Credit Card Debt Reduction - 3 Tips To Lowering Credit Card Debt

by: Carrie Reeder
Credit card debt can be reduced through lower rates or negotiating for reduced balances. With reduced interest, you can pay off the principal quicker with the same monthly payment. The other approach is debt settlement, which eliminates part of your debt at the cost of your credit score.
1. Transfer Balances
Credit card companies are always offering introductory deals, such as 0% on transfers. Usually such offers last for several months, giving you the chance to make sizeable payments on your principal.
If you have several credit cards, choose to transfer the account with the smallest amount. Pay off that account, then take that card’s monthly payment and apply it to your next lowest balance. Soon you will be creating a snowball affect, swiftly lowering your debt. Make sure to close paid off accounts to raise your credit score and keep from adding to your debt.
2. Negotiate Lower Rates
Credit card companies are also willing to lower rates. You can try to do this on your own, but you will have more success with a debt management company. For a monthly fee, they will lower rates with credit card companies and handle your monthly payments.
Debt management plans can affect your credit temporarily if your creditors report delayed or reduced payments. This might prevent you from opening new accounts for a year or more. However, with such plans you can be out of short term debt in less than five years with a much better credit score.
3. Settle For Reduction In Debt
Debt negotiation is the most drastic step to lower your credit card debt since it has long term affects on your credit. A debt negotiation company can settle some of your debt with creditors. Lenders will then report the reduced amount to the credit reporting agencies, which will keep it on your record for seven years. Debt negotiation is similar to bankruptcy and can prevent you from qualifying for conventional credit for a couple of years.
Reducing your credit card debt will have long term benefits for you. Less credit means better rates when you do want to apply for financing, especially with a home or car purchase. No matter which option you choose, research companies carefully and compare their services and fees.

Next!

Finding the Best Credit Card

by: Morgan Hamilton
When you start your hunt for the best credit card what you're really searching for is the best credit card for your particular situation and needs. You may, for instance, be someone whe travels a lot for business or pleasure. Travel credit card discounts may be the best credit card option for you. You may be someone who has bad credit. There are credit cards especially designed for folks like you - these would be the best credit card options for your circumstances.
If you are a shopaholic, for example, the best credit card for you might be one that gives rewards in the way of incentives and percentages back on purchases. Of course, there are some things that make a card the best credit card for many, if not most, credit card users. These are the ones with the lowest APR (annual percentage rate) and the lowest annual rate. Some cards - in fact, many - have no annual rate at all. One such card may prove to be the best credit card for you, assuming that there aren't hidden fees that ultimately cost you more than you've saved in lower APR or annual fee.
Keep in mind, though, that the better your credit history, the lower the APR you're going to find on a credit card. If your credit is poor the best credit card you're going to find, unfortunately, is going to be one with a higher than average APR. That is, until you improve your credit standing. There are alternative credit cards for this situation, too.
Other factors to consider in determining the best credit card for you is whether you generally pay off your credit card debt each month or whether you carry over a balance each time. The reason this is an important factor in deciding the best credit card for you is that some credit cards offer a grace period on this carryover - others do not, and, in fact, tack on hefty penalties for doing so.
Fleet, AFB Industrial and Wachovia Bank all have twenty day grace periods on their credit cards - clearly the best credit card choice for those who don't pay the balance each month. All other factors being equal, of course.
Another best credit card factor to be considered is whether you typically use your credit card for cash advances. This rate can vary considerably, and some even have no fee attached to a cash advance request. This, like anything else, depends on credit rating. USAA's best credit card offer for cash advances, for example, is a free cash advance. It's highest percentage fee is nine percent. Fleet and Wachovia both charge four percent.
The other important factor in determining your best credit card is how much traveling you do. If you're flying the friendly skies on a regular basis a credit card that lets you rack up credits for each flight you take may save you more than opting for one that doesn't whose APR is lower, or the annual fee less costly.

Next!

How To Get A Higher Credit Card Limit

by: David Riewe
Almost all credit card holders are aspiring for a higher credit card limit. This is because a higher credit card limit will enable them to make otherwise unaffordable purchases. Credit card holders need to remember that to get a higher credit card limit; they must abide by the terms and conditions of the credit card company or bank.
Below are other ways to get a higher credit card limit.
• The most important thing to do to get a higher credit limit is to prove your creditworthiness. This is the number one thing banks and companies look for in giving a higher credit limit.
• Attract positive attention from the credit card company or bank by paying finance purchases once in a while. However, it is not advisable to make this method a habit and should only be done as a last resort to increase your chances of getting a higher credit limit.
• Proving credit card companies and banks that you are good borrower would definitely convince them to give you a higher credit limit. But be careful as such strategy could only serve the benefit of the companies and banks. A higher credit card limit means greater purchasing power but it also increases the potential of the credit card companies and banks to earn through you through increased interest charges and other fees.
• Always spend within your credit card limit because doing so means that you are capable of controlling your expenses.
• Use your credit card regularly. Don’t keep your cards for emergency use only. If you sue your credit card sparingly banks and credit card companies will be unable to understand your spending and pay back behavior and would be reluctant to give you a higher credit card limit.
• Never make minimum payments. Instead, try to pay for the entire outstanding amount. This would give you better chances of getting a higher credit card limit.
• Avoid late payments as much as possible. Not only do you increase your interest, you also have to pay an additional fine for not clearing bills on time. This would dim your chances in getting a higher credit card limit.
• The best and simplest strategy to get higher credit card limit is to use your credit card wisely. Always keep in mind that credit card companies keep a record of your transactions and payment pattern so always pay your dues on time and never make late payments. Your performance in the records of banks and credit card companies will determine whether you’ll get a higher credit card limit or not.

Next!

The Best Credit Card - Shopping For A Credit Card

by: Carrie Reeder
Credit cards are just like any form of credit, you should shop around to find the best deal. Depending on your situation, you may want to find a card with low rates, a reward program, or a 0% APR for transfers. Make sure you look at several credit card companies to find the best deal for you.
Comparing Programs
Credit card companies offer several different types of incentives to entice you to open an account with them. These rewards can save you money or earn you trips or cash back. If you plan on always paying off your monthly balance, then a reward program, such as airline miles or cash back, may be for you.
If you plan on carrying a balance on your new credit card, then look for the lowest rate. You will want a no frills card with no annual fees. You can also choose a card with a low introductory fee, usually lasting six months to a year, if you plan to pay off the balance soon.
For transfers, look for offers of 0% APR. These offers typically last for six to twelve months, but they can save you a bundle on interest. However, be aware that rates on these cards can shoot up after the grace period.
Finding Credit Card Companies
I’m sure you have received several credit card offers in the mail this week, but you can find better deals online. The major financing companies offer special reward bonuses and special programs for students or small business owners.
Look at what each credit card company is offering along with their rates. You may also want to choose a card that you don’t already have. While American Express and Discover offer excellent rewards, they aren’t accepted by everyone. Plan on having at least two different types of cards.
Always Watch For Deals
Once you have your credit card, continue to look at credit card offers. You may find an especially low rate or a good rewards program. You can easily apply for the card, then close an old credit card account. While having several different types of credit lines are good for your credit history, too many open credit card accounts can hurt your score.

Next!

How To Accept Credit Card Sales

by: Shane Penrod
No matter how long you’ve been in business, you may not be sure about how to accept credit card sales from your clients. Perhaps you long to start processing credit payments so you can increase the amount of your sales revenue or offer your clients more payment transactions. Maybe you’re just tired of chasing bad checks or waiting for monthly payments on client accounts. If you’re ready to add credit card processing to your line of customer services, a merchant services account may be just what you need.
A merchant account associate can show you how to accept credit card sales by using the right type of processing equipment. By signing up for a merchant account, you will soon find out if you’re approved, and upon approval, you can start using your account to implement a credit processing system for just about any type of business you’re in. A simple credit card terminal equipped with a printer can be plugged into an outlet at your store or shop to let your customers quickly swipe credit cards for easy payments on the purchases they make. Your merchant account underwriter will charge a certain amount for each transaction, or you might be able to opt for a low percentage rate on your monthly credit payment volume. If you’re in a window washing or another service business, or if you deliver items like baked goodies, you can lease or buy a wireless credit card processor to take with you in your travels for point-of-sale credit card payments.
How soon can a merchant account let you know how to accept credit card sales? The first thing to do is find a bank or another financial backer who will provide this type of account for your business. Then apply for your company account by filling out an online application or by completing and mailing a printed form. Some banks may charge an application fee of $100 or more, so find out ahead of time if you will need to pay this fee, and if so, you might want to consider shopping for another account provider. Also check into the costs associated with a particular merchant account so you can find the best deal, as these can carry several types of fees, some of which may at first appear to be hidden. When your account is approved, you can immediately get set up with the right equipment to handle credit card payments, e-checks, and debit payments as well. You may even want to consider setting up a digital processing system so your customers can dial a toll-free number, browse products online or from a print catalogue they have already received, and punch in their orders as well as a credit card number and expiration date for payment. You don’t even have to hire someone to staff the phone line, although it is probably a good idea to have someone available for a few hours during a typical business day.
Ask your bank or another financial lender to tell you more about the ways in which a merchant account can show you how to accept credit card sales.

Next!

Bad Credit Credit Card - How To Increase Your Credit Score With Credit Cards

by: Carrie Reeder
Credit cards are often the first step for a consumer to build their credit score. When you make regular payments with a small credit limit, lenders will be more willing to lend you larger amounts. Before you jump out and open an account, make sure you don’t have too many credit lines open or otherwise hurt your credit.
Pick A Good Card
Credit card companies offer several different types of credit cards for consumers. You can find student programs that require no co-signer or income. This is a great offer for your first card, but these cards also have higher rates.
You can also find cards with cash back rewards or other incentives. The trade-off are higher rates though. However, you can find no frill cards with low interest rates if you plan to carry a balance. Whichever credit card program you choose, make sure it fits with your financial goals.
Start Small
When you are building your credit score, you want to start small. Open one account and use it at least once a month to make a purchase. This can be a regular purchase that you have cash to pay for. The point is to use your credit and then repay it. Every time you make a payment, it will show up on your credit report.
Lenders will also look at how often you make payments. So using your card once a year and paying off the entire balance that month won’t do you much good. Your credit report covers three years’ worth of payment history, and lenders want to see your payment pattern.
Don’t max out your card either. Only use a small portion of your credit to show lenders that you don’t get yourself into financial binds.
Maintain Your Credit
Regular payments are only one part of your credit score. You also want to keep your credit in good order. If you have dozens of accounts open, close the ones you don’t use. The less open credit you have, the more you will be eligible for, a bonus when buying a home or car.
Also be sure to take advantage of your annual free credit report. Look over it to make sure that your credit history is correct. If you find any discrepancies, resolve them with your lender.

Next!

How Many Credit Cards Do I Need?

by: Chris McElroy and Jennifer Tarzian
Using a credit card has become a very common way for a family to pay for the items it needs and wants. According to CardWeb.com, a firm that tracks the credit industry, the typical American family of four carries about $8,100 in installment debt–most of it in credit cards. At 18% interest, that costs them nearly $1,500 a year or $125 a month they can’t spend or save for anything else.
How many credit cards do you currently have?
• Make a list of all of your bank cards, travel and entertainment cards, department store cards and gas cards. Are you surprised at how many you actually have?
• Now list beside each one, who issued the credit card.
• Now list your credit limit next to each credit card.
• Now list your credit debt associated with each credit card.
• Is your total debt more than 25% of your total credit line? If so, you are using your credit cards more than you should and getting more credit cards is not the answer.
• Now list the annual fees associated with each credit card.
• Next, list the interest rate next to each credit card.
• Now, add up all of the annual fees for all of those credit cards.
• Now, for each credit card, multiply the debt on that credit card by the amount of interest rate for that credit card. Then, total that up for all the credit cards.
• Add that figure to the total amount of annual fees you are paying on all your credit cards.
• That is the amount of money you are paying out each year for the “privilege” of having all those credit cards.
Jennifer Tarzian, of http://youngparentsmagazine.com says one question that gets asked often is “What are the advantages to having credit cards? We hear all about the disadvantages, but what are some reasons why I might want a credit card?
Credit cards can help you build a positive credit history. This can enhance your ability to receive a private student loan, buy a car, rent an apartment, get a job, and buy a house.
Security in emergencies; I’m sure you know all about Hurricane Katrina that hit New Orleans and devastated so many families. Most of them were caught unaware and those that could afford to, had to scramble to find hotel accommodations for their families, food, and other necessities. In a disaster like that one, having a credit card would be essential to protecting your family and for your own survival.
Reduced need to carry cash or checks; If you are robbed or just lose your wallet, you can’t call and cancel cash. A credit card or even a debit card can help you avoid carrying large amounts of cash, especially when travelling.
Enhanced personal responsibility and independence. For young parents, college students, and others just getting started, having credit cards can help you make ends meet and gives you a sort of independence and even prestige and respectability.
However, only one national card like a "Visa" or a "MasterCard" is necessary to receive these benefits. If the stores where you shop already accept the major credit cards, you do not also need a credit card for their store. This can lead to you spending more than you can afford.
At http://creditcards.youngparentsmagazine.com, Jennifer Tarzian offers help in choosing credit cards, how to reduce credit card debt, how to prevent identity theft, what to do if your credit card is stolen, and a lot more.
She advises young parents to beware of too many offers you get via mail, email, and by phone. Credit card issuers often tempt consumers into carrying more debt than their income justifies. Then, when the customer is drowning in debt -- stumbling to make even the minimum payment -- they will pile on late fees, jack up interest rates and begin what often becomes a crescendo of collection calls. So be very careful. You only need one or two credit cards if you plan to control how much you owe.

Next!

Catatan Kecil dari Budi Hartato

Kepada teman-teman, saya mohon maaf, dalam blog ini saya tidak akan menguraikan tentang siapa saya dll, ini hanya blog pengetahuan tentang credit card.

Terima kasih
Wassalam
Budi Hartato

Next!

How to Get Free Credit Cards

by: Morgan Hamilton
Free credit cards - what a concept! We're all enticed by the very word free. The more common term for free credit cards, however, is 0% (or zero percent) APR credit cards. APR stands for annual percentage rate. In other words, free credit cards can refer to those that charge you no interest on the purchases you make with them.
Years, and decades ago, the APR was standard no matter which card you chose, and which financial provider. The APR simply depended on the bank rates, which in turn were influenced by the federal reserve. 18 percent was then a fairly standard APR. This was clearly not a time when free credit cards abounded and, in fact, competition wasn't very frenetic, because the rate was the same no matter which card you chose.
Then, however, monoline banks came into being. These banks, unlike the traditional financial institution that accepted deposits and gave out loans, served simply as issuers of credit cards. These still didn't create free credit cards, but they did have a decreasing effect on credit card APR, because competition for credit card users started to become stiffer.
Nowadays, unlike the past decades, you're almost certain to find introductory promotional offers on just about every credit card. While they won't always qualify as one of the free credit cards, most will qualify as low interest first year credit cards. The most popular, of course, are the free credit cards - the ones that offer the zero percent APR at least for the first year.
What's so great about these free credit cards? The primary usefulness is not for the new credit card user (although free is certainly an enticement - and useful - for novice or long time user, young or old) but for those who already have accumulated a hefty amount of debt from the use of cards that don't qualify as free cards.
As an example, let's say that you owe $5000 on a credit card whose APR is twenty percent. You're going to have to pay $1000 just to keep up with the interest. If, however, your credit card is a member of the free credit cards family, your $1000 payment will actually bring the principal down to $4000. What a difference, then, these free credit cards can make!
Free credit cards can best help you get out of debt when you transfer the balance of another high-interest APR credit card to the account of the free credit card.
You might also benefit from free credit cards that charge no annual fee. Some of these do this as a promotional gimmick, eliminating the annual for the first year only, and then charging anywhere from $19 to $250 each year thereafter. Some instead charge an annual fee in subsequent years only if you don't use the card for the number of purchases the free credit cards companies designate as your minimum requirement.

Next!

The Best Credit Card - Shopping For A Credit Card

by: Carrie Reeder
Credit cards are just like any form of credit, you should shop around to find the best deal. Depending on your situation, you may want to find a card with low rates, a reward program, or a 0% APR for transfers. Make sure you look at several credit card companies to find the best deal for you.
Comparing Programs
Credit card companies offer several different types of incentives to entice you to open an account with them. These rewards can save you money or earn you trips or cash back. If you plan on always paying off your monthly balance, then a reward program, such as airline miles or cash back, may be for you.
If you plan on carrying a balance on your new credit card, then look for the lowest rate. You will want a no frills card with no annual fees. You can also choose a card with a low introductory fee, usually lasting six months to a year, if you plan to pay off the balance soon.
For transfers, look for offers of 0% APR. These offers typically last for six to twelve months, but they can save you a bundle on interest. However, be aware that rates on these cards can shoot up after the grace period.
Finding Credit Card Companies
I’m sure you have received several credit card offers in the mail this week, but you can find better deals online. The major financing companies offer special reward bonuses and special programs for students or small business owners.
Look at what each credit card company is offering along with their rates. You may also want to choose a card that you don’t already have. While American Express and Discover offer excellent rewards, they aren’t accepted by everyone. Plan on having at least two different types of cards.
Always Watch For Deals
Once you have your credit card, continue to look at credit card offers. You may find an especially low rate or a good rewards program. You can easily apply for the card, then close an old credit card account. While having several different types of credit lines are good for your credit history, too many open credit card accounts can hurt your score.

Next!