How to Choose a Credit Card
| Before accepting one of the tempting offers that are coming in the mail, that urge the client to accept, thorough research is a must. The customer must find the best deal. As a credit card is a form of payment and borrowing, the terms and conditions will affect the overall cost. The best way to choose the issuer is to compare fees and terms before opening a credit account.
Some important terms must be considered in a credit card application or any solicitations that don't require an application. When shopping for a card, the future cardholder must ask for these terms and conditions. The annual percentage rate (APR) is measuring the credit's cost. It is expressed in an annual rate. The credit card issuer must disclose the periodic rate, which is the rate applied to the outstanding balance to see the finance charge for every billing period. Some plans are allowing the issuer to change the annual percentage rate when an economic indicator (index) changes. These are the so-called variable rate programs. The rate changes can raise or lower the charge on the cardholder's account. The issuer must also provide the necessary information that discloses that the rate can change, how the rate is calculated, which index is used and what additional fee is added to determine the new rate. The future cardholder must receive all information before he becomes obligated on the account. He must know about the limitations on how often and how much his rate may change. The free period, also called the grace period, is the period that lets the cardholder to avoid the finance charges by paying the entire balance at the due date. It is important to know if thecredit card gives this grace period, even if the future owner plans to apply the account in full monthly. If there is no grace period, the card issuer can impose a charge from the date when the cardholder use his card or from the date when the transactions are posted. If there is a grace period, the issuer will send the bill at least 14 days before the due date so the cardholder will have enough time to pay. The annual fees or participation fees are charged by most issuers. The range is $25 to $50. The charges can be up to $100 too. Gold or platinum cards are charging up to $75 usually. Transaction fees are charged if the cardholder uses the card to get some money in advance makes a late payment. These charges may appear also if the cardholder exceeds his credit limit. Some issuers are charging a fee monthly even in the case when the cardholders don't use his card at all. The cardholder must know also the balance computational method to anticipate how much he must to pay for purchases over the time, in the case when there is no grace period. Even if the APR remains the same, the difference can be important. Author: This article is written by Devin Gilliland publisher for credit-wisdom and jetclient.com Article Source: http://www.ArticleBlast.com |
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When Will The Credit Card Bubble Burst?
In case you didn't know, there is another bubble, growing massively in this country, getting ready to burst. Revolving consumer credit card debt continues to grow each month, finally breaking the $900 Billion dollar mark for the first time last June. The Federal Reserve reports that this year, Americans have piled on $39 Billion in new credit card debt. We refer to the looming crisis as the credit card tsunami. You better batten down the hatches!
For the month of August 2007, USA, consumers added another $6.2 Billion in new debt, on top of the $5.6 Billion they racked up in July. Overall, including everything except mortgages, Americans owe almost $ 2.5 TRILLION DOLLARS in debt! Now that the mortgage game is over, and all that easy money has been made, the next big thing the banks will milk for maximum growth and profits are credit cards. Fees and penalties have been steadily increasing for years, as have average interest rates. Last year, the banks made over $100 Billion in interest & another $50 Billion in Fees & Penalties; these guys are not your friends.
Many people, who are being squeezed by the bursting housing bubble, are increasingly relying on their credit cards to live. Since the spigot to the home equity money has run dry, and their lifestyles are not changing, or circumstances like lost jobs or medical hardships cause them to continue to rely on credit cards, there is no end in sight to how much additional debt John Q. Public will take on. At some point, the dam has to burst, and a lot of people are going to drown.
Who knows how many people lived beyond their means during the last few years, extracting the temporary wealth in their real estate, only to spend it on luxuries like vacations, and lavish weddings in Tuscany? How many people transferred unsecured, credit card debt to their real estate, only to risk it to foreclosure if they miss a few payments? How about the people who thought the value of an already overpriced home would continue to increase, and took out teaser rate mortgages, hoping to refinance with the profit in a couple years, and are now stuck with a mortgage that has doubled, and no way to pay for it?
Now that the game is over, those people are turning to their credit cards to survive. People who were "hooked" by teaser rate mortgages, now find themselves unable to pay the "real" mortgage payment. Many are going into default on the mortgage, and keeping current on the credit cards. Some are using them like an ATM, maxing them out to their limit, as well as constantly applying for the barrage of new cards that grace their mailbox.
They are living in a fantasy land if they think the missed mortgage payments won't hurt their credit. Give it a month or three, and when the credit cards see that you are missing mortgage payments, they jack up your interest rates to 25%+ and then you are, excuse my French, "screwed." Most of your payment will be wasted on interest, and it could take 10-100 years to pay the debt off.
The card companies know people will do anything to stay current on cards, and that people need cash. Requirements to get a credit card are at there lowest in 10 years according to a Fed survey; if you have a pulse, you can get a credit card. They even give credit cards to peoples pets.
The junk mail credit card solicitations that grace your mailbox are driven to the post office in semi-trucks on pallets, and they are unloaded with forklifts. While the mailers are actually less than what was mailed out at their peak in 2005, the percentage of people responding to, and being accepted by the credit card companies, has risen steadily and has actually increased three times since 2005!
All this is a result of the shut down in taking equity out of your overpriced home. It was never sustainable, and I feel sorry for the people who bought at the peak, paying $600,000 plus for a 40 year old home that was not worth 1⁄4 of that price. To think the bubble could keep getting bigger and the median price of a home exceeded the ability of the average person to buy one, it was only a matter of time before something had to give, and it has.
Now, I talk to people all day long who are taking cash advances from credit cards to live on, or pay their mortgages; that will end at some point.
The credit card bubble will be the next one to burst. If your credit card debt is out of control, you have to do something. Through the process of debt settlement, there are ways to settle with the creditors for less than what you owe, within 3-4 years, that will leave you in a position to get new credit after it is over. Read our free report on Debt Settlement to see if it's an option for you.
Author
Christopher Winkler
cwinkler@debtchemotherapy.com
http://DebtChemotherapy.com
Source: http://ezinearticles.com/
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Finding a Low Rate Credit Card
There are numerous credit cards on the market, each with a different set of features and benefits. Spending some time researching the different options available means you can accurately match your financial needs to the choices you have.
There are credit cards available with 0% interest introductory offers, cards which offer 0% balance transfers and cards which are suitable for first time users.
Your requirements may be straightforward and you are simply looking for a credit card that offers a low rate of interest on all purchases.
Some credit card providers are offering simple credit cards which give you access to the lowest APR, guaranteeing you a low rate on all your purchases and without the worry that your APR will skyrocket after the introductory period has expired.
Some credit cards offer a low rate of interest on balance transfers as well as purchases, meaning you can transfer the balance of an existing credit card onto your new, low interest card. This allows you to manage your finances more effectively and means you can calculate exactly how much you will be paying off each month.
Having a credit card comes with other benefits as well. You have more protection against fraudulent activity with your credit card when compared to using a debit card and if your credit card were used fraudulently you would not be expected to cover the cost of the counterfeit purchases. Chip and PIN technology now makes it more difficult for would-be thieves to access your funds.
Credit cards also offer a level of purchase protection that you do not get with cash or debit card transactions. The Consumer Credit Act 2006 stipulates that card issuers and retailers must take joint responsibility for faulty purchases so you won't be out of pocket if you use your credit card to pay for goods which aren't up to scratch.
Some form of purchase delivery protection gives you peace of mind against loss or damage to goods that you order from UK suppliers, whether online, over the telephone or in store.
A card that is supported by 24 hour customer service assistance is helpful too as you can rest safe in the knowledge that you are only a phone call away from someone who can help. This is a particularly useful feature if you are travelling abroad and plan to use your credit card when away.
Last but not least, look out for low rate credit cards that offer the option of online banking as this gives you access to your finances 24 hours a day no matter where in the world you are.
You can manage many aspects of your account online, including direct debits and transfers. Switching to paperless statements is kinder to the environment as well.
by: Adam Singleton
Article Source: http://www.ArticleBlast.com
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Credit Card Debt Reduction for the Elderly
As we age, various problems begin to raise their heads. The years that follow retirement are filled with many issues. Many of these adjustments have to take place at the psychological level. For instance, the senior citizen has to get used to his new-found status as he is no longer going to be able to live with his earlier lifestyle. In effect, this would mean giving up the sense of independence that he had sustained throughout his adult life. Entering the hallowed group of senior citizens generally entails that the new entrant begins to be dependent on the younger members of his family. This can make one feel rather down, but is relatively unavoidable.
A lot of senior citizens find themselves running up high credit card debt to take care of costs that pertain to old age. This could include the bills for doctor's visits, medications, and other related things. Senior citizens who are still in the process of repaying a loan that they had secured earlier may even resort to acash advance to help them pay off the loan amount. The credit card does lend a helping hand to the senior citizen who is trying to pay off his bills. At the same time, running up a high credit card debt should be avoided. Yet, many people who have passed retirement age are left with few options. Theirpensions and depleted savings would not be sufficient when it comes to paying off a number of bills.
However, senior citizens can negotiate with their credit card providers for reduced debt. Many card providers take into consideration the age of the card holder and are willing to give discounts on the existing debt. The credit card companies recognize the fact that several senior citizens may face many difficulties in settling heavy credit card debt. Limiting the amount of debt makes good business sense for the credit card company while it also gives them a standing with the post-retirement age group.
Senior citizens would also do well to look for cards that are more affordable. Switching credit cards may be a good idea for senior citizens who are stuck with high interest rates. Moreover, with the zero percent balance transfer credit cards available in the market, even the act of switching need not cost too much. There are great bargains to be found if one does some homework. Growing old may not be the easiest thing in the world. However, the elderly can earn themselves some peace of mind.
For the best credit cards and deals on online credit cards, visit us. We are the one stop shop for credit cards.
Author: ajeetkhurana
Source: http://www.articlealley.com/article_231079_19.html