Credit Card Lowdown

Youngsters show the way to financial stability

Are people getting fiscally responsible? Sounds incredible that in a country where a large number of people are facing bankruptcy because of unpaid debts, youngsters are holding the beacon of financial stability and refusing to overuse plastic money. Mercurynews.com reports:

Maybe my generation and younger are more fiscally responsible than I thought or than our boomer parents give us credit for. Or maybe enough of us have spent enough time -- and finance charges -- battling credit card debt that we've learned our lesson.

Read more: Some young gift buyers set to pay bills

Finance tips for businessmen

Credit cards are double-edged swords. While they can be extremely useful, especially for small-business owners, paying with plastic can land you in trouble as well. Stargazettenews.com reports:

Entrepreneurs often underestimate the costs of starting a business and then later have to cover unanticipated shortfalls with high-interest credit card debt.

Read more: Family Finance

Credit card safety

When feeling stressed or depressed, it is the easiest thing to get into a buying frenzy to get your mind off your problems. Instead stick to window shopping or simply browse around. But make sure you aren’t carrying a credit card or even cash during times of depression. In fact as far as possible it would be wise to avoid carrying a credit card at any time at all.

The only thing worse than charging to a card is to pay for charges you never availed. Keep receipts safely and always verify the charges on the credit card invoices to ensure that you are not paying for any erroneous charges.

Keep your cards safe by ensuring you immediately sign on each one and having your picture on them. Never give out the card number over the phone. When making transactions, see to it that manual carbons are shredded by the sales staff.

When signing receipts, draw a line through any empty spaces above the total amount.

A change of address means you should notify the credit card companies even if you have no balance on them. In case opf loss or theft, waste no time in informing the concerned company. Credit card info.com reports:

In Banking and Credit I said that this article would be "BOMBS AWAY". I'll try to be nice, but you may want to get a little emotion going with Credit Cards--- They're Just Like Drugs.

Credit card tips for students

If you don’t already have a credit card before you join campus, you’ll have plenty of opportunity to get one once you do. Credit card companies are increasingly targeting college students to sign up for credit cards. It is common for the companies to offer free incentives like coffee mugs, Frisbees, T-shirts etc merely to fill out applications. But before signing up, give it a great deal of thought.

The fact is, a majority of on-campus credit card offers don’t offer too good a deal for students. A US Public Interest Research Group study found students with on-campus credit cards to have more unpaid balances than those without. High balances are the surest method of falling into the debt trap.

Despite the lack of a regular income and being saddled with student loans, students are considered a good credit risk. According to research students are valuable as customers due to loyalty to their first card and continually making purchases in the future.

The advantage of having a credit card is the ability to build up a good credit history. This proves to be beneficial for availing student loans, car purchasdes, apartment rental, employment and house loan.

Other advantages include security for emergencies, eliminating the need for carrying money and increased responsibility and independence. But for all these advantages, it will be enough to have just one national card like Visa or MasterCard. Credit card info.com reports:

You may already have a credit card, but if you don't, you can be sure there will be many opportunities to get one once you arrive on campus. Many credit companies set up tables in the common areas of college campuses to encourage students to sign up for credit cards. Often, they give away trinkets such as T-shirts, water bottles, frisbees, coffee mugs, etc. in exchange for having you fill out an application. Sound easy? It is, but think twice before you do it.

Hazards of choosing balance transfer

Advertisements for balance transfers can be highly confusing and one may end up finding it difficult to compare credit cards in order to determine the one that may be best suited for your individual requirements.

There are a number of factors to take into consideration before making a decision on balance transfer on credit cards.

0% purchases small print: Many cards offer a 0% balance transfer rate along with a 0% rate for purchases. Without a 0% offer rate for purchases, the implication is that any new purchases that you make on your card will be charging interest rate at the regular rate. Remember that the payments you make every month to your credit card will not cover the new purchases till the time the balance transfer has been paid completely.

Minimum monthly spend: Beware of a minimum monthly spend clause that some credit card issuers have. The card may offer 0% for the entire duration of the transferred balance but only on the condition of meeting the minimum monthly spend requirement. Failure to meet this minimum monthly spend would imply that all charges will be at the regular APR rate. Credit card info.com reports:

Adverts for balance transfers can be confusing and consequently it is difficult to compare all credit cards and find the best one for you. The uSwitch.com credit card comparison service makes this easy.

Guide to Balance Transfers

When high credit card fees prove exhausting, one may want to consider the option of lowering interest charges by transferring the balance to another card. Balance transfer is both smart and easy as an option for reducing credit card costs. Ensure that you fully understand the terms and conditions of the new card to maximize savings.

Balance transfers can have numerous advantages. One can drastically reduce interest rate and fees. Credit card companies charge different interest rates for balance transfers with the most common one being 0 percent for six months through 12 months. Some cards may link the introductory APR or annual percentage rate to billing cycles.

There can be other benefits also like the ability to get a new card without any annual fee, a longer payment grace period and cash back on purchases. Sometimes car rental insurance, identity theft protection and money saving discounts are also offered.

Balance transfer can be done by filling out the paperwork issued by a new card. You can also contact the credit card company that you wish to transfer your balance. Another way of doing it is through balance transfer or convenience checks. These can be sent to the company from which your want to transfer the balance. Credit card info.com reports:

Are you tired of fighting high credit card fees? Why not lower your interest payments by transferring your balance to another card. Balance transfers are one the smartest and easiest ways to reduce credit card costs. Just be sure you understand the terms and conditions of the new card, so you can maximize your savings.

Automatic Bill Payment from American Express

Automatic bill payment is a convenience service by which any American Express Card can be used for automatic payment of regular bills. It doers away with the need for multiple checks to pay bills, with the charges being directly billed to the card.

To get started, search according to state, industry or alphabetically for a service provider. Get in touch with them requesting the facility of automatic bill payment on your card. Keep the customer account number for the service provider and card information at hand. Also keep a record of all charges on monthly card statements.

There is no extra fee that American Express charges for the convenience of automatic bill payment service.

After applying for the automatic bill payment service, it can take upto three billing cycles for the charges to take effect. It may be advisable to continue paying the invoices until you are informed by your service provider that your bill has been charged to your card. Once the service takes effect, many service providers may nevertheless continue to send bills but with the instruction not to pay or Paid. Credit card info.com reports:

Q: What is Automatic Bill Payment?

A: Automatic Bill Payment is a convenient way to automatically pay your recurring bills using any American Express® Card. Rather than writing multiple checks to pay your bills, you can have the charges for these and other services billed directly to your American Express Card.

Credit Card Security: Where Are We Now?

Even though protection from credit card fraud may leave much to be desired, there’s no denying that the companies issuing the cards are making commendable efforts in combating the menace.

Visa USA has come up with Advanced Authorization, a patent-pending technology geared to eliminate fraud even before it occurs, at the time of checkout. It zeroes in on coordinated attacks on multiple accounts in real time.

Each time a card is used, an instant rating of the opportunity for fraud is made to the issuer. An immediate response is sent back to the place of transaction to decline or accept.

Another Visa initiative, Visa Advanced ID Solutions issues customized versions of ID Analytics ID Score to members. The score establishes the identity of applicants enabling financial institutions to prevent fraudulent debit and credit card applications.

On the otherr hand, Discover Financial Services continuously monitors ongoing fraud trends to get to the root of the problem. Any sign of data compromise whether with a merchant, processor or value-added reseller is sought. Credit card info.com reports:

At the end of the day, are credit card companies doing enough to protect consumers, merchants and banks from fraud? The results will have to speak for themselves, but companies like CyberSource are keeping tabs on Internet-based credit card fraud and, according to the results of its 2006 Fraud Survey, there is more work to be done.

Budgeting secrets

Attitude is among the primary reasons for failure in budgeting is one’s attitude. Don’t think of it as a penny-pinching sacrifice which doesn’t last long but as a way of achieving financial goals. It may help to think of it as a spending plan rather than a budget for a more positive approach. If you fail in your attempt, don’t give up and keep trying till you succeed or the negative feelings can dissuade you from trying again.

The purpose of budgeting is to give you a clear picture of where exactly your money goes and with a spending plan, you’ll be able to save for the more important expenses including house, car, retirement, college education, travel, etc.

A key aspect to a successful budget is customization to your needs. Don’t plan according to the habits and lifestyle of people in general but take your specific situation. Simplicity makes commitment easier. A realistic practical budget will ensure rewards to keep you motivated. Credit card info.com reports:

Have you ever attempted to budget and given up in frustration or discouragement? If you can figure out the reason your budgeting attempt failed, you'll be able to institute a rewarding, successful budget and stick to it. Think about it. What really determines whether budgeting works for you?

Holiday gift giving ideas

It’s the season to be merry, not to mention traveling, decorating, holiday parties, family, friends, relatives and shopping. It’s an all too familiar scenario of flashing your credit card for every gift purchase and then dreading the day you receive your credit card statement.

Instead of splurging your hard earned money on expensive gifts that prove worthless, take some time to consider some meaningful gifts that best express how much the recipient means to you.

Avoid greeting cards and individual letters to all and sundry that take up substantial time and expense. A yearly wrap-up letter to all your friends and family can achieve the same purpose for much less. With the help of computer softwares you can design it to look attractive.

Think about each person you want to give a gift to and consider what they might be requiring at the moment or the immediate future. For example somebody starting college would appreciate a gift hamper of eatables and essentials like toiletries. For an office-goer, a fancy container with office supplies like calendars, coffee mugs, personalized pens, etc would be ideal. Credit card info.com reports:

It's that time of year again, time for traveling, decorating, holiday parties, family, friends, relatives and of course. . . . shopping.

Avoid credit card rate hikes

In a study by Consumer Action, a consumer advocacy group, credit card companies were found to be hiking interest rates for all consumers including those paying on time. Those facing financial problems as well as those not doing so, are charged higher interest rates on credit cards, thanks to the universal default policy.

The implication of the universal default clause is that the issuer has the right to raise your interest rate in case of late payments or accumulating excessive debt. The logic behind this is the likelihood of the customer being a greater risk to the bank.

Some of the reasons for the default rate being applicable to your case include worsening of credit score, late payments on mortgage and car loans, exceeding credit limit, bounced checks, excessive debt, excessive available credit, new credit card and inquiries about car loans or mortgages. Even disputes of medical bill payments can be basis for universal default. Universal default translates into a drastic increase in your overall debt.

Apart from universal default, banks also charge higher annual fees, cash advance fees, bounced check fees, overdraft fees and shorter due dates. Credit card info.com reports:

Understand the universal default interest rate and how it can hit your wallet. NEW YORK (CNNMoney.com) - Credit card issuers are upping the interest rate you pay on your debt even if you pay your bills on time, according to a study from Consumer Action, a consumer advocacy group.

Credit card balance transfers

A credit card balance transfer is the means by which the balance of an existing credit card is moved to a new credit card. The purpose is to save money with the interest-free period that credit card companies offer to new customers.

With increasing competition in the credit card industry, credit card companies are extending their interest-free periods for balance transfers. The opportunities are tremendous which is wh6y it’s important that you shop around to find the best deal for a balance transfer option for maximum savings.

To avail of balance transfer one simply has to apply for a new credit card and once the application is approved, the existing balance on an old credit card can be transferred to the new card by speaking to the new card issuer. With most credit cards offering the convenience of an online system, the balance transfer can be done on your own.

An important reminder about balance transfers is that you may only get a reduced APR if you transfer your balance immediately after applying for the new card. Credit card info.com reports:

If you're considering a balance transfer deal, but aren't sure how to find the most suitable offer, read on. The following balance transfer article outlines exactly what a balance transfer is, how they work, what deals are available, and points to consider when transferring your balance.

All about balance transfer

Under the burden of soaring credit card debt, it may be a wise move to start a new credit card, strange as it may sound. The reason behind it, is credit card balance transfer usually available to all with a mailbox and social security number.

Credit card companies try to rope in new consumers by luring them with free balance transfer from an old credit card. A grace period is fixed with significantly reduced charges for the transfer. The typical duration of the period is six months to a year following the transfer.

For the smart consumer this is a great opportunity to be free to pay down a credit card balance minus the interest charges. First he opens a new account for balance transfer on expiry of the old one. Then again, he transfers all the balance to a new card with a new grace period and low charges, if any. However without closing old accounts, it is not advisable to operate more than two credit card accounts as credit scores can be adversely affected. Credit card info.com reports:

Opening a new credit card may seem like the last smart thing to do when faced with mounting credit card debt. In one case, however, this may make sense and wind up saving you a lot of money as well. This special exception is a credit card balance transfer, and is oftentimes available to anyone with a mailbox and social security number.

What is a balance transfer?

When you transfer your balances from your current credit cards, whether in part or whole, into a single credit card account, the process is known as balance transfer. It makes sense when a card holder consolidates all his high-interest credit card loans into a new card offering a low rate of interest. The card holder then has to pay only one monthly payment to the new card.

The facility of balance transfer is mostly offered for a fixed period during which you are able to pay off all your balances. Some cards may offer this service for as long as one takes to pay off the balance but it isn’t very common. On expiry of the fixed period regular APR becomes applicable. The details of the APR can be found in the terms and conditions of the card.

A majority of cards charge a fee for the facility of balance transfers, unless it is a promotional offer with no charges. Usually the fee is about 3% of the amount being transferred. However the fee is insignificant when compared to the interest savings resulting from the balance transfer. Credit card info.com reports:

Balance Transfer is a process of transferring all or part of the balances from existing card(s) to a single credit card account. This lets a cardholder consolidate all his/her existing high-interest credit card loans into one card that offers a Low Fixed Rate, and then make one monthly payment to a single issuer. The most common (and attractive) Intro Rate is 0% APR.