Posts Tagged "Credit"

Low APR Credit Cards: Use a One-Stop Shop

Posted by admin on Sep 5, 2010 in Articles | 0 comments

Low APR credit cards (APR means annual percentage rate) offer an attractive inducement for people to transfer current credit card balances to a new card and of course to a new financial institution. Because this is a highly effective marketing strategy for financial institutions, there is a lot of choice.

However, the sheer availability of low APR credit cards can present its own problems. How can you wade through so many possibilities to find the best real options for your particular needs? While an internet search will throw up hundreds of choices, without professional product knowledge it can be difficult to make a well considered decision.

A professional service that sorts through the various low APR credit cards on offer and presents a smaller but worthwhile selection can save you a lot of time. It can also protect you from making an expensive mistake. It would be especially beneficial if a reminder service was also offered to let you know when your introductory low rate period is coming to an end. This way you can transfer your balance to another low APR credit card to have to pay the normal interest rate.

Most of us wouldn’t even think about credit card hopping to avoid high interest charges, so this very service can get us thinking in a more financially beneficial direction. Even if we have seriously thought about it, time can easily get away from us and we can find ourselves out of the introductory period before we know it.

When considering low APR credit cards, look for those with the longest introductory periods, the lowest introductory interest rates (zero is best) and the lowest balance transfer costs. Once you have decided which one to apply for you can often apply online on a website offering these comprehensive services. Once approved, you can sign up for an alert to remind you to transfer the balance from your new card to another credit card offering an introductory low rate. This way you will hopefully never have to pay interest on your credit cards again.

By taking this simple step, you will be streets ahead financially and will be in a position to become debt free much sooner if you use your interest savings to pay off your credit card balance. Look for a good comprehensive all-in-one online service that will help you do this, and the process will be far easier than you can possibly imagine.

Low APR credit cards are a great way of keeping control of our finances. Remember that the banks are there to make money out of us, so we should at least attempt to save as much as we can while not spending too much time keeping tabs on what is happening behind the scenes. As always, careful financial planning is important in our daily finances, and there is no reason why we should not look after our bank balance in the same way as we look after our skin or our diets. It’s all part of living healthily.

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Low Interest Credit Cards Are Not Hard To Find

Posted by admin on Sep 2, 2010 in Articles | 0 comments

Financial institutions are increasingly offering low interest credit cards to entice people to transfer their credit card balances (and hopefully their banking business) to them. This is a highly successful marketing strategy that you can take full advantage of. The only difficulty you are likely to face is the amount of time required to wade through the incredible number of these offers available.

Researching low interest credit cards to find the best offers for your needs is no easy task. An internet search will certainly locate hundreds, if not thousands, of these special card offers, however you will need to be very savvy to negotiate the fine print and sort the truly beneficial offers from the rest of the pack.

There are all sorts of categories of low interest credit cards to choose from, including special accounts for students, business people and those who have had a poor credit record in the past, as well as rewards cards which will give you free access to all sorts of utilities and services from free gas to air miles. You just have to decide which type is more convenient for you at the time of application, and then choosing the one with the most competitive rates or a combination of competitive rates and the most attractive offers.

An online one-stop service that does the initial culling of the less competitive credit card offers can take this stress off you, save you a lot of valuable time and potentially save you money as well. Most of these websites also offer online applications but those that offer an alert service to notify clients when their low (or zero) interest introductory periods are due to expire, are pure gold. If you are given enough warning that you will soon be paying normal interest rates, you will have time to choose another low (or zero) interest credit card with a decent introductory period. By doing this, you remain in charge of your finances and a huge amount of your money will not be siphoned off to financial institutions in interest payments.

The most beneficial low interest credit cards are those with the longest introductory periods (most range between three to fifteen months), the lowest interest rates (preferably zero) and the lowest fees for transferring your balance (this can be a flat fee or a percentage of the balance). You also need to be aware of the penalties for making a monthly payment late and choose an option that is the least painful.

Constantly transferring your credit card balances to low interest credit cards in order to avoid high (or any) interest payments may be an unusual financial strategy, but it is a highly effective one. Hundreds of dollars every month could be bleeding out of your income through credit card interest payments. By stopping this financial blood letting you can quickly regain control of your finances and even begin to get out of debt. With the right information and support the process can surprisingly quick and easy.

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What a Low-Interest Credit Card Can Save You

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

Virtually every bank or lending institution in the world offers credit cards as one of their many services. But banks, like any business, are in it for the profits. So how do banks benefit from offering you a credit card? From the high interest for the high risk clients to no or low interest credit cards, there is more to the story than meets the eye.

How Credit Card Distributors Make Money

There are two main methods that a credit card distributor makes money. The first, and most obvious, is through interest that is charged on any unpaid balance.

If you think about what a credit card is — a revolving line of credit — you’ll realize that what the distributing bank is doing is essentially pre-approving you for an unsecured loan amount equal to your credit line.

Unlike a conventional loan, you don’t need to provide a reason for the loan nor do you need to provide collateral. And unlike most loans, you can pay a portion of the “loan” off and instantly borrow that amount again if you so desire it.

But like a conventional loan, you pay interest on any amount of the unpaid credit. That interest can be viewed as the equivalent of a markup on a product. In essence, the bank is selling you, let’s say $5,000. That $5,000 costs the bank exactly that amount. So to make money on it, they “mark it up” via interest.

Each day that the loan remains unpaid, you are charged interest at a predetermined rate. For example, a credit card with $5,000 charged to it that has an interest rate of 17 percent will cost you about $2.33 after one day. Now you owe $5,002.33. You are now being charged 17 percent on the increased balance, so the second day you’ll owe a little more.

By transferring a $5,000 balance to a low interest credit card with a 3 percent interest rate, your first day’s charge would be cut down to a measly $0.41. Over the period of a month — the amount of time that typically passes between payments — the savings is much larger. Over the period of time it takes to pay off the entire balance, the savings becomes much more significant.

So why would a bank offer you such a low interest rate on a credit card if it cuts into their profits so much?

There is a second method that a credit card distributor utilizes to make money on credit cards, and that is through a fee that is charged to merchants who accept credit card payments. Merchants pay a processing fee to the various credit card companies for the right to accept credits cards. Part of this fee goes to the distributing bank. In essence, the more you use your credit card, the more money the bank makes.

If you show a record of always paying your bills on time (thus improving your credit score) and use your credit card often, then most banks are willing to give you a lower rate in order to prevent you from transferring the balance to a competing bank.

Having a high credit score gives you the power to demand low interest credit cards, which in turn can save you untold amounts of money. If you are a responsible credit card user, ask your bank to lower your rate. If they refuse, start shopping for a low interest credit card elsewhere.

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Which Low Rate Credit Card Will Work Well For You?

Posted by admin on Aug 27, 2010 in Articles | 0 comments

Today, even more then ever before, it has become increasingly inconvenient and very dangerous to carry large amounts of cash with you where ever you may go. Which makes carrying a credit card a simple way to pay your daily expenses without the hidden dangers of carrying cash.

But, the repayment of your charges is not quite as simple as swiping your card through a machine. Although there are many credit card companies out there that offer low interest rate cards , there are slight differences in the different kinds of low rate cards available which will work differently.

Get a Fixed Rate

As always, you should read the fine print when you are shopping for a low rate, a slight difference is the way a card type is being phrased can mean something completely different. When you are shopping for one, select one with a fixed rate.

Although this does not mean the rate stays the same forever, you do get a warning when the rate changes, often a period of fifteen days precedes the actual change rate. A rule of thumb when selecting a card is that the card with a fixed rate is better than that with a variable rate. A variable rate card has a rate that can change regularly and this can really have an impact on your payments and your wallet.

Credit History Factor

It is not only easier to apply for a credit card when you have good credit history but it also makes it easier for you to choose the best low rate. By looking back at your credit history and spending habits you can get a good assumption of what type of card can benefit you better. The first thing you need to look at is how good you are at repaying your credit card debt.

If you have been late with payments in the past then you should looking for a higher interest rate but a lower late fee rate. This type of card could save you money if you have a habit of making late monthly payments.

A good idea when selecting a low rate is to go through all the fees and monthly payments you will have to face. Besides looking at the interest rate, you should also look at the over-the-limit fees and interest on cash advances you might be forced to make. A credit card with a slightly higher rate but more flexible fees in other areas might be a much better choice for you rather than the first low rate credit card that turns up in your mailbox.

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Low Interest Credit Cards Are Popular and in Demand

Posted by admin on Aug 24, 2010 in Articles | 0 comments

Low interest credit cards are always in high demand and currently credit card providers have provided a wide variety of low interest and 0% Annual Percentage Rate offers to keep pace within the strong competition in the card market. Some retailers are offering 0% APR credit cards, which include purchase rebates or discounts.

These cards are especially good for people who want or have to carry their monthly balance. It can also reduce your interest payments by hundreds of dollars per month to maybe thousands over a year’s time, and are therefore a good way of settling credit card debts. A major portion of the amount paid is applied to the principal thereby reducing debts more quickly.

In many ways they are useful if you want to maintain a revolving credit for purchases, cash advances or balance transfers. There is an major advantage for people with good credit, they can easily get good reduced interest rates.

Consumers can get all the convenience of charging items when they need them, and long term, they will pay less interest on those purchases. They are a great way to save money on whatever it is you’re buying, whether you using it to purchase day-to-day necessities, or more expensive items. When you’re paying for a lower interest rate on low interest, you are paying less, and therefore have an advantage. Always keep in mind that when the cards are not used correctly, it can lead to tremendous financial hardship. Through self discipline and living within your means and making your monthly payments you should not encounter any debt problems.

In general, the higher your credit score is, the better chance you have of obtaining a low interest credit card. If you have a good credit rating, you should not have much difficulty qualifying for low interest credit cards.

When you are ready to make that final decision and choose your card, always make sure that you know exactly what you are getting. Having a low interest card can be ideal although they can lead to a downfall if you don’t choose them carefully. If you do not have a low interest credit card in your wallet, you may be missing out on a great way to save yourself hundreds of dollars per year. If you are the type of consumer who carries an outstanding balance month to month, and so many of us do, you will benefit substantially from having low interest credit cards.

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