Your credit score may just be a little number, but it packs a big punch. A poor credit score can keep you from getting a mortgage or a car loan. In addition, your credit score may haunt you for a long time if it suddenly drops. Of course, if you have a good credit score it opens a lot of doors for you. This is just one reason why it is important to think about which credit card you apply for before you do.
Every time you apply for a credit card, the company has to check your credit score. This is a bad thing. Numerous inquiries from credit card companies look bad on your credit report because it looks as though you are scrambling to open lines of credit, which can be a sign that you are struggling financially. Of course, this may not be the case. However, credit scoring companies all look at it the same way.
You can avoid scarring your credit score with credit card applications by choosing your card wisely. Choose a card that matches your lifestyle and works for you instead of against you. If you plan to pay off your balance each month, you might want a charge card instead of a credit card. American Express offers a number of charge cards with flexible spending programs that are perfect for people who plan to pay off their balance each month. They also offer some flexibility so that if you have an emergency you can use the card and pay off large charges over time. In addition most of their cards offer you reward points for using the card. On the downside, American Express charges an annual membership fee for having the card.
If you do not plan to use the card often, but plan to make large purchases on the card, which you will pay off over time you should get a revolving credit card, which allows you to carry a large balance over time. Of course there cards require you to pay interest on everything you buy. Interest expenses can get very high.
Other kinds of cards include:
1) A check guarantee card, issued by your bank, that you can use to ensure that your cheque will be honoured up to a certain limit.
2) A debit card, issued by your bank, where whatever you spend is immediately deducted from your bank account
Do you need a credit card?
a) A credit card means you don't need to carry huge amounts of cash around and risk losing it.
b) A credit card means you can buy items over the internet.
c) A credit card means you can make purchases abroad without having to worry about local currency.
d) A credit card gives the opportunity to spread the cost of a large payment over several months.
e) A credit card is useful in an emergency. For example, an unexpected repair to your house or car.
What You Need To Consider:
1) APR (Annual Percentage Rate)
This is the rate of interest that you will pay on any outstanding balance.
2) Special Introductory Rates
You may be offered a low or 0% rate of interest for a limited time (Up to 6 months) when you sign up for a new card. A higher rate of interest may be charged for cash withdrawals.
3) Balance Transfer Rate
Card issuers may offer you a lower rate of interest if your swap your balance from another credit card to theirs.
4) Interest Free period
Remember to check when interest payments will begin. Will you pay interest from the day of the purchase? Or will you have a number of days interest free before you begin to pay? There is usually no interest free period for cash withdrawals.
5) Cashback and Rewards
Some cards over points or rewards for every pound spent on the credit card. Make sure that these are appropriate for you. For example, there&'s no use collecting airmiles if you never fly.
6) Minimum Repayment
Remember to check what the minimum monthly repayment will be. If you borrow £1000 on your credit card the monthly minimum repayment will probably be in the region of £25. But if you only pay this amount each month it will take a long time to pay off the balance and cost a lot in total when you include the interest payments.
7) Annual Fees
This is the fee that the issuer will charge you every year for using their credit card. Not all credit cards have an annual fee, so remember to consider this when you are choosing which one is right for you.
8) Late Payments
There will be an extra charge, as well as the interest owed, if your payment is late. This charge may even be more than the amount you owe so be very careful to check what the charge is, and to ensure that all your payments are made on time. A good way of doing this is to set up a direct debit from your current account.
9) Exceeding Your Limit
You may also be charged a fee if you exceed your credit limit.
Choosing the right credit card is a complex decision, but it can be made easier by using the free online credit card finders at http://www.creditcardbuzz.com.
Stephen Kelly is a financial advisor and the founder of Credit Card Buzz (http://www.creditcardbuzz.com). A free site with credit card reviews, ratings, analysis and online applications.
Thursday, June 4, 2009
5 Ways To Prevent Credit Card Late Fees (by Gary Gresham)
Paying a credit card late fee is the same as throwing your money away. Late credit card payments can also hurt your credit score. The payment tips and strategies here will show you how to prevent these costly fees.
When credit card companies process credit card payments, every single detail is extremely important. Get even one of these small details wrong and you will have to pay credit card late fees.
The Fair Credit Billing Act requires credit card companies to credit payments the day they are received. However, this law also allows each credit card issuer to set their own specific payment guidelines. If any of these guidelines are not met, the credit card company can take as much as five days to credit the payment.
That means you can get your payment to your credit card company on time and it could become late during that five-day period. The credit card company could legally charge you credit card late fees. So it's in your best interest to follow their payment guidelines carefully. The payment guidelines are usually on the back of your credit card bill.
Here is the five best ways to prevent credit card late fees.
1. Follow Credit Card Payment Guidelines Carefully
This includes everything from a specific payment address to the time of day the payment has to be received to be credited that day. Some companies even require that payments arrive in their preprinted envelope they sent you with your bill. To be safe, always use the preprinted envelope provided by a credit card company.
Include the billing coupon, and write the amount you are paying in the box provided. Make your check legible, don't forget to sign it and double check that the payment amount is correct. Write your credit card account number on your check and send the payment with the proper postage to the payment address requested by the credit card company.
2 Pay The Minimum Payment Immediately
The best way to prevent paying a credit card late fee is to pay your bill as soon as it arrives. Even if you can only make the minimum payment, it's better than paying a late credit card payment. You can always make additional payments later to keep your interest costs down.
3 Change Your Due Date
Most major credit card companies allow you set your own due date by just asking. Set your due date so your credit card bill arrives right after you get paid.
4 Automatic Online Payments
Paying bills online is also another good way to avoid paying a credit card late fee. Most major credit card companies are accepting credit card payments online. Just sign up for the service on the card company's web site. Make sure to choose a payment amount that automatically covers the minimum amount due on your credit card each month. You can always make additional payments later to keep your interest costs down.
5 Make Your Payment By Phone
Most major credit card companies will accept payments by phone. Some of them will charge fees, ranging from $5 to $15 for the service. But credit card late fees cost you much more so it's better to pay the small fee than a late credit card payment fee. Call the toll-free number on the back of your credit card. They will ask you for a check number and the bank routing number, which is printed at the bottom of every check.
If you do get hit with a credit card late fee, try calling the credit card company and ask if they will waive it. Many credit card companies will waive late credit card payment fees as a courtesy to customers with good payment records.
Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative facts that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html
When credit card companies process credit card payments, every single detail is extremely important. Get even one of these small details wrong and you will have to pay credit card late fees.
The Fair Credit Billing Act requires credit card companies to credit payments the day they are received. However, this law also allows each credit card issuer to set their own specific payment guidelines. If any of these guidelines are not met, the credit card company can take as much as five days to credit the payment.
That means you can get your payment to your credit card company on time and it could become late during that five-day period. The credit card company could legally charge you credit card late fees. So it's in your best interest to follow their payment guidelines carefully. The payment guidelines are usually on the back of your credit card bill.
Here is the five best ways to prevent credit card late fees.
1. Follow Credit Card Payment Guidelines Carefully
This includes everything from a specific payment address to the time of day the payment has to be received to be credited that day. Some companies even require that payments arrive in their preprinted envelope they sent you with your bill. To be safe, always use the preprinted envelope provided by a credit card company.
Include the billing coupon, and write the amount you are paying in the box provided. Make your check legible, don't forget to sign it and double check that the payment amount is correct. Write your credit card account number on your check and send the payment with the proper postage to the payment address requested by the credit card company.
2 Pay The Minimum Payment Immediately
The best way to prevent paying a credit card late fee is to pay your bill as soon as it arrives. Even if you can only make the minimum payment, it's better than paying a late credit card payment. You can always make additional payments later to keep your interest costs down.
3 Change Your Due Date
Most major credit card companies allow you set your own due date by just asking. Set your due date so your credit card bill arrives right after you get paid.
4 Automatic Online Payments
Paying bills online is also another good way to avoid paying a credit card late fee. Most major credit card companies are accepting credit card payments online. Just sign up for the service on the card company's web site. Make sure to choose a payment amount that automatically covers the minimum amount due on your credit card each month. You can always make additional payments later to keep your interest costs down.
5 Make Your Payment By Phone
Most major credit card companies will accept payments by phone. Some of them will charge fees, ranging from $5 to $15 for the service. But credit card late fees cost you much more so it's better to pay the small fee than a late credit card payment fee. Call the toll-free number on the back of your credit card. They will ask you for a check number and the bank routing number, which is printed at the bottom of every check.
If you do get hit with a credit card late fee, try calling the credit card company and ask if they will waive it. Many credit card companies will waive late credit card payment fees as a courtesy to customers with good payment records.
Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative facts that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html
What You Need To Know About Credit Cards (by Phil Edwards)
What is a credit card?
A credit card is a card that allows you to borrow money to pay for things. There will be a limit to how much you can spend called your credit limit. At the end of each month you can either pay off the whole of the amount you owe or make a minimum repayment.
Other kinds of cards include:
1) A cheque guarantee card, issued by your bank, that you can use to ensure that your cheque will be honoured up to a certain limit.
2) A chargecard where you have to repay the full amount at the end of each month.
3) A debit card, issued by your bank, where whatever you spend is immediately deducted from your bank account
Do you need a credit card?
Using a credit card is a useful way of making purchases:
a) A credit card means you don't need to carry huge amounts of cash around and risk losing it.
b) A credit card means you can buy items over the internet.
c) A credit card means you can make purchases abroad without having to worry about local currency.
d) A credit card gives the opportunity to spread the cost of a large payment over several months.
e) A credit card is useful in an emergency. For example, an unexpected repair to your house or car.
How do you choose a credit card?
The main two UK credit card issuers are Visa and Mastercard. These are accepted in most places and in 130 countries worldwide. Beware of less well known brands that may not be accepted everywhere.
Before you choose which credit card is the best for you, remember to read the terms and conditions carefully. Never sign up for a credit card without fully understanding what you are agreeing to.
Remember that all the plus factors will be prominently displayed in large print.
You may have to study the small print carefully to discover if there are any negative factors.
A list of the current cards on offer in summary is available on this credit card summary page.
What You Need To Consider:
1) APR (Annual Percentage Rate)
This is the rate of interest that you will pay on any outstanding balance.
2) Special Introductory Rates
You may be offered a low or 0% rate of interest for a limited time (Up to 6 months) when you sign up for a new card. A higher rate of interest may be charged for cash withdrawals.
3) Balance Transfer Rate
Card issuers may offer you a lower rate of interest if your swap your balance from another credit card to theirs.
4) Interest Free period
Remember to check when interest payments will begin. Will you pay interest from the day of the purchase? Or will you have a number of days interest free before you begin to pay? There is usually no interest free period for cash withdrawals.
5) Cashback and Rewards
Some cards over points or rewards for every pound spent on the credit card. Make sure that these are appropriate for you. For example, there&'s no use collecting airmiles if you never fly.
6) Minimum Repayment
Remember to check what the minimum monthly repayment will be. If you borrow £1000 on your credit card the monthly minimum repayment will probably be in the region of £25. But if you only pay this amount each month it will take a long time to pay off the balance and cost a lot in total when you include the interest payments.
7) Annual Fees
This is the fee that the issuer will charge you every year for using their credit card. Not all credit cards have an annual fee, so remember to consider this when you are choosing which one is right for you.
8) Late Payments
There will be an extra charge, as well as the interest owed, if your payment is late. This charge may even be more than the amount you owe so be very careful to check what the charge is, and to ensure that all your payments are made on time. A good way of doing this is to set up a direct debit from your current account.
9) Exceeding Your Limit
You may also be charged a fee if you exceed your credit limit.
Will Your Application Be Accepted?
Whether or not your application is successful will depend on your credit rating. Your credit rating depends on your credit history (a record of your use of credit) and is based on the record of your ability to repay debt.
You can obtain a copy of your credit file by contacting a credit reference agency. There may be a small fee for this service.
When you application has been accepted you will be given a credit limit. The credit limit will be fixed when you first apply for your card (although you can ask for it to be increased or decreased later) and the limit, including the amount you have left available to spend, will be shown on your monthly statement.
Insurances and Protection.
What You Can Do:
1) Take good care of your credit card to ensure that it isn’t lost or stolen.
2) To prevent misuse of your card you must report any loss or theft of your card to the issuer immediately. Many issuers allow you to register all your cards with them so that in the event of you losing a purse, handbag or wallet they can all be cancelled with just one phone call.
3) You must keep all your receipts and also check your statement carefully and report any suspicious transactions. For example payments that you have no record of making.
4) Credit card companies are now issuing cards with PIN (Personal identification numbers) which are known as Chip and PIN cards. Rather than signing your name you will be asked to enter your PIN onto a keypad. You must ensure that you keep this number secret.
What The Issuer Will Do
1) The issuer should insure you against loss, misuse or theft of your card.
2) The issuer may also insure your purchases for up to 100 days.
3) Your issuer may also provide protection against you being sold unsuitable or shoddy goods.
Important Points To Remember:
a) Credit cards can be a very useful tool to help you to manage your finances.
b) Choose your card carefully, remembering to read and understand all the terms and conditions before you sign up.
c) Remember to set yourself a budget and decide how much you will pay off each month.
d) Check your statements carefully each month.
e) Look after your card to prevent it being lost or stolen.
For a glossary of the terms mentioned in this article please visit the credit card glossary page.
Phil Edwards is a Business analyst in the city of London, freelance writer for several finance magazines and websites and co-owner of 1st UK credit cards and 1st UK bank accounts
A credit card is a card that allows you to borrow money to pay for things. There will be a limit to how much you can spend called your credit limit. At the end of each month you can either pay off the whole of the amount you owe or make a minimum repayment.
Other kinds of cards include:
1) A cheque guarantee card, issued by your bank, that you can use to ensure that your cheque will be honoured up to a certain limit.
2) A chargecard where you have to repay the full amount at the end of each month.
3) A debit card, issued by your bank, where whatever you spend is immediately deducted from your bank account
Do you need a credit card?
Using a credit card is a useful way of making purchases:
a) A credit card means you don't need to carry huge amounts of cash around and risk losing it.
b) A credit card means you can buy items over the internet.
c) A credit card means you can make purchases abroad without having to worry about local currency.
d) A credit card gives the opportunity to spread the cost of a large payment over several months.
e) A credit card is useful in an emergency. For example, an unexpected repair to your house or car.
How do you choose a credit card?
The main two UK credit card issuers are Visa and Mastercard. These are accepted in most places and in 130 countries worldwide. Beware of less well known brands that may not be accepted everywhere.
Before you choose which credit card is the best for you, remember to read the terms and conditions carefully. Never sign up for a credit card without fully understanding what you are agreeing to.
Remember that all the plus factors will be prominently displayed in large print.
You may have to study the small print carefully to discover if there are any negative factors.
A list of the current cards on offer in summary is available on this credit card summary page.
What You Need To Consider:
1) APR (Annual Percentage Rate)
This is the rate of interest that you will pay on any outstanding balance.
2) Special Introductory Rates
You may be offered a low or 0% rate of interest for a limited time (Up to 6 months) when you sign up for a new card. A higher rate of interest may be charged for cash withdrawals.
3) Balance Transfer Rate
Card issuers may offer you a lower rate of interest if your swap your balance from another credit card to theirs.
4) Interest Free period
Remember to check when interest payments will begin. Will you pay interest from the day of the purchase? Or will you have a number of days interest free before you begin to pay? There is usually no interest free period for cash withdrawals.
5) Cashback and Rewards
Some cards over points or rewards for every pound spent on the credit card. Make sure that these are appropriate for you. For example, there&'s no use collecting airmiles if you never fly.
6) Minimum Repayment
Remember to check what the minimum monthly repayment will be. If you borrow £1000 on your credit card the monthly minimum repayment will probably be in the region of £25. But if you only pay this amount each month it will take a long time to pay off the balance and cost a lot in total when you include the interest payments.
7) Annual Fees
This is the fee that the issuer will charge you every year for using their credit card. Not all credit cards have an annual fee, so remember to consider this when you are choosing which one is right for you.
8) Late Payments
There will be an extra charge, as well as the interest owed, if your payment is late. This charge may even be more than the amount you owe so be very careful to check what the charge is, and to ensure that all your payments are made on time. A good way of doing this is to set up a direct debit from your current account.
9) Exceeding Your Limit
You may also be charged a fee if you exceed your credit limit.
Will Your Application Be Accepted?
Whether or not your application is successful will depend on your credit rating. Your credit rating depends on your credit history (a record of your use of credit) and is based on the record of your ability to repay debt.
You can obtain a copy of your credit file by contacting a credit reference agency. There may be a small fee for this service.
When you application has been accepted you will be given a credit limit. The credit limit will be fixed when you first apply for your card (although you can ask for it to be increased or decreased later) and the limit, including the amount you have left available to spend, will be shown on your monthly statement.
Insurances and Protection.
What You Can Do:
1) Take good care of your credit card to ensure that it isn’t lost or stolen.
2) To prevent misuse of your card you must report any loss or theft of your card to the issuer immediately. Many issuers allow you to register all your cards with them so that in the event of you losing a purse, handbag or wallet they can all be cancelled with just one phone call.
3) You must keep all your receipts and also check your statement carefully and report any suspicious transactions. For example payments that you have no record of making.
4) Credit card companies are now issuing cards with PIN (Personal identification numbers) which are known as Chip and PIN cards. Rather than signing your name you will be asked to enter your PIN onto a keypad. You must ensure that you keep this number secret.
What The Issuer Will Do
1) The issuer should insure you against loss, misuse or theft of your card.
2) The issuer may also insure your purchases for up to 100 days.
3) Your issuer may also provide protection against you being sold unsuitable or shoddy goods.
Important Points To Remember:
a) Credit cards can be a very useful tool to help you to manage your finances.
b) Choose your card carefully, remembering to read and understand all the terms and conditions before you sign up.
c) Remember to set yourself a budget and decide how much you will pay off each month.
d) Check your statements carefully each month.
e) Look after your card to prevent it being lost or stolen.
For a glossary of the terms mentioned in this article please visit the credit card glossary page.
Phil Edwards is a Business analyst in the city of London, freelance writer for several finance magazines and websites and co-owner of 1st UK credit cards and 1st UK bank accounts
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