How to save 1000s of $ $ $ with Low Rate Credit Cards

The credit card balances are rising faster than consumers can pay for them. And with a card high interest rate, it can be difficult to even make a dent in the debt. According to Consumer Action, a nonprofit, membership-based organization, a March 2004 survey found that only 39% of people said they pay their credit card balance in full each month. So if you're like 61% of all respondents and carry a balance from month to month, then your number one priority for a credit card must be a low interest rate.

What is considered a low-interest

According to Linda Sherry, editorial director and spokesman for Consumer Action, anything below 10% is an attractive rate on the market today.

Look at the savings

Economies are really all that much with a low
Rate credit card? Here is an example to show you how you will save.

Say you have a balance of $ 2,500 on your credit
card, you make the minimum payment of 2.5%, and you do not add new charges to the card. With an APR of 18% (annual rate), you would need 20.3 years to pay the card off at the cost of $ 3,365.51 in interest alone.

If you are able to reduce the rate of interest
standard average fixed rate of 12.99% *, you will reduce the time it takes to repay the debt to 15.2 years and your total interest is $ 1,732.95 - a saving of 48.5% in During the 18% APR.

But if you can qualify for an APR of 9%, your
the debt will be repaid in 12.6 years with a total of $ 977.48 in interest - a huge savings of 71% on the map of 18%. And if you agree to pay the minimum payment the first month of $ 62.50 per month until the entire balance is paid, then you'll shave another 8.6 years and another $ 494.01 in interest.

Who can get the lowest rate

To get the lowest advertised, you will need a good credit rating. While most issuers have their own criteria for a good credit rating, Sherry said that in general, a FICO score of
675 + + is a good and 750 is excellent. If you are in a situation where you need to increase your current score, please read our article is a credit score calculated and how I can improve my
Credit Score?

Where you can find the lowest rates

If you have a good credit rating excellent and according to Gerri Detweiler, founder of DebtConsolidationRX.com and author of The Handbook ultimate credit if you pay 10-12% more than you need to start looking for one more card low and there are several avenues of approach.

Read your mail

Often the best deals come directly to your mailbox. But you need to read the offer carefully to determine if it is an introductory rate or a long-term rates (ongoing). In addition, Sherry says you should look for the words "you are
pre-approved "versus" you are invited to apply. "If it's an invitation, you can not benefit from the announced price, and you will not know until you ask. You must also be aware that you can not get the rate advertised in an offer pre-approved. In fact, you may even be declined for the card. Please be aware that almost all of these offers are e-mail marketing systems rather than actual pre-approved offers.

Learn to negotiate

Mail offers and other low rate credit cards you carry may come in handy as a bargaining tool with the issuer of your card. Scott Bilker, creator and author of DebtSmart.com talk your way out of debt credit card,
suggests calling your issuer and let them know that you are better deals elsewhere and you plan
switch to another card if they will not lower your rate.

Do not be afraid to take control ... in today's saturated market, the credit card issuers are looking to hold on to its customers. If you want to know exactly what to say to a representative of the credit card customer service., Bilker read book, which contains transcripts of telephone conversations with real representatives.

Banks and Credit Unions

When shopping for a credit card with low interest rates, looking for a local bank or credit union may be a good option. In addition to a good rate you can find the customer service more personal and appealing. But be wary of banks that offer a significantly lower rate than large banks or below, especially if you know your credit is not good enough to qualify. Another thing to consider is that introductory rate offers from local banks and credit unions are generally not as aggressive as introductory offers from major banks.

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Posted in: Low Rate Credit Cards

Debt credit card for students: A survival guide for students

College is the last stage of care free before real life begins, or at least it should be. Students should be able to go to sleep every night with the only pressing responsibility being the morning the English exam tomorrow. They still have to learn to live in a world where, although they can not afford much more than the late night drive through occasional Taco Bell or downloading the latest hit single, at least they are not worrying yet to pay a mortgage, most forms of insurance, utility bills or college loan that is allowing them to receive education.

Unfortunately, for many students, this is not the case. Many are already burdened with financial pressure because they have accumulated credit card debt, in some cases, more than $ 7,000 worth of it. Increasingly, students are yet to come on campus with credit card debts under control. Consolidated Credit Counseling Services Inc. reports that 20% of freshman got their credit card in high school and nearly 40% sign up for one of their first year in college. With plenty of on-campus, mail and maps on the Internet offers to give a low introductory rates, freebies, and bonus airline miles, it is not surprising that according to a 2001 study Nellie Mae 83% of all undergraduates have at least one credit card and carry an average balance of $ 2,327.

The debt problem credit card rate has many implications for a student. Some end up dropping out of college all together so they can work full time just to pay bills credit card. If they are able to stay in school, but in the process ruined their credit rating, it can affect their ability to rent an apartment, pay for insurance and even do the work that will help them pay their debts. Even relationships suffer because of financial difficulties. There is also a psychological effect on students. Stress can lead students in depression, and in some cases has been a contributing factor to suicide.

Of course, it was not always like that. According to Dr. Robert D. Manning, professor at Rochester Institute of Technology and author of Credit Card Nation, in the late 1980s the limitations of students by credit card were approximately $ 300 - $ 500 parents were required to co-sign. But when the credit card companies started making a lot of money during the economic recession of 1991, they began looking for new markets and found him in the student population. Issuers eliminated the requirement for co-signature and started raising limits, which, when combined with parents increases the financial pressures and higher costs of education, gave students a way to financed by the university.

And students are an easy market to exploit. In his article "Credit Cards on Campus," Manning wrote, "the credit card companies encourage fantasies of easy money because students are so profitable: teens have financial naivety, the expectations of the material high, and receptivity to marketing campaigns relatively low cost, high earning potential and future demand for financial services. "

Credit companies advertising to the vulnerability of young students is not the only factor in the current trend. Most students simply do not receive education in personal finance management and credit card they need to meet the onslaught of offers. According to Consolidated Credit Counseling Services, Inc., only 15% of high school students take a course in personal finance. And, according to Jump $ tart Coalition for Personal Financial Literacy, a nonprofit organization that promotes financial education in K-12, parents for various reasons are not to talk to their children about the privilege and the responsibility that goes along with using a credit card.

Dr. Carol Carolan, Executive Director and founder of the Center for Education Student Credit Card, says the single best thing parents can do to help their children avoid the pitfalls of credit card debt is educate them. Parents should talk to their children about it early and regularly. Dr. Carolan offers the following tips for parents.
When a child has reached an appropriate level of maturity and understanding of personal finance, co-signing a credit card can be very beneficial.

Get a credit card with a low limit and no annual fee (see "Compendium of cards" of our website to compare prices for credit cards for students).
Talk with your child the details of the credit card, including interest rates on purchases and cash advances.

Review all charges each month.
Show your child what finance charges might apply if the balance is not paid in full and on time. This includes any interest, fees and penalties.
Be a good role model.

Experts do not all agree on the appropriate age for a first credit card. Dr. Manning, for example, states in its Article credit cards on campus that have at an early age may actually result in fewer debt problems later. "Other experts say to wait until junior or senior year in college is the best. The parents need to understand is essential that students once they reach the college campus, they will be overwhelmed by credit card offers and will be able to obtain a card, regardless of whether they are supported financially by their own parents.

And talking with students involves more than simple calculations of costs, interest rates, and balances. Students need to understand the messages they receive through advertising, the difference between a need and a necessity, and the lure of money. Give students a healthy environment, a realistic perspective of money and material possessions, and they will be better equipped to make wise decisions.

Universities and colleges play a huge role in the trend of student debt credit card rate. Some issuers of credit cards welcome on campus because they receive revenue as well. But others are beginning to recognize the problem and restrict the activities of credit card companies on campus. Manning states in his book Credit Card Nation, that "During the 1999-2000 academic year, more than 400 colleges and universities made official policies against on-campus credit card marketing and nearly 600 other schools considering similar restrictions. "

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Posted in: Debt credit card for students

Student Credit Cards Explained

Different people have different needs. Providers and credit cards have also designed different types of cards. In addition to the normal credit cards, there are small business cards for small business and then there are credit cards for students are designed specifically for students.

Now, what is different about student credit cards?

You could say not much, since all credit cards work in much the same way and are used for more or less the same. However, there are two main differences with credit cards for students and these differences are the two main aspects namely the credit limit and APR.

The credit limit for student credit cards is generally very low. This will usually $ 500 to $ 1000 per month. Some people may argue why such discrimination. Well, the reason is very clear and obvious. Most students apply for these credit cards have never used a credit card in their lives and they have neither a credit nor the knowledge about credit cards. While the first is that suppliers seek credit card before providing credit card, the latter is what the credit card holder would like to acquire. The two aims are achieved by keeping a lower credit limit. The provider of credit card reduces the risk they take by issuing a credit card to someone who has never used one and has no credit rating. It's good for the cardholder credit too because it reduces their risk of damage can be caused by little or no knowledge of credit cards and bad spending habits. In addition, the credit limit would be sufficient for the needs of a student in general.

The APR on credit cards to students is generally higher than on normal credit cards. Again, the reason for this is the same as the lower limit either the credit card company credit or credit card provider is after all in business and take steps to mitigate potential risks, including the risk arising from the issuance of a credit card to someone who is naive in terms of knowledge of credit card.

The credit card companies might also keep certain terms and stricter conditions on the credit cards to students and generally require a parent or guardian to sign as guarantor.

Since credit cards are more a necessity than a convenience in today's world, credit cards for students are much recommended, especially as a learning tool to get students prepared for life. Because of their inherent characteristics of credit, etc. lower limit, student credit cards can not lead students in a debt situation totally irreversible. Students should read all instructions provided with their student credit card. The first credit card will teach them to protect themselves against fraud with credit card, which all use their credit card, how to control spending, the benefits of membership of different etc. The sooner they learn these things the better.

In addition, the credit card for students will also help you develop a good credit rating. You should not take credit cards for students lightly. If you spend too much on your student credit card or default on your payments by credit card bill, you will not only end up paying interest on your credit card balance but also ruin your credit rating. Remember that bad credit will not only hinder your chances of getting another credit card later in your life, but also cause problems in the approval of your mortgage / car requests loans, etc.

And credit cards for students are probably a good way for students to begin with credit cards.

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Posted in: Student Credit Cards

Rebuild & Keep Good Credit by understanding your credit cards

Secured credit card is similar to a prepaid credit card since the funds are actually using their own and not the issuer of the credit card. Generally, people who apply for secured credit card or prepaid credit card are people with bad credit or unemployed. Limit spending prepaid credit cards is the amount of money you have loaded on the card. No interest charges or finance in a prepaid card. Secured credit card, your credit line could be 50% to 100% of your deposit depending on the institution giving the secured credit. Therefore, the company that gives you the secured credit card has zero risk.

Secured credit card can be very beneficial because it gives you a chance to rebuild your credit history and are able to store as if there were an unsecured credit card. Many companies require that you have a credit card to make purchases such as car rentals, airline tickets, etc. Make sure that the company issuing the secured credit, publishes periodic payment history of customers anyone of the three major credit bureaus Experian information, Equifax and Trans Union. These reports to credit bureaus to rebuild your credit over time.

Close unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage. Not seeking too much credit in a short period of time is another factor that will contribute to rebuilding your credit. Moreover, while the secured credit is like prepaid cards, have certain rights.
The benefits are similar to that of an unsecured credit card, such as the interest is usually paid on the bank balance, using automatic teller machines (ATM) to make deposits, withdrawals and purchases at participating merchants at. By following the above steps will strengthen your credit rating.

Unsecured credit cards are issued to people with excellent credit. Credit ratings depend on certain criteria, such as the ability to repay loans. These criteria include payment history, history of employment and financial stability. Those excellent credit will most likely receive a lower interest rate. An important factor in maintaining good credit is to repay your loan in time to avoid late penalties.

You should read the credit agreement to ensure they understand their obligation to the creditor. Make payments on time, to strengthen your credit rating. Unsecured credit cards has many advantages such as low interest rates, high credit limit, the domain name of the company, no annual fee and low APR on balance transfers for 12 months. Close unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage. Not seeking too much credit in a short period of time is another factor that will help maintain a good credit rating.

Rebuilding your credit takes time, patience and perseverance. If you always pay your bills on time, you will see an improvement in their credit ratings over time. There is no quick fix to improve your credit report except for mistakes or inaccuracies that can be corrected, hopefully in your favor. Your credit information is maintained by credit bureaus namely Experience, Equifax, Trans Union and for the past seven years. Therefore poor credit information will remain on your report for seven years. The good news is that negative information disappears with positive information, this will definitely rebuild your credit.

Demand for secured credit card can be very beneficial because it gives you a chance to rebuild your credit history and are able to store as if there were an unsecured credit card. Many companies require that you have a credit card to make purchases such as car rentals, airline tickets, etc. Make sure that the company issuing the secured credit, publishes periodic payment history of customers anyone of the three major credit bureaus, namely experience, Equifax and Trans Union. These reports to credit bureaus to rebuild your credit over time.

business credit card

Business credit cards are very popular for small business owners because of the many benefits they offer. Benefits includes 0% Intro April on balance transfers, no annual fee, high credit limit, low interest rates, cash rewards, bonus miles, free online account management for the design of maps, etc. iCreditOnline. com, we have some of the best credit card companies American Express, Advantage, Chase, Bank One, Bank of America, Discover, Citibank, Bank of households and credit card approval online. Why waste time going to a bank when you can get a decision in less than 60 seconds to secure an application online by credit card. Online credit card online credit card approval application is quick and easy!

Student Credit Card

Having a credit card for students, while continuing to live at home or go to school away from home can be an advantage. It gives the student the opportunity to establish credit at an early age and begin to assert their independence. It is very useful in an emergency, it is less complicated and safer to carry a credit card for students to carry cash. Parents are credit cards for students to be very handy. They are able to make deposits on behalf of their children away from home. Students should be careful with your credit card receipts to avoid identity theft.

If you always pay your bills on time, receive credit cards for students is a good way credit rating and start building a good credit history while in school. Establish and maintain a good credit history will be easier to buy a car, a house or get a personal loan in the future. For students who are not committed to their financial obligations, to obtain a student credit card is not a good idea. Running balances, finding yourself in debt, monthly payments can not destroy your credit.

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Posted in: Good Credit

Secured Credit Cards- Consumer Tips

What is a credit card?
 

Cards are credit cards opened with a safe deposit in a savings account, money market or certificate of deposit. The amount of deposit required varies from one card to another, but generally minimum amounts range from $ 250 - $ 500. These funds are considered your security and even earn some interest, because they are held in a savings account. Your credit limit is determined by the amount you deposit in your savings account. Sometimes the limit is the total amount of the deposit, other times it will be a percentage of the total.

It is important to note that a secured card is a credit card, not a debit card. If full payment is not made each month, then interest is charged on the unpaid balance. And the lending institution uses the security money to pay the debt only as a last resort. Although the card is guaranteed, it is still possible credit damage.

What are the advantages of a credit card?

The credit institution. If you have never had a credit card, a good first step in establishing credit is to request a secured credit card. Associate Professor of Economics at Austin Peay State University in Nashville, TN, Jerry Plummer says, "A secured card is more useful for the person to start your credit history, for he says that the person is ready to go the extra step to establish credit. "

The credit repair. If your credit is damaged, you may be able to qualify for a secured credit card. With this secured card appropriately and within the parameters will help rebuild your credit and qualify for an unsecured card. If you had to declare bankruptcy, however, are not eligible until he was released.

Preset limit is not exceeded. If poor spending habits were part of the cause of bad credit, secured credit card can help keep spending under control.

Useful for operations that require a credit card. Hotels and car rentals require the use of a credit card. If you do not qualify for an unsecured card, but the fact of a secured card, you are still able to complete the transaction.

What should I look for or avoid when shopping for a credit card?

Fees. This is the area you want to really study the purchase of a secured credit card. Some cards come with fees that run into the hundreds of dollars, consuming a lot of credit is secured by savings accounts. Professor Plummer says a card is the best free, but only a small amount may be right. Annual rates of attractive secured cards typically range from $ 20 - $ 35. Be sure to watch out for hidden charges such as "registration fee" and "additional costs".

Interest rates. Just because you have no credit or poor does not mean you have to settle for higher interest rates. The attractive interest rates secured cards should not exceed 19%. Shop around and get the most competitive prices.

Read the fine print. Linda Tucker, director of consumer education Credit Counseling Service of Arkansas and Memphis, TN, stresses the importance of reading the fine print. This will allow you to know exactly their obligations to the issuing company, for example, the grace period, what happens if you do not make full payment, and the rates are fixed, if not full payment. Understanding these details will ensure they do not damage your credit.

Fraudulent offers. As with the warranty card is necessary to consider fraudulent offers.The Federal Trade Commission offers these tips to protect against fraud credit card:

    Offers of easy credit. No one can guarantee that you get credit. Before deciding to give a credit card, legitimate credit providers examine your credit report.
    A call to a '900 'for a credit card. You pay for calls with the prefix '900 '- and you can never get a credit card.
   

 Credit cards offered by "credit repair" companies or "credit clinics." These companies may also offer to clean up your credit history for a fee. However, you can correct factual errors or outdated information by contacting the credit bureaus even directly. Remember that only time and good credit habits to restore its solvency.

When will I be eligible for an unsecured credit card?

It may take several months to see improvement in your credit history. Bankrate says it is a good indicator when you start receiving flyers in the mail for unsecured credit cards to improve. However, it is a good idea to continue to take it easy. Using a secured card will help you learn healthy habits so that when you get an unsecured credit card, which remain under the control of your spending and credit.

Where can I find a credit card?

Most companies do not publish secure cards. However, you can visit the section of the report cards http://www.CardRatings.com to know where and how to apply. Click on the link entitled "Cards for consumers with little or no credit."

Other tips

Tom recommends staying with only one or two cards and keep expenses to a minimum. The aim is to repay the card each month.

Tucker emphasizes the importance of paying the amount due each month, otherwise late fees may be charged higher interest rates, privileges lost, and credit history negatively affected.

Make sure you are getting a credit card rather than a gas card or store card.

Make sure that a bank or credit union in popularity, even a local, is issuing the card. And do not automatically assume that the bank issuing the card.

Not all issuers report to all three credit bureaus (Experian, Equifax and TransUnion). It is important to get a report card that the three bodies, otherwise you're wasting your time. Fortunately, secured cards normally report to credit agencies such as warranty cards (you should check before applying).

If you filed for bankruptcy, you may have to wait until you have been discharged before qualifying for a secured card.

Get one if you can not get credit, they have no credit history, or if you have bad credit. Plummer said: "Many companies are not even counted as credit such as automobile F & I (Finance and Insurance) people, although they admit it." Therefore, if you do not really need a secured card, you will do more harm than good.

Finally, any situation where you are, no credit or bad credit, the best way to build good credit is to establish a budget and then stick with it.

You can pay a membership fee to one of the three credit bureaus - Experian, TransUnion and Equifax to check your credit score online daily. Visit our Credit Information section for more details. Tom recommends purchasing Microsoft Money 2004, with a one-year subscription to Experian (value $ 99.00).

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Posted in: Secured Credit Cards