One of the fastest and easiest ways to cut down on credit card debt is through what is known as debt consolidation. Debt consolidation is simply the tactic of taking expense high interest loans and paying them all off with a single lower interest loan, effectively capturing the difference in high and low rates as your instant savings. Of course the problem these days is that banks and other lenders are being tight with their money, so it is not so easy to just walk into a bank and walk out with a good debt consolidation loan. Instead, many consumers are taking the debt consolidation idea and implementing it by themselves, just by doing a credit card debt balance transfer.
Here’s how it works, in a nutshell: Say – just for example – that you have two or three credit cards with credit card debts on each one of $1,000, for a total of $3,000 in balances carried forward month to month. Now for the sake of example let’s assume that each card has an interest rate of 20 percent. If you get an offer from a competing credit card company that will let you do a balance transfer for zero percent interest on the transferred balance, you could move all of your other credit card debt – from the three different cards – over to that one new card. You will still have an outstanding balance of $3,000 total, but it will be on one card, not three, which makes it easy to manage. You just have to pay one bill, not three bills, and that significantly decrease the chances that you will accidentally forget to pay one and go into default. But the best part is that your 20 percent debt is now transferred over to a credit card charging you zero percent.
Just by doing the balance transfer described in our little example, we saved 20 percent of $3,000 – which is equal to $600. Plus we simplified our budgeting and household accounting and check paying, which saves times and eliminates hassles. So if you want to take a bite out of your debt in 2010, consider doing a smart balance transfer. You could save hundreds of dollars in a matter of minutes.
Offshore Pro Group
Sunday, 23 May 2010
Credit Card Limits: What’s typical and how are limits calculated?
Every credit card has a limit on how much the cardholder can spend each month without incurring extra fees and penalties. In other words, each credit card has a credit ceiling on how much can be purchased against it, charged to it, or borrowed from the account in a given month. Exceed that limit by, for example, spending more than the stated limit and the credit card company will hit you with a fine. Keep going too far over the limit and eventually the card company may lower your limit even further while also reporting your behavior to the major credit history agencies – which will result in a lower overall credit score or FICO score.
So it is to the consumer’s advantage to have a higher credit ceiling. While typical credit card customers with a major card like a Visa or MasterCard usually start off with credit limits of $500-$1,500, others customers have credit limits that are 10 to 15 times higher than that. When you first apply for a credit card, the card issuer will study your credit report and other information regarding your income, debts, and financial liabilities like mortgages or car payments. Using that data they will do calculations to determine how much of your monthly income is spent on paying your bills – and how much of it is left over after all your obligations are paid in full. In other words they try to predict how well you can budget your money, and how much extra money you have left over. Based on those calculations they will offer you an amount of credit – or a credit limit – that they think is reasonable. They want you to use your card but they also want to ensure that you do not default or miss a payment.
Once your credit limit is established, however, you can prove to the card company that you are ready to have a higher limit by paying your balance on time each month. Do that and every six months or so the card company will raise your limit. The limits are often raised by $200 or so at a time, so over a period of 10 years of good payment history your limit might go from $1,500 to $6,000. Sometimes you can also get your limit raised by transferring a balance from another credit card. So, for example, if you transfer $2,000 to your card from a competitor’s card, your card company may agree to raise your credit limit by $2,000. Combine balance transfers with a solid payment history and you, too, may wind up with a $25,000 credit limit – which is unusually high but not impossible to achieve.
Offshore Pro Group
So it is to the consumer’s advantage to have a higher credit ceiling. While typical credit card customers with a major card like a Visa or MasterCard usually start off with credit limits of $500-$1,500, others customers have credit limits that are 10 to 15 times higher than that. When you first apply for a credit card, the card issuer will study your credit report and other information regarding your income, debts, and financial liabilities like mortgages or car payments. Using that data they will do calculations to determine how much of your monthly income is spent on paying your bills – and how much of it is left over after all your obligations are paid in full. In other words they try to predict how well you can budget your money, and how much extra money you have left over. Based on those calculations they will offer you an amount of credit – or a credit limit – that they think is reasonable. They want you to use your card but they also want to ensure that you do not default or miss a payment.
Once your credit limit is established, however, you can prove to the card company that you are ready to have a higher limit by paying your balance on time each month. Do that and every six months or so the card company will raise your limit. The limits are often raised by $200 or so at a time, so over a period of 10 years of good payment history your limit might go from $1,500 to $6,000. Sometimes you can also get your limit raised by transferring a balance from another credit card. So, for example, if you transfer $2,000 to your card from a competitor’s card, your card company may agree to raise your credit limit by $2,000. Combine balance transfers with a solid payment history and you, too, may wind up with a $25,000 credit limit – which is unusually high but not impossible to achieve.
Offshore Pro Group
Saturday, 22 May 2010
Deciphering Tricky Cash-Back Rebate Card Terms
These days consumers are watching their expenses more carefully than they have in decades, and any opportunity to save a few dollars is greeted with eagerness. Credit card issuers know what makes consumers tick, and these days they are using their marketing campaigns to appeal to the urge to save while Americans struggle to pay their bills. But credit card cash back programs, rewards card offers, and advertisements for the newest and most exciting rebate card should be read carefully before signing up on the dotted line. That’s because many of these offers have contingencies or terms that need to be met in order to qualify.
Some rewards come in the form of gifts or merchant discounts, for example, but those will only be valuable to you if you shop for those items or with those particular retailers. Other rebates kick in after an introductory period or only if your spending limits reach a certain amount. Then there are cards that offer a higher percentage of rebate or reward for specific categories of purchases – but in other categories the perks are less. Card companies naturally emphasize the topmost rewards and highest values in advertising, so the prominent reward or percentage in an ad or mailed offer may only apply to some situations, while the average rebate is smaller.
Almost all of them offer perks, for sure, and many are rewarding and valuable. But to make sure you get the right card for your particular needs, be sure to read the smaller print. Thanks to new federal rules and regulations regarding transparency and clarity, that smaller print may have gotten a few font sizes larger in recent months. The consumer protection laws have forced card issuers to be more up-front about the terms of their agreements, and they are starting to use more user-friendly language. So generally speaking card statements and offers are now easier to comprehend. But smart consumers are choosing their credit cards carefully and avoiding the habit of carrying lots of different cards. So if you are searching for the ideal rebate card for your spending and savings needs, read the entire offer and the small print so that you can make a wise and informed decision.
Offshore Pro Group
Some rewards come in the form of gifts or merchant discounts, for example, but those will only be valuable to you if you shop for those items or with those particular retailers. Other rebates kick in after an introductory period or only if your spending limits reach a certain amount. Then there are cards that offer a higher percentage of rebate or reward for specific categories of purchases – but in other categories the perks are less. Card companies naturally emphasize the topmost rewards and highest values in advertising, so the prominent reward or percentage in an ad or mailed offer may only apply to some situations, while the average rebate is smaller.
Almost all of them offer perks, for sure, and many are rewarding and valuable. But to make sure you get the right card for your particular needs, be sure to read the smaller print. Thanks to new federal rules and regulations regarding transparency and clarity, that smaller print may have gotten a few font sizes larger in recent months. The consumer protection laws have forced card issuers to be more up-front about the terms of their agreements, and they are starting to use more user-friendly language. So generally speaking card statements and offers are now easier to comprehend. But smart consumers are choosing their credit cards carefully and avoiding the habit of carrying lots of different cards. So if you are searching for the ideal rebate card for your spending and savings needs, read the entire offer and the small print so that you can make a wise and informed decision.
Offshore Pro Group
Friday, 21 May 2010
Is a Free Credit Card Too Good to Be True?
Just as the old saying goes, there is no free lunch in this world. But there are freebies attached to credit cards – including perks like no annual fee or yearly membership. These so-called free credit card deals may not be completely free of charges – such as interest you still have to pay on any balances you carry forward from month to month – but when it comes to owning a credit card one with no annual fee is as close to a free credit card as it gets. Pair that free yearly membership with a competitive interest rate – or a low or zero introductory rate deal – and you have a formula for a really attractive credit card.
Keep in mind that some cards that do charge an annual fee may have other benefits that can help to justify the cost of your yearly membership. Many rewards card, for example, like those that are connected to an airline frequent flier program may carry an annual fee. But if your rewards outweigh the cost of enrollment, then it may be worth it to you. Otherwise you will want to search out cards that are really and truly free credit cards with no annual fee – because unless you are getting some special perks there is no reason why you should have to pay for the privilege of carrying plastic around in your wallet.
Study the small print whenever you get a free credit card offer to determine whether it is a permanent offer or one that has an expiration date. Many cards will start you off for free, for instance, but maybe after the first year you will start to be charged an annual fee. Others will charge a one-time enrollment fee when you first get the card, a practice that is common with cards offered to people who have poor credit.
But if you have decent credit and plan to hold on to your card and rely on it for years to come, you might be better to keep shopping around. There are literally hundreds – if not thousands – of great credit cards that never charge any enrollment fee or yearly membership at all while the still offer great rates and benefits.
Offshore Pro Group
Keep in mind that some cards that do charge an annual fee may have other benefits that can help to justify the cost of your yearly membership. Many rewards card, for example, like those that are connected to an airline frequent flier program may carry an annual fee. But if your rewards outweigh the cost of enrollment, then it may be worth it to you. Otherwise you will want to search out cards that are really and truly free credit cards with no annual fee – because unless you are getting some special perks there is no reason why you should have to pay for the privilege of carrying plastic around in your wallet.
Study the small print whenever you get a free credit card offer to determine whether it is a permanent offer or one that has an expiration date. Many cards will start you off for free, for instance, but maybe after the first year you will start to be charged an annual fee. Others will charge a one-time enrollment fee when you first get the card, a practice that is common with cards offered to people who have poor credit.
But if you have decent credit and plan to hold on to your card and rely on it for years to come, you might be better to keep shopping around. There are literally hundreds – if not thousands – of great credit cards that never charge any enrollment fee or yearly membership at all while the still offer great rates and benefits.
Offshore Pro Group
Credit Card Rewards Programs: Good reasons to say “charge it”
There are many different types of credit card rewards programs that will pay you back with money or other incentives in exchange for you using your card to pay for merchandise or services. Pick one that is appropriate to you based on what you buy the most often, and you can wind up saving a great deal of money – or getting lots of free perks or discounts – just by using your rewards card.
Let’s say, for instance, that you are a constant traveler who spends lots of money every year on airline tickets, rental cars, hotels, and out of town meals. Pair those spending habits with a good rewards card that tailors its incentives, rebates, or other credit card rewards to the business traveler and you may reap some really advantageous benefits.
Or if you are, for example, a truck driver or sales person who spends several hours each day driving from one customer or drop-off destination to another, you might be an ideal candidate for a gasoline credit card rewards program. These may pay you rebates or credits based on how much gas you buy or money you spend, or they may reward you for buying a particular brand of gasoline.
Some cards will even do innovative things such as entering you into a lottery type contest as their unique credit card rewards program. Get lucky and you might win a huge amount of money. There are cards that cater to people who support charities, too, and if you use those kinds of cards you might get rewarded not directly but through a program that automatically donates part of your credit card totals to your favorite non-profit organization.
The range of possibilities is huge, so if you want to earn cash back through a rewards card or get other types of credit card rewards as a bonus or incentive for being a loyal, active, and good credit card customer then shop around for a rewards card or cash back program that appeals to you and rewards your kind of spending patterns or shopping preferences.
Offshore Pro Group
Let’s say, for instance, that you are a constant traveler who spends lots of money every year on airline tickets, rental cars, hotels, and out of town meals. Pair those spending habits with a good rewards card that tailors its incentives, rebates, or other credit card rewards to the business traveler and you may reap some really advantageous benefits.
Or if you are, for example, a truck driver or sales person who spends several hours each day driving from one customer or drop-off destination to another, you might be an ideal candidate for a gasoline credit card rewards program. These may pay you rebates or credits based on how much gas you buy or money you spend, or they may reward you for buying a particular brand of gasoline.
Some cards will even do innovative things such as entering you into a lottery type contest as their unique credit card rewards program. Get lucky and you might win a huge amount of money. There are cards that cater to people who support charities, too, and if you use those kinds of cards you might get rewarded not directly but through a program that automatically donates part of your credit card totals to your favorite non-profit organization.
The range of possibilities is huge, so if you want to earn cash back through a rewards card or get other types of credit card rewards as a bonus or incentive for being a loyal, active, and good credit card customer then shop around for a rewards card or cash back program that appeals to you and rewards your kind of spending patterns or shopping preferences.
Offshore Pro Group
Thursday, 20 May 2010
Prepaid Credit Card Frenzy: Why they are so hot in 2010
The market for prepaid credit cards is one of the fastest-growing segments of the multi-billion dollar credit card industry, and it is expected to continue to swell in 2010. Much of the reason for this surge is that prepaid credit cards are being marketed and advertised much more effectively – even being issued by famous pop stars whose logos appear on the cards as a kind of status symbol perk.
But the biggest fuel behind the prepaid credit card boom is, unfortunately, bad credit. Those who have bad credit due to a credit history that involves bankruptcy, mortgage default, or some other major problem cannot get traditional credit cards. During the recession millions of people found themselves suddenly in that unfortunate situation. And without a credit card it is not just inconvenient but sometimes hard to do simple things like rent a car. So people turn to prepaid cards as a way to get some plastic in their wallets until they have a chance to get their credit histories and finances back on track.
With a prepaid credit card you establish your own credit history, basically, and you decide for yourself what your credit card charge limit will be. In that way these cards can be very empowering – especially for those consumer who are sick and tired of being turned down for credit at banks and other financial institutions. The way the prepaid card works is that you deposit cash into an account, and that reserve of cash is used as your line of credit. You can charge on your card, make purchases with plastic, pay bills via credit card, or perform other typical credit card functions just as you would do with a conventional credit card, but only up to the amount that you have on deposit. Once the cash you prepaid into the account is used up, the credit card is also used up and will not function for you anymore.
So prepaid lets you control your finances because you determine when and how much to put on deposit to back up the plastic. Used wisely these card can be both convenient and helpful because you have the freedom of a credit card paired up with the responsibility that comes from managing money intelligently. Use a prepaid to shop, but also use it to improve your credit history so that you can eventually graduate to a full-service credit card.
Offshore Pro Group
But the biggest fuel behind the prepaid credit card boom is, unfortunately, bad credit. Those who have bad credit due to a credit history that involves bankruptcy, mortgage default, or some other major problem cannot get traditional credit cards. During the recession millions of people found themselves suddenly in that unfortunate situation. And without a credit card it is not just inconvenient but sometimes hard to do simple things like rent a car. So people turn to prepaid cards as a way to get some plastic in their wallets until they have a chance to get their credit histories and finances back on track.
With a prepaid credit card you establish your own credit history, basically, and you decide for yourself what your credit card charge limit will be. In that way these cards can be very empowering – especially for those consumer who are sick and tired of being turned down for credit at banks and other financial institutions. The way the prepaid card works is that you deposit cash into an account, and that reserve of cash is used as your line of credit. You can charge on your card, make purchases with plastic, pay bills via credit card, or perform other typical credit card functions just as you would do with a conventional credit card, but only up to the amount that you have on deposit. Once the cash you prepaid into the account is used up, the credit card is also used up and will not function for you anymore.
So prepaid lets you control your finances because you determine when and how much to put on deposit to back up the plastic. Used wisely these card can be both convenient and helpful because you have the freedom of a credit card paired up with the responsibility that comes from managing money intelligently. Use a prepaid to shop, but also use it to improve your credit history so that you can eventually graduate to a full-service credit card.
Offshore Pro Group
Tips for Finding the Best Prepaid Mastercard Card
With the guide to prepaid cards we provide you will be able to compare the different offers of a prepaid Mastercard card in the market and find out the issuer offering you the best prepaid Mastercard card out there.
A prepaid MasterCard card is a card that is pre-loaded with money, specifically your own money. You can use this on any retailer or establishment that accepts payment via MasterCard cards. It works basically the same ways as a credit card but without the credit.
Credit card and prepaid MasterCard can be somewhat confusing and misleading. The difference between the two is that with a prepaid MasterCard card, you are already paying for the service or product and not through credit. This is because every time you are using a prepaid card, you are actually immediately spending the money stored in the prepaid card account thus you are already paying for it, thus, avoiding being in debt and the high interest rates that come with it.
Here are some advantages and reasons on why you should use a pre paid card:
- The increase of identity theft and the chances of getting your cash stolen, it is more practical to just put all your money in a prepaid card because if stolen you can report it to the card company and they will replace the stolen value.
- Prepaid cards could work a lot like gift cards with a few perks that makes it better, plus anyone can apply for it and get approved immediately.
- It can be used at almost anywhere as long as they accept card as payment
- A prepaid card acts like a credit card. It allows for online shopping, buying gas, and even in restaurants that accepts MasterCard. Transactions via phone are also possible.
- If you have a bad credit record this is an ideal option. The fees are not that difficult and it could also help you build good credit profile since you can start all over again. If you are having problems applying for a credit card because of your record, it will be easy to apply for this card. No credit background check is done for prepaid MasterCard application.
There are two ways for applying for best prepaid credit cards. You may apply at a provider’s outlet (depending on your location) and you may also apply online. There are several brands of prepaid MasterCard cards. It will be better to check if the specific brand that you have chosen is available in your area.
If you are the type of person who want to have the perks that credit card holders have but does not want to be burdened with the problems that comes with it such as high interest rates, credit debt, and a long process of credit background check, then a prepaid credit card is really a good choice.
This option could also help you discipline yourself in your spending habits.
Another good benefit of this is that you can have your salary deposited to this account which makes your life way simpler. You may also pay your bills using your debit card which makes these transactions easier and more secure.
Although pre paid cards help in making you debt free it also comes with responsibilities. Remember that every time you swipe your prepaid Mastercard card, it’s just like paying by cash. The money in the prepaid Mastercard card is just equal to the money that you pre-loaded.
Offshore Pro Group
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