How to Improve Your Credit Score After Filing for Bankruptcy

Filing for bankruptcy can cause your credit score to go down drastically. Worse, it can affect the overall quality of your life for quite a long time. Once you have filed for bankruptcy, you are no longer considered creditworthy by lenders and you may find it hard to get approved for credit cards, car loans, and house loans.

Fortunately, there are ways by which you can improve your credit score even after filing for bankruptcy. Such means, while simple, may be able to help you raise your credit score back to the way it should be.

Below are some of the tricks on how you can improve your credit score after filing for bankruptcy:  

Check Your Credit Report

Credit reports may contain errors about your credit and payment activities. Such errors can drastically affect your creditworthiness. As such, it is recommended to check your reports regularly and to make sure that everything is being reported there as is.

It is important to note that your credit report does not contain your credit score. However, you can verify its contents to make sure that all items are correct. Each account in your bankruptcy declaration should be identified as “included in bankruptcy” or a similar phrase. You can file a dispute if one or more accounts are still currently being hold as debt.

Have a Budget Plan

Always have a budget plan. Especially that you have declared bankruptcy, it is even more important to keep a budget plan to help you track and budget your finances. A household budget that tells you how much you spend on specific things, such as household expenses, loans, groceries, and the like, is a good start. If you have any credit card open, strive to pay the bills on time. Never delaying payments can help boost your score.

Use a Secured Card

Although it makes sense that you should not open any credit card account for the time being, a secured card is an option, especially if you have closed all your accounts. This is a type of credit card, but does not work the traditional way. Instead of you borrowing money with the potential of getting into debt, a secured card does not pose such risk. You need to provide a security deposit, which will, in turn, limit the amount of money you spend.

Set Up Payment Reminders

You may have student loans, mortgages, credit card bills, and others that need to be paid off on time. You can use a payment reminder tool, which will notify you of pending bills that you have to pay right away. You can also choose to pay for the bills automatically by linking to your savings account.

If you follow the right path after filing for bankruptcy, it is possible that you will be able to regain your good credit rating. Paying credit card balances on time and making sure that you have enough money to fund your daily expenses can make a huge difference.

Why Issuers May Suspend a Credit Card Account

Having your card declined at the checkout counter can be alarming. Before you start panicking and fearing the worst, though, know that there can be several reasons for this. For one, it could be that your card issuer has only put your account on a temporary hold. During this period, you are not allowed to charge your purchases with your card. There are instances, though, when creditors cancel a card because of one or many compelling reasons. Note that all card issuers have every right to suspend a credit card account.

If you have had a credit card account cancelled, any of the following could have been the reason:

Card Dormancy

If you have not made any transaction with your credit card for some time, the issuer may decide to suspend your account. Years ago, when cardholders become dormant, they often charge fees for the inactivity. However, with the provisions set under the new CARD Act of 2009, creditors are no longer allowed to charge these fees. However, they are allowed to suspend accounts that have been inactive for a certain period. If you don’t want your account to be suspended, simply use it at least once every three months each year.

Payment Delinquency

Every card has a specified minimum amount that cardholders need to pay each month (unless they have a charge card). This is stated in your card agreement. If you fail to make the required minimum monthly payment even for just a single month, the card issuer may suspend your account. Some issuers may be more lenient, though, and may give you a chance to redeem yourself for up to 180 days. Nevertheless, if you miss the mark by then, you face the risk of having your creditor close or suspend your account.

Bankrupt Bank

If, by an unfortunate situation, your bank becomes unprofitable, they have the option to stop operating. This is bad news not only for the financial organization but also for the consumers. Most banks sell their card accounts to another issuer. In this case, your account will be temporarily shut down. You can reactivate your card by paying for it as if you are applying for a new card.

Miserable Credit Score

Universal default is no longer a threat to consumers, thanks to the CARD Act. This means that card issuers do not have the power to raise your interest rate simply because you were late in paying off a card from another issuer. However, even though this is the case, individuals whose scores suddenly plummet may experience account closure or termination.

Response Required

If your creditor has a new set of fees that will be soon imposed on your account, they will send you a notice regarding the upcoming change. You have every right to reject the new conditions. In return, the creditor also has the right to end your relationship with them through the cancellation of your account.

Fraud Suspect

This is the most typical reason why issuers suspend credit card accounts. If they have tracked down suspicious activities, your card will be put on hold. This is for security purposes but if this is your case, it is easy to reactivate your account. Simply contact your creditor and provide proof that you are the true owner of the card.

Suspension of card accounts can be damaging to your credit score especially if the accounts have outstanding balances. Contact the issuer as soon as you discover the account cancellation to immediately remedy your card’s status.

American Express - A Major Credit Card Company

American Express is one of the largest card issuers in the United States. It is also recognized across the globe as a top credit card company especially designed for the rich and famous. But AMEX does not only cater to the wealthy; it caters to people with varying requirements. As such, whether you are a traveler, a businessman, or an individual simply looking for a card that you can use for your purchases, American Express may just have what you are searching for.

History of the AMEX Cards

American Express is best known for its credit and charge cards. However, the company actually started as a shipping firm back in 1850. People turned to AMEX when they needed to send large sized and valuable shipments since the US Postal Service only allowed letter sized packages. The company’s main customers were banks and brokers. In 1882, they went head to head once again with the US Postal Service when they issued money orders. In 1891, they issued the Traveler’s Cheque to allow those who travel abroad to enjoy an easier process of exchanging cash when they are in smaller cities. The Traveler’s Cheque was then accepted as a letter of credit. Soon enough, American Express became internationally renowned with the mentioned product and as a railroad company as well. However, they concluded their railroad services in 1917.

American Express was the first to come up with the idea of charge cards in 1946. But the Diners Club was the breakthrough product in 1950. Eight years later, American Express saw just how serious the concept of charge cards was, so they began issuing their first major charge card with an annual fee of $6. The fee was a dollar higher than the Diners Club, but it was a marketing strategy—to make AMEX the real premium charge card. Since then, AMEX has become a symbol for prestige and exclusivity.

Why American Express Cards are a Must-Have

AMEX is considered as a card issuer that provides the best customer service. The award-winning support it provides for its consumers never wanes and only grows stronger over the years. Moreover, American Express cards come with many benefits that only card members can enjoy. Among the popular ones include:

• Presales – Such are offered on select shows, where you can avail of tickets that are not even on sale yet. The tickets are only available to the card members.
• Preferred Seating – If you are a fan of Broadway shows, you can choose where to sit if you have an AMEX card. This is mainly available for card holders of Gold, Platinum, Centurion®, Delta Reserve, Platinum Delta SkyMiles®, and Corporate Platinum cards. You can call AMEX to inquire whether you can take advantage of this excellent offer.
• Rewards – Exclusive rewards are granted as well. You can use your points to earn tickets, gift items, and merchandise among others. To avail of the offer, you should have good account standing and enough points to cover the transaction.

American Express is a trusted name in the credit card industry. If you ever want to get a card that can help you with your everyday purchases or one that fits your lifestyle, an AMEX card may be right for you.

Disadvantages of Having Low Credit Rating

Your credit rating is highly important because it determines your overall credit worthiness. Depending on your score, you can either get that loan you have so desired—be it a house loan or car loan—or get denied by lenders. As such, it is a must that you take good care of it and keep it a high level as much as possible. Low credit rating can have an adverse effect on you and you will definitely miss a lot of luxuries in life if this is your case. Below are some of the disadvantages of having low credit rating:

• Creditors see you as a risk. The lower your score is, the higher you will be considered a risk. When creditors look at your credit report and they see a low score, they may deny your application for loans or credit cards. If they do, they will most likely give you high interest rates, which will not be of help to you. 
• It will be extremely hard for you to get your loan or credit card applications approved. It is easy for those with excellent credit to find and get a new credit card. Most companies are willing to dole out new accounts to people with reliable payment history. This is not the case for people with low credit scores. If you have a low score, lenders may not be willing to take a risk on you. As such, they will likely deny your application.
• A lot of landlords will turn their backs from you. Some landlords may ask to see your credit history to check if you could be trusted to pay your lease on time. As such, with a low rating, you may find it hard to find landlords that will take you in. Therefore, finding an apartment will definitely be a big challenge for you unless you have good credit history. Fortunately, there are still some landlords that may not ask about your credit standing, but it may be hard to find them nowadays.  
• Your prospective employer may not hire you. Even if you have a fantastic resume, some employers may consider your credit history before they hire you. If they find that your score is less than favorable, they may view you as a risk as well. There are employers that base their decisions on how an individual handles his credit. For them, if you can’t manage your credit, how much more your job? 
• You may be compelled to place a security deposit on utilities. Many electric and phone companies are now taking credit history into account. People with bad credit rating may be obliged to pay a deposit so that they can use the service. This is applicable even if you pay all your utility bills on time. 
• Cell phone companies will turn you down. Cell phone companies use credit history to determine whether they can rely on you to make payments. If you have bad rating, you may have to use a prepaid phone, look for another company that may consider your situation, or live without a cell phone. 
• You will receive nonstop calls from debt collectors. People with bad credit may have past due bills. If you do, there is a huge chance that debt collectors will call your home and office phones day and night to get the money you owe.

The good news here is that these difficulties can be avoided. The key is to keep your rating high. Don’t ignore your bills and make it a point to pay them on time to never incur interest. Your good credit behavior will pay off in the long run. If it can't be helped and you are already finding it hard to pay all your bills, you might want to consider getting some help, like getting a secured balance transfer card, which you can use to slowly establish a good credit score. 

Tips for Choosing the Right Credit Card for Your College Student

Choosing the right credit card for your college student is both challenging and exciting. As a parent, you need to assist your child in understanding the fundamentals of credit accounts. Before a young adult enters the campus, plastic offers may already be pouring in. Your guidance is required so that your teen can select his or her first card wisely.

The ultimate goal for choosing the perfect credit card for your college student is to establish positive credit history as early as possible. Here are the important things to examine so that you can achieve that goal:

Annual Percentage Rate

Also known as the APR, this is the amount of interest where the card holder will be charged every month based on the remaining balance of the account. Credit cards today have an average APR of 14.9%. Since your child is practically a novice when it comes to this, expect that the APR is higher than the mentioned percentage.

Help your young adult understand that the APR is the easiest way to accumulate debt. If they carry a balance of $100 for one month, he or she will have to pay an interest of $14.90 on top of the balance. It is smart to find a low APR credit card for college students.

Credit Limit

This denotes the maximum amount of credit that a student can borrow. First-time card holders are usually given a low limit to begin with—usually around $300 to $500. While this is quite a small amount, it will be easier for him or her to defy the appeal of spending thousands of dollars.

Rewards

A credit card for college students that offers rewards gives an additional advantage. Some cards give back cash after spending enough credits. Others can be redeemed for gift certificates and merchandise. Ensure though that you discuss with your teen about the dangers of spending more just to get the rewards. Teach him or her to be strategic in using the card to avoid debt.

Fees

As much as possible, go for a college card that does not have an annual fee. Most cards, however, require late payment and over-the-limit fees. It is significant that your child understands the fee structure thoroughly.

Credit Card Options

Although the Credit Card Act of 2009 imposed a few restrictions on student cards, there are still a number of options for your teen including:

• Co-signed Credit Cards – Students that are below 21 years old can have a co-signer to get a credit card. Note that when the student cannot pay, the co-signer will be responsible for all the bills.
• Secured Credit Card – A deposit is required to start using the account. This is a good choice for beginners and is usually easier to obtain than standard cards. Plus, this can be used to build credit history since all activities will be reported to credit agencies.

The bottom line in choosing the right credit card for your college student is to be very cautious. Parents’ supervision is required so that students will understand that this positive tool can turn into a vicious financial instrument when used improperly.

Instant Approval Credit Cards

It is a known fact that not all people have the attribute known as patience. When sending out credit card application, you may have to wait a few weeks or even months just to learn that you have been denied. If you want to quickly know whether your application has been approved or turned down, go for instant approval credit cards. Usually, you will find online applications that only let you wait for 60 seconds.

A Word of Caution

It is recommended that you only apply for two to three credit cards at the same time. If you do this excessively, your credit history will be affected in a negative way. It is also helpful if you know your FICO or credit score. You may be applying for a credit card that requires excellent rating when you only have good rating. Issuers base their decisions mostly on your score.

List of Instant Approval Cards

Below are a few cards that offer instant approval. The benefits and features of each are also given to give you the opportunity to compare each of them and to make a good decision on which one will best meet your needs and your lifestyle.

Walmart MoneyCard MasterCard Prepaid Card. You can apply for this credit card online. You do not have to pay the issuance fee. There are also no overdraft fees and no minimum balance needed. If you have bad credit or you do not have a savings account, this card is perfect for you. Note that it is a prepaid card, which means that you need to deposit money on this account in order for you to use it for purchases.

DiscoverMore Card. This one has no annual fee and gives back cash rewards each time you use it for travel, and dining. Other expenses will give you rewards as well. This also has built-in protection against scams and fraudulent credit card charges.

Miles by Discover. If you are a frequent traveler, this card is perfect for you especially if you wish to know immediately if you have been approved or not. You can get thousands of bonus miles for your first year of owning the card. This has no interest fees on balance transfers for half a year and does not charge an annual fee ever.

First Progress Platinum MasterCard. A secured credit card, approval rate for this is really high. However, this may only work for you if you are a resident of the United States. You may not also be approved for this card if you live in Iowa, Arkansas, Wisconsin, and New York. The security deposit for this is refundable if you pay off your balance.

The First Progress Platinum Mastercard is great for people who have debt or those who are just starting out with building their credit history.

Apart from those listed above, there are still several instant approval credit cards that you can choose from. Most of these types of cards do not check credit history, but there may be a few that will consider your credit score. It is, therefore, imperative that you select the right card that fits your current situation. Learn about the requirements of each card first before you submit your application.

Secured vs Non Secured Credit Cards

With the popularity of credit cards nowadays, it may already be a given that you know what they are, what they are used for, and how they may affect the lives of people. However, not all people may be aware that there are different types of cards and that they may fall into two major categories: secured and unsecured.

Both secured and unsecured or non-secured credit cards may be used for the same purpose. However, they also have several differences that distinguish them apart from each other.  

The Big Difference

Both secured and unsecured credit cards can be used for purchases. They may have a rewards program for their customers and both may have rates that you need to pay yearly or monthly. However, they have a remarkable dissimilarity that most people tend to disregard. A secured card is easier to get but there’s a catch. You need to have a savings account, which will secure your line of credit before you can get this card. On the other hand, a non secured credit card does not require you to have a savings account, but is more difficult to acquire because most creditors require that you have at least fair credit rating.

Which to Choose

There are plenty of reasons why you should go for unsecured credit cards. There are also several reasons why a secured type may be the right one for you. To help you select correctly, here are some considerations that you have to think about:

• Annual Fees – Unsecured credit cards typically don’t have an annual fee. Those that charge annual fees typically have better rewards programs and perks that customers can avail of. Meanwhile, almost every secured card has an annual fee. Aside from that, most of them have an application or processing fee. You can even find a secured credit card that charges you a customer service fee.
• Quick Approval – If you want to get a card that has high approval rate and which you can get almost right away, a secured credit card is for you. The application process for this type is simple and usually, all applicants are approved regardless of their credit history. However, to be approved, you should be willing to spend a little cash on the security deposit as well as on other fees.  Unsecured cards, on the other hand, may take some time for applications to get approved. In addition, you may be required to have at least a credit score of 600 to 725 to be approved. Rewards – Years ago, secured cards didn’t offer rewards to the cardholders. Now, there are plenty of these types that offer stunning rebates and even discounts. However, if you really want a card that gives you greater benefits and incentives, an unsecured credit card is what you are looking for.
• Financial Assistance – If you are struggling with debt, it may be best to choose a secured credit card as this will help you to control your urge to buy unimportant things. With this, you will be obliged to live within your means since you will only be able to spend what money you may have in your account.

Making a major financial mistake can affect your life a great deal. A credit misstep will result to bad credit rating, which, in itself, has a lot of negative consequences. To avoid making blunders, it is important that you know which type of card to sign up for. Apart from that, you should also make an assessment on your financial ability before deciding to jump onto the credit card bandwagon. Are you a disciplined spender? Do you have good credit rating? Do you have the capacity to pay your bills on time if you are able to spend more than you originally intended? Knowing the answers to these questions can help you determine which of the major types ofcards available is right for you. It will also help you decide whether getting a card is really right for you.  

Miles Credit Cards

If you travel regularly, you will agree that free flights are the most irresistible incentive from credit card companies. Luckily, you do not have to exert too much effort just to land yourself some free air tickets. Aside from hoarding points as you travel, you also earn mileage as you make purchases. Miles credit cards are obviously designed for those who travel recurrently whether for business or for leisure.

Understanding Miles Credit Cards

Miles credit cards come in two forms. The first one is perfect for those who live in areas where there is a prevailing airline. With this type, rewards are limited to a single airline only. The other is for those who do not have a neighboring airline or those who choose to travel via different air companies. They are allowed to redeem rewards with any airline.

You can obtain a full range of incentives that you can use as you travel. You can redeem the miles that you have collected for airline tickets. You can also convert them into hotel stays and even priority boarding. Miles credit cards work just like conventional credit cards. You can use them for your everyday purchases, such as groceries and gas. Whenever you charge against your card, you get a specific number of miles for every dollar.

Top Choices

Dozens of credit cards that let you score miles are now available. One is the Starwood Preferred guest card. Issued by American Express, this provides flexible rewards for frequent travelers. This is officially a hotel card yet points are exchangeable to miles. Numerous airlines are supported with several bonuses to take advantage of. You can even earn a domestic round trip for free from the acquired bonuses.

Another great option is Chase Sapphire Preferred. The Ultimate Rewards points that you can accumulate is as weighty as this card is. Though there is an annual fee, cardholders can gain more miles than most credit cards with the same program today. Aside from the miles you earn as you pay your expenses, you will also receive an annual bonus to add to your current points.

Gold Delta SkyMiles credit card is a brilliant miles credit card issued by AMEX. Earn huge bonuses after spending your credit. Gather your miles for your next big trip and have your first bag checked without any charge. Collect as many miles as you want since they never expire even if you don’t redeem them immediately.

Credit Card Selection Tips

Compare the available choices you have before you sign up for a credit card. Look at the travel rewards and the key features as well. Some have miles cap while others have expiration dates. It is helpful if the card offers insurance on travel related situations such as renting a car and medical emergencies. You should also inspect the interest rates or the APR which can vary greatly from one credit card to another. There are also other fees that you may be required to pay such as over-limit fees, late fees, and foreign transaction charges.

Credit Card Debt Refinancing

People with credit cards tend to accumulate debt over time. Those who have been searching for an option on how to solve their situation may have already heard about refinancing. This is where you can apply for a loan and use the money to pay for all your credit card debt. Credit card debt refinancing can be done in two ways. One is to take out a home equity loan or second mortgage. The other is to transfer most, if not all, balances into another card that has low APR and high limit.

The Process of Refinancing

Refinancing is often used in paying off mortgages. For instance, if you wish to refinance your mortgage on your property, you will apply for a new loan. This loan should have a lower interest rate compared to your previous mortgage. It is recommended that the difference is at least 2% in interest. When you obtain the money from the new loan, you can now use it to pay down the other mortgage.

This process is now being applied to credit card debt as well. This is typically known as cash out refinancing, where you borrow new loan to pay off your debt. Usually, your home equity will be considered in determining how much you can borrow. For instance, if you have $300,000 debt on your home, which is originally $350,000, your lender may give you a total of $50,000. The amount reflects what you have already paid.

Why Refinance

If you need to relieve yourself from credit card debt fast, this is one of the best solutions. It allows you to gain some breathing space from your frustrating debt. Once you refinance, your credit debt turns into a secured debt, which you will pay off over a certain period. This duration depends on the conditions stated on your mortgage loan.

Probably the most important reason why you should refinance is that the amount you need to pay will be lower. This is in comparison with keeping the credit card debt and paying it off over time. Mortgages often have considerably lower interest rates than credit cards. In addition to that, the interest that you are paying on your mortgage is typically tax deductible.

Since you have displayed that you are unable to produce funds for your credit bills, you have already damaged your score. When you refinance, you help improve your rating over time. Make sure that you exercise early or on time payments to get his benefit.

A Few Things to Watch Out

Many experts advise against refinancing and they have very good reasons. Unless you know what you are doing, it is wise to avoid refinancing as much as possible. Refinancing can bear awful consequences if you don’t pay your loan. Most of the time, a collateral, which could be your home, is involved in this process. If you fail to meet the repayments, they can easily take away your property. It may also be difficult for you to find a lender that will approve your application since you have damaged or poor credit. However, if you are lucky, you may still be able to find a good issuer, such as those found at cardrewards.net, who may grant you approval with your application. 

American Express Starwood Preferred Credit Card

One of the leading cards for travelers is the American Express Starwood Preferred credit card. If you are a member of a frequent flyer program and you want to earn generous rewards, this card is perfect for you. Use your credit card for shopping and redeem free hotel stays. If you are a person who loves collecting frequent flyer miles, this is a great card to get.

Top Reasons Why You Should Get Starwood Preferred

There are many credit cards that let you collect points or miles. They can all be redeemed easily into varying perks and benefits. The Starwood Preferred from AMEX may seem like the other cards, but a close look will reveal that it has more to it than what you may think. Here are some reasons why this card is different from the rest:

1. Starwood influence. Starwood is an organization that manages and operates a great number of hotels and resorts worldwide. If you have the Starwood Preferred credit card from American Express, you can enjoy free stays, upgrades, and VIP services in Starwood hotels. These include Sheraton, Westin, Aloft, and St. Regis.  Once you have accumulated enough points, you can redeem them from any available hotel. There are no capacity limitations and blackout dates. Additionally, the redemption points are quite practical. If you are planning to stay at lower end hotels, the points required are much lower than those required for more upscale hotels.
2.  Point conversion to miles. If you participate in frequent flyer programs, you can use the points you have earned from Starwood Preferred. It is quite simple to add the points you have from your credit card to your frequent flyer account. Starwood is in partnership with many airlines so it is easy to convert the points to miles. Therefore, if you are short on miles, you can combine your Starwood points with your total number of miles. This way, you can get your free flight ticket from your favorite airline. The transfer of miles is free and most come in 1:1 ratio. You can receive bonus Starpoints as well every time you make a transfer.
3. Reliable customer service. If you have inquiries or complaints, rest assured that a customer representative will take care of your needs. They aim to impress their clients by means of responding promptly and providing effective solutions.
4. Quicker upgrade to elite status. The more you stay at Starwood hotels or resorts, the faster you reach the Gold status. What’s more, you are also eligible to earning the Starwood Preferred Guest (SPG) Platinum rank. Continue using your credit card for your hotel reservation and you will see the great difference. When you become an elite member of SPG, you can enjoy exclusive benefits. These include upgrades to rooms at the time you check in and permission to check out late. You will also earn more Starpoints once you reach the elite status.

Despite the annual fee and foreign transaction charge, the American Express Starwood Preferred credit card comes with immense generosity when it comes to racking up on miles. This is an inviting offer that no traveler can refuse.

Hotel Rewards Credit Cards

Let’s face it – hotel accommodations at the present time are expensive. The reality is that the prices will not go down anytime soon. The costs of both lodging and traveling have soared over the last few decades. Thankfully, there are ways on how you can save money even if you frequently travel. Enter the hotel rewards credit cards. Designed specifically for people who travel and book hotel rooms often, these credit cards can give tons of rewards including free hotel stays.

Two Types of Hotel Credit Cards

In order to find out which credit card will work best for you, there are two categories to consider:

·         Limited Hotel Card – These cards are connected with a particular hotel chain. Most of the time, you will get the best rewards if you choose to stay at that specific hotel. Among the hotels that provide a credit card are Hilton, Hyatt, and Marriott. If you stay at one hotel, this type of hotel rewards card is a gem for you.

·      General Hotel Card – This is issued by a bank or a financial institution. They have partner hotel chains as well but there is no restriction in the hotel chain you choose. Simply book your room with the card at affiliated hotels and you can get automatic rewards.

Top Hotel Credit Cards

Here are some of the best credit cards that offer rewards for travelers like you:

1.     Chase Sapphire Preferred – If you want a credit card with flexible options on the hotel where you can stay, this is the card to get. Hundreds of dollars’ worth of rewards is given when you sign up for the card. In addition to that, you get double points whenever you use the card for travel-related purchases. All other acquisitions will guarantee you a point for every dollar. If you are ready to redeem your points, there are plenty of hotel loyalty programs to choose from. You can also book flights with your points.

2.     StarwoodPreferred Guest Credit Card – This card is issued by American Express and is designed for Starwood loyal customers. For a limited time, you can earn thousands of points if you keep spending against your card. You can also be awarded with free hotel stays. Starwood has thousands of locations in almost 100 countries around the world. You can redeem your rewards even during holidays.

3.     AmericanExpress Platinum Card – If you wish to gain access to high end hotel rooms, this is the card that you should apply for. From the time you sign up for the card to your first purchase, you will earn thousands of points. These points can be converted to free hotel stays and air tickets as well. There are over 700 resorts and hotels to choose from. All of them give you the opportunity to stay at premium rooms with VIP treatment.

Aside from hotel bonuses, you can also use your credit card to qualify for elite membership status in the hotel of your choice. Evidently, there are more benefits obtained by elite hotel members.

Low Interest Credit Cards: Ways to Decrease Your Interest Rates

Carrying balances from one month to the next can be a problem and can hurt your credit score. You can lessen the burden on your budget by opting for a credit card that has low interest rate. There are even credit cards that offer no interest rate for a certain period of time. Enjoy charging against your card for your expenses without worrying about the high interest rates.

It does not matter if you will use the card to book for a hotel room, rent a car, buy home appliances, or transfer an existing balance. The knowledge that you will not pay soaring interest fees at the end of the month is reassuring. If you are currently paying high interest rates on your card, there are ways on how you can decrease it. Here are some of them:

1.     Know Your Exact APR - Look at you credit card bill. Your Annualized Percentage Rate or APR is found either at the top or bottom. If you cannot find it, contact your issuer immediately.

2.     Study Your Choices – There are numerous credit cards to choose from today. Make sure that you do your research patiently and compare their interest rates. In some cases, you will find that your creditor is offering lower interest rates to new customers. Know this as well before you call the company to ask for a lower rate.

3.     Your Interest Rate Should be Based on Your Credit Rating – If you have good to excellent score, your interest rates should be lower. If you do not know what your credit score is, you can request for it from any of the three credit bureaus. You are entitled to get a copy of your credit rating once a year for free. The process may take a while and it is often a challenge. However, you should make the effort so that you can diminish your current interest rate in due course.

4.     Call Your Issuer – This is the negotiation process. If you think that your current interest rate is unjust, tell them that and state your reasons. At first, you will most likely be told that they cannot help you. Don’t give up just yet because your efforts will definitely pay off in the end.

Credit Card Choices

There are many choices for low interest credit cards in the market. You only need to know where to look. With the advent of technology, particularly the Internet, these days, it has even become easier to sort through all your possible choices.

Some of the many options that you have for cards with low interest rates include, Clear Platinum Card from Citibank, Commonwealth Bank Low Rate Credit Card, and Westpac Low Rate Card, Virgin Low Rate Credit Card, Bank of Melbourne Vertigo Credit Card, and ANZ Low Rate MasterCard.

Credit cards are helpful financial instruments. As a customer, you should choose the one that meets your needs and budget. Low interest credit cards can aid you on your expenses, but you need to ensure that you are able to pay your bills on time to maintain the low rate.

Selecting a Credit Card for Your Business

Small businesses can benefit from having credit cards. The problem, though, is that the interest rates constantly change and there are programs that can be confusing. This is why it can be difficult to select a credit card for your company. If you are currently in the process of searching for a credit card for your business, here are some important aspects to consider:

Rewards Program

Debit cards are a great option for businesses. However, if you wish to gain more rewards at a shorter span of time, a credit card is a better choice. This is because you will need to spend more in order to get huge rewards points with debit cards. On the other hand, you can opt for a rewards credit card that has a special rewards program. As you rack up more points, you can qualify for a great number of incentives and gifts, which could include office supplies, software and phone services.

Most rewards programs have limitations or restrictions. Make sure that you know these restrictions by reading the credit card agreement presented to you by your chosen issuer. This way, you will know if the offers are really worth getting the card or not.

Interest Rates and Fees

It is no secret that a credit card has many fees. Therefore, before you sign up for one, you should know how much it will cost you. In general, there are two fees that you will most likely pay. These are the interest rates and the annual fees. Interest rates are found on both consumer and business credit cards. They can prove to be quite heavy for your pockets, particularly when you do not pay your balances on time.

Annual fees, on the other hand, are charged against your account once a year. You may find it a bit tricky to locate a business card that does not have an annual fee. If you do, you will mostly be required to have an excellent credit history before you could be approved for the card.

Credit Card Recognition

It is wise to go for a credit card that is accepted virtually anywhere. This is quite useful if you travel a lot. There are cards that are accepted in more places around the world than others. Make sure that the card you choose can be used in areas that you usually visit. This way, you will not be left without credit or even cash.

More Helpful Features

Business credit cards come with fraud protection. However, not all of them offer the same policies. Take a look into this aspect before you sign up for a card. You will be using your card on many transactions for your business and, as such, it will not be a surprise that your card number will be available to a ton of vendors. There is always a risk in this kind of situation. Your credit card company should be prepared to quickly cancel your card upon your request, particularly in instances where there is suspicious activity or fraud involved. In addition, you should not be charged for any falsified purchases.

Your business credit card should also provide you with online access and all-day customer support. Grace periods should also be offered where there are no interest fees on certain transactions.

What is the Credit Card Act of 2009?

The Credit CARD Act of 2009, was signed by President Barack Obama on the 22^nd of May 2009. This Act was put in place to protect consumers against deceptive or unjust practices of credit card issuers.

Providing Extensive Consumer Security

Primarily created to protect consumers, this Act prohibits creditors to increase their interest rates for whatever reason they may have. The creditors may, however, increase interest rates in an event where the card owner is not able to pay his or her bills for over 60 days. If, for this reason, the issuer has increased the interest rate, they are required to review the account six months after the increase took place. If the customer has proven that he can pay on time, his APR can return to the previous rate.

In connection to interest rates, they should not be added within the first 12 months of card ownership. Most companies have promotional rates, which have to remain for at least six months. If there are significant changes within the conditions that the consumer agreed upon, the issuer should provide notice 45 days before the modifications are applied.

Fees for going beyond the credit limit are no longer allowed except when the customer agrees to undergo such restriction to get accepted for a credit card account. Credit card bills are required to be sent at least 21 days before reaching the payment due date. If the customer pays by 5 PM on the arranged date, the creditor should consider it as an on-time payment.

Looking After Young Customers

Before the CARD Act came into effect on February 22, 2010, individuals who reached 18 years old were allowed to get a credit card. When the law was passed, no one under the age of 21 is allowed to have a credit card. An exception is made for those that have income proof that meets the debt repayment plan. If not, there should be an adult cosigner. If a college student is an authorized user on their parent’s joint credit card account, they should acquire permission from the adult to increase the credit limit.

Better Disclosures for Consumers

Creditors are required to let consumers know how long it would take for them to pay off the balances if they only pay the minimum payments monthly. The total interest and major rates should also be disclosed to the consumers who pay the minimum bills. Postmark date and deadlines should clearly be revealed to the customers as well.

Permission to Decline

Consumers are given the right to refuse changes in the terms of their credit card account. For instance, if there is an increase in the interest rate, the consumer can choose to opt out. This means that he or she may not make purchases with the card. However, the previous interest rate will be used as the consumer pays off the remaining balance. As mentioned, anytime there is an impending change in the agreement, the customer should receive a notice 45 days before the change. The letter of notification should clearly state the steps to take in opting out of the amendment.

Gas Credit Cards: Their Benefits and Disadvantages

Due to the constant rise of gas prices, many credit card and gas companies are offering gas credit cards to their consumers. As a matter of fact, there is a 14% increase in the number of companies that provide gas credit cards nowadays. These cards have many advantages. However, they also have disadvantages that you, as a consumer, should know about. Knowing both the positive and the negative points of these cards is crucial to determine whether a gas card is right for you.

What is a Gas Credit Card?

A gas credit card is specifically designed for people who are in constant need of purchasing gas. It can be used to purchase fuel at gasoline stations at lower costs. These include but are not limited to Chevron, Exxon Mobil, and Texaco. It can also be used towards other gas-related transactions. Basically, this card is meant to give you discounts on fuel, although some types may also offer points on purchases not related to gas.

This card is issued by leading credit card companies and banks that have a collaboration with specific gas stations. If you would like to get a gas card, the process is pretty much similar to a regular credit card. Your financial information will be evaluated and your credit score and payment history will be checked.

Benefits

There are a number of benefits offered by gas credit cards.  The most obvious is that you can save a lot when you purchase gas at your preferred gas station. Depending on the type of card you have, the discounts on gas prices could possibly go over $10 per gallon. There may be requirements needed to take advantage of this offer, however. For instance, you may be required to purchase a specific number of gallons of gas within the first month of card ownership before you can get the discount.

There are also other rewards that you can get with this card, such as 1% to 5% cash backs on groceries and other non-gas acquisitions. There are also special gas cards for travelers. You can use them to earn discounts on hotels and in renting cars. There are some that may also allow you to convert your earned points to air tickets.

Disadvantages

Like any other cards, a gas credit card may also have several disadvantages. One is the annual fee that usually goes with it. Some issuers, though, may waive the fee for the card on the first year. Apart from the annual fee, there are also other fees, such as cash advance fees, overcharge fees, and late payment fees. There may also be restrictions on the gas station where you can accumulate points. In addition, some of these cards may have expiration dates for earned points.

Each card, whatever its type, has its own perks and disadvantages. Comprehend the terms and conditions of the card first before you submit an application. It is best to apply for a gas credit card if you have a good credit rating to enjoy great deals and rates.

How to Apply for a Joint Credit Card

A joint credit card is perfect for married couples or people involved in a monogamous relationship. This type of card can contain two names of people on a single account and allows both account holders to enjoy the same purchase power and credit limit. If you and your spouse are planning to apply fora joint credit card account but don’t know how, here are some helpful steps:

Step 1

Obtain a credit card application. There are three ways to get an application form. You can go to the bank of your choice and request for the form, visit the website of the issuer and get the application form there, or check your inbox. There is a huge chance that you may have already been offered a credit card application via email.

Step 2

Determine who will be the primary and secondary cardholder. Talk this over with your partner and decide carefully. The primary cardholder will basically have his or her name printed on the monthly bill. If you want to have the highest possibility of getting a high credit limit for your account, it would be best to choose the person who has the higher credit score to be the primary cardholder.

Step 3

Fill out all the important details required on the form. These will include your birth date, full name, home and work address, job details, annual gross income and social security number. Whether you apply on paper or online, you will have to provide the same information.

Step 4

Flip the form over to see the Additional Card section. This is for the secondary cardholder to fill out. The information needed in this part is very minimal. Typically, only the full name, social security number, and the birth date are required.

Step 5

Before submitting the application form, you should verify that all signatory fields have been signed. Online applications are digitally signed by hitting the Submit button. Once filled out and signed, you can return the form to the issuer or mail it to them. Submitting the application denotes that you completely understand the terms and conditions implemented on the credit card account. These include the repayment of debts and fees. The signature of the secondary cardholder signifies that he or she understands that all the negative activities with the card will influence both parties’ credit history.

After mailing the form, you can wait for the approval or the denial of the application. Usually, you will receive the mail two to three weeks after submitting the application. Remember that even though the primary cardholder is responsible for the payment, both people’s credit history will be evaluated. Although you are not the primary cardholder, any credit misuse will legally impact your credit score. Therefore, both of you should be responsible enough to handle credit card usage.

A joint credit card account is ideal for couples who trust each another. Both can use the same card and charge purchases against it. Splitting the bills is convenient as it enables easy management of credit card bills.

Credit Score: Why Is It Important to Raise Your Credit Rating?

Your credit score is an indication of how you behave using your credit card. Your bank or your creditor will assess you using your score. Depending on your current rating, you may or may not have the ability to get creditcards, mortgages, and loans.

A credit card is a versatile financial tool that can be used to pay for almost anything. You can get a mobile phone, rent a car, book a hotel room, and even travel overseas with your card. There are many factors that affect your overall score. Oftentimes, when you misbehave, your credit score will suffer.

What is a Credit Score?

When you use your credit card, you are basically borrowing money from your creditor. From the time that you signed up for the card, you have made a promise that you will pay for the money that you owe. There is a specific timeframe for the payment, which you should follow.

If you have a high score, it essentially means that you have the ability to pay back the money you owe. A credit score is made up of three digits from 300 to 850. The method of calculating the score remains unknown. Credit bureaus have their own ways of evaluating the credit report of an individual. Some of them consider only the information found on your report while others take other financial aspects into account. In general, though, the primary factors used to compute your credit score include your payment history, the age of your credit card account, frequency of applying for new credit, credit type mix, and your current debts.

Aside from credit or FICO scores, you may also be rated from 0–9 for your personal credit account. On this particular rating, an “I” for installment credit or “R” for revolving credit appears before the number. Your creditor will issue a separate rating for your accounts. For instance, you may have an R1 for your Visa account. This is considered the highest level for credit ratings. Simultaneously, you may also be rated an R5 for your MasterCard. This usually denotes that you have neglected to pay your bills for that specific account for months now.

Credit Score Matters

When you decide to apply for a new credit card, loan or mortgage, the financial institution will take a look at your credit rating. Credit reporting is necessary because this allows stores to receive checks as payments and for banks to issue debit and credit cards. As you present your credit report, you give them information about how risky you are as a customer. Financial theory states that high credit risk means that an account should be added a risk premium. If you have poor or limited credit, creditors will not shun you. Rather they will approve of your application but with a higher interest rate.

Your credit rating is in a continuous flux. Credit activities may or may not affect your score. Regardless, it always pays if you improve your credit rating or at least maintain a reputable score.

Worst Credit Cards

Most credit cards today have very attractive offers. These offers include high sign up bonuses and rewards for every purchase. However, there are some credit cards that you should avoid no matter what the cost. These are known as the worst credit cards in the market based on their interest rates, fees, terms, and general value to the customers.

Highest Interest Rate

According to CardRatings.com, if you do not want to pay an incredibly high interest fee, you should stay away from First Premier Gold. This is credit card offers 49.9% fixed APR. What’s more, you have to pay other high charges including a monthly fee of $6.50 and $75 for your first year of being a cardholder.

Most Unpleasant Secured Credit Card

If you have bad credit, one of the best options that will help you rebuild your credit history is to apply for a secured credit card. However, it is wise to avoid Applied Bank Gold Visa Card. Most secured credit cards will give you a grace period where they will keep you interest-free for a limited time. This gives you the opportunity to save money that you can use to pay for you existing balance after you made the transfer. This Gold Visa Card is an exception. As soon as you start using it to pay for your purchases, it also begins to accrue interest fees.

Another secured card that you should stay away from is also from Applied Bank. The Platinum Zero is a deceiving credit card which claims that there is no interest fee on all your purchases. The reality is that they will put service charges on your account annually and this can cost up to $120.

Least “Premium” Premium Credit Card

At first, you might confuse the Visa Black Card with the Black Card from American Express, which turned into a status symbol for the wealthy and powerful people. This is officially called the Centurion Card. On the other hand, the Visa Black Card pales in comparison with the Centurion Card even though they have similar looks. Although the Centurion Card has a huge annual fee of $5,000, there are several perks including concierge services that help users get hold of restaurant reservations and sporting events that have already been booked.

The Black Card will charge the user with a $495 annual fee, which may just be a fraction of the Centurion Card’s yearly charge. The big disappointment is that you do not get as much perks as the AmEx card. Instead, you have 14.99% APR and 1% cash back on your purchases. Such attributes can be obtained with a cheaper credit card.

Embarrassing Credit Cards

The World of Warcraft Visa was created to give rewards to the players of the game. This provides 1 point for every dollar the gamers spend and they can play for free when they reach 1,500 points. Such is considered a waste since there are prepaid cards for the game that only cost $10 a month. The Hooter’s Visa from Merrick Bank also offers below average rewards. Five points for every dollar may be high but racking up 2,421 points just for a mouse pad is not satisfying at all.

Dos and Don’ts of Using a Credit Card

There are now a number of people who own credit cards. The sad thing is that almost all of them have credit card debt. As a matter of fact, statistics show that over $900 billion worth of debt is being carried by cardholders. While it may be impossible to totally escape debt since it has always been a part of society, it can always help a credit cardholder if he or she knows the do’s and don’ts of using his or her card.

Dos

• Maintain only one card as much as possible. It is not a smart move to have more than a single credit card especially if you have high credit debt already. You can cut up your other cards and keep just one card, which you can use to fund for emergencies. 
• Pay your bills on time or earlier than the agreed date. 
• Pay above the minimum amount each month. If you have saved enough money, you can pay the entire balance. This will allow you to have good credit record, which will have its own benefits in the near future. 
• Before signing up for a credit card, make sure that you have researched extensively so that you will find the best credit card for yourself. Credit cards work in different ways and there are some that are exclusively designed for certain people’s way of living.
• Take care of your card and always keep the issuer’s phone number as well as your credit card number. This can be very useful if you lose your card or if it is stolen. 
• Use your card as an investment and utilize it to boost your credit score. This will open doors for you, especially when you want to apply for a loan, buy a car, or rent an apartment in the future. 
• Get your copy of your credit report each year. This will be provided to you for free and you can use it to check for accuracy.

Don’ts

• Credit cards, especially those that offer rewards will tempt you to use them daily for your purchases. However, you should not use your card when buying clothing, food, and anything that you can easily afford. If you use it often as a substitute for hard cash, this will quickly lead you to debt. 
• Do not close your credit card just because you are in debt. This will only hurt your credit rating more, especially if it still carries a balance.
• Do not use your credit card when shopping online when you are not sure about the website’s security.
• Do not simply sign and agree with the terms stated in the credit card contract. Read and reread everything carefully. If you do not understand a terminology or a condition, you should always ask your creditor.
  Most lenders will tell you that it is essential for you to establish credit promptly. While credit cards can be very helpful, it is wise not to own a credit card unless you know how to use it wisely.

Five Ways to Cure Bad Credit

Fixing your bad credit simply means that you will get rid of all the negative aspects in your credit report. There are several benefits when you are able to cure your bad credit and have re-established a high credit rating. These benefits include better interest rates and faster loan approval. In order for you to rebuild your credit, you should first know what’s on your credit report. This way, you will have a clear idea regarding the things that negatively affect your rating. Once you have an idea of the factors affecting your credit rating, you can start repairing your bad credit.

Here are five ways to cure bad credit:

Find Inaccurate Information in Your Credit Report

The easiest way to cure bad credit is to get rid of any erroneous information regarding it. Clerical errors could drag your credit score down. Therefore, it is imperative that you do not overlook these inaccuracies on your record. You can submit a dispute once you have found the mistakes so that they can be removed. It is stated by law that you are entitled to receive your credit report for free from the three credit bureaus every year. You can also request over the phone or through email if you find that more convenient.

Pay Your Dues on Time

The most important factor on your credit report is probably your payment history. This is because it has a huge influence on your overall credit score. If you do not pay on time, this will definitely hurt your credit rating more than anything else. This is simply because your payment history is generally 35% of your final FICO score. In order for you to fix this, you may want to pay your existing balances as soon as you can. If you have an account that is a month or two late, prioritize it to prevent your balances from taking a toll on your score. Remember that if you do not make a payment for 90 days or more, this will be considered an extremely delinquent account.

Balances Should Be Below Your Credit Limit

If your debt level is 30% more than your FICO score, this can have a negative effect on your credit rating. Try as much as possible to keep your balance to at least 30% of your credit limit. For instance, if your card has $1000 limit, your balance should only be $300.

Get New Credit

It may be difficult to get an approval for a new credit card if your credit score is low. However, there are still other options. You can get yourself a gas credit card, a department store credit card, or those cards designed specifically for people with bad credit. You can also get a secured credit card. Once you have any of these types of card, ensure that you will be able to establish a positive payment history. If you get denied, do not rush and submit too many applications to several other creditors. This will only hurt your rating even more.

Change Your Bad Spending Habits

Oftentimes, the credit score is bad because of the cardholder’s spending habits. Changing your old habits is crucial, especially if you have a new credit card. Control your spending and charge only what you can afford. Avoid paying in minimum and never skip on your payments.

Performing the abovementioned methods will allow you to cure bad credit in time. Remember that your score will not change overnight, so stick to the methods that you have chosen even if you have to wait long and watch your credit history improve.