History of the Cash Back Credit Card January 19, 2009
Posted in : Great Mathematics Tips , comments closedCash back credit cards have been an option for cardholders for around 15 years. Despite having been around for awhile, cash back credit cards continue to remain popular with consumers. The reasons for this are obvious – everyone enjoys receiving free money!
A Change in Thinking
When cash back credit cards were introduced to the market, they were warmly received. Three out of four credit card holders are still primarily concerned about obtaining a credit card with a low interest rate or a 0.00% introductory APR, but the demand for cash back credit cards remains strong.
The Target Market
Credit card companies hoped to draw in large numbers of new cardholders when they introduced the cash back credit card – and the strategy worked. As time has gone on, however, more people have started to realize that the best candidates for cash back credit cards are those that pay off their balance at the end of each billing cycle. This is because cash back credit cards tend to have higher APRs than credit cards that do not offer special programs. Therefore, you will probably pay more in finance charges each year than you earn from the program if you do not pay off the balance in full at the end of each billing cycle.
The Evolving Percentage of Rewards
When cash back credit cards were first introduced, they simply offered a flat percentage rate of return. With most cards, this rate was 1% and the rebate was sent to the customer at the end of the year. This practice, however, became too costly for credit card companies. Therefore, they began introducing earning structures. With these structures, cardholders earned back a fraction of the original 1% on their purchases for all purchases below a specific amount. Often, this specific amount was $2,500 each month. The form of determining rewards continues with most cash back credit cards today.
Breaking the Mould
Although many cash back credit cards follow a strict earning schedule, some of the best cash back credit cards are still quite generous. The Citi Dividend Rewards MasterCard, for example, provides cardholders with a 5% return on purchases made at gas stations, grocery stores, and drug stores. All other purchases receive a 1% cash back return – and there are no caps on how much can be spent, and earned.
Keeping You Organized
Cash back credit cards have also changed to make keeping track of the money you earn. Many cash back credit cards simply print the amount of money earned back onto the billing statement each month. Some will send the money automatically after it reaches a certain amount or at the end of the year. Yet others require cardholders to call to order a check after the earned cash reaches a certain threshold.
Beware, however, that some cash back credit cards are not quite as simple to understand and to follow. Some can be a bit confusing because the credit card company does not show the amount of money earned on the billing statement and does not specify how much is earned for certain purchases. Sometimes, you will have to contact customer service in order to find out how much money you have earned up to a certain point.
If you are somebody that is not very organized, you might want to take advantage of a cash back credit card that automatically sends a check to you and that keeps track of your earnings for you. Credit card companies that require cardholders to call to request their checks are counting on your forgetfulness and hoping you will never ask for your check. Of course, this results in greater profits for the credit card company and leaves you without the reward you have earned. So, be sure to know yourself well enough to take full advantage of the rewards offered by cash back credit cards.
To understand more about how a cash back credit card works, Robert Alan recommends that you visit CreditCardAssist.com.
Bankrupt! But Still Receiving Credit Card Offers January 12, 2009
Posted in : Great Mathematics Tips , comments closedThose who have bad credit or who have recently filed for bankruptcy may be surprised to find that they are still receiving numerous credit card offers. This has become a well known issue, and it is apparent that banks either don’t know or don’t care that the people they are sending offers to already have bad credit. In most cases, banks and credit card companies don’t take the time to research people they send offers to.
While most credit card companies are partial to consumers who have excellent credit, some companies have programs that are directed towards those who have little or no credit. Despite this, credit card companies should still not be sending offers to consumers who have filed for bankruptcy or defaulted on their credit cards in the past. In most cases, banks are either intentionally sending offers or just don’t know about the credit history of those they mail offers to.
Traditionally, credit card companies have used a business strategy that is very profitable. They would charge consumers 19% interest on the money that was borrowed, and they would also charge an annual fee that could be a high as $20. Combine this with the money the received from retailers who accepted their cards, and you are looking at an industry which generates billions of dollars each year. During this time, banks were cautious about who they gave cards to, because they couldn’t afford to suffer heavy losses.
By the 1990s, banks begin to have access to detailed credit information about their customers. Institutions like Equifax, TransUnion, and Experian allowed banks to make specific decisions about customers who applied for credit cards. With this technology, you have to wander why credit card companies would send offers to anyone, including those who have filed for bankruptcy. The answer is because it is cheaper to mass mail cards to thousands of consumers rather than look for specific individuals who qualify.
It is best for those who have bad credit to avoid applying for these offers. If you get denied, you can be hurt even more, and you should want to repair you credit. If you want to avoid all credit cards, it may be a good idea to look at prepaid debit cards, which can be used like credit cards without the problems often seen with them. The use of credit cards is important in the US, and if you can’t apply for one there will always be other options.
Joseph Kenny writes for the UK Loan Store, visit them here, Personal Loans Store and more information on bad credit loans available on site.
Visit Today: http://www.ukpersonalloanstore.co.uk/
Student Credit Card or the Bank of Mom and Dad January 10, 2009
Posted in : Great Mathematics Tips , comments closedStudent credit cards can be a quick and easy solution to an unexpected cash crunch. Let’s say you work at a local hot-dog stand on weekends to help make ends meet. But the boss ran into a little gambling problem and couldn’t pay you this week. But you bought a case of beer for the weekend and your last text book will finally be in at the bookstore on Monday (only a month late). This is an excellent situation to put a student credit card to use. You know you need the book, you know that your boss will have the money next week, and you’ll be able to pay off the debt easily. This is a great situation to use a credit card as a student.
Now let’s say that horror of horrors the hot-dog stand job falls through. Now you’re in a serious bind. Not only are you short on cash, you’ve got no new cash coming in, perhaps for a long time. In a case like this, for those who can, it is time to call on the bank of Mom and Dad.
Now I should perhaps explain what the Bank of Mom and Dad is supposed to be. Well it is basically just what it says: Hitting up your parents for a low/no interest loan to see you through a hard time. Now of course not everyone has this background support. In that case, you can think of the Bank of M&D as being any low/no interest source of funds you can find (real banks, line of credit, scholarships/bursaries). The basic principal remains the same.
In a situation where you are going to need money for a longer period of time use money that costs you the least to borrow. Typical credit cards, especially for students, start at 19% and go higher. These days, if you qualify, a line of credit or a personal bank loan can be in the 6% range. There are many scholarships and hardship bursaries available on every campus, often from multiple sources (student union, your department, the university, private sources).
Regardless of whom you are or what you are studying, you need to take care of your finances while you are a student. You will most likely end up in a situation where your money runs out and you need to pay for something essential like food. When it happens to you, calmly size up the situation and decide which route is best for you at that moment: a quick fix with your student credit card or a longer term solution with a low or no cost loan from the Bank of Mom and Dad (or similar sources).
Mike Avro provides Student Loan Consolidation information and resources to get your on your way to student credit card debt relief.
Credit Card Applications – Getting Accepted December 26, 2008
Posted in : Great Mathematics Tips , comments closedAlthough they can be painful at times, life today without the ease of a credit card is no longer a reality. So, if you think you want a credit card, here are some essential factors you’ll need to consider when applying for a credit card:
Your Credit History
One of the most essential elements to applying for a credit card is what you current credit history is.
* If you have a bad credit history, then it is going to be much harder applying for a credit card.
* If you have a good credit history, then it is going to be much easier applying for a credit card.
* If you have no credit history, then you may well need to create a credit history, by having a loan or hire-purchase agreement, before you can apply for a credit card.
If you’re in any doubt what your credit history may be, then you should apply for a copy of your credit history. You can do this by applying for a copy of your credit history from a credit reference agency – who may charge you a small sum for providing this to you.
Credit Card Limit
Having discovered that you have a good enough credit history to apply for a credit card, the next thing you need to do is to decide on how much of a credit line you want to apply for. Normally, what your income is will decided this – but sometime your savings can also be important.
Depending on what your income and savings are, you can then apply for a regular credit card, gold credit card, or platinum credit card.
Submitting Your Credit Card Application Form
You now need to go through the process of choosing which credit provider meets your needs. Once you have done this, you can then submit an application to that credit card company.
Once the credit card company you have applied to has reviewed your application form, they’ll either approve your application or ask you to comply with certain conditions. The type of conditions they may ask you to comply with include asking you to have some money on a deposit account with them.
Credit Card Application Is Refused
If your application for a credit card is refused, you must ask why. If you don’t, you’ll never know whether the application has been refused because you failed the credit rating test or because you completed the application form wrong!
If you failed the credit rating test, then you know you need to apply for a credit card with another credit card provider. However, if it is because you filled in the form wrong, you can still reapplying using a correctly completed application form. So don’t be shy to ask “why?” if the credit card provider tells you that you failed in your credit card application!
Joe Kenny writes for Credit Card Guide, offering the latest information on credit cards in the UK, visit them today us to apply for a balance transfer credit card and start clearing credit card debt today.
Visit today: http://www.cardguide.co.uk/
How to fix your credit score and qualify for a home loan December 14, 2008
Posted in : Great Mathematics Tips , comments closedOne might be wondering why some lenders turn down a mortgage application while some others might consider it fit for approval. The answer may well lie in the credit report and the credit score to be precise which plays a crucial role in loan sanctioning.
Credit history is an important factor affecting loan granting decisions by the lender or mortgagee. As part of the pre-approval process a detailed investigation is carried out into your financial history whereby the lender assesses your finances, your credit history and your investments. Your debt ratios are compared with the lender’s standard while deciding on the loan approval. Your level of debt or credit history is taken as a parameter for judging your ability to make the monthly repayments. The credit history as represented by your credit report plays a very crucial role since some lending institutions may even turn you down because of incompatibility with their lending standards. Too much debt and poor credit rating is a common reason cited for turning down a mortgage application.
At times your application may not be rejected altogether but you may have to settle for a loan amount lower than what you desired or expected. The other terms and conditions of the loan might also not have proved worthwhile for you. All these could have been avoided had you been a little more careful and vigilant while placing your documents about your personal finances as reflected by records of your earnings, monthly expenses and debts. Among these documents the credit report is of prime importance which reveals your credit score.
While considering your application the lender will also get to analyze your credit report. This provides all details about your financial history, payment records, total debts and bankruptcies (if any). This information is used to work out your credit score or FICO score (a rating of Fair Isaac and Company). This is a composite number-a numerical rating of your credit worthiness. These scores may range from 300-900. However, most people’s score fall between 600 and 700. Higher credit scores make you more appealing to the lender. Thus, you will be more likely to be offered better rates and loan terms.
A number of factors can affect the credit score. They can be broadly classified as:
a) The length of time you have had credit, outstanding credit, methods to repay this and how close you are to your credit limits.
b) Problems with credit which you may be having like late payments and bankruptcies. The number and frequencies of your delinquencies is to be considered.
It may be noted that almost 80% of credit reports contain errors. Getting for yourself a copy of the report beforehand will enable you to take steps for improving your score.You will be availed of the opportunity to review the report and rectify the score to quite an extent.
Some steps which can be taken in this regard are:
a) Finding out credit cards which are not needed anymore and closing the corresponding credit accounts.
b) Settling outstanding accounts, if any.
c) Paying out your bills, debt payments on time and in full and reduce your outstanding credit.
d) Verifying all listed account numbers and getting assured that they are yours.
It may be noted that minor credit problems or problems cropping up due to illnesses or temporary loss of income due to some unpredictable occurrence will restrict your chances of getting the aspired loan only from some high-cost lenders. Other lenders will hopefully be considerate enough to overlook such minor problems.
In spite of the best efforts there may still be certain negative indications in the report which could not be done away with. In such case you need to explain the situation to the lender. If at all it cannot be explained then, perhaps, you have to make greater down payments.
Getting to know how credit record affects loan prospects, proceed towards making improvements in your credit report. Your loan prospects will improve, no doubt. It will take you a long way towards securing your desired mortgage loan.
Lance Williams is an accomplished writer with specific expertise in the Mortgage and Real Estate field and has been involved for quite some years with MortgageFit LLC as a content developer. This is his newest article regarding credit report and credit score. For more information visit his site: MortgageFit.com
Common Credit Card Charges December 10, 2008
Posted in : Great Mathematics Tips , comments closedIn recent years, the UK credit card industry has undergone absolutely massive changes. It is practically unrecognisable from the industry that was present even just a few short years ago. The competition that has flowed in from other countries, especially the United States, as well as from internet lenders and other institutions has meant that there are now more offers and more products than ever before.
Some of these offers would have been unimaginable in the past. You don’t have to go back very far to think of a time when no one had heard of zero per cent balance transfers. Not to mention zero per cent on purchases which is now available. Then there is the whole range of rewards schemes and loyalty schemes that lenders are offering in an ever heating bid to claim a larger market share.
Despite these massive changes in recent years however, it is certainly the case that credit cards can still cost a lot of money. In fact we spend more money on credit cards now than ever before. The UK credit card industry makes billions of pounds every year in profits and it shouldn’t come as a surprise to anyone to learn that all these offers aren’t being made to the public out of the good kind hearts of credit card providers.
The main charge that we still incur when using our credit cards is interest on out card balance. If you incur a balance on your card, and don’t pay it off by the end of the billing cycle, then you will be charged interest on the balance. This interest is among the highest of any credit available in the UK. While loans are coming in at six to eight per cent, credit cards rates typically average anywhere up to twenty five or even thirty per cent. The rates are far higher than other sources of credit.
However, interest on your account balance is not the only place you pay for your credit card. There are a host of penalty charges for people who fail to make their repayments or who do so late. These penalty charges can become very expensive if you get into the habit of paying your bill late and they will soon add up. There are also some credit cards that charge an annual subscription fee. While these cards purport to do so to give them an air of exclusivity, these days when cards are so common, it seems to make little sense to pay for one when you don’t have to, and there seems to be little benefit for doing so.
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Joe Kenny writes for the Credit Card Guide, offering the latest 0% credit cards, visit today for introductory balance transfers and start clearing credit card debt today. |
Before You Compare Credit Card Offers
Posted in : Great Mathematics Tips , comments closedAre you thinking of applying for a new credit card? If so, you may want to begin asking yourself what your personal financial goal is. After you’ve recognized your own needs, you can then pick the category of card you desire and begin your journey to compare credit card offers.
For a student who is applying for a first credit card there are a number of credit cards available that include a variety of features. The benefits of each card vary and can include 0% APR introductory, no annual fee, and rewards offered such as cash back, selected merchandise and entertainment
Quite often a student credit card has a lower credit limit which is actually a plus. It introduces the student to the world of credit, while limiting the chance of running up too large of a bill. An added bonus of a student credit card is it helps to build that needed credit rating which is important in today’s world. Of course, the student needs to maintain the credit card account in accordance to the issuing company’ terms and conditions.
There are available airline credit cards. But if you wish to travel on more than one airline, perhaps a rewards credit card that offers bonus travel points would be more suitable. The benefit to a reward card would be that the owner has a choice of how to spend those bonus points. In addition to air miles, the added choices include cash back, selected merchandise, entertainment and gift certificates.
If you already have a number of credit cards that you’re paying the minimum balance and they charge an interest rate of more than 0% APR, you might consider a balance transfer credit card. With an introductory 0% APR, you could have anywhere from six to eighteen months to pay down your debt interest free.
Even if you already have bad credit there are still credit card opportunities for you to apply and even receive instant approval. A credit card for people with bad credit, has a higher interest rate than cards for more stellar credit. However you can avoid these higher fees if you pay your balance billed each month. After you’ve been able to rebuild your credit, you can then talk to the issuer and get a lower interest rate or reapply for a lower interest credit card.
Two additional cards are available for people with bad credit or for people who don’t really want to owe on a credit card, but need a card for the convenience of ordering merchandise by telephone or on the internet. These are prepaid credit cards and debit cards.
These two types of cards can be obtained by completing an easy application and making a specified deposit. They work just like a regular credit card and are also accepted at any ATM machine, giving you total access to your available funds.
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Bradley Carson is the editor and webmaster of Apply Online For a Credit Card at cards-king.com A website established to provide concise information about credit cards and credit card offers from premier financial institutions. |
Details Of The Orchard Bank Secured Credit Card Application
Posted in : Great Mathematics Tips , comments closedWhen someone has a limited or a rather poor credit history, they may want to look into the Orchard Bank Secured Credit Card. Offered through HSBC Bank Nevada, N.A. this MasterCard is just what those who are looking to restore and re-establish their credit could use.
The annual fee of the Orchard Bank Secured Credit Card is quite reasonable at $35. The variable APR of 15.90% is an average rate for such a card. The variable APR on cash advances, however, jumps significantly to 23.40%! The finance charges are applied to any purchases that are not paid for within the first 25 days, and there are charges for other services like cash advances. The maximum deposit allowed on the Orchard Bank Secured Credit Card is $15,000, and the minimum deposit is $200. Late payment and over the limit fees are $29 each time they occur.
One thing to note when you are looking at the Orchard Back Secured Credit Card: minimum caps do apply to the APRs for both purchases and cash advances. No matter what the Prime Rate is, even if it falls to low levels, the APR on this card will not go below the minimum rate.
There are perks to the Orchard Bank Secured Credit Card that you won’t always find on cards of this type, though. The card provides cardholders with services and benefits like online account access, emergency card replacement, and other various fraud protection services. You also do not have to pay an application fee when you apply for this MasterCard.
So, if you plan to pay off your balances, this card can help you to build or re-establish a positive credit history. With a low annual fee and no application fee, cardholders can expect to pay $35 for their Orchard Bank Secured Card every twelve months.
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For more information or to obtain the Orchard Bank Secured Credit Card application, Joshua Shapiro recommends Find Credit Cards. |
Miles Credit Cards – Questions Answered November 28, 2008
Posted in : Great Mathematics Tips , comments closedBefore you decide to apply for miles credit cards there are a couple of questions you should ask yourself. What benefits are offered by the airlines for their respective miles credit card? What miles card would give me the most in a small amount of time?
Whether you choose a miles credit card that is sponsored by an airline or one that is sponsored by more than one, they normally allow the cardholder the benefit of collecting points to use on their airline or any respective airline that is sponsoring that specific card. The problem may be that the airline or airlines with this miles card do not have regular flights to your destinations.
Many banks are now offering miles credit cards with many more benefits such as choosing from a list of airlines and destinations. If you only use one airline then you may wish to choose the miles credit card from your airline that will only allow you to gain points while traveling with them and only use them for transferring your points into free flights, hotel accommodations, and car rentals. However, if you normally do not travel with just one airline, choosing one that gives you the freedom to use several airlines will be much more beneficial to you in the long run.
Miles credit cards are very advantageous to those that travel regularly for business purposes, as they will be accumulating a significant amount of air miles points over time. Then these points can be redeemed for free airline tickets from the earned air miles. In essence, everything you purchase utilizing your miles credit card will be working toward free air miles and free travel. You can use your points to gain such things as free or discounted airline tickets to your favorite destinations, hotel accommodations and car rentals.
Every airline or credit card company that offers miles credit cards have different credit card tiers such as gold, platinum, or bronze. Each one of these also carries different incentives. Most of these miles credit cards will have either what they call a membership fee or an annual fee. What this really means is the more rewards you are offered the more you will be paying in fees. You will be able to get a higher credit limit, however, your annual fees may be higher as well.
Many miles credit cards have introductory offers that will give you 0% APR for the first few months or sometimes as long as 12 months, after which the APR usually raises considerably. Therefore, you must pay close attention to what the APR will be after the introductory special.
Remember, if you do not use your accumulated points in a designated amount of time the points that you gained while using the miles credit cards will expire. If you do not plan on traveling and making enough purchases to redeem the points then miles credit cards may not be the way for you to go.
For more on the best miles credit cards available, Robert Alan recommends that you visit CreditCardAssist.com
Establishing Credit with a Student Credit Card
Posted in : Great Mathematics Tips , comments closedOne of the best ways to establish a credit report is to acquire a student credit card. However, there are a few things you should be aware of if you decide on this. One of this is the fact that your credit report will be kept and maintained by credit bureaus. Thus, whenever credit companies want to look up your credit history, they will contact these bureaus for it. Information on your payment patterns and outstanding payments for your student credit card, both good and bad, will be recorded here.
Essentially, no one can legally change the contents of that report and everything remains in there for up to a decade. Thus, it is important to maintain a healthy credit report by making payments on time, starting with your student credit card. Having a good credit report has a huge impact on loans and on future applications for other forms of credit services, including other credit cards. For instance, low APR cards are everybody’s favorite but they are usually reserved only for those with good or excellent credit histories.
In order to acquire an excellent credit history, it is best to pay up your monthly outstanding balances before they are due. This may be harder to achieve if you are a student as you do not have steady income and therefore need to plan your expenditure accordingly. Use your credit card only when you really need it, and set payment reminders in your personal calendar each month.
Some students practice credit card surfing by using a 0% APR student credit card, maxing out the credit limit and getting a new card for their upcoming expenses. This does huge damage to your credit report as you are basically living off debt even before you have the ability to earn your first paycheck. What’s more, when the 0% APR term is over, your interest rates will escalate and your debt will snowball rapidly. At this point, your credit report will be tarnished, leaving you with a pile of debt that you struggle to pay off and high interest rates for future credit applications. Your only option now would be to adopt a credit repair strategy, which will most likely be painful on your ludicrous lifestyle.
Adam Goldman recommends Find Credit Cards to find a Discover student rewards card.