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Wednesday, 27-Apr-2011 12:00 Email | Share | | Bookmark
How To Choose The Best Credit Cards

There are many options for credit cards these days, and what suits your friend may not be the right one for you. You need to consider your business and personal needs as well as your spending habits, before zeroing in on one.

Before you select the best credit cards, you must consider whether you are planning to settle the balance on a monthly balance or not. If you are the type who settles his bills promptly, then you need not bother about factors like APR's or any other fees, as these may not be applicable to you. But there are some who carry their balance for months, and in this case you need to realize that the interest will keep accruing and get compounded. In this case choosing the best credit cards will depend on the APR factor. You need to select a credit card that has the lowest or fixed rate. APR is the annual percentage rate, which is rate of interest charged yearly including the fees for obtaining your credit card. This might be anywhere between 3% up to 20% or even more.

The type of interest rates on the credit card should also be considered in order to qualify as best credit cards and Credit Card Offers. There are fixed interest rates and variable ones. The former is always to be preferred, as the variable ones can change at random. There are also other fees to be noted, such as annual fees, processing fees and so on. There are also fees to be paid when you exceed your credit limit. Some fees are even charged for transferring your balance to another card.

Another factor to consider while selecting is the credit limits being offered. This is a competitive business, and you can take your pick, as some of the firms offer very low limits, while others can offer you much more. There are advantages to selecting the higher credit limit, but this could also result in spending more than you should, though it can help to improve your credit score. Some companies even offer grace periods for late payments and you could look for these. Take care to go into all details while speaking to the company representative in order to avail of the best credit cards.

Hence, while choosing credit cards, don't just select the first one that comes along your way, and take time to compare several of them, as it could leave you with a huge debt in no time. You can then opt for the best credit cards with the lowest interest rates.


Wednesday, 27-Apr-2011 12:00 Email | Share | | Bookmark
Low Apr Credit Cards - Choose The Right One

There are many types of credit cards available today, and one should those with low rates. There are those with fixed rate or those with a low rate, which can save a lot of your money. This is especially so for those who carry the balance into the next month. In case of a fixed rate card, the annual percentage rate(APR) does not change usually, but it might be more if you are in default and have not paid up the due amount within the stipulated time, or if you have borrowed more than the limit. These kind of fixed rates are not commonly offered by credit card companies these days.

The companies usually offer an APR which is a variable one, and it is wise to select low APR credit cards. This rate will change according to the US Prime rate or LIBOR, depending on the company, by means of adding a margin to the index rate. The Prime rate is a variable factor depending on the economy, and this makes your APR change. This is applied on a monthly basis and at times it can be advantageous, as it might go down.

You must select low APR credit cards, which give you an introductory offer of a low APR rate, whereby you can make purchases for an initial period at a low annual rate. But after the rate is over, then the standard APR rate will apply for your balance, so it is better to pay off while the APR is still low. This is different from a balance transfer account, where you are allowed to change or transfer your existing account to the new card at a low rate. The rate for the purchases is quite different from this rate for balance transfers. Some credit card companies have the same rate for balance transfer as well as for purchase.

To sum up, you need to go in for a card with low interest rates, but even after selecting low interest credit cards, it is a good idea to always pay off your credit balance every month in time. If that is not possible, the next option would be to go in for a low APR. Make sure that you don't go into the default rate, which might sometimes be as high as 30%. Sometimes, it is also possibly to get it lowered by asking the issuer to consider your case as a courtesy for the first time. Another option in this situation is to transfer your balance to a lower rate credit card.


Wednesday, 27-Apr-2011 12:00 Email | Share | | Bookmark
Platinum Credit Cards – Prestigious Cards

If you have a good credit history, without any outstanding dues or default, then you can surely avail of the best credit cards, such as platinum credit cards. These are given to people who have good credit ratings and also above a certain fixed income of about $20,000 annually. These kinds of credit cards offer numerous advantages as they plenty of outstanding features, which are superior to those offered in gold and standard credit cards. In fact, many people consider it a status symbol to posses such cards. However, it is possible nowadays to avail of such cards even for the average-income group.

Going in for platinum credit cards is a good idea for those who need to use their cards very often and also if you are the type to make a lot of high-end purchases, but these should also be paid back on time, that is, at the end of the month. For high-end incomes, you can avail of higher credit limits with even no-limit credit being given to some. Bu it all depends on your credit rating, which will decide whether you qualify for such credit cards.

It can be considered a great boon to be in possession of such cards, as the person need not pay high interest for such credit, as he is considered as a safe bet. The annual fee is also substantially low and many companies also offer additional perks, like some additional free air miles. Some of them even offer reward points and cash back schemes on such platinum credit cards.

Some other facilities offered are that they give you protection against sudden illness, hospitalization, a temporary unemployment status and other such unforeseen circumstances. If your credit card is stolen or lost, then also you can get protection from the company, and if it is operated online, then they protect you from fraud practices. They also offer you the option of your family or friends using your credit card. Other facilities may include insurance for travel and also special services while traveling.

However, for those who do not qualify for such cards, you can go in for the standard or gold card. You need to manage such cards very carefully, or you could end up spending a lot in the long run. You must pay up all the dues and never overspend more than their income, as they might risk getting a negative credit rating.

You can do some comparisons and choose the best platinum credit cards, offering the lowest interest rates and the best rewards, but read all the terms and conditions and the APR details before getting one.


Wednesday, 27-Apr-2011 12:00 Email | Share | | Bookmark
Credit Cards - Do The Balancing Act

Credit cards can provide a very convenient way for urgent shopping and for paying up other expenses, as they are the best way to borrow, but if you use it in the wrong way, then you could end up in a big debt and in bigger trouble. It's not a bad thing to be in debt, but your debt should be good debts, which you can easily repay in the allotted time. When you purchase credit cards, you should realize that you should not use it for supplementing your daily spending. This could be a sure-fire way of leading to debt crisis. All borrowing from the credit card should be done in a planned way and make it as cheap as possible.

When you borrow, make sure that you borrow as little as you possibly can and it is always a good idea to repay as soon as possible, as the quicker you repay, the cheaper it will be for you. If you have a lot of existing debt, then the solution is not to go in for a new credit card to pay off old debts. This could lead to a greater crisis. It is better to look for other ways of paying off your debts. You should also be very watchful while you purchase credit cards, as there are many companies out there who are ready to fleece you, and you should read all the terms and conditions carefully. If you miss a payment or pay late, you stand to lose the cheap interest rates that the company is offering you. You may also be fined and this may lead to affecting your credit score negatively.

Try not to use your credit card to fill in the gaps that your income cannot meet every month, as this could lead to a constant growth of your debt and keep spiraling. But used sensibly, a credit card can be much better than taking loans. You could use it for a special and unforeseen occasion or using it to buy something in bulk, whereby you are saving in an indirect way. You can also use your credit card to pay for your insurance on a yearly basis, where the interest rate for paying on a monthly basis works out to be more. In this way, you will be actually saving by using a credit card.

When you purchase credit cards, you need to be disciplined and see that you don't miss out on any of the repayments, as this will lead to a hike in the interest rate.


Tuesday, 26-Apr-2011 05:43 Email | Share | | Bookmark
Credit Cards for Bad Credit – Ways and Means

There are many bad creditors, which mean that they are defaulters who have borrowed credit but have not been able to make the repayment. This happens due to borrowing endless amount of money from money lenders in order to pay up for something or the other. There can be several reasons for becoming a defaulter, such as student loans, many debts, and several overdues in payment and so on. When your standard of living or expenses are much higher than your earning ability, then you are liable to become a defaulter on your credit. You then go in for additional credit which leads you tobad credit.

Once you have established yourself as a defaulter, then you get a blemish on your credit record and it becomes very difficult for such a person to obtain funds from other firms. Yet, there are many firms that offer credit cards forbad credit too. Many banks shy away from such persons, but there are still some companies offering them a second chance. Your bad credit can be in the form of arrears, or late payments. Sometimes bad credit is due to insolvency, bankruptcy or overdue on payment.

These companies offering credit cards for bad credit also give them some easy repayment options, and make borrowing hassle-free for these persons. However, the amount that you can apply for will depend on the individual repayment capacity. They usually offer such credits against securedloans and unsecured loans. In case of secured loans, the person has to put up any of his assets, such as jewelry, cars, home or any other asset that he possesses in the form of stocks at risk and then he is given the credit card. In case of the unsecured loans which are offered in the form of credit cards for bad credit, you don’t need to pledge your property or assets, but the snag here is that the rate of interest would be slightly higher in this case, as it is more risky for the agency. As soon as your application is approved by the concerned company, the money is put into your account.

However, some of the companies offering such Bad Credit Credit Cards do have some criteria that you may have to fulfill. These could be in the form of conditions regarding a fixed monthly income and possessing a savings account, and so on. You can then borrow money for paying off all your emergency expenses, such as household bills, medical bills and so on


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