Tag: credit card

Personal Finance: Vital to Financial Survival

Posted by FinancialGuruOnline.com – November 10, 2009

It is important for consumers to have an understanding of personal finance. Many consumers, especially around the holidays go hog wild and spend money that they do not have. Credit cards have become a huge crutch for millions of Americans.

The problem with credit cards is that each purchase that is made incurs a finance charge. For example a fifteen percent rate credit card would make a one hundred dollar purchase actually cost one hundred and fifteen dollars. Even if you got the product on sale, after you paid the bill you still would have paid full price for the item.

Credit cards are dangerous because many people abuse their credit card limits. Once you hit the limit, the next month you incur charges because the interest rate kicked in and now you are over your credit limit.

Spending money wisely is very important in order to help protect yourself against incurring large debts, bankruptcy, and even foreclosure. Many Americans have lost their homes due to foreclosure. This is because they took out adjustable rate mortgages. This meant that the interest rates on their mortgages could be adjusted at any time. This action would then increase their monthly mortgage payments.

Many people found themselves with homes that were not worth what they had paid for them and monthly mortgage payments that they could not afford. If these people had planned for this event financially then maybe they could have stopped some of these foreclosures.

When you own a home it is important to have a healthy amount of money in your personal savings account. In a down economy many people can lose their jobs which take a huge blow on their personal finances. You need to pay yourself first when you get your paycheck. Set aside at least ten to twenty percent of your paycheck and put it into your savings account. If you are too tempted to access this money then try getting a savings account that is not linked to a debit card. This will help you really have to think about why you need to spend the money beforehand.

Preparing a budget for your monthly expenses is a great way to manage your personal finances. Many consumers just write checks online and pay their bills without actually viewing how much they are spending. Always make sure that your bill payments have been made and received by your creditors. A missed credit card payment usually makes the consumer incur a thirty nine dollar missed payment fee. If you are over your limit then you will also incur a thirty nine dollar fee for that also. This makes one mistake a seventy eight dollar mistake. Mistakes like this add up and can really hurt your bottom line.

Being aware of your personal finances is very important for everyone young or old. In order to be able to survive financially for years there needs to be a plan in place for every dollar that is earned and spent. Everyone can do it; it just takes hard work and forethought.

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.

Five Types of Budgeting Methods

Posted by FinancialGuruOnline.com – January 23, 2009

Budgeting is an essential part of your financial health – and should be completed by ever individual, every family to ensure that the finances are being met head on with honesty. There are many types of budgets which you can choose to adhere to – here are some methods that have worked for many consumers in the past.

Envelope Budgeting
Envelop Budgeting consists of the use of envelopes and spending cash. It enables the use of different envelopes for expenses or savings during the month. For example, if you have three hundred dollars for food for the month than this money is placed in an envelope labeled food. On your next trip to the grocery store you can remove the money from the envelope and replace the money with receipts from the trip to stock the cupboards and fridge.

Spending categories are created with cash in the envelopes to ensure that you do not go over these amounts every single month. This is an effective tool in maintaining control of the cash that is being spent in your household.

Spending Categories
There are two main categories in which we spend money. These categories are fixed and variable expenses. Fixed expenses are those we are unable to change throughout the course of a month. Keeping in accordance with these two spending categories the fixed expenses are subtracted from the income which is coming into the budget, the variable expenses are than divided of the amount which is left.

Tip: Don’t forget to establish a savings account in the budget to provide a safety net for consumers wishing to create an alternative to credit cards.

Daily Spending Limits
Aside from your fixed expenses, there is a type of budgeting that uses a maximum daily limit of money which can be spent to keep control of your finances. Most people implement a daily spending limit of ten to twenty dollars which is spent for expenses like food, gifts and entertainment. Although this limit may seem low, there are many ways to keep more money for categories by saving for multiple days for purchases – or excluding food from these daily savings and creating another budget for food.

E-Budgeting
E budgeting enables the use of software that can be found on the internet to keep control of your finances. There are many free software programs available for download which can keep track of your spending, your expenses and many other aspects of the budget. These powerful tools can maintain control of your money.

Regardless of the type of budgeting that you use, it is important to adhere to the same system throughout the course of six months to ensure that you become familiar with the program. If the system is not working for you, it can be simply replaced with another system which suits your lifestyle and needs.

Fighting Your Debt through Expense Control

Posted by admin – December 12, 2008

You will never tame your debt monster without implementing some type of expense control. In fact, you should work to implement expense control even before looking into ways to increase income. This is because measures to implement expense control can serve to increase your disposable income which can then be used to reduce your debt. Let’s look at some of the ways you can implement expense control and start fighting your debt today.

Expense control starts by compiling a master list of all your obligations and debt. It’s probably best to build your list in some type of spreadsheet. By doing this you can sort the list by either due date or amount due while doing your expense control analysis. Make sure you list the automatic debits that you have set for various payees each month. These expenses tend to be forgotten and are the cause for many overdrafts when your checking account runs low. This causes degradation in expense control along with an increase in debt.

Try to convert all of your variable expenses into fixed ones. When they are fixed, they are much easier to fit into a budget which is necessary for effective expense control and debt reduction. For example, you could convert your current cellular phone plan into a prepaid plan in order to implement expense control on your mobile phone expenses. Utilities are a little harder when trying to implement expense control because of seasonal changes in usage. Try to go through a historical analysis with your utilities and budget how much to set aside based on an average over 12 months.

You will realize with expense control that you can do without more than you think. Now that you have all of your expenses listed, you can analyze carefully which ones you should cut back on in order to help with debt reduction. Expense control requires finding cheaper substitutes or cutting the expense item out altogether. If you can cut the expense of a second car, it will be quite effective towards your efforts for expense control. It will be extremely helpful if you are in debt over the second car. You will find in some cases that it is actually possible to have a two-earner family with only one automobile by using mass transit or even bicycling to work.

Restaurants are a big budget killer and do not help expense control. Restaurants are probably the first non-essential expense you should cut. A significant amount of credit card debt comes from restaurants. It really doesn’t take much to get up a little earlier and make your own breakfast if it will save you money and help with expense control and debt reduction. You can make eggs in the microwave oven if you are pressed for time. A sandwich for lunch might get dull but you can learn creative ways to spice it up.

Buying in bulk sometimes hurts budgeting and expense control. The problem with bulk buying is that it can be very expensive outlay of cash to buy more than you will actually use in a month. Oftentimes, people accumulate credit card debt to buy in bulk. You might be able to implement more expense control by using pay as you go. For example, you might want to buy a monthly bus pass and ride the bus once in awhile instead of drive. You’ll pay more for the pass but make but it will be beneficial for expense control if you make sure you use all of the allotted trips.

Credit cards for students

Posted by admin – November 18, 2008

The budget is small, but the plans are great! Most students see their studies not only themselves but also the period of study in itself as an investment: Preferring many trips abroad, internships and an expensive laptop for most students are now obvious. But because all this is not exactly cheap.

In each case to something more financial leeway to create more and more students with a credit card. How clever! After all, there are credit cards for students to be particularly favorable conditions – with some providers even completely free. The advantages are obvious: Unlike the debit card is the world’s credit card accepted in many places. Who was only in possession of a normal debit card is easy to get problems when you go outside the country and wants to pay. Students know, like traveling all over the world – a credit card makes travel more flexible: Whether at the bank, at bank machines, hotel, restaurant or at the car rental is a credit card is always welcome – and not just abroad.

Most students now book their flights online. No wonder at the abundance of low-cost providers. For only $30 you can already tour all over Europe. But what good bargain prices for student travel, if you are not attached to the tickets coming? Almost all the cheap flights must now be paid by credit card. Who has not quickly looks old: Because the credit is not transferable – a result that only the flies must, to the credit card is issued (and its companion course). Students who have a credit card, here have a clear advantage – and can save a lot of money. If it’s times across the Atlantic should go and fly a little more expensive, is the credit card for students to solve: There is no large banks offer many explanations for certain credit cards financial leeway. So when times very quickly a new machine must be – just because the old spirit has abandoned, but the housework must be done quickly – saving students with the expensive overdraft credit card interest rates. The special credit cards for students allow students in advance about money that is then usually only within one month of back pay – plenty of time, therefore, to quickly even for the excessive amount to a few days casual work. While the extreme for a bank account usually charge quickly, there is with the credit card for students in short-term overdraft no additional cost. The framework in which you briefly about his budget can draw is obviously previously fixed in the contract.

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 …