Tag: Credit Cards

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.

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.

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

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.