Finance and Loan Guide » credit card

Credit Card Online: 4 Things you should know

Denni — Tue, 20 Apr 2010 01:00:00 +0000

Credit card is one of the most popular products from the bank or other credit card provider. It is very convenient to use, but need careful calculation. It is also relatively easy to get you a credit card. In this session we have a simple guide before applying a credit card, particularly the credit card online. They are:

Know the minimum requirements

Each card issuer has different set of requirements for acceptance into their card program. You income level, age, occupation and current address are some of the criteria that must meet the minimum requirements of the card issuers. If you comply with these requirements, your chances of being accepted are very high.

Know your credit worthiness

You should also expect your credit rating to be review by the card issuers. This is necessary, as they need to establish if the applicant poses any risk. If you have been paying your mortgage loan, car loan or any other bills regularly and consistently, you should have no worry at bad credit rating.

If you ever have delayed payment on your mortgage, car loan or other bills, your credit rating will be less favorable. The card issuers will dig deeper into your credit history before they can approve your application.

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If you have poor credit rating, you will probably have a higher chance of getting your application approve if you choose a card for people with bad credit. This type of card usually carry a higher interest rate so you should apply if you are confident that you can afford to pay the higher interest.

Read the Fine Print.

The terms and conditions of using the credit card are outlined in the application form itself and you should read through them or have someone read them out for you. Some of the key items you should take note include annual percentage rate, grace period, late payment charges, annual fees and transaction fees. Knowing all these key items will help you plan your expenditure and budgeting.

Keep your web browser up to date.

When filling out the application form on the web, it is imperative for you to make sure that the page is secured. A secured web page will have ‘https’ in the address bar. In addition, a secured web page should also have a small lock icon at the bottom of the browser. If any one of these two items is missing, you should abort the application and look for another credit card.

Keeping these 4 points in mind will make the process of applying for a new credit card easy, safe and hassle free for you.

How to Finance a Business and How to choose Business Credit Card

Denni — Sat, 03 Apr 2010 09:00:00 +0000

Business is one of the main area where finance play an important role. Banks and building societies are racing to attracts business man and woman and also entrepreneurs with their deals, such as business credit card. There are some options available for consideration when it comes to effectively manage cash and flow. Here they are:

Business Debit Card

A business debit card works just like a regular debit card. You normally get one with a business current account, and the debit card is an easy way to replace a chequebook. A business debit card is used to pay for items and the money comes straight out of the business account. The only people who can use the debit card are signatories to the account. With a business debit card, a business owner can only spend the money that is in the account, unless the account also has an overdraft facility.

Business Charge Card

A business charge card gives business owners credit. Business charge cards are similar to credit cards. Business owners can use them to pay for purchases and buy good or services. However, unlike a credit card, the balance on the charge card must be paid in full at the end of the month. There is usually an annual fee for a business charge card. Business owners can issue charge cards to key employees and may even be able to limit employees’ spending on the card.

Business Credit Card

Like business charge cards, business credit cards can be issued to employees with pre-approved spending limits. Business credit cards work like personal credit cards. There is a prearranged credit limit and an interest-free period of up to 56 days. Interest rates can be high if the balance isn’t settled.

Why Have Business Credit?

Like other cards, business credit cards can be a good way of managing cash flow. The ability to issue cards to employees makes it easy for them to travel on business and pay for accommodation, flights, car hire, corporate hospitality and their own meals. Employees don’t have to worry about waiting several weeks to be reimbursed. Employers get the satisfaction of keeping tabs on employees’ expenses. Issuing a business credit card makes it less likely that employees’ personal expenses will be lumped in with the rest.

Joseph Kenny writes for the UK Personal Loans Store, with more business loan and more information on loans at FinanceFool.co.uk.
Visit today: http://www.ukpersonalloanstore.co.uk/

A business credit card also cuts down on accounting time. Instead of spending time sorting out individual expense claims, business owners can examine the itemised monthly statement to see if there are any discrepancies.

What To Consider When Choosing A Business Credit Card

As with other credit cards, there are key factors for business owners to consider when choosing a business credit card. In addition to the interest rate and interest free period, business owners should find out whether there is an application fee for the card and what the annual fee is likely to be.

Business owners also need to assess the penalties for late payment. It is important to know how many cards can be issued on the account and whether individual spending limits can be set for each one. Finally, it’s worth thinking about whether the card offers an incentive that might benefit the business, such as hotel discounts or other travel-related perks.

There you have it. Some things to consider when you want to finance your business and a simple tips on how to choose a business credit card

Loans to Start, not to Spend: Credit Card Lesson

Denni — Sat, 20 Jun 2009 18:57:48 +0000

The ‘booming’ of the credit cards has shocked us recently. Many peoples thank it for the easy accesses it gives. Many others curse it for the traps it performances. Why did such things happen? Here, we’ll learn shortly about them.
First, many people thank for the easy accesses of the credit card. By having credit card, they don’t need to carry a lot of money whenever they want to go shopping. It makes them much saver to go shopping. Next, the credit cards usually cost very high rate of the interest. This is the traps that mentioned before. Many people just use their credit cards without notice that it will cost them more than the price of the goods they bought.
Now, the question is, what actually is the function of loans (include credit cards)? Does it just fulfill our uncontrolled desire to shopping? If that’s your answer, you’re really in a big trouble. It is true that the function of the loans is for starting our business or fulfilling our emergency needs like the bill of the hospital or tuition fees. It is the main principle: the loans are used to start (or save) or company, or to save your emergency needs; not to go shopping and enjoy or desire.

Guides on choosing the right credit card for you

Denni — Sat, 18 Apr 2009 10:23:46 +0000

Credit cards. I know that almost everyone these days have at least one credit card. However, choosing the right credit card for you could be quite troublesome, since there are so many credit cards providers these days that offers various services and plan. However, the most important thing in choosing a credit card is realizing your repayment habits. So basically there are three types of credit card users:

The Loan Racker

Usually this type of user rarely use their credit card, however, sometimes they make a big purchase and plan to pay in bits over months until the payment is complete. The loan racker is someone who uses his/her credit card primarily to finance a big purchase. This person should look for a low-interest rate credit card. Low interest rate cards will help this person avoid a high cumulative debt, and will avoid messing up their credit score.

The Card Swinger

Every now and then you hear about applying for a card which gives you a 0% interest for the first few months. The Card Swinger applies for numerous of these cards every few months, and makes a big purchase on his/her first card. The card swinger than pays off the debt in monthly payments, from one 0% card to next, until he/she has paid off the debt without achieving any interest.

The Spender

The spender uses his/her credit card for everything. They avoid using a debit card, they enjoy swiping their credit card and signing a receipt over pushing in a pin code. The spender also uses his/her credit card very frequently. They use it for clothes, entertainment, gas, food, bar nights, gummy bears, ANYTHING! The spender also pays off his/her credit card bill in full every month, and does not often pay interest charges because he/she does not accumulate any. This kind of person should get a credit card which offers some sort of points system. In college, I ran a website where people from all local colleges would join, and I was making a significant amount of money for a college student and I was a big spender. My bank offered an air miles credit card. I also received many student points such as discounts on train tickets, discounts at various fast-food and clothing stores. This type of card is perfect for the spender.

Whatever type of card user you are, make sure that your card suits your habits. Don’t settle for the first credit card you see, shop around and look for one that will benefit you the most!

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How to Reduce Your Credit Card’s Interest Rate

Denni — Sun, 29 Mar 2009 06:34:50 +0000

So many of us don’t know that we can get our credit card’s interest rate reduced. However, you do need some kind of circumstances. So basically, if you are doing fine financially, the chance of reducing your credit card’s interest rate is small… Let me give you an example, you have to pay hundreds a month in finance charges on your credit cards, while you have no savings and you are also having a new baby in the family, which leads to other expenses.

So are you ready for the tips? I guess you are… So it’s simple really. The main ingredients is mainly the stubbornness. Haha… So the first thing you have to do is get your information together and then call the credit card company. The rest is playing a little hardball on the phone and hopefully, the company will reduce your credit card’s interest rate.

So this will save you some money, and this money can be used as the foundation of emergency fund, help you out in the debt repayment plan, repay a family member for a debt, and countless other little things that can make all the difference when you’re trying to turn your finances around.

Is This For You?
This tactic works best if you have a substantial amount of debt sitting on credit cards and have largely been able to make your payments up to this point. A few late payments are quite all right, but if you’re being chased by collection agencies, negotiating with the credit card companies won’t really help.

If you’re not carrying a balance on your card or don’t carry a balance regularly, the credit card company is not going to be particularly interested in helping you out because as a customer, you’re not putting much money into their coffers. Simply put, this tactic works best if you have some leverage – you’re currently paying finance charges on your card and you’re threatening to move it to another account.

Another important factor is your current interest rate. If your rate is already around 7.99% or so, there’s not much the credit card company can do to lower the rate. This tactic works best if you have a rate above 13% or so.

Remember, though, any interest rate reduction will help if you’re carrying a balance. A 1% reduction on a card where you’re carrying a $1,000 balance will save you $10 a year. If your balance is higher, you save more. If your interest rate reduction is higher, you save more. For example, if you have a $5,000 balance and get a 5% rate reduction, you’re saving $250 a year from a single phone call – well worth your while.

Preparing for the Call
While you might be tempted to just flip over your credit card and call the card issuer’s number on the back, you’ll have a much greater chance at success if you prepare just a bit in advance.

First, have a copy of your most recent statement with you. Make sure you know what your current interest rate is and also have your account number handy and easy to read. The statement should also provide you with the phone number you need to call.

Next, collect any other offers you might have available to you. See if you have any zero interest or low interest balance transfer offers available to you – in other words, check your recent “junk mail” and/or log on to your online access for your credit card and see what’s available. Get a quote on a personal loan from your local credit union’s website. These will be used as leverage to get your rate reduced.

You should also figure out a target rate to shoot for on the phone. I recommend shooting for 9.9%, but you’ll likely not get a rate that low.

Finally, get in the right mindset. Drink a glass of water. Get yourself calm (because getting worked up on the phone won’t help you), yet motivated to make this work. Then pick up the phone and dial.

Making the Call
The first thing you need to do is get someone on the phone that actually has the authority to change your interest rate. Likely, the first customer service representative that you speak to won’t be able to do that.

So, start off by navigating through their menu until you can speak to a representative. As soon as you can, ask the big question: “Do you have the authority to change my interest rate?” If the answer is no, simply ask, “May I speak to someone who can? Your supervisor, perhaps? Thank you!”

Once you’ve got a person on the phone who has the authority to change your rates, make your case as clearly and succinctly as possible. Here’s a potential script:

“Hello. Lately, I’ve been really having to stretch my finances to make the monthly payments on this credit card, and I need to reduce the interest rate somehow. It would be convenient to keep the balance on this card, but I have some other options that could really save me some money – a zero interest balance transfer offer is sitting right here, for one. Could you reduce the interest rate on my account to, say, 9.9%?”

This puts the ball firmly in their court – and at that point, it’s largely out of your hands. The typical response is a reduction in rate, but not a reduction all the way down to the rate you requested.

Regardless of what you get out of the call, be polite. Say “thank you” for any rate reduction and don’t get enraged if you don’t immediately get a big reduction.

Other Options
Sometimes, you’ll get a rate reduction that makes you happy. At other times, you may not get much of a rate reduction at all – and in that case, you’ll want to do something else. Here are some options.

Seek out balance transfer offers. Moving your balance to another card can help get the finance charge monkey off your back – a useful short term solution.

Seek out another type of debt. Investigate getting a personal loan at your local credit union. A home equity loan is a possibility, but it’s generally a poor idea to change unsecured debt (like your credit card) to secured debt (like a home equity loan).

Lower the offending debt rapidly. Focus all your energies on getting rid of that high interest debt as fast as you can. You might want to work a second job, sell some stuff, or start a side business to generate extra money – and learning how to live cheaper is always a big plus.

For most people with credit card debt, the possibility of success (and the savings that go along with it) with attempting to get your rate reduced is worth the effort involved in picking up the phone and doing it.

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