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When Not To Use A Credit Card

Credit cards are a great convenience in our everyday lives, allowing us to easily buy products online and by telephone, and freeing us from having to carry large amounts of cash when making purchases in the bricks and mortar world. However, there’s a potential dark side to plastic, with some unfortunate account holders getting out of their depth and building up debts that become a problem and cause of worry.

This is obviously a situation that’s best avoided, and knowing when it’s a bad idea to use your card can help you avoid getting into difficulty.

- Withdrawing cash at ATMs

Most cash machines these days will let you draw out cash using your credit card. This might seem an attractive option if you’re short of cash towards the end of the month, but it’s a bad idea for two reasons. Firstly, cash withdrawals will attract a fee of a small percentage of the amount you withdraw. This in itself makes it an expensive way of getting your hands on cash, but advances are also usually charged at a much higher rate of interest than purchases.

What’s more, under a system known as ‘allocation of payments’, the repayments you make to your account are applied first to the parts of your debt which attract the lowest rate of interest. This means that so long as you are carrying some debt from purchases, your cash withdrawals will sit in the background, being charged a high rate of interest, and never getting any smaller.

- Credit card checks

These allow you to use your credit cards in situations where you normally can’t, such as paying a bill by post. However, the interest rate charged on them can be as high or even higher than with cash withdrawals. This means you should avoid them for the same reasons, as given above.

- Covering the cost of everyday bills

Paying your energy bills, for example, using your card is convenient and easy, but is only a good idea if you repay the debt in your next payment. If you’re using your card because you can’t afford to pay the bill, this is a clear sign that you need to take a harder look at your personal budget.

- Expensive impulse purchases

Of course, we all like to treat ourselves from time to time, and no one would begrudge that. However, before handing over your card, bear in mind that the interest you’ll pay over the months it takes to repay the debt will make your impulse buy much more expensive than it appears. Is it still worth it?

- To make repayments on other debt

Credit cards aren’t usually the cheapest kind of borrowing available, so you should never use your card to service another, cheaper debt. The only exception to this is if you make use of a balance transfer facility, either to get a 0% rate for a limited number of months, or to lock in a permanently low rate.

As we can see, most of the above advice is simply common sense, but following these rules will give you the best chance of staying in control of your credit card, and avoiding running up unneccessary or excessive debts.

What You Should Know About Switching Credit Cards

With U.S. credit card debt at an all time high, many savvy consumers and investors are renewing their commitments to rid themselves of this burdensome and in most cases, unnecessary debt. In doing so they are constantly searching for the next best credit card with higher credit limits, lower annual percentage rates (APRs), and zero balance transfer offers. In fact switching credit cards has become as common as changing the battery in the fire alarm for some people and it has actually worked. So if you are amongst the thousands of Americans who are thinking of making a switch to improve your financial picture, before you do there are a few things that you should consider. They include how multiple inquiries for credit will affect your credit score and if the APR that applies to balance transfers after the introductory grace period still makes it a good deal. In addition to these two things you should also, as with everything you do, conduct your own research to find the best solution to meet your needs.

It makes sound economical sense to switch credit cards to save money in interest charges and fees. Especially when you consider the fact that for most credit cards the minimum monthly payment is so low that it barely covers the interest charges reducing your outstanding balance by just a few measly pounds from month to month. Its no wonder then that we jump at any new offer that comes our way. When deciding whether to switch cards though, you should keep in mind that every time you apply for a new credit card an inquiry from that particular creditor goes on to your credit file whether you receive the credit or not. Additionally, multiple inquires by different creditors negatively impacts your credit score and any account whether closed or unused remains on your credit file for at least seven years. Last thing, switching cards and closing accounts immediately after the switch also impacts your credit score.

When considering whether to take advantage of a 0% balance transfer offer, you should consider the amount of time that youll have before the normal APR applies to that balance and whether youll be able to pay that in full before the grace period is over. Additionally, in the event that you arent able to pay off the balance prior to expiration of the grace period, you should consider if the new APR that kicks in will be a significant savings from the card that you are considering transferring balances from and whether interest will be charged on just the remaining balance or the entire amount that you initially transferred.

To ensure that you are getting the best deal, you should do a thorough search of available credit cards before making a final decision on which institution to submit a new application for credit to. By doing so you will know upfront exactly what you are getting and whether there are cost savings to be realized, leaving very little room for surprises.

Switching credit cards is a smart choice for consumers who are trying to manage and conquer their debt. For the disciplined person, this is a very effective strategy to help you reduce your debt load. If you find yourself in the situation where you are presented with an opportunity to switch credit cards, please keep in mind the negative effect that multiple inquiries will have on your credit score as well as the opening of new accounts while simultaneously closing others. When done wisely, after conducting a thorough search of available options, switching credit cards can definitely help you to achieve your financial goals.

What you should know about Airline miles credit cards

Some of the things that you should know about airline miles credit cards may be a little surprising and they may not be to you. One thing that you should know about the airline miles credit cards is that you are going to more than likely need to pay an annual fee to receive the airline miles credit cards. There may be some credit card companies that will not charge you the annual fee if you are using your credit card to purchase your airline tickets.

One of the disadvantages of the airline miles credit cards is that if you do not use your credit cards often it could take you a couple of years to acquire enough points to be able to take a trip with your airline rewards. When it comes down to it you can actually purchase an airline ticket more than once before you actually have enough airline miles so that you are able to take a trip with your miles. There are a few other things that you are going to want to make sure that you are checking out as well with the airline miles credit cards. You should know if there are any seating restrictions, expiration dates, or any black outs that will be assessed to any airline rewards credit card you may choose.

One of the big advantages of the airline miles credit cards is that if you are in need of an airline ticket at the last minute and you have enough points to purchase one you are not going to have to fork out the high cost of a last minute ticket. We all know that the airlines will raise their rates when you are purchasing a ticket at the last minute and when you are going to fly in the high season of the year. One other advantage of the airline miles credit cards is that some of the different credit card companies will give a new card holder bonus miles for becoming a new credit card member.

You are going to want to take your time and check out all the different offers that the credit card companies are going to give you with the airline rewards that they are offering. That way there you are going to defiantly receive the best airline miles credit card that is going to work for what you are in need of.

What to do when you loose your credit card?

There had been a huge rise in the use of credit cards because of the fact that instead of paying cash people find it easier to use a plastic card to charge. At the same time credit card provide you the convenience and security to carry lot of cash and also you dont need to leave home while you go out to shop.

Sometimes it happens that you loose your credit card that contains cash that is likely for you to get in most of the cases whereas if you had a credit card that you find missing you can easily launch report for it. You need to act wisely to get out of this trouble before anyone finds your credit card information and misuse it. The following tips shall help you as such:

1. You should cancel your credit card as soon as possible because the sooner you cancel, the less are the chances of anyone misusing it. You should also keep your credit card company numbers at number of locations so that you can ring the company even if your wallet is stolen.

2. Its not necessary that you review your statements in case your credit card is stolen but you should review it on regular basis because if someone gets hold of your credit card number he can purchase things on your behalf and you will be the ultimate payer. If you find anything suspicious you should contact your card issuer immediately.

3. You have to be careful with any paperwork that is related to your credit card and should keep it at safe and secure place. If you throw out old statements make sure that you dispose them properly and the best way is to shred the bank information so that people dont get your account information.

4. You have to be much careful with your PIN number because if you have a secure pin number the person who gets your card wont be able to use it. Never writer down your pin number at any unsafe piece of paper or dont make the mistake of giving it to your relatives and friends.

5. Get your credit card insured that is going to be the best way you can insure the recovery of any loss if your card is stolen. If you are using an independent company then you can register all your cards with them so that you can report multiple losses at once.

6. Make a habit to carry only what is necessary for you as such dont carry all your credit cards when you go out for shopping. This way you wont have to worry for all cards that could be stolen.

Lastly dont panic if your card is stolen instead remain calm and follow these steps then you can get a new card in around a week.

For further details, visit our recommended website www.credit-card-debt-consolidation-guide.infocredit-card-debt-consolidation-guide.info

Getting A Credit Card With Bad Or No Credit

So you have decided that you want to get a credit card only you may have credit that is not so hot or even no credit history what so ever. Many consumers wonder how it is possible to build a credit history with no credit or credit that might not be so swell. Surprisingly enough it is very possible for consumers finding themselves in these two particular situations to begin building a solid credit history without having to have a traditional credit card.

A secured credit card would be quite simple for someone with no credit or less then perfect credit to be able to qualify for and receive. All you need to do is complete the application for the secured credit card and make the required security deposit. After those two steps are completed you are well on your way to building a solid credit history. Just keep in mind that you need to apply for a secured credit card that will report all of your credit activities to all three of the major credit reporting agencies.

Department Stores such as Sears and Macys will often take a chance on someone who may not have any credit and give them a credit card. So if your luck hasnt been great in applying for traditional credit cards try your luck in applying for a department store card to use as a tool to start a solid credit history foundation.

Many gas stations will allow people with tarnished credit or no credit history to have a gas station credit card. If you are in either of these situations try applying for a card at your local gas station to begin building a credit history.

These are just a few suggestions of steps that you can take to start building a credit history if your credit record may not be so good (or non existent). With a little creative thought and research you will be well on the way to getting the credit and the credit cards that you deserve.

Gas Credit Card Or Gas Reward Credit Card?

With modern day living and our dependence on mobility, buying gasoline for your car is a necessity. Aside from the grocery store, your single largest weekly expense is more than likely what you put into your gas tank.

Lets face it, those gasoline prices are going no way but up!

If youre one of those people whos heart begins to skip-a-beat each time you go to fill your automobiles gas tank, perhaps its time to look at the new gas credit card offers available. Gas credit cards are brand specific, but the savings percentage is higher than a gas reward credit card and most have no annual fee. If that particular gasoline company has a station near you, a gas credit card might be the right credit card for you.

The gas reward credit card may be more convenient for those who like to shop around for the best priced gasoline. The Discover Platinum Gas Card has the same reward features of Discovers other reward programs with the added bonus of 5% cash back on your first 1200 in gasoline purchases for the first twelve months you have the card. If youre planning a driving trip this summer, this would save you a great deal of money to use for those souvenirs.

The type of rewards given for the gas credit card and the gas reward credit card vary in that they are given either in the form of a cash back check or a gift card for specific merchandise. You should review the card issuers form of rebate before you apply for a new card.

A gas credit card or a gas reward credit card can save you money. Use the ease of the internet to compare credit card offers and pick the card that will work best for you.

Five Simple Ways To Regain Credit Card Control

Credit cards easily get out of control. You simply don’t realize how much you are charging and how little you are paying. Before you can even think about paying your card off entirely, you have to simply regain control of your credit card debt.

Here are five simple steps that will help you regain control, and eventually pay off your debt. Follow them step-by-step and you will find that they aren’t overwhelming or too difficult. In fact, they don’t take much time at all.

1. Pay more.

You shouldn’t carry a balance on your credit card from month to month, but you probably are anyway. If you are only paying the minimum payment, you are slowly killing yourself. This will stretch your payments out for decades. Yes, decades. You need to start putting extra money to each credit card payment. Even if it is only 15, you are saving time and money.

2. Make a phone call.

Take the time to call your credit card companies and request a lower interest rate. It isn’t hard to do. You simply request a better interest rate. If you are a good customer who makes his or her payments on time, you will probably be successful. Tell them that you want the lowest rate possible. You can even say that you have received an offer to transfer your balance to another card at a better interest rate. You want to give them a chance to compete. If they won’t lower your rate, consider switching to a card with a lower rate.

3. Say goodbye.

Send your cards on a little vacation. If you have debt and you can’t pay it completely off, you need to stop using your credit card for now. Put it somewhere that you won’t be able to easily access. This removes the temptation to simply charge this one thing. I suggest a safe deposit box at the bank. This usually always works. If you have a true emergency, you can get it. But it often isn’t worth the hassle to get it to just buy a new sweater.

4. Look for money.

Now is the time to start paying that debt off with what you already have. If you have an 18% credit card and money in the bank earning 5%, you are losing 13% each month. Take your savings and pay off your credit card. This will save you interest and a lot of worry. Then work on building back up your savings by having the amount you paid in credit card debt automatically deposited into your savings each month.

5. Vow to change.

Now that you have seen the stress and problems that credit cards bring, you can make a committment to change. Credit cards aren’t the problem, they just contribute. The problem is the way you spend. You need to realize that you cannot continue to shop the way you do. You have to change your spending habits so that you aren’t tempted to use your card. It is hard. People slip back into it easily. But you need to find a way to remind yourself that it isn’t worth it. Regain control of your credit and turn it around.

Facts About The APR Of Credit Cards

When it comes to credit cards, the APR or annual percentage rates is always the ultimate source of confusion and chaos for most credit card users. If you dont have a credit card but planning on applying for one or you were just recently approved for a credit card then you must definitely read this article. Everything about APR of credit cards shall be explained so read carefully and remember!

Whats APR? Basically, the APR or annual percentage rate of a credit card is the combination of low interest rates and finance charges. With that said, lets move on to the next topic.
Are There Really Zero Percent (0%) APR Intro Rates And What Does It Mean? Lets say you already own a credit card and youve used up most of your credit already. With a 0% APR intro rate credit card, you can transfer your balance without incurring additional interest.

Nice, isnt it? Also, if youre planning to purchase something but paying it off before the intro period is over then yes, having a 0% APR intro rate credit card is the best option for you. Remember, the keyword here is intro which indicates that this is only something like an introductory offer so dont expect the 0% APR to last forever.

What About Low Interest APR Credit Cards? If youre in search for a credit card with long-time charges then its better to go for a low interest APR credit card rather than one with a 0% APR credit card because the interest rate would just revert to normal for the latter.

Which One Is Better: A Low Interest APR Credit Card Or A 0% APR Credit Card? Well, this question would require you to research a bit but since your decision will ultimately affect your finances then its better to go ahead and research, right?

The first question you have to ask your credit card company is about the length or duration of the intro period if youre interested in availing yourself of a 0% APR intro rate credit card. The intro period usually lasts between three to fifteen months. Anything less is naturally a disadvantage and anything more is preferable.

Ask also about what the APR of the credit card is going to be after the intro period. If the interest rate is higher than the APR of other credit cards that do not offer 0% APR for a certain period of time AND youre not planning to maximize the 0% APR youre given then maybe, its better to simply go with a low interest credit card.

Ever Receive A Credit Card In The Mail?

Federal law prohibits issuers from sending you a card you didn’t ask for. However, an issuer can send you a renewal or substitute card without your request. Issuers also may send you an application or a solicitation, or ask you by phone if you want a card – and, if you say yes, they may send you one.

Cardholder Protections

Federal law protects your use of credit cards.

Prompt Credit for Payment. An issuer must credit your account the day payment is received. The exceptions are if the payment is not made according to the creditor’s requirements, or the delay in crediting your account won’t result in a charge.

To help avoid finance charges, follow the issuer’s mailing instructions. Payments sent to the wrong address could delay crediting your account for up to five days. If you misplace your payment envelope, look for the payment address on your billing statement or call the issuer.

Refunds of Credit Balances. When you make a return or pay more than the total balance at present, you can keep the credit on your account or write your issuer for a refund – if it’s more than a pound. A refund must be issued within seven business days of receiving your request. If a credit stays on your account for more than six months, the issuer must make a good faith effort to send you a refund.

Errors on Your Bill. Issuers must follow rules for promptly correcting billing errors. You’ll get a statement outlining these rules when you open an account and at least once a year. In fact, many issuers include a summary of these rights on your bills.
If you find a mistake on your bill, you can dispute the charge and withhold payment on that amount while the charge is being investigated. The error might be a charge for the wrong amount, for something you didn’t accept, or for an item that wasn’t delivered as agreed. Of course, you still have to pay any part of the bill that’s not in dispute, including finance and other charges.

If you decide to dispute a charge:

Write to the creditor at the address indicated on your statement for “billing inquiries.” Include your name, address, account number, and a description of the error.

Send your letter soon. It must reach the creditor within 60 days after the first bill containing the error was mailed to you.

The creditor must acknowledge your complaint in writing within 30 days of receipt, unless the problem has been resolved. At the latest, the dispute must be resolved within two billing cycles, but not more than 90 days.

Unauthorized Charges. If your card is used without your permission, you can be held responsible for up to 50 per card.

If you report the loss before the card is used, you can’t be held responsible for any unauthorized charges. If a thief uses your card before you report it missing, the most you’ll owe for unauthorized charges is 50.

To minimize your liability, report the loss as soon as possible. Some issuers have 24-hour toll-free telephone numbers to accept emergency information. It’s a good idea to follow-up with a letter to the issuer – include your account number, the date you noticed your card missing, and the date you reported the loss.

Disputes about Merchandise or Services. You can dispute charges for unsatisfactory goods or services. To do so, you must:

have made the purchase in your home state or within 100 miles of your current billing address. The charge must be for more than 50. (These limitations don’t apply if the seller also is the card issuer or if a special business relationship exists between the seller and the card issuer.) and,

first make a good faith effort to resolve the dispute with the seller. No special procedures are required to do so.

If these conditions don’t apply, you may want to consider filing an action in small claims court.

Shopping Tips

Keep these tips in mind when looking for a credit or charge card.

Shop around for the plan that best fits your needs.

Make sure you understand a plan’s terms before you accept the card.

Hold on to receipts to reconcile charges when your bill arrives.

Protect your cards and account numbers to prevent unauthorized use. Draw a line through blank spaces on charge slips so the amount can’t be changed. Tear up carbons.

Keep a record – in a safe place separate from your cards – of your account numbers, expiration dates and the phone numbers of each issuer to report a loss quickly.

Carry only the cards you think you’ll use.

Establishing Credit with a Student Credit Card

One of the best ways to establish a credit report is to acquire a student credit card. However, there are a few things you should be aware of if you decide on this. One of this is the fact that your credit report will be kept and maintained by credit bureaus. Thus, whenever credit companies want to look up your credit history, they will contact these bureaus for it. Information on your payment patterns and outstanding payments for your student credit card, both good and bad, will be recorded here.

Essentially, no one can legally change the contents of that report and everything remains in there for up to a decade. Thus, it is important to maintain a healthy credit report by making payments on time, starting with your student credit card. Having a good credit report has a huge impact on loans and on future applications for other forms of credit services, including other credit cards. For instance, low APR cards are everybodys favorite but they are usually reserved only for those with good or excellent credit histories.

In order to acquire an excellent credit history, it is best to pay up your monthly outstanding balances before they are due. This may be harder to achieve if you are a student as you do not have steady income and therefore need to plan your expenditure accordingly. Use your credit card only when you really need it, and set payment reminders in your personal calendar each month.

Some students practice credit card surfing by using a 0% APR student credit card, maxing out the credit limit and getting a new card for their upcoming expenses. This does huge damage to your credit report as you are basically living off debt even before you have the ability to earn your first paycheck. Whats more, when the 0% APR term is over, your interest rates will escalate and your debt will snowball rapidly. At this point, your credit report will be tarnished, leaving you with a pile of debt that you struggle to pay off and high interest rates for future credit applications. Your only option now would be to adopt a credit repair strategy, which will most likely be painful on your ludicrous lifestyle.