Best Credit Card Blog

Where once the choice of credit card in the UK was extremely limited, now there is a plethora of companies bombarding everyone with promises of low interest rates, balance transfers and cards which are a status symbol for the holder. In addition to this, most of the High Street stores now offer their own store cards, giving you credit to spend in their store or a chain of stores only.

When you reach the checkout at a clothes store, for example, you are offered a reduction on your purchases if you take out their store card at that point. This makes it extremely easy to say yes and many people agree so that they get the discount without checking any of the small print or terms and conditions. The danger of this is that these cards have notoriously high interest rates of up to 29.9% and for many this is the start of the decline into debt.

Credit cards and store cards work in much the same way and some credit cards have interest rates as high as the store cards, However, if you have a balance on your credit card and cannot afford to pay it off in full, there are ways to use them to your advantage. Many card suppliers offer interest free periods for balance transfers. This will allow you to transfer your existing balance on to another card and pay off as much as you can afford for a set period, often six months, without paying interest on it. This can give you a real opportunity to reduce your debt.

If you have substantial debts on credit and store cards and as a result can only afford to pay the minimum payment on each you may well find that for some of them the monthly interest is actually greater than the amount you are paying and so your balances may actually increase. This is a scary situation to be in as there often seems no way out. In these cases it is often worth trying to take out a personal loan to consolidate all your debt. This will have a significantly lower interest rate than many of the cards and will also reduce the minimum amount you have to pay each month.

Cash back credit cards are a shoppers delight and have proven to be a huge success after the innovation of the credit card itself. True to its name, the cash back credit card provides cash rebates or cash rewards to cardholders for making purchases using the card. The best cash back credit cards gives a higher rebate on purchases. Cash back programs have been in vogue from the middle of the twentieth century. Initially, they started with a flat rebate (about 1%) of the total purchase made by the customer.

Components of the Best Cash Back Credit Cards

The best cash back credit card can be evaluated on two components – the percentage earned on purchases and the method of its delivery to the customer. With plenty of options to entice you into spending more, it is important to consider certain things when choosing cash back credit cards. This includes – the rebate percentage, Annual Percentage Rate (APR), card partnerships with merchants and other services (like gas, restaurants), the method of getting the money back, and your annual fees. Some cards may have limitations like number of rebate points earned per year and validity period of the earned rebate points.

These cards are more suited for those who do not carry monthly balances. The APR for these cards tend to be higher than the normal cards, which in effect means that if the bill is not paid in full, it would cost more for the borrower than it should and could be. As a customer, you should be aware of the APR on the card, in order to determine if the ultimate finance charges will be more or less than the actual reward benefits earned. Most of the cards do not have an annual fee, have very low or 0% introductory APR, with the facility of balance transfer and attractive gifts. The best cash back credit cards have a higher percentage rebate on certain category purchases like grocery or fuel.

Most credit card companies offer a standard cash back percentage of 1%. Some might offer 5% or 2% in mutual partnership with select merchants like gas stations or drug stores. Certain cards may offer higher rebate percentage for the introductory period and then revert to a standard 1%. The customer should look for higher rebate percentage as higher the rebate percentage; the greater amount of money that can be earned by them. Some cards may offer higher cash rebate percentage with increased usage and others may offer a higher cash back percentage at select merchant or retailers like gas stations or supermarkets. It is important for the customers to choose a cash back credit card that provides special incentives with merchants or services the consumer uses frequently.

How the Best Cash Back Credit Card Works

Typically, most of the best cash back credit card companies offer cash back or reward on purchases, not on balance transfers or cash advances. Cash back programs can prove to be very expensive for credit card companies and they normally charge an annual fee for it. Nevertheless, with competition, many of these cards now have zero annual fees. In case annual fees are charged, it is worthwhile for you to ensure that enough is earned by way of rebate to justify the annual fee payment.

The best cash back credit cards credit the rebate back to the cardholder account. However, different credit card companies adopt different methods of repaying the customer. Some companies pay the cardholder once per year, some pay back as statement credits, while others require the cardholder to request for refund once enough points have been accumulated. Cash payment methods could be as varied as the reward credit cards. These include gifts, gift vouchers, statement credits, cheques, or deposits to bank accounts.

Eligibility for Cash Back Credit Card

Generally, companies require you to have a good or an excellent credit history to qualify for the best cash back credit card. With myriad of options, shopping for the best cash back credit card can be an overwhelming task. Yet with prudence, cash back credit cards provide a fantastic opportunity to get back part of the money that is spent on purchasing and using your credit cards.

If youre like most North American people today, you go through life carrying a fair amount of credit card debt. And if youre like most North American people, youre okay with that. $100 per month in repayments is fine, even if youre paying that much on three different cards. Its doable you can afford it, if you have to. But heres the thing if you consolidate your credit card debt, you dont have to.

Do the math with me here: You have a Mastercard, a Visa, a Discover card and an American Express. Lets say with each of them youre supposed to pay 12% interest per year, (which would be generous many cards charge as high as 29% these days!) and the monthly minimum us roughly 2% of your balance that has to be paid back each month. Assuming you owe $2000 on each card, thats a $40 minimum payment on each card, or $120 per month before interest is even factored into your repayment equation. But if youre paying back $40 per month on a card that you owe $2000 on which charges 12% interest per year, youre paying $280 or over half your repayments in nothing more than interest!

Now consider the options when you consolidate your credit card. First of all, you could take out a new credit card and put the balance of all those other credit cards on it. Meaning, you take the debt from your Visa, Mastercard, Discover and AmEx, and you pay it all off using your new card.

Because most credit card offers will allow you to transfer your balance from another card to theirs for 0% interest, you might not reduce your monthly minimum payment each month, but you will reduce your interest rate significantly, thus paying your debt off much sooner. Consolidation of credit card debt can reduce your payments by hundreds of dollars a year!

Another way to consolidate your credit cards and lower your amount owing, is to take out a consolidation loan with your bank. Because credit card interest can be up to 29% (even more in some states) without it being called loan sharking, many consumers get trapped in a debt cycle that seems unending. Payday loans are no help they can be even worse, in fact. But a consolidation loan with a bank can see you pay all of those debts off at an interest rate of 5 or 6% – saving you a fortune on your payments.

But maybe your credit rating is awful and you dont think you can get a consolidation loan, or a credit card to consolidate your old credit card debt have no fear! There is a multitude of lending institutions whose job it is to find financing for people just like you. Granted, the interest rates will be higher than for someone with a good credit background, but it will still be significantly lower than what youll pay in credit card fees, and as you pay that loan back, your credit score will quickly begin to heal.

Theres just no good reason to carry a huge credit card burden these days, and its mainly out of apathy or ignorance that so many people do. If youre in need of information to help get out of the burden of credit card debt, there are many institutions and debt counseling organizations that can help you get out from under the unending pressure of debt. In fact, many of them can negotiate a better rate with the banks and credit card companies you own money to, to ensure that you can pay back what you owe without living in poverty.

Credit cards are a handy tool, but the time is right for you to consolidate your credit card loan payments and start living well once more.

If you are a business owner, you understand that every decision you make is a huge one. The wrong decision can mean failure for your business, while the right one can catapult it to the head of the competition. You may not realize it, but choosing a business credit card is just as critical of a decision as any that you will make as a business owner. Therefore, it is important for you to know how to compare business credit cards in order to find the one that is right for you.

Credit Limits

The first item to look at when you compare business credit cards is the potential credit limit of the card. Many have a minimum and a maximum potential credit limit. You should have a good idea before researching business credit cards of how much you need the credit limit to be. If the maximum potential credit limit is not enough, then move on to the next credit card. Similarly, if the minimum credit limit is far more than you need, you might also want to pass.

Both extremes are not good for a business. A credit card that does not give you a high enough limit will force you to use more than one business credit card, which makes keeping track of expenses far more difficult and confusing. At the same time, having too much credit makes it easier to spend beyond your means, potentially bankrupting your business. Think smart when getting a business credit card and find one that offers a credit limit that is best for your business.

Interest Rates

When you compare business credit cards, you absolutely must consider interest rates. More than likely, you will not be able to pay the balance off in full each month. This is common with a business, particularly one that is just starting out, because money is tied up in the business and unavailable for paying the balance off each month. Therefore, you need to find the business credit card with the lowest interest rate in order to save your business money. Obviously, if you business is financially stable enough to pay the bill at the end of each month, you don’t need to concern yourself with the interest rate. The key is to assess your business situation openly and honestly in order to determine if you will carry a balance or not.

Rewards Programs

Many business credit cards offer special rewards programs. With these programs, you may be able to receive free or reduced goods and services, such as airline travel or office supplies. At the same time, business credit cards with reward programs tend to have higher interest rats. Therefore, it might be best for you to pass on one of these cards if you intend to carry a balance on your card from one billing cycle to the next. When you compare business credit cards, be sure to compare the interest rate to the benefits supplied by the rewards program in order to determine if the payout is worth the pay-in.

Additional Benefits

Business credit cards, like regular credit cards, can have a number of additional benefits associated with them, such as travel insurance, extended warranties, and purchase protection. The exact benefits, however, vary from card to card. Even cards issued by the same lender do not necessarily have the same benefits. When you compare business credit cards, consider these benefits carefully and find out as much as possible about these benefits. For example, learning that two business cards each offer travel insurance is not enough. Find out how much travel insurance is supplied. One may only offer $100,000 while the other offers $1,000,000. If that $1,000,000 travel insurance is important to your business, then that card may be the best choice for you. On the other hand, if you only need $100,000 in insurance, the $1,000,000 may not be so impressive.

College Student Credit Cards – How to Build Your Credit

Credit cards for college students are easily available online. The downside is that card issuers realize that most students do not have a particular credit strategy in mind, just a desire for easy access to credit.

Card issuers are keenly aware of how to market their products to college students and young people in general. Because of the lack of an established credit history or credit profile, credit cards for students are often more expensive to maintain than traditional credit cards. Subsequently, credit cards for college students often have high interest rates, annual fees, as well as other fees attached. If you are a college student with good credit, you should not have any problem getting approval for an attractive card offer. Unfortunately, many students do not have good credit history, or any credit history at all for that matter.

Shopping for a College Student Credit Card

The first 3 steps when shopping for a credit card for a college student are quite simple: research, research and research. You can easily begin your search online where you can compare and contrast card offers from all of the leading card issuers. This will give you a huge advantage when shopping for the right card offer because you can get a very clear picture of what the cards offer in terms of features and benefits as well as what the card will cost you over time. Thoroughly researching each card offer will help you save time and money, and ultimately, should help lead you to the very best credit cards for college students available anywhere.

College Student Credit Card Specifics

A typical college student credit card offer might include the following:
-0% APR up to six months on balance transfers and purchases
-Zero liability on unauthorized purchases (a “must have” in any credit card offer)
-No annual fee
-Online account management
-No co-signer requirement

Most of the best student credit card offers will provide you 6 months of 0% APR on purchases, which is an attractive feature for many cash-strapped students. Don’t be misled by this offer, however, because the ongoing APR on these student credit card offers jumps up significantly when the introductory offer expires. So buyer beware!

All credit card issuers will provide you with a zero liability on unauthorized purchases clause on their respective card offers. Just be sure to double-check that the card offers this feature as it is very important to have for security purposes. You should also try to avoid paying an annual fee for any credit card, if at all possible. Many of the best student credit card offers will not charge you an annual fee either. Some student credit cards will not require a co-signer from your parents for approval. But don’t count on it. The more attractive card offers will also feature an online account management tool that allows you to quickly and easily manage your account, view statements and pay bills online.

One very important thing to keep in mind, however, is the regular ongoing APR for student credit cards tends to be very steep so it is highly recommended that students (especially) avoid carrying a card balance for any extended length of time. It is best to never carry a card balance, ever. How do you avoid carrying a credit card balance? You pay it off every month. That is quite simple the single most valuable piece of advice on how to use credit cards of any kind, and if adhered to, will help you avoid racking up debt and potentially devastating finance charges that can be ruinous in the long term.

Advice When Searching for Credit Cards

So be sure to thoroughly research as many student credit cards as possible, and do not stop your search after investigating only a few card offers. Be vigilant and persistent in your research of credit cards for college students or any credit card offer for that matter. And remember, avoid carrying those card balances!

College Credit Cards – Smoothing Out Your First Credit Wrinkles

College student credit cards have replaced student loans as a freshmans first experience with student credit. At the sophomore level, out of a sample of 100 students, over 90 are found to hold at least one college credit card. The question is why do many students find themselves in a vicious cycle of debt with their college credit cards? Why are they astonished with the huge bills they receive each month? Most importantly must it necessarily always be this way for a college credit card user or is there a simpler way?

There are plenty of statistical indicators to suggest that students run up credit bills regularly yet they do not pay down their card balances nearly enough. Approximately 21% of college credit card users have balances between $3,000 and $7,000. The number of credit cards in an average students possession keeps increasing a sign that they might be acquiring new cards to pay off balances on old ones. But this only leads inevitably to their overall credit balance increasing even faster, adding more debt to a seemingly never-ending downward spiral of debt.

Five Steps to Avoid the College Credit Card Debt Trap

The core reason of this pathetic plight is the absence of a disciplined and planned system of spending. If you, as a student, wish to optimize the use of your college student credit cards, use the following guidelines to plan your spending:

- Pay your bills on time. Late fees are the most unnecessary source of additional credit expense. Always ensure that at a minimum, you always meet the minimum payment on your bill. Ideally, you should try to pay more than the minimum amount to reduce overall charges.

- Use the 20/10 rule. Be careful that you never, ever borrow more than 20% of your annual net income and never spend more than 10% of your monthly income on your monthly payments. In other words, balance your credit budget to avoid irregularities in monthly payments.

- Plan your credit expenditures. With college credit cards at your disposal, it is easy to give in to the temptation of impulse purchases. This can lead to ever increasing credit card balances
over a long period. It is ALWAYS better to plan purchases using your college credit card so you can ensure you only make purchases that you know you can easily pay off.

- Avoid cash advances. The finance charges for these are generally much higher than standard credit purchases and can be very expensie.

- Avoid approaching your credit limit. There may be extenuating circumstances that will require you to incur unplanned expenses, but if you stay well within your credit limit by avoiding unnecessary charges, you can enjoy the satisfaction of knowing that you can comfortably use your card when you really need it.

The Boon or Bane of College Credit Cards

If the guidelines outlined above are kept in mind, you will find that you can live comfortably with college student credit cards. These tips are especially useful for those who envision needing an extra job in order to pay your off credit card bills. Ideally, a balanced credit budget and a zero card balance is the best way to handle your credit card expenses. So, while college credit cards can be extremely helpful to certain individuals, they can also prove to be a huge detriment to those who do not budget and plan to use them accordingly.

Most experts advise consumers to avoid having too many credit card accounts. When you decide to open a new card because it has better rates, it is important to make sure you properly close your existing credit card. There are a number of reasons why you should close existing accounts when opening a new credit card.

Closing some of your cards will allow you to have control over them. When you have multiple cards, it is easy for some of them to get lost. If this happens, you are susceptible to being the victim of fraud if somone finds it. Closing your accounts will also allow you to maintain a good credit report. You credit score may be lowered if you have multiple accounts, because you are seen as being a risk. Closing your accounts will also allow you to avoid fees and universal default.

Any credit card accounts which are not being used should be closed. At the same time, you want to make sure you don’t close your oldest card, as this could damage your credit score. It will also allow you to avoid being the victim of identity theft. It is important to remember that some cards have annual fees, and you will still be charged even if you’re not using them. If you have an account with a balance that you are trying to pay off, and you don’t want to use it, cancel the card and continue making payments. This will keep you from using the credit card and adding more money to it.

It is important to remember that it is best to have a single credit card, but at the maximum you should only have three. This will keep your credit score in good shape, and your creditors will reward you for using them in a responsible manner. You will want to reserve a credit card for making specific payments, and setup a plan to make sure it is paid off by the end of the month. If you cancel a credit card, make sure you cut it up. Otherwise, someone could steal it an reopen the account.

It is important to make sure you call the company and cancel the card. Don’t assume that the card is closed just because you cut it up. You may have to submit a request in writing. The company will typically send you a letter confirming the account has been closed in about 14 days.

Many people who were once wary about using credit cards are now rushing to get credit from their company of choice. One reason for this is that many credit card companies nowadays are willing to give credit cards to almost everybody, even to people with bad credit. The companies are reasoning that they will make money from people who do not pay their bills on time as well as more responsible consumers, since the former tend to pay higher interest rates and late fees. There are very few people who simply do not pay off their credit cards at all and attempt to disappear. Therefore, there is little risk of extending credit to people who will absolutely not pay off their credit cards.

Therefore, one should be cautious before obtaining credit cards. It might be tempting to sign up if there is a claim of absolutely no rejection, but if you do not use the card or cannot pay off your bills, your credit cards might end up costing you a fortune in the long run. It is a good idea to be selective concerning which credit cards you wish to obtain and to think carefully before signing up.

There are many different types of credit cards on the market these days, including:

Cards for those with good credit
Cards for those with bad credit
Smart cards
Reward cards
Credit cards for minors

Significant benefits are given to those who have good credit. Many companies offer premium gold or platinum credit cards with no annual fees, 0% APR and a higher credit limit. This means that you can make more purchases with few or no restrictions. Therefore, it is important to keep your gold and platinum credit cards under close watch, since a thief can make significant charges to your account.

Many more credit card companies are offering credit cards to people with bad credit. They are willing to take this risk in exchange for an annual fee and a low APR. Many companies will check employment history, but many more nowadays will rely on the fee rather than past records. Instead of avoiding credit cards completely, it is a good idea for those with a flawed credit history to apply for these kinds of credit cards, to make modest, regular purchases with their cards, and to make payments on time. This will help repair their credit, which is a gradual process.

With identity theft occurring more frequently, smart credit cards are becoming more popular among security conscious consumers. Smart cards are embedded with microprocessor chips, which hold more information than traditional magnetic strips. These smart chips encrypt information to prevent cloning and fraud. If your chip is disabled, the company is automatically notified.

Reward cards are a popular way of earning air miles, hotel points or free gas as you use your credit card in the supermarket or the shopping mall. Many consumers enjoy accumulating points for these items as they make their ordinary purchases. It usually takes some time before you will be able to receive free items, and it is not such a good idea to make extraneous purchases just to earn more points, but many feel that the regular shopping they do will eventually pay off in the form of rewards.

Many parents are understandably leery of trusting their teenagers with credit cards. However, they would like their kids to learn early on about how to use credit responsibly, pay bills on time. A good compromise solution is to get a special credit card for your teenager that can be monitored. These credit cards have limits on them stipulated by the parents and allow parents to be informed of each transaction. Therefore, it is impossible for a teenager to spend more money than the parents will allow.

They come day after day after day. Sometimes two, three, or four at a time. Credit card offers. The credit card industry is highly competitive and banks and other financial institutions are constantly sending out mass mailings in an attempt to lure potential customers to switch credit card providers.

And while it is generally not advisable to regularly open new credit accounts, there are times when doing so can be advantageous. But how do you compare all of the credit card offers to know that you are choosing the right credit card? There are a few things that you should compare and consider before making your choice.

The interest rate. Obviously the higher the interest rate, the more you will pay in interest charges. So the lower the rate the better. Many cards now offer zero-percent introductory rates for periods of up to a year. Transferring a balance to a card like this can be an effective way to pay down your debt quickly. But you have to read the fine print.

Credit card companies usually apply your payment to the debt with the highest interest rate first. So if your interest rate on purchases is 12 percent, your payment will be applied to that balance until it is paid off and then you will begin paying off the zero-percent portion. Because of this policy, many people realize little savings in transferring their balance to a zero-percent card. In order to take full advantage of the policy, you should not make any purchases on the zero-percent card. This will ensure that the balance will be reduced as much as possible before the introductory offer ends.

Reward programs are great ways to gain prizes or cash back by making purchases. Some cards will actually give you a small percentage (about one or two percent) of your purchases back as cash. Others let you earn points that can be redeemed for all sorts of merchandise, airline tickets, or gift certificates. Reward programs are a great bonus, as long as you are not paying extra for it. A higher interest rate will quickly eliminate any savings you receive through the reward program.

Annual Fees or Service Charges. I have never used a credit card that charges any kind of annual fee. It just makes no sense to me. There are so many credit card companies out there competing for my business, why should I have to pay for the privilege of using a particular card. Even if the card offers frequent-flyer miles or cash back, the annual fee will reduce or even eliminate the benefit gained. Shop around and you can find a card just as good with no annual fee.

Keep these 3 things in mind when you are comparing the credit offer and you can be confident that you are choosing the right credit card.

There really are an amazing variety of credit cards available to todays consumers; the number of options is simply staggering. Virtually every company around these days has some form of affiliated credit card option available to its customers. While most of these cards are affiliated to one of the major credit card brands, such as Visa, Mastercard, or American Express, they still represent a major source of options from which to choose from. That is why it is important the go back to basics, and remember what are the fundamental reasons you opt for a credit card in the first place.

Below are some of the reasons we look for credit cards and some of the features we should be able to find in them, if they really are as good an offer as they claim to be.

-Is the credit card offered by a company you know and trust?

-What is the annual percentage rate (APR) for the card?

-Is this a temporary, introductory or permanent rate?

-What is the credit limit they have offered you?

-How often are you billed?

-How are repayments calculated and is the outstanding balance free of interest if you pay off the full amount each month?

-Are there other charges or fees associated with the card?

These are all important questions you should be asking yourself before sending that application form back to the company. However, while these may seem like straightforward questions with simple answers, they may not be as clear cut as they seem.

For example, your bank will usually be a company that you are familiar with and know you can trust. However, this does not automatically mean you should accept a credit card from them. This is not because the terms will be unfavourable compared to other lenders but rather because you should be thinking of the consequences if you prove unable to repay your credit card bills. While it is no doubt a serious matter to fall behind in credit card payments, for most people, this will be even more serious if this is also their bank that controls their mortgage and other finances.

Also, while the APR will be calculated in a standard way for all lenders, this is not the only aspect of the price of the card that you should be looking at. While the APR may seem attractive, it will be less so if the company levy hefty charges for late payment or reserve to right to alter your interest rate in the future.

Also, if your choice of credit card is based on the rewards that are being offered by that particular card, you should take into consideration any of the small print associated with the awarding of these rewards. For example, did you know that if you go above your credit limit with certain credit cards you forfeit all rewards that would have been awarded on your spending in that month? Also, the same may apply if you fail to make at least the minimum payment in any given month, the credit card company may withdraw your rewards for this too.

In short, while getting your hands on a credit card may be easier today than it has been in the past, and there are a host of companies out there willing to lend to you, you should remember that credit card agreements are complex contracts and you should think about all the aspects of it before you get involved.