Credit Cards Review

What do you do if you seem to have too many credit cards and not enough money to pay them all off and you’ve got high interests rates on all of them?? The best thing for you to do is to open up one credit card and have all of your smaller credit cards consolidated into one credit card payment!

What’s the benefit of doing this? Simple! It doesnt matter how many cards you have and how many different balances you have on them, the final result is always same. You could have several monthly payments or you can just merge them into one. One great benefit to doing this is that often people receives a much lower interest rate. Many times people pay off alot of their debt by consilidating by getting a home equity line of credit. In this a card holder will basically take out a smaller loan against the equity in their home and use that loan to pay off all their credit card debt and more times than not it lowers their payments drastically!

A credit card debt consolidation offers even more benefits especially for those card holders who have to take the time out every month to make several card payments. The credit card debt consolidation provides an comfortable and easy way to merge the several billings into one so that you will only have to make one payment as opposed to many. Credit card debt consolidation assist you and helps you to handle your debt in a more efficient manner. This will result in maintaining an excellent credit history which will help you to one day buy a car or another future home.

One of the biggest and best benefits of owning a credit card is that cardholders no longer need to keep alot of loose cash on them in thier wallets or purses. This will lesson the chance of falling victim to robberies that can cost you not only your life but alot of your hard earned cash. If you would happen to be so unfortunate as to have your credit cards stolen all you must simply do is call your card company as soon as possible and cancel the credit card. If purchases have already been made or cash has been taken off the card every card company has ways of disputing these charges and they can be wiped off your credit history.

Secondly, the use of credit cards allows you to begin building up your credit which will aid you furthur down the road. Remember- no credit is bad credit. Just make sure to not over spend and to always pay your card on time.

Credit cards also come in handy during time of emergency. Unexpected car problems? Credit cards will allow for you to borrow money from your bank and use the money promptly to fix what ever sort of emergency might rear its ugly head. This way you won’t be forced to drain your family bank account when unexpected issues arise.

Also credit cards will aid you in instances such as that above by allowing you time to pay back the money you borrow. Of course if you dont pay the card off fully then you will begin accruing finance charges. But if you begin paying off the entire card amount all at once then you are REALLY taking advantage of all the great benefits that credit cards have to offer.

In the last few years an entirely new and different market as emerged for credit cards. The Business credit card is now the hottest item out there for small business owners. They are easy to obtain and the business credit card allows for new small business owners to free up and conserve alot of cash that is essential during the initial starting phase of a new or small business. This allows for a new business to have the money that they need to continue moving the small company forward. Today, about 65% of small businesses now have credit cards, and this number rises every day.

Some of the advantages of a business credit card as opposed to a normal personal credit card are as follows:

Business credit cards have higher credit limits. They generally carry credit limits of $50,000 or more, making it alot easier to purchase those items needed that are major purchases.

By making such larger purchases this causes the business card owners credit rating to boost! Just make sure that when you own a business credit card that you keep in mind not to abuse them. Be sure to make timely payments on the card and your business credit rating will continue to rise.

When doing business with your company suppliers make sure that you keep copies of any and all purchases made and make sure to report them all! Many of these are tax write offs! Which will come in handy at the end of the year.

Be sure to keep business credit apart from your personal credit card purchases. Also know that your business credit card rating is not reflected on your personal credit. that’s great because if something would happen to your business and it might begint o have financial problems or even fold, your personal credit rating is safe. In addition, by having a separate credit card for a small business, you no longer have to sort out business and personal transactions when it is time to pay taxes.

When being a business owner be sure to keep track of all employee spending. Business credit cards make it easier to keep track of and set limits on how much your employees are tacking onto the card. You can keep track of any and all credit cards.
And business credit cards have MANY business perks. The rewards offered on business credit cards are business related and typically include nice discounts on great business travel and on extensive shopping perks at business supply outlets.

In todays day and age its a sad thing that credit cards get a lot of really bad press and have some much negativity aimed towards them. Especially when it comes to people letting themselves get into alot of debt. Credit cards are actually an advantage for a variety of reasons and there are many issues that you, as a consumer and credit card holder, must stay on top of in order to assure that your personal credit card doesnt become a disadvantage. But if one uses their credit cards wisely they have a LARGE amount of very important advantages!

It’s essential to remember that credit cards are not your enemy! They are your friend. It’s the way you use credit cards that will determine whether they offer you an advantage or disadvantage.

How can your credit card be your best friend? Easy.

If you and your family have an unexpected, large high price purchase, credit allows you to buy it instantly and settle up later. This will free up more of your immediate personal finances for other matters.

Though you end up paying a little more for the initial purchase due to finance charges, credit cards enable you to spread the cost of expensive purchases, like vacations, home stereo equiptment, computers, and other such large purchases. And if you shop around for a low-interest rate, this needn’t be too costly. Their are a variety of credit card companies that all have different interest rates and APRS. Simply shop around until you find the card perfect for you.

If you as a consumer use your credit card wisely, you can make a purchase and get up to 59 days interest-free credit before you will have to begin settling the bill in full.

Another great advantage of some credit cards are that they offer you insurance policies on articles you might buy. What this means is that when you use your credit card alot of card companies offer you the opportunity to stop payment on an item that might be faulty. So even if the store where you made the initial purchase wont help you, yur credit card insurance policy can! All you have to do is make a claim and the problem will be solved.

And of the biggest advantages of using yur credit card is that it allows you to quickly build up GOOD credit. Your good credit will come in handy with alot of things in your life and if you keep your credit in good standing you will surely have no problem getting car loans, home loans, and all the other perks of having good credit! No credit is not a good thing! But GREAT credit is!

What exaxtly is a finance charge?

The finance charge on a credit card is the amount of money that you are paying to your crdedit card company to borrow their money. Credit Card Finance charges usually are decided upon by on how much money you have borrowed on that credit card and what your Annual percentage rate is.

It is most common for credit card companies to use one of many methods to calculate the outstanding balance on your card. The method each bank uses can make a big difference in the finance charge you’ll pay. Your outstanding balance may be calculated in some of these ways:

1.) Excluding or including new purchases in the balance

2.) Over one credit billing cycle or two credit billing cycles

3.) Using the adjusted balance/ average daily balance/ or the previous balance

4.) The average daily balance method excluding new purchases/ The adjusted balance method/ The previous balance method.

Also, depending on the amount of money that you owe on each credit card and the timing of your credit card purchases and card payments, you’ll usually have a lower finance charge with one-cycle billing. Steer clear of credit cards that charge you a finance charge based on two billing cycles.

What is the Minimum finance charge?

Some credit cards have a minimum finance charge. These charges usually applies only when you carry over a balance from one billing cycle to the next. So if you can pay off the amount owed before your next billing cycle begins… this is best to avoid paying a finance charge. This also helps you to not fall into the buy now and pay later trap… where you keep borrowing aand borrowing and not paying anything off!

With the amount of people that have credit cards today it is wise to stay in the know of how to protect your credit cards and yourself! Here are some simple and easy to follow rules for limiting the chances of credit card fraud happening to you.

The moment you get your new credit credit card in the mail… SIGN IT. Even once you sign your name to the back of the credit card also add SEE ID to the strip with your signature. This will make sure that everytime your credit card is used that the place of purchase will be required to see your picture ID along with the matching of signatures.

Be careful when making electronic cash withdrawels. When taking money out of an ATM or using your debit card for purchases anywhere make sure that you enter your PIN in such a way that no one can see it and so noone can chart the strokes of your keys. You wouldnt believe how many times people openly punch in their secret pin numbers so that anyone and everyone can see. This makes you a walking target for identity theft and credit card fraud.

NEVER EVER walk away from an ATM with your money but without your receipt. These receipts contain your bank account number, name, even amount of money in your account. You should also never throw away your receipts inside a public trash can, especially one right beside the ATM machine used.

Never tell someone your credit card information over the phone unless you are the one making the call. If it is an incoming call DO NOT disclose any personal information. Too many times this is a credit card scam and is simply someone phishing for your account numbers and personal information.

Even if you initiated a previous telephone call having to do with your credit card, make sure you always practice credit card safety. There are too many scams out there! One such scam is when your phone will immediately call you “back” and someone on the other end will be claiming to be from the merchant you just hung up with. They will frequently say something along the lines of that there was a random problem with your credit card number and they will then ask you to repeat the credit card number once more to confirm they have the correct card number. No matter how convincing they appear…hang up. If you would like after ending that phone call you can then call the merchant back again to establish if this claim is legitimate or not.

When making purchases make sure you pay attention and never leave your credit card behind. Stay focused when making purchases and never take your eyes off of your credit card. Leaving a card behind for someone else to find could be highly costly to you and your finances.

Always know exactly how many credit cards you have at one time. Have their card numbers written down and stored safely at home and always monitor how much of a balance you owe on each card.

Never discard your credit card statments without shredding first. This is another reason why on-line bill pay is great. No paper trail.

Always review your monthly statements in order to make sure that no surprise charges occur and that you have actually made all of the charges that you are being billed for. If anything seems out of the norm or if you do not recognize even one charge- call your credit card company immediately. Noticing something as small as one odd purchase could stop a chain reaction before it even begins.

With todays advances in technology you can obtain instant credit approval by applying for your new credit card via the Internet. No more waiting for snail mail credit card applications to arrive on your door step. No more filling out long and lengthy credit applications and no more stamps!

Applying for a credit card online is quick, easy, and safe. No longer do you have to bother with tons of paperwork and excrutiating long wait times. Applying for a credit card through the internet allows you to research several different credit card companies and make your own decision about which credit card is right for you. When applying for a credit card over the internet, your application is received immediately and your credit approval begins!

It is not uncommon for credit seekers to naturally be concerned about the safety and security of online websites and worry that they might be handing their personal information over to the wrong person. With todays security technology this problem becomes less and less of an issue. Make sure that your home computer is armed with the latest and most up-to-date spyware and and anti-virus protections. Make sure that the website that you are applying on is well known and a secure websites. Most online websites that require personal information will have certain features that notify web browsers of their legitimacy.

Today, on-line credit card approval is definitely a convenience because it is fast and easy. Online credit applications, these days, are just as safe if not safer than mailing your personal information through regular snail-mail where. Applying for a credit card online will allow saver exchange of personal information because now your application will not be passed amongst an uncountable number of hands. The paper trail is cut down by a great number, allowing for less chances of credit card fraud. However, it’s also very important to remember to carefully review all of the terms and conditions of the credit offer prior to applying for and accepting it. Reading the fine print can save you money and hassle!

Sadly today in the US your credit score dictates alot of what you can and cant do not only in your financial life but in your personal life. Having a low credit score can stop you from buying a car, obtaining a mortgage, getting into an apartment, and even sometimes makes a difference in who will and will not employ you. These days employers are even looking into your credit score as a means to find out how trustworthy and reliable you are.

When it comes to buying houses, cars, furniture or just about anything having a lower credit score will automatically result in your having a higher interest rate and you paying MORE money where as someone with a higher credit score would have a lower interest rate and a lower payment.

One of the best ideas for someone with a low credit score is to begin trying to repair their credit before trying to buy a house or car. Most people believe that the best way to do this would be to pay OFF their credit cards, but actually this is incorrect. First, you want to keep your credit cards open, but you want to try to keep them right around having a debt of 33% on them. When you close the account out then the card will no longer appear on your credit score as an open trade line. Most banks want to see no less than three open trades lines.

Another way to repair your credit is to pay OFF any outstanding collections of any sort. Once these are paid off, after a certain number of years they will fall off your report aand no longer appear.

Having a mishap that results in your credit score or FICO being damaged isnt the end of the world. But it can feel like it sometimes. One of the most important things to NOT do is to file bankruptcy. This option is only for those that see no light at the end of the tunnel, such as someone whos business has gone under or someone that engaged in a bad business deal. Once you file for bankruptcy it becomes basically impossible to obtain a mortgage or loan from anyone for the next seven years.