Credit Creators » Good Credit

Tips to Avoid The Dangers of 0% Interest Credit Cards

admin — Thu, 12 Nov 2009 18:39:03 +0000

There are lots of credit card companies offering 0% interest. Zero percent cards are very lucrative nowadays and people think it as a very good deal. It is, indeed. But you should take time to think things over and know everything about the offer before signing up the contract.

Never forget to weigh things before making a decision because if you will choose in a hurry, you might get yourself in a whole lot of trouble in the end. Ask around or do research from the internet to find the right card.

How to Avoid Paying High Fees With Your Credit Card

admin — Fri, 03 Jul 2009 03:02:07 +0000

Those who suffer from low credit scores often have lesser choices when it comes to credit cards since the best credit card deals are usually reserved for customers with good credit. Nevertheless, even if you’re only option is a bad credit credit card, you should not put up with unfair rates and fees. This article talks about tips on finding bad credit credit cards with reasonable costs.

Build Credit with Bad Credit Cards

Rebuilding bad credit doesn’t need to be an impossible feat. In fact, by applying for a bad credit credit card, a person with poor credit rating can work on improving his/her credit status one step at a time.

The most important step is to find a secured credit card that regularly reports payments to the major credit bureaus. See to it that this card has reasonable terms and conditions. Use the credit card regularly on important purchases and be consistent with submitting your payments.

The ideal credit card for bad credit must offer instant upgrade for its customers. The option to upgrade your secured account to a non-secured account will enable you to enjoy lower APR, higher credit limits, and more privileges. As soon as you’ve improved your score, request your secured credit card issuer for an upgrade.

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Avoid the High Fees

Credit cards for bad credit are expected to have higher interest rates than cards that require excellent credit history. However, this doesn’t mean consumers should settle for a card that doesn’t give fair privileges. Even if you suffer from poor credit status, you still deserve to be treated fairly particularly when it comes to imposing charges.

Shopping around can be easily done through the internet. Check out forums that discuss potential cards for bad credit. Read online reviews so you’ll know which secured credit cards in the market are worth considering. Once you have your picks, spend a little more time analyzing your choices.

It is also worth mentioning that secured credit cards usually carry annual fees. If this is the case, you’ll want to make sure that the yearly fee is within the reasonable range. Other costs that you need to closely examine are the over-the-limit and late penalty fees, transaction costs, cash advance APR, etc.

Ultimately, avoiding additional credit card fees would depend on how you manage your debts. If you’re going to charge monthly purchases to your card, you need to make sure that you can pay off your entire balance in full each month. Instead of paying for the additional APR, you can save this cost and use the money for more a valuable cause.

Allison May is a credit consultant and a writer for Credit Creators. The resource provides consumers with valuable advice and information on credit cards for bad credit,credit cards for good credit and other credit-related issues. Its main objective is to help people build good credit. Copyright © 2008

Looking for the Best Low APR Credit Card Deal

admin — Tue, 30 Jun 2009 04:09:10 +0000

To attract more cardholders, many credit card companies introduce their own version of low interest rate credit card. Of course, who doesn’t want to enjoy a low interest rate? Nevertheless, a low APR doesn’t always mean you’re getting a good deal. Let’s consider some important points about credit cards with low APR offer.

Some of the Best Low Interest Credit Card Offers

If you do your search, there are credit cards with low introductory rate offers that last for 6 months to 12 months. Aside from a low introductory APR and a lengthy introductory period, the best cards usually comes with no annual fees, low penalty fees, and higher credit limit. There are rewards credit cards that offers a low introductory APR from time to time and these the ones to take advantage of.

Using Your Low Interest Credit Card Wisely

What should you look for in a low APR credit card? Don’t forget to check the length of the grace period that the card offers. It’s good to get a card with at least 25 to 30 days grace period since this gives you ample time to pay off your balances without getting charged with the interest rate.

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It’s important to remember that some low APR cards may not give a sufficient grace period. Add to this, even with a low interest rate, you should have the option to pay off your original balance without additional interest if you can pay it back on time.

Many card holders prefer to carry over a balance from one billing cycle to the next. However, such a habit means paying the extra APR cost every time. Take advantage of the grace period that you are provided by submitting your full payment on or before your due date. By not paying the extra interest cost, you can save as much as 8% to 19% from the total amount of your purchases.

Keep in mind that the 0% APR is just a temporary offer. Sooner or later, you’ll be charged with the regular interest rate. For this reason, it’s important to get to know how much the regular APR is once the introductory period ends. Make sure that the regular APR would remain at a reasonable range.

Last but not the least, use your credit card with discretion. Avoid using your credit limit to the full as doing so can badly affect your credit rating. Despite the privilege of a low interest rate, make sure that the expenses you charge to your card are well-worth it. To avoid penalties, see to it that you will be able to pay off those charges before your deadline.

Pay Your Credit Card Bills On Time and Save Yourself from Trouble

admin — Tue, 23 Jun 2009 10:32:16 +0000

Do you own a credit card? If yes, do you make it a habit to pay off your charges on time? Did you know that timely payment can save you from all the trouble that bad debt can bring? In this article, let’s discuss the causes why people are often trapped in credit card debt and you can stay away from the risk of bad debt.

Don’t Put Yourself At Risk

The longer you put off your credit card balances, the greater risk you’re in. Most credit cards carry interest rates that range from 10% to 20%. Credit cards with rewards usually carry higher rates than non-rewards cards.

Surprisingly, many cardholders do not realize that carrying over a balance from month to month costs them more than their actual purchases. Add the late penalty cost to your interest rate and your bill will surely be higher than it’s supposed to be. Yes, if you are a credit card holder, strictly submitting your payments on time can save you from the risk of bad debt.

What about submitting the minimum due on your card?

Even if your credit card offers the lowest minimum due payment, it doesn’t mean you’ve found a good deal. Submitting only your minimum payment each month doesn’t exempt you from your payment obligations. Remember, when you carry a balance in your account, you automatically incur the interest rate charge. This is how credit card issuers make huge profit from their cardholders.

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Do you own a reward credit card?

If you are a reward credit card owner, take note that you can get disqualified from redeeming your rewards if you keep missing your due date of payment. Credit cards with rewards usually have very strict rules particularly when it comes to timely submission of payment.

Add to this, let’s not forget that reward credit cards carry higher interest rates than their non-rewards counterparts. The best way to benefit from a credit card with rewards is to pay off your monthly balances in full each time.

Don’t Hurt Your Credit

Bear in mind that late payments can also badly affect your personal credit history. Payment history makes up 15% of your total FICO score. Yes, even a single late payment can deduct a few points from your total credit score.

To protect your credit history, see to it that you are always on time in submitting your payments. If you won’t be able to make it on your payment due date, call your creditor immediately and ask for an extension.

How to Keep a 0% APR on Your Credit Card

admin — Mon, 15 Jun 2009 05:43:35 +0000

Credit card companies introduced credit cards with zero interest rate in the market to attract more customers. This can be considered as a very effective marketing method as who wouldn’t like to enjoy a lower interest? Many people have signed up for a credit card to avail the zero- interest- offer even for only a limited time.

Can you really benefit from a credit card with a 0% APR even if the zero interest doesn’t last long? Below are practical strategies that you can do to make sure that you’ll enjoy the low interest from your credit card for a longer time:

Find the right zero interest credit card. Obviously, not all credit cards that offer 0% APR or low APR are worth signing up for. Consumers need to be very careful about making a choice. See to it that you can enjoy the 0 APR for at least 6 months or longer. More importantly, make sure that the regular interest rate would remain reasonable when the introductory period expires.

Get a 0 APR balance transfer card. Do you have unpaid balances from different credit card accounts? If so, why not apply for a balance transfer card with a low rate or zero interest introductory offer. Take advantage of the introductory period to pay off all your balances without the additional interest costs.

Keep your credit rating in excellent standing. A secret to enjoy the best deals from credit card companies and lenders is to maintain a good or excellent credit history. When the introductory period ends, call up your credit card issuer and ask for a lower rate. If you have an outstanding credit score, many credit card issuers would willingly adjust their rates to keep good paying customers.

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Take care of your credit card account. To continue enjoying the best interest rates, see to it that stay true to your payment obligations. Don’t exceed your credit limit. Pay your bills on time. Monitor your credit card account regularly to make sure that there are no unauthorized charges. Use your credit card only for important purchases that you know you can pay back on time.

Keep your credit-to-debt ratio low. Just because your credit card has a low interest rate doesn’t mean you should use it to the full. Maximizing on your credit line can badly affect your credit score. Ideally, you’ll want to keep at least 40% of your credit limit free from charges.

Request for a low rate. No credit card company would volunteer to lower your current rate unless you ask for it. If you have been a good credit card holder for years and you maintain a solid credit history, there’s no reason why you shouldn’t make a request. Even if your credit card issuer refuses to give in, it is still worth a try. Nevertheless, if you feel that your credit card isn’t giving you a fair interest rate, it’s about time to look for a credit card with more reasonable fees and conditions.

Reap the Benefits of Good Credit with a Low APR Credit Card

admin — Fri, 15 May 2009 05:30:43 +0000

Enjoying good credit history isn’t just about getting approved for loans and credit cards more quickly. Having good to excellent credit should give you the advantage that not other consumers enjoy- lower rates and better repayment terms.

Do you have good or excellent credit history? If yes, make sure that you’re reaping the benefits that you deserve for maintaining good credit.

Low APR Credit Cards Always Require Good Credit

Compare credit card deals in the market and notice how the best cards always require good to excellent credit. Consumers with less-than-perfect credit scores will surely get rejected if they try to apply for these credit cards.

Since consumers with low credit scores are seen as high risk credit card holders, credit card issuers offer higher interest rates and lower credit lines for them. On the contrary, credit card issuers will do anything to convince those with impressive credit rating to sign up with their company.

One way to attractive potential cardholders with good to excellent credit is by offering the lowest possible APR. Having a good credit history shows your capability to make payments and credit card issuers know that having you as a customer will solidify their standing in the market.

Maintain Good Credit Low Interest Balance Transfer Credit Cards

Do you own more than one credit card in your name? If you currently have unpaid balances on these credit card accounts, protect your credit history and keep your credit in good standing by getting a low APR balance transfer credit card.

Balance transfer credit cards are often accompanied by low APR or 0 APR that may last from 6 to 12 months, depending on the issuer. By transferring your balances over to a zero interest card, you can focus on your repayment without incurring the high rates of interest.

Most balance transfer credit cards with low APR or zero APR require good credit history. Before submitting your application, it’s best to check your credit report first to make sure that your application won’t be rejected.

Choose Your Low APR Credit Card with Care

Does this mean all credit cards with a low interest rate or zero interest rate offers are worth choosing? Just as you need to do research when looking for a regular credit card, you also need to do your homework to find the best low APR credit card.

Aside from a zero interest rate or a low interest, see to it that the rest of the fees (annual fee, transaction charges, balance transfer fee, late penalty fee, over-the-limit charges, etc.) associated with your card are reasonable. Do this by reading and understanding the complete Terms & Conditions of each potential credit card.

Credit Card Payments – Beating the Deadline!

admin — Wed, 13 May 2009 04:14:12 +0000

The law requires all credit card companies to send their clients a payment notice at least 14 days ahead of the scheduled deadline of payment. This gives the cardholder ample time to submit payments without incurring late penalty charges.

Yet, despite this rule, many cardholders are still prone to submitting late payments. As a result, additional charges are incurred and sometimes, can even lead to bad credit. If you’re a credit card holder, what can you do to avoid late payments? Below are helpful strategies that you can personally apply:

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Pay your charges online. If your credit card allows Online Bills Payment, take advantage of this feature and send your payments online. This way, you won’t have to go out of your way to submit your payments to the bank. Even with a busy schedule, you can still pay off your charges on time through the internet.

Set automatic payments on your savings account. Another wise strategy is to arrange an automatic payment sending with your bank. If you own two or more credit cards, this method of payment is advisable to prevent the risk of confusion and missing your deadline. At the exact date you set each month, your bank will automatically pay off your credit card charges from your personal savings account.

Submit your minimum due in advance. Don’t wait until the last day of your payment due date before submitting payment. If you can’t afford to pay off your whole balance, you can still submit a minimum due payment to avoid late penalty charges. Once you’ve submitted the minimum due, do your best to pay off the rest of your balance as soon as you can to avoid the additional interest rate costs.

What to do if you were late with your credit card payment?

There may be instances when you were late in submitting your credit card payment. What can you do about it? The best thing to do is to call your credit card company’s Billing Department and request for an extension of your due date.

Politely explain your current situation and let your credit card issuer know why you missed your deadline. If you have been a timely payer in the past, your credit card company would most likely agree to make adjustments on your behalf, especially if you have been a long time cardholder.

As much as possible, give your credit card company a head’s up if you know that you can’t submit your payment for this month. Don’t forget to request your credit card issuer to waive the late penalty fees to lessen your burden. If your credit card issuer accepts your request, see to it that you can submit your next payment on the date you’ve promised.

Things That May Not Be Disclosed By Your Credit Card

admin — Sun, 26 Apr 2009 06:03:36 +0000

The Federal Law mandates all issuers of credit cards to disclose all fees and terms in their contract. However, did you know that what you read in the fine print may not be everything you need to know about your credit card? This article discusses possible things that may not be disclosed by your credit card company.

Balance Transfer Fees. Watch out for credit cards that offer zero interest rate on balance transfers yet imposes unreasonable balance transfer charges. Some credit cards charge 3% to 5% of the amount you’re transferring. Would you be charged each time you transfer a new balance to your card?

Two-Cycle Billing Method. The two-cycle billing can be deceptive, if you don’t understand how it works. This method of billing calculates your monthly charge based on your previous and current charges. That means even if your previous balance has already been paid, it would still be considered on your next bill. If you have a large amount of balance last month, your interest rate for this month can be high on account of your previous balance.

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15-day Notice. Don’t forget the 15-day notice condition in your credit card contract. This means, your credit card issuer can increase your rates and fees at any time provided that you’re sent the 15-day advance notice. If you own a credit card, make it a point to check your monthly billing statements and notices from your credit card. Thus, in case of changes in your billing, you can immediately call up your credit card issuer and discuss the matter.

Lower minimum payments mean higher costs. A low minimum payment due does not guarantee a good deal. Remember, the longer you carry over balances in your account, the more costs you end up paying.

The Universal Default Clause. Examine the Terms and Conditions carefully and see if your credit card imposes the Universal Default clause. This clause gives creditors and lenders the power to increase their interest rates at any time if the borrower delays on his/her payments on any of his/her account. Even if you submit your credit card payments on time, if you fail to submit one payment on time on any of your account, you can get penalized with increased rates and costs without warning.

Very short grace period or none at all. A sufficient grace period is a very important feature for a credit card since it gives the cardholder the chance to pay off balances without incurring the additional interest rate costs. Surprisingly, more and more credit cards today provide a very short length of grace period. Some do not even provide a grace period at all.

Before signing up for a credit card, check the length of grace period it offers. Remember, cash advances are not covered by the grace period. If you’re going to take out cash from your credit card, you will be automatically charged with the interest rate even if your card offers a lengthy grace period.

A Good Credit Card Holder? Then You Deserve a Better Interest Rate!

admin — Fri, 17 Apr 2009 01:45:11 +0000

If you own a credit card, it is your duty to check the rates and fees that your credit card issuer charges you. In this article, we’ll talk about how you can take advantage of your good credit score to enjoy better rates on your credit cards.

How to Lower Your Credit Card Interest Rate

Can you really ask a credit card company to lower your interest rate? If you haven’t tried asking for a lower rate, you might be surprised with the result.

If you had that credit card for quite some time and you’ve been a good customer, then you really deserve to get lower rates and fees. Nevertheless, no credit card company would offer to give it unless you make the request.

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Examine your billing statements for the past few months and see if there has been any change in your interest rate or fees. Credit card companies often increase their charges after giving their customers an advanced 15-day notice. This is why credit cardholders must check billing statements regularly.

Surf the internet and compare the interest rates that other credit cards offer. Check out online reviews and see which credit cards rave the best reviews from consumers. These credit cards are most likely to give the best service as well as the best interest rates to customers.

Next, explore the credit card market and know how much interest rate other companies are asking. Pay special attention to credit cards with outstanding customer reviews and that offer low interest rates. Compare their rates with what you credit card demands from you. Compare these credit cards with your current card so you know exactly where you stand.

Take note of these observations before speaking your credit card company’s manager or supervisor. Remember always ask to speak with the manager or the supervisor or someone who is in charge in the credit management department. If you don’t, you may not get the action you want since customer representatives do not have the power to make changes on the rules.

When speaking about your concerns, always speak in a polite manner. Explain to your credit card company why you think you deserve lower interest rates and better deals from them. If you have an excellent credit rating, you should not hesitate to make demands. Many companies would willingly adjust their charges to keep well-paying and loyal customers on their side.

Can You Really Ask for a Lower Rate?

Yes, you can ask for a lower rate. Although not all credit card companies may give in to your request, asking for a lower rate is still worth the try. If your credit card issuer refuses to make adjustments for you, don’t give up easily. You can call up again after a month or two and make a request. If you’re really not satisfied with the services you get from your credit card company, you can always open a new account with a credit card that has better deals.

Maximizing Your Credit Score Through Smart Credit Card Use

admin — Tue, 31 Mar 2009 12:14:23 +0000

Did your credit card issuer increase your interest rate this month? How can you use your credit score to get better rates? Here are some tips:

Read your credit card mails regularly. Your credit card issuer can change your current rates at any time. However, they are required by the law to give a 15-day advanced notice. By checking your mails regularly, you can easily monitor your rates and fees. If your issuer announces that your interest rate is bound to increase, you can call them up right away before the new rate is implemented.

Request for a lower rate. Don’t put up with an unreasonable rate of interest. If you have been a good cardholder, your credit history should speak for itself. If you have a high credit rating, you deserve the best rates. Credit card issuers are often willing to modify their terms just to keep their best customers so call your issuer and speak with the manager about your concerns.

Pay more than the minimum. Don’t be content with submitting only the minimum due even if your credit card allows it. Make it a habit to pay off your balances in full each billing cycle. This way, you can avoid the additional interest cost. Remember, as you prolong your credit card debt, your charges also accumulate due to the interest rate and penalties.

Pay off your high-rate credit cards first. If you have more than one credit card, which one has the higher rate? If possible pay off your entire balance from your high-rate card immediately to avoid debt build up. You may also consider getting a zero-interest balance transfer credit card especially if you have excellent credit.

Use your credit card only for charges that you can pay off immediately. Avoid problems by being a smart credit card holder. Don’t use your card for purchases that you can easily pay in cash. Never use your credit card for an unplanned purchase.

Don’t maximize you credit limit. Even if your credit card has a low rate, avoid maximizing your credit limit. Using your credit line to the full can pull down your credit score. Leave at least 60% of your credit free from use.