Credit Repair Credit Cards

Borrowing on a Credit Card

Admin — Thu, 06 Jan 2005 01:55:26 -0800

Borrowing on a Credit Card by: Alastair Taylor

One of the easiest ways to borrow money of a financial institute is to use a Credit Card, available from all banks, building societies, and other financial organisations. The choices available are enormous, with a wide variety of interest charges, annual charges, loyalty schemes, and bonus points available. However there are two broad areas that you should look at:

Annual Interest Rate

Firstly if you do not intend to pay off your Credit Card bill at the end of each month, then you should look at the Annual Interest Rate (APR), this rate is typically between 13-17% at the moment, and you should be looking for a card that offers as low an interest rate as possible. You should also bear in mind that you are charged much higher rates of interest than other forms of borrowing money, so if you do not intend to pay of your bills for a long period of time, then you should seriously consider a different form of loan that is less expensive.

Extra Benefits

On the other hand if you do intend to pay off you credit card bill at the end of each month, then you should be more interested in the loyalty schemes that are on offer. These vary from being awarded points every time you purchase something (these points can than me used to purchased gifts or air miles etc), to simply being given ‘Cashback’ on everything you buy (typically 0.5%-1% of your purchase). You should also look at the level of service that your card company offers. They are obliged under law to offer certain protection to the consumer, but often they will increase this protection with other guarantees. Some offer extended warranties on electrical goods, extra travel insurance when you are on holiday, accidental damage insurance for any goods you buy, and even free commission on cash withdrawals when abroad.

Also some companies charge an annual fee for using their card (especially business credit card accounts), so these fees should be weighed up against the cards benefits.

Even if you usually do pay off your credit card bills at the end of each month, when you open a account you may be offered 6 months interest free credit. This is often an excellent way of saving money as you are basically given an interest free loan for 6 months. It is even more useful if you are allowed to transfer some credit card debt from a different company into the interest free offer. However there is a danger of becoming trapped in a bad debit cycle here, transferring your debt from card to card until it is completely unmanageable. The best advice is to make sure you always have enough money in the bank, or in a savings account, to pay off your debt when you are taking advantage of the interest free credit period. That way you benefit from earning interest on your savings in your bank, but as soon as the interest free credit period has expired, you can pay the entire bill off without being stung for high interest charges.

So to summarize

If you are not paying off your monthly credit card bills, look for a card that offers a low interest rate

If you are paying off your monthly credit card bills, looking for additional card benefits

Interest free credit periods are good news for saving money, but beware of being caught in a debt spiral

Credit Cards are an expensive way of obtaining a loan or borrowing money, and you should investigate other cheaper forms if you intend to borrow money in the medium to long term.

For more great articles from Alastair Taylor go to http://www.whatprice.co.uk/

Banks

Admin — Tue, 28 Dec 2004 06:20:21 -0800

Here is a summarized list of Banks Articles:

How To Reduce Banking Fees

Admin — Tue, 28 Dec 2004 06:15:50 -0800

How To Reduce Banking Fees
by: Jeffrey Strain

Nobody likes to pay banking fees, but if you aren't active in trying to reduce them, you are probably paying more in fees than you need to be. One of the most important actions to take in order to reduce the banking fees is to figure out exactly how you use your bank. Consider what your average balance will be and how low the balance may dip. Also consider the type of transactions you make and what types of services you need. Once you have a better understanding of how you utilize ...

Chex Systems: What is Chex Systems And What Do They Do?

Admin — Mon, 06 Dec 2004 17:38:35 -0800

The Chex Systems, Inc. is a network of Financial Institutions that share information on mishandled checking and saving accounts. Chex Systems holds that information at a central location.

Check Systems Inc. does not do the deciding on new checking or saving accounts being opened. They share the information with the financial institutions and they decide based on that information.

People have wondered if Chex Systems is a credit bureau, the answer is no. Chex Systems is a consumer reporting agency.

To find out what Chex Systems has in your file you will have to order a copy of your report, just ...

Banks That Offer Good Rates on Credit Cards

Admin — Sat, 27 Nov 2004 11:53:19 -0800
Here is a list with links of a few banks that offer good rates on credit cards:

www.mbna.com
www.providian.com
www.usbank.com
www.chase.com
www.eufora.com

There are many more out there but, I have used these banks before and never had any problems with them.
Here is a website that go's into more detail about the best credit cards online: http://www.best-in-credit-cards-online.com/best-high-reward-cards.