Credit Card Security Advice

Which of the following is the biggest threat to your credit card security?

a) Shopping online with a credit cardb) Shopping in a real store with your credit cardc) Ordering something over the phone with your credit card

The answer may surprise you. It's b - shopping in a real store with a credit card. Despite all the controversy and publicity surrounding internet phishing and identity theft, shopping online is a relatively safe process. Credit card fraudsters are far more likely to get your credit card numbers and ID information by hacking into a bank or credit card company computer than they are to hack into an online store's server.

The truth is that there are some dangers to using credit cards in ANY situation - and there are ways to safeguard your information and security no matter where you shop with your credit card.

When shopping online…

·Only shop reputable sites. If a shopping web site has been around for a while, it's a pretty good bet that they're legitimate. ·Always type the name of a site into your browser address bar rather than clicking on a link in your email. That way you'll be sure that you're going to the company's actual site and not a fake mirror.·Use an online money transfer service rather than your usual credit card. You can fund an account with a service like Paypal via your credit card or bank account - but your information isn't freely available. When you pay via PayPal, the only information that the seller gets about you is your email address.

When shopping in a real store…

·Keep your eye on your credit card. Stores with the latest tech in credit card scanning won't ever even handle your card - you slide it in the scanner yourself and it never leaves your possession. In stores that aren't that hip yet, keep your eye on what's happening with your card, and ALWAYS take your credit card receipt. Until everyone is using the latest scanners and printers that only print out the last four digits of your credit card, discarded credit card receipts are the easiest way for thieves to get hold of your credit card numbers.

When shopping by phone…

·Never, ever, ever give your credit card numbers to someone who called you. No matter how good a deal sounds, insist on being given the time to confirm the identity and company of the person you're speaking with.

As you can see, for the most part, common sense is all it takes to keep your credit card information safe!

Read More..

How to Make the Most of Your Credit Card Rewards

Many great credit card companies are now offering their loyal cardholders credit card rewards. This provides the cardholder an opportunity to gain prizes just because they use their card. It is a great incentive for those that may not use their card much. The more credit card rewards they will receive, the more likely they are to use their card more frequently. Credit card companies realize that they profit more when cardholders use their cards more, and so the process is profitable to all involved.
Programs
Each card that offers credit card rewards will have slightly different programs than the rest. Some will offer a cash back reward, which is essentially giving the cardholder a certain percentage of their spending amount back. This is usually done annually or may be done monthly. These cards are great for those who use their cards frequently but don’t have time to deal with points and other credit card rewards other cards may offer. Some credit cards rewards will be offered in the form of sky miles or other flying incentives. These credit card rewards are perfect for the cardholder who travels frequently. If the cardholder is saving up their points for a free flight, they will be much more likely to use their card rather than cash. Other credit card rewards include other miscellaneous prizes. Some cards will allow their cardholders to choose from a selection of prizes.
Making The Most Of Rewards
The best way to make the most of your credit card rewards is by simply taking advantage of them. Credit card companies are amazed at the amount of cardholders who never redeem their rewards. They use their cards frequently and accumulate prizes, however they never take the time to get the prizes. The thing about credit card rewards is that unless you have a cash back program, you have to contact the company to get your prizes. Many cardholders forget about the programs or simply don’t have time to deal with them. If you do have your eyes on a prize, then you can make the most of the credit card rewards programs by using your card frequently. Use your card instead of cash and simply pay off the balance before any interest collects. This way you can get closer to your prize without being out any extra cash.
Credit card rewards are a wonderful way to get excited about using your credit card. Those who usually carry cards filled to their maximum and who only pay the minimum each month may not be as excited about the credit card rewards. Unless you are able to use the card, you will not benefit. So, if your card has reached its maximum balance, work on paying it down to start benefiting from the credit cards rewards programs.

Read More..

Credit Card Comparisons Guide

Shopping around for a credit card can save you money on interest and fees. You’ll want to find one with features that match your needs. This information can help you

Understand the features of credit cards

Compare credit card features and costs

Know your rights when using your credit card

File a complaint if you have a problem with your credit card
How will you use your card?
The first step in choosing a credit card is thinking about how you will use it.

If you expect to always pay your monthly bill in full--and other features such as frequent flyer miles don’t interest you--your best choice may be a card that has no annual fee and offers a longer grace period.

If you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).

If you expect to use your card to get cash advances, you’ll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards charge a higher APR for cash advances than for purchases.
What’s the APR?
The annual percentage rate--APR--is the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest rate as a yearly rate.
How long is the Grace Period?
The grace period is the number of days you have to pay your bill in full without triggering a finance charge. For example, the credit card company may say that you have “25 days from the statement date, provided you paid your previous balance in full by the due date.” The statement date is given on the bill.The grace period usually applies only to new purchases. Most credit cards do not give a grace period for cash advances and balance transfers. Instead, interest charges start right away.
If you carried over any part of your balance from the preceding month, you may not have a grace period for new purchases. Instead, you may be charged interest as soon as you make a purchase (in addition to being charged interest on the earlier balance you have not paid off). Look on the credit card application for information about the “method of computing the balance for purchases” to see if new purchases are included or excluded. Information on methods of computing the balance is in the section “How is the finance charge calculated?”
These are just some of the considerations you will have to be aware of when choosing a credit card. The bottom line is that you should always read the small print and think about what it is you are agreeing to and whether or not this is what you need.

Read More..

All About Choosing the Best Credit Card

Credit card holder, 25 years old and working in United States for past one year was on the verge of going bald from trying to figure out the best credit card among the tons of emails that he received almost daily about the "pre approved credit cards". Chances are that you too maybe going through the same dilemma of choosing the right credit card. As choosing the right credit card is not such an easy task as it looks at the first go, it becomes essential that you know some of the important points before you eventually purchase the best credit card for yourself.
Most of the credit cards, which call themselves as the best credit cards, come with almost the same features, offering more or less the same rate of interest. In such a case, getting the best credit card becomes even more of an ordeal for the buyer. However when the rate of interest is more or less the same, one should look for incentives offered by the various card companies in order to get the best credit card. Incentives and rewards can be of various kinds; depending on them you can opt for the best credit card. For instance you get reward points for every purchase that you make from the credit card and these points are redeemable from certain stores and outlets.
There are three main categories of cards: secured, regular and reward or rebate. Where you fall on the scale depends upon your credit history. If you’re in the process of trying to rebuild your credit, a secured card can help you achieve that. The other categories are differentiated by the types of services they afford. While reward cards generally have great perks, the higher interest rates that they normally charge can be costly if you do not pay your balance in full every month.
Then there are cash back incentives. This definitely is a strong criterion for the best credit card. According to this scheme, you get a percentage of cash back at every purchase that you make. You can also convert your redeemable points into discount for various airline flights. Most of the buyers make the mistake of thinking that the reward schemes are mostly similar whereas the difference in schemes offered by different card companies is extensive. So first of all do your research about different reward schemes and then choose the best credit card.
Nowadays banks have started offering balance transfer credit cards, which are becoming increasingly popular for people deciding on the best credit card for them. Balance transfer cards allow you to consolidate you debt onto one card, thus helping you save on interest payment, hence recommended by experts as the best credit card for debtors.
Getting the best credit card wouldn’t be a difficult task when loaded with the right information. So research about the incentives and other schemes and then only go for choosing the right credit card. It might take a little time but at least you can be sure that it’s the best credit card.

Read More..

About Sports Affinity Credit Cards

Affinity cards are a special kind of credit card which are linked into the cardholder's lifestyle in some way, offering benefits of a more personalized nature than the typically available 0% balance transfer offers and the like. Examples of affinity programs are charity credit cards, where a donation is made to a particular charitable organisation whenever the card is used, or a travel rewards card which lets you build up points which you can redeem against a hotel chain or airline which you use frequently.
A further type of affinity card is becoming more and more popular: the sports team affinity card, aimed at supporters of a particular football team or other sporting club.
The most obvious difference between a sports card and a normal one is in the actual appearance of the card, which will generally feature the logo or badge of the team chosen. This in itself is a desirable feature for many fans, as it's a very visible declaration of your allegiance to your team, and is sure to attract comment from other fans.
Perhaps the most important aspect of sports affinity cards is a financial one, however. In much the same way as charity credit cards work, a sports card lets you contribute to the financial wellbeing of your team with no direct cost to yourself. A small percentage of everything you spend will be donated by the card issuer to the team linked to the card account, and while this may amount to only a small sum in the case of individual cardholders, the money involved can mount up quickly if thousands or tens of thousands of people regularly use the card.
In many cases, the money raised by starting a sports affinity card program will be used by the team involved to fund the longterm health of the club, often by investing in youth academies and development. This means that by using the card for regular spending, you're helping to secure the success of your team well into the future.
Not only can your card use benefit your team, it can also feature attractive personal benefits such as discounts on club merchandise, a rewards scheme where you can build up points to offset against the costs of buying tickets, or even priority access to big games, depending on the specific card involved.
So, are there any downsides? Like all credit cards that offer some sort of tempting carrot to entice people to apply, the benefits offered need to be paid for somehow, and this is usually in the form of a higher standard APR or interest rate. It's unlikely that you'll find an affinity card of any variety listed in the 'best value' or 'lowest APR' tables. If you use your card for borrowing rather than simply as a convenient payment method, the sports-related benefits may well be overshadowed by the increased costs of the card.
Having said that, unless you're planning to carry a substantial balance on your card from month to month, the headline interest rate is perhaps not as important to you as the fact that your card will be showing your support for your team both visibly and financially.

Read More..

A smart way to manage credit cards

Credit cards are a great way to help you to control your finances. It’s true that occasionally we may make poor decisions with our money, while other times the events in our life can take us beyond what we want and we are sadly left holding the bill. If you have found that to be the case for you, you may want to consider this great way to manage your credit card debt.
If you are faced with several large credit card bills, a UK secured loan is one choice for you to consider. Many people are selecting a UK secured loan to add to their financial portfolio and you might want to consider using one to deal with those credit card bills. Here's how.
Gather together all of your credit card bills and add up the amount that you owe. Factor in the extra expenses you haven't heard on your credit cards since you receive those bills. Add to that about ten or twenty per cent, which is the "whoops, I forgot about that" factor. Then, with that figure, start shopping around. There are many UK secured loan institutions that want to do business with you.
Get the loan and pay off your credit card bills. If you think that you may still use your credit cards or, you may want to hide them away so that you reduce the temptation to use them.
Now, instead of having several credit card bills at a high interest rate due by the end of the month, you now have one bill that is due once a month at a lower rate. This is called consolidation. At first glance it may not seem obvious why you'd want to do this but there are two reasons:
The first reason is that you will save a lot of money on interest rates. In fact, some UK secured loan interest rates might be as much as half of regular credit card interest rates.
The second reason is that you will get one bill with a fixed amount due every month rather than several bills with several amounts due throughout the month. This will help you budget.
Credit cards can be an excellent tool to help you manage your finances and by the things you want or need. But when things go a ride and your bills get out of hand, which happens to be even the best of us, choosing a UK secured loan as a way to consolidate those bills will help you reduce your interest rates and set up a fixed amount of payment. Reduced interest rates will ultimately increase the amount of money you keep and a fixed amount due every month will help you plan your budget.

Read More..

Balance Transfer Credit Card Facts and Myths

There are a number of balance transfer credit card facts and myths that are important to be cleared up. Understanding these facts and myths will help you to better keep your finances under control.
Myth: I can get arrested for continually transferring my credit card balances.
Legally, you can transfer your credit card balances as often as you want. So long as you are making your payments and not attempting to defraud your lender, the law does not concern itself with how you choose to handle you finances. It is, however, a bad practice to continually move your balance transfer credit card to another. This is because, in order to do this, you need to open up several credit card accounts. When it comes to your credit rating, having a large number of open accounts can lead to a bad credit rating.
Credit cards utilize what is known as "revolving credit." This credit is different from something such as a car payment, which is paid back in installments. Too much available revolving credit puts you in the high-risk category. The basic thought process behind this is that it would be too easy for you to acquire a great deal of revolving credit, use it all up, and then default on your payments. Therefore, using balance transfer credit cards to consolidate bills one time is a good idea, but it shouldn't be a routine practice.
Myth: The best balance transfer credit cards have a 0.00% APR.
While it is true that the best balance transfer credit cards should offer a 0.00% APR, there are more factors to consider when choosing the best card. For starters, you need to learn more about this special APR. Do you need to complete the balance transfer at the time of application in order to qualify for the 0.00% APR, or do you have a window of time during which you make transfers? Does the 0.00% APR last for the lifetime of the balance transfer, or will it rise to an above average APR within a few months? Does the balance transfer credit card offer other benefits, such as travel insurance and fraud protection? Does the card offer a low APR for purchases, as well, or is it best to use the balance transfer credit card only for transfers?
Myth: Balance transfer credit cards are the key to getting out of debt.
While balance transfer credit cards can assist you in taking control of your debt, they should not be considered your primary means of getting out of debt. Instead, you should look at the balance transfer credit card as one tool in your tool belt of obtaining financial freedom. You can consolidate all of your higher interest rate credit cards onto one balance transfer credit card, thereby paying less in finance charges. It also makes it easier for you to keep track of your debts and your bills because all of your payments will be made to just one credit card. Nonetheless, it takes responsibility, diligence, and proper planning to get out of debt - not just getting a balance transfer credit card.
Myth: Balance transfer credit cards are hard to find.
Many people mistakenly believe it is difficult to find a great balance transfer credit card, but this is not true. Many credit card companies offer special introductory rates in order to entice people to apply to their card. After all, the more money you transfer to their card, the more money they can potentially make on the finance charges you have to pay. In fact, you might even be able to make a card you currently have into a balance transfer credit card by calling the credit card company and asking them if they would be willing to give you a special deal. Many companies will waive fees and lower interest rates to keep you with them.

Read More..

Balance Transfer Credit Card - The Easy Way To Avoid High APRs

Nowadays, credit cards offer many features designed to appeal to everyone -- from cash back and rebate offers to point systems and frequent flyer miles. Many of these offers work to your advantage only if you make large and frequent purchase. On the same hand, you get more in return if you can pay off the balance each month. Otherwise, the annual fees and high interest rates typically found on these types of cards will make the rewards seem worthless. But what about the credit card holders who always carry a balance or can't seem to get out from under the tight grip of debt? Balance transfer credit cards might be a temporary solution to your problem.
Are You Drowning In Debt?
Many Americans have several credit cards and are in debt up to their eyeballs. It is easy to fall prey to the trap set by creditors. Credit card companies and banks make it tempting to spend beyond your means, overextending yourself to the point of no return. Gaining control of your debt can be difficult. And, if you can only afford minimum payments on your accounts that barely puts a dent in the total amount you owe. It can take years (or decades) to get that card paid off. Plus, you'll end losing hundreds and thousands of extra money in finance charges.
But don't fret! Balance transfers can pull you out from under and have you back on track or debt free.
Grab Hold Of The Lifesaver
If you're finances are a little out of control but you've managed to maintain good credit then you're in luck. Grab a hold of the floatation device and see the light again. You don't have to let revolving credit rule you. Turn the tables and take control of it - benefit from the use of a credit card balance transfer.
Credit card balance transfer terms can vary greatly so it's in your best interest to shop around for the best deal. Many balance transfer cards offer 0% APR on all balance transfers. Some have higher introductory rates from 2% to 9% APR or more.
Balance transfer interest rates usually apply for a limited time. This could be 3 months, 6 months, 9 months or 12 months. Some cards (rare cards) even offer transfer rates for an unlimited number of months. Once the time period has ended, the normal interest rate is applied. This can be anywhere from approximately 9% APR to as high as 30% APR.
Getting Your Head Above Water
Some may compare the use of balance transfers to "robbing Peter to pay Paul." In other words, you shift your money around from one place to another trying to avoid the consequences of poor money management. It may seem like you are handling your situation, when in reality you are not. However, when used carefully, a credit card balance transfer from high interest cards to balance transfer credit cards can give you more breathing room and time to get caught up.
Balance transfer credit cards offer many options, particular for consumers who always carry a balance on their credit or who may be in over the heads with credit card debt. These cards can help you use a credit card balance transfer to get out from under hold of plastic and back in control of your finances. If you're stuck with high interest rates and realize how much money you are losing than balance transfer credit cards are for you. Just be sure not to let the dangerous snare of the plastic monster get a hold of you again.

Read More..

Avoid credit card traps

If you’re like most Americans, offers for credit cards arrive in your mail on a daily basis. Why are credit card companies so eager for your business? There are many reasons.
Credit cards, for one thing, are not free cash. Funny enough, many customers think of them this way, and that—aha!—is how credit card companies make their money.
You’ll notice when you read through the fine print about credit cards that there are varying APRs, or annual percentage rates. This refers to the amount of interest you’ll pay on credit card charges if you don’t pay your monthly balance in full. Think about the last time you went shopping. Did you look at the tags and make sure everything you bought could be paid with your monthly paycheck? If not, you are a credit card company’s dream come true. You see, these companies bank on the chance that consumers will use their credit cards to buy more than they can actually afford at the time of purchase. When the bill comes and it can’t be paid in full, the customer pays interest on this borrowed amount, and that interest accrues daily. This money goes right into the credit card company’s bank account. With thousands of customers falling into this predicament on a monthly basis, you can see where the companies get rich quick.
But how can you avoid falling into the credit card trap? A little forethought and budget planning can help you prevent paying interest and still allow you to benefit from credit card perks.
Take mileage credit cards, for example. Most airlines offer credit cards that earn you frequent flier miles based on the number of dollars you spend. Enticing, right? Sure. Just be careful to know how much you are able to spend in a month, and don’t let yourself go over the top. It’s easy to check your credit card balance online or by telephone. Know when the closing date is for your monthly statement, and make sure you stay below your limit. That way you can take advantage of the bonus without digging yourself into a rut.
Speaking of the credit card rut, let’s go back to that interest thing. Did you know that interest, if left unpaid, also accrues interest? Take a look at this example. You have racked up $10 in interest on your credit cards in one month, based on a balance of $100. (This assumes a 10% monthly interest rate.) Because you leave that unpaid, the next month’s interest accrues on the new balance of $110. That means the next month you owe an additional $11! That’s a $21 total fee for your $100 in purchases. Did you really find a bargain when you bought that jacket at 20% off? Probably not.
If you buy responsibly and keep track of your purchases, you can avoid credit card traps. Be a smart consumer, and credit cards can work in your favor.

Read More..

Balance Transfer Credit Card – Benefits of Competition

The balance transfer credit card is one of the starkest examples of how competition benefits the end consumer. Consumers with good credit and high credit card usage can use balance transfer credit card to save dollars from a few hundred to much more depending on their credit card usage and the amount of balance transfer.
In simple terms, if you have good credit, companies are looking to provide the offer, even if they do so at a lower rate of interest. You benefit from low interest and they acquire a valuable customer. So, a balance transfer credit card enables you to transfer your existing balance or even debt to a credit card with low or no interest.
Credit Card Balance Transfers Math
A look at the math of a credit card balance transfer will make the situation clearer. For instance, suppose you apply for balance transfer credit card from a reputed online vendor. Now, your interest on credit card debt runs up to, say $1450 dollars a year at an average with your credit card that has an APR of 10.99% assuming you have a good credit rating. Now the competing credit card company offers you a credit card with a 0% introductory APR for the first 12 months. By making a simple balance transfer to your new credit card, you save on one year’s credit card interest. Now that is math that one can live with!
Shopping Guide To Balance Transfer Credit Cards
Initially consider the size of the balance transfers to be made, and correspondingly the amount of financial gain that follows. The period of 0% APR is important, how much credit do you expect to use, and correspondingly how much interest will you save from credit card balance transfers during the offer.Do the balance transfers incur a transaction fee and if so how much? Consider how long the introductory APR lasts and the APR after that in your calculations. And, as always, be sure to read the fine print. You don’t want to encounter unexpected costs. The best offer sometimes is not the one with the lowest rate of interest.
Balance Transfer Trivia
The best type of balance transfer credit cards are the ones with a 0% rate of interest. Many companies have begun offering such cards, at an incredible introductory period of up to one year. It is possible to transfer your debt to a credit card with a 0% APR, and then retransfer it to another one at the end of the introductory APR period on the existing card. However this is not a recommended action as it can result in a lower credit rating for you. Credit card balance transfers can be done online; most companies offer this system of balance transfer.
Credit Card Balance Transfers In A Nutshell
Substantial savings can result if you get you balance transfer credit card arithmetic right. Before applying for one look, be sure to look at the fine print. Good financial sense with credit card balance transfers can make for good finances. If you have spent substantially utilizing "plastic" money, a balance transfer credit card just might make good financial sense for you.

Read More..

Avoid Credit card frauds

With overwhelming use of credit cards, there is a need to keep check on the increasing credit card fraud that is dramatically rising on the internet. Internet users know that it is safe to enter their credit card number on a secure online form rather than giving it in a restaurant to pay off. Research shows that there is increasing number of fraudulent cases where purchases are made by mobile phones on account of credit cards of other persons that are higher than credit card fraud on the internet.
As a rule of thumb, you need to use some common sense and there are some tips that shall help you in avoiding credit card scams:
1. Always keep an eye whenever you use your credit card and get it back quickly if you have given it to some other person and try not to let your card out of your sight.
2. You need to be careful while you give your credit card to someone else and never give your account number over the phone unless you are sure that the company is a reputed one. Also it is not safe to give the credit card number over phone to any company who asks you for the same seeking excuses such as “computer problem”.
3. Don’t give any response to emails asking you to provide your credit card information and emails that ask you to go to a website and verify your personal and credit card information as these are known as “phishing” scams.
4. Don’t provide your credit card information over insecure websites.
5. You should sign your credit card as soon as you receive them and shred all the credit card applications when you receive.
6. You should not write your Pin number on the credit card or anywhere near your credit card.
7. Don’t leave your credit cards and receipts lying all around.
8. You should shield your credit card number so that others who are around you could not copy or capture it on a mobile phone or camera.
9. Always keep the list of your account numbers and expiry dates and phone numbers along with addresses of each bank issuing you a credit card at safe places. You need to update this list each time you get one new credit card.
10. Try to carry only those credit cards that you require and don’t carry extra credit cards that you need rarely.
11. You should promptly open your credit card bills and make sure that there is no bogus charge involved. You should also treat your credit card bill in the same way as you check your accounts and reconcile it monthly. Save your receipts so that you can compare them with monthly bills.
12. In case, you find any charges for which you don’t have a receipt or one you don’t recognize you need to report these charges to the credit card issuer.
13. You should destroy and void incorrect receipts and shred anything with your credit card number written upon it.
14. Don’t sign a blank credit card receipt and you can carefully draw a line through the blank portions of the receipts where there is chance to add any fraudulent charges.
15. Even though carbon paper is not much in use but if there is any carbon used in a credit card transaction you should destroy it immediately.
16. Don’t write your credit card account number in a public place for example a postcard or from a place that it is evident to others.
17. Its good if you carry your credit cards separately from your wallet.
18. Never lend your credit card to others and if you move from your existing residence, do notify your card issuer about the change in address.

Read More..

Avoid Credit Card Balance Transfers Pitfalls

Despite many card providers suffering falling profits and staggering rises in the level of bad debts, competition is still rife within the market and providers continue to launch headline ‘best buy’ deals. Andrew Britchford, credit card analyst from Moneyfacts.co.uk explains how consumers can avoid some of the common pitfalls associated with credit card deals and make the best of the offers available. Choosing the right card can be more complicated than you may think.
“When choosing a credit card there are many factors to consider in addition to the rate, including introductory offers, balance transfer deals, fees, incentives and, if you dare to venture into the small print, the number of interest free days, repayment order and how the interest is charged. These factors can soon reduce the benefits of an apparently great deal.
“Consumers looking for a multi purpose card may find it difficult to find a card that offers competitive terms across the range of account facilities. Providers often dangle one carrot by way of a competitive deal either on balance transfer rates, introductory or standard purchase rates in the hope the consumer will feast upon other facilities, and this is often where providers can earn.
“One key factor and one that is not commonly considered, is the order of repayment. By this we mean, if the consumer has items of their bill generated by different means, for example cash advances, balance transfers or purchases, if a partial repayment is made, what does it repay first? Does it repay the first transaction by date order or by the order of cost?
“A prime example of how the repayment order affects an offer is the current deal, reportedly only a trial at present, available online via the Capital One platinum card. The new card offers a market leading 15 months’ 0% on balance transfers, but the seemingly small condition of having to spend £100 on purchases before 1 July makes it almost impossible to obtain this deal in full. By encouraging consumers to use the card for dual purpose, consumers could potentially see their 0% deal vanish.
“The catch lies in the order of repayments. A dutiful consumer making their £100 purchase, then fully repaying this on their next statement will probably expect to pay no interest. But this is not the case – the £100 repayment would go towards repaying the balance transfer, while the £100 purchase would remain accruing interest of 15.9% until the combined total of the balance transfer and balance is fully repaid (assuming no further transactions).
“This may only seem a small amount, but when paid by all customers and sometimes on much greater amounts, it will soon mount up. Combined with an uncapped 2% balance transfer fee, this is a potentially lucrative area for lenders.
“If we take a worse case scenario, a consumer who, within their first month, transfers a balance of say £2K, and who then makes purchases of £2K. When their first statement arrives, they make a repayment of £2K to clear what they think is their purchase spend. However they will in fact be repaying their balance transfer, leaving the consumer with a balance of £2K accruing interest and a vanishing balance transfer deal.
“Capital One is by no means the only provider to apply repayments in this order. In fact only HSBC, Nationwide BS and Liverpool Victoria use the ‘customer friendly’ option and repay the most expensive items first. However, it is important to note that other providers do not actively encourage purchasing on a card designed for balance transfers.
“Consumers should take the time fully to understand the deal they are entering into. With so many cards available on the market, they should find a deal which matches their spending needs. Trying to avoid mixing card usage, and keeping separate cards for purchases and balance transfers will enable consumers to maximise their savings.”

Read More..

Assessing the Full Cost of a Credit Card

Credit cards do not have to end up costing you the earth. So long as you can keep your spending under control, and are able to pay off your monthly bill in full each month, your credit card will probably cost you nothing. Every purchase you make with your credit card is given an interest free period of somewhere between fifty and sixty days. This is the time between when you make the purchase and when the purchases show up on your next monthly bill. So long as you pay for it on the first bill, there will be no interest or financing charge for the purchase.
However, if you do not manage to pay for the purchase on the first bill it shows up on, then you will start to incur interest and financing charges. On credit cards, interest is charged monthly, not annually.
Also, as well as interest and financing charges, credit cards can also end up costing you in other fees. Probably the most common charge people incur with credit cards is interest charges, when they become unable to repay the full balance in full each month and instead, allow the balance to carry over to the next month.
But late payment fees are another way that credit cards ending up costing people more than they had imagined. You should always read the credit card agreement carefully to find out how much the penalty charges and fees will be if you fail to make all of your repayments on time. Some credit cards will even alter the interest rate you are charged if you fail to make payments. For example, if you are on a credit card that charges ten per cent annual percentage rate, and fail to make a repayment, the terms of your agreement may provide for the interest rate to be increased to a higher rate, for example twenty five per cent.
Another way credit cards can end up charging you more than you expected is if you travel abroad. One of the main conveniences of a credit card is that you can use it abroad when you travel. However, many credit card companies charge high loading fees for purchases you make while abroad. Not only will they charge you their currency exchange fees, but they will also charge you a percentage of the transaction as another fee.

Read More..

Bad Credit Credit Card- Offered By Many Companies

Check-books and paying with cash is becoming less frequent as more people are using plastic to pay for purchases. Checkbooks are being replaced by debit cards and the use of credit cards is rising. Online shopping has helped fuel the need for a credit card. Unfortunately people with bad credit are normally not approved for a credit card. It is not hopeless, there are avenues for those with bad credit histories to enter or return to the world of plastic.
Bad credit - credit cards are offered by many companies. This became a necessity since individuals with low incomes or credit problems would be declined for a low interest, no fee credit card. Many of these companies use what is called Risk Based Pricing. What this does is they have several types of offerings with different interest rates. The rate they offer is based on your credit score. So if you apply for one card you may get declined but offered a card with a higher rate. This is an excellent way for someone with a bit of a negative credit history to be approved for a bad credit, credit card.
So what about those individuals with no credit or extremely negative credit? They may need to look at another type of bad credit, credit card. There are several companies that target these types of people. They offer what is called a starter card. This type of card has a very high interest rate and very low credit limit. There are also a substantial amount of fees normally connected with these cards.
These cards pale in comparison to the more normal type of credit card offers but the acceptance rate is high. By using, one of these bad credit, credit cards and keeping with the terms of the agreement, making payments on time in a period of time your credit rating will be more positive. This will allow you the opportunity to apply with a better chance of acceptance for a lower rate and more favorable term credit card.
There are some individuals with such critical credit problems, a recent bankruptcy for instance, that a starter card would not be an option. If this is the case the only solution that would be left is a prepaid credit card which is sometimes called a secured card. The fact they look like a credit card it the only similarity. They need to have funds deposited to use them. You are virtually guaranteed to be accepted for this type of bad credit, credit card.
They work the same as any Mastercard or Visa but you can only spend the amount of money you have deposited. This leaves very little risk to the card issuer since you can not incur any debt with them. Because the issuer of the card will not be making any money on monthly interest rates for the balance they make their money in other ways. The can charge a fee for applying, a annual fee, an administration fee even a small percentage for every time you purchase something with the card. You will want to research several companies before applying for this type of bad credit, credit card since these fees can vary greatly.
Basically what all this means if even with a bad credit rating, nearly everyone can find a bad credit, credit card. It may take some research but it can be accomplished.

Read More..

Bad Credit, Credit Cards

When you have a bad credit rating obtaining a credit card is more difficult. Most credit card companies will just deny your request. This then makes finding a bad credit, credit card extremely important. Now when you are applying for a bad credit, credit card there are several important factors to consider.
First, if you have a bad credit and are now in a better financial situation do not make the mistake of applying for every credit card offer there is. Your credit score will lower with each credit card inquiry. To eliminate excessive inquires, reduce your selections down to one or two companies that specialize in bad credit, credit cards. The reason for this is the likely hood of being accepted is much better than it would be with a regular credit card company. This is a great first step in bringing your credit rating and history back up to an acceptable level.
Before applying or accepting an offer from a bad credit, credit card Company, it is wise to research the company and other various offers. Most companies are attempting to help you change your situation, but there are some companies that use this as a time to take advantage of your situation for their benefit. Unfortunately as a rule you will not be able to obtain low interest rates at first but some are still better than others when it comes to bad credit, credit cards.
You will want to be sure to read all the disclosures and other information in regards to any user fees, penalties, and other possible hidden costs. As an example; if you are applying for a secured credit card you will need to open a savings account with that particular bank. This amount varies and will be the collateral for your card. So your credit limit will be the same amount as your savings account and if you do not pay the bank then claims it. In addition to the deposit most will have a startup fee, a annual fee and a monthly service fee. Many companies will charge that to your credit card so you already have a balance before you actually receive the card.
You will probably not be able to do away with all extra fees, such as above, that are associated with bad credit, credit cards. But if you read all the information from several companies you should be able to find the two with the lowest interest rate and least amount of user fees.

Read More..

Avoiding Credit Card Traps

The next time you open your credit card statement, take a closer look at the small insert titled “changes to your credit card agreement”. You know the one I’m speaking about. It’s that small, folded paper written in legalese that you promise to read some other time (but of course that time never comes) or you just discard it with the other “junk” inserts.
First and foremost you must understand that using your credit card after you’ve received this notification results in your automatic “agreement” to the new terms in the notice. To prevent these new terms from affecting your account you must stop using that credit card immediately or by the date given in the notification statement.
The most common modifications to credit card agreements include new APR’s (annual percentage rates), new fees and/or changes to existing fees, or a change to the grace period on your account. The grace period is the number of days during which any credit used for purchases may be repaid in full without incurring a finance charge.
Not knowing or not keeping track of the dollar amount limit on your card is another trap you should avoid. Credit card issuers will allow you to charge a small amount over the limit set on your account. However, don’t be surprised when you get hit with an “over limit fee”, usually around $35.00 or higher, on your next statement. Also, be prepared for your APR to be increased if you go over your credit limit.
You’ll also trigger an increase to your interest rate if you miss your payment due date. Some companies consider your payment late if not received by noon or 1 p.m. on the date due. Along with the higher rate, you’ll also pay a “late fee” of $29 on up. Be sure to use the company’s preprinted envelope when sending your payment. These envelopes allow the pre-printed bar code to be scanned by the post office so that it can be delivered more efficiently.
If you’ve counted on those few extra days from the time you mail your check and the time the check clears your bank, beware! Many credit card issuers have switched from the traditional method of processing checks to a new electronic process. This new system shaves off a day or more from the traditional method it normally takes for your check to clear by electronically debiting your account.
If you’re considering paying your credit card bills online, check to see if any additional fees will be charged for using this type of payment. I recently received an e-mail message from one of my credit card companies announcing how easy it would be to make my payments online. Included in fine print at the bottom of the e-mail was this note - “A fee of up to $14.95 may be charged for this service and will be deducted from your checking account”. Hmmm, spend 37 cents on postage and mail my payment five days before the due date or pay now and get charged an additional $14.95 fee? I’ll bet you can guess which choice I made.
Taking the time to carefully read and understand your credit card agreement now will help you save money by avoiding unnecessary fees or climbing interest rates later down the road.

Read More..

Avoiding Credit Card Debt? Preventive Medicine is Best

Credit card debt is one of the most wide spread financial problems throughout many countries of the world. The convenience of using credit cards, combined with the special offers, discounts and reward systems offered by the credit card companies make this method of paying for goods the number one favorite for hundreds of millions of people. However, irrational spending or simply gradual uncontrolled spending habits can lead to a lot of accumulated debt. Preventing this is essential, as it is much easier to avoid credit card debt problems before they grow strong, instead of battling them when they are already at maximum intensity.
The temptation to use credit cards repeatedly a fact that is also supported by the reward systems and lower monthly payments - will often lead to debt problems. Here are a few tips that will help you use your credit cards more wisely and enable you to prevent the unpleasant situations of having to pay off credit card debts: Set your budget create a framework for a monthly budget, as this will enable you to get a better sense of what your earning and spending balance is. Much notice that they simply can't stick with the planned budget in this case you should leave your credit card at home when going shopping, and use cash instead. Try to pay as much of the balance for each month. Don't settle for the minimum payment, as that will gradually develop into credit card debt as you are loosing quite a lot of money to interest rates.
Always remember that your credit card is a cash substitute, nothing more. You can either carry a balance, which comes with a high interest loan or you can make the minimum payments. Although the amount of the minimum payment seems insignificant (it is usually around 3% of the entire balance), this approach will gradually put you in debt. The credit card company accepts such low payments because they get their money back from keeping you in debt for an unlimited period by using high interest rates.
Many studies have been carried out on the psychology of the credit card owner. We tend to spend more than we can afford, own things that are above our financial reality levels and gratify an immediate need with a debt that might take years to pay off. Try to adapt your spending habits to your life style and earnings. If you can't pay off the balance on a monthly basis, then you are going into a vicious circle of overspending and credit card debt. Don't use the credit card anymore, until you pay off the outstanding balance. You should also make sure to pay it off on time, as there might be late fees and different other financial penalties that will further complicate your debt problem. Your credit record will also get damaged if your payments are inconsistent and you are often late with them.
Prevent credit card debt by making sure to keep your finances simple. Use only one or two credit cards, if possible. The more cards you have the higher are the chances that you will not be able to pay them off in time. Never pay off one credit card balance with another credit card. If this happens, you need to drastically change your spending habits and come up with a good credit card management plan. Cash advances might sound attractive, but the truth is that they come with higher interest rates and you don't get a grace period. There are also transaction fees to worry about.
The credit industry is extremely dynamic, and credit card issuers are always trying new ways to convince more people to sign up with their services. Different forms of rewards, life insurances, protection plans or point systems were created to make the credit card plans more attractive. Make sure you don't let your emotional side dictate when you make a credit card related decision. Getting free gifts or free air miles sounds amazing, but is it really worth it? Try to base your choice on hard facts and a realistic financial plan, not on an advertising created fantasy.

Read More..

Avoiding Credit Card Fraud.

Credit card fraud is becoming more and more of a problem, and if you are not careful then you could lose money to fraudsters. If you are worried about fraud but are unsure how you can protect yourself and your credit cards, then this article could help you. Here are some useful tips and advice about how to protect yourself from credit card fraud:
Methods of fraud
The methods and types of fraud are increasing as criminals learn new techniques and get improved technology. The most common methods of fraud today include:
·Copying and ‘cloning’ of cards·ATM fraud·Internet card fraud·PIN number stealing
All of these methods are used more commonly than ever before to effectively steal your money. Obviously, it is impossible to totally eliminate the problem of credit card fraud, but there are things you can do to greatly reduce the risks.
Keep cards close
Make sure that you never let your cards out of your sight. Never leave cards unattended, and certainly don’t lend your card to anyone. If you are paying in a restaurant or shop, make sure you pay attention as to where your card is. A common method used to copy your card is to get the details whilst you pay, so keep an eye on your card at all times.
Check receipts
Whenever you get a receipt or a credit card bill, check that all the items and amounts are correct. If there are any amounts that you are unsure about, contact your card issuer immediately. Any paperwork that you throw away should be disposed of properly. Shred documents so that people cannot go through your rubbish and discover your card details.
Look behind you
When withdrawing money from a cash machine, make sure no one is looking over your shoulder to read your PIN. The easiest way for someone to use your card illegally is to see your PIN and then steal the card. Also, make sure you never keep a written record of your PIN, especially near your cards.
Use reputable firms
When buying on the Internet, make sure that you only purchase items from large and well-established providers. Small or unknown providers should be avoided as even if they are genuine, their security and encryption may be poor and allow fraudsters to access your details.
Keep contact numbers
If you have your card stolen or you think you have been the victim of credit card fraud, then you need to sort the problem out as quickly as possible. Keep all the contact numbers for your card issuer in a safe place so that you can call them up and sort out problems immediately. If you are careful and act quickly, you can limit the damage of fraud or prevent it occurring at all.

Read More..

Are You Worried About Credit Card Debt

Properly every one of us has some sort of credit card debt, but when do we know that it’s spiralling out of control? Well one way is if you’re pay more than 15% of your monthly salary to your credit card bills then start to worry, but a worse way of dealing with this is borrowing cash from one credit card to pay another, this will only put you into more debt.If a light comes on in your head after reading the start of this article then it’s time to sit up and take some action, don’t think for a minute you are the only one dealing with credit card debt, almost 40% of credit card holders are in this position why! I will tell you minimum payments.
Yep-minimum payments if you only pay the minimum payment on your monthly balance, what once was a small credit card bill will turn into a very costly one you’ll end up paying back thousands, and will take years to clear.
How can I help myself sort out this problem!
Well if you have more than one credit card and you pay the minimum payment on them all, then this is what to do get the credit card with the highest APR and pay the most to this card, keep paying the minimum payment to the rest of your cards once the credit card with the highest APR is cleared go on to the next highest APR and so on until all the credit cards are paid off.
Another way to help is balance transfer deals try switching your card with one that has this on offer, they also offer 0% interest free period for 6-9 months great way to save some money.
People with only one credit card try not to use your card if that’s not possible monitor what you spend you’ll be amazed at the silly things you put on your credit card, including groceries, petrol, and night’s-out you’ll be amazed at how much interest is added on. People tend to forget about money I agree that credit cards are handy but they don’t have to be used all the time, I guarantee if you monitor what you spend for a few months you will see the difference.
I know these things sound easy but it’s amazing how many people just use their plastic friend to pay for everything, and really when you sit down and think it really is just common sense, hopefully following these simple steps will get you back on track.

Read More..

Advantage Platinum Business – Secure Business Expenses With One Credit Card

For years Advanta has ingeniously utilized its financial knowledge and great managerial, promotional and customer service expertise to erect a long-term strategic client partnership. Now, they have a special Advanta business credit card on offer.
Business owners tracking for a credit card that would take care of all their business expenses will end their search at Advanta Platinum Business Card MasterCard. It’s a better alternative for your Business Card enclosing rewards you’d love to add to your kitty.
Special features
Just go through the features to find out for yourself, what is so special about Advanta Platinum Business Card MasterCard
-The platinum credit card has no annual fee on the card and for the first twelve months you’ll get an attractive 0% introductory rate on purchases and balance transfers.
-The actual reward associated with this card is the exceptional credit line of up to $50,000. Now, this is a good option for those who charge on just about everything, yet are not willing to be restricted by lower credit line.
-When the introductory tenure ends, the interest rate is a variable 13.49% for both cash advances and purchases, although the rate for cash advances is directly tied to the cardholder’s credit and will be 5.99% or 12.49% plus Prime Rate.
-With minimum of $5 you can access a cash advance of 3% and with convenience checks a maximum of $50.
Supplementary Services
-Through Credit Line request –you can manage your account online
-You’re given a free primary vehicle rental insurance
-Your money is secured with an automatic theft and damage protection cover
-Special Savings On Business Products and Services will help you to enjoy benefit of discount of up to 25% or more with subsequent companies and others as listed below:
1) Palo Alto Software 2) IBM 3) Ramada Inn 4) Penny-Wise Office Products and more
Additional benefits and services
Advanta Platinum Business Card MasterCard is always a handsome bargain in terms of the additional benefits and services you’re allowed. If you have planned to manage maximum benefits from your credit card, scamper your eyes over the additional benefits below, which you could derive as a cardholder:
-You can do free online bill payment. So, you can save your time and money by making payments to your online Advanta account
-Have your personalized and billing date and checks.
-You can avail online Statements and Management reports
-Authentic protection for purchases and extended warranties with your card
-You are getting services and products discounts from participating retailers and merchants outlets
-Attuned to both Microsoft Money software and Quicken
These are some standard business account benefits enjoyed by any average business owner resorting to Advanta Platinum Business Card MasterCard. Even though you find the rate a little high as compared to that charged to an individual with good credit, well it’s sensible if your account doesn’t carry a balance always.

Read More..