Credit Card ’s Talk

Your credit is bad. Perhaps you have a string of unpaid bills haunting your past. Maybe you declared bankruptcy within the past 10 years, or defaulted on a student loan.

All of the above can block your access to obtaining a major credit card, such as VISA or Mastercard.

But bad credit is not the only reason you can be denied a major credit card. Some people simply have never used credit. People who like to pay cash only, have never financed a car, taken out a college loan, or a mortgage may have zero experience with credit. In that case, most card companies will reject your application, not because you have bad credit — but because you have no credit rating.

Many women who marry young and do all their borrowing under their husband’s name often find themselves with no credit rating after they are widowed or divorced. Thousands of women have been denied loans and credit cards on that basis.

Still other people carry too much debt to be considered a good risk. If you have a car loan, a student loan, a mortgage, two or three — out cards, you are unlikely to be granted another credit card.

But in any and all of the above cases, you can still obtain a credit card. No matter how bad your credit, and even if you have declared bankruptcy, you can still be granted a VISA or Mastercard with a limit as high as $5,000, if you know the right company to call, and how to make your application.

We are going to reveal these card companies and the methods by which you can obtain a VISA or Mastercard later in this report, but first, let’s talk about some of the other things you really should know about credit cards, including annual fees, interest rates, credit reports and more.

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Your Credit Rating
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How do credit card companies decide if you are a good credit risk or a bad credit risk? Well, it’s sort of a Big Brother thing. There are several large agencies in America which track the borrowing and buying behavior of just about every single American who has borrowed money at one time or another.

The four major credit rating agencies are:

CSC Credit Service :: (Phone: 800-392-7816)
TRW Information Sys. :: (Phone: 800-392-1122)
Equifax :: (Phone: 800-685-1111)
Trans Union Corp. :: (Phone: 800-851-2674)

When you send in an application for a credit card, the card company contacts one of the above agencies, which pulls your file, if one exists, and let’s the company know if you have any bad debts in your background.

If you have never borrowed money or used credit of any kind, your name will not appear in the data base of any of the above. If you have, there will almost certainly be information about you. If you have ever defaulted on a bill, or walked away from a debt owed, that information will be available. If you have never defaulted on a loan, but have made frequent late payments, that is recorded, too, and goes against your credit rating.

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25 Percent Error Rate
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If this sounds a bit like Big Brother, most would agree with you that it is. It’s scary to think that some large anonymous corporation is keeping a file on you, but it’s true. Furthermore, they will share your file with any lending institution that wants to know something about you. That’s the price you pay to obtain credit. You’ve heard the statement, there ain’t no such thing as a free lunch.

When it comes to the game of credit, the lunch is definitely not free, neither in the monetary sense, or in the realm of personal freedom.

To top things off, credit agencies make errors in as many as one-fourth (25 percent) of all their reports. At this minute, false information about you may be ruining your credit rating.

To check your credit rating for errors, call the agencies at the numbers I provided above. They will request that you send them a written letter asking for a copy of your credit report. They will send you a copy of the information they have about you.

Now let’s look at how card companies make the big bucks — interest rates.

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Interest Rates
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A few decades ago there were laws against charging the kinds of interest rates credit cards get today. Exorbitantly high interest rates were called usury, and were forbidden by federal law. Just 30 years ago loaning money at 20 percent would have landed any banker in prison. Such rates were the territory of loan sharks and organized crime.

Today, however, it’s standard business. Some cards have rates approaching 21 percent. Some product manufacturers, such as Apple Computer, have credit plans that push a whopping 23 percent.

Most credit card companies attract customers with super low interest rates, sometimes as easy as 5 percent. But what they only tell you in the fine print, which few people bother to read, it that the interest rate jumps back up after six months. Many cards that start you out at 6 percent soon jump to 18 percent, or higher. By that time, most people have chalked up a balance and are stuck. Most people simply fail to notice when their rate increases. Credit card companies count on that. They like who take no interest in details. If you don’t watch them, they’ll watch you — and your wallet — and dip into it in the most insidious ways.

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No Annual Fee Cards
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Some credit card companies charge no annual fee for use of their card. Annual fees range from $18 to $55. You pay it every year simply for the privilege of using the card. Other companies charge no annual fee. You might think, then, that this is a better deal. Most often they are not. Cards with no annual fee almost always have a higher interest rate. If you leave a monthly balance, you’ll always pay more than the annual fee in interest charges. Only if you never leave an unpaid monthly balance can you benefit form a card with no annual fee.

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Perks and Freebies
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One of those insidious ways is the offer such perks as frequent flier miles or annual rebates. Use the card so often, and get X amount of frequent flier miles. Use your card, and get credit toward the purchase of an automobile. Is this a good deal? Hardly ever. As you might have guessed, the offer of rebates and gifts is simply an inducement for you to pay super high interest rates. Unless you are a big spender and travel a lot, you’ll rarely benefit from this kind of promotion.

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Be Choosy
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In short, never sign up for a credit card until you compare rates. Shop around. Credit card companies are just as competitive as any other kind of business. That means interest rates that vary widely. In general, never go for a card that is five percent higher than the current prime rate.

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How To Get A Lower Rate
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What if you are already on the hook with a major credit card with an agonizing rate of interest? Pick up the phone, call your card company, and get tough. Often, if you ask for a lower interest rate, you’ll get one — it’s as simple as that.

As further incentive, you can threaten to transfer your balance to another card company with a lower rate. Many card companies are more than willing to take you on as a customer by paying off one of their competitors for you. Of course, you are then beholden to them. That’s okay if you score a lower interest rate.

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How Anyone Can Get a Credit Card
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Now what about all of you hopeless cases out there. What if you have deplorable credit, or no credit rating at all. You may have already been turned down by a half-dozen card companies. What can you do?

First, you should think long and hard about why you want a credit card in the first place. If you have a history of bad credit, a credit card may be the last thing you need. Many people feel that credit cards and the debt they lead people into is a modern form of slavery.

Credit cards are almost magically deceptive and alluring. They get at the deepest psychological lever of the human mind — a lever which allows people to have the feeling they are getting something for free, when in fact, they are paying two, three, four, even ten times as much for that product because of the interest they will pay on each purchase.

On the other hand, not having a credit card is becoming less and less practical in modern America. You can’t rent a car without a credit card. Carrying cash is dangerous. Checks are not accepted everywhere — and traveling to another city or country is extremely difficult without the confidence and identity a credit card brings.

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A Secured Card
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If you decide you really need and want a credit card despite your past problems with credit, you should get what is called a secured credit card. Even people who have declared bankruptcy are granted secured cards.

A secured card works this way: you pay a lump sum of cash upfront either to your bank or the card company itself, usually from $200 to $2,500. The card company will then grant your credit for up to 150 percent of the amount of your deposit. If you pony up $500, you will be granted a $750 credit line. If you put up $1,000, you will get $1,500 in credit, and so on.

Your deposit money will earn a very nice 4 to 5 percent interest while it is held as collateral by your bank or the card company. The deposit money acts like a buffer for the lender. In the event you default on your card debt, the lender gets to keep your money. They may still incur a net loss, but the risk is far less.

Additionally, the interest you gain on your deposit will offset the interest on your monthly balance if you have one. If you get a secured card with an 18 percent interest rate, you can feel good about the fact that your pre-payment is earning 5 percent.

Which card companies offer secured credit card plans?

The following:
(At the time of writing, these details are correct. If they change by any chance, you’ll have to look up the institutions in the Yellow Pages, or simply do a search online.)

CitiBank — Minimum deposit is $300, which earns 4%.
Call: 800-933-2484

Federal Savings Bank — Minimum deposit is $250, which earn 2.5%.
Call 800-285-9090

Orchard Bank — Minimum deposit is $400, which pays 4%
Call 800-873-7307

Key Federal — Minimum deposit is $300, which earns from 4% to 5%.
Call 800-228-2230

Signet Bank — Minimum deposit is $200, which earns 5%.
Call 800-333-7116.

Using a secured credit card can also help repair your credit rating if you use it responsibly over a number of years.

Even if you do not have bad credit, a secured credit card is recommended for anyone who wants the safety and convenience of a credit card. Secured cards are a safe, responsible way to control your spending, and you actually earn money though interest on your deposit while you enjoy the use of your card.

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Copyright ? Andre Vas, Direct-Credit-Card.com, All Rights Reserved.

A Message To People Who Want To Apply For The Best Credit Card —
But Can’t Get Started, Don’t Know Where To Go, Or Simply Feel
Overwhelmed With The Insane Amount Of Credit Card Offers…

==> http://www.Direct-Credit-Card.com

Also go to link below to get TONS OF FREE money saving and personal
finance tips & tricks…

==> http://www.Direct-Credit-Card.com

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Most credit card companies provide purchase protection insurance for free, as an included benefit of owning their particular credit card. As competition among credit card companies is so fierce, creditors are attempting many different strategies in order to gain and retain loyal customers. Purchase protection insurance is one of the benefits a credit card company may offer that their leading competitor does not- in an effort to gain new customers and keep customers from going over to the other side.

It is difficult for creditors to retain customers when every other month it seems a new company is offering a 0% balance transfer option to new account holders. Customers have learned to play the credit card roulette game. When their promotional interest rates go up; they simply find a new card to transfer their balance to. If your credit card account is one that does not offer purchase protection insurance without charge as one of the included benefits, you should be able to pay an additional fee in order to obtain optional purchase protection coverage.

The actual terms and restrictions of coverage for purchase protection insurance will vary from one credit lending company to the next, however, most insurance will cover purchases made using the credit card against theft, loss, or accidental damage that occurs within a certain period of time. Typically, purchase protection will cover you for about 90 days from the date of purchase. In order for a purchase to be eligible for coverage, it may have to be worth a minimum amount of money, also. In order to fully understand your coverage, you need to read through your credit card?s terms and agreements for all of the specific details regarding the type of purchase protection coverage you are entitled to. It?s always a good idea to know your rights and coverage before you actually need to use them. If you have any questions about what you read, don?t hesitate to call the credit card company?s customer service line- that?s what they?re there for!

What does purchase protection insurance coverage do for the typical credit card user? For most people, it will never actually do anything! Many people are not even aware that purchase protection exists, and don?t know whether or not their own credit card offers the protection. For credit card users who are aware of the coverage and want to use it, it covers you in the event that you purchase an item using your credit card that becomes damaged on the way home or soon thereafter, becomes lost, or someone steals it. These are the typical eligibility requirements for purchase protection coverage, although once again, be sure to read your specific credit card company?s policy for the exact details of your coverage.

In most cases, the credit card company will refund the amount of the purchase (as shown on your store receipt or credit card statement) back onto your credit card account, although there is almost always a maximum limit to how much money can be refunded under the insurance. Most policies will also have strict exclusions for certain types of damages to items purchased, so a purchase protection insurance policy is not a perfect solution as not all instances of damaged items will be covered, but at least it is better than no coverage!

Purchase protection gives you peace of mind when you are making purchases online. While the majority of e-commerce sites are legitimate, there are a few that take your money and then don?t deliver the goods as stated on the site. In these situations, you may be able to call on your purchase protection insurance to assist you in getting a refund for the item.

This article has been provided courtesy of Creditor Web. Creditor Web offers great credit card articles available for reprint and other tools to help you search and compare credit cards.

Credit card late fees are a fact of life for some consumers, but they don?t have to be for you. Legally, credit card companies can hit you with pretty much whatever fees they want. On the other hand, you don?t have to pay them, but only if you avoid them in the first place. Here are five sure fire ways you can avoid costly credit card late fees:

1. Pay Before the Due Date. Of course, this makes the most sense. However, this is also the single most important reason why people get socked with fees: they receive their bill and immediately forget about it! When you get your bill, open it up and pay it promptly. Waiting means forgetting and forgetting about your credit card bill will cost you money.

2. Pay on the Internet. If you have access to a computer, then paying online is the best way to make certain that your payment gets to your credit card provider on time. Be careful, as there is still some lag time from when you authorize funds to be released from your checking account and when that payment is finally credited to your credit card account. The gap between the two can be as long as one week!

3. Schedule Automatic Payments. Some credit card providers allow for you to set up a scheduled deduction from your checking account which is then automatically sent to your credit card provider. You should set it up to take money out of your account well before the due date to ensure that your funds are received on time. You can always send in a separate, extra payment if you want to pay down your debt faster too.

4. Question a Late Payment. Even if the credit card company claims that your payment was late, it doesn’t mean that you must be charged a late fee. Contact the company and ask them to reverse their charge ?- which usually runs between $29 and $39 — and to expunge their records of your tardiness. You not only want to avoid any fees, you want to avoid their possible notification of your lateness to the three major credit report agencies [Experian, TransUnion, and Equifax. Any information supplied to the credit reporting agencies can work against you in the form of higher interest rates on current cards as well as on future loans!

5. Go with the Citi Simplicity Credit Card. Now, consumers have a new option to help them avoid late fees: Citi?s new Citi Simplicity card doesn?t charge late fees. Please click the link below for more information about this breakthrough card.

Taking the appropriate action can help you to avoid late fees and allow for you to keep more of your money in your pocket. Become better informed and start saving money today!

Copyright 2006 Ed Vegliante. Free online reprints of this article are allowed provided the resource box remains intact with a live link back to http://www.credit-card-surplus.com .

Ed Vegliante runs the website http://www.Credit-Card-Surplus.com, a well organized credit card directory enabling the consumer to compare and apply for a variety of credit card offers including the Citi Simplicity Credit Card. View more Credit Card Articles.

Credit cards do more than provide you with extra purchasing power. Actually, credit cards can do quite a bit to make your life easier. Credit cards add convenience to your life by helping you establish credit and simplify your bill payments. In fact, credit cards can even protect you in the event that you are a victim of theft! Finally, credit cards are excellent to have when you run into one of life’s many emergency situations!

If you are getting credit cards for the first time ever, one of the obvious benefits of owning such cards is that you will be able to establish a credit rating. Further, by establishing a good credit rating over time, you will later be able to make larger purchases with your well-earned credit, like automobiles and homes. Finally, a well-established credit rating can help you rent cars and apartments, and sometimes help you get employment that may require a credit check.

Alternatively, paying bills or even making purchases on the Internet require the use of a credit card. Unlike bank debit cards where you must have money in your checking account to pay your bills, credit cards allow you to pay your bills with your predetermined credit limit. Therefore, if you are a little short on cash during the month, you can still successfully make online billing transactions with the use of your credit cards.

Did you know that credit cards can help you afford the larger purchases that you might not necessarily expect? Perhaps you are a college student and you need to purchase your books for your upcoming semester. Imagine going to the book store and finding out that your book bill is far more than you had planned for. Nevertheless, you require the texts for the upcoming classes you are enrolled in. With a credit card, you can successfully pay for your books all at once and pay off the balance later in the month or in several monthly increments.

Did you know that having a credit card can actually save you money? For example, if you were supplied with a credit card with a $500.00 limit and you made $500.00 worth of purchases, as long as you paid off the entire bill before interest is applied, you have basically afforded yourself an interest free loan! Conversely, if you borrow money from a bank, interest is applied immediately and you are required to pay the interest first, then the principle.

Another benefit derived from having credit cards is that you can carry less cash with you. Thus, if you are ever the victim of theft, you will not lose as much cash as an individual that does not carry credit cards. What’s more, if your credit cards are stolen, unlike cash, you can immediately place a call to the issuing company of your cards and have them issue new ones.

Finally, credit cards can keep you prepared for life’s little emergencies. Imagine that you are on your way home from vacationing out-of-state. While driving home your car breaks down and you have to call a tow truck to have it brought to the nearest garage and repaired. Now imagine not having enough cash to have a tow truck come and retrieve your car; what would you do? By having one or more credit cards handy, you can make your life easier because you will be prepared for anything, including the tow truck fees!

In short, the many benefits derived from owning credit cards only make your life easier. Credit cards can give you the extra buying power that you require and can help you establish a credit rating that will increase your buying power in the future. Further, credit cards can help you take a proactive role in protecting your money by allowing you to have less cash-on-hand. Finally, credit cards can help you afford unexpected expenditures with relative ease and thereby give you peace of mind!

Ed Vegliante is the owner of http://www.credit-card-surplus.com , a well organized credit card directory enabling the user to compare and apply for a variety of credit credit card offers. Find links to secure online credit card applications.

Everyone needs credit these days and credit cards have become a part and parcel of everyone’s life. But man has woven a credit card debt trap around itself. To avoid this debt trap low rate credit cards have been introduced. A low rate credit card is usually for those who hold a good credit history and have considerable repayment capacity. For example the student credit card is generally not a low rate credit card. The travel cards issued by some of the reputed merchants like British Airways, NorthWest Airlines etc are cards that attract high interest charges.

If someone carries a large balance on a high interest credit card then transferring the balance to a low rate credit card can save some honest money. Low rate credit card ensures paying off large outstanding on numerous cards at an attractive low interest rates. Some cards offer 0% APR on balance transfer and cash advances from six months to twelve months.

The rates involved in calculating the finance charges are usually the interest rates. Other charges include the late payment fee, over limit fee, rates applicable after the introductory period, etc. For those who carry a large balance on their cards opting for a low rate credit card can save thousands of dollars. A low rate credit card also offers several other benefits like 5% cash back reward on select purchases from outlets like grocery stores, supermarkets or gas stations and 1% cash back reward on purchases from other outlets.

Citi? Diamond Preferred? Rewards Card, Citi? Dividend Platinum Select? Card, Chase Flexible Rewards? Platinum Visa? Card, Citi? Premier Pass Card, Chase Cash Plus? Rewards Visa, Free Cash Rewards Platinum Visa? Card, etc are some of the credit cards that fall in a low rate credit card category.

A low rate credit card does not have any annual fee which is another form of cutting overhead costs on any credit card debt. Many of these cards offer up to 1000 bonus points on first purchase. There after one bonus point is awarded to the card holder for every one dollar spent. Some of these cards also offer checks or gift certificates from participating merchants when specified amount of bonus points are accumulated. For example Free Cash Reward Platinum Visa Card offers a $25 check or an equivalent gift certificate from many leading national merchants after accumulation of 2500 points.

Usually it is wise to pay off a high interest rate card with a low rate credit card. But one should watch out for the traps of high transfer fees and short promotional low-term rates. One should read the fine print. Usually the fine print on any low rate credit card states that if the card holder default the payment or makes any consecutive late payments then the existing interest rates dissolve and the usual high interest rates prevalent in the market are applicable. Finally, the card holder should avoid maxing out a new low rate credit card, as this can cause the card holder’s credit score to dip.

Peter Sissons, Retired Bank Manager and Unsecured Credit Cards advisor - focusing on Bad Credit Credit Cards and Business Credit Cards

Cash back credit cards seem like magic to those who use them. Who would have ever thought that you could actually be paid to shop? Cash back credit card programs work that simply; a percentage of every purchase you make is set aside for you as points. When you reach enough points from your purchases, you can pull that cash out of the fund. That cash can then be applied directly to your cash back credit card balance, or you can request it in the form of a check. The best cash back credit cards will offer up to 3% cash back, but 1% or less is most common.

How it Works

It is easy to believe that cash back credit card companies have hired the wrong person to do their math. It’s anti-intuitive to think that a credit card company that lends you money will give you even more money the more you shop! In actuality, cash back credit cards benefit the credit card company as much, if not more, than the consumers who use them. The reason cash back credit cards work so well is that they build strong customer loyalty. When a customer knows that he has the potential to gain a significant amount of cash back from his purchases, he will be more inclined to use a particular credit card for all of his shopping needs. What’s more, will likely stick with the same credit card company over a long period of time so that he actually gains points. The more money you spend on your credit card over a longer period of time means the cash back credit card company will reap the benefit of your interest month after month. Thus, in reality, the cash that you receive back from your purchases may equal out to the interest that you have been paying over a given period of time.

What to Expect

The best cash back credit cards will offer you up to 3% of the total of your purchases, but most programs offer 1%. Look out! The higher percentage of return may also mean that you are receiving a higher interest rate. You may also be locked into a long-term plan with the credit card company if the benefits look too good to be true. Therefore, when you enroll in a cash back credit card program, make sure that you have taken the time to research how many dollars you have to spend in order to start receiving cash back.

Where to Find a Cash Back Card

Nearly every credit card company will offer some sort of cash back option. If you are with a credit card company now and are not sure whether they offer a cash back credit card, simply ask! There may be incentives that you are not even aware of.

Cash back credit cards help to relieve some of the guilt suffered by shoppers. When you know that a percentage of every dollar you spend could be returned to you, you may actually even feel motivated to shop more. Cash back credit card companies benefit from knowing that shoppers do feel guilty about making large purchases. But, if shoppers know that they could be rewarded for the large purchase (even if the reward is only a few dollars), they can rest easy. Again, the best cash back credit cards will offer about 3%, but may come with heavy restrictions. Take the time to do ample research into what cash back credit card programs are currently available to you.

For more on advice how a cash back credit card works, Robert Alan recommends that you visit CreditCardAssist.com.