How to Compare Credit Cards
Credit cards have various benefits and perks as well as terms and conditions. Try to find the one that best suits your circumstances.
1. Fees
Many credit card companies do not charge annual fees but generally their APRs are higher. Those who do charge fees can charge as much as 3.2% but their APR is lower. Decide which option will suit your needs.
2. Interest Rate / APR
The APR charged can be anything from 15.9% to 19.9%. The good news is that if you pay your statement in full and on time every month, you can get up to 52 days interest free on new purchases. Your personal circumstances and your credit history will determine what APR the company will quote to you. It may be that you are offered a different rate than the one quoted.
Consider the rate charged when you would want to transfer a balance. A cash withdrawal rate or fee may be levied when you withdraw cash at an ATM.
3. Introductory Offer
The interest-free introductory period on purchases can be anything from 3 months to 18 months. After this, the card charges a typical representative annual percentage rate (APR) of, say15.9% variable. This tells you that you should pay off your debt within the interest-free period; otherwise you will pay interest.
4. Points/Rewards/Cash Back
All cards offer some form of pay back to their cardholders. It can take the form of rewards, cash back, discounts and the like. The card issuers normally enter into an agreement with specific retailers for this purpose. Clients can earn rewards at a variety of outlets from restaurants to shopping, travel and fuel. As much as 1% can be earned in rewards money, which is useful in these times. These rewards can be redeemed at selected dealers or, alternatively, can be saved for a large purchase in the future.
5. Provider
There are many credit card issuers to choose from. The interest rate and benefits offered by a specific provider may appeal to you, but do they have a good track record? What is their customer service like? Can you easily access a consultant at a branch or are online services available? Fees and charges should be as fair as possible. Which credit card does your parents, family and friends use? If they are happy, you can take your cue from them.
Other points to consider are:
You should be older than 18 years and have a clear credit record to be considered for a credit card. There will also be a minimum income requirement, i.e. you might not earn enough to qualify for a credit card.
If you are someone who wants to manage your card online, make sure that you apply for an online credit card.
Many sites are available where you can go to do a credit card comparison. It will be to your advantage to do the homework first and apply for the card second. That way you can make sure you get the best card for your needs
Getting Approved For A Credit Card Can Be Difficult
Getting approved for a credit card can be difficult without a positive credit history working in your favor. It’s a Catch-22: To obtain a credit card, you need a good credit history. But to have a good credit history, you need to establish good credit!
This no-win cycle can keep people with a non-existent, limited or negative credit history from getting approved for a credit card. But it doesn’t have to if you understand the type of credit cards available and how to build a good credit history.
When it comes to credit cards, the type of card you apply for will depend on your situation. If you’re a student, you’ll, naturally, sign up for a student card. But if you’re a non-student with a non-existent or bad credit history, a card that is secured or obtained with a co-signer may be your best option. With co-signed credit cards, the co-signer guarantees and is responsible for the debt. This means that the co-signing person is responsible for paying the full amount of the debt if the card holder doesn’t pay. In fact, when co-signed debt goes into default, three out of four times co-signers are normally asked to repay what is owed, according to the Federal Trade Commission.
Furthermore, the issuing bank can attempt to settle the debt without first trying to collect from the card holder. The bank can also use the same collection methods against the co-signing individual, including suing and garnishing wages. If the debt is not paid, it can leave a negative mark on the credit history of the co-signer, as well as the card holder.
Despite the risks, a co-signed credit card can be great tool for helping a friend or relative build their credit history so they can one day obtain a card on their own. Secured, co-signed and pre-paid credit cards offer viable options. But you should start building a strong credit history, so you can obtain a regular credit card on your own in the future.
First, you need to understand how credit card issuers determine credit worthiness. The approval criteria varies from among issuing banks, but generally relates to what’s often called the three C’s of credit: capacity, character and collateral. Capacity refers to your ability to pay based on your income and existing debt. Collateral refers to any assets you have that can secure payment, such as bank accounts or home ownership. Character refers to factors like your payment history, length of employment, etc.
To get a good idea about how your application will fare with credit card companies, check your credit history with one of the major credit reporting agencies: Experian (www.experian.com), Equifax (www.equifax.com) and TransUnion (www.tuc.com). These agencies access your payment information directly from the companies you have credit with, as well as from government agencies such as the legal court system.
Credit reporting agencies use the information in your credit history to determine your credit rating or credit score. Credit scores, also known as FICA or Beacon scores depending on the CRA, generally range from 350 to 850. Most banks will approve you for credit if your score is at least 620. If your rating is 720 or higher, banks will offer you their lowest interest rate.
Generally, y our credit score is determined by your payment history for the last two years. T echnically, CRAs calculate your score using a closely-guarded formula. TransUnion, for example, determines credit scores using a variety of factors, including: how you pay your accounts, how much you owe and how often you’ve applied for credit.
http://www.credit-cards-rates.co.cc/
Article Source: http://www.articlesbase.com/credit-articles/apply-for-credit-cardgetting-approved-for-a-credit-card-can-be-difficult–819035.html
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8 Reasons to Use a Business Credit Card
Credit cards are fast becoming a business necessity. They’re flexible, easy to use, convenient and offer users the ability to make purchases instantly, anywhere in the world.
We’ve spent some time analysing credit cards aimed at businesses and have put together a list of our top 8 reasons to use a company credit card.
- Easy tracking of expenses and purchases – Using a credit card for business purchases makes it easier to track expenses. The majority of credit card providers offer comprehensive expense reporting (both online and off) which can save you countless administration costs and a lot of hassle.
- No more petty cash – Petty cash used to be the most popular way to pay for small, incidental purchases but the days of the petty cash tin are well and truly over. These days it’s more common for companies to make purchases online or over the phone. Providing key staff members with a credit card that’s attached to a business account means you can make instant purchases and reconcile expenses quickly and easily. 3. Rewards and incentives. The majority of business credit card programs offer rewards and incentives for users. Organisations can save money on a variety of goods and services from petrol to air travel, insurance and other professional services.
- Build business credit – One of the most important reasons for applying for a business credit card is to build your business credit. This will come in handy if you need to take out a business loan in the future. Responsible use and a consistent payment history will be great assets to your credit rating.
- Separate business and personal finance – If you’re a small business owner you’ll know how important it is to separate business and personal finance. Having a business credit card will help with this division and will come in especially handy around tax time. Remember to keep your accounts separate and don’t be tempted to make personal purchases on your business credit card (or vice versa).
- Large purchases or unexpected expenses – There may come a time when you need to buy supplies, make a one-off payment or pay a large bill. Business credit cards help you to make these one off payments quickly and are more convenient than applying for a business loan.
- Embrace the quiet times – Cash flow is a major concern for all businesses and even more so if you have employees or creditors that rely on your payments. A business credit card can help you cover the quiet times and the seasonal lulls.
- Say goodbye to cash – Having cash on-site or carrying it around with you is not a good idea. Business credit cards reduce the need for ready cash making your business less of a target for theft or loss.
If they’re used responsibly, business credit cards can help you run your business better and even save you some money.
Article Source: http://www.articlesbase.com/credit-articles/8-reasons-to-use-a-business-credit-card-2993484.html
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Find more info at the credit card comparison website; Credit Card Researcher, inlcuding business credit cards. Australia’s best credit card comparison website.
Utilizing Corporate Credit Cards To Your Advantage
There are plenty of great advantages to be found with corporate credit cards. Since they will help you to be in a position to get what you require for your business, it is essential to have the proper cards. Just like personal credit cards, they are going to extremely in credit limits, credit terms, and the rate of interest you have to pay on them. You certainly want to pay attention to all of these details.
Do you know how a lot your little business credit cards cost you to use? If not, then you require to discover out prior to you continue using them. Make sure you only access little business cards from those companies that have a solid reputation. Do your homework and find out what the reviews have to say about that particular company. You will find excellent info from other business owners so that you can make an informed decision. Avoid any business that you can’t find information on.
Will you need a number of corporate cards for one account? This is typical for companies where employees have to have a way to pay for business related expenses. This might not be important to you depending on how your business is set up. Appear for the cards that offer you fantastic perks. Every business wants to out shine the next so that they can get you interested in them. Frequent flier miles are essential if you frequently use the account for travel. Many corporate cards also give you cash back rewards. This can add up to a nice chunk of money at the end of the 12 months for your business. Any time that you can get some thing like that back from a credit card company it is worth looking in to. You want to make certain you aren’t paying a high interest rate to get individuals rewards though. If that is the case, you may find you end up paying much more in the finish.
Do some checking about the kind of client service rating that a specific company has to offer as well. You want to feel confident that all of your needs are immediately heading to be addressed. Failure to get the customer service you require for your corporate credit cards can outcome in issues for your company so this isn’t an issue you want to blow off in your evaluation.
As lengthy as you work hard to get accurate info about little company card provides, you will be in a position to make wise options. You certainly need to evaluate the overall price of the credit cards in your final decisions.
Article Source: http://www.articlesbase.com/finance-articles/utilizing-corporate-credit-cards-to-your-advantage-3262440.html
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