Finding the Lowest Credit Card Rates – How Much Can You Save?

 
Credit card companies try to gather as many clients as possible and competition dictates them to offer lowest credit card rates. Actually credit cards can be conceived of a revolving credit line where you can purchase goods and services to as much as your credit limits. Then upon payment, even if it is only partial, you can again purchase goods equal to the remaining available balance. This is how convenient these plastic cards are. If you do not have money currently, you can buy things for emergency purposes.
 

If you are paying your credit cards partially or purchasing goods on installment basis, you are paying an interest for the unpaid balance. Finding the lowest credit card rates, you will surely save a lot of money in terms of interest. There are various ways to negotiate or find lowest rates. If you have a good credit rating or your bank deposit for the bank to which the credit card is affiliated to is high or you had been a credit card holder with excellent paying record, you can bargain for lower interest charges. Some companies offer low rates if you transfer to them your current balances with other credit card companies. You can even ask your current credit card provider for lower rates so you do not transfer your account.
 

Lowest credit card rates are compared in different websites

It is but practical to look for credit cards that impose lower interest rates. You will get information about this by visiting websites of credit card issuing companies. You can note down the different rates of every company. You have the websites creditcard.com, credit.com or creditcards.org as examples of websites that give data for making comparison on credit card rates.
 

Lower rate with balance transfer

In many cases, balance transfers are pegged with lowest credit card rates. If you have an outstanding credit card and your payment record is good, you can ask for lower rate. But before you transfer the balance, consult your current credit card issuer if it can match the lowest offer. Usually it will do when it wants to retain your account. Read some ads of credit card companies for introductory offers of low interest rate.
 

Savings on lowest credit card interest rate

Here is an approximation on how much you can save if you are able to negotiate lowest credit card rates. The exact amount differs on the rate difference and outstanding balance. Here are computations, under different circumstances, for your monthly savings on interest rate.
 

Same monthly credit card balance

Divide your new lower interest rate by your old higher interest rate. This tells you the proportion of the new rate. Multiply the quotient by the monthly interest rate charged on your bill. Subtract this from the amount you were previously charged. To illustrate, assume that the old interest rate is 15% and the new rate is 13%. Divide 13 by 15 to get a proportion of 0.8666. If you pay $75 monthly interest, multiply this by 0.8666 and you get the new amount of interest equal to $65. $75 – 65 is $10 monthly savings on interest if you get the lowest credit card rates.
 

Variable or changing credit card balance

If you are making more payments or more purchases, your credit card balance changes; you will compute your savings with a different formula. The rate of interest will be based on the average credit card balance for the month. Multiply your higher rate by your average monthly balance. Multiply your lower rate by the average monthly balance. The difference between the products of these two computations will represent the difference or the savings.
Whether you maintain the same balance or you lower your monthly average credit card balance, a lowest credit card rates will give you savings. Overtime, the small savings grow bigger. This is the reason why having a good credit history you should always negotiate for lowest rates.
 

Consolidate Your Credit Card Debt

 
Credit card debt is one of the most common problems of the Western world. The use of credit cards in the US and UK is massive. (Personal Debt In Perspective will give you an idea of the scale.)
 

As credit card and other debt spirals at a society level, it brings with it stress, relationship and other problems. Often, those whose debt is out of control, are afraid to face up to the reality, at least initially, or do not know how to face up to reality and begin the process to eliminate their credit card debt. The first step is to recognise it is a serious problem, and the second step is to assess the true debt position on paper. They can be the most difficult stages to some; reluctant to see on paper the full scale of their personal debt problem, they may be tempted to add yet another credit card to their wallet. Thus, they dig a deeper hole for themselves, rather than make any inroads to even reducing their debts, let alone clearing them over time.
 

Credit Card Debt Freedom

The weight of debt on people’s shoulders can be overpowering and debilitating. However, once recognition and assessment has passed, that weight of psychological pressure can lift fairly quickly, with the help of some of the techniques and services available. Accepting good advice, learning how to budget, understanding credit repair possibilities and avoiding the scams, and generally becoming more knowledgeable of the credit card business, can all play a role in planning to reduce or wipe out credit card and other debt. Debt consolidation could be your answer to debt freedom.
 

The articles on this website are intended to give you an idea of how to proceed and what to avoid. If you can get good counseling services locally, then that is ideal. Credit card debt problems, and other debt problems, are best tackled with the help of an experienced person who has helped many before you. If you are prepared to talk over your problems, then you have taken an important step to improve your financial situation.
 

Eliminate Debt Today

Debt may accumulate to unthinkably high statistics, but it is something that is personal to you; it’s repercussions are at an individual level. However, it is best not to despair. You are far from alone or unusual, and professionals in the industry can have long practical experience of dealing with such debt problems. You can eliminate your debt eventually, but there is no magic and painless solution. You need to learn and plan your way out of a difficult financial situation
 

We hope you are able to feel the weight lift off your shoulders soon, and you are able to vow: “Never again. From now on I will budget and plan my finances”. That is not as difficult as it may sound, and there are some helpful services around to help you on your way.
 
Please make the most of them.

Eliminate Credit Card Debt

 
When you’re paying back credit card debt or a 100% purchase loan, a little strategy can make a difference of hundreds or even thousands of dollars. The best strategy is simple, but effective.
 

List Your Debts.

Write down a list of every debt you have with a secured loan uk, how much it is, and what the interest rate is. You might have trouble finding this information, but it’s worth getting it all together in one place and write it down. You can’t manage your situation strategically if you don’t even know it, can you?
 

Remember to include your credit cards (with the different rates and balances for purchases and cash advances), other cards, loans, mortgages, and even money you’ve borrowed from friends and family. Every bit of debt counts, and you’re trying to get it down to absolute zero.
 

Bad Debts and Good Debts with a 100 mortgage.

Remember, you’re trying to legally eliminate credit card debt.

Go through your debts and mark them ‘good’ or ‘bad’. You might think this is odd, but some kinds of debt are nowhere near as bad as others. A mortgage, for example, is an investment in a house, paid over a fixed term – there’s no real risk of paying a ridiculous amount of interest or never getting it paid off, like you could with a credit card.
 

Good debts: mortgages, student loans, car loans.

Bad debts: credit cards, store cards.
 

As a rule, good debts are for a fixed amount of time and allow you to buy something valuable that you cannot afford, while bad debts are ‘revolving’ and are just used instead of cash.
 

Eliminate Credit Card Debts

Time to Prioritize.

Cross your good debts off your list, for now – you shouldn’t think about paying them off more quickly until you’ve got all your bad debts out of the way.

Now, arrange your debts in order of interest rate, with the highest interest rate at the top. The chances are that the debt at the top will be a store card or credit card, which could have a really huge interest rate. Try to transfer as much money as you can from the high-interest cards down the list to the lower-interest ones.
 

Once you’ve done that, focus all your energy on repaying the new top debt. Pay the minimum on everything else, and throw as much money as you can find at the problem. If you have any non-essential monthly commitments, consider cancelling them for a while, and putting that money towards your payments. Stop saving, just for a while. Try keeping track of where your money goes, just for a month – you might find that you’re spending loads on something you don’t even want or need.
 

Do your best to give up any expensive habits you might have. You’ll be shocked how fast your debts can go down if you put the money you’d usually spent on smoking, drinking or gambling towards them! I’m not trying to spoil your fun here. You’re just making some small sacrifices for a while, and your life will be so much better for it in the long run.
 

You have to be aggressive against that top debt, and determined to defeat it. This is a war, you’re on the attack, and you want to win against your debt. Don’t you?
 

Avoiding Credit and Charge Card Fraud

 

Avoiding credit and charge card fraud could not only save you a lot of money but also a lot of frustration and headaches too. These crimes cost cardholders and major credit card companies hundreds of millions of dollars each year.

While theft is the most obvious form of fraud, there are other ways it can occur. As an example, someone obtains your card number and uses it to buy something on the Internet without your knowledge.

Avoiding credit and charge card fraud is not always possible, but there are a few steps you can take to make it more difficult for a thief to capture your card or card numbers.

 

Steps For Preventing Credit Card Fraud

 

What You Should Do:

•  Sign your cards as soon as they arrive.
•  Carry your cards separately from your wallet, in a zippered     compartment, a business card holder, or another small pouch.
•  Keep a record of your account numbers, their expiration dates, and the     phone number and address of each company in a secure place.
•  Keep an eye on your card during the transaction, and get it back as     quickly as possible.
•  Void incorrect receipts.
•  Destroy any carbons.
•  Save receipts to compare with billing statements.
•  Open bills promptly and reconcile accounts monthly, just as you would     your checking account.
•  Report any questionable charges promptly and in writing to the card     issuer.
•  Notify credit card companies in advance of a change in address.

What You Should NOT Do:

•  Lend your card(s) to anyone.
•  Leave cards or receipts lying around.
•  Sign a blank receipt. When you sign a receipt, draw a line through any     blank spaces above the total.
•  Write your account number on a postcard or the outside of an     envelope.
•  Give out your account number over the phone unless you’re making     the call to a company you know is reputable. If you have questions     about a company, check it out with your local consumer protection     office or Better Business Bureau.

Reporting Losses and Fraud

If you lose your credit or charge cards or if you realize they’ve been lost or stolen, immediately call the issuer or credit card company. Most major credit card companies have toll-free numbers and 24-hour service to deal with such emergencies.

By law, once you report the loss or theft, you have no further responsibility for unauthorized charges. In any event, your maximum liability under federal law is $50 per card.

The FTC also works for the consumer to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them.

To file a complaint or for more free information on consumer issues, visit www.ftc.gov/ftc/consumer.htm or call toll-free, 1-877-FTC-HELP (1-877-382-4357) or 1-866-653-4261.

Follow these tips and it may help you in avoiding credit and charge card fraud.

Credit Card Secrets and Your Credit

There are a few secrets when it comes to Credit Cards. Now while some issues are secrets for some and common knowledge for others, I should at least first cover some of the basics. I hope it is only a secret to very few people that credit cards charge a terribly high interest rate on any overdue payments as well as any cash advances. These high interest charges are the worst most have ever seen. Because of this, you should always do your best to pay off any credit cards as soon as possible or you will end up owing considerably more than you ever thought you could.

The minimum payment or even paying just over this amount will end up stinging you badly in the longer term. This being said, be aware of it and don’t overlook it. However there are a few less common tricks that can be done in order to obtain more credit while not necessarily advised.

One method is what I like to call the blitz method. This is done by going to every bank and credit institution where you can apply for a Visa or Mastercard. Then obtain an application for each and every variety of these cards you can through the different institutions. Then depending on where in the country you mail them into, you try to time it so that all the applications reach their intended targets on the same day.

For example, if you live on the west coast, you would mail the ones going to the east coast first, wait a day, mail the ones in the mid west, then the next day mail the ones to the middle of the country and lastly to the west coast. While it may not work perfectly, there is a high chance that many applications will be received on the same day and you could end up receiving as an example $12,000 in credit instead of $1000.

There is also a trick that can be done with a secure credit card. A secure credit card is one where there is money put up front so that any money that is spent on the card has already been deposited onto it. This trick will end up showing that someone is more credit worthy than they really are and as a result a bank would end up providing more credit to you. Here is how you do it.

You obtain a secure credit card. To begin with lets say you put $500 onto it. This is your credit limit for this card. Then you withdraw $500 from the card in cash and put it into the same bank account that you used as collateral to obtain this card. You now would have $1000 in your bank account. The bank will report this to the credit bureau which in turn will raise your credit limit on your card to $1000. You then keep doing this $500 withdrawal from your card and putting it into your bank account.

Do this until your monthly payments have gone as high as you want and you could reach for example a $6000 credit limit. However it will be considered charged up because you will owe this still. But what a creditor will see is that not everyone is offered a $6000 or $10,000 or whatever you managed to raise your credit card limit to. Since you also have make payments each month on the amount owing you may very well gain favor in a creditors eyes.

The Best Credit Card to get for Pay your Debt Down With

 
The credit card companies have put us through so much over the past few years. We have suffered slashed credit limits, more expensive interest rates and unreasonable fees. And then we’ve had the government getting into the fight to help protect us. The whole thing could turn anyone off the plastic once and for all. What is it even worth, really, we seem to ask ourselves often. Come to think of it, the credit cards that we all hold on to today really aren’t as rewarding as they might have been once. But you need to realize that the credit card market has completely changed over the past year. Whatever was the best credit card to get last year should be quite pointless now, next to the kind of innovative programs they’ve thought up at the banks.
 

This past year has been quite an eventful one for consumer credit card legislation. The banks have had to face up to new rules about how they can’t just raise your interest rates or manipulate your payments to suit then. What has resulted is a considerably reworked credit card market. If you’re looking for the best card to get, this would be a great time. They?ve brought out products unlike we haven?t seen at least since 1990. The market is that strong for the consumer today. Let’s take a look at what the best credit card to get today would be for different needs.
 

On average, every home in America owes about $8000 in credit card debt. Want to know how it got to be that high? No, it isn’t that American households are irresponsible with their personal finances. Each month, whatever you paid, the banks would apply it to whatever you owed the least interest on ? just to suit their bottom line. According to the new rules though, whatever you pay has to first be applied by the bank towards your highest interest debt first. If you are interested in wiping that credit card debt out, today’s credit cards are going to make it a lot easier on you.
 

If you want to manage your debt today, you’d be best off with two separate cards ? one that gives you a great low interest rate on purchases, and another card that gives you a great balance transfer deal. You’re supposed to make all your purchases on the low interest rate credit cards and pay them off every month. But if you can’t pay them off, you’re supposed to transfer your balance to the other card that gives you a low transfer rate. Your purchase card could be the Citi Forward or the Simmons First Platinum Visa, and the Discover More could be your low transfer rate card.
 

Under the new credit card act, it’s nearly impossible for anyone under 21 to get some spending power, unless they have a cosigner or a real income. If you are a student, you now have very little choice. If you try to get a card that’s not specifically intended for students or other people with limited credit, it could get to be extremely expensive ? so expensive that it might hurt your credit score. But even student credit cards can be less than desirable.
 

The credit card company will count your student loan as a source of income and give you a big fat spending limit ? and you can easily overspend your way into insurmountable debt. The best credit card for the students should be something like the Citi mtvU Platinum Select Visa Card for College Students.where you actually get awards for a good GPA and you get rewards for paying back on time. They try to teach you good spending habits early on.

Fees and Interest Are Basic Credit Card Charges, There Are More

Credit cards are like loans, similar to revolving credit lines where you can charge purchases on the card up to the credit limit. You pay monthly and you can use again. The process goes on until the expiry date of the card. Upon card renewal, you start purchasing all over again. It is really very convenient and paying on due date, there are no credit card charges levied to your account. Using your credit card properly can provide you a range of benefits, including flexibility.
Credit cards are available in different kinds, variety of limits, repayment schemes and perks and freebies. However, this is very risky too because you can be enticed to make purchases thereby going out of budget. When you happen to default in your monthly payment, you are charged penalty. And when you pay only the minimum amount, you pay credit card charges. The charges are in form of interest that is basically high.
First of the credit card charges – service or application fees

Once your credit card application is approved, you will pay the first of the basic credit card charges. These are the fees – application, membership, processing or service fees. These are all the same fees. Collected fees can vary from one kind of credit card to another. However, for marketing purposes the application, processing, membership or service fee, however it is called by the credit card company, is waived for new accounts. For renewals, the annual membership fee may be waived also for good paying clients. These fees are one-time payments and in a fixed amount determined by the credit card company you have applied for.
Finance and other different charges

In addition to the service, application or membership fee, basic credit card charges include monthly interest. This finance charge varies from card to card. It also varies from card user to card user.
Interest is applied on the previous month balance plus transactions for the current month. This is charged only when your credit card balance go beyond the payment due date. All cards charge interest rates unless there is an offer of 0% interest. The interest is calculated on the basis of the credit card’s APR or yearly interest and average monthly balance. It is charged once for every billing cycle.
All other costs or charges on the credit card usage

What most naïve credit card users know are service fees and interest charges only. Finding additional charges in the billing statement is surprising. Are these hidden charges? No they are not but were not made clear to new credit cardholders.
• Late fee or penalty charge – A charge that is applied to your total balance when you fail to pay at least the minimum on due date. Until the required payment is made, these credit card charges will form part of the total amount due. The rate is usually higher than the interest rate.

• Cash advance charge – Some cards allow a holder to withdrawn through an ATM machine a cash advance. Every cash advance transaction will be charged with this fee and the amount withdrawn will carry interest that starts from the day you made the withdrawal. This has higher interest rate.

• Over-the-limit- fee – Credit card companies charge a fee for a balance that goes beyond credit limit. You are only allowed two-month over-the-limit.

• Balance transfer fee – This is a fee for transfer of balance to another credit card and is charged only one time.

• Returned check fee – Returned check used for payment of credit card bill is charged this fee and is levied every time a check is returned for whatever reason.

• Foreign transaction fee – This is one kind of credit card charges that is imposed when you purchased goods using foreign currency.

When you receive your credit card billing statement and you doubt the amount, the discrepancy may be due to credit card charges that you are not aware of. It is important that you review your statement carefully and report any doubts.

Different Credit Card Types, Which One Will You Pick?

 
As you receive advertising brochures, receive phone calls about credit card offers, you fall in a quandary as to how many kinds of credit card types there are. It is not only the different kinds but they too offer services and perks. For your part, it may be easier to decide if you know about each of the credit cards. What you should carefully study about the offers are the fees, interest and other charges. Some are not divulged and once you commit a transaction with an imposed charge, you will be surprised.
 

You should know the credit card types and the benefits they offer. As a starter, we discuss the four common types of credit cards prevailing in the United States. You will learn how great it would be to have credit cards. You purchase up to the limit of your card. This is a very useful accommodation if and only if you know how to handle purchases and payments correctly. By this, it is paramount that you pay your bills reflected in the billing statement on due date and for your purchases, ensure that you do not go over-the-limit. Failure to pay your credit card on time will be reflected in your credit rating report. The credit card is also a good way to build good credit history.

Here are four of the major credit cards that are commonly used by many Americans.
 

Major credit card types – Visacard and Mastercard

The most popular major credit card types are Visacard and Mastercard. Both are issued all over the world and are available from most companies and banks. The credit limits per card vary widely which in most cases depend on your credit score as well as your qualifications and financial position.
 

Your credit card allows you to make purchases charged to your card up to your limit. You can pay your balance in full or at least a minimum balance. You will receive your monthly billing and you will find in there the required minimum balance. However, if you just pay a minimum balance, the remaining amount will be charged with interest and will be reflected in your next monthly credit card statement.
 

American Express is another kind

American Express is another popular credit card, also used globally. Initially, this company was only offering charge cards which required full payment every month. Today, the company issues credit cards to people with good credit scores. With an American Express Blue credit card, you are allowed to pay your charged purchases as you would pay a normal Visacard or Mastercard. To cope up with competition with the other two more popular major credit card types, American Express offer lots of perks and other special privileges such as travel rewards.
 

Discover credit card

A fourth type of credit card that is widespread in the United States is Discover. This is not accepted in many countries such that it does not have global acceptance. However, Americans with outstanding credit records can apply and be awarded a Discover credit card. Discover market is extended to students through the US college credit card program. Because of the high starting credit line that Discover offers, it becomes competitive with Visa and Mastercard. Like the previously mentioned three credit card types, it also offers many amenities.
 

Rewards program include free airline tickets as well as hotel accommodations. The rewards of course are dependent on how much had been charged to your Discover credit card.

Credit card types are numerous and these four are only some of them. However, credit card users are more familiar with Visa and Mastercard.

What You Need To Know If You Want to Get a Credit Card Today

 
How will you be able to get a credit card today? Credit cards although marketed extensively are not just handed to every person applying for them. Every credit card company has standard requirements. You should know these and if you meet them, you have a big chance of getting a card in your first try.
 

What can prevent you and other consumers to get a credit card today? There are several factors and most credit companies will really want to grant you the plastic money. They want to make you their customer but they can have reason to turn down your application. Have you been listed in the credit rating bureau to have a poor credit score? Good credit history is just one of the requirements and you have to comply with more.
 

Know the requirements to get a credit card today

One of the first requirements is age. To be eligible and get a credit card today, you must be 18 years of age and you are either a full time student or an income earner.
You must be employed and with a steady income you have a source for bill payment. The higher your income is, the better you have proof that you are capable of paying your bill. Payment made on time can improve your credit rating and in the future, you will be able to get other credit cards or your existing card will have an increased credit limit.
 

Age requirement has something to do with maturity. A mature person will be able to see to it that credit card bill is paid on time. Furthermore, a mature individual will be able to have control of his expenses. If you do not consistently use up the entire limit, this will gain you a better credit score.
You must also be able to provide permanent residential address; this is for the mailing of your billing statement. Some credit card companies will require for guarantors.
 

Application process

There are three ways to apply for a credit card. One is to submit your application form cum requirements to the brick and mortar office of the credit card firm or affiliated bank. You will find telemarketers who will be offering you credit card application. You can fill up the form and submit to the marketing people. Lastly, the best way to get a credit card today is to apply online. A number of credit card issuers issue approval instantly to online applications. In minutes, you will know if you were able to get a credit card today. The plastic card will then be mailed to you.
 

In addition to these three methods, you can also mail a duly accomplished written application form. This will take longer because of the time frame from mailing to the receiving of the company then mailing back to you the notice of approval. Traditional credit card companies will be more than willing to expedite your application form but a fee will be charged for fast delivery.
 

Bases of credit card company’s decision

You know that there could be hitches to the application because the credit card company will have to check your application if it follows the standard procedure to get a credit card today. The issuing company will check how many credit cards are being used and your credit limit for each. Your monthly salary will be matched to the total credit limits. Will it suffice to cover payment for all usages?
Another thing considered is your character; this is not about your personality rather this pertains to your financial cash flow. Your length of tenure or employment is also considered. Job stability will ascertain your financial capability.
 

Collateral may not really be required. But if you can offer something that will secure the credit card purchases, then it is likely that you can get a credit card today. Remember that a credit card is also a loan, a revolving credit line type. Being like a loan, collateral will mean security, a feature that most lenders look for.