Who Has the Best Credit Card for You?

May 2, 2012 By Leave a Comment

There are so many credit card companies out there today, that it may be difficult to decide on the best credit card for you. You’ll need to learn how to compare the various cards and their terms and conditions. Credit cards are a quick way to purchase items, and most companies usually cover you against unauthorized use, but what is different about each card and card company?

One credit card is not necessarily in any way like another, except perhaps for their logo, whether it’s Visa, MasterCard, Discover, AMEX or store cards. Some may offer you balance transfers from other cards, which can be handy if they also have a low introductory rate. Many cards have annual fees now, but some companies will waive it for the first year.

If you’re in it for the rewards, credit cards offer rewards points, miles, cash back and other rewards systems that pay you cask back or give you bonuses when you use them. One bank can have a variety of cards available, and the one you quality for will depend in large part on your credit score. Once you research what cards are available, you will find the one that’s right for you.

Balance transfers are one incentive that draws you to one card over another. You can pull your balances from high interest cards, and pay them off on a new card with lower rates. Make sure the card you’ll be transferring to has a lower interest rate than the banks where your balances are now. Check to ensure that the new card issuer does not charge you a fee to transfer balances.

A credit card’s APR can be fixed or variable. Annual percentage rate is the rate of interest you pay if you don’t pay off your balance in full each month. A higher APR means that your finance charges will be higher. If you are looking at a card with a variable APR, that means the rate can fluctuate during the card’s life.

If you select a card with a low, fixed APR, it won’t increase unless the terms state otherwise. Some cards have a fixed rate for an introductory period, and then the rate will be variable. The introductory rate may be a number of months, or a number of years.

Rewards cards are very popular right now. You may get airline miles, cash back or other types of rewards, including gift certificates for various stores and restaurants. Rewards program cards may also have an annual fee, so check to make sure those are not too high. If you have excellent credit, you may find some cards with no annual fees. Take all fees and interest rates into account before you select the best credit card for you.

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Get Out of Credit Card Debt

May 1, 2012 By Leave a Comment

Over-use of credit cards can result in a poor outlook for your financial stability. It may cause you to feel hopeless. You may think you can never get out of credit card debt, but it can be done. There are logical steps that you can take, and they will get you back on track.
Step 1 – Total your amounts due and which bills should be paid first

  • Add up all your credit card balances and loans, and the interest rate you’re paying for each.

  • List the minimum amount you need per month for necessities – that is, rent or mortgage, power, heat, gas and maintenance on your car, medical bills and any other bills you have.

  • Figure out the difference between what you make each month and what you pay out for essentials. If you cannot even make the payments on your essentials, find a credit counselor with a good business reputation, to set you on track.

  • Credit cards can actually help you if you use them correctly. Use them only when needed, and pay as much as you can on them, especially if the interest rate is high.

  • Make note of how your cash is going out now. Where does it go? Are those essential needs? If not, try to cut back where you can on eating out, and things like this.

Step 2 – Get rid of all luxury spending as identified above. Don’t eat out a lot, and use your credit cards wisely if you use them for any spending like this.

Step 3 – Make contact with the companies who issued your credit cards. Most companies would rather get paid something each month, even if it’s not the minimum due on their accounts. You may be allowed to make what are known as “hardship payments”, so that your credit companies won’t turn your account over to a collections agency.

Let your creditors know that you have fallen on lean times, and ask for their help. If it doesn’t look like you can get our of credit card debt without help, you may also be able to secure a loan at a much lower rate, and use that money to pay off your credit cards.

Once you have paid or are paying what you can on your credit cards, learn to use them only when needed, and pay off as much as you can each month. This will help to keep you from getting into too much credit card debt again.

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