Credit-Cards.LifeTips.com

Transcription

1 Credit-Cards.LifeTips.com

2 Category: About Student Credit Cards Subcategory: Student Credit Card Tips Tip: Learn how to read your student credit card statement Use your student credit card to learn how credit works and how to successfully manage a credit card account. For at least the first month that you use your credit card, keep the reciepts for all purchases made with the card so you can compare them against the bill. This will help you know if you are getting charged for any extras. If you are carrying a balance from month to month, and only paying the minimum monthly payment, look at how that is affecting how much you owe overall. If you aren't paying down the principal at all, increase your monthly payments. If you have taken out a cash advance, look at the fees associated with that and decide if it was worth it. Most importantly, pay attention to the payment due date. Ideally, you should pay the entire amount due before the due date each month. This will get you on the road to an excellent credit score that will benefit you for years to come. Tip: Read the fine print on your student credit card contract Read the fine print before signing up for a student credit card. Look at the disclosures section to find out what the interest rate will be and if the credit card company will be at liberty to adjust it periodically. Also find out how the interest is calculated. Look at what other fees are associated with the card. If the card offers any introductory interest rates, find out what the interest rate will be when the introductory rate expires and when that will take place. Student credit cards can offer great deals, but you need to be able to recognize a good thing when you see it and avoid the bad. Category: Airline Miles Credit Cards Subcategory: Airline Miles Credit Card Tips Tip: Companion certificates and special rates What good is a free flight if you have to take it alone? Check to see if your airline miles credit card offers companion certificates and special rates for friends, family, and business partners who are traveling with you. With many frequent flyer credit cards, you can earn a companion ticket once a year when you purchase an airline ticket for yourself. This is a great way to travel inexpensively with friends and to keep earning those reward miles for yourself. Tip: Make eating out count

3 If you're one of the multitude of people who are eating out more often these days, why not choose a credit card that turns dining indulgences into vacations? Look for an airline miles credit card that is partnered with the restaurants you frequent most often. By using your frequent flyer credit card at participating restaurants, you can earn double miles or more for each dollar spent. Frequent flyer credit cards that are attached to restaurants often offer thousands of dining choices, so it's likely you'll be able to find something to fit your mood and taste wherever you are. Finding a restaurant that fits your plan is easy. Just go to the credit card home site and pick from the extensive list of participating restaurants. Whether it's for business or pleasure, eating out is a past time that most everyone participates in at some point in time. With these restaurant-supported airline miles credit card, you can reward yourself for eating out. Tip: Travel accident insurance and your credit card If you travel a lot, an airline miles credit card can provide you with security as well as free flights. Frequent flyer credit cards will often have a travel insurance program built in. In addition to travel accident insurance, many airline mileage credit card companies offer emergency airline ticket replacement, hotel theft and lost luggage insurance, unlimited automatic rental insurance, and a photo security option at no extra charge. Check into the particulars with your airline miles credit card to see if the insurance offered meets your needs. Tip: Unlimited miles Put both your regular and "splurge" purchases on your frequent flyer credit cards. Most frequent flyer credit cards don't have limits on the amount of miles you can earn, so every dollar you spend can work toward your next vacation. Make sure you check with your specific airline miles credit card about their limit policies before you sign up with them. Do you have a hefty rent bill each month? See if your landlord will accept credit to automatically earn airline miles each month. Have you had your eye on a new plasma TV? Treat yourself and know that your purchase is getting you that much closer to a free trip. Tip: Use airling miles for your employee incentive program Reward your employees for their hard work by giving them some of the airline miles earned through your corporate airline miles credit card. Most business airline miles credit cards allow for businesses to distribute earned miles to their employees and even allow the business to purchase additional miles for the same purpose. Employees can then use those miles to purchase a flight to the destination of their choice. Category: Bad Credit-Credit Cards

4 Subcategory: Bad Credit Credit Card Tips Tip: Credit limit increases with a credit card for bad credit Periodically increase your credit limit with your bad credit credit card. Many of these credit cards for bad credit closely monitor your payment and spending behaviour and offer more credit accordingly. Having more available credit that you are using responsibly will be a signal to other lenders and credit card companies that you are a good borrower. Tip: Quickly boost a low credit score with a credit card for bad credit By opening an account with a bad credit credit card, you can start improving your credit rating each month. Because credit card companies report to the four major credit bureaus on a monthly basis, every month that you responsibly use your credit card will positively affect your rating. Your on-time payments to your bad credit credit card will prove to other lenders that you are a responsible credit user. Just be sure that you pay the balance on your bad credit credit card each month as non-payment will negatively affect your credit score. Tip: User fees with bad credit credit cards Be sure to read all of the fine print when applying for a bad credit credit card. Credit cards for bad credit often charge fees that will be applied to your account as soon as you open it. Fees can include annual fees, setup fees, and monthly fees, making bad credit credit cards expensive. Shop around for the bad credit credit card that will cost you the least. Tip: When to get a secured line of credit If you have bad credit, a secured credit card may be your best option for establishing credit. Most credit cards are unsecured, meaning that they don't have limits or restrictions attached to them. A minority of credit cards for bad credit consumers are secured, meaning that they are directly attached to your bank account. This drastically lowers the risk for the credit card company because whatever you borrow is backed up by your real money. Although secured credit cards for bad credit usually have higher fees associated with them, the rates vary from card to card. Shop around for a better deal and use your secured credit card to build a better credit rating. Category: Balance Transfers Subcategory: Balance Transfer Credit Card Tips

5 Tip: Avoid balance transfer fees Balance transfer credit cards that offer low percentage rates for credit card consolidation can sometimes surprise you with ugly transfer fees. To avoid balance transfer fees, find out if your credit card charges you for initiating the transfer. Some balance transfer credit cards only apply their low interest rates to transfers that they carry out--usually at the beginning of the contract and then a few more times that they will notify you about beforehand. By checking your contract for balance transfer requirements you can save a lot of money in unexpected fees and higher rates. Tip: Balance transfers with 0% interest Make sure you know how long your 0% interest balance transfer credit card is going to stay low and what it will change to when the offer expires. Some credit card companies give you up to a year, but not all do, so pay careful attention to the terms of the contract. To make the most of the new interest rate, make sure you use the period of time to pay down as much of the principal as you possibly can. Tip: Make your credit card consolidation an opportunity for reform After you've consolidated all your high interest rate credit card balances to a low interest rate balance transfer credit card, don't use your old credit cards for a while. If you do rack up large bills on your accounts it will negatively affect your credit score. Lenders like to see that you can handle credit responsibly and that you have credit to spare. Now that you've done your balance transfer, use the opportunity that the low interest rate gives you to put your extra money toward the debt you already have instead of incurring new debts. Category: Business/Co. Credit Cards Subcategory: Business Credit Card Tips Tip: Build your business credit rating with a company credit card Open a credit card account for your business to establish a solid credit history for your company. Even everyday business purchases can work toward earning your business a higher credit score. By establishing good business credit, you'll make it easier to get future business loands and business credit card accounts. Just be sure to pay your balance off monthly so your credit rating isn't negatively affected. Tip: Rewards with business credit cards If you own your own business, look for a credit card that is specifically offered to

6 businesses. These company credit cards offer cash back, airline miles, and other valuable benefits for making business purchases with your business credit card. This is a great way to make your money go further for your business. Tip: Simplify business accounting with a business credit card Manage your business finances efficiently with the help of a company credit card. When you put your business expenses on a business credit card, you get a quick monthly update of all your business expenses every time your bill arrives. Because business credit card accounts let you download account activity to Quicken, Quickbooks and Microsoft Money, it's easy to categorize your purchases by employee, store, or type of expense. By simplifying your purchasing records with a business credit card, you make auditing and tax preparation much more efficient so you can focus on your more urgent business tasks. Tip: Use a business credit card for your new business While you're starting up your new business, put your business expenses on a business credit card that offers a low introductory rate. You can often find business credit cards that offer 0% interest for a year. It makes sense to take advantage of this great deal, rather than incur debt by using small business loans. Pay off your business credit card before the introductory rate ends to get the most benefit. Category: Choosing Credit Card Offers Subcategory: Credit Card Offer Tips Tip: Avoid credit card offers that charge fees upfront Unless you are trying to rebuild a poor credit score, there's no reason to accept a credit card offer that requires you to pay an upfront fee. Watch out for credit cards that ask you for a deposit fee or a security fee. Although these fees have their place, the best credit card deals will allow you to open an account for free. Tip: Use an online credit card matching service Use an online credit card matching service to quickly find the best credit card deals for you. These services require you to plug your relevant information into a search engine which then sifts through hundreds of credit card deals and presents the best of them for your review. Once you choose one of the credit card offers, the information you provided previously is used to fill out the applicatin for you. You can be confident that you're getting a great credit card deal without having to do any of the legwork yourself.

7 Category: College/University Credit Cards Subcategory: College Credit Card Tips Tip: Build your credit history early in life Getting a college student credit card can help you build a good credit rating that will benefit you later in life. College students who open a college student credit card account, pay all balances on time, and don't exceed their limits are in a better position to get larger and better loans sooner after graduation. These loans can be for things like homes and cars. By responsibly using your college student credit card you can prove to lenders that you are a safe borrower so they'll offer you better interest rates for your loans. Tip: No annual fees and college credit cards When shopping around for a college student credit card be sure to look for one without an annual fee. With a little bit of research it is very easy to find college credit cards that does not require an annual fee. Most major credit card providers offer no annual fee credit cards to college students. If you're a college student, you know that every bit of savings counts. Tip: Use a college credit card to help buy a car Find a college student credit card that helps you save for a new car. Some student credit card companies offer rebates that are meant to be applied toward a new or used car purchase. These car rebate plans typically allow for a limited amount of money to be earned every year for a period of five years. You earn money toward your car rebate every time you use your student credit card to make a purchase. When it's time to buy your car, request your rebate check and go pick out your new wheels. Category: Credit Card Comparison Guide Subcategory: Credit Card Comparison Tips Tip: Comparing rewards Look for a credit card that offers rewards for things that you plan to buy. When you do your credit card comparison, you'll be surprised at the number of creative incentive programs that the credit card companies have established. Credit cards are now available that let you earn airline miles, long distance phone minutes, gas coupons, cash, movie tickets and even a voucher toward a car purchase. Looking around for the

8 best rewards deal can make credit card comparison shopping fun. Tip: Credit card comparisons Don't sign up for any old credit card offer that comes in the mail. By conducting a credit card comparison, you can be sure to find the best credit card for your needs and lifestyle. To easily compare different credit card offers, create a chart that lets you view credit card account information from different cards side by side. You'll want to compare features like percentage rating, fees, and service charges. There are programs available online that will help you set up your credit card comparison chart, so look around for ways to make this process easier for yourself. Tip: Grace periods Your credit card comparisons should include mention of the grace period that each credit card allows. Grace periods are a length of time between 20 and 30 days when interest does not accrue on the charges you have made on your credit card. If the balance is paid in full by the end of the grace period, no finance charges will be added to the account. This is a great way to leverage your credit and build a solid credit score. If you make a payment after the grace period has ended you will be charged interest. Tip: The average daily balance finance charge Find out if your credit card calculates finance charges based on your average daily balance. This means that your finance charges are based on the daily average that you hold in your account. Over the billing period, the daily averages are added together and then divided by the number of days in the billing period to determine interest due. This is more expensive for you than calculating by the adjusted balance method, but less expensive than calculating by the previous balance method. Tip: The daily balance finance charge When you do your credit card comparisons, watch out for credit cards that calculate finance charges based on a daily balance. The daily balance method is to charge interest based on the amount that is owed to the account each day. Although this can be good for some people who pay off their credit cards early in the billing period, it can be expensive for those who carry a balance. Look for a credit card that uses another method to calculate finance charges. Tip: The previous balance finance charge When you are doing your credit card comparisons, look for a credit card that calculates finance charges based on the previous balance. Previous balance finance charges are interest that is accrued based on the final amount owed at the end of the previous billing

9 cycle. Any amount that you have charged since the close of the billing period will not be charged until the next cycle is over. Tip: The two-cycle finance charge Cross credit cards off your credit card comparisons list if they mention a two-cycle billing method for calculating finance charges. With a two-cycle billing method, your credit card company can retroactively charge you interest for items you bought in the previous billing cycle starting on the day you bought the item. This is expensive for you and totally uneccessary. There are many credit cards that calculate finance charges in a way that is much less harmful to your savings account. Tip: Worldwide acceptability If you do a lot of travel, you'll benefit most from having at least one Visa or Mastercard credit card. These are the most widely used credit cards and will be accepted in most areas that you travel. Following Visa and Mastercard are Discover and American Express. A unique benefit of American Express is that you are able to purchase travellers' checks through them. These are insured against theft and accepted in most places. Before you travel to a foreign country, look into your credit card's currency exchange fees. Although there are still a few cards that don't charge you a fee for using credit internationally, most do. It's important to know ahead of time what the fee is going to be. Category: Credit Card Fraud Protection Advice Subcategory: Credit Card Fraud Protection Tips Tip: Destroy unwanted mail credit card offers Protect yourself from credit card fraud by properly disposing of unwanted credit card offers. The credit card offers you receive by mail that are "preapproved" often contain your personal information that can be used to commit information credit card fraud. Keep a shredder handy to make sure that no one has access to your information. Tip: Filing a discrepency with the credit bureaus When checking your credit reports, look specifically for sudden drops in your credit rating and additional credit card numbers that you haven't opened yourself. If you find problems such as these, you will need to report the credit card fraud immediately to the credit bureau. If you obtained your credit report directly through the credit bureaus, you will be able to do this by phone, online or by mail. If you obtained them through another agency, you will have to file a report by mail. The credit bureau then has 30 days to

10 investigate your complaint. After the matter is resolved, request new copies of your credit report from all three reporting services to make sure that the problem is no longer on your record. Always report credit card fraud to the police. Tip: Monitor credit reports for credit card fraud Make sure you are aware of your credit score by obtaining copies of your credit reports from all three of the major credit reporting bureaus. Keeping on top of these credit reports will help you fight credit card fraud by alerting you to possible problems. If your credit score dips unexpectedly on one of your credit reports, you may be the victim of credit card fraud. If this happens to you, contact the credit card company with the fraudulent charge to report it as soon as possible. Many states make it possible for you to get a free credit report once per year or after you have been denied credit. If you'd like to have more frequent access to your credit reports, look for a service that allows unlimited access for a monthly fee. Take advantage of this offer to monitor your credit score and quickly fix any problems that might occur as a result of credit card fraud. Tip: Quickly react to suspicions of credit card fraud By monitoring your credit card account online, you'll be able to more quickly react to suspicions of credit card fraud because activity is updated daily. If you see a fraudulent charge to your account in your online statement, contact your credit card's customer service number right away. Make a note of the time and day of the conversation and the name and extension number of the person you talked to. Also write down details of your conversation including what was promised. Your fast and organized reaction to credit card fraud will lessen the damage and make it easier to fix any problems. Category: Credit Card Services. Subcategory: Credit Card Service Tips Tip: Credit Card Rewards with a Debit Card As much as people use their debit cards for purchases, why shouldn't banks offer credit card rewards to their customers. The convenience of using a debit card is that the consumer does not need to carry cash on them all the time. The debit card deducts the purchase amount from the consumer's account at the time of purchase. Many banks are now offering airlines miles rewards and leisure rewards to customers who use their debit cards. The rewards add up similarly to the way they do with a credit card by offering a specific reward amount for a specific amount of money spent. The rewards do not apply to ATM withdrawals or cash back from merchants. These credit card services are a way for the banks to compete for customers and lure others away from their current banks that do not offer rewards programs for using a debit card. Other rewards

11 by banks include cash back credit cards, Harley Davidson point programs, gift cards, and more. To find out what the consumer's bank offers they should contact them directly to see what options they have. If their bank does not offer any such rewards the consumer may decide to switch to a bank that does. Tip: Making the minimum monthly payments Pay much more than the minimum monthly payment on your credit card to avoid excessive finance charges. This credit card service should only be taken advantage of when there is no way you can pay your bill in full. Most minimum payments required by credit card companies are such a small fraction of the total balance that they don't make much of a dent in the overall debt. By only making the minimum payment, you can end up accruing more interest on your purchase than the original purchase was worth. Ideally, you'll pay you're credit card balance in full each month. If you can't pay all of it, pay as much as you can. Even overpaying the minimum by a little bit each month can have a huge impact on the amount of money you'll pay in the long run. Tip: Treat yourself with a cash back credit card Use your cash back credit card rewards to treat yourself to something special. Many credit cards allow you to earn cash back with every purchase. Some even let you earn extra cash back with specific services that are partnered with the card. The cash back award can add up quickly if you use your card often or for larger purchases. Reward yourself for responsible credit habits with a splurge for yourself. Category: Gas Credit Cards. Subcategory: Gas Credit Card Tips Tip: Gas credit card advantages To easily keep track of your automotive costs, open up a gas credit card account. You can fill up your tank, buy auto supplies, and even have your oil changed using the gas station credit card. You'll be able to easily see how much your car is costing you. Gas credit cards can also offer travel benefits like cash back on hotels, airline tickets, and car rentals. Look into different gas station credit cards to see which one has rewards that will benefit you most. Tip: Use a gas credit card for purchases other than gas Don't limit your gas credit card purchases to just gasoline. Today's gas stations offer multiple products and services that you can purchase with your gas station credit card. Are you hungry or bored on a trip? Get snacks and magazines in the gas station

12 convenience store. Is your car in need of repair? Many gas stations now are equipped to fix your car, change the oil, rotate the tires and more. Many gas stations are attached to car washes or fast food restaurants as well. Category: Help With Credit Card Applications Subcategory: Credit Card Application Tips Tip: Credit card account insurance Whan you are filling out your credit card application, consider signing up for credit card account insurance. By paying a small monthly fee, your credit rating will be protected in case of layoff or sudden disability. You never know when a life-changing event will make it difficult for you to pay your credit card bill. By signing up for credit card account insurance with your credit card application, you can ensure that your credit card bills will be covered in case of emergency. If at any time you decide you no longer want the insurance, you can cancel the service. Tip: Limit the number of credit card applications you fill out at a time Only fill out a few credit card applications at a time to prevent a drop in your credit score. If a lot of credit card companies are checking your credit rating at the same time, it negatively affects your credit score. Lenders get nervous about you if it looks like you are desperate for credit or you are reckless in your credit card habits. If possible, wait six months or more between credit card applications to protect your credit score. Tip: Make sure your credit card application is secure When filling out a credit card application online, look for a padlock icon on the application page or in the address line. This will let you know that the site is secure. If you click on the icon, you should be given security information about the site including the status of the security certificate. Because the personal information you enter into your online credit card application is sensitive, it's worth it to make sure that it will be safe from hackers. Tip: The fine print is a big deal It may sound cliche, but be sure to read the fine print when filling out credit card applications. The fine print is where you will find all information about extra fees, interest rate hikes, and how your account works in general. The fine print is usually titled "Credit Card Disclosures," "Terms & Conditions," or "Disclosure Statements." It may be an eyestrain now, but reading through the fine print now can save you a headache later when mysterious fees start showing up on your statement.

13 Tip: Work swiftly to avoid having your credit card application time out When you sit down to your computer to fill out a credit card application, make sure you are able to complete the application swiftly. Online credit application sites have a built in security feature that causes your credit card application session to log you out automatically if you've been inactive for a period of time. This helps protect you against information theft. To further protect yourself, make sure that you never leave a computer where your personal credit card application information is on the screen. Everyone needs help with credit card applications online. In order to prevent the loss of information being provided over the Internet by filling in an online credit card application, the applicant must complete it in a timely manner. If not, the credit card application has a built in security feature that will automatically time out the application due to inactivity. This is a protective measure that will prevent others from seeing the information typed into the application sitting on the computer. It also protects the applicant from others accessing the information via spy ware applications and other such hacker programs. Therefore, once an applicant sits down to fill in the online application they need to complete it in a timely manner and submit it as quickly as possible to prevent the credit card application from timing out. Also, a person should never walk away from their computer and leave their personal information on the screen because it leaves them to be very vulnerable in the event someone gets it. Category: Instant Approval Credit Cards. Subcategory: Instant Approval Credit Card Tips Tip: Instant approval Apply for an instant approval credit card to get credit quickly. After you give some basic personal information to the company either through a phone representative or online, your credit score is quickly checked and you are either approved or rejected for a line of credit. If you are rejected, you may be able to get the credit card in other ways, but it will take a little bit longer. Tip: Instant credit card approvals over the phone For more personal care from your instant approval credit card company, apply for the credit card over the phone. Be ready with a list of questions to ask the agent that will be handling your application. The agent will lead you through the application process, asking you for the relevant information and filling out the application for you. The agent will also inform you about any introductory offers or rewards programs that are affiliated with your instant approval credit card. Your credit score will be checked and you will know within minutes whether your application has been approved. Find the number to

14 call to speak with a customer service agent on your istant approval credit card application that comes in the mail, or by searching online for the credit card company that you prefer. The best way to take advantage of an instant approval credit cards over the phone is to contact the credit card company directly through their 800 number. The number can be found online by conducting a search or from a direct mail offer. The phone application will be filled in by a customer service representative and is usually recorded to protect the applicant from the illegal use of their personal information. Any special offers will be discussed during the phone application process and the applicant should have a list of questions ready for the representative at that time. This is especially important if the applicant does not have a brochure that reveals the details of how the account works and any fees applied. Once the approval has been processed, all the applicant needs to do is wait for the card to arrive by mail for activation. Category: Learn About Low Interest Credit Cards Subcategory: Low Interest Credit Card Tips Tip: 0% interest rate terms and conditions Before you start charging everything to your new 0% interest rate credit card, make sure you know exactly what the 0% interest rate applies to. By reading the fine print of your contract, you may find out that the 0% interest rate only applies to balance transfers. This would mean that everything you charge to the card regularly may rack up a lot of interest if you don't pay it off during the grace period. Cash advances usually aren't covered by the 0% interest rate introductory offer either. If you have any questions about the details of your contract, call the customer service department for clarification. This can save you from an unpleasant surprise when your 0% interst credit card statement tells you that you owe interst. Tip: 0% interest rate time limitations Before you jump on that 0% interest credit card offer, find out how long the 0% interest rate lasts. This information should be available in the mailer you received or on the Web site you are looking at. Introductory interest rates can last anywhere from a few months to a year. If you can't find that information, call the customer service number and ask them. You'll also need to know what the interest rate will be after the introductory offer expires. If it's too high, look elsewhere for a better 0% interest rate credit card offer. Category: Prepaid Credit Cards. Subcategory: Prepaid Credit Card Tips

15 Tip: No interest charges or late fees with a prepaid credit card Stop worrying about late fees and interest payments when you get a pay as you go credit card. Because these prepaid credit cards are preloaded with money, your purchase amounts are deducted from the balance, meaning you aren't borrowing money and aren't required to pay interest. That doesn't mean that prepaid credit cards are free though. You may have to pay other fees to maintain the card such as application fees and opening balance fees. Check with the individual prepaid credit card companies to find out what their policies are.