Have you heard of zero percent credit cards?
These types of credit cards are quickly gaining popularity among cardholders as this is a very attractive offer.
It is important that you discipline yourself when it comes to using credit cards as they can potentially become a danger tool.
For instance, in order to pay bills online or to purchase items online, you will need a credit card. Many consumers choose to avoid using credit cards simply because if the high interest rates that are attached to many of these cards. I am going to discuss how to take advantage of credit cards without getting locked into a high interest rate.
Several big name credit card lenders such as Citibank, Discover and American Express, offer zero percent credit cards. If you credit score is in good standing, a 0 percent interest credit card may have many perks that you can take advantage of.
One thing that you must understand is that this rate will not remain at zero percent. This is simply an introductory rate for the card in question. Typically, most introductory periods only last for the first six to twelve months. As you may have already guessed, at the end of the introductory period, cardholders will be required to pay a much higher interest rate.
In order to get approved for zero percent credit cards, you must have a good credit rating. I suggest that you check your credit score prior to applying for this type of card so that you will know what your exact score is.
Remember, too many credit inquiries can have an effect on your overall score. The next step is to contact the creditor and find out about their credit approval guidelines. Each lender has a different definition of good credit.
It is also very important to carefully read the terms of agreement for the card. This should be done before you submit the completed application. This is where you will find out important information regarding late fees, over-the-limit-fees, potential penalties for late payments and how long the introductory period will last.
Be very careful to make your monthly payments on time! It is typical of zero percent credit cards to end the interest-free period immediately after just one late payment is made. In fact, many of the creditors will monitor your other credit card accounts and if a late payment is received by another credit account, they reserve the right to end the zero percent interest agreement. It is as if the credit issuer is slapping you on the hand.
When should you use zero percent credit cards? Well, these types of cards are perfect for financing larger purchases that you intend to payoff within a few months. This is simply because you won’t be accumulating interest charges on the purchase. If you wait to completely pay off the larger purchase, you will end up paying more than you planned. Zero percent credit cards are more practical than using high interest credit cards or obtaining a bank loan.
Will a zero percent credit card work for you? Check your credit score, find out the details and if you fit into the guidelines, go for it! Used wisely, zero percent credit cards can help people buy items that they may not have been able to do with cash.
Get the Best Credit Card for You Today!
0 percent credit card offers have proven to be a popular means for consumers to maintain cash flow for as long as twelve months with few consequences.
Around the year 2000 and shortly after the collapse that followed the terrorist attacks of 9-11, the U.S. economy ushered in a Renaissance period of sorts in terms of credit offers.
During that period of time, no interest credit card loan offers were everywhere, including college campuses, stuffed in mailboxes, and everywhere online.
The credit card industry were attempting to lure in new customers in order to stimulate the economy. Most consumers that are credit conscious are looking for new deals and promotions that would in way or another provide personal benefits to the credit card users.
The major card issuers promoted 0 percent credit cards with 12 month teaser offers to attract customers. The idea was to tempt new applicants with introductory offers and ultimately turn them into long-term cardholders and spenders who carry balances forward.
It is a wise idea to not overspend your monthly credit limit abilities. Most credit card companies that are on the market today intentionally attempt to lure many consumers into debt by increasing the interest after a trial period. For people that do carry balances forward on their 0 percent interest credit cards, this can turn into financial debt.
One rule of thumb to follow is to only charge the amount that you can afford to pay off on your monthly statement. This tip will help you avoid getting into trouble with whichever credit card you use.
Eventually, this led to fierce competition among the card companies as each one introduced its own versions of the classic 0 percent credit card. The competition led to increases in the promotional period, causing it to grow from an initial 6 months to 12 months or longer.
After a period of time, some cards even extended the zero percent balance transfer periods indefinitely, leading to what ultimately amounted to a zero percent balance transfer for life credit card offer. The only thing keeping the balance transfer tidal wave in check was the existence of balance transfer fees, usually set at the rate of three percent of the total amount transferred.
Consumers that use 0 percent credit cards on purchases should always attempt to pay off the total statement balance before the end of the promotional period. Typically, once the promotional period ends, the card then reverts to very high interest rates. After you do your research on the available 0 percent credit card offers, you will more than likely only find a few that are truly reasonable. It is very important to pay attention to the details of the credit offer in question as balance transfer fees may apply.
Do enough research before you apply for a 0 percent credit card so that you thoroughly understand the terms and conditions. Remember to pay close attention to all the fees and charges that are tied to the use of the 0 percent credit card. As long as you follow these guidelines and do your research, you should be able to find a 0 percent credit card that fits your needs!
Get the Best Credit Card for You Today!
It is important that you choose the best travel credit card to take along with you whenever you are going to be traveling.
This is more important that just selecting your best shoes for walking. It pays, sometimes very well, to pack the correct credit card.
According to Curtis Arnold, founder of CardRatings.com, “most credit cards have great travel benefits that consumers just aren’t aware of”.
With that being said, some cards are clearly better than other to use. The best travel credit card to use will offer a wide assortment of different types of bonus rewards, extra travel insurance or better deals on purchases that are made overseas.
I am going to discuss how to figure out which of your current credit cards should make the packing list.
Leave the Debit Card at Home
Most people will automatically take their debit card with them on vacation. Scott Biker, founder of DebtSmart.com states that “You’re better protected away from home with a credit card.” Here are a few of the reasons why:
Zero liability
With your best travel credit card, you will have a much easier time resolving any unauthorized charges should you card happen to be lost or stolen. Under the Fair Credit Reporting Act, your credit-card issuer can’t hold you responsible for such charges. However, your liability for unauthorized debit card transactions is determined by individual bank policy and the Electronic Funds Transfer Act – depending on how quickly you are able to notify your bank and the circumstances of the charges, you may not be reimbursed at all.
Dispute of Charges
Have you discovered a twice-charged restaurant tab or perhaps a hotel bill full of sneaky fees? This is not a problem if you are using your best travel credit card. Disputing a charge is as simple as calling up the issuer. Until the dispute is resolved, you will not be liable for any charges. Charge disputes can carry hefty fees for merchants, so the mere threat of a chargeback is often enough incentive to resolve most customer service dilemmas.
Review Card Benefits
According to Arnold, one of the biggest best travel credit card rewards is the insurance coverage for car-rentals. Today, more and more cards are adding additional benefits for travelers in ways that the consumer should be aware of. For example, Discover cardholders automatically receive air travel accident insurance for airfare that is already booked. On the other hand, Chase reimburses you for the cost to replace essential items, up to $300. This is a great deal for you in case your baggage is delayed. American Express is famous for world-wide assistance that is offered through bureaus and the company’s hotline for everything from medical emergencies to lost wallets.
Search for Deals
When using your best travel credit card, it is not uncommon to be offered extra discounts when you use that particular card to spend money with a partner retailer. For instance, if you use your Visa card to book a trip with Celebrity Cruises, you will receive a two-category cabin upgrade and free travel insurance or prepaid gratuities. You can easily save 20% or more by scanning for these deals before you make travel arrangements. It’s also worth checking with your individual issuer. Citibank cardholders, for example, get discounts of 10% off car-rental rates at Hertz.
Figure in Fees
It is very important that you choose the best travel credit card to take with you especially when you will be vacationing abroad. The reason for this is that you can shave as much as 3% off of your vacation purchases – the equivalent to what most issuers charge for foreign transactions. It pays to shop around. Visa and MasterCard each charge a flat fee of 1% and Bank of America charges a total of 3%. Currently, Capital One and Discover are the only major credit cards that do not assess any foreign transaction fees.
Call Up Your Issuer
Once you have chosen which best travel credit card you are going to use on your vacation, get your credit card company on the phone and let them know that you are going on vacation and are going to be spending a lot of money. This will have great results for you. Representatives are eager to offer perks to their customers like a higher credit limit and a temporary lower APR. You may also be approved to receive 0% on purchases for a few months.
Get the Best Credit Card for You Today!
Do You Own a Cash Rewards Credit Card?
Cash rewards credit card programs offer incentives for cardholders so they use these cards for everyday purchases.
The merchant who accepts your cash rewards credit card usually pays a commission fee to the bank that issued the card. As a reward for using their card, the issuing bank will provide a percentage of the commission back to the card holder.
On the other hand, cash reward credit cards may just offer their monetary incentive to the cardholder in the form of an annual credit to the account or the amount is paid to the cardholder via check.
Banks that issue some type of cash rewards credit card to their customers do exactly this to entice buyers with offers of rebates that carry as high as 5% back on certain types of purchases. Of course after the introductory period is over, the percentage rate usually drops back to the 1.5% to 2% range.
There are some types of cash rewards credit cards that offer specific types of rewards instead of cash. For example, sometimes gas stations will offer a cash rewards credit card that can be used on gasoline purchases. After a specific amount is purchases in gasoline, you will then receive a rebate voucher that can be used towards your next fill-up. This is not exactly the same as receiving a credit on your account or a check in the mail, but since we all need gasoline for our vehicles; it is the next best thing to cash.
There are many programs which include familiar names such as the Visa cash rewards credit card and the American Express cash rewards credit card. Visa and American Express actually represent a group of banks that have banded together and set the terms for the use of the credit cards that they provide.
Generally, small banks join forces with larger global banks to move from offering smaller, more localized credit service to a widespread service that would be accepted worldwide. This helps to increase the business of the bank by being able to reach potentially new customers.
Any cash rewards credit card that is offered by a particular department store is called a house card. As a reward for card use, these types of credit cards will typically offer cash back discounts for purchases made on certain services or products. House cards are how credit cards were originally used in the United States.
A hotel or a gasoline company would issue a customer a card to be used specifically for any merchandise solely at that particular place of business. American Express and Diners Club were the first two cards that became popular in the United States as well as being accepted at a wide variety of business establishments.
A cash rewards credit card can offer you the convenience of being able to make purchases without having to carry cash. However, you should use these types of cards very wisely. Make sure that you review contracts thoroughly and pay attention to find print.
You want to make sure that you are getting the best deal for the types of purchases that you will make. Also as a reminder, check the APR that is offered and be conscious of how quickly you intend to pay the balance of your cash rewards credit card in full.
0 balance transfer cards provide an allure for a lot of credit card users. Many people will quickly switch from a high interest balance card to a 0 balance transfer card without much hesitation or thought.
Were you aware that the wrong choice and incorrect use of 0 balance transfer cards can actually progress towards debt problems that are worse?
In this article, I am going to discuss some important information that should help you in making a decision on whether or not these types of credit cards are appropriate for you.
There are a variety of credit cards out there that promise 0% APR for cardholders. Don’t get too excited about these offers before you check into all of the information. The last think you want is to be stuck with a card that has an even higher APR than your current one just because did not check the regular rate and the length of the introductory period. As with any other credit card offer, 0 balance transfer cards can be beneficial to you if used in the correct manner.
It is also important to keep in mind that 0 balance transfer cards will only accept applicants with a good credit history. I suggest you check out what your credit score is with one of the three major credit reporting bureaus prior to completing any applications.
If you have a low credit score, your application will most likely be declined and as a result more damage will be done to your credit rating. A good idea for people that have a poor credit history is to seek out additional solutions to help eliminate any debts.
On one hand, there are several people with multiple credit cards that are under the assumption that the best way to benefit from 0 balance credit cards is to transfer all of their charges to the new card. This may not be the case for everyone!
Take note that each time you transfer a balance successfully, there is a balance transfer charge that is assessed. To avoid paying several extra charges, I suggest that you analyze each of your account very carefully to find out which ones have the highest rates.
It is an important priority to eliminate your highest credit card debts first; with that being said, these are the balances that you transfer to your card first. As soon as you are done completing your payments, you can then consider transferring the rest of your balances while the 0% interest still applies. Keep in mind that the 0% offer may not apply to new purchases that you make.
To sum it all up, 0 balance transfer cards are best used for paying off transferred balances. If you want to make a new purchase, you should consider your other options for payment such as cash or check rather than charging the amount to your credit account.
Here’s a concept, don’t buy the item unless you absolutely need it! You have to weigh the importance of what you are going to buy. It is always best to spend within your means, especially when you will be using a credit card.
After reading the above information, I hope that you are more educated on 0 balance transfer cards and understand how to properly use them. Remember, an educated consumer is a happy consumer!
Find Your Next Credit Card Today!
