Archive for the ‘Credit card’ Category
Credit card debt reduction
November 25th, 2009
Getting into debt is easy but getting out of it really a difficult task. This holds good for any kind of debt and includes credit card debt too. Credit card debt reduction needs planning and discipline in the way you spend money.
Credit card debt reduction starts with reduction in the expenditures you make using your credit card. So, the first trick for credit card reduction is to go for shopping without your credit card (carry some small amount of cash). This credit card reduction technique isn’t asking you to stop shopping, instead it’s just asking you to seriously evaluate the need of anything you want to purchase and not just purchase it on the spur of the moment. So, if you really-really need to buy it, you will go back to your home to fetch your credit card thus introducing a delay that is instrumental in killing spur-of-the-moment purchase (and hence helping in credit card debt reduction). It gives you time to evaluate if it’s really worth going back home and getting the credit card for purchasing that item. So, in this case, credit card debt reduction is achieved by preventing the debt from building up further. It’s a very effective credit card debt reduction measure.
The other effective way of credit card debt reduction is debt consolidation i.e. consolidating debt from high APR credit cards to a low APR one. So this credit card debt reduction measure works by reducing the rate at which your credit card debt grows. Moreover, this way of credit card debt reduction also gives you a breather in the form of a short initial period when the APR is 0%. Besides credit card debt reduction, debt consolidation also brings some additional benefits which are basically in terms of rewards etc offered by the new credit card supplier. Thus this method of credit card debt reduction is really more than just a credit card debt reduction method – it’s a benefit provider too. If you are not comfortable in taking forward this method of credit card debt reduction, you can seek the help of a credit card debt assistance company.
Before you go for credit card debt help
November 22nd, 2009
Generally you will find that there is more credit card debt help available than is actually needed. Just flip through the newspaper and you would be surprised by the number of advertisements related to credit card debt help. Every now and then, there are articles on credit card debt and credit card debt help. Television channels are full of ads related to credit card debt help. There are websites and magazines that are dedicate to credit card debt help. You also hear about the topic of ‘credit card debt help’ being discussed in parliament. There seem to be policies/laws being formed for credit card debt help. All kinds of suggestions seem to be floating for credit card debt help. Everyone, even some of your friends, have a piece of advice related to credit card debt help. All banks seem to offer credit card debt help in term of various loan types (generally short term loans) at low rates.
So, credit card debt help is readily available and in fact even unwanted credit card debt help or advice will flow into your ears. However, not every one offering credit card debt help is proficient enough to be able to provide proper credit card debt help that will suit you. So you do need to understand some basics about credit cards and credit card debt, before you actually go looking for credit card debt help or before you start helping yourself out with your credit card debt. So you should try and understand how the credit card suppliers bill you, how the interest is calculated on your credit card balance and how your credit card debt grows. Understanding all about APR, goes without saying. Even if you think that you had gone through all this stuff at the time of choosing your credit card, you should revisit these concepts to make sure that you still know them.
Credit Card Tips to Save You Money, Time and Worry
November 4th, 2009
Credit cards are sometimes as harmful as they are beneficial if you dont understand deeply how they work or how best to use them to your advantage. So, what should you do to save yourself from having to sell an arm and a leg to repay credit card debts? Here are a few tips to help you stay out of the cooking pot in the first place.
Read the Fine Print: One of the biggest problems that consumers of all kinds face is not reading the fine or small print. Most times because the deal seems just so good, we take it up on impulse before we carefully consider the implications. It is always best to go through the Terms and Conditions governing the deal or promotion and the underlying disclaimers. They may contain more snakes than you may anticipate. It would be arduous, but it is worth in the long run.
Get Rid of Annual Fees: If you have a fairly good credit history, you can opt to call the issuing company and request them to waive the annual fee applicable on your card. If they dont, simply drop it and move on to the next one. After all, you are a reliable borrower, so they should be happy to do business you as you have a low risk of not paying back.
Be Careful with Promotional Checks: A lot of times promotions have another side to it. So, if you receive check, think twice before you dive in. Balance Transfer Fees may be a little elusive sometimes and may just result in fees that you may not want to be involved with.
Watch out for the Due Dates: It is very much advisable that you always watch out for due dates every time, because they are sometimes changed by the credit card companies so they could collect late payment fees and raise your rate.
Try Waiving the Late Fees: If you have never been late before paying your balance and fees, you can call up the credit card company to have them waive the late fees for you. Worst case scenario is that they will refuse it. But it doesnt harm to just call them and try.
Always Pay in Full: Always try to pay in full every single month. Just be over confident and use the credit card like it is you check or debit card. These are funds that you dont own and may be liable for any fees and interest rates applicable on it. So, use it with care and make sure that you pay in full every month.
Give Priority to Credit Union Cards: It is always a better option to use credit union cards since they usually have a lower interest rate in addition to other benefits.
Follow these tips religiously and you may just be saving yourself a few hundreds or thousands every year.
Credit Card Tips
October 24th, 2009
Ever wonder why some experts recommend you to use your credit cards wisely. Below are some common sense tips that you will love to know about how credit cards work.
*Use First, Pay Later- Having a credit card allows you to purchase items first without affecting your cashflow, you are actually getting a loan from the bank. In a way, the bank pays for you first for the merchant while you pay the bank later.
If you have a large item, like a television, to purchase and know that your cashflow is tight, wait 1-2 days after your billing cycle date or statement date. Check with your credit card company, they will know. For example, your statement date 5th of June, you charge it to your credit card only on the 6th or 7th. In this way, your payment due date for that large purchase will only fall on the 29th or 30th of July, assuming 25 days grace period. That gives you almost 2 months of grace period!
*Credit Card Companies Love you- Focus only on ONE credit card, in this way, all your spending is accumulated on one credit card. Take out your wallet, pick one credit card that gives you the most benefit and destroy the rest, YES, cut them into half.
Listen, I have reasons for doing so. In this way, you can track your spending more efficiently since you have only one credit card, your credit rating by the bank will also improve. Also, in times of emergency, when you ask your bank for temporary credit limit increase, your chances of getting it will be higher as well.
*Rewards- Depends on your lifestyle, do you shop a lot or are you a frequent traveler, or you just want a credit card to purchase your daily necessities? Choose a credit card that suits you the most will let you earn your rewards points faster and you feel good knowing that you get rewarded for spending!
Don’t listen to the salesperson, he will tell you that you will need this and that, read the terms and conditions carefully and choose ONE credit card that suits you the most in terms of rewards payout.
*Card Fees- It’s an open secret that banks will waive your annual membership fees, if you are a high spender, just hint that you will stop using the card and they will grant you the waiver. Don’t threaten to close the account, that will leave a bad impression on you and your future interactions with the company will not be nice, you never know what’s recorded down by the staff managing your account. “WARNING, DIFFICULT CUSTOMER.”
My First Credit Card Tips
October 20th, 2009
So you’ve finally got your first credit card or you’re looking to get one. Well, there are a few things that you should know before you start swiping it at your local convenience store. While it’s great to have a card to build credit, you still have to learn how to use it right in order to build your credit the right way.
Only spend what you can afford – A credit card isn’t free money and you have to get this into your head right now. You can’t spend more than what you can afford. What do I mean by this? If you make $500 a month and you can only afford $100 for fun money like CDs, video games, etc, then spend no more than $100! Even if you have to keep a tab on how much you spend, do it. The more organized you are, the better you will be with your spending.
Always pay on time – One of the more important things that you have to remember when you do get your credit card is that you always pay on time. Even if you can’t pay in full, it doesn’t matter; you have to make sure that you pay the minimum. Failing to pay the minimum will put a huge ding on your credit report. This is why it’s important to spend what you can afford because if you start to spend too much, you may find that the minimum may be too much to even afford. Your credit card statement is generally going to come at the same time every month. If you don’t know when this is, you can always call up or check your online account. When you access your online account, it will tell you when your next statement period will start and how much it will be.
Take care of your card – Never let anyone borrow your card and always keep it in your wallet. IF you’re going to shop online, make sure you know who you’re shopping with. If you shop with the wrong people, they can steal more money than you think. Luckily though, you’re only responsible for the first fifty dollars by law. By regardless of this, it’s a pain in the butt to get this situation taken care of. Always know where your credit card is and if you’re not using it, as I already mentioned, have it in your wallet or lock it up at home. You’ll want to lock it up at home just in case of a home invasion or someone stealing it while someone is at your home.
Having your first credit card is great. It’s going to build your credit so that you can get that home mortgage or car loan you want in the future. Without credit, it’s going to be awfully hard to get a loan. Be responsible with your card and don’t let others tell them that credit cards are bad because these are the people who don’t know how to use them.
