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.

How to Get a Credit Card If You Have No Credit History

Building credit with a credit card is one of life’s paradoxes – you need credit to get a credit card. If you have no history yet, creditors will often treat you as if you have bad credit, though they are not the same. The reasoning behind this logic is that you have not been able to show how disciplined you are as a payer and cardholder.

Obtaining Credit Score

In order for you to qualify for a card, you need credit history. Your credit score is a rating for your credit behavior and your behavior is displayed in your credit report. Your credit report contains your credit history information, how you paid your balances, and whether or not you have existing debt. Creditors take a look at your credit report as well as your credit score. Unsecured cards have credit score requirements.

If you don’t have credit history, you can’t have a credit score. To obtain it, you need to have a credit card or any type of credit line that has been active for at least six months.

Why Get a Credit Card

If your main goal is to establish history, remember that a credit card is not the only way to build it. However, if you don’t have such plastic yet, you are missing out on a lot of things. First is that there are credit card perks that you can acquire for free. These include extended warranties on your purchases, travel insurance, automatic eligibility for roadside assistance, and anti-fraud protection.

Second, although a credit card is not your only choice for building credit, it is actually your best choice. It has the ability to establish, maintain, and raise scores faster than any other type of credit line. If used responsibly, your card can be your gateway to obtaining a low-priced dream house, for example. This is because there is a huge difference between the amount you will have to pay if you have excellent credit and when you have poor or limited credit.

How to Get a Card

Obtaining a credit card without credit history is difficult, but it is not impossible. Here are some ways to get your first card: 

• Get a store card – Many stores are willing to dole out cards to buyers, even if they have no history. Apply for one that reports to credit bureaus. Start using the card, but make sure you don’t purchase more than how much you would with real cash. Moreover, don’t forget to pay off your bills in full each month.
• Open a secured card account – Make a deposit, usually from $200 to $3,000 and link the secured card to your savings account. Start making purchases against it and make timely payments. Most secured cards report to credit bureaus, but it still pays to make sure your card does so. When used wisely, you may be allowed to switch to an unsecured card after at least six months.

 The two types of cards mentioned above don’t require credit check. Use them correctly to build your credit history and to be able to get the card you truly want in the future.

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.

Quick Approval Credit Cards

Many lenders have realized that most consumers apply for a credit card because they want to purchase something as soon as they can. Because of this, the quick approval credit cards were born. The main issue with such a card is that the term “quick” or “instant” approval can be misleading. Before you go online and fill out a form, there are a few things that you have to be aware of first.

Quick Approval Cards Should Really Be Quick Decision Cards

As mentioned, the phrase “quick approval” can be confusing. Card approval generally means that this is an action taken or a situation where the creditor agrees that the consumer is creditworthy. The truth is that most of the applicants that send out their applications for a certain quick approval card get turned down in the end. Hence, instead of quick approval, you should think of it as “quick decision.” This is because you will immediately learn whether you have been approved or not. Typically, the waiting time will not exceed an hour. Most cards today, however, present only a 60 second delay on the decision-making process.

How to Get Approved Quickly

The most important things that creditors consider when approving applications are your credit report and your credit score. If you apply for a card that requires excellent credit and you do not meet such requirement, you can bet that you will get denied instantly. As such, if you want quick approval, make sure that you meet all requirements before you even fill out a form.

The process of approving applications has become fast because of the automated system used by many creditors. Most of the time, there is no human involved in the quick approval process. Everything is done electronically by the system.  In this regard, make sure that the credit score you have written on your application is excellent and that your report contains low to zero negative items. This will ensure that you will be given quick approval by the system.

Are Quick Approval Cards for People with Excellent Credit Only?

If you have poor credit rating, there is good news for you. The credit card market nowadays is very competitive. As a result, many issuers are willing to approve those people with low credit rating even though they possess high credit risk. This is due to the fact that card companies are more willing to accept credit risk than the possibility of not acquiring more customers.

If your application has been denied, though, you should not persist on getting a card. Limit the number of applications that you send out to avoid damaging your score. It is advised that you only send out two to three applications at a time to control the impact of hard inquiries on your report.

You Still Need to Wait

Once you get approved, you can start waiting for your card to arrive. Yes, the only quick thing about the whole procedure is the approval (or rejection) process. You will still have to wait before you could purchase the items in your wish list. You already know that you can only use a credit card for purchases if you have the actual card itself. Due to safety motives, card companies will not send you an email about your card number and details. Hence, you cannot make a purchase even if you only intend to buy an item online.

Credit Card Incentive Programs

Credit cards are great for purchases but they are made even better with their incentive programs. Most of the cards today come with a rewards program that grants you with many benefits as you use your card.  You have several options today – you can choose a card that gives you free airline tickets, free hotel nights, or merchandise. It is up to you to pick the one that suits you best while understanding the preset conditions associated with your card and its rewards.

How to Earn Rewards

Basically, you need to use your card to get rewards. There are rare cards that let you obtain incentives just by keeping your account. However, if you truly want to earn the most valuable rewards, you should keep on purchasing against your card. This may sound a bit expensive which is why you should pick a card that fits your needs.

For instance, if you are a frequent traveler, your card should reward you for purchasing airline tickets. This way, you do not have to modify your lifestyle just to obtain rewards. Another example is for those who are frequently driving on the road. Get a gas card to relieve yourself from the stressful gas price hike.

Existing Incentive Programs

Most programs today give you one point for every dollar you spend. But there are also others that let you earn more if you spend your credits on particular items such as medicine or groceries. The popular reward types nowadays include:

• Cash back – Some creditors will let you earn cash for the credits you have spent. You can obtain real cash or you can add the amount into your bank account. Others mail you a check at the end of the billing period. You also have the option to send money to your university alumni association or your favorite charity. 
• Sponsored rewards – Many issuers have now joined forces with other merchants. With this type of incentive program, you can shop or purchase at a specific store and you can get more exclusive rewards. 
• Travel incentives – If you earn enough points or miles, you can redeem them for airline tickets, resort or hotel stays, or even a vacation package. You can also use your rewards to decrease the total amount you need to pay for a particular brand’s service or product. 
• Gift cards or free merchandise – Most cards today offer free merchandise which can be a variety of products such as sporting equipment, meals, electronics, housewares, and gift cards from vendors. 
• Events – Sometimes, experiences are more powerful rewards than cash and other tangible items. There are a few cards available that let you meet your favorite athlete or your favorite band. You can even find credit cards that let you learn how to cook with a renowned chef.

Watch Out for Restrictions

Many consumers continue to chase after rewards without knowing that there are limitations on the amount that they can obtain. Make sure that you are aware about the conditions connected to the incentive program of your card. Some have expiration dates while others have point limits. Some even impose a fee when collecting the rewards. It always pays to read the terms and conditions written in your card agreement.

Credit Card Tips for College Students

Entering college with a credit card in your wallet can make you exult. Most rich kids in your school have them, which is why it may be a moment of pride for you as well. Having a credit card is also a great tool in building your history. This can benefit you greatly once you step out of your student life.

You may have probably heard about a number of offers from various companies, which they claim to be the best deals ever. It is important that you can handle your card well to avoid falling into the credit trap that has the power to ruin your finances for a very long time.

Good Credit Matters

Once you get your card, you should not only use it for purchases, but to build good credit as well. Paying off debt is seriously difficult. The money you owe can multiply quickly before you know it. When things get out of hand, you will find it much harder to get out of debt. However, if you are able to establish good credit, this can open doors of opportunity. It can be your key to renting a nice apartment or even buying a home for yourself. You can also use it to attract lenders, so they will lend you money to buy a car.

Building and maintaining your credit can be simple if you are devoted to becoming a responsible card user. Here are some tips that you can use to make sure your credit rating remains safe at all times:

• Beware of “too good to be true” promotions. Freebies and fast approval make it seem that getting a student credit card is as easy as 1-2-3. Do not just sign up for a card, especially when you have one already. College students should not carry more than one card in their wallet unless they can afford the payment. Always think twice before you submit an application for a new card. Freebies are also great but if you are not a responsible cardholder, you may end up paying a lot more than the free stuff that you received. 
• Contemplate and do your homework before making the big decision. Credit cards are pretty little plastics that might make your friends envious. However, before you sign up for one, ask yourself whether you really need it. If you can pay for your purchases with cash or even a check, you probably do not require the plastic, especially if you have a debit card already. Nevertheless, a card can be helpful in times of emergencies and can be great for online purchases. This can also be good for your credit history. Again, if you cannot pay your bills in full and on time, you might want to skip the credit  block for now.

When looking for a student card, go for one that has no annual fee. Often, card issuers do not offer students good rates, especially if they are first time cardholders.  Instead, there will be higher APRs and low credit limit. You can save a lot more if you have a card that does not charge a fee annually.

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. 

Why You Should Keep Tab of Your Credit Report

Planning to buy a new house or get that much desired platinum credit card? For most people, these can be easily achieved through loans and by sending applications to platinum card issuers. However, contrary to what some people may believe, buying a new house and getting that dream credit card may not be that simple at all for average Joes. It needs a lot of money, luck, and discipline. Especially with the plunging economy, it can be very hard to get that dream house or even that dream card. But “hard” doesn’t mean “impossible”, right? Therefore, no matter how hard it may be, you may still have a chance to achieve what you desire.

Do you know that keeping tab of your credit report can help you achieve these dreams? Yes, you get it right. I do mean your credit report. What does it have to do with getting a new house or a new credit line?—you may ask. Well, your credit report plays a big part because it is what creditors use to assess your credit worthiness. When you have good credit, your creditors may take this as a sign that you have good money management skills, prompting them to provide you with higher chances of getting approved for house loans or credit applications. It is for these reasons why you should review your credit report regularly.

Understanding Credit Report

Your credit report is similar to your monthly credit statement, except that it contains your personal credit history instead of your bills. There are credit bureaus that your issuer reports to. They compile information about your credit behavior according to the data they receive from your creditor and from public records as well. 

Your credit report has four sections, each describing your personal details, your present and previous credit accounts, your tax liens and other public information, and inquiries made by companies to access your report.

Why Review Your Credit Report

This type of document is created by humans. This means that it may not be free from mistakes. As a matter of fact, several credit cardholders have complained about errors in their reports over the past few years. Some protest that their records are not 100% accurate while others complain about omitted information. You have every right to contest erroneous data on your report. Here are some reasons why you should review your credit report on a regular basis:

• Identity Theft Prevention – Most, if not all cardholders, are susceptible to identity theft. If you make it a habit to check your credit report, you can easily spot discrepancies in your account. You can spot whether there are new accounts added to your name or whether there are unauthorized transactions on your credit cards. This way, you can prevent yourself from falling victim to identity theft.
• Monitor Spending Habits – Not everyone has impeccable reputation when it comes to purchases and budgeting. If you are always running out of cash, you can use your credit report to examine your monthly purchases. This can help you keep tab of your monthly budget and even helps keep track of all your current debts. 
• Error Identification – Machines do not fill out your credit report; humans do. There are times when it might contain mistakes on a number, character, or any other element. A flawed transcript can make a huge transformation on your credit score, affecting your present and future in terms of finances.
• Complete Information – Consumers have at least three credit reports. These come from the three main credit agencies, namely TransUnion, Equifax, and Experian. If you find missing information even on just one of these credit bureaus, you should recount it right away. This way, your report will be updated immediately and will have complete data. Consequently, your credit rating will be taken care off as well.

Discovering mistakes in your credit report can be disheartening, but it can greatly make a huge difference if you make it a point to spot them as soon as possible. You are encouraged to question every piece of information you find inaccurate to rectify the circumstance. Be ready to supply documents that they may ask when contesting the items in the report, such as canceled checks and credit card statements. These documents may be needed to rectify the report. 

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.  

Credit Cards with Low Foreign Transaction Fees

Abroad trips are undoubtedly expensive. If you’re a frequent international traveler, it is significant that you check your card first before you use it for your expenses. There are cards that have high interest rates while others resist the trend and decide to drop foreign transaction charges. Once known as currency conversion fees, they may be favorable for those searching for big rewards in return. However, for simple and undemanding consumers, credit cards with low foreign transaction fees are much more attractive.

Facts about Foreign Transaction Fees

If you own a MasterCard or a Visa credit card, there will be a processing fee. This is applied on all foreign transactions or those that use local currencies. Though the rate is minimal, this goes up as the issuer adds its own charge. If you travel a lot for any purpose, you may want to consider a card that has low transaction fees when used overseas.

Those with cards that have high fees on such process may find it best to switch to a card that offers 1% transaction fee at the most. Remember that when you apply for a new card, this will hurt your credit score. A few inquiries will not do much damage though especially if you currently have excellent credit.

Finding the Best Credit Card for You

When applying for a new card, note that the foreign transaction fee should not be the only thing that you should reflect on. You have to balance every aspect out including interest rates, rewards programs, and annual fees. There will also be an exchange rate. Travel experts agree that using credit cards in foreign countries will help you save money because of the auspicious exchange rate.

Banks have varying charges on transaction fees. Here are some of the issuers and details about their foreign transaction fees:

·         Discover – Most of their credit cards don’t have a transaction fee. The problem however is that Discover is not accepted freely on many areas outside North America.

·        Capital One – Enjoy no transaction fees with this company. If your card is Visa or MasterCard, Capital One will take the fee for you. The Venture Rewards Card is considered as one of the best credit cards for international travelers.

·         American Express – They charge a transaction fee but if you have Platinum or Centurion card, this is not something you have to worry about. By the end of 2010, they have announced that there will be no foreign transaction fees on both cards. This became effective before the end of March 2011.

·         Chase – They apply the standard rate for overseas transactions. However, they try to give more points and rewards to customers to overshadow the fees. One of the favorite credit cards here is the Chase Sapphire Preferred which is quite ideal for travelers. This does not only provide perks but it also lets you gain huge bonus points each year. The foreign transaction fee is waived for the first year of card ownership.

Foreign transaction fees are among the most confusing elements in a credit card agreement. It is important that you check the conditions that apply on the card regarding your purchases overseas.

0% APR Balance Transfer Credit Card

Many banks and credit card companies are now offering balance transfers with 0% introductory rates. The recent development has led most of them to provide a credit card with no balance transfer fees, annual fees, and low interest. 0% APR is an introductory offer that usually lasts at least six months.

If you have other debts, you can use a balance transfer credit card to transfer your high interest debt to the new card. If you do not want to pay high interest fees on your financial obligation, you can take a look at these balance transfer credit cards:

Capital One Platinum Prestige Credit Card

Use this card for your purchases and balance transfers and get 0% APR for a limited time. There is no annual fee and no charge on your credit account in case you encounter fraudulent purchases. Cardholders are granted with round the clock assistance during travel and medical emergencies. Cash advances and credit card replacement are also given as 24 hour services. There are hundreds of designs that you can select from to make your card more appealing for you as well.

Citi Simplicity MasterCard

Balance transfers and purchases are offered with 0% APR for several months after opening an account. When the intro rate expires, your creditworthiness will determine how much your APR will be. It is advised that you apply for this card if you have at least a good credit rating. This way, you can take advantage of the low balance transfer fees. This credit card has no annual fee and other charges namely late and penalty fees.

Slate Credit Card from Chase

If you need to transfer your current card’s balance immediately, this is the card that you should apply for. For two months, the balance transfer fee will remain nonexistent. Succeeding transfers will have 0% APR for more than a year. This is also applicable to the purchases you make against the card. This card is great for those that usually carry balances each month. It contains free services and features that will help you keep track of your payments. It also provides tools that can assist you in paying your balances quicker. In order for you to get a Slate Chase credit card, you should have excellent credit.

Citi Diamond Preferred Card

Aside from the 0% APR for more than a year on your balance transfers, this card also comes with $0 liability on unapproved purchases. This has identity theft tools that will protect you from fraudulent use. This is suitable for people who usually travel or attend concerts and other events. This is because it comes with personalized concierge services for 24 hours a day, 7 days a week. You can get assistance whenever you need to book a hotel, buy air tickets or concert tickets, and a lot more. Members are granted with special access to purchase events tickets that are not even up for sale yet. This card is the key to obtain the best seating for various occasions and affairs.

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.

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.

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.

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.

Credit Cards: When to File for Credit Card Bankruptcy

Proper timing is always essential in everything you do even when filing for credit card bankruptcy. Although you may qualify for a Chapter 7 bankruptcy, there are times when you have to wait first. However, if you are currently facing an immediate problem, such as foreclosure, car repossession, wage garnishment, or judgment lien, declaring bankruptcy right away may be the ultimate solution. Delaying bankruptcy filing makes sense if you are going through the following situations:

1. Open for Mortgage Modification – If you have the opportunity to change your mortgage, now may not be the perfect time for you to file for bankruptcy. Nowadays, people use bankruptcy to postpone foreclosure. This is a good option, but some people tend to file earlier, causes them to get denied of mortgage modification. Lenders usually refuse to continue negotiations about mortgages once they learn you have declared bankruptcy. This is because such action will technically terminate the promissory section of your mortgage so there is nothing left for negotiation.

2. High Income – If you recently have a high income, you may want to delay filing for bankruptcy for a period of time. Your income for the past 6 months will determine if you qualify for Chapter 7 bankruptcy. If you have high income, you will only be eligible for Chapter 13 bankruptcy. This will require you to pay off a part of your debts.

3. Real Estate Property – If you have a home or a property that you do not ever want to surrender, you should not rush to filing for bankruptcy. If you file now, you will eventually lose that property using a Chapter 7 bankruptcy. However, if you wait, you can have the time to put your property up for sale and even use the money.

4. New Debts – If you expect that you will be having new debts, it is a good idea that you hold off your decision to file for bankruptcy first. According to the rules of Chapter 7, your debts will only be erased if you have them on or before you file for bankruptcy. In this case, if you have future expenses and debts, you will have to deal with them yourself.

5. Stop Collections – Almost everyone file for bankruptcy to end the nonstop phone calls they receive about their debts. Bankruptcy filing can indeed stop the collections but there is actually another way. This is called the Fair Debt Collection Practices Act, which states that the collection agencies and the creditors should stop calling you if you ask them to.

6. Tax Refund - For instance, if you are expecting a refund on your taxes of around $4,000, you need to surrender the amount to the bankruptcy trustee after you file for bankruptcy. However, if you get the refund and spend it on a few of your necessities then declare bankruptcy, it is clear that you have the full benefit of the tax reimbursement.

If you are still confused whether you should file a credit card bankruptcy now or later, you can always speak to an experienced attorney. He or she can help you sort out your available options and weigh your current situation to help you make a good decision.