 percent.

For instance, if you carry forward a $1,000 balance for 12 months, you pay $180 in interest per year or $15 every month. If you maintain a $1,000 savings account, you will earn about $40 in interest per year. Those who get into trouble will have to reduce debt, and one of the more common ways to go about this, is to arrange for credit card debt consolidation, which helps lighten the interest burden.

Travel and Entertainment Card

Travel and entertainment cards are similar to bank credit cards in the sense that holders can charge purchases at various stores and locations. However, they are also different from bank credit cards because they are offered directly by the credit card companies, namely, American Express and Diners Club.

This credit card type was once accepted primarily at travel- and entertainment-related businesses such as airlines, hotels, restaurants and car rentals. Nowadays, all other establishments, such as upscale department stores, gas stations and drugstores, accept them. Like any bank card, the typical travel and entertainment card of today offers the menu of features that most credit card holders have come to expect, such as frequent flyer miles, luggage insurance and collision insurance coverage on rented cars.

A further difference between travel and entertainment cards, and bank cards, is that travel entertainment cards do not carry an extended line of credit. This means that you will are required to pay your outstanding balances in full, either within one or two billing periods, in order to for the account to stay current.

Both travel and entertainment credit card providers, such as American Express and Diners Club, also deliver categorized summaries of expenses charged to the credit cards at the end of each year. This certainly is a convenience at tax time.

House Card

Unlike a bank credit card, and a travel and entertainment card, which you can use in many purchase locations, a house card is accepted only at a particular store or stores within the same chain. House cards (also referred to as retail charge cards) are the second largest category of credit cards; major house issuers include department stores, oil and gasoline companies, and telephone companies. Discover Card, once owned by Sears, was probably the biggest house card until it was purchased by a financial institution to become a distinct credit card company.

Merchants are very much in favor of house cards as these cards are valuable in helping them to both develop customer loyalty and enhance sales; you may appreciate the shopping convenience they give you. Just like bank credit cards, house cards give you a line of credit, with a limit that varies depending on your creditworthiness. For this reason, you may choose not to pay your credit card bill in full each month. Note, however, that the majority of house cards charge fixed interest rates of between 18 and 22 percent annually; thus a house card is more expensive in terms of interest cost than a bank credit card.

All types of credit cards involve costs when you use them. After knowing the different credit card types, you may choose the credit card that best fits your personality and needs. If you have a number of credit cards on your wallet, you may also consider discarding some.

If you are the type who does not carry a monthly balance, you can have a credit card with no annual fee but make sure that there is a grace period on purchases. However, if you do carry a balance, it is wise to do away with a credit card that has the worst of the following:

· High interest rates

·Unfavorable interest calculations. A credit card may calculate interest charges based on average daily balance, not on the balance due.

· No grace period. Some credit cards might charge interest from the date of purchase until payment date, even if you pay off your balance.

· Nuisance fees. Try to do away with credit cards that have late-payment fees, over-limit fees, fees for not carrying a balance or only a balance below a certain level, or a percentage fee on your credit limit.

The modern bank credit card was first introduced in the 1960s by the Bank of America; the travel and entertainment credit cards were both introduced in the 1950s. Much may changed since then in terms of features and benefitsFind Article, but the basic characteristics of each type of credit card have remained the same.

Getting a credit card is a big responsibility

2008-07-27T23:13:00.000-07:00

Owning a credit card can be quite an advantage. Whethermaking online purchases, booking an air ticket or a hotelroom on the phone or simply being in need of someemergency cash, having a credit card can be a big help.However, getting a credit card is also a hugeresponsibility and if you don't keep an eye on yourspending habits, credit cards can create some seriousproblems. Here is an excellent list of tips on propercredit card use and if you follow these, you will likelystay out of trouble and your credit card will be ablessing instead of a curse:

1. When you make a purchase with the credit card, itis akin to taking a loan from your bank. What youhave borrowed has to be returned - so do not borrow beyondyour capacity to pay it back.

2. Always be aware of your outstanding credit cardbalances. This will help you determine whether you canmake additional purchases. Even small purchases can reallyadd up to big balances and substantial interest charges.

3.Any credit card receipts should be kept until you cancompare them to your monthly statement. If you find anypurchases you did not make, or higher charges than those onthe receipt, contact your credit card company immediately.

4. don't give your credit card to anyone, not evenfriends and family. Its not that you cant trust thesefolks but it would be really difficult to track purchasesif you are not the only one making them.

5. don't ever borrow more than your ability to pay itback. If you do and consequently arent able to pay itback, it can hurt your future ability to obtain otherforms of loans such as home mortgages, car loans etc.

6. Pay your credit card bills on time or even beforethey are due. Doing so will not only help improve yourcredit scores, but also help avoid additional costsassociated with late payment charges and accrued interest.

7. Try to have your credit card bills paid in fullevery month. To ensure this, budget your credit cardpurchases on a monthly basis and then don't allow yourpurchases to exceed that amount.

8.Keep your credit cards for new purchasing. don't pay onecredit card bill with a different credit card. This willinevitably lead to more charging and higher balances.

Connie Gutchrif is the President of FN Credit - An excellentresource for information on credit. To learn more, be sureto visit: http://www.fncredit.com Getting a credit card is a big responsibility

Owning a credit card can be quite an advantage. Whethermaking online purchases, booking an air ticket or a hotelroom on the phone or simply being in need of someemergency cash, having a credit card can be a big help.However, getting a credit card is also a hugeresponsibility and if you don't keep an eye on yourspending habits, credit cards can create some seriousproblems. Here is an excellent list of tips on propercredit card use and if you follow these, you will likelystay out of trouble and your credit card will be ablessing instead of a curse:

1. When you make a purchase with the credit card, itis akin to taking a loan from your bank. What youhave borrowed has to be returned - so do not borrow beyondyour capacity to pay it back.

2. Always be aware of your outstanding credit cardbalances. This will help you determine whether you canmake additional purchases. Even small purchases can reallyadd up to big balances and substantial interest charges.

3.Any credit card receipts should be kept until you cancompare them to your monthly statement. If you find anypurchases you did not make, or higher charges than those onthe receipt, contact your credit card company immediately.

4. don't give your credit card to anyone, not evenfriends and family. Its not that you cant trust thesefolks but it would be really difficult to track purchasesif you are not the only one making them.

5. don't ever borrow more than your ability to pay itback. If you do and consequently arent able to pay itback, it can hurt your future ability to obtain otherforms of loans such as home mortgages, car loans etc.

6. Pay your credit card bills on time or even beforethey are due. Doing so will not only help improve yourcredit scores, but also help avoid additional costsassociated with late payment charges and accrued interest.

7. Try to have your credit card bills paid in fullevery month. To ensure thisFree Web Content, budget your credit cardpurchases on a monthly basis and then don't allow yourpurchases to exceed that amount.

8.Keep your credit cards for new purchasing. don't pay onecredit card bill with a different credit card. This willinevitably lead to more charging and higher balances.