Make Your Credit Cards Work For You

Convenience is the name of the game these days. Most people have credit cards so they can easily pay for their bills and things they want to buy. For these people, convenience is identical to swiping their cards.

Credit cards have made it now optional to carry cash. This greatly reduces the risk of getting held up as you are on your way to shop. It also speeds up things at the counter because you do not have to count out bills and coins anymore. By charging your water, phone and electricity bills to your credit cards, you also avoid having to line up at the payment centers just to settle bills.

These conveniences bring you benefits but there are also drawbacks to using credit cards. Poor management on your part can lead to more unplanned purchases that you cannot pay anymore. Sooner or later, you end up just being able to pay the interest charges and so your outstanding balance never seems to get smaller!

You can sidestep this trap by being credit card savvy. The tips below can help you take better control of your credit cards.

Always review your credit card statement. Check the entries and see if you truly made the purchases listed. Keep your store receipts so you can go back on them and compare the amounts charged to you. Be on guard against billing errors and report them immediately.

Study your purchases. Admit to yourself if they were merely for luxuries you simply could not afford but failed to resist buying. Make a resolution to think first before buying next time you go shopping so your purchases will be limited to the necessities.

Compare credit cards. Study the terms and conditions of other credit card companies and see if they offer lower membership fees and finance charges. If you have a huge outstanding balance, then check if there are balance transfer promotions being offered by other card companies. Here, you can move your outstanding bills to the new credit card company and pay for them longer with lower interest charges.

Reduce the cards in your wallet. They may look nice and give you a feeling of security but having too many cards have its pitfalls. It encourages you to purchase more since you can always swipe one card after another. Soon, you will not be able to make sense out of all your credit card bills. Keep in mind that in the case of credit cards less would definitely mean more.

Make timely payments. Note on your calendar the payment date for your credit card bills and pay them on time. This helps you to avoid penalty charges. If possible, pay the total amount due in full so that you do not incur additional interest charges. This habit will also reflect on your credit record and improve your credit rating.

Managing your credit card can be simple and convenient too. Just remember never to bite off more than you can chew.

For more information on how family budget and how to spend wisely, visit
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How To Be Responsible With Credit Cards

Credit cards are wonderful little things, but in order to get the most out of one, the best thing to do is just not use it at all. Yes, I know it sounds backwards, but the best way for a credit card to benefit you is to simply put it up somewhere and not use it unless you absolutely have to. If you do have to use it, pay it off every month and watch your credit score skyrocket.

The problem with credit cards is that when people get them, they automatically feel the urge to use them and quite often, that urge is not easily quieted by a simple small purchase here and there. No, you want to use it on something big. You have a $3,000 credit line, right? Why not spend half of it on a new big screen TV?

Interest. That's why not.

The interest that you can accumulate by purchasing a big ticket item such as a new television or an entertainment system can be huge and unless you are sure you are going to have the money to pay the purchase off quickly, steer clear of these things.

Another thing to steer clear of completely is using the card all the time for small purchases, because this can become even more habitual. You do not see the harm in using it for a $5 purchase here, a $10 purchase there, but those quickly add up into balances of hundreds or thousands of dollars and you will wonder how you spent all that money.

Unless you are responsible enough to keep your debt in other areas under control (such as house payments or rent, car payments, bills, services, and etcetera) without using the credit card to play keep up, then having a credit card is really not for you. Stay away from them until you learn to manage your finances well without them.

Credit cards are very useful for those responsible few of us who can handle them, but no one needs one. If you want the convenience of not having to carry cash, you could carry a debit card instead, but make sure you do not leave your pin number anywhere in your wallet or purse where a thief could gain access to it and your checking account. You can cancel your credit card, but it's harder to cancel the cash in your checking account if your debit card is stolen.

Dror Klar is a writer in the field of finances and is currently assisting those in need of cash advances and payday loans, particularly in the state of New York.

Why Minimum Monthly Payments Will Cost You Big

Sometimes credit cards make life a little too easy. How is that possible? By allowing us to make purchases we really can't afford, and then giving us an unlimited amount of time to pay off the debt. It sounds great in theory, but ask a card holder who's been paying off the same debt for years. They'll tell you that extending your repayment isn't as easy as it sounds.

That is because of the amount of interest you accrue when you stretch out your debt over a long period of time. In fact, credit card companies count on card holders with revolving debt (debt that rolls over from one month to the next). Those consumers pay the fees and interest rates that keep the card companies so profitable.

As a card holder, minimum monthly payments are your enemy. Consider this: a fairly typical household with $6,600 of credit card debt, making minimum monthly payments, would take over twenty five years to pay off their balance - and that's with a decent interest rate! It's nearly impossible to make a dent in your debt by making minimum payments.

Some card holders lament the fact that their debt actually increases each month when they make minimum monthly payments. I've seen this firsthand; fees for carrying a balance, combined with interest, can really overcome a minimum payment. My experience made a believer out of me, and since then I have always paid two or three times the minimum monthly payment in order to stay ahead of the debt.

Senator Dianne Feinstein of California is the proponent of a new bill that would require credit card companies to educate their consumers about the consequences of minimum monthly payments. This would be a huge boon to card holders, as it would illustrate just how long it takes to pay off a balance with minimum payments. Most card holders carry a balance from month to month, and 11% of them make only the minimum required payment. Many simply don't realize what a poor choice this is.

The best way to handle credit card debt is to prevent it. Pay off your balance in full each month. But if an emergency or special event has left you with a heap of credit card debt, there are steps you can take to reduce it quickly. Remember: the longer you take to pay off an interest-bearing balance, the more you will ultimately pay.

To get serious about paying off your credit card balance, pay double or triple the required amount each month. If you get a work bonus or a tax return, use some of it to pay down your balances. Transfer high-interest balances to 0% interest credit cards to make your monthly payments mean something. Just be sure to pay off the balance in full before that 0% interest period ends.

Minimum monthly payments might seem cheap at first, but they come with a hefty price tag. Get your debt paid off as quickly as possible to avoid throwing money away on fees, penalties, and interest.

About the Author:
This article has been provided courtesy of Creditor Web, http://www.creditorweb.com .

The Do's And Don'ts Of Secured Credit Cards

It's hard to get away from using a credit card these days. If you want to travel, you must have a credit card to reserve a hotel room. Renting a car? It takes a credit card. Want to get a membership at the new video rental store? Present your credit card, please.

For those with bad or challenged credit, life can be tough without a credit card. Secured credit cards can help to bridge this gap for those without credit or with damaged credit.

A secured credit card works like this: you deposit a set amount into an account (usually between $300 and $500) and that becomes your credit limit. Your deposit, in essence, "secures" the credit card. If you don't pay, your money becomes the issuing credit card company's security against default.

After you have established good credit, you can increase the credit line by depositing more money, or the credit card company might extend you more credit without an additional deposit.

Secured credit cards can be an excellent choice for many people, but there are a few things to know:

* Almost all secured credit cards have an annual fee. But these fees can vary greatly from one issuing company to another. Shop around.

* Many banks no longer offer secured credit cards, but often credit unions do. If you want to go this route, you can open an account at many credit unions for as little as $5 and then look into the secured credit card there.

* Most issuing companies will require that you pay the balance in full each month. They don't take your payment due from the money you have deposited – you must send a payment just as you would for a traditional credit card. These are usually not revolving credit accounts.

If you think a secured credit card is the right thing for you, there are some do's and don'ts to consider. First, the do's:

* DO shop around. Not all offers are the same. Don't take the first offer that appears in your mailbox. Do your own research.

* DO look into getting a secured credit card with a higher balance if that's what you need. In other words, if you have $3,000 to deposit, find an issuing company that will allow you to deposit that much to start so your limit will be higher.

* DO make sure this is the best option for you. If you have never had credit before, or you have severely damaged credit, this might be the only option. But if you think you can get a traditional card, that's a better option.

* DO read all the fine print. Every single word. Some companies charge so many fees, your small $300 deposit might be eaten up in fees before you can ever use the card. Some require you to purchase insurance, for $50 or more a month. But many companies don't do these things and those are the companies you're looking for. Do your research and get the best deal for you.

Although secured credit cards are a good option for many people, there are some don't considerations. These include:

* DON'T be casual about this credit card. If you have damaged credit, using a secured credit card is an excellent way to re-establish your good credit rating. If you have never had credit, this is a way to establish credit so you can acquire traditional credit later.

* DON'T try to go over your limit (or deposit amount). Not only will the charge not go through, but it will be a mark against you. Keep careful records each month you use the card so you know you're not charging right up against the credit limit.

About the Author:
This article has been provided courtesy of Creditor Web, http://www.creditorweb.com

Understanding Your Credit Card Rights

When you apply for and are issued credit, your signature on the credit application acts as your acceptance of the terms set forth by the issuing financial institution. Even though it may seem that the issuer has the upper hand in all matters related to using the credit, that's not entirely true.

You have certain rights, many of which are provided under the Fair Credit Billing Act. What's important when exercising these rights is ensuring that you take all required steps in the order and time frame specified. Let' start with the biggest credit problem, billing disputes.

Billing disputes

Billing disputes in which merchants charge cardholders for items not received or items received defective happen all the time. According to the Fair Credit Billing Act, you have a right to dispute such charges by taking the following steps.

Step 1

Within 60 days of the date you received the first statement listing the disputed item, you must contact the issuer of the credit card in writing. Be sure to use the separate address listed for Billing Inquiries. Also be sure to mail your letter which must include your name as listed on the cardholder account, account number, details of the disputed item and what you want to happen (i.e., that the error be corrected).

Step 2

Before sending the letter, sign it and make a copy for your records. Include copies of all supporting documentation (dated receipts, etc.) and use a mailing method that offers proof of delivery such as certified mail. The issuer will notify you within 30 days of receipt of your written dispute and will then investigate the matter.

While the investigation is underway you are not required to pay for the item in dispute nor the corresponding finance charges. If the dispute sides in your favor, you are released from further liability in the matter. If not, you will be responsible for making the payment as outlined in cardholder agreement.

Unauthorized charges

This is another big problem with credit cards. However, as a cardholder, your responsibility for proven unauthorized charges is limited to $50; not the full amount. Unauthorized charges can easily run into the hundreds and thousands of dollars so even though it seems high, $50 is a small price to pay if you're ever a victim of identity theft.

When you cannot pay your bill

When you use credit cards to make purchases you're considered a debtor. If you're ever not able to repay credit debt that you incur, you'll likely be contacted by a debt collector.

In the past, debt collectors used all sorts of threatening and intimidating tactics in their efforts to collect debt. Fortunately, the Fair Debt Collection Practices Act prohibits such unfair treatment of debtors. The Act also determines when and how debt collectors may contact debtors. For example, debt collectors are prohibited from making false statements about you or your debt or about any consequences of you not paying that debt, such as saying you'll be arrested or that your wages will be garnished.

None of the above means you're relieved of your responsibility to repay your debt. It just means you have the right to be treated fairly while debt collection efforts are underway.

For more information

If there's ever any question about your credit card rights and you need fair, unbiased answers including an explanation of your rights, try contacting the FTC at http://www.ftc.gov/. There you can learn about credit card fraud, dealing with lost or stolen credit/debit cards, fair billing rights, unfair or deceptive business practices, internet and phone orders, and more. Information on these and other consumer issues is free.

To better understand your credit cards rights as they relate to complicated issues such as declaring bankruptcy or divorce, consider consulting an attorney.

About the Author:
This article has been provided courtesy of Creditor Web, http://www.creditorweb.com

Get Rewards That Feel Rewarding

In the modern world, credit cards have become a basic necessity. Between the ease of using them for shopping, whether in person or online, and the necessity of having one in order to do simple things like make hotel and car reservations, it's difficult to impossible to go without one for long. So as long as you have to have one, you may as well be getting some benefit out of it. Different credit cards come with a vast array of rewards programs that can be redeemed for a variety of products and services, so check out the available options and get a card that actually feels rewarding.

If you have the travel bug, or frequently travel on business, you should consider getting a frequent flier credit card. These credit cards earn you air miles for the purchases that you make on your card and, depending upon the card sponsor, may even give you double benefits for spending at specific venues. Frequent flier credit cards can be sponsored either by a bank, or by an airline, and which type of card-sponsorship you chose can change the benefits you will get.

If you chose an airline-sponsored card, you will get benefits like air miles and airport lounge privileges, but only with your sponsoring airline, so you'll want to make sure it's an airline that travels in your area, and where you want to go. On the other hand, if you go with a bank-sponsored frequent flier credit card, you can use your miles with more than one airline.

The most important thing about using a frequent flier credit card is to watch the fine print. Most frequent flier credit cards come with heavy interest rates, so you only want to use this card for purchases you know you can pay off every month.

Flying isn't for everyone, and credit card companies know this, so there are lots of other options for people who want to enjoy credit card rewards close to home with both of their feet planted solidly on the ground. If you have a long commute, or frequently go on road-trips, you might investigate different gas rebate cards. Gas rebate cards give you cash rebates on the gas that you buy for a small percentage of the overall cost of your gas. Some even offer rebates on the oil you use to heat your home, or purchases that you make at applicable gas stations' convenience stores. The percentage of the rebate varies from card to card, but most of them will send you your rebate once a year in one lump sum so that you really see your savings.

As with the frequent flier credit card, though, it's really only worthwhile to get a gas rebate if you don't plan on carrying a balance. These cards typically come with higher interest rate for any unpaid balance, so only use your gas rebate credit card if you know you'll be able to pay it off.

Feeling like you might miss out on rewards because you aren't constantly on the move? There are options for you too! Different rewards cards offer reward points that can go toward anything from Broadway tickets to books. Entertainment cards are usually pretty benefit-specific, so you'll want to pick a card that offers you points at a place where you'll actually be interested in using them.

But always remember, the terms and conditions always matter more than the rewards you might get from a credit card, especially if you plan on carrying a balance. Free tickets to Cats aren't worth getting stuck with a bad interest rate on your debt.

About the Author:
This article has been provided courtesy of Creditor Web, http://www.creditorweb.com

Gas Reward Cards - An Extra Gallon Can Truly Help

By Derek Lenehan

I'd like to share an experience I had a few weeks ago. I was putting gas into my '92 Eagle Talon at a gas station a couple miles from my home. Perhaps I hadn't anticipated rising fuel costs, or I wasn't conscious of my wallet contents, but I filled my car with $32 of regular unleaded, and I only had $30 on me. A mere two dollar oversight.

I did what any typical driver would do in this situation: I began raking beneath my seats for any change I could find. A chipped fingernail, two packets of barbeque sauce and an unopened piece of mail later, I had discovered only 98 cents comprised of mostly pennies with a couple nickels encapsulated in an unknown sticky substance.

I asked the portly station attendant if he could spot me the $1.02 that I lacked. He sized me up while spitting tobacco juice into a Fanta can, and promptly said no. I waited for a kind-hearted customer to arrive that I could beg from, but that proved fruitless after a half hour. Never fill your tank around 3:45 a.m., it's asking for doom.

'How could this have been avoided?' I asked myself while walking the distance back home to retrieve a dollar and two cents. I thought real hard and realized that I wanted two things to change. First, I didn't want to have to rely on my spotty memory and cash. Second, I wanted to be repaid for this fiasco, I wanted to get a reward to soothe my ruffled feathers.

The answer became simple. I'd seen the ads everywhere, and why I hadn't done it before was a mystery. A credit card that features cash back on gas purchases. Several companies offer them with a cash back reward of about 5% on any money spent on fuel.

I did the math while attempting a shortcut through a golf course. 5% on my $32 purchase was $1.60. Combined with the sticky change I had mined from beneath my seats, I would have able to pay for the fuel and even thrown in a half gallon of generic iced tea.

I realized shortly after, while walking across the fairway on the scenic and lovely 14th hole, that the rewards aren't typically instant. This information only had me down for a moment or two, because I realized that if I'd had a gas rewards credit card from the first day I had a car, the cash back I could have amassed over time would have been easily enough to pay for the entire tank. Maybe two.

I got home at 5:54 a.m., pawed through my change jar and took what I needed. A police officer stopped me while I was walking back to the gas station, and was kind enough to give me a ride back. I paid the bill, drove back, immediately went to bed as the sun was rising, and dreamt of fuel-beneficial credit cards and a better pair of shoes.


About the Author:
Derek Lenehan attends Kent State University in pursuit of a major in Journalism. He is also a credit card commentator at CompareCC.com, a site dedicated to providing the largest selection of gas reward credit cards available online.


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Consider The More Credit Card From Discover

By Angelknight

There are a lot of credit cards on the market today offering great value to credit card using consumers. Among those credit cards are the Discover More Cards.

Believe it or not this card is available in over 150 card designs that you can personalize and an introductory 0% APR (Annual Percentage Rate) on purchases and balance transfers for 12 months. Plus, as is true with all Discover credit cards, there is no annual fee.

The Discover More Card is a cash back rebate card that gives you more ways to earn cash back rebates than any other credit card currently being issued. Let us take a look at some of the cash back features of the Discover More Card:

1. If using the Discover More card you will get a 5% cash back bonus in popular categories that change four times a year. A few of these categories are travel, apparel, home, gas, restaurants and movies. There are also more cash back bonus categories available.

2. If you make purchases from Discover card retailers, at their exclusive online shopping site, you will get a 5% to 20% cash back bonus.

3. For almost any other Discover More Card purchase you make you will receive a 1% cash bonus, automatically.

4. You have a chance of receiving unlimited cash rewards that never expire.

5. There is an option to increase, or double your cash back bonus rewards when you redeem your More card cash rebate for gift cards from Discover’s 80 cash back bonus partners.

There are more great features of the Discover More Card beginning with complete fraud protection for your peace of mind that includes: a $0 fraud liability guarantee, early warning fraud alerts, account numbers that are secure online, and dedicated fraud specialists to help you 24 hours a day.

Discover More Card customer service is supposed to be one of the best around. They say that they will take care of your customer service request with one call, get you in contact with a knowledgeable customer service agent within minutes, put you in control by offering you the easiest account choices, send out timely email to help you avoid late and other fees, give you a grace period of at least 25 days, when you pay your balance in full each month, offer excess collision damage waiver insurance, scheduled air travel accident insurance and so much more.

The Discover More Card should definitely be among the credit cards you consider acquiring if you are searching for an excellent cash rebate card. The better credit card websites on the internet offer you this exceptional credit card and many more. Maybe today is the day you should seek a good credit card deal online. Perhaps, you will find the credit card you have always wanted.

About the Author:
Art Taylor has been a successful internet marketer for 10 years. He writes articles about credit cards and other topics. For more information or to apply for credit cards visit his websites at: Eshopperworld or Cards.



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Interest Rate Tips

Well, I'm back after a long holiday season! And my personal bout with Football Fever!! It's time to get back to work!!

One finance area that is of consistent concern with many people is: What can I do to reduce my INTEREST RATE on credit card & long term debt accounts?

It seems that more and more people are seeing their interest rates climb as a result of multiple factors. There isn't much any of us can do about fed policies of adjusting the prime rate. Sometimes I wonder if they have ANY concern about the little guy at the bottom of the finance pile. Mostly, they appear focused on how interest rates will impact the economy, not you or me!

There are also those people who just can't seem to pay their bills on time! Or those who just don't have the money to pay their bills on time!! I wonder if they realize that missing a payment by even a single day can have serious interest rate implications? My credit card interest rates climbed to 29% across the board before I got a handle on them again. It's difficult to pay off a credit card when they keep piling more charges on!!

However, there are options available to reduce your Interest Rates:

You can contact your Payee and request that the Interest Rate be lowered. Sometimes if they have interest rate promotions in effect, they will accommodate your request .

You may have the option of transferring the Loan Balance to a different account. One with a lower Interest Rate and available credit remaining.

If you own a home, you can consider opening a Home Equity Line of Credit. That will provide you with money to payoff or consolidate higher interest rate loans.

If you have a 401K account, consider taking a loan on your vested balance to consolidate High Interest loans. The Interest Rates on 401K loans are usually low, and all interest you pay goes back into your own 401K account!!

If none of those options are not available to you, another is to open a new account with another payee who is offering a low introductory Interest Rate. Those introductory rates are temporary though, and you need to make sure you understand the long terms rates and conditions.

Maybe you have a friend or relative that can provide you an interest free loan to payoff your high rate accounts! Be careful with this option... Make SURE you pay them back quickly, and without unnecessary delays!! After all, it's not a GIFT just because you got it from a friend. It's a loan and must be paid back!

These are just some simple options that "some" people may be able to take advantage of for reducing their interest rates. Obviously, nothing works for everybody. But if you stay focused on your goal of reducing rates, chances are good that you will eventually find a way!

Good luck!

Personal Finance Problems

Many people today are struggling with personal finances.

If you are anything like me, it has taken close to 12 years to unravel my financial burdens! Even though I struggled to keep up with spiraling interest rates on credit card loans, I continued to receive invitations to extend more credit. And, I continued to accept them! Why not? There are so many things I need, and buying things are so darn easy using credit!

That is, until the credit card companies decided to increase my interest rates to nearly 29%! After that, I could barely keep up with the interest charges. I would make a substantial payment, then be discouraged when I got my next bill and the balance remained unchanged! Whenever I did find a little extra money at the end of the month, I was quick to find SOMETHING to spend it on... After all, I deserved it after struggling all month right?

In 2004, I found myself paying nearly $1,231 per month on interest payments alone. Today, I am nearly debt-free! Don't let yourself get caught up in GenerationDEBT! There are plenty of resources available to help provide guidance. Don't get caught up in wasteful spending! Buy what you need and save the unnecessary items for another day...

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