Credit Card ’s Talk

Making comparisons for a credit card can save a lot of money on interest and fees. Doing a research will help in finding a sight one that suits your needs. Let us help you in considering some points before you settle for a card.

The first one to remember is understanding the features of credit cards.

Do not forget to compare credit card features and costs.

Keep tabs upon your rights & limitations before & while using your credit card.

You should always file a complaint if you face any problem with your debit card.

The first thing to keep in mind before choosing a credit s thinking about how you will use it eventually. If you want to pay your monthly bill in full and other features such as frequent flyer miles don?t interest you, then you should settle for nothing but a card has no annual fee & offers a longer grace period.

But if you may come across situations where you have to come over a balance from month to month, then a card that carries a lower interest rate (APR) would be ideal for you.

If you expect to use your card to get cash advances, you will want to look for a card that carries a lower APR and lower fees on cash advances. There are some cards which charges a higher APR for cash advances than for purchases.

Wondering what an APR it? It is the Annual percentage rates, which state the interest rate you are supposed to pay please you, carry over a balance, take out a cash advance or transfer a balance from another card. The APR basically states the interest rate as a yearly rate.

The Grace period: - A grace period is the number of days you have to pay your bill in full without triggering a finance charge. If a credit card company states that you have 25days from the statement date, provided you?re paid your previous balance in full by the due date. The statement date as given on the bill.

This grace period is applicable lonely to new purchases. Some credit cards do not provide any grace period for cash advances and balance transfers and start their interest charges right away.

If your balance is carried over from the preceding month, you may not enjoy a grace period for new purchases. You must look for the information about the ?method of computing the balance for purchases? which tells you connecting about the inclusion & exclusion of knew purchases in this case. Never neglect the small print while deciding on anything.

For more informative articles, tips, & latest news visit http://www.credit-cards-4us.com/CreditCardArticles.html

Have you ever wondered why your credit card bill is so high and you can’t seem to pay off the balance? Well you are not alone in this. You should be aware of a couple of trick that they use and you probably don’t even pay attention to it, but you definitely pay for it and BIG!

The next time you open up your credit card statement, take a real close look to all the junk inside particularly the very hard to read insert Call changes to you credit card agreement. That’s right the one you always throw away or say that I’ll read it later and never really do. Since you neglected to read all that fine print you just threw away you should realize what you just did. In essence you just agreed to all the changes the credit card company made IF (and that’s a big IF) you use your credit card again. Most people do and don’t even read all that stuff in the envelope with their statement. Since these were automatic changes effective immediately or on a specific date that they set in the new terms and conditions.

Some of the ones the credit card companies use most often include, but not limited to, changing your APR (annual percentage rates) you thought that 0% would last forever? Changes to your existing fees and/or adding new fees. Let us not forget that they also like to change your grace period, the time that you can pay it off and not receive a finance charge.

If you don’t know or you don’t keep track of your credit limit…stop using it! If not you will get yourself into this next little fix. When ever you do go over the limit (they make sure and give you a little slack so they have an extra fee to charge) they hit you with an over the limit fee making you more over the limit and making you pay down your balance even more or you will face yet another over the limit fee the following month. There is nothing like a little $35 or more fees to cheer you up when you have to pay your bills.

If you really like higher rates on your credit card then just make sure the payment is late, that is a sure fire way of getting an increase in you APR. Some credit card companies go as far as saying your payment is late if not received by noon or 1 p.m. on the payment due date. Thanks for another $29 or more fees are the likely response from the credit card company. If you are a procrastinator and wait until the last minute to put money in the bank for your check to the credit card company to clear then you need to be very careful. With all these new high tech devices we have these days they are a lot more efficient at processing their money taking days shorter than they did even 5-10 years ago.

For the ultimate procrastinator who will wait until the last minute and pay online. Once again the credit card companies will most likely make you pay for that convince. I have seen anywhere from $1 to $15 just to make your payment online.

This one is my favorite one and it took me awhile to figure this one out, because like you I really just didn’t pay attention. And man did they make me pay for it too. Some credit card companies offer cash advances. You really have to think to yourself How good of a deal is it really going to be? after all they already charge 15%-18% or higher!

Why is it such a bad deal?

I’m glad you asked.

In most cases when you use your credit card to withdraw cash more fee kick in:

- A cash advance fee is normally an up front fee any where from 2%-4% of the cash you take out

- The cash advance on the credit card ALWAYS has a higher interest rate than your normal purchases

- The interest starts as soon as you get the money out of the ATM

- Many of the credit card companies also require that you pay off all the balance from your purchase before you can pay off your cash advance.

Here’s a little example on how they get you with those extra fees:

Let’s say you regularly charge $200 dollars a month with purchases on your credit card and you keep a running balance on your credit card of $1000. If you went out and needed cash right away and took out a $100 cash advance you would have to pay off the $1000 dollars before you would be able to get to paying off the cash advance. Now let?s not forget the $200 you put on every month that you would have to pay off before they would pay off the cash advance. I was going around in circles on this one for years before I figured it out.

Free advice don’t use a cash advance unless you absolutely have to.

Taking the time to read the little junk the credit card companies send you in the mail and knowing where all these fees go will save you a lot of money in the long run.

Mical Johnson is affiliated with Rock Financial, Inc., a Licensed Correspondent Mortgage Lender, Florida Department of Finance. Mr. Johnson hosts Home Buyer?s Seminars which are open to the public each month in the TampaBay area in Florida. To obtain a free copy of Mr. Johnson?s Home Buyer Handbook contact him at http://www.TampaMortgageGuy.com. He is also a contributing author at http://www.Debt-Free-Personal-Finance.com

Learn How to Succeed at the Balance Transfer Game

If you use your low interest credit card wisely you can save some big money by taking advantage of credit card transfers. With a balance transfer you can take advantage of initial low (teaser) rates that are offered by major credit card companies. Teaser rates are usually good for three to six months after you receive the card.

Rates can range from 0% to 9% and they are beneficial to people who have large debts on credit cards with higher interest rates. By transferring the balance from your existing high interest card to the low interest credit card, you will save big money on interest.

So how do you succeed at the balance transfer game? If you follow these steps and pay attention to the warnings, you can save a great deal of money in interest.

First, this is not for everyone. This strategy is for people who are reasonably sure they are going to pay off their total credit card debt within the introductory period. When you switch to your low interest credit card (also known as a 0 apr credit card or low apr credit card), the initial term is usually for six months. When that period is over, the interest rate will go up, sometimes a great deal. If you are able to pay your total credit card debt off within the initial period, the card will be very beneficial. However, if you are unable to clear the total debt within the introductory period, your monthly payments will increase. This can greatly reduce any benefits you would have gained during the initial period.

Second, shop around for your low interest credit card offer. Choose a card that waives transfer charges for balance transfers in the initial promotional period. Be sure to remember that most banks treat credit card transfers identical to cash advances. Also, the transfer may be subject to daily interest fees, which can add up quickly and often there is no grace period where interest isn’t charged. The costs of transferring a large balance in these cases can be astronomical.

Always read the fine print when applying for a credit card. Be aware of the term ‘flat balance transfer’, which will cost you fees on all balance transfers. You must be knowledgeable of the cost of all balance transfers. If you find nothing on the credit card application, ask a banking representative if there are any flat balance transfer fees.

Next, take advantage of the credit card grace period. Transfer the balance on your high interest card to the low interest credit card before the payment due date that appears on your bill. Most credit card companies offer a grace period of between 25 and 30 days. After the due date, interest is charged on the outstanding balance. If you transfer the balance before the due date, you will save money on interest. Some credit card companies offer no grace period. In this case, you are charged interest from the moment you charge an item or from the day you transfer your balance. Do not apply for credit cards that do not offer a grace period.

Now that you have transferred your balance to the low interest credit card, you will begin to receive your monthly bill. Always pay before the due date and always pay more than the minimum payment, which is the lowest payment you can make if you wish to keep your card and your credit history in good standing. Why? Because minimum payments usually pay only the accrued interest or a portion of it. That means the principal remains at the same amount that it was before you made your payment. You will not be able to pay off your total credit card debt within the low interest introductory period. And that defeats the purpose of using the balance transfer strategy.

Balance transfer to a low interest credit card is a good short term strategy, but don’t use it over an extended period of time. The key is to take advantage of the low interest introductory period to save a great deal of interest while you completely pay off your balance.

You, and only you, are responsible for your credit card debt. Use your low interest credit card wisely and it can save you hundreds or thousands of dollars each year.

Thomas Erikson is co-founder of Your-Debt-Consolidation-Loan.com which provides low interest credit card information and solutions

Getting those bills in the mail is not much fun - especially the credit card bills. But what if, every time you got a bill, you also were informed about how much money your purchases had earned - wouldn’t that make it more interesting? That is exactly what credit card rebates does for you. Many credit card companies are now offering rebate credit cards, giving you a percentage back. We have offered a description of what to look for in your new rebate credit card and how to get yours, quickly and easily.

Compare The Interest

Getting credit card rebates sounds like a really good idea - and it is. A few years ago - about 15, or so, there was a standard fee that everyone had to pay if they owned a credit card. Only more recently did the credit card companies begin to vary from this pattern of standardization -apparently the competition demanded new ideas. Now just about all of them have some kind of unique way to get people to sign onto their card.

A rebate credit card is really only better for you if you are in the habit of paying it off each month, when your bill comes in. This kind of card is normally a little higher in interest than a regular credit card would be. This is their way of offsetting the expense. As long as you pay the bill each month you will not have a problem. If, however, you allow your bill to be carried over into the next billing period — well, the truth is that your card really won’t do you much good. You could do better with a regular credit card.

Look For Annual Finance Fee

Rebate credit cards will often charge an annual finance fee. Some cards will waive it for the first year, but then you will be charged in successive years. The fee can also vary quite a bit, too, going from as low as $15 to as much as $135 per year.

Notice The Caps

Quite a number of these cards carry caps on just how much of a monthly (or yearly) rebate you can receive. It may differ, too, in the different kinds of purchases you make. They often will give you one rate for groceries, medicines, and gas, and another rate for purchases you make at certain stores, and then another rate for your general purchases.

Watch Your Statements

The actual amounts that you receive from your rebate credit card will often depend on which of the above categories the purchase is placed into - this is often their prerogative - but still, gas is gas. In order to ensure proper crediting, you will need to verify your purchases, each month, the rebates that are given to you.

Note The Time Frame

A rebate credit card often uses the rebates part of it as an attraction for you to get the card — and it is a good one, too. Keep in mind, however, that the rebates may not keep coming — but usually are good only for the first year of the card. Other cards may only give the initial offer for three months, and then drop down to a lower credit card rebates level after that. By shopping around, you will quickly find that there are many different conditions for similar cards.

You also will want to read the fine print about possible late payments — just in case. A late payment may be all that is necessary to put you in a category of paying the highest possible interest. So, be informed, and enjoy as many possible benefits as you can, too.

Getting your own credit card rebates is a great way to go - but there is one that is even better. When you shop around, before you sign up, try to get a rebate credit card with 0% APR, and low interest. This way, as long as you make the monthly payment in full, you will be saving on interest, and get those wonderful rebates, too.

For more information on credit card rebates, Robert Alan recommends that you visit CreditCardAssist.com

If you have fallen behind on your credit card payments, you can expect a phone call. OK, you can expect a lot of phone calls. If you are going to attempt to deal with the debt collector on your own, remember that you are going head-to-head with a tough professional that does this everyday for a living.

It pays to know your rights. Keep a detailed record of all of your communications when you speak to them. Note the time and date of the call, the person that you spoke with (get their ID number if they have one) and everything that they said.

Before talking to any debt collector, review the Fair Debt Collection Practices Act. This is a general ?rule book? that the creditors have to play by. Follow this link to better prepare yourself for battle. www.ftc.gov/bcp/conline/pubs/credit/fdc.htm. Many states also have their own ?rules of engagement? that you should know. You can find out more about what your state allows a debt collector to do by contacting your local attorney general?s office. Just do a quick Google search; attorney general California debt collector (for example) and there will be a direct link about that States Fair Debt Collection Practices Act.

After you have beefed up on the FDCPA, here is what you should do next:

Prioritize your bills. ?

No matter what a debt collector says, when you are having financial difficulty, the most important bill to pay is not your credit card bill. Providing for your family comes first. You need to make your mortgage, vehicle, utilities and insurance payments. Provide for groceries and other life essentials as well. If you don?t make your mortgage payments, you run the risk of losing your home to foreclosure. If you don?t make your vehicle payments, you run the risk of having your vehicle repossessed (not to mention that in most cases, you won?t be able to get to work to make money to take care of your bills). Not eating and skipping required medications is not a good idea for obvious reasons.

If you don?t make your credit card payments, they would have to sue you first before they could do anything to you. This process will normally take several months to get to. They can?t garnish your wages or put you in jail or whatever other things a debt collector will say to get you to pay them right away. So remember, take care of your family and your most important bills first.

Estimate how much you can afford to pay. ?

Once you have your priorities taken care of, figure out how much you could afford to send to the debt collector and offer them less. This way if anything does happen that you didn?t expect, you don?t put yourself in a further bind. In addition, if they reject the lesser amount, the amount that they want may be what you can still actually afford.

Never send a debt collector any postdated checks and never agree to automatic electronic payments for your checking account. Remember, they do this for a living folks. They may say that in order to accept such a payment, we would have to have post-dated checks or we need to have this taken from your checking account. Tell them no. This is what I can afford and I can send the payment out to you each month on (give them a date that you can stick with).

Once they have the postdated checks in hand, they can cash them. Once they have access to your bank account, they can continually take money out. Not to mention that they now have your banking information, etc.

Don?t start in with your life story, they don?t care ?

How many people do you think they talk to each day? They have heard it all. It?s not that they don?t feel for you. But quite frankly, their job is to collect money from you. That is how they feed their family. If you are at the stage where a debt collector is calling, stick to the facts and make them a payment offer that you can afford.

Control what information is communicated ?

Don?t give a collection agent any personal information. Don?t tell them where you work, where you bank or your checking account number. When they start off the call by saying, ?I just want to update or confirm our records; can you confirm your work number or bank account information?? Don?t tell them. You can be polite and say, I?m sorry, what can I help you with? The more that you remain in control, polite but firm, the better chances you will get what you want out of the negotiation. The more private information you give them, the easier it will be for them to pursue you if you can?t work something out.

Putting it simply, if you have to go through the process of suing someone, would you spend your time going after someone that you had very little information on (don?t know their banking information, where they work or even if they are working, etc) or someone that you could easily follow-up on to get your money? So, control the information you provide, don?t give up personal information and remain polite but stick to the task at hand. The more in control you are, the more likely you will be successful.

Tape the call if you can -

State laws vary for taping a phone conversation. Most of the States require ?one party? consent, meaning you. Other states require ?two party? consent, meaning that you have to tell the collector that you are recording the call. If you want a safe bet, tell the debt collector that you are recording the call. If they continue to talk, they have given their consent. If they are offended or get pushy, simply tell them that you are very concerned about the account and you want to make sure that you don?t forget anything important. Who could argue with that? Someone that doesn?t want to get caught violating the FDCPA I would think?.Violating the FDCPA can come with some stiff penalties, not to mention you may be able to sue them. Heck, you may end up having them owe you money. No joke. I?ve seen it happen may times.

Get proof of payment/settlement agreements in writing, before you make a payment -

If you are lucky enough to negotiate a full settlement of the debt by the debt collector taking less that the full amount owed, get the agreement in writing before you make the payment. If you and the collector agree to make smaller monthly payments towards your obligation, get it in writing. No matter what the deal is, get it in writing. Sorry, did I mention that you need to get your deal in writing before you make any payments?

If you are settling your debt in full by making a payment, send the payment out, along with a copy of the settlement letter, by certified mail. This way you will have a receipt. If you are paying by check, make sure to write on the check that ?Cashing this check constitutes payment in full.?

Negotiate at the end of the month ?

Remember, debt collectors feed their families by collecting money from you and they are usually paid on commission. So, negotiating at the end of the month may get you a better deal than at the beginning of the month.

While you are at it, repair your credit ?

While you are negotiating with the debt collector, have them agree to remove any negative information that they may have reported to the Credit Bureaus (Trans Union, Equifax and Experian). They may have reported the late payments or charge offs, all of which will effect your FICO score and the ability to obtain future credit with favorable interest rates. At the very least, have them agree to report that the debt was paid in full as opposed to settled. Remember, get it in writing and if at all possible, get it written up as part of the settlement agreement with them.

Don?t be rushed -

Most debt collectors are pushy people. They need their commission checks. They will say the ?offer is only good for today? or ?we need the payment overnight?. Do not send them any payment until you have an agreement in writing. You need to have the agreement in writing to protect yourself. Tell them great, if you can get me the agreement today, I can make sure we get this resolved. Put the onus on them to perform what you need in order for them to get what they need.

Get professional help -

Negotiating with a creditor can be a daunting and intimidating task. The saying ?what you don?t know, can?t hurt you? does not apply here. Actually, what you don?t know can really hurt you and could cost you a lot of money, time and aggravation.

You are going up against a trained professional and let?s face it, you?re not. Fortunately for you, there are companies out there that are and that will work for you to get you the best possible deal. These companies not only understand the process but, they have the ability to combine your account with hundreds of other individual accounts, resulting in very big settlement offers with the creditors.

If you owed MBNA $6,000 and you were negotiating with them for a settlement, they may look at taking 80%. What do you have to negotiate with? You think that the $6,000 is going to hurt them? Not individually and not likely. However, what if MBNA was presented with a combined total of $750,000 that is owed? They could literally settle 125 accounts all at once. This saves them time and money. No more letters, phone calls, law suits for each individual account, etc. They get to clear off all of those accounts and put their collection army elsewhere. Most often than not, it makes more sense to have someone else negotiate on your behalf.

A good Debt Settlement company also tracks current trends in the industry and knows if any creditors are in need of cash or are offering specials. So you understand a little bit more about the process, within the credit industry, there will on occasion be special offers. For example a creditor may normally settle debts owed to them for .50 cents to the dollar. However, they may have had a weak quarter and in order to boost up revenue/prevent additional charge offs, etc., they will grant settlement offers for .33 cents on the dollar. You won’t know about it, but your negotiator probably will. In addition, most established Debt Settlement companies already have established settlement amounts with creditors based upon the volume of their client base.

If you decide to go this route, make sure the company you select is in good standing with the Better Business Bureau and a participating member of The Association of Settlement Companies (TASC). For more information log onto www.tasksite.org.

To learn about your financial options and managing you debt, log onto www.debtreliefoptions.com.

Jon Noble
Staff writer
Debt Relief Options
asktheexperts@debtreliefoptions.com

The best way to keep your credit rating high is to spend within your means and to pay off your bills promptly. But if your credit rating has taken a little dip, there are ways to bring it back up again.

Keep up with those bills

A lot of people don?t realize that the check that goes to a billing company needs to be in their hands by the due date and that anything that arrives later is considered late. When you make late payments, the company can then report this to a credit reporting agency and your credit rating can plummet. It?s best to send in your bill well before it is due to avoid any problems or convert to online bill paying so that you never have to find a stamp.

Lower those balances

While credit card debt is bad to begin with, there is some that is worse than others. The general rule of thumb is to keep credit card balances lower than 50% of your total limit on the card. This shows that you can use credit cards wisely.

If your credit cards are higher than that, you will want to start making a plan to get those balances lower. And that starts with paying more than the minimum balance on your credit card each month. Try to pay as much as you possibly can on the higher interest rate cards so that you don?t have a cycle of debt that never ends.

Keep your cards

While it might sound as though you should throw away your credit cards, this isn?t necessarily true. Without any credit history, you can?t have a credit rating. So what you need to do is start building a credit history that shows you are responsible. Only charge small amounts on your credit card and pay them back immediately each month.

The longer you have credit cards is better for your credit rating. It shows that the company has faith in you and has a good relationship with you.

Look over that credit report

The point of being able to get your credit report once a month is to allow you to see where there might be fraudulent accounts in your name, ruining your credit. You might want to make sure that any errors are corrected immediately and get that credit rating back up. Even if it takes time, you can always explain the problem to a lender when they inquire?but only if you take the time to find out why your rating is low.

Beth Derkowitz recommends Find Credit Cards for finding a Morgan Stanley credit card application.