Category: Banking & Credit

Top 5 Credit Cards compared

Posted by admin – August 13, 2009

There are many credit cards on the market, and deciding which one is the best can be subjective and dependent on the consumer’s needs and wants in a lending product. However, the best credit cards available to the most people usually come from Citibank. Citibank provides a number of MasterCard and Visa products to people with good credit and students. In addition, they have some of the best customer service, lowest interest rates, and a number of benefits. It is also easy to change one type of rewards card to another product without hassle or an additional credit check. A close runner-up is American Express, but some of their card interest rates can be high and their best credit cards are often suited only for those with high income and perfect credit.

One of the best credit cards for those seeking low interest rates is the Citibank Platinum Select. This MasterCard product has no annual fee and no interest on both purchases and balance transfers for the first year of card membership. Though no rewards are offered, the Citibank Platinum Select MasterCard’s usual interest rate of 7.74 percent after the first year along with the credit limits (some users of CreditBoards report receiving more than $20,000 with a few credit blemishes) and customer service of Citibank make this card the best.

American Express Blue Cash credit card has a number of benefits afforded both by the card itself and American Express membership, but its drawback is it is usually only offered to people with superior credit and low use of existing credit, according to members of CreditBoards. The benefits alone make it one of the best credit cards out there. Blue Cash has no annual fee and 5 percent cash back rewards on purchases. American Express members qualify for 24-hour legal and travel assistance. The interest rate on Blue Cash is zero percent for a year, then prime rate plus 7.99 percent.

The Citi Select/AA Advantage American Express card combines the best of American Express and Citibank and also offers extensive American Airlines airfare travel benefits to create one of the best credit cards for those seeking travel rewards. In the first four months of purchases, new cardholders earn 25,000 bonus miles which is enough for a free airline ticket. There is no annual fee for the first year, and each dollar spent earns 1 American Airlines frequent flyer mile. The average interest rate is 13.24 percent. After the first year of membership, the annual fee is $85.

Citi CashReturns MasterCard offers seamless cash back rewards, a low interest rate, and other Citibank benefits that earn it a place among the best credit cards. The MasterCard earns 1 percent cash back on all purchases, and each time $50 of rewards is accrued, Citibank automatically mails a check to the cardholder. There is no annual fee, and the interest rate is as low as 9.99 percent. For those wanting easy cash back, low interest, good customer service, and no annual fee, Citi CashReturns MasterCard is a good bet.
Citi Dividend Platinum Select Card for College Students is offered to those in college with no credit history, and usually starts out with a credit limit of about $1,000. This is one of the best credit cards for this segment of the market. The card does not expire once the student leaves college if it is left in good standing. For the first six months, cardholders get 5 percent cash back on purchases at grocery and drug stores, utility payments including cable, and transactions at gas stations and convenient stores. After six months, the cash back on these purchases is 3 percent, and at all times other purchases accrue 1 percent benefits. There is no annual fee, and the interest rate is 13.24 percent.

Improving Your Credit II

Posted by admin – March 20, 2009

While improving your credit can be a slow process there are several things you can do, in addition to the obvious basics, that will help you improve your credit score and establish you as a credit worthy individual a little bit faster. Steady bill paying and paying down debt should be your top priority, but it is true that where there is a will, there is a way, even when it comes to credit. Here are a few ideas to help you re-establish your credit faster that might take a little more digging, but are available even to those with lower credit scores.

While it might not seem like the most obvious things to do, it is sometimes necessary to open a new line of credit which will help establish you as someone who is creditworthy and improve your overall FICO score in the future. Anyone with bad credit knows it is almost impossible to be approved for a credit card though, so apply for a secured credit card that will help you begin to build a better credit history. There are several small banks throughout the nation that will extend these secure loans with a bank account to account as security for the credit line.

Another simple way to show that you are creditworthy and a reliable lender is to apply for lines of credit from stores and businesses. This is harder to do when your credit score is really low as far as national chains go, but if you look for lending opportunities on a local level you might find some businesses that are willing to work for you. Of course, once you have gained a line of credit or a secure credit card it is important that you stay on top of the payments so that you are able to use them later as proof of your credit growth.

One of the most damaging things that can happen to your credit is for a lender to sell off your bills to a collection agency. If at all possible, swallow your pride and answer the phone calls that are coming from your creditors to see if there is any way you can work with them to get your bill paid in a way that is more manageable to you. Creditors are not always as unwilling to listen as you may think and reaching a new payment plan or schedule with them is sometimes all they need to be convinced that you are still committed to paying off the debt you owe them. The same thing goes for collection agencies if your debts have already been handed over. Many people do not realize that collection agencies can enter a judgment against them in court to attempt to gain payment and those judgments then remain on your credit report for seven years.

Above all, it is important to request and review your credit report as often as possible. Not only will tell you where you stand, but it allows you to catch items that may be damaging sooner rather than later. With time and a little perseverance you can bring your score up to a level that you were once used to.

Improving Your Credit

Posted by admin – March 19, 2009

Improving your credit has become the topic of choice as more and more consumers are becoming aware of just how much their credit scores impact their everyday lives. Insurance, lines of credit, the ability to purchase a home or car or fund an education for yourself or a child all rely heavily on the credit score and individual has earned for themselves over the course of several years. Right now is the best time to begin improving your credit and raise your score to a number that you can come to expect reasonable prices and contract terms as a result of.

What most people do not realize is that it takes just as long, if not longer, to clean up your credit report as it did to bring that number down. Even when it is a lot easier for you to pay off the debts that you owe, it is still difficult getting those reports removed off your overall report. It requires a lot of time and dedication of an individual, but if you want it to get done it is the only way to handle it. In the end, the benefits that come with the improved credit score are definitely worth it and the extra worry over finding out if you are approved or not will be lessened.

The steps that need to be taken to improve your credit score are actually very simple and once you begin working towards a higher score it is crucial that you stay dedicated to the commitment. The first thing that needs to happen is that all bills from here on out need to be made on time. Late bills, whatever they are for, drastically reduce your credit score especially if you are a repeat offender with the same creditor. As soon as you are able to comfortably pay off your bills every month, use any extra income to pay down the debt that you are carrying month to month. This also requires you to cut your spending, especially when it comes down to charging items to a credit card.

At this point you should consider all lines of credit that you still have open to you as gold. Every credit line is connected to your credit score and raises or lowers the amount of credit available to you, making you appear different on paper. To make yourself seem more creditworthy it is important that you keep all lines of credit open that you currently have and do not close any, even old accounts that you have not used or only use for emergency. At the same time attempting to open additional lines of credit while you are boosting your credit score in other ways, can lead to a lowered credit score because of the credit check that is standard to every creditor.

Finally, as you continue to pay bills on time and pay off old debts that appear on your credit score, make sure you contact those creditors to have the debts removed. You can watch for these updates by requesting your credit report and reporting settled bills to the credit unions to seek compliance from the creditors if they do not act on your own.

Fix Your Credit Score for Free

Posted by admin – January 23, 2009

Fixing the credit score does not have to cost you a dime. There are many techniques that can be used to increase the credit score substantially with the use of simple phone calls and negotiations with creditors. Many consumers are not aware that you can indeed take measures to fix the credit report for free. Use these techniques to begin your credit report clean up – for free.

Contact Your Collection Creditors
Accounts that have entered collections can have the worst effects on the credit score. After you have obtained a copy of the credit report it is important to contact the creditors to negotiate a settlement. Many consumers are realizing that part of this settlement could be the removal of this strike from the credit report in return for complete payment. Payment schedules can be worked out to accommodate everyone in the situation – but be sure to get this in writing.

Order Your Free Credit Report
Free credit reports can give you a judgment of where your credit score and report stands. You can obtain the free credit report from various websites that allow you online access or for a copy to be sent to your home. At this time, you can view any negative strikes against you and take measures to fix these credit mistakes that have occurred in the past. Giving yourself access to the credit report is an essential way to ensure that no mistakes have been made in the information that has been reported to the credit bureau.

Remember, different credit bureaus may have different information. Requesting the report from multiple credit bureaus ensures that you can make the most of your score by clearing any mistakes or negative entries from the report with ease.

Use your 100 Word Statement on Your Credit Report
Every person is given the chance to take advantage of a one-hundred word statement that is part of the credit report. This statement can contain reasons for low scores or even measures that you are currently taking to increase the credit score. When you are given access to your credit score you have the ability to change this and increase the potential that a creditor will grant you credit in the future. Be sure to use these hundred words effectively, and write them as if they will be seen by each of the potential creditors in your quest to gain credit.

Negotiate the Removal of Credit Collections Accounts from the Credit File
While negotiating with creditors, remember what was spoken about before, in the way that there are ways that negative entries can be removed from the credit file. Negotiating with creditors could prove a powerful tool in the quest to clean up the credit score, for free!

The advantages and disadvantages of credit cards

Posted by admin – November 3, 2008

Nowadays, credit cards are an important part of the payments and provide the holder with a multitude of advantages. It may also be that you because of the negative credit rating inquiry no credit is granted. In this case, various banks to offer credit cards to. Normally it is prepaid cards. This means that the credit cards before using a credit has to be, otherwise it does not. The user can still benefit from a credit card and even with a negative credit rating.

On the one hand you have with your credit card is always a little credit, since you can spend the money, but your account until the end of the month will be charged. Secondly, you do not need so much cash with them to lead. Equally practical is the payroll at end of the month. So you can always have a good overview of your spending reserve. Traveling on a credit card is almost indispensable. In the U.S., for example, you can not go far without a credit card. You can order at ATMs abroad withdraw cash. In many online shops you can also pay by credit card.

But credit cards have the same disadvantages as advantages. First, not all businesses accept credit cards. When the card is stolen the thief on the card free. It can thus go shopping. The positive thing is that the liability for you upwards is limited and you probably do not have to pay too much.

So should your credit card is stolen, you should choose the emergency immediately and your card blocked.

But the pleasure of cash needed an entire network to operate. Each card has a certain number of acceptance points. Is a world leader MasterCard. The company has over 23 million outlets and 800,000 ATMs. Contract and acceptance of the respective agencies accept credit cards worldwide. The country with the highest acceptance rate is the United States

Cash withdrawals with MasterCard will soon cost more

Posted by admin – October 10, 2008

An interesting article by the Magazine Focus refers to current position regarding the planned changes to cash withdrawals at ATMs with a MasterCard. As it appears customers are expected here soon to launch a significant increase, should also credit institutions will also be allowed a free hand when pricing is concerned.

Currently the situation looks like this: Who at a foreign bank wants money to do so usually with his credit card. The reason is simple and plausible: cash with ec-card beat quickly with more than four dollars to book while in cash with the MasterCard barely pays $1.20 . This resulted in the immediate past now means that more and more customers “against alien” and against the relatively low fees with their master card at the cash machines.

The pressure for the proposed changes now comes not from MasterCard itself, but from the large branch banks, which described the trend with higher fees to meet. From October the fee for cash withdrawals at automatic foreign banks to $1.70 in a first step increases. In a second step, from the year 2009 all commercial banks a free hand regarding the design fees received. There are probably more increases to fear, because commercial banks as the first charges directly to foreign clients can calculate.

The rival rejects visa fee increases still, what the future brings can be at this stage, however, do not anticipate. A possible reaction of some credit institute but could consist of no more Visa cards to accept when dealing with a lot of MasterCards that can earn more …

Can you control using your credit card?

Posted by admin – September 20, 2008

What principle by the vast majority of consumers already clearly should be confirmed now a study by the University of New York: Who pays by credit card tends to spend money rather than with the use of “real” money.

The study of the New York University included various testing situations, with the results of the whole unequivocally make it clear that the payment with banknotes more “painful” than the use of plastic money, coupons, etc.

In the first part of the study was 114 people a restaurant menu presented. The test subjects had to specify how much food they are prepared to pay, with a portion of the test subjects were equipped with cash, the other part with credit cards. The result underscores the indexed statement that the payment with plastic money rather than leads to wastage if cash is needed.

Another test situation contains 28 test subjects, which the typical purchase of consumer goods such as soups, ketchup toothbrushes or partly with cash and partly via gift certificates should realize. Here, too, showed that the voucher in the pocket like play money will be treated and purchasing the affected much easier.

The psychological explanation of observed phenomena is disconnection primarily in pain when paying with cash to see. This is for credit card use at the moment of purchase is not present in equal measure since it at the end of the month or the next billing period will be moved.

Alternative to conventional credit cards

Posted by admin – September 15, 2008

Traditional credit cards allow cardholders to purchase without cash. Worldwide, there are several million outlets for credit cards, for example, boutiques, supermarkets, department stores, restaurants, but also gas stations, travel agencies, airlines, car rentals and hotels. Possible through a loan under which the bank on the credit card is available. The amount of the credit-oriented framework is usually at the level of income and general creditworthiness. However, for example, credit ratings has a negative entry, usually the bank refused to issue a credit card.

For these cases, there is an alternative solution to the so-called credit card without good credit report. It works like a prepaid card, a prepaid card, because this type of credit card can only be used to pay again if money to the card account has been transferred. In this mobile phone cards from well-known principle, the cardholder is always in full cost control and can not fault, because the output limit is always in the amount of the card itself.

The prepaid card can also be used by customers, for example, not yet 18 years old and are no separate income. How can parents their offspring, the study abroad or learn from Europe on the card account deposit, which the children abroad or when paying cash. An attractive side effect of prepaid credit cards: Some companies pay interest on the credit cards with interest rates. This allows the holder also a part of the annual fee back in the prepaid cards incurred. The transfer back to their own checking account at any time without notice possible. The money is usually funded within one to two days.

Even if the annual fee is higher than comparable Classic credit cards, falling further charges are often lower. So are the prices for cash at ATMs or pay expatriate significantly lower than those of normal tickets are priced and limited, while the minimum fees typically from 2 to 10 dollars per withdrawal are incurred.

The service account for a prepaid credit card is usually free. Postings on the information once a month on a free account. More and more credit card companies also offer online banking cards on the Internet. Besides the monthly payroll can daily sales and cash-recycling them.

Advantages of a prepaid credit card’s

Posted by admin – September 10, 2008

Although predominantly in Europe will you be paid with cash, these days credit card is becoming increasingly important. Because there are some areas where preference is paid by credit card. Especially when the Internet plays an important role when purchasing using a credit card – because there are many online stores that only accept credit cards as payment. Especially if one of the dealers are resident abroad would like to buy, the credit card is required. But we must not even look as far – Car rentals are a good example that even in America, a credit card is required. Without a corresponding map, it is usually not possible to obtain a rental car.
However, in order to obtain a credit card, you must meet certain conditions. So it is at most banks and credit card companies is a prerequisite that you are in an employee relationship, and on a sustainable income. For some people this is of great disadvantage, such as for students. Because most do not currently have a job.

But now there is a solution to this problem. This solution is called prepaid credit card. A prepaid credit card may ultimately be requested by anyone – because there is no money for this certain conditions. It is not necessary that you have a sustainable income – age is even not an issue. Just go to your local bank or just go on google.com and type “prepaid credit cards” a lot will come up. Just select a known name, double check the annual fees make sure they are free or have a very low maintenance fee around $10 to $20 and sign up. Prepaid credit cards are the best way to get credit and not get into debt since you prepay unlike traditional credit, you won’t get in debt because you use what you put in.