Opportunity to compare multiple credit cards

When you shop online, you have the benefit of checking out what a lot of different credit cards are offering. The terms and conditions of credit cards vary from each other quite a bit and what the credit card companies, offer to different customers with different credit scores varies too. Therefore, you must check online to see what someone with your credit score can get in terms of credit card offers. It is easy to check for credit card offers online than it is to solicit information from sales agents. Checking online is the best way of getting neutral information of several different credit cards.

Feedback from other consumers

One of the reasons why it will help to go online as far as information about credit cards is concerned is because it is easy to get feedback about different credit card companies from customers. With card issuers playing tricks with the customers, charging hidden fees and exorbitant rates it is important to know about the card issuers. Understanding the kind of problems faced by card holders with fine print will give you a good idea about things to be careful about at the time of applying or selecting a card. It will also let you know about the precautions that you need to take during the process of applying for a credit card.

Expert guidance from credit card review sites

This is one of the biggest benefits of checking online when you are planning to apply for credit cards. You can get expert guidance from sites which review different credit card issuers and also their products. There are plenty of credit cards which are available for different categories including low credit, average credit, good credit and excellent credit scores. Review sites categorise the cards so that you know what cards are best for you given your credit score. It will also help you in comparing the features of different credit cards to check which ones offer the best rates and which ones offer the better rewards and benefits. It might also help to check which cards suit your style. There are credit cards for high expenditure customers and credit cards for those who like to use credit cards for maximum savings.

Your information is secure

Applying for credit cards online will also make sure that the information is safe and confidential. When you apply for credit cards you provide a lot of information about yourself which in the wrong hands could prove to be dangerous. When you apply online, the information is encrypted and goes across secure channels so that no confidential or private information is stolen in any way. Besides, online application process is faster and helps you find out about the status easily.

Be careful about variable interest rates

Not all credit cards come with a fixed interest rate. In case of some credit cards, the interest varies. It is usually lower for the introductory period after which it goes up. It is important to be double sure about the starting and final APR. If the final APR is quite steep it is best to avoid the credit card. Higher interest rate means that you would be paying much higher interests once you have an outstanding credit card balance. You must also note that a credit card issuer can hike your interest rate only after informing you in notice. You can then choose to pay off your remaining balance and close your account if you are not willing to accept the higher APR on the credit card.

Check the annual fees

In case of customers with good credit scores, the annual fee on the credit card tends to be waived off by the card issuer. However, it is not advisable to blindly assume it. Instead you need to make sure there is indeed no annual fee on the credit card. If there is, you might end up adding an extra amount to your outstanding balance, which is worth avoiding.

Other types of fees

Credit cards vary from each other in terms of the different types of fees levied on the customer. Good card issuers usually give a lot of benefits to customers. For example, some cards have no cash advance fee for using the credit card at ATMs while some cards will charge you for the same. The percentage charged for currency conversion when you use your credit card in foreign countries varies from one card issuer to another. If you are transferring your entire balance to another card, there might be a balance transfer fee that you will have to pay. Lower the fee, better the card and hence you need to check the fine print well.

Credit card offers

Credit card offers are rarely what they seem to be which is why you must look at the fine print with great care. For example, there are cards that offer reward points, but apply a cap on the number of points you can redeem in a month or a year. Similarly, there are cards offering air miles but it could end up being difficult trying to redeem them on discounts on air tickets.

Promotional offers

When credit cards offer introductory rates during promotional periods, you need to check fine print as the exact rates and periods depend on the individuals’ credit scores.

Low APR credit cards

These are credit cards which come with a very low interest rate. These are ideal for those customers who have outstanding debts and therefore want to save as much as possible on the interest they would be paying on these cards. The interest rate on these cards could vary between 11 to 20% depending upon what the credit score of the individual is. High credit score individuals can get credit cards with a much lower interest rate. However, it should be noted that these credit cards usually don’t have too many rewards or additional benefits.

Balance transfer credit cards

These are credit cards which are offered to customers who have credit cards of a different company. This is a strategy used by most of the credit card providers to lure customers of other card issuers. Some incentives are offered with these credit cards. The most popular offer is that of a low or even 0% introductory rate on the balance transfer amount for an introductory period. The duration of this period varies based on the credit score of the individual once again. There are cards offering 0% interest rate of the outstanding debt for as long as 18 months for customers with excellent credit scores. Usually these cards come with a balance transfer fee that has to be paid by the customer up front.

Frequent shopper credit cards

These are credit cards offered to those customers who tend to shop a lot with their credit cards. These cards are specifically tailored for the spending needs of those customers who tend to shop a lot and maintain a high lifestyle. These cards have brand tie ups as a result of which customers can get excellent milestone discounts on different brands, whether it is apparel, fashion accessories or electronic goods, to name a few.

Frequent flyer credit cards

These are credit cards which are offered to those customers who tend to travel very frequently. These cards reward the customer’s spending on the credit card through air miles which can be redeemed in the form of discounts on their air tickets. Besides, these cards also offer discounts on hotel stay as well as restaurants across the world.

Cash back credit cards

These are amongst the most sought after credit cards. These cards allow you to save on your cash by offering discount ranging between 1 – 5% on various categories. Some cash back cards give you up to 5% discounts for purchases made at drug stores and gas stations.

Here are a few of the most common types you will encounter:

• Credit Cards With Rewards

One very popular category of credit card is rewards credit cards. These types of cards offer users spending incentives such as cash back, travel perks and other freebies. Most of these cards are tailored to offer specific rewards such as dining certificated or plane tickets, while a few issue generic points per dollar spent which can be redeemed for cash, services or merchandise.

Two things to watch out for with rewards credit cards are that they often have an annual fee and a higher APR than non-rewards cards. If you intend to revolve a balance from month to month the amount of interest you accrue might outweigh any rewards benefits.

• Business Credit Cards

If you are a business powner, you may want to consider getting a business credit card no matter how big or small your business is. They come with great tools designed to help you track and manage your spending and expenses. Many also come with the option to issue multiple cards to employees so that you can also track their spending. Some business credit cards even come with rewards programs, which can avail you of some very useful perks.

• Balance Transfer Credit Cards

A balance transfer credit card is a card with a low or no interest rate onto which a debt is transferred from another card. They are great options for anyone who has a sizable chunk of outstanding debt sitting on a high interest-bearing card. In transferring the balance from the high interest card to the low interest card, you will save yourself money in interest fees while giving yourself the opportunity to make some headway in paying the debt down.

When faced with selecting a balance transfer credit card, you should always compare a number of different offers first in order to secure the best deal. The low APR offered on balance transfer credit cards are typically promotional rates offered for only a limited amount of time, so pay attention to the duration of the teaser rate. Also, there is often times a fee associated with transferring a balance, so make sure you know what it will cost you to shift your debt around prior to filling out any application forms.

• Student Credit Cards

For college-aged students who are interested in building their credit history, applying for a student credit card is a good way to begin establishing credit. You will need to research which companies offer special cards designed just for students that require no credit history. In general, student credit cards have low spending limits, so be sure to use your card wisely and not go overboard making charges once you get one.

• General Card Benefits

There are certain benefits that are available no matter which type of credit card you choose. These are things such as extended warranties for items you buy using the card and other purchases protections, discounts at affiliated retailers or travel insurance. Make sure that you always read the terms and conditions of your credit card agreement so you can learn everything a particular card has to offer.

In general, the best prepaid cards are the ones with the least amount of fees.

Side-step Activation Fees

The costs of acquiring a prepaid card differ extensively from card to card. Some cards charge an activation fee which can be as high as $20. However, there are also many options available that have no such activation fee. While an activation fee is only a one-time charge, there is still no real need to pay it because free options are available. Why pay anything just for the “privilege” of carrying the card?

Reload Funds Via Direct Deposit

Nearly every prepaid card on the market offers cardholders the service of direct paycheck deposit for free. The same is true for government benefit checks. Some cards even extend bonus offers of $25 cash to cardholders who opt to sign up for direct deposit. The perks don’t end there. Direct deposit is not only the most convenient way to load funds onto a prepaid card, but there are several cards on the market that do not issue any card maintenance fees as long as a cardholder reloads a certain minimum onto their card on a monthly basis using direct deposit.

Go With Credit

When completing a purchase using a prepaid card, you will usually be given the option to have the transaction processed as either debit or credit. While the basic result of both means of processing a transaction are the same – the purchase amount is deducted from your available balance on the card – the fees levied by the prepaid card company may be very different.

Whenever a customer uses a card to pay for a purchase, the merchant must pay an interchange fee to the bank. This amount is different for credit transactions and debit transactions. As a result, some prepaid card companies charge users a fee for all debit transactions but not for credit transactions, so if given the choice always go with credit.

Change Where You Withdraw Cash

If you want to withdraw money from your prepaid card, be aware that almost all of them charge a fee when you use an ATM to access cash. There are a handful of prepaid cards available that do feature free withdrawals at participating ATM’s. However, those specific locations may not necessarily be convenient. One way to avoid paying excessive withdrawal fees at an ATM is to pull out cash on your card while you are paying for your purchase at a grocery store or retailer. Note that you will need to have the sale processed as a debit transaction in order to do so.

Selecting a credit card to apply for is not an “eeny-meeny-miney-mo” situation; consideration and care should be exercised when deciding exactly which kind of plastic to tuck into your wallet.

First things first.

The very first order of business is to figure out what type of credit card user you are. According to a documentary which aired on FRONTLINE a few years back, banks lump credit card users into one of two categories: “revolvers” or “deadbeats.” A revolver is someone who typically carries a balance from one billing cycle into the next, accruing interest on their outstanding balances. A revolver is more profitable for the credit card company because they pay additional fees and interest charges, and thus are desirable customers for banks. Deadbeats are the people who pay off the entirety of their balances each and every month. They rarely accrue additional interest charges or fees. Banks don’t stand a chance of profiting much from these types of customers, hence the name: deadbeats. Which category you fall into is the most important factor on which to base your decision when picking a credit card to apply for.

Cards to consider if you are a revolver:

If you are someone who carries a balance from month to month, your ultimate goal should really be to pay off your debt as quickly as possible. In order to do this, you should seek out a card with the lowest interest rates that you can find. Low APR cards can come in several forms – a zero or super low promotional rate that only lasts for a specified period of time, a nice competitive standard rate or, ideally, both.

Special promotional interest rate periods can last anywhere from six to 21 months, depending on the offer. The promo rate may be applied to balance transfers, new charges or both. For balance transfer cards, there is almost always a balance transfer fee involved – generally between 3 and 5 % of the total amount being transferred – so this should be taken into account when figuring out whether or not transferring a balance from one card to another will save you money.

The catch, if you want to call it that, with credit cards that offer the lowest interest rates is that they almost never come with any sort of rewards program. However, if you are a revolver you really shouldn’t be concerned about earning rewards. You should instead be focused on paying off your outstanding balance as fast and as cheaply as possible. Also be sure to look for a card with no annual fee.

Cards to consider if you are a deadbeat:

This may be the one and only time being called a deadbeat is an extremely positive thing. Because you are disciplined enough to pay down your balance every month, you should look into applying for a rewards credit card and take advantage of some of the extra perks many credit card issuers have to offer.

There are tons of different rewards credit cards available to choose from – miles or travel rewards, cash back, miscellaneous points that can be redeemed for various goods and services – no matter which one you pick, make sure you find one that affords you the greatest value. Some of these types of cards come with annual fees attached, so take that into consideration too when you are making your decision. It might be worth it to pay a fee each year if the card offers you some truly exceptional rewards.

You may, in fact, receive a bonus for opening one of these rewards accounts. Often these bonuses require that a minimum spending requirement be met in order for you to be eligible to receive the additional perks, so just make certain that you can comfortably meet it without overextending yourself by overspending. No rewards program is worth spending extra money just to get perks.

While it likely isn’t a tremendous amount of money, the notion of having to pay a fee once a year for the privilege of carrying that particular card may irk you. The fact is, annual fees have on cards have become more prevalent sine the 2009 passing of the CARD Act, which restricted the types of fees card issuers are able to levy on cardholders. As a result, more and more of them are either implementing or raising annual fees simply because they can. According to the direct mail tracking service Synovate Mail Monitor, some 35% of credit card offers that were sent out in the final quarter of 2009 had an annual fee attached to the card, the highest percentage throughout the previous 10 years.

Before heaving an exasperated sign and submitting the application anyway, ask yourself a few things first:

Will you positively beyond a doubt utilize the rewards attached to the card?

If you are likely rack up rewards but never use them, paying an annual fee is nothing short of a waste of money. The fact of the matter is, the vast majority of consumers never cash in on their rewards programs and the points, miles and perks go unused. Consider if the rewards fit into your lifestyle and if you decide that they do, calculate how much you would have to pay for the perks outright vs. the cost of the annual fee on the card.

Are the benefits worth it?

Does the credit card you have your heart set on truly have spectacular rewards or offer you better payment options? If so, the annual fee might be an expense worth paying. Look for things like lower interest rates, flexible payment options, concierge services, extended warranty coverage options, the opportunity to work around preset spending limits and loss protections services for things like lost luggage and cancelled trips. Depending on how much you utilize the card’s perks, the annual fee may essentially pay for itself several times over in the form or warranty extensions and other services.

Are those rewards easy to redeem?

The harder you have to claim your rewards, the less worthwhile they are. Investigate the card issuer’s website and look for a link to their rewards page. It should be easy to navigate to and present you with a clear-cut explanation of how to go about redeeming your points, miles, cashback bonuses or whatever perks the card avails you of. Should it be necessary for you to speak on the phone to a customer service representative, a live person should be easily accessible via a telephone number prominently displayed on their site. If it’s too tricky to cash in on what you’ve earned, take a pass on the card – especially in light of the annual fee.

What about other fees?

Make sure that you know whether or not there are any other hidden fees attached to that particular card. Thing to look for include an extra charge to claim rewards or a spending minimum in order to activate the cashback bonus. In both those cases you may be better off pocketing the annual fee and picking another card.

Keep in mind that you always have the option of calling up the card issuer and requesting them to waive the fee. It never hurts to ask.

However, consumers should be aware that often times store credit cards are specifically marketed towards subprime borrowers and individuals with poor credit, while tending to come with low credit limits and high APR’s – both things that can potentially drag down your credit score. Resist the urge to impulsively open up a new line of credit without knowing all the facts first. Here are some things to pay attention to:

Take a good look at the discount.

While the thought of saving 20% on your first purchase may hold some appeal, do the math to figure out how much you stand to actually save to see if it’s worth it. If you are making a large, expensive purchase, 20% off has a much more significant impact, which may make opening the card worth your while.

Ask about no interest.

Find out if the store offers some sort of 0% interest promotion. Occasionally, store credit cards have a 0% APR promotional period lasting anywhere from 6 to 12 months. As long as you submit all of your monthly payments on time, you won’t be charges any interest on your balance during that period. This could be helpful if you are looking to purchase an expensive item – as long as you manage the payments responsibly and pay everything off before the promotional period ends. Otherwise, there is the potential for you to be charged retroactive interest on the whole balance.

Examine the APR.

Store credit cards are notorious for having incredibly high interest rates, typically upwards of 20%. If you decide to open up a store credit card account, you must pay off your balance each and every month or else your initial savings will be completely erased by high interest charges.

Know your limit.

Find out the credit limit on the card, because store cards generally come with very low spending limits. This makes it easy to run up a high balance on a low limit, which has a negative impact upon your credit score.

Don’t ignore your other options.

There may be much better credit card options available, ones that will avail you of better perks in the long run. Aside from the initial discount, are there other awards or perks attached to the card?

If you plan to open up a store account to take advantage of the discount or no-interest financing then close the account once you have paid the balance off, know that shutting down a recently-opened credit card account can cause a dip in your credit score. However, if terminating the account will eliminate the urge to overspend and purchase things you don’t need then closing down the account is perhaps your best option.

Always read the fine print!

Consumers who have smart phones can control their money, credit and banking matters by downloading a few helpful applications. Here are a few of our favorite mobile banking applications and how to use them.

Mint – Free

Mint gives you the most bang for your buck. For the price, this is the best budgeting software for your phone on the market. Mint automatically updates your budget and keeps it in order. It does this by linking your bank account to the application, and then subsequently logging each bank account transaction in your phone. Mint is constantly updating, and it is very secure. With the Mint application, consumers are always updated when it comes to their accounts — from checking, savings, pension plans and retirement funds, Mint keeps all of those accounts in tact. The application also comes with phone notifications that will alert you if you are about to miss a payment, or if there is a budgeting overlap.

Debt Dog -$0.99

Debt Dog is good way for curbing those extra spontaneous purchases that consumers tend to make on their credit cards. These purchases are the quickest way into debt. Debt Dog shows consumers how expensive these purchases can be, by calculating the interest rate that will be charged onto the transaction. Seeing this information makes it easier for consumers to decide whether purchasing that sale item is really worth putting on your credit card. The application goes further and shows you how much the purchase would cost you in a number of different payback situations.

iReconcile – $1.99

This application is only good on your iPhone and iPad and it takes into your account your total budget, allowing you to make important budgeting decisions right from your phone or your handheld. With this application, consumers can set up a daily, weekly, monthly, or yearly budget and fix spending accordingly. The application also comes with helpful charts and graphics in order to paint the picture about your finances perfectly clear. The iReconcile application follows the consumers’ budget, and gives them easy-to-read updates and shows were consumers are spending their money for better budgeting.

iWallet – $2.99

This application is a bit pricier, but there is a lot of value to it. iWallet is like the iReconcile application, but it is a simpler version. And if used properly, it can be as effective as the iReconcile application. This application offers many of the same advantages that the iReconcile application offers, except it isn’t restricted to Apple products. The application is very versataile and allows users to download their financial information into a PDF, if it makes it easier to manage your numbers in that format. All in all, it’s a quick and easy financing application.

As we move into the future, take your finances with you. Mobile banking applications can make handling your finances so much easier.

Credit cards offer misleading introductory offers and teaser rates boasting very low APRs, minimal interest rates and no annual fees. During the first 12 month, low rates stay that way, but after a year, consumers may be surprised to find high APR rates and other miscellaneous fees on their bill, as consumers are now obligated to pay the highest standard APR rates in decades.

The national average for APR is 14.9 percent, according to Credit-Land.com. This rate is the highest that it has been since 2007. So, while sifting through all the introductory offers and low interest rates, it’s important to find a low APR card that suits your needs.

Here are some things to look for when picking a low APR credit card.

What’s the Interest Rate?There is never a zero interest rate. I repeat; your interest rate will never be zero. It’s important to not only know what the interest rate is, but also when you are required to pay that interest rate. The general rule is the lower the interest rate, the better the credit the applicant must possess.

What About an Annual Fee? Check out if the card you’re interested in requires you to pay an annual fee. Annual fees are like low APR introductory offers— they may be waived for the first 12 months, so make sure to look into it and to ask the appropriate questions. There are many credit cards with annual fees, but if you can avoid dishing out this extra bit of money, you should.

Is it a rewards card? Find out if there are any fun perks associated with the card, such as frequent flyer miles, access to a rewards mall or cash back. According to the report, the APR rate for cash back cards has increased more than 1.5 percent in only six months. Rewards card tend to have higher APRs than traditional cards.  “The most user-friendly cards seem to have the highest APR rates… mainly cash back and rewards cards. These two types of cards generate a lot of consumer traffic and also have a very high APR,” a Credit-Land representative said.

When shopping around for a low APR credit card, look for a card takes care of your needs from the day you open the account. The $50 cash back, or those 15,000 free introductory frequent flyer mileswill notpay for the excessive interest rates that you will accrue in 365-days-time.

Some Low APR Credit Cards:

CitiBank Platinum Master Card Select – APR ranges for 11.99 to 20.99%, depending on credit score.

Capital One Platinum Prestige Credit Card – 10.9 – 18.9% APR

HSBC Bank Nevada Household Bank Rewards Card – 19.90% APR