Posts Tagged ‘Credit Card Company’

How to Find and Keep the Lowest Credit Card Rates

November 2nd, 2011



Credit Cards are about as common as sliced bread. Everyone pretty much has one, or more, and whoever they are, there is one thing going around in their brain. How do I get the lowest credit card rates?

Low interest rate credit cards are easier to come by if you have a good credit score. It is very simple, the lower the credit score, the higher the interest rate. The higher the credit score, you have more of a chance to get a low rate.

The lowest rates around really vary between company to company. The big companies like Citibank, or Capital One are very good at giving out the lowest rates. Some rates are offered as a 0% for balance transfers. After that time, you will get more often than not, a variable rate based on the Prime rate. Currently the prime rate is 3.25, so you will be hard to get a fixed interest rate lower than the prime no matter how excellent your credit score is. You may be able to get promotional rates, but it would not be there for the life of the card.

But, once you have finally got that low interest rate, the burning question on everybody’s lips is, how do you keep it?

Well, one of the key things to remember, no matter who you are, and what credit score you have, it is going to more than likely be a variable rate, which means if the credit card company decides they want a little bit more money from you, they can raise your rate to what they see fit. Now if that happens, you can call in and request them to lower it, sometimes they will, other times they will not. Usually if a card company changes the interest rate, they call it a Change in Terms. This gives you, the card holder, some power because you can choose to accept or reject the Change in Terms. If you reject them you will keep your low interest rate, but at the expiration date of the card it will be canceled.

But sometimes your interest rate will go up because you accidentally forget to send in a payment, or you go over the credit line, even, if you have other credit cards, and you forgot to send in a payment on those, when that is reported to the credit bureaus they can consider you more of a risk and increase your rate. So the best way to keep your low interest rate is to always remain current on your credit card payments, your car payment, or any payments that report to the credit reporting agencies.

One way to always keep on top of your payments is through the credit card companies themselves. Most of them have ways you can pay online as long as you remember to log on and pay you will be fine. Another way is to ask your card company if they have an automatic payment option available. This is usually free, and it will automatically deduct the amount of your minimum payment, or whatever amount you choose from your checking account. That way, you never have to worry about being late on a payment, and losing that hard to get low interest rate.

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Credit Card Company Tricks

October 22nd, 2011



Don’t let them fool you. All those solicitations you receive in the mail for credit card applications are meant to reel you in and hook you. Big time. In addition, new bankruptcy laws in the US and higher monthly minimum payment requirements are in place to help stem defaults on loans and to force consumers to pay down debt quicker. All of this sounds great, but credit card companies want to keep you in debt as long as possible. Please read on for all the stimulating details.

If you have had problems in the past paying down debt, do not think for a moment that you will have it any easier in the future. Thanks to legislation introduced by Congress and signed by the president earlier in 2005, filing for bankruptcy to escape debt has become more difficult. Much more so. In addition, credit card companies have raised your monthly minimum payment levels, in some cases doubling the minimum amount you must pay. Consider this last step a side issue related to the new bankruptcy legislation; the credit card companies are not legally obligated to raise minimums but they were pressured into doing so in exchange for passage of the new bankruptcy law.

Do not even think for a moment that credit card companies want you to get out of debt.

For starters, credit card rates have been rising steadily for over two years. As the prime rate goes up, your credit card interest rate goes up. Unless, of course, you have a fixed rate and you have been paying your bills on time. However, one late payment and, uh oh, you are in big trouble.

If you are late making a payment, even just once, you will likely be hit with a one time late fee charge of $29 or $39. In addition, that “sweet rate” you negotiated last year may automatically disappear. Zero percent financing can quickly turn into an 18.9% interest rate in no time and enforced retroactively too. Even “lower rate” cards with annual percentage rates of 10%, 12%, or more, can suddenly reflect rates of 24.9%, 29%, 35%, or even higher!

This is all perfectly legal too!

Read your credit card disclosure agreement – as if anyone even bothers to do so – for all the boring details. Exceptions and rules are the name of the game; there is a trap laying wide open for you to step on.

The next area of socking it to you is an old one: annual fees. Yes, they are back; for years, credit card companies — in order to remain competitive — waived annual fees. Originally, it was one small way for them to extract some cash from you: you paid them something every year even if you paid off your card monthly.

If you are like me, the whole concept of charging someone to access credit is absurd. Companies make a mint off of high interest rates as it is; throwing another fee on top of things is both apparent and transparent! Now, annual fees are back. Oh, sure, credit card companies must notify you in writing of these changes before they are put in place, but they certainly hope you won’t cancel your account in response to the “new” fee or that you will forget the notice completely and simply pay the fee. Do they think that we are stupid? I believe so!

There are two other areas where credit card companies attempt to pull a fast one on consumers: your payment due date and payment mailing address.

Your payment due date, which may have been “static” for years, could suddenly have been moved up. This means that if you are used to paying off your Visa card on the 24th of the month, it may suddenly have been moved to the 16th the following month. Without notifying you of the change either!

The address where you send your money may have changed too. Is this a big deal? It certainly is if you mail your payments in. Let’s say that you live in New Jersey and your XYZ Bank card payment goes to a South Hackensack post office. If you mail your payment in five days before the due date, you probably allowed enough time for your payment to get to the bank. Warning: Watch out that their payment address hasn’t suddenly been moved to Ohio. Your next payment will likely end up being late.

Oh, so you pay online? Don’t think that the bank credits your money immediately either. I have seen it take five days for money to electronically leave my checking account and be wired to another bank’s account. The post office moves a live check faster than that!

A moved payment due date and a changed payment address are designed to make your payments late so that the credit card company can charge you a late fee and raise your rates.

This is perfectly legal as well. Is it ethical? Hey, we’re talking about the financial services industry. What else do you expect?

Financial institutions make money off of consumers through interest rates and fee services. Please do not think for a moment that any credit card company has your best interests at heart. They don’t; they are in business to please their shareholders. Get informed and take action when one of these “perfectly legal” practices is pulled on you. You can get fees canceled and have your credit card rate lowered if you complain; back it all up in writing in order to preserve your rights.

A savvy consumer is an informed consumer; learn what tricks credit card companies use and fight back. Annually order free credit reports from Experian, TransUnion, and Equifax to make sure that unfavorable reports from creditors have not been unfairly tagged to your record. Visit the Federal Trade Commission’s site at [http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm] for the best way to obtain credit reports.

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Tax Benefits of Making Charitable Donations

June 18th, 2011



In addition to the overall benefits of making charitable donations, there are a number of tax benefits to be had as well. In fact, while many people give out of the kindness of their heart, still others give for tax benefits as well. Navigating through the tax benefits are fairly simply and in most cases, your accountant or tax preparer can assist you with figuring out how to take the charitable contribution deduction and whether or not the charity of your choice is qualified. Here are some additional tips on the tax benefits of making charitable donations:

o A donation to charity could entitle you to take a charitable contribution deduction on your income tax as long as you itemize deductions: When charitable gifts are deductible, the amount of the donation is actually reduced by your tax savings. For those in a higher income tax bracket, the appeal of giving to charity increases as the cost of that contribution is greatly decreased by their tax savings. For example, people who are in the 33% tax bracket actually only pay $67 for a $100 donation. Therefore, the higher the amount of the contribution, the more you end up saving. Wealthier people can not only afford to give more, but they also get a larger tax reward for doing so.

o The charitable contribution deduction occurs in the year in which you pay it: When you mail off a check to charity, it is considered payment. Moreover, making a contribution on a credit card is deductible in the year that it is actually charged to the card, even if the credit card company does not receive the payment until much later in the year. Be sure to double check this with whatever charitable organization you are working with to see when they process payment so you know exactly when they plan to charge you credit card or to ensure they have received any kind of mailed-in payment. This is good information to have for your personal records.

o There are a large number of charities that qualify for this deduction: While you can only deduct gifts if they are made to a qualified charity, many people have no problem with this because the list of qualified charities is extensive. Keep in mind that charitable contributions deductions cannot be taken to any charity that does not quality — regardless of whether you think they should be qualified or not. Additionally, contributing to other foreign governments and political organizations and charities as well as a number of private foundations are not eligible for the charitable contribution deduction.

You can find online non-profit organizations that give away grants and foundation funding in large numbers. However, care must be taken while choosing a company offering charitable donation, and thorough back-ground check is to be done to ensure that the company has a sound history of positive and efficient donation and grant funding.

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5 Critical Steps to Negotiate a Lower Credit Card Interest Rate

May 17th, 2011



Let’s cut to the chase. Times are tough and everyone could use a break. Why not get a discount on the amount of credit card interest you are paying. After all, you deserve it and the banks who have received billions of dollars from Obama’s stimulus package need to pass some of the stimulus benefits on to you, the consumer. So let’s get started.

Step 1 – Call and Ask

Call and ask for a lower rate. Believe it or not, this is one step that will keep many people from ever getting a lower credit card interest rate. Yes, it can be intimidating because you don’t know what will happen, but if you don’t ask for a lower credit card rate, it’s a guarantee you won’t get one. Sometimes by simply calling and asking you can get a better interest rate. Just make sure you are prepared before you call.

Step 2 – Review Your History

Review your payment history with the credit ompany. It always helps to demonstrate your ability to pay your payments without late charges and over limit charges and that you use the card. Show them that you are one of their preferred customers and let them know you want to keep their card but need a better interest rate.

Step 3 – Know your FICO Score

Knowing your FICO score can be helpful too. If you have a high score mention it to the company. These companies can verify your score in minutes so don’t bluff. The credit card companies want to keep their good customers. Higher scores reflect a lower chance of you defaulting and in the long run means more profits for them. They want to keep your business. The higher your score the better your interest rate can be.

Step 4 – Shop credit card offers

Every week you probably get a few of them in the mail, new offers. Save a few of the best ones and use them to negotiate with your current credit card company. Sometimes you will even get an offer for a new card with a lower interest rate from your existing credit card company. These seem like a no brainer, just call and have them change your current rate right? It’s not always that easy. You may get the run around.

Step 5 – Request Account Retention

When all else fails and you seem to be getting nowhere with the current representative ask to be transferred to the Account Retention Department. Sometimes you need to talk to the people who have a job to try and keep you as a customer. Often the account retention department has the final say on what your credit card rate can be lowered to. Keep in mind, you may have to repeat the first 4 steps again, but in the end if you get a lower interest rate it will be worth it. Be nice, but be persistent.

Is this really worth the time? Who knows? If you can get your credit card interest rate reduced by 5% and you have a balance of $5,000, does it add up enough to make it worth it? Of course it does! Five percent on a $5,000 balance is $250 in a year. Let’s say it takes you an hour to go through all of this with your credit card company, that’s like making $250 in an hour. Where else could you do that? Give it a try.

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How to Use Credit Card For Gas the Easy Way

November 8th, 2010



We love cars. But the price we have to pay, like literally pay, for each gas purchase seems too much to put up with. High-priced gas causes the life of a car owner to become more stressful and wretched. But you don’t have to become that kind! The perfect solution for your gas-induced problems is a credit card. How to use these cards for gas can be easily answered; it works just like a regular card. The only difference of a gas credit card is that you can use it every time you refill your car’s gas tank at a station that’s authorized by your card company.

What you have to do on every gas purchase is to simply present the card to one of the personnel of the authorized gas station. You will be given a discount and while you get a markdown, you’ll also be earning points. The accumulated points can be exchanged to free gas or other bonus features offered by your card company. In using your card for loading up on gas, you’ll definitely find it easier to manage your gas budget, since all your transactions are recorded.

So, if there’s still something in you that asks, “How to use credit card for gas,” then, you might as well try to apply for one and use it as a normal credit card. It’s only difference is that this is used solely for gas and other purchases from your credit card company’s partners. So, stop worrying about high-priced gas and start enjoying your card.

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Credit Card Approval Advice

August 18th, 2010



Credit card approval is easy if you have a high credit score and a clean credit history. This means that you pay bills on time and that you are a responsible debt payer. Because of this, credit card companies picture you as an ideal client since you are a responsible borrower. So before making your card application, find out what your credit score is. By knowing this, you will get a good idea of whether you will be approved or not. Knowing this will also be able to give you a general idea of how much your interest rate will be upon approval.

If you have a less-than-perfect credit score, it is not too late to improve it. If you already have debts due, make sure you pay them promptly at the appropriate amounts. Keep your credit history clean by starting today if you plan on making an application within in the next 6 months. By improving your credit history you will be able to increase your credit score. This in turn will give you a better chance to get your card application approved.

In the event that you are disapproved, don’t fret but find out why. This will help you figure out how to fix what is wrong with your situation so that when you apply again, you have a higher chance for approval. If you get rejected, don’t reapply at once. Let 2 weeks to a month pass before you make another application. No credit card company likes an applicant who seems desperate to get a credit card.

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