« October 2007 | Main

April 07, 2008

Best Credit Card

Options for the Best Credit Card

Consumers who want to maximize their options on a credit card should first find out all the terms and related costs associated with a particular card. For those who feel that the best credit card is one that is low-rate and no-frills, they should determine if the card has annual charges, as no-frills users do not need to pay such fees. Some upscale prestige cards, air-mile credit cards and similar rewards packages collect annual fees in exchange for perks, services and other rewards.

The definition of a best credit card varies depending on personal preference. Individuals currently have many options available in the market, including instant approval cards, cash back credit cards, low-interest credit cards and prepaid debit cards.

The percentage rate (APR) is another crucial element users must weigh before signing up for what they feel is the best credit card in the market, particularly those with balances, as lower interest rates mean lower payments for carriage and substantial savings.

For fixed-rate cards, owners can expect interest rates to be more stable – a credit card on 12.99% interest is likely to remain at that level for a relatively longer period of time compared to a variable card. However, holders decided on securing the best credit card should be aware that even fixed-rate terms could change, although card companies are required by law to issue a written notice for any rate adjustment at least 15 days prior to their affectivity.

Variable-card customers need to know if their plans feature minimum APRs, or ‘floors’ – the lowest-possible levels that interest rates could fall to, inclusive of any adjustment by the US Federal Reserve. A Bankrate.com poll indicated floors for 24% of variable-rate issuers surveyed, with 75% of that group already at minimum APRs through October 2001. This means that the interest rate on these cards will only go up in the future.

How long or short a grace period is for settling balances is another factor that customers seeking the best credit card should consider. Since interest charges kick in when the grace period lapses, a company offering longer grace periods means a more extended time for users to settle outstanding obligations without paying interest before their next card purchases are penalized.

Individuals seeking the best credit card deal should also be aware of all penalty policies covering missed payments, purchases exceeding the limit or balance transfers. First USA and other providers have a $35 ceiling for such transfers, while Citibank has a $50 cap.

Posted by creditcardsalon at 08:58 PM | Comments (0)

April 06, 2008

Bad Credit Card

"The Bad Credit Card That May Do Good."

Millions of people use credit cards all around the world. A huge chunk of those users made mistakes when dealing with their credit cards. The consequence of the errors is costly.

A lot end up in debt and most of the time these are the people who rant about the credit card being the devil. But fact of the matter is, this is not the case. When used properly, credit cards are very good financial tools.

Credit cards are not necessarily just for people who have large sums of money to use. There are some cards even for the financially challenged, and these are called the: “Bad Credit Cards.”

A bad credit card is just precisely that: a card with a very bad or low credit limit.

There are two types of credit cards: there is the secured and the unsecured credit cards.

Unsecured credit cards are the accounts that are free from the limits of a bank account. The limit of credit is up to the bank’s discretion and not up to the size of the bank account. If the bank thinks that a person is deserving of a bigger credit, then it will be given.

This is the usual type of credit cards in the market and is fairly popular among the card shopping people. These are also the cards known to be more respected by other companies. These are also the cards known to send people to a very deep debt.

This is the type of credit card that should be avoided if the applicant is already in a financial mess.

The secured credit cards are the bad credit cards. These cards are grounded on the size of the account a person has. For example, if a person has a $1,000 balance, then that is all the credit a person is going to get. If there is a point where the balance reaches $0, then the person should go and “re-fill” the account.

The bank limits the credit to the money already present to avoid overspending, thus preventing even deeper debt. This will monitor the expenses of the person and will help the development of a financial recovery for some.

These credit cards are also known as “pre-paid credit cards” for there is only a fixed amount that can be used and the holder is the one who puts it there.

Posted by creditcardsalon at 05:55 PM | Comments (0)

April 05, 2008

Apply Credit Card Online

Online Credit Card Application: the Easiest Way to a Customer’s Heart

Many credit cards are offered in the market today thus, making companies more aggressive in advertising and marketing their card services. These companies (e.g. banks, department stores, specialty stores, airlines, hotels, etc.) have found a powerful tool in catching the attention of prospective card holders: online credit card application.

What advantage/s does online credit card application offer?

The bottom line of online credit card application is “convenience”. Online application is a dream-come-true to future card holders. Imagine not having to queue in long lines just to have a credit card approved. No travel cost just to get to the card company’s office. Since everything is computerized and automated, processing of the application is faster and more efficient.

What is/are the drawback/s of online credit card application?

The major drawback in applying for a credit card online is internet security: computer hacking makes identity theft possible. Make sure that online application is done through a trusted and secure computer.

Do credit cards applied for online offer additional benefits?

No, basically all the services and benefits are the same. Here are some of the benefits given to card holders and future members:

1. airline miles
2. cash back
3. business
4. retail
5. shopping
6. rewards

How does one apply for a credit card online?

Online credit card application is very straightforward. Just follow the directions as prompted. Credit card companies have their respective web sites which are easy to search in the web. Just type the name of the bank, department store/specialty shop, or airlines and add the key words “online credit card application”, and the computer screen will display the search results as well as the URL.

Here are some other reminders when applying for a credit card online:

1. Determine your need for a credit card: travel, grocery, business.
2. Assess your earning capacity and compare this against your needs.
3. Look around the web for the credit card that matches your needs.
4. Check out the following information about your prospective credit card company through the internet:
5. Application fee. Some companies do not charge for applications.
6. Interest per month. Of course, choose the one with the lowest financial charges.
7. Benefits/Rewards/Advantages. These can sometimes spell the difference between good and best credit cards.
8. Disclaimer. This states additional limitations and/or scope to the credit card; make sure you read this.
9. Application requirements. This is to ensure that all necessary personal data and information are available to you when you do the actual online application.

10. Apply for a credit card online through a secure, trusted, and private computer, never in a public computer.

Posted by creditcardsalon at 10:21 AM | Comments (0)

April 04, 2008

APR Credit Card

Tales of the 0% APR Credit Card

People used to think that they had enough on their benefits with their credit cards. They thought that the rewards they get and the low interest they have is already enough to last a lifetime.

However, there are instances when they get to have the chance of seeing promotions like 0% APR. Now, this is really something. But the question is, is it true? Is there a great probability that credit card companies can actually offer a 0% APR?

For most financial experts, they contend that it is, indeed, possible. In fact, credit card companies would definitely go for this kind of scheme just to get the consumers on their hook.

That sounds too good to be true, indeed. But the question is how come they can offer something so good just like that?

Normally, 0% annual percentage rate or APR lasts only for 6 months. The countdown starts from the day the credit card is claimed.

In most instances, 0% APR are attractive to people who would want to have a balance transfer. This is because they would want to consolidate all of their debts into one payment only. And because they have a huge pile of debt, they would rather go to a credit company that can offer them lower interest rates.

With things like 0% APR credit card, who can resist them?

Moreover, with the 6-month timeframe, people will get to have the chance of paying their standing debts for a whole six month-period only. That would be a lot of savings.

But then again, 0% APR credit cards are not at all beneficial to everybody. As they say, there is always an exception to the rule. This refers to those who do not accumulate interest charges simply because they have outstanding balance. So, they wouldn’t feel the necessity of getting a 0% APR credit card.

The best credit cards for these types of people are those that offer rewards and cash backs instead of lower rates.

All of these boil down to one point, that people must be aware on how these wonderful offers can provide them the benefit that they want.

Indeed, there are lots of rewards and 0% APR credit card out there. But if it will not work for those who do not really them because of the mentioned situations, then it’s best not to have them at all. Besides, the best 0% reward is not to have a credit card at all.

Posted by creditcardsalon at 10:59 PM | Comments (0)