I Shoulda Been Smarter About Credit Cards!
Good Credit Card Advise For The First Timer?
I remember my first credit card like it was just yesterday. There are so many things I did not know when I first applied for it. Just like most kids today, I filled out the application and sent it in and presto there it was in the mail. I ran out the door after activating it and shopped until it was maxed out. Then I learned a hard lesson. I learned about late fees, minimum payments, and ATM fees. Before I knew it I was in debt, and it was the worst kind of debt. This is the debt we can’t get out of. I lost my job shortly after maxing out the card. I had bill collectors calling me and my references, which were my friends asking “where is your payment?” Now after 300 of these phone calls and 4 former friends later I had to find help. Had I only read the terms of the agreement I probably would have walked a little slower out the front door the day I got the card.
Here is some advise for all of you who are about to receive your first credit card. Remember the 3 rules to credit. Rule number one; credit is a privilege not a right. Rule number two; read the terms of your agreement several times before you activate the card. Make sure you understand all of the terms of the agreement. Rule number three; remember that if you go over board with your spending to refer back to rule number one. If you get behind in payments the card-issuing bank will hit your credit report. In other words game over!
I recommend that parents should first teach their kids about credit. At my house my teenage daughters both get a prepaid card. When they need money like a loan for say. I load what they need on the card. In return they have to work off the balance. If they don’t then the card is taken away, and the debt has to be worked off before they get the card back. This is similar to the way real life works. The only difference is that the mark on the credit report stays.
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Author Don McKay Copy Right 2007 www.liteloan.com
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Got Alot Of Credit Card Debt? This Might Help
10 Steps To Tackling Your Credit Card Debt Problem
First of all, you can take comfort in the fact that you are not the only one fighting credit card debt problems. There are hordes of people who have even worse credit card debt problems when compared to yours; all of them seeking an effective way to eliminate the credit card debt. So what is the solution to your credit card debt problem?
Well, the solution really is to smash the credit card debt with full force and eliminate it completely. Now how do you do that?
There are many ways in which you can solve your credit card debt problem. Different people suggest different ways of tackling it. However, here is a simple step by step account of what you can do to get rid of your credit card debt.
1. Take stock of the situation i.e. draw up a table with the following fields – Credit card name, balance, payment due day (the day of the month by which you are required to make payment of your credit card bill), APR, reward points earned, redemption offers applicable for your reward points balance, remarks.
2. Fill the table up with data from your various credit cards.
3. Check if any reward points that you may have accumulated can be used to make partial payments or cover any kind of fees or even if the points can be bartered for something you need.(spending less means preventing the credit card debt problem from getting worse).
4. If you have any available credit on any of your credit cards it would worth your time to call those credit card companies and check on the availability of lower interest rate balance transfers. If they offer reduced interest rate balance transfers, it would be wise to transfer any balance of a higher interest rate credit card.
5. You may also consider applying for another credit card (I know, I know, your trying to eliminate your credit card debt, not create more.) Hear me out first. If you can get a lower interest rate balance transfer credit card that you may be able to consolidate one or more of your credit cards into one, this would allow you to do two things: first you can eliminate at least one (hopefully more) of your higher interest rate cards. Second, it will cause your required monthly payment to be lower allowing you to pay a larger amount towards your principal, not just your interest.
6. First eliminate debt on the credit card contributing the most to your credit card debt problem i.e. highest APR (interest rate) and highest balance. Start with one. Pay the minimum required monthly payment on all the other credit card while applying the most money you can afford to the credit card first on your list to pay off. This will allow you to reduce the balance faster and to break the cycle of the never ending balance payoff.
7. Once you have eliminated the debt from one credit card, do yourself a favor and destroy it. In todays day and age it is almost a necessity to have a credit card, but you only need one and if you have to use it, you should pay the balance off completely every month.
8. Practice controlled and healthy spending habits (after all you are looking to get rid of credit card debt problem for good and not just temporarily.
9. Look for alternative means of adding to your income (more money means earlier termination of credit card debt.)
10. See your debt reduce with time and celebrate the day when you finally put an end to your credit card debt problem.
Remember,it is ultimately up to you to make a change in the way you use and percieve credit cards and credit card debt. You CAN take control of your financial future and put and end to credit card debt forever.
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About the Author
At http://www.creditcardrecap.com it is our mission to not only provide you with the information you need to accurately compare and apply for a variety of quality credit cards, but also provide online resources for all of your credit card matters. For more credit card information and online resources, simply go to http://www.creditcardrecap.com
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Low Interest Rate Credit Cards
When looking through credit card offers, it is important to look past the teaser introductory rate and find the actual interest rate associated with the card. The interest rate is the actual rate you will pay on transactions for the life of the card. There are two types of interest rates available: fixed and variable. A fixed rate is the preferred way to go because the rate will always stay the same for as long as you have the card. With a variable rate card, the interest can go up over a period of time based on the issuer. This is bad because you might start with a low interest rate, but end up with a high rate over time. When looking for a new credit card, the key is to look for a low interest credit card offering a fixed rate.
Below are the reviews of two low interest rate credit cards with fixed rates.
Pulaski Bank Visa / MasterCard
The Pulaski Bank Visa/ MasterCard is a great card for users who are looking for a low cost, low interest credit card and have an average credit history. This card offers an attractive introductory rate of 0% for the first six months on balance transfers and purchases. The best feature of this credit card is the low interest rate. Users can receive a fixed interest rate of 7.99% on purchases, cash advances, and balance transfers. This is great for those who plan to carry a balance from month to month. Aside from the rate, this card has an annual fee of , which is very reasonable considering the low rate. The only downside to this card is the fact that there are no extraordinary benefits offered, which is not an issue for most users. The Pulaski Bank Visa/MasterCard is an ideal card for users who want a low interest credit card and don’t mind the lack of special benefits.
Bank of America Rewards American Express Card
The Bank of America Rewards Card is ideal for users with average credit who are looking for a low interest rate credit card that allows them to participate in a rewards program. This card has no annual fee and offers a 0% introductory rate on balance transfers and cash advances for the first year. After the intro rate, users will then have a very low fixed interest rate of 9.99% on purchases and balance transfers. Cardholders can also participate in a rewards program that allows them to earn one point for every dollar spent on the card. The rewards points can then be redeemed for cash, merchandise, gift certificates, hotel discounts, and travel discounts. Aside from the low rate and rewards program, this card also offers benefits such as a personal concierge service, identity theft recovery, and fraud protection. If you would like to participate in a rewards program while taking advantage of a low interest rate, then the Bank of America Rewards Card from American Express is the card for you.
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Get Up to 3% Back On All Your Credit Card Purchases
Credit card companies make money from you – lots of money. So much in fact that they’re happy to send some back in the form or rewards or points. We’ve all the seen the ads for miles, free car rentals, and rewards – the array of options can be confusing.
To make things simple, think of it this way: Credit card companies will assign a dollar value to the rewards they offer you, usually between 1% to 3% of your spending.
Minimum 1% cash value rewards:
One percent is just the beginning, and you should not accept anything less. The 1% may come in the form of credit card rewards or points. You typically get 1 point per dollar spent. When it comes time to redeem those points, guess what: 100 points buys a you a dollar’s worth of rewards – you save a dollar for every hundred you spend. This is okay, but you can do better.
Combination cash back and other perks:
Look for multiple offers with cash back, gas credits, miles, and selected retailer rewards.
No cash-back or points?
If you’re not getting cash-back, miles, or other reward combinations you should be getting an exceptionally low interest rate. If not, consider switching to a new card.
Special offers of 3% and more:
Keep checking the latest offers and you can sometimes find an exceptional deal. For example at the time of writing, Chase Manhatten is offering a triple rewards card that offers 3% back at selected retailers, and 1% back on everything else. Not a bad at all. The key to using your credit card rewards is your spending activity and payment habits.
You stand to save the most when you use (and pay off) your card frequently. If not, consider going for the lowest rate instead of reward options. Remember the rule – you can get 1% to 3% back on everything you buy with your credit card. Spending a little time now will result in big money savings down the road.
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Rewards Credit Cards: 5 Things You Must Know
Two good sites to search for credit cards are “CreditCards” and “ConsumerCardReport”. ConsumerCardReport specializes in providing insightful guidance to consumers. CreditCards lists the most offers, but none of the extra cards seemed worth recommending.
There are a few fairly simple precautions that consumers should take when using rewards cards:
1. Pay it off each month. The interest rate on rewards cards is usually higher than on other credit cards, so make sure you pay the balance in full every month.
2. Avoid late fees. These can be as high as $39, so make it a habit to pay the credit card bill soon after receiving it — don’t procrastinate.
3. Don’t overuse it. Some people are tempted to buy more stuff with their rewards card in order to increase their rebate, which can pile up unnecessary expenses. If you don’t think you can control your spending, don’t get the card! Some rewards cards will pay you a higher percentage as you spend more money, for example a card may pay 0.5% for the first $5,000 you spend and 1.5% afterwards. This encourages excessive credit card spending, which is why we don’t recommend such cards to most people.
4. Make few applications. If you apply for one credit card your credit score will be fine, but as you apply for more cards lenders become more concerned that you may be having money problems. So the more cards you have applied for in the previous six months, the more your credit score will be decreased. After six months, your credit score returns to normal. Our recommendation for most consumers is to make no more than two card applications; but if you plan to get a mortgage or major loan in the next six months, make only one application.
Be aware that the number of credit cards you actually possess won’t harm your credit score. More cards may even improve your credit score by increasing your credit-to-debt ratio. In particular, it’s wise to maintain your card balances at less than half of your spending limits for those cards.
5. Check the terms. The most reliable description of a card’s terms is listed alongside the card application. Although terms can sometimes change, major changes are usually rare.
While the best ways to save money will always involve old fashioned cost-cutting, obtaining a rewards credit card is still a good way to give yourself a virtual raise.
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