Low Interest Credit Card

February 16th, 2009

Want to what is so great about the APR (annual percentage rate)? APR is the interest rate charged by credit card issuers, to compute the amount of money, you have to pay for using your credit card and carrying an outstanding monthly balance. If you make purchases or a cash advance and have not repaid the amount by your monthly credit card bill due date, you must pay the issuer the amount borrowed, in purchases or cash advances, along with the interest that the card issuer has charged to your account, on a monthly basis. But if you pay in full the whole balance, by the credit card bill’s monthly due date, there is no need to pay any interest.

So if you cannot pay your entire balance every month, opt for a low interest credit card. By using a low interest credit card, you will save money by paying a lesser interest amount, as long as they have an outstanding credit card balance. Saving money using a low interest credit card is excellent for those people who want to keep an unpaid monthly balance on their credit card.

But some people don’t actually need a low interest credit card. They pay their whole credit card bill each month. They mainly use a credit card due to its convenience and hosts of other card benefits like cash back, travel rewards, purchase discounts etc. Hence the interest rate on the card is insignificant for them.

Those who want to carry a monthly balance should go for a low interest credit card. However it is better to shop for different low interest credit cards to choose the card that matches their financial needs the best.

Spend some time to find out if you actually need a low interest credit card. If you want or require a low interest credit card, ensure you go for the one most suitable for you. Proper selection of right credit card now, can save you plenty of money on prospective card purchases and cash advances.

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Difference Between Debit And Credit Cards

February 16th, 2009

Debit cards have eliminated the need for a person to write a check to withdraw cash, or carry cash while shopping. In the old days, they carried the bank logo on them, your account number and your name. But today they resemble the credit cards. They carry credit card logos, and can be used anywhere to buy goods including on the internet.

A debit card lets you use your own money to buy goods. The money used in conjunction with that card is your money. On the other hand, when using a credit card you’re using borrowed money that you agree to repay later on. This money is borrowed from the credit card issuer, which is normally a banking institution. Both cards resemble and function similarly, but there are some subtle differences in case of consumer protection. If someone steals your credit card you are held liable to the initial $50 of theft unless you report the loss before it is used by the thief. Then you are not liable for any fraudulent charges.

MasterCard and Visa provide zero liability protection where you don’t pay any charges if someone makes fraudulent purchases on your credit card. The similar fraud protection is applicable for a debit card, with some exceptions. Your liability is still $50, provided you inform your financial institution within 2 business days of losing your card. Failure to report a lost or stolen card, can increase your liability to $500. Also check your bank statement frequently. Don’t just glance over it, but go through it carefully. If you notice any fraudulent charges on it and don’t report it within 60 days, you are held completely liable.

In many instances, you can avail of extra protection against unauthorized use of your cards through homeowners or renters insurance. You can find out more about this by going through your policy or contacting your agent.

By now you must be wondering which cards you should use when. Most experts recommend you should use your debit card wherever you use cash e.g. groceries. An important thing to remember while using your debit card is that you must have adequate funds in your account to pay for your purchases.

For online transactions, a credit card is the best bet. This is because it is easier to dispute unauthorized purchases made on a credit card. Besides, if your purchase arrives damaged the credit card company will not levy any charges till the matter is sorted.

Remember, both cards are essential but you need to know when to use the correct one. Every card has an important use. The faster you learn how to use both cards your life will be simpler.

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Chase Platinum Visa Credit Card Review

February 16th, 2009

A great combination of flexibility, convenience and excellent rewards in credit cards, is synonymous with the Chase Platinum Visa Credit Card. It offers get a 0% intro APR for nearly a year. The duration of the introductory rate will either be 12 months for purchases and balance transfers or 3 months for balance transfers only, depending on how Chase views your application and credit history. Another advantage is that as of now, there is no annual fee charged for the Chase Platinum Visa Card. You are also eligible to get various excellent cardholder benefits like partaking in Chase’s Flexible Rewards Program; where you get 1 point per qualifying dollar spent. You can then redeem these points either for cash back, gifts, travel or gift cards, based on your choice. If you pay your bill in full every month by due date, the Chase Platinum Visa Credit Card does not charge any interest.

In rewards program, you don’t get points on fees for products that protect or insure the balances of your account. But it is to be expected and there is no need to object in many instances. You must follow the rules governing the account, in order to be eligible for the 0% intro APR. Besides, Chase applies the payments to intro balances to those balances with higher APRs. This implies the duration of your introductory rate may fluctuate as per your payment amounts and the APRs for other balances on your account.

To use travel agency services, you have to pay a fee of $14.95 for “mileage redemption”. Like many rewards programs for credit cards available today, airline and equivalent rewards carry some program restrictions. These restrictions include space and fare availability, and you must book 21 days in advance, along with specific conditions regarding Saturday night stays. The Chase Platinum Visa Flexible Rewards points can be redeemed for airline flights on carriers such as American, Delta, United, Continental, Northwest, U.S. Airways etc. The points cannot be transferred to other frequent travel programs, as is the case with most air mileage rewards programs today. A guide detailing various benefits offered by the rewards program will be sent to you after approval if you are allowed to become a cardholder of the Chase Platinum VISA Card.

Don’t forget to read the terms and conditions of the offer completely before applying for this card; as they can be changed and what is available today, may not be valid after some time.

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College Student Credit Cards

February 16th, 2009

For a student interested in building their credit history and getting rewarded for regular purchases, a college student credit card is your best bet. Student credit cards are an effective method for a student to build their credit history while still studying. These types of credit cards also come with exclusive features for their users like fraud protection, travel accident insurance, auto rental insurance and travel emergency assistance. They also offer discounts and rewards for shopping at certain merchants and retailers. Rewards can also be earned if you use specific card at certain book stores, record stores, video rental stores and movie theaters. Also some college student credit cards reward their users for making timely payments and keeping a high score.

Citi mtvU Platinum Select Visa Credit Card for College Students

For a college student interested in a credit card with excellent rewards while building your credit, then Citi mtvU Platinum Select Visa card is an ideal choice. You can use the points earned from this card for getting gift cards, CDs, VIP mtvU Spring Break Passes, tickets to the MTV Video Music Awards, airline tickets and rebates on purchases at the MTV online store and the MTV New York City Store. Every dollar spent at select restaurants, bookstores, record stores, movie theaters and video rental stores fetches you 5 points. For making timely payments, you get 25 bonus points and maximum of 2000 additional points per semester for keeping a high GPA. It offers various platinum benefits besides an interest free introductory period and no annual fees.

Citi Driver’s Edge Card for College Students

For a college student who drives regularly, the Citi Driver’s Edge Card for College Students credit card is the best one. It gives users points for each mile driven along with purchases made. These points can be redeemed towards the buying or leasing of either a new or used vehicle. You get $1 per 100 miles driven and the rebates can be utilized for making payments, maintenance, service and repairs on your vehicle. Along with getting points for driving, you also get a 3% rebate for shopping at supermarkets, drugstores and gas stations and 1% for all other shopping. It also comes with an interest free introductory offer for 6 months and no annual fees. However the interest rate is slightly higher than the average after the introductory period ends.

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HSBC Gold Credit Card Review

February 16th, 2009

The Orchard Bank Gold Master Card®, from HSBC Bank Nevada, N.A., is meant for people with an average or a short credit history. They don’t want to pay a deposit in order to get a credit card, which is what normally happens with a secured card.

Although the card is useful to you in repairing your credit, it’s important to observe that cardholders have to pay fees to avail the opportunity. Most of the applicants for the Orchard Bank Gold Master Card are unlikely to be selected for a better credit card without having to pay a security deposit. Hence the fees are a small price to pay to avail of the benefit of restoring your credit. Fees consist of an annual fee and an application fee to open the account.

Though the card is beneficial for people with short credit history, it does possess many expensive features, which you should take into account prior to applying.

Orchard Bank Gold Master Card reports all the 3 major credit bureaus, so it is essential you pay on time each month, since it will help repair your credit over a period of time. You will derive maximum benefit by paying your whole outstanding each month, since it leads to lower fees. But if you so desire, Orchard Bank Gold card lets you carry over a balance from each month.

Its interest rate is nominal. It has an annual fee of $79 that is about average for this variety of credit card. Along with it, there is an application fee of $9. So on an average, you can expect to pay $88 in initial year.

This card also comes with regular cardholder features like emergency card replacement, lost and stolen card reporting, and zero liability for unlawful transactions.

Enjoy the repute of a Gold Master Card

Get Gold Card honors and benefits

See your report in all 3 Credit Bureaus every month

Access your Account and pay bill Online 24 x 365 days for free
Enjoy frequent Credit Limit hikes

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Frequent Flyer Business Credit Cards

February 16th, 2009

Business credit cards have different terms of airline miles for each dollar spent and terms and conditions. They have laid down a minimum number of frequent flyer miles to be collected before you are eligible for a free airline ticket and there can be a time limit attached to the benefit, based on the participating airline. These conditions are outlined in your business credit card agreement. So spend some time studying to help you get the most from your business credit card.

Nevertheless, all these business credit cards that come with frequent flyer features can give significant travel savings for your business. But keep in mind that there could be higher interest rates once the introductory period is up. Also good frequent flyer business credit cards levy annual fees each year. Spend time to compare the different frequent flyer business credit cards, so as to choose the one that fits its cost and rewards package with your business needs.

Always give top preference to those frequent flyer business credit cards that come without annual fees. You are quite likely to encounter various $0 annual fee business credit cards that give bonus miles on your initial purchase and the most common 0% APR on purchases and balances transferred from other business credit cards. This 0% APR offer is valid for a predetermined introductory period, usually between 6-15 months. Once the introductory period is up, still keep on paying off the whole balance on your business credit card within the grace time given by the bank in order to save on the interest costs.

For example, American Express Gold Delta SkyMiles Business Credit Card gives 15,000 free bonus miles after your initial purchase. Moreover for each employee business credit card you issue, you are given 1,000 bonus miles extra. This is limited to 5 employees and gives you a 5,000 bonus miles. You get 2 miles per qualifying dollar charged to your business credit card on shopping at select supermarkets, drugstores, home improvement and hardware stores, gas purchases, wireless phone bill payments and Delta airline tickets.

Chase Continental Airline Business Credit Card’s strategy is to give a 5% discount on purchases of Continental airline tickets in the first year of your business credit card membership, which is what separates it from other business credit card issuers.

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Platinum Credit Cards Benefits

February 16th, 2009

More than the attractiveness of the card itself, a platinum card gives a far higher credit limit than the normal card and getting one is not quite as simple as getting the normal credit cards. Most companies expect applicants to have a good credit score to be eligible to obtain the platinum credit card as platinum credit cards provide far superior benefits than other credit cards. The credit score needed is associated with the quantity of credit the card issuer offers with the platinum credit card. As the credit limit on a platinum credit card is much more than most cards, the card issuer requires some guarantee that the cardholder will pay the balance on time. Platinum credit cards offer a lot more benefits and features than a standard or gold credit card. Moreover platinum credit cards normally carry a lower interest rate than regular and even gold credit cards. After you have proved to the credit card companies that you are capable of paying your bills and you are quite safe, they may simply give you a platinum credit card. As long as you keep on paying the bills on time and develop your credit then you might be given a platinum card within 3 months. Platinum cardholders start developing their credit from lowest level and then go up the ladder by making timely payments.

So what is the difference between a platinum credit card and others? You get reward points if you use the credit card for shopping and any other transaction. These points depend on the amount spent. Usually it is 1 reward point per dollar spent on credit card. Unlike the normal credit cards, platinum credit card gives you a fixed rate. The other benefits for the platinum credit card holder are: rental car insurance, travel accident insurance, etc. Other major benefits accompanying the platinum credit cards are: lower interest rates, higher credit limits, periodic credit limit hikes, no annual fee, extra benefits, savings and rewards, like fraud protection service, cash back programs, and frequent flier miles. The reason these credit cards carry excellent rewards because credit issuers are interested in keeping people with excellent credit happy.

Platinum credit cards are normally advertised in television or newspapers, direct mail or telephone solicitations. The rules governing platinum credit card differ between the card issuers. If a credit card company finds out that you have an unpaid credit, they are interested in retaining your business, and hence lot of companies offer platinum credit cards, to differentiate you from the people with good credit. A company offers you a platinum credit card to reward you for having excellent credit, while simultaneously attempting to lure or retain your business. Practically all instances of platinum credit cards are given to those consumers who make quite expensive purchases on their credit card. A platinum credit card can be an excellent choice if you make routine and expensive purchases on your credit card and repay the entire debt by the month end. The low interest rate is a gift to platinum customers for the quantity of purchases they make on their platinum credit card. One of the best methods of obtaining the platinum credit is to look for it on the internet. Students normally are ineligible for platinum credit cards, since they don’t have excellent credit, nor do they own homes or other major assets on which to build their credit.

A platinum card can be an excellent financial tool for regulating your everyday spending. The low interest rates, excellent benefits and high credit limits, make the platinum cards highly desirable to the huge majority of credit card holders. You may or may not be holding a platinum card. In case if you don’t have one, go ahead and get one. In case you have one, go ahead and apply for 1 or 2 more.

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How To Dispute An Item On Credit Report

February 16th, 2009

You can dispute anything on your credit report, but first you should begin with any information you notice is outdated, wrong or misleading.

Scan your credit report carefully or mark any doubtful information or want to eliminate or erase.

After you have identified the details you want to dispute, you will have to write a dispute letter for every item.

Credit Bureaus are not obliged to validate a disputed item that they regard as frivolous.

To prevent being labeled as a frivolous dispute, it is better to dispute every item with a separate letter. Some experts maintain it is to your advantage to write your letters by hand.

If you just send a letter for every item you want to dispute, written on one page, they are quite likely to label your dispute as frivolous. Also change the reason for your disputes based on what item you are disputing.

A WORD OF CAUTION!!!

CAREFULLY RECORD EVERYTHING YOU ARE DOING!!

Keep copies of ALL of your dispute letters, and retain one for yourself. Remember to sign and date everything. Good documentation of your case can dramatically improve the chances of removal.

If you can provide documentation to support your claims, include it with the letter you send. Always keep the originals for your own records and dispatch the copies to your creditors.

When writing a dispute letter, always tell what item you want deleted from your report in a simple direct way, without giving a lot of information. Stress on words such as adverse, destructive, disadvantageous, disturbing, harmful, hurtful, injurious, negative, and unfavorable to indicate how the item is likely to damage your future creditworthiness.

SEND YOUR LETTER TO THE DISPUTE DEPARTMENT OF THE CREDIT BUREAU OR ELSE YOU WILL NOT SUCCEED!!

Send the letter by certified mail and standard first class with proof of mailing. The reason for sending your letters in this way is to prevent your creditor from denying the receipt of your certified mail, and if you can show that you have also sent a standard first class mail(along with proof), you can show you made a genuine attempt to contact the creditor by all possible means. Ensure you make copies of the ENVELOPES and the letter you are mailing

ALWAYS SEND PROOF OF YOUR IDENTITY ALONG WITH EACH LETTER!

Each letter should include a copy of your Social Security Card or Drivers License AND proof of address like a utility bill or phone bill having your name and address on it.

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Pros and Cons of Owning Multiple Credit Cards

February 16th, 2009

Multiple credit cards have their own collection of pros and cons. If you want to own multiple credit cards, you can obtain various benefits, while also losing out in some areas.

The Pros of Having Multiple Credit Cards

Multiple credit cards provide many benefits. For example:

Many cards are not accepted by all merchants. Some can only accept either Visa or MasterCard. In this case, you may be inconvenienced if you hold only one type of card.

You can use one card exclusively for online transactions. This restricts your exposure to fraud risk to just one card. This card should have a lowest spending limit because in case your details are hacked, it will not affect your finances a lot.

If one of your cards gives you a great deal or ample points for petrol purchases or for airmiles, then you can use that card only for that specific purpose. Regular fliers can keep one card for collecting air miles and use another one that gives a good cash back program. In very rare cases, you’ll get a card offering both the benefits.

You may be eligible for various loyalty programs, gifts, discounts and bonuses on various cards.

Multiple credit cards also help you in building a strong credit rating.

The Cons of Multiple Credit Cards

Each good thing has a negative aspect to it. The same holds true even for multiple credit cards. They make you vulnerable to many risks and dangers. They are:

Multiple credit cards cannot be managed easily. You must pay various bills, note down various credit limits etc.

Unless you are a disciplined, sensible spender, you can easily get caught in small debts on every card. Within no time, these debts can spiral into a large outstanding and can throw you into the frightening debt trap. So unless you are a sensible user, stay away from multiple cards.

Multiple cards can also make your credit rating open to risk various times. If you fail to make payments on even one card, or you completely forget even once, your perfect credit history will not be flawless any more. Moreover numerous cards can cause harmful effect on your credit score. Lenders may think you have multiple credit cards because you are unable to pay outstanding on even one card.

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How To Quickly Improve Credit

February 16th, 2009

Bad or marginal credit today has become commonplace. It doesn’t mean the person is bad, since bad credit can occur due to sudden unprepared illness or emergency, a job layoff, etc. Many people don’t have adequate savings to overcome a severe and expensive emergency or job loss. Research indicates many families are barely separated from bankruptcy by a thin line, implying the gravity of situation. To prevent this, cut out all unwanted expenses.

The initial step a person with bad credit should take is to know the actual amount of your credit. You may have seen only a single credit report or just been informed about what is placed on record by your bank or loan manager or finance manager. But are you aware there are actually 3 different credit-reporting agencies and every one has a different report and score? Simply because one credit report shows you in poor light doesn’t necessarily means the others too do. On the contrary, if one is positive, the others may be just the opposite. As a rule of thumb, they are equivalent, but negative items or entries do remain longer on some then others while others make more mistakes while recording the entries.

Search for any of the 3 major credit bureaus (simply google the names of Experian, Equifax, and Transunion) and pay to get all 3 reports in a single report along with your credit score. Take all 3 since they are quite likely to be slightly different. The report is necessary to help you actually measure and understand exactly how bad your situation is and the steps required to better and repair it. Price of all 3 in a single report is nearly $40 to $50, but worth it. Free reports that you can get according to latest federal laws will only be provided by a single credit bureau but without score. This makes it very difficult to know your position unless you work in an influential position in credit institution.

For score 600 and higher your credit is average, but not bad. There is not much to repair. For score 500 or below, you mostly will have plenty of negative entries, mostly tax liens, judgments, repos (car repossessions), a likely bankruptcy, and/or other serious damaging records and entries in your reports. A low or bad credit score requires a lot of work and effort, but you can still increase your credit rating very quickly.

Once you get your credit report and scores, find out the most important credit reporting bureau for your part of the country (every bureau has a specific area of influence). The simplest thing to do is to talk to your local new car dealer and find out from the finance manager which credit report they normally use to establish credit. Generally it is only one and it is the one that will be most influential in your location and the first one you should mend.

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