3 Steps to Finding the Best Balance Transfer Credit Cards
Looking for the best balance transfer credit cards? You're definitely not alone in your endeavors. Millions of consumers carry credit card debt, and they often turn to low-interest balance transfers to help alleviate the toll on the monthly budget. The problem is, not all of these cards are created equal. How do you find the best ones? Here are three easy steps to follow...
1. Do Your Homework
First things first -- you need to do your homework. Find out which balance transfer credit cards are available and what terms are being offered. When researching cards write down important information including the introductory interest rate, how long the rate is good for and what the rate will be when that period is over. You'll also want to make note of any balance transfer fees and annual fees.
2. Assess Your Situation
Once you know which balance transfer credit cards are available and you understand the terms they offer, you need to assess your debt situation. The card that's right for you will be largely determined by how much money you owe and how long it's going to take you to pay that debt off.
Add up every single penny of your credit card debt and then figure out exactly how much you can pay towards that debt each month. Using a credit card calculator, you should be able to estimate how long it will take you to pay that debt down at various interest rates. Keep that information handy -- you're going to need it for step three.
3. Compare Carefully
Once you have all the above information, it's time to make apples to apples comparisons with each of the balance transfer credit cards -- and make sure you do so carefully. Remember, just because card A has an introductory rate of 0 percent for 12 months and card B has an introductory rate of 8 percent for six months, it doesn't automatically mean card A is right for you.
You need to look at the long-term benefit of the card you're choosing, as well as your personal financial situation. If you've only got $1,000 in debt and you can pay it off in 12 months or less, then card A is definitely a good idea. If, however, you have thousands of dollars in debt and card B offers a lower long-term interest rate, then that's the card you should go for.
Finding the best balance transfer credit cards isn't always a walk in the park, and it does take some work, but the long-term financial benefits are well worth the effort.
Monday, April 30, 2012
3 Smart Ways To Use A Credit Card
3 Smart Ways To Use A Credit Card
Aren't you sick and tired of hearing how "bad" credit cards are and that we should all just cut them up and start living on cash again. Although this sounds nice in some ways, the reality is that we live in a consumer society and credit cards have become a major part of life. The problem is when people don't know how to use credit cards. Credit card debt is no joke and it can suck you in like quick sand. You can blame credit card companies all you want but in the end its your responsibility to be smart with your money and your cards.Credit cards do have a positive role to play in personal finance. If you are smart with it, it can help you better manage and spend your money and it can give you the financial leverage when you need it most. Here are 3 smart uses for credit.1. EmergenciesI do not recommend or encourage anyone to live on credit. its a recipe for disaster. Instead, the best way to use your credit cards is to use it as backup. We all have financial disasters that usually hit at the most inconvenient times. If you don't have life savings to fall back on then it can really hit you hard. Having a card as a backup can really be a lifesaver and at a fee of about $50 a year, it's well worth the security that it provides in case you need it.2. Controlling Your SpendingOne of the reasons why so many people fall deeper and deeper into debt is because they get caught with their pants down - so to speak. They spend and spend and then fail to make the minimum payments. When interest starts kicking in, its usually already too late and you start sinking. The smart way to use your card however is to pay it off in full every month. Its a great way to control your spending and to now exactly how much you are spending on what. It works really well if you dedicate specific expenses to a specific card - like your groceries. However, the secret is to pay it off in full every month.3. Large PurchasesOne of the reasons why businesses like to use credit cards is because it allows you to conveniently make large purchases - even on the internet. We can all get cards with relatively high credit limits and if you have to make large purchases for say a building project or if you buy a lot of stuff online, then its ideal. Once again, the secret is to clear this debt each and every month. On large purchases, the interest can be just as large so make sure you wipe the slate clean every month.Are you looking for credit cards 0 interest? See my blog for more on credit cards 0 apr...
Aren't you sick and tired of hearing how "bad" credit cards are and that we should all just cut them up and start living on cash again. Although this sounds nice in some ways, the reality is that we live in a consumer society and credit cards have become a major part of life. The problem is when people don't know how to use credit cards. Credit card debt is no joke and it can suck you in like quick sand. You can blame credit card companies all you want but in the end its your responsibility to be smart with your money and your cards.Credit cards do have a positive role to play in personal finance. If you are smart with it, it can help you better manage and spend your money and it can give you the financial leverage when you need it most. Here are 3 smart uses for credit.1. EmergenciesI do not recommend or encourage anyone to live on credit. its a recipe for disaster. Instead, the best way to use your credit cards is to use it as backup. We all have financial disasters that usually hit at the most inconvenient times. If you don't have life savings to fall back on then it can really hit you hard. Having a card as a backup can really be a lifesaver and at a fee of about $50 a year, it's well worth the security that it provides in case you need it.2. Controlling Your SpendingOne of the reasons why so many people fall deeper and deeper into debt is because they get caught with their pants down - so to speak. They spend and spend and then fail to make the minimum payments. When interest starts kicking in, its usually already too late and you start sinking. The smart way to use your card however is to pay it off in full every month. Its a great way to control your spending and to now exactly how much you are spending on what. It works really well if you dedicate specific expenses to a specific card - like your groceries. However, the secret is to pay it off in full every month.3. Large PurchasesOne of the reasons why businesses like to use credit cards is because it allows you to conveniently make large purchases - even on the internet. We can all get cards with relatively high credit limits and if you have to make large purchases for say a building project or if you buy a lot of stuff online, then its ideal. Once again, the secret is to clear this debt each and every month. On large purchases, the interest can be just as large so make sure you wipe the slate clean every month.Are you looking for credit cards 0 interest? See my blog for more on credit cards 0 apr...
3 Simple Ways Of Getting A Credit Card After Bankruptcy
3 Simple Ways Of Getting A Credit Card After Bankruptcy
Bankruptcy administers a devastating blow to your credit card. A bankruptcy may remain on your credit report for up to 10 years. But these effects do not remain long lasting; it starts to diminish on your credit report as soon as your case is closed.
Even before bankruptcy drops your previous credit report, you could qualify for credit with good rates and terms. In fact, newly discharged debtors are frequently solicited for enrollment onto new cards. However, before you plunge back into the credit world, consider the extent to which easy credit lead to a bankruptcy filing before you sign up for new cards.You must ensure that a responsible credit habit is maintained for payment of bills, and only a small portion of the available credit should be used.
Most credit card companies will allow you to keep their credit card for use even after you have filed bankruptcy. This is on the condition that you agree to reaffirm the balance on the card and enter into a new agreement, which is signed after the bankruptcy filing. Most creditors want your future business, and hence will be willing for you to use their cards.
A recent bankrupt may give you trouble to qualify for a regular, unsecured credit card. It may even turn out to be more expensive than before, and available with lower limits. Financially, secured credit cards offer you a better deal than any of the unsecured cards you're likely to run into after your bankruptcy.
So it is best to opt for a secured card, which sets a limit for you. This credit limit in a secured credit card is equal to an amount you have to deposit at the card-issuing bank. A secured credit card requires up to $500 to be deposited. This amount may seem miniscule as compared to exorbitant credit limits you may have enjoyed before bankruptcy.
A secured credit card is usually available at lower rates than unsecured credit cards. But secured credit cards have gotten a bad rap, because most don't help you rebuild your credit history.
Also, you must choose your secured card wisely. Look for a card, which has no application fee and a reasonable annual fee. Some secured cards demand huge upfront and annual charges.
If you maintain a good credit limit and make your payments on time, after 12-18 months you could be upgraded to a regular unsecured credit card.
However, there are some unsecured credit cards that you would also do well to steer away from. Most unsecured credit cards charge you such high up-front fees that you're in debt before you even receive the credit card. Since your goal is to re-establish your credit, pick a credit card that you think is best suited for you.
Then apply for that one card. Don't apply for several cards as they will stir up too many new inquiries on your credit reports. This will make your creditors nervous — and less likely to extend credit to you.
Bankruptcy administers a devastating blow to your credit card. A bankruptcy may remain on your credit report for up to 10 years. But these effects do not remain long lasting; it starts to diminish on your credit report as soon as your case is closed.
Even before bankruptcy drops your previous credit report, you could qualify for credit with good rates and terms. In fact, newly discharged debtors are frequently solicited for enrollment onto new cards. However, before you plunge back into the credit world, consider the extent to which easy credit lead to a bankruptcy filing before you sign up for new cards.You must ensure that a responsible credit habit is maintained for payment of bills, and only a small portion of the available credit should be used.
Most credit card companies will allow you to keep their credit card for use even after you have filed bankruptcy. This is on the condition that you agree to reaffirm the balance on the card and enter into a new agreement, which is signed after the bankruptcy filing. Most creditors want your future business, and hence will be willing for you to use their cards.
A recent bankrupt may give you trouble to qualify for a regular, unsecured credit card. It may even turn out to be more expensive than before, and available with lower limits. Financially, secured credit cards offer you a better deal than any of the unsecured cards you're likely to run into after your bankruptcy.
So it is best to opt for a secured card, which sets a limit for you. This credit limit in a secured credit card is equal to an amount you have to deposit at the card-issuing bank. A secured credit card requires up to $500 to be deposited. This amount may seem miniscule as compared to exorbitant credit limits you may have enjoyed before bankruptcy.
A secured credit card is usually available at lower rates than unsecured credit cards. But secured credit cards have gotten a bad rap, because most don't help you rebuild your credit history.
Also, you must choose your secured card wisely. Look for a card, which has no application fee and a reasonable annual fee. Some secured cards demand huge upfront and annual charges.
If you maintain a good credit limit and make your payments on time, after 12-18 months you could be upgraded to a regular unsecured credit card.
However, there are some unsecured credit cards that you would also do well to steer away from. Most unsecured credit cards charge you such high up-front fees that you're in debt before you even receive the credit card. Since your goal is to re-establish your credit, pick a credit card that you think is best suited for you.
Then apply for that one card. Don't apply for several cards as they will stir up too many new inquiries on your credit reports. This will make your creditors nervous — and less likely to extend credit to you.
3 High School Student Credit Card Tips
3 High School Student Credit Card Tips
It used to be that parents didn't find themselves considering credit cards for their children until those children went off to college, but nowadays a high school student credit card might be more appropriate. If you have a high school student at home and you've been wondering if a credit card might be a good tool for them, there are three things you need to keep in mind.
1. It's a "Minor" Issue
If your child waits till college to get a credit card, chances are it's going to be in his or her name only -- meaning your credit is off the hook should they mismanage the card or abuse their credit. If, however, your child is a minor (as most high school students are) then your child is going to need to be using one of your credit cards as a secondary user. This means your credit is on the line, not theirs.
Minors can't get their own cards, so you'll be towing the line if your child is under 18 with a credit card in their pocket. If your child isn't responsible enough to manage the card wisely, you'll end up paying for their mistakes, and those mistakes can cost big time.
2. It's All About Boundaries
If you do decide to let your child have a high school student credit card, you need to set up boundaries the moment that card is issued. What can the card be used for? How much is your child allowed to spend? Should he or she contact you for permission prior to using the card?
By setting up clear boundaries you can avoid future headaches (and unpleasant statement surprises). If you simply say "this card is only for emergencies" your child might not understand. For all you know, that cute coat in the mall could be an emergency to a high schools student. Explain exactly what constitutes an emergency and set up firm rules, making sure your child understands what the consequences will be if those rules are broken.
3. Go Over the Statements Together
A high school student credit card can be a great way to teach your child financial responsibility, but for that to happen your child has to be involved in paying the bill. When the credit card statements come in each month, go over them with your child. If there are frivolous charges, discuss them and talk about responsible credit card spending.
Let your child watch you write the check to the credit card company and make sure they pay you for their share of the bill. This will teach them that plastic needs to be used just as responsibly as cash.
While a credit card isn't right for every high school student, there are definitely some who can benefit from them. If yours is one of them, by all means get them started on the road to a healthy credit future and let them learn from the use of a high school student credit card.
It used to be that parents didn't find themselves considering credit cards for their children until those children went off to college, but nowadays a high school student credit card might be more appropriate. If you have a high school student at home and you've been wondering if a credit card might be a good tool for them, there are three things you need to keep in mind.
1. It's a "Minor" Issue
If your child waits till college to get a credit card, chances are it's going to be in his or her name only -- meaning your credit is off the hook should they mismanage the card or abuse their credit. If, however, your child is a minor (as most high school students are) then your child is going to need to be using one of your credit cards as a secondary user. This means your credit is on the line, not theirs.
Minors can't get their own cards, so you'll be towing the line if your child is under 18 with a credit card in their pocket. If your child isn't responsible enough to manage the card wisely, you'll end up paying for their mistakes, and those mistakes can cost big time.
2. It's All About Boundaries
If you do decide to let your child have a high school student credit card, you need to set up boundaries the moment that card is issued. What can the card be used for? How much is your child allowed to spend? Should he or she contact you for permission prior to using the card?
By setting up clear boundaries you can avoid future headaches (and unpleasant statement surprises). If you simply say "this card is only for emergencies" your child might not understand. For all you know, that cute coat in the mall could be an emergency to a high schools student. Explain exactly what constitutes an emergency and set up firm rules, making sure your child understands what the consequences will be if those rules are broken.
3. Go Over the Statements Together
A high school student credit card can be a great way to teach your child financial responsibility, but for that to happen your child has to be involved in paying the bill. When the credit card statements come in each month, go over them with your child. If there are frivolous charges, discuss them and talk about responsible credit card spending.
Let your child watch you write the check to the credit card company and make sure they pay you for their share of the bill. This will teach them that plastic needs to be used just as responsibly as cash.
While a credit card isn't right for every high school student, there are definitely some who can benefit from them. If yours is one of them, by all means get them started on the road to a healthy credit future and let them learn from the use of a high school student credit card.
3 Easy Steps To Apply For A Credit Card Online
3 Easy Steps To Apply For A Credit Card Online
The proliferation of credit cards can be attributed to a lot of things, as a matter of fact; most Americans own more than one credit card. Its convenience of use, fast and easy application has produced more credit card owners in our society compared to the previous generation.
Having websites that offer online applications for credit cards have also been great swaying factors in making more Americans think about getting a credit card. And why not? This innovation in credit card marketing has made the process much easier. Now you don't even have to leave the comforts of your own home. All you need to have is a computer, an internet connection, your personal information (like your credit rating or credit score, which incidentally you can get online as well) and a little time and effort to find the website which could allow a safe and easy method on how to apply for a credit card online.
The first step is to find a credible website which you can trust your personal information. What you can do is to try looking one from a search engine such as MSN, Google or Yahoo. Make sure that their site features secure SSL Technology protection. You can also try to call them and asking them about their security and their track record. Then if you are convinced that they are a legitimate site, you can try to look at what they are offering.
Browse their website and make sure that they offer all of the major credit cards available today. Search for the type of credit card that you want, if you're not sure what suits you, try to read some of the articles and descriptions the site has for them, good credit card application websites have these feature to help potential clients.
The second step is to compare all the cards that are available in the site. With so much competition nowadays between these credit card companies, each and every one of them tries to outdo each other by offering lower interest rates and with lots of other credit card offers.
Many of these offers include zero percent APR's, low fixed interest rates, cash backs, zero liability in unauthorized purchases, no annual fees, low interest rates for balance transfers, and lots of others. Make sure you understand what the promos are about and see if they last for a definite or a variable time frame. Sometimes the lowest interest rates may not be the best idea, they may only last for 6 months then the rates may go soaring.
The last step is the actual application. After ensuring that you are satisfied with what you have learned in steps 1 and 2, you can proceed to step three, which is the easiest part. All you need to do is to provide all the information that's being asked for.
This will include your name, your address, your income, your employment and business, your credit rating, whether you have been bankrupt and a lot of others. Upon completion, all you have to do is submit the application, which is done automatically on the site.Then all you need to do is to wait.
Although the application is very easy, the approval is the hard part. Not everyone gets easily approved, especially for the great deals. People with great credit reports are usually the ones who gets approved easily and in no time at all because the establishments or credit card companies know that they are good payers.
The proliferation of credit cards can be attributed to a lot of things, as a matter of fact; most Americans own more than one credit card. Its convenience of use, fast and easy application has produced more credit card owners in our society compared to the previous generation.
Having websites that offer online applications for credit cards have also been great swaying factors in making more Americans think about getting a credit card. And why not? This innovation in credit card marketing has made the process much easier. Now you don't even have to leave the comforts of your own home. All you need to have is a computer, an internet connection, your personal information (like your credit rating or credit score, which incidentally you can get online as well) and a little time and effort to find the website which could allow a safe and easy method on how to apply for a credit card online.
The first step is to find a credible website which you can trust your personal information. What you can do is to try looking one from a search engine such as MSN, Google or Yahoo. Make sure that their site features secure SSL Technology protection. You can also try to call them and asking them about their security and their track record. Then if you are convinced that they are a legitimate site, you can try to look at what they are offering.
Browse their website and make sure that they offer all of the major credit cards available today. Search for the type of credit card that you want, if you're not sure what suits you, try to read some of the articles and descriptions the site has for them, good credit card application websites have these feature to help potential clients.
The second step is to compare all the cards that are available in the site. With so much competition nowadays between these credit card companies, each and every one of them tries to outdo each other by offering lower interest rates and with lots of other credit card offers.
Many of these offers include zero percent APR's, low fixed interest rates, cash backs, zero liability in unauthorized purchases, no annual fees, low interest rates for balance transfers, and lots of others. Make sure you understand what the promos are about and see if they last for a definite or a variable time frame. Sometimes the lowest interest rates may not be the best idea, they may only last for 6 months then the rates may go soaring.
The last step is the actual application. After ensuring that you are satisfied with what you have learned in steps 1 and 2, you can proceed to step three, which is the easiest part. All you need to do is to provide all the information that's being asked for.
This will include your name, your address, your income, your employment and business, your credit rating, whether you have been bankrupt and a lot of others. Upon completion, all you have to do is submit the application, which is done automatically on the site.Then all you need to do is to wait.
Although the application is very easy, the approval is the hard part. Not everyone gets easily approved, especially for the great deals. People with great credit reports are usually the ones who gets approved easily and in no time at all because the establishments or credit card companies know that they are good payers.
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