With a rising number of people experiencing credit woes, where are they to turn for a credit card deal? In the past it was difficult to qualify for a reasonable credit card offer with a poor credit rating. Most people with a low credit rating were stuck with a secured credit card, which requires a deposit for use, or a card that had a very high variable interest rate associated with it. Neither of these options are ideal. But in today’s world there are actually poor credit credit cards designed for these specific users that offer reasonable deals. Not only are these deals getting better, but they can also be a good way to start rebuilding a positive credit history.
Poor credit credit cards are specifically designed for users with a low credit score. Issuers are becoming increasingly aware that people deserve a second chance and designed these cards to provide that chance. By obtaining a poor credit credit card, users are taking the first step towards fixing their credit woes. These cards offer the benefit of reporting the cardholder’s payment history to the credit bureaus. This is a rare feature because most cards only report negative information or charge a fee to report positive information to the bureaus.
There are plenty of offers available for people with poor credit these days. Many of these cards offer a reasonably low interest rate, but they generally have an annual fee and application fee associated with them. These fees can vary from card to card, so it is important to look carefully at all offers.
While using a poor credit credit card can assist users in repairing their credit rating, the essential thing to remember is to use the card responsibly. If someone decides to apply for a poor credit credit card, they must make sure to make their payments on time to avoid damaging their credit even more. If they continue to miss payments or make them late, they will only further hurt their credit rating. The ideal way to utilize the credit card is to make a few small purchases with the card each month. For example, some people will use the card to pay a set amount of bills each month, such as their cable and phone bill. The key is to always pay this balance off in full at the end of each month. This shows the credit card issuer they are capable of using the card responsibly by paying off the balance when it is due. It is also important to remember that improving one’s credit rating does not happen overnight. The process takes time and requires continued action.
Friday, August 31, 2007
Thursday, August 30, 2007
Top Rated Travel Rewards Card
Even thought there are a lot of travel rewards credit cards cruising around, how is one to decide which is the best offer? According to the CardOffers.com rating system, the Miles Card by Discover finishes at the front of the pack. The Miles Card allows users to earn double miles on the first $3,000 spent on travel and restaurant purchases, and one mile for every dollar spent on general purchases. This card also allows cardholders to earn 1,000 bonus miles for every month that a purchase is made during the first year, allowing users to earn up to12,000 bonus miles. The miles earned on the card can then be redeemed for free or reduced airfare on most major U.S. based airlines. What also makes this card attractive is the 0% introductory rate offered for the first year as well as no annual fee. Like other Discover cards, the cardholder will also receive benefits such as auto rental insurance, up to $500,000 in travel accident insurance, and various internet account services.
Top Rated Cash Rewards Card
With all the cash back credit cards available, how does someone choose the best offer? Based on CardOffers.com’s statistics, the Discover More Card is the best choice for users. This card allows users to earn a 5% rebate on purchases made in popular categories such as home, apparel, and many more. Users can also earn up to a 1% rebate on general purchases and .25% when making purchases at select warehouse clubs and discount stores. As a bonus, cardholders can earn double Cashback Bonuses when they use their rebates towards gift certificates from Discover Card Partners. This card also offers a 0% introductory rate for the first year with no annual fees. Cardholders also receive benefits like auto rental insurance, up to $500,000 in travel accident insurance, and fraud protection.
Wednesday, May 16, 2007
What to Look For in a Credit Card
With all of the credit card offers floating around today, how is one to decide which offer best fits their individual needs? Most credit cards today are designed to be used by a certain types of cardholders, and in order to get the full benefit from any given card you will need to pick the one that best fits your own personal needs. I know that this process can be difficult and sometimes seem overwhelming, but this article is designed to point out what you need to look for when deciding which credit card is right for you.
• Introductory Rate
Most credit cards offer a special introductory rate for a specified time period when you sign up for the card. The usual introductory offer you will see is for a 0% interest rate on purchases and balance transfers. Although most of the deals will look similar, you will want to pay special attention to the length of this introductory offer. Some credit cards only offer this special rate for the first 3 or 6 months, but if you look around you will find some cards that offer the introductory rate for the first 12 months that you own the card. When comparing cards, you should consider the ones that offer the lowest introductory rate for the longest time period.
• Interest Rate
After analyzing the introductory rate, you will want to look at what the interest rate will be for the life of the credit card. This number can vary from card to card so you will want to make sure that you compare a few cards to find the most competitive rate. The most important thing to look for when reviewing the interest rate is to check to see if the interest rate is variable or fixed for the life of the card. A variable interest rate can change over time, and this is not ideal because your interest rate can start of at a competitive rate and end up rising to a very high rate over time. You will want to make sure that you are not signing up for what you believe to be a low interest rate card, only to find out later that the interest rate is variable, and will go up in the future. When possible, you will want to find a credit card that offers a fixed interest rate.
• Fees
Some credit cards will charge an initial setup fee and/or an annual fee for using the card. Whether to apply for and to carry a card with such fees can be a tricky decision, because some of the cards that charge an annual fee may offer a low, fixed interest rate, or allow you to participate in an exceptional rewards program. Card features such as these can make the fee worth your while. To make the decision on whether or not the fee is worth paying, you will have to compare the card with similar cards that do not charge fees, and examine the extra benefits of the card that charges the fee. If the card with the fee offers a better rewards program that you plan to participate in, or has a lower interest rate then the fee may be worth paying.
• Benefits
Every credit card offers some benefits, however, they are not all equal. Some of the benefits that are available through certain cards are special discounts, travel insurance, lost luggage insurance, rental car insurance, identity theft insurance, purchases protection, and return protection to name a few. You will want to review the list of benefits for each card that you are comparing to find the card that offers the best benefits for your needs. For example, if you travel often, you may want to look for a credit card that offers you travel insurance, lost luggage insurance, and rental car insurance, since these benefits are services that you could potentially take advantage of.
• Perks
One of the best kept secrets when it comes to credit cards is the special perks that are available to the cardholders. You can find perks for almost anything that you wish to purchase if you look in the right place. These perks can range from discounts on items such as rental cars, clothing, sporting goods, restaurants, and home décor to give a few examples. These perks allow you to receive discounts on products that you may already be purchase using your credit card, but have not been receiving the discounts because you were not aware of how to take advantage of these offers. Most perks are available for the various card types that most cardholders currently carry, such as Visa, MasterCard or American Express, but there are also certain perks available for specific cards as well. These credit card perks can be one of the best advantages of owning a credit card, so make sure that you take advantage of these discounts when available.
• Rewards
The most important factor that you should consider when deciding on a credit card is the rewards program that is associated with the card. Most credit cards allow you to participate in a rewards program that allows you to earn points when making purchases at participating retailers. These points can then be used towards discounts or free products, based on the rewards program that the specific card offers. Some of the numerous rewards programs available are hotel, travel, gas, airline, auto, and cash back rewards. These programs are a great way for you to earn discounts while you are making normal purchases. For example, if you stay at a certain hotel chain or fly on a certain airline regularly, then you would benefit from using a credit card that offers rewards when you make a purchase from that retailer. This will allow you to earn points on your purchases and use those points for future discounts.
After reading this article, you now know what to look for when you are ready to apply for a new credit card. Make sure that you find a card the offers a competitive interest rate, benefits that fit your needs, and most importantly allows you to participate in a rewards program that you plan to take advantage of. If you look at these points when reviewing your next card you will be sure to get a credit card that will benefit you.
• Introductory Rate
Most credit cards offer a special introductory rate for a specified time period when you sign up for the card. The usual introductory offer you will see is for a 0% interest rate on purchases and balance transfers. Although most of the deals will look similar, you will want to pay special attention to the length of this introductory offer. Some credit cards only offer this special rate for the first 3 or 6 months, but if you look around you will find some cards that offer the introductory rate for the first 12 months that you own the card. When comparing cards, you should consider the ones that offer the lowest introductory rate for the longest time period.
• Interest Rate
After analyzing the introductory rate, you will want to look at what the interest rate will be for the life of the credit card. This number can vary from card to card so you will want to make sure that you compare a few cards to find the most competitive rate. The most important thing to look for when reviewing the interest rate is to check to see if the interest rate is variable or fixed for the life of the card. A variable interest rate can change over time, and this is not ideal because your interest rate can start of at a competitive rate and end up rising to a very high rate over time. You will want to make sure that you are not signing up for what you believe to be a low interest rate card, only to find out later that the interest rate is variable, and will go up in the future. When possible, you will want to find a credit card that offers a fixed interest rate.
• Fees
Some credit cards will charge an initial setup fee and/or an annual fee for using the card. Whether to apply for and to carry a card with such fees can be a tricky decision, because some of the cards that charge an annual fee may offer a low, fixed interest rate, or allow you to participate in an exceptional rewards program. Card features such as these can make the fee worth your while. To make the decision on whether or not the fee is worth paying, you will have to compare the card with similar cards that do not charge fees, and examine the extra benefits of the card that charges the fee. If the card with the fee offers a better rewards program that you plan to participate in, or has a lower interest rate then the fee may be worth paying.
• Benefits
Every credit card offers some benefits, however, they are not all equal. Some of the benefits that are available through certain cards are special discounts, travel insurance, lost luggage insurance, rental car insurance, identity theft insurance, purchases protection, and return protection to name a few. You will want to review the list of benefits for each card that you are comparing to find the card that offers the best benefits for your needs. For example, if you travel often, you may want to look for a credit card that offers you travel insurance, lost luggage insurance, and rental car insurance, since these benefits are services that you could potentially take advantage of.
• Perks
One of the best kept secrets when it comes to credit cards is the special perks that are available to the cardholders. You can find perks for almost anything that you wish to purchase if you look in the right place. These perks can range from discounts on items such as rental cars, clothing, sporting goods, restaurants, and home décor to give a few examples. These perks allow you to receive discounts on products that you may already be purchase using your credit card, but have not been receiving the discounts because you were not aware of how to take advantage of these offers. Most perks are available for the various card types that most cardholders currently carry, such as Visa, MasterCard or American Express, but there are also certain perks available for specific cards as well. These credit card perks can be one of the best advantages of owning a credit card, so make sure that you take advantage of these discounts when available.
• Rewards
The most important factor that you should consider when deciding on a credit card is the rewards program that is associated with the card. Most credit cards allow you to participate in a rewards program that allows you to earn points when making purchases at participating retailers. These points can then be used towards discounts or free products, based on the rewards program that the specific card offers. Some of the numerous rewards programs available are hotel, travel, gas, airline, auto, and cash back rewards. These programs are a great way for you to earn discounts while you are making normal purchases. For example, if you stay at a certain hotel chain or fly on a certain airline regularly, then you would benefit from using a credit card that offers rewards when you make a purchase from that retailer. This will allow you to earn points on your purchases and use those points for future discounts.
After reading this article, you now know what to look for when you are ready to apply for a new credit card. Make sure that you find a card the offers a competitive interest rate, benefits that fit your needs, and most importantly allows you to participate in a rewards program that you plan to take advantage of. If you look at these points when reviewing your next card you will be sure to get a credit card that will benefit you.
Thursday, May 10, 2007
What is Two Cycle Billing?
The term “two cycle billing” may not be common knowledge to all credit card users, but it is a concept that everyone should be aware of. Some issuers have been moving away from the average daily billing cycle and changing over to the two cycle way of calculating the interest earned on balances. Two cycle billing does not greatly affect users that tend the carry a balance, but it does however affect cardholders that pay there balance off monthly.
In order to understand two cycle billing you must first understand the average daily billing method, which will now be explained. Let’s say that you own a credit card with a 15% interest rate and your billing cycle for the month of April runs from the 1st through the 30th of the month. At the beginning of the month you have a balance of $0 on the card. Now, on the 10th of April you make a purchase of $1000, which means you are going to carry that balance for 20 days until the current billing cycle ends. You must now calculate the average daily balance for the month of April. To do so you must first multiply the balance of the card by the number of days the balance was carried ($1000 × 20 days = 20,000), then you will divide that number by the total days in the billing cycle (20,000 ÷ 30 = 666.67). You have now figured out that your average daily balance for April would be $666.67. If this card uses the average daily billing cycle and you started the month with a $0 balance, there will be no interest charged as long as the April balance is paid off in full. This billing cycle essentially gives you a grace period on purchases as long as the balance is paid off in full each month. But, if this credit card uses the two cycle billing method, you would be charged interest for the month of April when you receive your bill in May because your average daily balance is based on the last 2 billing cycles. So, when you receive your bill for May, you will have a finance charge that is due, even though your balance was paid off in full for April and you didn’t make any purchases with the card in May. In order to figure out how much your interest would be, you will take the average daily balance × number of days in the billing cycle × periodic interest rate. Below are the calculations to figure out your interest due in May.
Average daily balance 1000 × 20 ÷ 61 = 327.87
Number of days in billing cycle 30 + 31 = 61
Periodic interest rate 15 ÷ 365 = .0411
Finance charge for May 327.87 × 61 × .000411 = 8.22
Based on the interest rate of 15% stated above, you will receive a bill in May that shows a finance charge of $8.22 even though the balance was paid in full in April. As you can now see, the two cycle billing method of calculating interest is not ideal for users that choose to pay there balance of in full each month. Essentially, a two cycle billing card will start charging interest from the day the purchases is made, which will eliminate the grace period that is provided by a card that uses the average daily billing method.
As you can now see, the two cycle billing method of calculating interest would mainly effect users that always pay their balance off in full because they will still be paying interest on purchases even when there is no balance being carried over on the card. So, next time you are looking for a new credit card make sure you look at the fine print to check for what type of billing method they use for that card.
In order to understand two cycle billing you must first understand the average daily billing method, which will now be explained. Let’s say that you own a credit card with a 15% interest rate and your billing cycle for the month of April runs from the 1st through the 30th of the month. At the beginning of the month you have a balance of $0 on the card. Now, on the 10th of April you make a purchase of $1000, which means you are going to carry that balance for 20 days until the current billing cycle ends. You must now calculate the average daily balance for the month of April. To do so you must first multiply the balance of the card by the number of days the balance was carried ($1000 × 20 days = 20,000), then you will divide that number by the total days in the billing cycle (20,000 ÷ 30 = 666.67). You have now figured out that your average daily balance for April would be $666.67. If this card uses the average daily billing cycle and you started the month with a $0 balance, there will be no interest charged as long as the April balance is paid off in full. This billing cycle essentially gives you a grace period on purchases as long as the balance is paid off in full each month. But, if this credit card uses the two cycle billing method, you would be charged interest for the month of April when you receive your bill in May because your average daily balance is based on the last 2 billing cycles. So, when you receive your bill for May, you will have a finance charge that is due, even though your balance was paid off in full for April and you didn’t make any purchases with the card in May. In order to figure out how much your interest would be, you will take the average daily balance × number of days in the billing cycle × periodic interest rate. Below are the calculations to figure out your interest due in May.
Average daily balance 1000 × 20 ÷ 61 = 327.87
Number of days in billing cycle 30 + 31 = 61
Periodic interest rate 15 ÷ 365 = .0411
Finance charge for May 327.87 × 61 × .000411 = 8.22
Based on the interest rate of 15% stated above, you will receive a bill in May that shows a finance charge of $8.22 even though the balance was paid in full in April. As you can now see, the two cycle billing method of calculating interest is not ideal for users that choose to pay there balance of in full each month. Essentially, a two cycle billing card will start charging interest from the day the purchases is made, which will eliminate the grace period that is provided by a card that uses the average daily billing method.
As you can now see, the two cycle billing method of calculating interest would mainly effect users that always pay their balance off in full because they will still be paying interest on purchases even when there is no balance being carried over on the card. So, next time you are looking for a new credit card make sure you look at the fine print to check for what type of billing method they use for that card.
Friday, April 6, 2007
10 Reasons Why Your Company Should Own a Business Credit Card (Part 2)
6. Higher spending limits
Business cards offer a higher spending limit than a standard credit card. This allows companies to make larger purchases and gives business owners more room to carry a balance on the card.
7. Employee and company spending limits
Business cardholders are able to set spending limits for the entire company, as well as for each individual employee. This is a great way to help you and your employees stay within a set budget. This allows business cardholders to control the companies spending habits.
8. Additional cards for free
Business cardholders will find it easy to receive additional cards for their employees and other potential cardholders within the business, all of which will display the names of each additional cardholder. Most card issuers will charge cardholders a fee for additional cards, but with a business credit card account you will receive additional cards at no extra charge.
9. Eliminate need for cash and checks
A major advantage of owning a business credit card is that it eliminates the need for cash and checks. Consider the advantages of this in situations such as business related travel. Business cardholders no longer have to give their employees cash advances, or take the time to add up receipts when they return from business travel to reimburse them for expenses. Instead, business cardholders can use a company card for their expenses, and all of their spending becomes far easier to track.
10. Expense reporting
Another fantastic reason for owning a company card is the advanced expense reporting that is offered by the issuers. The credit card companies now offer expense reporting that is compatible with Quicken and Microsoft Money, which allows cardholders the ability to directly tie these reports in with their accounting data. This feature may be especially useful to cardholders during tax season, as it will give those that take advantage of the service exact amounts of their spending and provide useful backups for any receipts that may have been lost or misplaced.
Now that you see all of the advantages of owning a business credit card, don’t you think it is time for you to go out and apply or one today?
Online credit card application
Business cards offer a higher spending limit than a standard credit card. This allows companies to make larger purchases and gives business owners more room to carry a balance on the card.
7. Employee and company spending limits
Business cardholders are able to set spending limits for the entire company, as well as for each individual employee. This is a great way to help you and your employees stay within a set budget. This allows business cardholders to control the companies spending habits.
8. Additional cards for free
Business cardholders will find it easy to receive additional cards for their employees and other potential cardholders within the business, all of which will display the names of each additional cardholder. Most card issuers will charge cardholders a fee for additional cards, but with a business credit card account you will receive additional cards at no extra charge.
9. Eliminate need for cash and checks
A major advantage of owning a business credit card is that it eliminates the need for cash and checks. Consider the advantages of this in situations such as business related travel. Business cardholders no longer have to give their employees cash advances, or take the time to add up receipts when they return from business travel to reimburse them for expenses. Instead, business cardholders can use a company card for their expenses, and all of their spending becomes far easier to track.
10. Expense reporting
Another fantastic reason for owning a company card is the advanced expense reporting that is offered by the issuers. The credit card companies now offer expense reporting that is compatible with Quicken and Microsoft Money, which allows cardholders the ability to directly tie these reports in with their accounting data. This feature may be especially useful to cardholders during tax season, as it will give those that take advantage of the service exact amounts of their spending and provide useful backups for any receipts that may have been lost or misplaced.
Now that you see all of the advantages of owning a business credit card, don’t you think it is time for you to go out and apply or one today?
Online credit card application
Thursday, April 5, 2007
10 Reasons Why Your Company Should Own a Business Credit Card (Part 1)
No matter the size of your company, be it large or small, you may still benefit from owning a business credit card. This article presents 10 reasons why having a credit card that is specificly designed for business is a beneficial decision for both you, your company, and it’s employees.
1. Adds and air of legitimacy
Owning business credit cards will bring a level of respect to your company. Whether you are taking a client out on a business related outing, or just making a general purchase, paying with a business card shows people that your company is a legitimate business. In order to get a company credit card, the business must be well established, and this shows that your company has a level of respect associated with it.
2. Builds a positive credit history
Just like in your personal life, it is a necessity to build good credit for your business to ensure its future growth. Through the proper use of a company card you will establish a good credit history. This will help your business as you move forward, and look to expand your business in the future.
3. Better perks and discounts
Most business cards offer better perks and discounts for their users than similar cards that are not specificly designed for business owners. Business cardholders receive special rates on gym memberships, cell phone plans and devices, office supplies and equipment, rental cars, hotel stays and airfare to name only a few. These discounts are a great way for you to save money when you are making normal business purchases.
4. Earn rewards
There are business rewards cards currently available that allow cardholders to earn rewards when making purchases. Some of the reward categories that business cardholders can participate in are airline, hotel, gas, restaurant, and cash back. These rewards are earned when the cardholder makes purchases with their business card. Points or miles can then be redeemed towards discounts on future purchases.
5. Extra protection Business credit cards offer higher levels of protection for their users to help reduce the risk of problems that may arise. Some of the protection features available to users are traveler’s insurance, lost luggage insurance, auto rental insurance, as well as extra layers of identity theft monitoring. These additional features are a great way to protect you and your employees.
1. Adds and air of legitimacy
Owning business credit cards will bring a level of respect to your company. Whether you are taking a client out on a business related outing, or just making a general purchase, paying with a business card shows people that your company is a legitimate business. In order to get a company credit card, the business must be well established, and this shows that your company has a level of respect associated with it.
2. Builds a positive credit history
Just like in your personal life, it is a necessity to build good credit for your business to ensure its future growth. Through the proper use of a company card you will establish a good credit history. This will help your business as you move forward, and look to expand your business in the future.
3. Better perks and discounts
Most business cards offer better perks and discounts for their users than similar cards that are not specificly designed for business owners. Business cardholders receive special rates on gym memberships, cell phone plans and devices, office supplies and equipment, rental cars, hotel stays and airfare to name only a few. These discounts are a great way for you to save money when you are making normal business purchases.
4. Earn rewards
There are business rewards cards currently available that allow cardholders to earn rewards when making purchases. Some of the reward categories that business cardholders can participate in are airline, hotel, gas, restaurant, and cash back. These rewards are earned when the cardholder makes purchases with their business card. Points or miles can then be redeemed towards discounts on future purchases.
5. Extra protection Business credit cards offer higher levels of protection for their users to help reduce the risk of problems that may arise. Some of the protection features available to users are traveler’s insurance, lost luggage insurance, auto rental insurance, as well as extra layers of identity theft monitoring. These additional features are a great way to protect you and your employees.
Tuesday, April 3, 2007
Bank of America – TripRewards MasterCard
If you are a current or soon to be member of the TripRewards program then the TripRewards MasterCard credit card is ideal for you. This card, issued by FIA Card Services, allows it’s users to earn 2 points for every dollar spent on general purchases and 13 points for every dollar spent at participating hotels. Some of the hotels that are part of the rewards program are AmeriHost Inn, Days Inn, Howard Johnson, Knights Inn, Ramada Inn, Super 8, Travelodge, Wingate Inn and Wyndham Hotels. The TripRewards program is fee to join and allows it’s members to earn additional points that can be combined with points earned from the card. The TripRewards MasterCard offers a 0% introductory rate for balance transfers and cash advances for the first 12 months, a low fixed interest rate and no annual fees.
Monday, March 26, 2007
Citi Driver’s Edge Card for College Students
If you are a college student that drives a lot then the Citi Driver’s Edge Card for College Students credit card is right for you. The Driver’s Edge card allows users to earn points for every mile they drive along with purchases made that can be used towards the purchase or lease of a new or used vehicle. You can earn $1 for every 100 miles you drive and the rebates can be used towards payments, maintenance, service and repairs on your vehicle. Aside from earning points for driving, you can also earn a 3% rebate for purchases at supermarkets, drugstores and gas stations and 1% on all other purchases. The Driver’s Edge credit card offers an interest free introductory offer for six months and no annual fees although the interest rate is slightly above average after the offer ends.
Thursday, March 22, 2007
Citi mtvU Platinum Select Visa Credit Card for College Students
If you are a college student that is looking for a credit card that offers great rewards while building your credit then the Citi mtvU Platinum Select Visa card is perfect for you. The points earn from this card can be redeemed for gift cards, CDs, VIP mtvU Spring Break Passes, tickets to the MTV Video Music Awards, airline tickets and discounts on purchases at the MTV online store and the MTV New York City Store. Users will earn 5 points per dollar spent at participating restaurants, bookstores, record stores, movie theaters and video rental stores. College students using this card can also earn 25 bonus points for making payments on time and up to 2000 extra pints per semester for maintaining a high GPA. This card offers many platinum benefits along with an interest free introductory period and no annual fees.
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