Making Sense of Credit Card Offers

By [http://ezinearticles.com/?expert=J._Weiss]J. Weiss

Have you received credit card offers in the mail? If so, you might have wondered which cards really offered good deals. Credit cards can be helpful budgeting tools, or sinkholes of debt. The difference is in the details: some cards have high rates and fees that make it difficult to keep your debt in check. Take a moment to compare credit cards before you decide to carry one in your wallet.

Credit card offers list the terms and conditions of various cards. When you compare credit cards, look at the interest rate, also known as the APR. It might be listed as 0%. If so, you can bet that it will be much higher in six months to a year. 0% interest cards have introductory phases. After that phase has ended, they are subject to regular interest rates. Most cards offer 12-24% interest rates. The lower the rate, the faster you'll be able to pay off your debt.

Also make note of the type of interest rates on your credit card offers. Some rates might be "fixed", and some might be "variable". Choose fixed-rate interest whenever possible. Variable interest rates can change with little warning from the card issuer. If you do choose a credit card with a variable interest rate, make sure you know when and how much that rate can change.

When you compare credit cards, you'll notice that some of them come with quite a lot of fees. There can be application fees, processing fees, annual fees, late fees, and fees for going over your credit limit. Fees can also apply when you close your account or make a balance transfer to another card. The credit card industry is competitive, so don't waste your time on credit card offers that indicate exorbitant fees.

Your next step when you compare credit cards is to look at the credit limit each one is willing to give you. Some might offer low limits, while others might offer you thousands of dollars. Higher credit limits can improve your credit score, but they can also tempt you to spend money on things you can't really afford.

Always check the small print on credit card offers. Companies should tell you their policies regarding interest-free grace periods, late payments, and how you will be informed if changes are made to the terms of your contract. If you have questions about specific policies, call the card's customer service division and ask to speak with a representative. Most card companies are only required to give 14 days' written notice when making changes to your account. There is pending legislation that seeks to compel card issuers to give more notice before such changes are made.

Don't just accept the first credit card offers that come along. Take the time to compare credit cards. They can be great for building up your credit, but they can also leave you with a heap of debt if you don't use them wisely. Look for good deals with low fees and interest rates. The research you do in the beginning can save you a lot of financial heartache down the road.

This article is courtesy of CreditorWeb.com, where you can compare [http://www.creditorweb.com/categories/business-credit-cards.html]business credit card offers and apply for [http://www.creditorweb.com/]credit cards online.

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How to Choose the Top Credit Cards For Your Needs

By [http://ezinearticles.com/?expert=Ben_Gavin]Ben Gavin

How do you choose which credit card is best for you? The answer depends on what you want to use your card for. A credit card gives you a credit (or a loan) for a certain time period before charging you interest. Different card providers charge different amounts of interest depending what you use it for.

In essence there are three ways to use a card:


Purchases. Simply buying something on credit and then paying for it at a later date.
 Balance transfers. Moving an outstanding debt from one card to another.
 Withdrawing cash from a cash machine.
Card providers will charge different amounts of interest for each of the above 3 ways you use it. Usually, although not always, the cheapest debt is paid first meaning you get charged interest at the highest rate.

For example:

You get a new card and transfer �2,000 debt from another card. You then buy something costing �300. You then withdraw �200 from an ATM. At the end of the month your debt will be �2,500. You can't afford to pay off the full �2,500 at the end of the month but you can pay �200 each month.

However, you are not charged the same rate of interest for each item. Instead you are charged 6% on the transferred debt (i.e. �2,000), 15% on the purchase (i.e. �300) and 20% on the cash withdrawal (i.e. �200). Not always, but usually, the �200 you pay each month will go to clearing the transfer debt first and the cash withdrawal last.

This means you are paying off the debt that is accruing the least interest first and the debt that is accruing the highest interest last. The net result is you pay back significantly more than you would have if you had cleared the highest interest debt first.

Hopefully the above shows why you need to establish what you intend using your card for. Once you decide you need to have discipline to stick to using it for that purpose only. If you believe you may need a card for each or are unsure that you will have the discipline required, then it is much better to get separate cards for an individual purpose.

An important point is: please, please, and please again do not use a card for cash withdrawals unless you absolutely and completely have to. Interest rates for cash withdrawals on cards are always very high and interest gets charged from the minute you make the cash withdrawal. Hence, by the time you get your monthly statement you could have accrued weeks of interest on the cash withdrawal.

To determine what credit card you should choose find the statement below that best corresponds to you and your needs:

I always pay the full balance when due

If you use your card for purchases and always pay the full balance off at the end of each month then you will never pay interest on your card.

Therefore, you can ignore the interest rates and look for a card that rewards your spending. Several cards offer reward schemes such as cash back, loyalty points and donations to charity.

I can never afford to pay the full balance when due

If you use your credit card but can't afford to pay the full balance off at the end of each month, then you will pay interest on your outstanding debt, even if you repay the minimum amount.

Therefore, you need to look for a card with a low standard rate (APR). Many cards have a zero interest introductory period which can be good but be careful of these as once the introductory period has ended you will start to get charged interest unless you pay off the full balance.

If you have already built up a debt on an existing card then you should maybe look for a balance transfer - see "I have a debt but can't afford to pay if off in full" below. However, if you are still spending more than you are paying, this strategy is only deferring the problem to a later date.

I have a debt but can't afford to pay if off in full

I will not bang on about reducing the debt, stop spending, etc. Every website goes on about it and while it is true often it is very difficult to stop spending and the last thing you want to hear is another person/website on your case about it.

Assuming you can stop adding to the debt, then you want to go for cards that offer low interest rates on balance transfers.

This means you transfer the debt from your existing credit card onto a new credit card. The new card having a lower interest rate than the existing one, meaning you have less to pay back in the long run. Many card providers now offer 0% interest on balance transfers (0% APR balance transfers) for periods up to 15 months. Therefore, you could have 15 months in which to pay off the debt before you get charged any interest. Most 0% APR balance transfer credit cards will charge a one off fee for doing the balance transfer - this is usually 2 or 3 % of the balance.

If you can't stop adding to the debt, then you want to go for a credit card that offers both low interest on balance transfers and low interest on purchases. Many credit cards now offer 0% APR on balance transfers for 15 months as well as 0% APR on purchases for 3 to 6 months.

This means you transfer the debt from one card to another as discussed above. Additionally, you can continue to spend on the card without accruing any interest on these purchases. All of course for the period the 0% APR on balance transfers and 0% APR on purchases lasts for. Once these periods are up you start accruing interest.

I only use my credit card when travelling

If you travel regularly and use a credit card when abroad you will likely pay an overseas usage fee. There are some that don't but most do charge an overseas usage fee.

Generally it is a double-edged sword. Cards with low or zero overseas usage fees tend to give you lower exchange rates. Whereas cards with higher overseas usage fees tend to give you better exchange rates.

Credit card exchange rates are based on the MasterCard and Visa wholesale rates, with a percentage usually added by the provider.

You need to look at a few things and weigh up the pros and cons:


The overseas usage rate/fee.
 Does the overseas usage rate differ in different countries or parts of the world. Which country/region are you regularly visiting?
 What, if anything, does the card provider add to the MasterCard/Visa wholesale rate.
 What other facilities does the card offer (e.g. provision of a replacement card, international assistance package, insurance, air miles, etc).
Other factors to consider

There is constant media attention given to people being caught out and seemingly ripped off by 'hidden credit card charges'. Particular things to look out for include:


Late payment fees.
 Returned payment - if your cheque bounces or your direct debit is declined for some reason.
 Exceeding your credit limit.
 Cash withdrawals - as mentioned above, please avoid this at all costs.
 Balance transfer fees - as mentioned above.
 Overseas usage fees - as mentioned above.
Now you know the key criteria for comparing credit cards you can easily pick the [http://compare-credit-card-rates.blogspot.com/]top credit cards for your needs.

Ben graduated with a business and economics degree back in 1998. Following many years service in the financial sectors Ben has turned his attention to helping everyday people with their finances. He has seen first hand how many people struggle with their financial situation primarily due to poor advice and misunderstandings of how money works. His latest venture is a blog that allows users to compare credit card rates [http://compare-credit-card-rates.blogspot.com/] in the UK.

Article Source: [http://EzineArticles.com/?How-to-Choose-the-Top-Credit-Cards-For-Your-Needs&id=4676073] How to Choose the Top Credit Cards For Your Needs

Tips For Your First Credit Card

By [http://ezinearticles.com/?expert=Rakesh_Gaikwad]Rakesh Gaikwad

Now that you have made the decision that it is time for you to go ahead and get yourself a credit card, you are ready to set out on a quest for one that will best suit your needs. When you first begin your search, you will realise that there are a tremendous number of credit cards available out there. There are no hassle versions, no annual fee varieties, low annual percentage rate types, business ones, air mile point credit cards, identity theft protection categories, store cards and quite a few more as well. It is up to you to compare credit cards and choose the one that is right for you.

Obtaining a credit card it not something you should just do on the fly. If you do not use it in the correct manner, you will find yourself with a bad credit report and drowning in debt. If you choose the wrong one, not only could you miss out on some great benefits, but also you could be forced into a greater debt at a faster pace. In order to find the best credit card for you that will suit your personal financial situation, select the card you wish to obtain and then compare credit cards in that category.

The first thing that you should do is identify your individual spending habits. Make a note of how you plan to use your credit card. Are you going to charge to it all of the time or just for emergencies? What are you going to charge to your credit card most often? If you plan to charge most of your expenses, then you will want a card that has many reward points or gives you cash back. If you plan to use your credit card to only purchase the same thing all of the time such as gas, the you would probably be happiest with a credit card that rewarded you with gas. Some credit cards will offer you a certain amount of cash back for all of your purchases and a higher rate of cash back on automotive related expenses such as gas and upkeep. You can find websites that help you compare credit cards so you can find the right one for you and your circumstance.

If you travel all of the time and spend a lot of your time on an airplane, then a credit card with air miles or a point's reward system that lets you earn travel expenses would most likely suit you best. These credit cards offer you one or more air miles or one or more reward points for every dollar that you charge to the card. You can collect your miles and points to redeem free airline flights.

If you are concerned about paying high interest rates on a credit card because you keep a balance, you need to find out the reason that you are carrying a balance. Are you spending money you do not have on things that you cannot afford? If you correct a problem such as this, interest should not be as much of a concern. If you have a balance that you wish to transfer from another credit card, there are cards available that offer no interest on balance transfers for the first year or longer. This way you can have the balance paid off without ever having to pay any interest.

Be sure to shop around for a credit card that offers no annual fee. Most of the credit cards that are available to consumers these days do not have an annual fee, but still offer the cardholder an array of great benefits. Look until you find the credit card that will best suit your particular needs. Do not just get lazy and settle for any old card that comes your way. Just by taking a little extra time to do a bit of research and compare credit cards before choosing the one that is best for you, you will save a lot of money as well as keep yourself free from debt.

Only Finance is one of the UK's most leading companies for comparing Loan, mortgage, insurance and credit card products. Only Finance helps you to [http://www.onlyfinance.com/]compare credit cards and select the card you wish to obtain and then compare credit cards in that category.

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