Posts Tagged "Credit Cards Credit"

Low-rate Credit Cards

Posted by admin on Jul 30, 2010 in Articles | 0 comments

Credit can be a powerful thing, but only in a beneficial way if it is managed responsibly. At the start of 2008 the total outstanding balance on credit cards in Australia was $43.25 billion, of which $31billion is accruing interest. According to figures recently release by the Reserve Bank of Australia, Australians spent and average of $17.5billion on credit cards alone in February 2008. This figure exceeds the February 2007 average by a massive $1.9 billion, making credit cards liable for 56% of Australian spending.

This increasing tendency to pay with credit cards has created a competitive marketing environment between institutions, with many providers now seeking to entice their customers with low-rate credit cards.

What is a low–rate credit card?

Low-rate cards offer special incentives such as 0% balance transfer periods and low ongoing interest rates, generally between 9% – 13%.

Features buried within the fine print

The Australian Securities and Investments Commission (ASIC) has urged consumers to be wary of terms and conditions on low-credit deals amid fears many Australians will accumulate debts they can’t afford. While interest-free purchases and low-interest credit offers are popular, they aren’t suitable for everyone so it’s important to understand how it works in order to make use of the attractive rates.

Low rates often come attached with other undesired features such as:

Annual fees – Higher fees are principal in low-rate cards. In contrast to standard-rate cards which have no annual fee, or a fee that can be subsidised by reward points, a low-rate card requires the payment of an annual fee. These fees can be more than double that of a standard card. So ask yourself if a lower rate is really worth paying a higher fee when this money could be spent towards paying off your balance?

Rewards program – Reward offers generally come hand-in-hand with a higher annual fee. It’s important to remember that nothing is free and that these incentives are expensive for the banks to operate. So unfortunately, in order to keep costs low, low-rate cards will only offer limited partner or discounted programs without the extra benefits of a full rewards program.

Cash advance rate – Banks and institutions see cash advance transactions as a high risk. In effect, this is why low-rate cards charge up to an extra 20% for cash advances than on purchases. So if your aim is to keep debt to a minimum, before selecting your card it’s vital to determine whether or not it would be used for cash advances. Otherwise, look for a product that offers low interest rates for cash advances.

Late payment fees – Making a late payment can add a substantial dent to your debt. Like cash advance rates, late fees are generally higher than that of a standard card.

Other fees and charges – ATM fees and overseas transactions can be charged at higher rates.

Limited features – Say goodbye to features such as travel insurance, internet banking, cheque and branch facilities and 24-hour services.

Who can benefit from a low-rate card?

If you struggle to pay off your credit card and revolve your debt from month to month a low-rate card with a low, or no annual fee might be right for you. If you can get a card that offers instant rewards or discounts at places you regularly use, that’s even better considering that these features are normally quite limited. Don’t be swayed by cards that offer balance transfer period unless you have a good repayment habit.

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Are Low Interest Credit Cards Your Type Of Credit Card?

Posted by admin on May 16, 2010 in Articles | 0 comments

Are low interest credit cards your type of credit card? That depends on what you are looking for in a credit card and how you play to use it. For most people, credit cards are used to pay for purchases for which the person does not have the cash. Many people carry balances on their credit cards, making is the smart idea to look for low interest credit cards. 

Credit cards can have high interest rates and even fees. This is especially true if you have bad credit or are just starting out with credit cards. If you have not established credit, then chances are that you will get a credit card with a higher rate of interest than those who have established good credit.  Credit card companies are taking a risk whenever they issue credit cards as they are unsecured debt. If you go bankrupt, there is not much the company can do to recoup the debt. 

Low interest credit cards are coveted by those who want to carry a balance on their credit cards or who think that they might eventually carry a balance.  One reason that people obtain credit cards is for emergency purposes. You never know when you are going to need to borrow money on the spot and a credit card is a way to instantly borrow. It is actually wise to use credit cards in this manner, rather than using them to buy things that you cannot afford.   As you never know when such an emergency is going to arise, it is smart to look for low interest credit cards. Low interest credit cards end up saving you quite a bit of money if you carry any sort of balance on your credit card. 

You can find low interest credit cards by going online. This is often the best way to find the card that is right for you as you can peruse a site that not only allows you to apply for the card right online, but also gives you information that you should look at before you apply for a credit card. This information includes the interest rate, often called the APR as well as other fees, minimum payments or spending limits attached to the card. 

If you are looking for credit cards, you should look for low interest credit cards. They can help you out of a jam if you run into a financial emergency and you will not end up paying a lot of money in interest rates when you pay off the balance. As you never know why you might need a credit card and the extended credit, it is a smart idea to have a low interest credit card that not only offers you low interest rates, but also gives you a generous spending limit. This is often built up over time, as you prove yourself to be a credit worthy individual. When you are starting out, you can still find low interest credit cards that give you a decent spending limit that can help you out in case of a financial emergency.

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Apply for Low Interest Credit Cards

Posted by admin on May 5, 2010 in ALICC | 0 comments

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Welcome to Apply for Low Interest Credit Cards.  Credit cards are issued after an account has been approved by the credit provider, after which cardholders can use it to make purchases at merchants  accepting that card. When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder indicates consent to pay by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a personal identification number (PIN).

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The main benefit to each customer is convenience. Compared to debit cards and checks, a credit card allows small short-term loans to be quickly made to a customer who need not calculate a balance remaining before every transaction, provided the total charges do not exceed the maximum credit line for the card. Credit cards also provide more fraud protection than debit cards. As well as convenient, accessible credit, credit cards offer consumers an easy way to track expenses, which is necessary for both monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement  purposes.

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Dirty Little Secrets of Credit Card – Business credit cards

Posted by admin on Sep 3, 2008 in Videos | 0 comments

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