Choosing the Best Low Interest Credit Card

With so many low interest credit cards on offer, how make you cognize which one to choose? Here is a little usher for choosing your low interest credit card.

The Chase Manhattan MasterCard is a great choice, for those with an first-class credit rating. It have an introductory APR of 0%, for up to six months, which is a great option if you be after on transferring your existent balances to your new account. If you currently bank at Chase Manhattan, you can earn further rewards with this card, like a longer APR term. If you make a batch of travelling, you will wish this MasterCard, because it have the Chase Travel Reward program, which allows you earn 1 point for every $1.00 that you pass and gives you automatic worldwide travel accident insurance, up to $500,000.00 and offers you a price reduction at Hz Car Rentals.

If you are looking for a straightforward, low interest credit card, the Blue Card from American Express is a good choice. Like the Chase Manhattan MasterCard, it also have a great low interest rate of 0% for up to 15 months, for those who qualify. The advantage to having this card, however, is that is imbedded with a Smart Chip, to assist you track unauthorised purchases and it allows you to choose to carry a balance throughout the twelvemonth or pay the full amount monthly, like a traditional American Express card.

Another low interest credit card package which will give you a low interest rate is the Chase Travels Reward MasterCard, which is perfect for those who travel frequently. In improver to its introductory low-rate, it offers a low interest rate for balance transfers. It have got a generous credit bounds of up to $50,000.00, for qualified users and will reward you with 1 point for every dollar that you pass with your card, which can be redeemed at assorted hotels and restaurants.

There are many great credit card offers which will give you a consistently low interest rate, all you have to make is apply!

A Guide to Bad Credit Credit Cards

Having less than perfect credit can ache you and your financial future. One manner to get yourself
out of the dark hole of credit is by responsibly using a credit card. If you have got bad credit and
are looking for a credit card, you may desire to lodge with the bad credit credit cards. Bad credit
credit cards are just like regular credit cards, but they are specifically for high hazard
cardholders. Since your credit score is low, you are considered high hazard to the credit card companies. Bad
credit credit cards should be used responsibly however or your state of affairs will just worsen. If you
believe there is even a possibility of you defaulting on the card, simply don’t even apply. Before
applying for bad credit credit cards, be certain to check out the common terms for bad credit credit
cards. Credit Limits
Credit bounds on bad credit credit cards are usually relatively low. The highest bounds you will
usually see is around $1000. This is for your ain protection. The lower your limit, the more than
likely you are to utilize the card and pay off your balance in a timely manner. It is much more than hard
to pay off higher balances. Therefore, don’t believe of the low balance as a disadvantage. APR

Most APR rates on bad credit credit cards are very reasonable. They fall around 10% which is good
for a credit card. Try to happen cards that clasp the lowest interest rate possible. This volition aid
you refund your charges quickly while giving your credit score a positive boost.

Fees

Although typically annual fees on credit cards should be avoiding, with bad credit credit cards,
they are standard. Bad credit credit cards often charge annual fees of up to $50 or more. This is
a protective enactment for the credit card company. It may be something you simply must accept if your
credit score is low and you need a credit card.

Another fee you may meet is an registration fee. Again, this is something no 1 with good
credit should ever accept. However, with bad credit credit cards, the registration fee is common.

Credit Agency Reporting

Make certain than any bad credit credit card you apply for reports to all of the major credit
bureaus. This volition aid you recover good credit. You don’t desire to pay diligently on a card that cannot
aid your credit. You may have got to name client support ahead of clip to inquire this question, but
it is deserving your attention.

Bad credit credit cards can be just the things that save your credit. If you desire to hike your
credit, then see getting one of these alone cards. Just retrieve to pass and refund
responsibly. In no clip you can have got your credit looking 100% better!

Credit Counseling - Get in Line Now to Avoid the Upcoming Rush

Credit counseling is a valuable service for consumers who have trouble managing their finances. A distinctly different service from debt consolidation, credit counseling assists consumers with problem debt by educating them about the basics of money management. Americans really don’t get the education they need about how to manage bank accounts, balance checkbooks, or pay bills on time, and credit counseling can provide these services as well as others. By educating consumers, counselors hope to reduce the number of debtors who are forced to file for bankruptcy. Anyone whose financial situation is such that they would benefit from credit counseling may wish to seek it out in a hurry, however. A number of different factors are coming together in such a way that the counseling industry may soon be completely swamped with more clients than it can handle.

Recently passed bankruptcy legislation, designed to reduce the number of consumer bankruptcy filings, will now make credit counseling mandatory as a prerequisite for a bankruptcy petition. Anyone who wishes to file for bankruptcy relief must first demonstrate that he or she has undergone credit counseling during the past six months. By requiring counseling as a condition of debt relief, Congress hopes to reduce or eliminate repeat filers. The counseling industry is preparing for the additional customers now, as the new law is set to take effect in October 2005.

Other factors will weigh heavily on the counseling industry, however. A 2003 law passed by Congress requires credit card companies to raise their minimum payments so that their customers can repay their balances more quickly. This has resulted in the near-doubling of minimum payments, and the average American household, which has a credit card balance of $10,000, will see their minimum monthly payment rise from $200 to $400. Since many households can only afford the minimum payment now, the hike in the minimum due may drive more Americans into counseling and bankruptcy.

The increased reliance upon interest-only mortgages and low-interest adjustable rate mortgages could be a factor, too, if home prices either fall or fail to increase as they have. The sky-high prices in many markets have led homebuyers to purchase more homes than they can really afford, often using mortgages that are themselves riskier than the traditional 30-year loan. Should interest rates rise or housing prices fall, tens of thousands of homeowners will find themselves with loans that either exceed the value of the home or are unaffordable.

Those in the credit counseling industry say that this is a critical time, and the combination of new laws, fragile markets, and credit card industry overhaul could push a number of consumers towards bankruptcy and mandatory counseling. Anyone with problem debt who might benefit from counseling should consider doing so sooner, rather than later, as qualified credit counselors may be quite busy this fall.

Credit Card Consolidation - What You Need to Know Before Consolidating Debt

Consolidate! It seems to be the new fad in the world of consumer debt—the magic bullet that will effectively rid your life of all problems with credit card debt.

The advertisers, credit counselors, and financial experts are all shouting out:

“Slash your interest rate!”

“Save thousands of dollars!”

“With one low, monthly payment you’ll have extra money!”

And you know what? Consolidation can be a great option for digging your way out of credit card debt. But what the advertisements don’t tell you is that it’s not a magic bullet. Consolidation is a re-payment plan that is successful only when you are determined to do what it takes to make it work. It will take planning, determination, and a little elbow grease. But you can do it! Here’s what you need to know.

Find the Underlying Cause

The first step in any debt re-payment plan is determining the underlying cause; otherwise, the problem will happen again and again. Typically the problem is not the credit card itself. They are a great tool of convenience and security. Many people use them in a financially responsible way everyday. So if the problem is not the credit card, what is?

Overspending Habits

Let’s go ahead and face it. Sometimes the problem comes with just the bad habit of spending too much money. Credit expert Gerri Detweiler, author of The Ultimate Credit Handbook and founder of DebtConsolidationRx.com, says the two largest areas people tend to overspend is in the area of food and transportation. She’s heard of people spending $160 a month at the office vending machine! So maybe it’s time to take a reality check. Spend a month tracking every single expense down to the penny to see where your money is going. Then take the time, and maybe even help from a credit counselor, to setup a budget and a plan to stick with it.

A Life Crisis

Emergencies happen to everyone. Unfortunately people we love die, life-long careers disappear, and, as we’ve all seen in the news lately with Hurricane Katrina, natural disasters create havoc. All too often we are unprepared for such events and we end up putting a lot of expenses on credit cards. As you analyze your budget, it’s a good idea to determine a set amount to save each month for emergencies. Ideally, if your budget allows for it, a good amount is 5-10% of your take-home income. But if you can’t manage that much, then set aside as much as you can.

Big Life Events

Now I’m talking about events we expect—weddings, babies, college educations, family vacations, etc. Don’t let these events sneak up on you without some financial planning. The earlier you start, the better off you’ll be. And if for some reason the anticipated event doesn’t occur, at least you’ve built yourself a nice little nest egg.

Setting Aside Credit Cards for a Time

When you start consolidating debt it’s important not to accumulate any new debt. Trying to deal with a consolidation loan along with new consumer debt only builds layer upon layer of financial trouble. The accounts don’t have to necessarily be closed, but at least put the credit cards in an inconvenient location such as in a cup of frozen water in the back of the freezer, a safe deposit box, or even six feet under in your backyard! Once the consolidation loan is paid off, you’ve brought your finances back under control, and you’ve learned new healthy financial habits, then go ahead and bring them out from hiding if you want.

Lower Payment vs. Lower Cost

A big mistake many people make when consolidating debt is looking at the payment amount alone. Sure you can lump all your payments together into one low monthly payment, but what is your interest rate, fees, and length of the loan? A $5,000 loan at 10% for 15 years with a monthly payment of only $53 will cost you $2,000 more than the same amount at 18% for 5 years with a monthly payment of $126.

Consolidation Options

Now let’s take a look at some of the options for consolidating. When it comes to consolidating your credit card debt you have several options at your disposal, each with its own set of pros and cons. Here’s a brief description of some popular options along with their relative pros and cons.

Low-Rate Credit Cards

If your credit rating is good enough to qualify for a low-rate credit card, possibly even a zero percent introductory rate, transferring all your higher rate credit card balances could be a good option. This option generally works best if you can pay the balance off within one year. Check out our Card Reports section to evaluate different low-rate credit card offers.

Pros

If you qualify for a low-introductory rate card you may get the benefit of not paying any interest for a time.

Cons

Excessive transfer and new account activity on your credit history could cause you to have a poor credit score. This is bad when your low-rate credit card expires and you aren't able to qualify for a new card. You could be stuck with a high interest rate.

Watch out for balance transfer fees. Fees could potentially outweigh any interest savings that you might realize.

Home Equity Loan or Home Equity Line of Credit

Because you’re using your home as collateral for this type of debt, it’s imperative that you really understand your repayment plan and deal with the issues that got you into debt in the first place. Detweiler suggests this is not a good option in a hardship or crisis situation, including a job loss, since failure to pay back a home equity loan could result in the loss of your home.

Pros

Usually a lower interest rate.

Interest is normally tax deductible.

Your monthly payment will usually be lower so you can use the difference between it and your fixed monthly debt payment to start building an emergency fund.

Cons

You will be trading unsecured debt for secured debt putting your home at risk. If you miss even one payment you could lose your home, whereas if you left it as credit card debt you would still have a place to live.

You could end up paying a lot of money in fees such as closing costs and appraisal fees. Make sure you shop around to find the best deal.

The entire loan must be repaid before you can sell your house.

Personal Loan

Because of the potential effects of high credit card debt on your credit rating it may be difficult to qualify for an unsecured personal loan with a decent interest rate. If your credit rating is good you may qualify for a rate in the low-teens, but if it’s poor you may end up paying around 20 percent. Shop around at a variety of financial institutions including credit unions to compare the cost of fees and interest. And be aware that generally the extra products they try to sell aren’t worth the cost you’ll pay.

Pros

Can get good rates, especially if you are a member of a credit union and have good credit.

Unsecured so you don’t have to worry about losing your home.

Cons

Your credit rating could drop further because of credit inquiries, closing old accounts, and opening new accounts.

Additional fees.

Now you’ve got some tools under your belt to help dig your way out of credit card debt. You can also browse our http://www.cardratings.com/crinfofre.html Articles Section for more information about credit cards and debt. Good luck in your quest to be debt free.