Cheap credit cards come in many varieties. In addition, there are many factors a consumer needs to take into consideration when determining whether or not a credit card is truly cheap.
The first factor most people consider when looking for cheap credit cards is the card’s Annual Percentage Rate (APR). The APR determines the amount of finance charges that will be added to the account if the balance is not paid in full at the end of each billing cycle. Therefore, the lower the APR, the less finance charges the cardholder will have to pay.
When comparing low interest credit cards, it is also important for the cardholder to look at how finance charges are determined. Most credit cards use the Average Daily Balance method. Other credit cards, however, use the Two Cycles Average Daily Balance method. With this method, finance charges are determined at two different times during the billing cycle. For those that carry a balance on their credit card from month to month, the Two Cycles Average Daily Balance method is more expensive. Therefore, a low interest credit card may not actually be the least expensive card to use if it uses the Two Cycles Average Daily Balance method.
Some cheap credit cards have an annual fee in exchange for offering a lower interest rate. Depending on the interest rate, this annual fee just might be worth paying. In this case, it is necessary for the cardholder to be aware of his or her spending habits. In this way, the cardholder can determine whether or not the money saved with the low interest rate will pay for the annual fee. If the savings gained by the lowered APR will not pay for the annual fee, it is not worth paying to have membership to the card.
The grace period associated with a cheap credit card is also an important consideration. The grace period is the number of days the cardholder has after making a purchase before finance charges are assessed to the card. Twenty-day grace periods are common in the credit industry. The longer the grace period, the less money the cardholder will ultimately pay in finance charges. A cheap credit card with a low interest rate is not worth it if the finance charges begin to apply immediately after the purchase. The money saved by a low interest rate will soon be lost as finance charges build each day.
Some cheap credit cards even offer reward programs. Generally, however, low interest credit cards that also have a reward program are reserved for those that have good or excellent credit and will typically have an annual fee.
Even those reward credit cards that do not necessarily have a low interest rate can be considered to be cheap cards, mainly because the value of the rewards earned can be greater than the money spent on annual fees or finance charges. Those that pay their credit card balance in full at the end of each billing cycle, for example, may not be so concerned about the interest rate of the credit card. In this case, cheap credit cards would be those that offer discounts or special reward program that make the credit card pay for itself.
In general, credit cards come with a number of perks. These benefits can include purchase protection, extended warranties, roadside assistance, and travel insurance. When sorting through cheap credit cards, consumers also need to take these benefits into consideration. Those that will never utilize these perks will probably just be concerned with finding a low interest credit card with no annual fee. For others, however, it might be a better idea to pay a little more in order to gain the added perks. Similarly, if the consumer has several cheap credit cards with the same available interest rate to choose from, it only makes sense to go with the one that offers the greatest number of added benefits or that has benefits most meaningful to the person’s lifestyle.
Bad credit can increase the difficulty that a homeowner encounters when seeking a home equity line of credit. Bad credit can be the reason for a poor credit score.
What is a credit score? The credit score varies between the values of 300 and 850. The credit score is the creation of the Fair Isaac Corporation. Lenders who arrange for a home equity line of credit use the credit score in order to set the interest rate that will be charged the homeowner.
Homeowners with a low credit score will need to pay higher interest payments. A score above 700 is assurance of good interest rates. The credit score also serves as an indicator of whether or not a lender should accept a homeowners application for credit. Decisions on credit limits for the homeowner are likewise based on the homeowners credit score.
The credit score is a function of the homeowners past line of credit. In the U.S., three different agencies keep a record of each consumers line of credit. Those agencies are Experian, TransUnion and Equifax. If a homeowner with a low credit score wants to raise that score, then the homeowner must contact each of those three agencies.
The effort to overcome a record of bad credit and to raise a credit score requires the contesting of false claims that money is owed. If the homeowner can prove that the claim for money is spurious then the homeowner has an opportunity to raise his credit score. This action should be taken if the homeowner who plans to seek a home equity line of credit has a score less than 640. Such a score would be a sign of bad credit.
The contesting of a credit score is not like a shot in the dark. A survey of credit reports in the U.S. showed that 80% of such reports contained mistakes. Thus, a homeowner could have good reason to question the credit score that is being used to determine the interest rate on a home equity line of credit.
The credit score for a couple, a pair that are joint homeowners, is based on three credit scores from the person with the most sizable income. This is the score that the homeowner needs to make correct. Such correction may require a written statement to each of the above-mentioned agencies. Those agencies will then contact the homeowner and indicate if more information is necessary. If the homeowner is lucky, then the credit score will be increased and the interest rate for the desired home equity line of credit will be lowered.
Once the homeowner has a good credit score then he will want to avoid slipping back into that region of bad credit. This means that the homeowners must avoid the sort of spending that carries them to the borders of their credit limits.
Credit card fraud is becoming more and more of a problem, and if you are not careful then you could lose money to fraudsters. If you are worried about fraud but are unsure how you can protect yourself and your credit cards, then this article could help you. Here are some useful tips and advice about how to protect yourself from credit card fraud:
Methods of fraud
The methods and types of fraud are increasing as criminals learn new techniques and get improved technology. The most common methods of fraud today include:
Copying and cloning of cards
ATM fraud
Internet card fraud
PIN number stealing
All of these methods are used more commonly than ever before to effectively steal your money. Obviously, it is impossible to totally eliminate the problem of credit card fraud, but there are things you can do to greatly reduce the risks.
Keep cards close
Make sure that you never let your cards out of your sight. Never leave cards unattended, and certainly dont lend your card to anyone. If you are paying in a restaurant or shop, make sure you pay attention as to where your card is. A common method used to copy your card is to get the details whilst you pay, so keep an eye on your card at all times.
Check receipts
Whenever you get a receipt or a credit card bill, check that all the items and amounts are correct. If there are any amounts that you are unsure about, contact your card issuer immediately. Any paperwork that you throw away should be disposed of properly. Shred documents so that people cannot go through your rubbish and discover your card details.
Look behind you
When withdrawing money from a cash machine, make sure no one is looking over your shoulder to read your PIN. The easiest way for someone to use your card illegally is to see your PIN and then steal the card. Also, make sure you never keep a written record of your PIN, especially near your cards.
Use reputable firms
When buying on the Internet, make sure that you only purchase items from large and well-established providers. Small or unknown providers should be avoided as even if they are genuine, their security and encryption may be poor and allow fraudsters to access your details.
Keep contact numbers
If you have your card stolen or you think you have been the victim of credit card fraud, then you need to sort the problem out as quickly as possible. Keep all the contact numbers for your card issuer in a safe place so that you can call them up and sort out problems immediately. If you are careful and act quickly, you can limit the damage of fraud or prevent it occurring at all.
Are you several months behind on your mortgage?
Is the phone ringing off of the hook?
Do you feel like just giving up?
This is the scenario that is sweeping across America!
The banks made it way too easy over the last few years to get more money out of our homes. Property values kept rising, the real estate market was booming and every homeowner was sitting on a gold mine. This was sure to lead to disaster and it has.
Now with the market declining and home values taking a dramatic plunge, most homeowners are sitting on over inflated mortgages and under valued homes.
The unfortunate part is that a lot of people can no longer afford their mortgage. They are facing the possibility of foreclosure and losing their homes is a very real threat.
The good news is that the banks are realizing this and are now giving homeowners options. Otherwise, the banks will be sitting on all of these homes after foreclosure and will be stuck paying the property taxes and insurances until they sell. Factor in the foreclosure costs, attorney costs, and marketing this is not in their best interest.
One option that is being offered is called a short sale.
This is where the bank allows you to sell your home at or below the current market value in order to get a quick sale, regardless of what you owe. Lets say that your mortgage is 180,000, but similar homes in your area are selling for 150,000. You can ask for 150,000 and can even possibly take lower bids.
The bank in turn will take a loss on the home, since the sale will not cover the full mortgage, but they will not be stuck with the home. As far as the homeowner, they just walk away after the sale, free and clear.
It is suggested that you hire a real estate agent that is knowledgeable on short sales and preferably has had some experience and success with them. This is in your best interest, since they know the ins and outs and the paperwork involved. Not to mention, since you are already walking away with no money and this option will not cost you anything, it really is a no-brainer.
Thats right, not only does the bank take a loss on the home, but they also negotiate and pay the realtor fees.
Now there are disadvantages, and it is not as wonderful as it sounds. Your credit will suffer, just not as much as a foreclosure. It is estimated that your credit can drop 80-100 points with a short sale. However, it will drop over 200 points with a foreclosure.
You will not be able to buy a new home for up to 2 years with a short sale. It would be 3 years with a foreclosure.
Obviously, with this in mind the best solution would be to catch up your mortgage and then to make on time payments. Since this option is not viable for many people, I would seriously look into a short sale before it is to late.
Just remember that the mortgage company is not the enemy and not to be afraid of them. They are willing to help; you may just have to talk to several people until you find someone to work with. Ask if they have a loss litigation department. These are the people that are ready to and able to help you.
Stay Positive, Stay Strong, and Good Luck!
Are you aware of how many ways there are for thieves to take access of your credit card accounts and make unauthorised charges against your account? Simply by rummaging through old receipts that you have thrown out or left somewhere public, or by a shop assistant quickly scribbling down your card details while they are out of your sight, or by an untrustworthy seller who you give your details to on the phone, by mail or on the internet, your private account details can be taken and abused by anyone.
While most of these situations are quite rare, and there are safety measures in place to avoid the abuses they highlight, it is a fact that credit card fraud and identity theft is a growing problem that is costing the financial services industry more and more each year. Therefore it is important to be aware of the potential dangers and be familiar with a few simple steps you can take to reduce the risk that you will become the victim of identity theft.
Take The Right Steps
One of the simplest steps you can take is to sign all your cards on the signature strip on the back as soon as they arrive. You can also consider carrying your cards separately from your wallet and drivers licence so that if someone were to find them, they wouldnt necessarily have your identity and address. Keep your pin numbers etc. somewhere safe and never with your cards. If it is possible, the safest thing to do is to memorise and then destroy pin numbers.
If your card is out of sight during a transaction try to see what is going on behind the counter and seek to get it back as soon as possible. While still relatively rare, there is a lot of information on your card, which can be copied and used later on. You should destroy receipts if you do not need them. You should also check carefully all your monthly statements and make sure that all charges were in fact made by you. IF you have any doubts, contact your card issuer immediately to sort it out.
Dos and Donts
Never leave your cards lying around where others can get access to them and dont lend your card to anyone. Dont sign blank receipts and never give your account details over the phone, by mail or on the Internet unless you are sure you are dealing with a company that you know and can trust.
If you do suspect fraud, or if you lose your cards, report it immediately to your card issuer. By following these simple steps you should be able to considerably reduce the risks of card fraud being perpetrated against you.