Credit Card ’s Talk

?Simply fill out these checks to pay off your loans, bills and other higher-rate credit card accounts. Or use them to improve your home, take a dream vacation, or …?

Peaks your interest, doesn?t it?

Odds are you?ve received credit card offers that read much like this. (You might just find one in the mail today.) Lately it seems as if credit card companies are tripping over each other to give you the best rates on credit cards and balance transfer offers. What gives?

The key word in these offers is ?introductory.? Banks offer you a great rate for new purchases and/or balance transfers for a few months, then move that rate back up hoping you?ll let your debt ride with the higher rate.

Trash or Treasure?

If you?re like many you throw offers like these in the junk mail pile. Scott Bilker, author of Talk Your Way Out of Credit Card Debt and founder of DebtSmart.com, says this might be a mistake.

?People don?t want to be bothered with transferring their balances, but if it takes you 10 hours over the course of a year to save $1,000 by doing transfers, that?s $100-per-hour for your time.?

If you carry a lot of debt, it just makes sense to try to find a way to lessen your finance charges.

Curtis Arnold, Founder and Public Relations Director of CardRatings.com, agrees. ?Transferring balances from one card to another to take advantage of low introductory rates can result in significant interest savings, as does financing purchases with low introductory purchase rates? there are currently several balance transfer offers available touting a 0% interest for one year.?

A Few Pointers to Success

So great! You?ll take that offer and save money by paying lower interest on your debt. What could possibly go wrong?

Well, if you don?t proceed with caution and a little wisdom, you could wind up paying more in interest charges than you bargained for.

It takes a little work, but with some organization you can make introductory offers work for you instead of letting the credit card companies reap all the benefits. A few tips on making the best of these offers.

1. Don?t Skip the Fine Print. Marketing departments make it their business to make the most enticing details of an offer jump out at you ? distracting your attention away from less attractive parts of the offer that are usually listed in the fine print. Educate yourself about all the terms before signing on. If the fine print seems too daunting to comb through, give the bank a call and ask about the terms.

What should you look for? We?re talking about offers that have low-interest introductory periods. Find out what the introductory rate is, how long it lasts, if the rate increases after the intro period and if so, what is it? Is there a fee for a balance transfer?

Find out if new purchases have a different rate than the balance transfer ? they often do. If so, you shouldn?t use that card for new purchases, as your payments will apply first to the lower interest debt. This leaves debt at the higher rate to accumulate more finance charges, reducing your potential savings.

Sometimes these offers require you to make one or two purchases each month, but there is usually no minimum purchase amount so you can still make the offer work in your favor by buying very low priced items ? like a pack of gum.

2. Do the Math. ?To make the most of your money, you have to do the math,? says Bilker. ?A six-month rate of 3.99% with a balance transfer fee of 4% (no ceiling) is really 11.99% (3.99 (2 x 4))! In this case, you?ll want to use the offer to transfer balances with rates that are greater than 11.99%.?

Place any fees and charges into your equation. There are many credit calculators available online to help you with the math. If the numbers show that you won?t benefit (save much money), than it?s probably not worth the effort.

3. Comparison Shop. When you get an offer in the mail, write down the fee and rate information and then go shopping. Says Bilker, ?There are many banks that want your business and are willing to give you good rates and terms. You just need to start looking for these credit options.?

Many introductory offers are only made by mail, so don?t be so quick to trash those envelopes that are obviously credit card offers. There are some gems; including offers that have no expiration date?meaning that the offer remains in effect until you pay the balance in full.

A note about balance transfer fees: Paying a nominal fee for a balance transfer may be a good financial decision if it will result in interest savings, however, try to avoid fees if possible. If you?re considering an offer with fees, sometimes the bank will eliminate or reduce the fees if you call and ask. If not, refer to Tip #2 and make sure that the math works in your favor.

4. Track your Money. Be aware of your money output. Bilker says consumers make a ?major mistake by not tracking when a low-rate offer ends, and letting their debt ride to a higher interest rate.? Know which cards hold which rates, and when dealing with introductory offers, mark your calendar with the offer beginning and ending dates. Then you can guard against a higher interest rate by either paying off your debt before the intro period ends or by transferring the balance again.

Which leads to a good question: how does all this balance transferring affect your credit rating? Viewpoints on this vary from ?risky? because of all the open credit accounts, to ?it really doesn?t.? The general consensus among many experts, though, is that taking advantage of balance transfer offers will not adversely affect your credit rating as long as you do not do so excessively. In fact, Scott Bilker maintains that balance transferring can actually help your credit rating!

And last, but certainly the most important:

5. NEVER make a late payment. Never! Not only will this affect your overall credit history, but one late payment can raise your low-interest rate to exorbitant levels?before the introductory period ends! (By the way, that little detail was included in the fine print that you should have read when you signed up for the card. Remember Rule #1?)

So don?t be afraid to give low-interest rate offers a second look. Just remember that it takes some organization and discipline to reap the greatest benefits.

Please visit our Card Reports section to review our current ratings of various balance transfer credit card offers.

Rebecca Lindsey is a Senior Staff Writer for CardRatings.com. She began writing articles about consumer credit issues for CardRatings.com in September 2000. Her articles have been republished and/or referenced by leading publications throughout the country, including Live Well on Less Than You Think: The New York Times Guide to Achieving Your Financial Freedom by Fred Brock.

Credit cards can be a useful tool in defining spending habits. When used properly the cards can provide a low cost way of accounting for regular purchases. However, there are times when credit spending can exceed our ability to repay in a timely manner. When this scenario occurs, it may be time to look into low interest rate credit cards.

Why Low Interest Rate Credit Cards?

If you find yourself in a position of paying only the minimum monthly payment then it may make sense to pursue a lower interest rate credit card. By investigating the use of a low interest credit card or cheap credit cards that are comparatively less expensive, you may find that your payment each month will accelerate debt retirement.

A Comparison

If you have excellent credit you might consider the Citi? Platinum Select? Card that features no annual fee and a 12 month 0% APR on both balance transfers as well as new purchases. By having a card that also offers 0% interest on new purchases, you will experience a greater overall savings during your first year as cardholder. The APR is adjusted to a regular ongoing APR after the first year but will not charge you an annual fee. This card does not provide a rewards program, as it is specifically designed for credit management.

If you?d like to combine the benefits of a low APR with a rewards program, you might consider the Citi? Diamond Preferred? Rewards Card. Like the first example, this card provides a 0% APR for 12 months on both balance transfers as well as new purchases. When the card is used for the first time, 5,000 bonus points will be credited to the account and a $50 gift card is made available to the cardholder. Bonus points are awarded for all purchases, but are accelerated for purchases made in drug stores, super markets, and gas stations. There is no annual fee for this card and the interest rate after the first year is very competitive.

The Selection Process

The good news is in the variety of choice in low interest rate credit cards. The cards provide flexibility in both use and attractive rates. A simple online comparison will assist cardholders in making the right choice for your lifestyle. For some it will remain very important to keep the lowest rates without regard to a rewards program while others will prefer the opportunity to gain the added benefits that a rewards program can offer.

Some of the best low interest credit cards will provide a 0% interest rate for 12 months for both balance transfers and new purchases. This type of card remains a positive choice for consumers who carry several hundred to several thousand dollars in credit card consumer debt. Please be aware that most of the available offers for low interest also require good to excellent credit ratings.

For more information on what to watch for in low interest rate credit cards, Robert Alan recommends that you visit CreditCardAssist.com

A mileage card can be both a bane and a boon. If you?re someone who pays off the balance well in time, then a mileage card can well be your friend, but if you?re not a big spender and don?t have the financial resources to incur the finance charges created by not paying off your card balance, a mileage card can be quite a financial foe.

A mileage credit card is an asset to any dedicated flyer, if used correctly, no doubt. But the catch remains in the phrase ?if used correctly.? Just because you are earning extra miles for charges on your mileage cards does not necessarily mean you have the upper hand in this game. If you don?t look closely, it just might be a more expensive proposition than you first anticipated.

What Is So Different About A Mileage Card?

A mileage card is one amongst the bewildering array of ways to earn, and spend, credit card rewards that savvy consumers are being offered these days. A mileage card will convert miles earned for purchases into hotel stays or restaurant meals. A mileage card also enables you to use these miles where you stay, and then earn extra miles yet again.

The Pros of Mileage Cards

What?s a bigger plus to the spender than earning a travel dividend for money that has to be spent on purchases anyway? Did you know that business travelers get double miles if they charge their tickets with mileage cards? It does sound too good to overlook!

Especially when you have acknowledged that the priciest part of any major trip is airfare, you simply cannot ignore the thought of your routine toothpaste purchase bringing you closer to that African Safari that you?ve always dreamt of going on. Your mileage cards might just bring you a little closer to that dream.

Mileage Credit Card?It Can?t Be All Good!

1) If you cannot afford to pay off the card balance every month then a mileage credit card is definitely not your best bet. The exorbitant rate of interest you would incur on your card balance would do nothing less than mortify you. Of all the major mileage cards, the lowest ongoing APR for mileage credit cards is around 17% and above.

2) Heard of blackout dates yet? If not, then you definitely aren?t the informed mileage credit card owner that you thought you were. Blackout dates (which happen to be prevalent) typically fall on major holidays and are off-limits for redemption through your accumulated mileage.

3) Forget about splurging on a new extravagance on your mileage credit card to get 20,000 ? 30,000 miles. There is a cap on many of the current mileage credit card offers, which does not allow you to accumulate more miles and reward points in a given period of time.

4) Since there is a time limit attached with most offers, make sure that you shop the expiration dates for accumulated mileage on your mileage credit card. A mileage credit card deal would really be futile if the miles begin to drop away just as you draw near to a free ticket.

5) The biggest drawback of mileage cards is the membership or annual fees. If the membership fees that you will have to pay exceed the potential rewards, then it?s not worth the effort or your time to use the mileage credit card.

?And Finally

While entering the realm of mileage credit cards with the knowledge of what can go wrong, this should not to deter you from researching the various card offers and applying for a mileage card, if it is appropriate for your particular circumstances. There are many benefits attached to mileage credit cards so well, just make sure that you do your homework before applying!

For more information on finding great mileage card offers, Robert Alan recommends that you visit CreditCardAssist.com

If you have been plagued with credit problems in the past, I would like to welcome you to your future! The first step in the process to rebuild credit is to get a new credit card. While many people will debate the best type of credit card such as secured or unsecured, I would argue that the type does not matter! What matters most is getting something and using it effectively!

The old school idea on credit was to get a card, make a large purchase and pay for it over time with no late payments. Today, that rule has changed! While making payments on time is VERY important, making the large purchase is the wrong thing to do! The way credit scores are made up, large revolving accounts (like credit cards) with high balances actually hurt your score. They figure that if your card is nearly maxed out, so is your budget and one emergency such as a flat tire could make you late on other payments.

The trick to maximizing your credit score is to use your credit card as a tool. No matter what your credit limit is, keep the charges to 20% or less of the limit. In other words, if your credit limit is $500, charge no more than $100 to the account. The most effective program is this….

When you get your bill each month, pay off the complete balance. Then each month simply make a small charge, like a tank of gas, gym membership or something else you normally would do anyway. Don’t use the card for dinners or special sales… only small charges ($30-40). Then again, as your bill arrives each month, pay off the balance. Each time your bill is sent out, the balance is reported to the credit bureaus. So you will always show a $30-40 balance, recent activity, and no late payments. You won’t even pay interest on your charges since they are paid off each month! But the activity and low balances will kick your credit score into overdrive in a short period of time!

If you use credit as a tool and not as a gift card, you will be able to get the best deals on everything you need. It just takes balance and determination.

Best of luck!

Ed Nailor is works in the financial and credit fields. For new credit cards designed to rebuild credit, visit http://www.BestNewCreditCards.com/poor-credit-cards.htm (the most current credit card offers online.) For more credit tips, visit http://www.BestNewCreditCards.com/free-articles.htm

It’s a fact that the credit card issuers are predisposed towards those with excellent credit. But let’s face it, not everyone has superior credit. There are times when life has thrown in a few punches that can cause financial hardship that in turn damages your credit. If you’re presently in this position, don’t fret, there are bad credit credit card offers available.

No credit rating at all or a bad mark on your report will not necessarily stop you from obtaining a credit card. There are many companies that will issue you a credit card when you have bad credit. Your options aren’t as great as those with superior credit, but there are a number of choices you can look at.

The first type of bad credit credit card available is the prepaid debit card or secured credit card. This is where you make a deposit at the financial institution and your line of credit is determined by the amount available in your account. The prepaid debit card looks and can be used like a regular credit card. When you apply for a secured credit card there is no credit check and no employer verification.

When you apply for an unsecured bad credit credit card, the terms and conditions should be looked at carefully. The monthly interest rate is generally higher than regular credit cards. Most offers have annual fees starting at $35 and up.

An additional option available for unsecured bad credit credit cards is a periodic increase in your line of credit. Check with the financial institution to be sure they report your progress with the major credit reporting agencies.

The interest rate is higher on an unsecured bad credit credit card than cards for those with a higher credit rating. You may want to only charge what you know you can repay each month. To assist in rebuilding your credit, you would want to occasionally leave a small portion open and repay it the next month.

A credit card is an excellent way to rebuild your credit. But be cautious that you don’t get back into financial difficulty again. Make sure you follow the terms and conditions of the card.

It?s not difficult to be approved for a bad credit credit card. Just be sure to use the tools available to you, like the internet, to compare offers so that you can apply for the right card for you.

About the Author: Bradley Carson is the webmaster and editor of Apply Online For A Credit Card at http://www.cards-king.com, a website established to provide concise information about credit cards. See Brad’s latest recommendations of Bad Credit Credit Cards at http://www.cards-king.com/categories/badcreditcreditcards

Why is there a need for you to get a credit card?

Are your earnings not enough for making important purchases and meeting your primary needs, such as food or clothing?

Are you tired of carrying cash every time you want to buy something?

Do you want to keep track of your purchases and managing your investments wisely?

Or you just want to earn while you spend?

Among the aforementioned reasons, probably the last one will make up your mind whether you need to get a credit card or not. You can use credit cards on purchasing things that your cash cannot handle anymore or managing all your purchases wisely. But earning money while using credit cards for your purchases? It is just what you are looking for.

If you are an individual who expects something in return out of using your credit cards, then applying for a cashback credit card is ideal for you.

Cashback credit cards are relatively different from standard credit cards in terms of derived benefits. As the name implies, cashback credit cards allows you to earn rewards in the form of cash back on every purchase that you will make. In most cases, credit card companies that issues cashback cards provide approximately 5 percent worth of cashback on particular purchases made on pharmacies, gas stations, and supermarkets. In addition, these companies give out 1 percent worth of cashback on all other purchases. Thus, if you will use this type of credit cards frequently, you will be able to accumulate substantial amounts of cash rewards.

Another benefit that you will derive from using cashback credit cards is higher accumulated savings. Since you are saving 1 to 5 percent on most of your purchases using your cashback credit cards, you will find yourself saving substantial amounts of money. For instance, if you tend to spend around $2,000 worth of purchases on supermarkets, $400 at pharmacies, and $600 at gas stations within a period of 3 months, you spend $3,000.

If your cashback percentage reward is set at 5 percent, you will be able to save $150 for every $3,000 you spend with your cashback credit card. If you will project it over a year’s time, you will be able to save some $600 out of most of your purchases. You can now set aside this $600 that you can use on emergency purposes.

There are several ways to apply for a cashback card. You may search for online credit card companies and fill out online application forms. You may also call the company and have a representative explain to you the details about the application process. Both of these two methods will require you to hand out some personal information such as your social security number. Credit card companies will use this to run a credit check to you and determine if you are qualified to get a cashback credit card.

Before you apply for a cashback credit card, make sure that you have done some research on the credit card company that offers the best APR (annual percentage rate) and cashback percentage rewards. Check if they require annual fees and what are their credit limits on every account.

It feels good whenever you expect something in return when using your cashback credit cards. If you want cash rewards and substantial amounts of savings, apply for a cashback credit card and you will not regret it.

Aaron Ballantyne is the owner of a credit card website with links where you can apply for a credit card which best suits your needs.