Pages

Saturday, 2 June 2012

Low Interest Credit Cards For Fair Credit

There are credit cards out there for everyone. From the bad credit, to the excellent credit, you just have to know what you're going to be able to get approved for. When you generally think of fair credit, you probably think of a score that's in-between, such as a 600-650. Yes, this score is poor, but it can still land you some good cards.

A fair credit score can be somewhat difficult to fully understand. While it is not necessarily a bad rating, it is also not exactly a good or excellent rating. In most cases people who have fallen behind on their monthly payments, missed a couple of payments entirely, have a low income to debt ratio, or have a general hardship repaying revolving credit debts, are categorized as fair credit risks.

It is also possible for incomplete or incorrect information in your credit report to cause your score to be downgraded to fair status. This is often the case when a recently paid off balance has not yet been recorded. No matter exactly how you ended up in the group of people with fair credit, it is important to understand that you are going to have to work a bit harder when seeking financing or credit with reasonable terms. This does not, however, mean that you will be completely unable to get a loan or a credit card.

There are actually plenty of lenders in the market today that offer low interest credit cards for fair credit. The key to finding a legitimate card with terms that will not cause your current financial situation to worsen instead of improve is to know where to look and what to look out for. Just as is the case with your current lenders, negotiating terms with a company you are currently applying for credit with can yield great results. The fact that you care enough to hammer out the details in order to make your financial situation better, is often considered to be an attribute to creditors.

When searching for low interest credit cards for fair credit, take a bit of time to negotiate a lower interest rate, a more forgiving billing cycle, or even a better monthly payment. By spending a bit of time at the beginning, you can potentially save yourself a great deal of money. Even though you take the time and prepare for your search for credit cards for fair credit properly, you must realize that you are still going to be seen as somewhat of a risk when applying. Although it is quite possible you will be approved for a card, you may not be able to receive all of the terms you desire.

In most cases, these types of cards come with lower limits on available credit, and possibly annual fees. While you may have been hoping for better terms, you should think about your future and how this card can help you rebuild your credit. By applying for and properly using credit cards for fair credit, you are making the statement that you are working to repair your credit. Staying current with your payments, paying down balances, and keeping your spending in check will all help to improve your credit score.

This will in turn show your other creditors that you are making an effort to upgrade your situation, which can lead to better rates and terms with these lenders as well. When you have finally fully repaired your credit, always manage your accounts wisely to ensure history will not repeat itself.

Friday, 1 June 2012

Low Fixed Interest Credit Cards

Credit card users would always love to get their hands on cards that have fixed rates. Nowadays, credit cards have variable interest rate that fluctuates according to index rates or even due to the card holders credit transactions. There are certain advantages of using fixed rate cards with low interest, which are hard to find but some companies do offer them.

There are two prominent systems with the help of which a credit card provider charges interest rate, or levies the requisite charges. The common one is a multiple APR or rather a variable APR, where the rate is charged upon purchase depending on the nature of the transaction. The second system is that of the fixed rate of interest. In the past decade, many credit card providers shifted their focus upon providing credit cards with variable or floating rates.

Fixed interest rate credit cards, as the name itself suggests, is a credit card that is provided at a fixed rate of interest that is payable for every billing cycle, irrespective of the amount is spent through the card. Of late, you may have observed that low fixed rate credit card offers are reappearing in the market. There are very few credit card companies that offer this kind of card, since it went 'out of fashion'. Irrespective of the 'old' and 'outdated' service the low fixed rate interest credit cards, are of significant importance, and also play a largely instrumental role in helping the credit card users in many ways.

How do Low Interest Rate Credit Cards Work?

Leave aside all that you know about credit card workings and credit card offers, out of all the credit card mechanisms, fixed rate cards have ridiculously simple billing cycles, also known as credit card processing. The credit card has a fixed interest rate which means that you have to pay up the interest, irrespective of the amount of purchases you made. After the card is approved you will have an interest free period, as per the credit card company's policy. It must be noted that there are also some governmental norms that make such a period compulsory, so that the user may get a gist of the working of the card.

When this time elapses, your billing cycles will start. The billing cycles are principally month cycles, or in some cases quarterly ones. The credit card company bears all expenses made through the credit card and a bill is sent to you at the end of the billing cycle. A particular rate of interest is charged upon the total sum. This rate of interest is common for all billing cycles.

Note that there is specified deadline for the payment of your bill, after which you will be charged with particular fine and your credit rating will drop. Conventionally, the interest that is charged upon the billing cycle is low, such as 8% to 10% (hypothetical). The rate of interest on low fixed rate of interest rate credit cards is extra low 4% to 5% (again hypothetical) and the credit limit is also not sky-high, but stretches up to a very good limit.

Why Low Fixed Interest Rate Credit Cards?

The question is genuine, due to the fact that there is genuine drawback that this credit card has the same rate of interest imposed on every bill. Well, there are quite a few advantages of using this credit card. For starters, let us say the exceptionally low rate of interest. This saves a lot of money in the long run. Apart from such a low interest there are fewer extra fees that are levied upon this credit card. Consider late fees, as they can be harmful, for your pocket as well as for your credit report.

This card is basically suited for some purposes such as grocery and medical bills which are churned out every month. Apart from that, the second advantage is that if you are successful in paying the bill every month then your credit ratings and credit score will rise drastically. On the whole for such regular payments, if you consider such a credit card, you will find that you will pay quite less interest and service fees.

If you calculate properly, and use the fixed rate cards wisely, then you will find that it is a simple and easy way to have a picture perfect credit report, by paying a low and fixed rate of interest. In fact, these kinds of cards are excellent student credit cards and bankruptcy credit cards.

Thursday, 31 May 2012

Low Interest Credit Cards For Good Credit

Finding Low Interest Credit Cards For Good Credit

There are credit cards out there for everyone. From the bad credit, to the excellent credit, you just have to know what you're going to be able to get approved for. When you generally think of good credit, you probably think of a score that's in-between, such as a 680 - 699.

Many people are looking for low interest credit card today. There are some deals out there for these types of cards. You may find that there are not as many of them on the market today as there have been in the past. The combination of the economic condition of the country and the fact that banks have tightened their restrictions on giving out credit have made it difficult to find a good deal these days. The credit companies used these offers in the past to attract customers, but today there are more customers than there are offers, which has significantly dried up the offers.

You should understand that a low interest credit card is usually just for a short period of time in the beginning of a new credit card account. You may find an offer that lasts as long as a year and some are as short as just a few months. When the offer expires, the standard interest rate will apply to the credit card balance. You should know what the interest rate will be when you read the disclosure statement from the bank.

Many of these low interest credit card offers also gave new customers the opportunity to transfer balances to the new card. This helped consumers take the balance from their higher interest cards and transfer it to a card that offered low interest. This was an enticing opportunity for new customers of the bank.

Unfortunately, these offers are long since past and there are no longer many companies making these kinds of offers. The banks are facing difficulties in receiving payments from their existing customers. This has made them a little wary of taking on new customers. Credit ratings are used to determine the interest rate that is paid by each individual customer. Of course, if you do some searching, you can still find an offer for a zero percent credit card. Do a little comparison shopping when you are in the market for a new credit card. By checking on some of the comparison sites, you can shop exclusively for low interest rate cards.

Make sure that you read the terms and conditions of the cards completely before you sign up for the credit card. You should know how long the introductory period will last and what the new interest rate will be when it is completed. There have been many instances of people who have ended up with very high interest rate cards because they did not find out this information until it was too late.

Read the disclosure statement that must be included with your new card offer. This will give you all of the information that you need to make an informed decision about your new low interest credit card. You should be aware of any fees associated with the new card. These expenses can add up to a pretty expensive credit card if you do not take the time to read through all of the information provided.

Wednesday, 30 May 2012

Low Interest Balance Transfer Credit Cards

Low Interest Balance Transfer Credit Cards - Is it a Great Deal Or is it a Trap?

Low interest balance transfer credit cards are promised by most credit card companies saying this is the solution to your problems. They tend to offer low interest rates even as low as 0% to get customers to sign up with them. Some even offer promos and other arrangements like free watches in signing up and a lot more. These are great deals but like all companies they do not do things for free after all it will all come down to business. Before judging if getting low interest balance transfer cards are helpful or not, it is best to know more about it, how it works and why people sign up for it.

Basics on low interest balance transfer credit cards

From the words "low balance transfer", we can already tell that these cards deal with the transferring of balance dues from one card to a different card. And why would you want to move your balance dues? The answer to that is cost cutting. These cards offer a lower interest rate that makes it appealing especially to those who have big dues.

With the rise of expenses in the market, these cards have become one of the major businesses of today. Companies earn large amounts of money through interest charges. Some companies have interests rate that are really high, some even reach 16% interest rate. Since this is consistently charged to the card holder, some card holders find it really hard to pay their dues and their balance charges gets bigger and bigger, then comes the low interest balance transfer credit cards. These allow customer to transfer their balance dues at a lower monthly interest rate which allows them to pay lesser than what they have been paying for every month with their previous company. Some even offer great deals and incentives once you sign in with them.

What do I get from low interest balance transfer credit cards?

Getting low interest balance transfer cards is a great deal. You get to save money since you pay lesser than what you have been paying for. With the right strategy you should be able to acquire great deals once you have signed on.

In choosing the right balance transfer card, look into the interest rates they offer and possible benefits or incentives that you can get in signing up. To get the best deal in signing up for low interest balance transfer credit cards, draw a comparison between other credit companies and their offers. Check your resources and make sure that you will be able to pay your new monthly charges.

What do companies get in offering low interest balance transfer credit cards?

Like all other businesses low interest balance transfer offered by credit card companies has a catch. Once you sign up, you will need to use and follow the promotion that they offered when you signed up. These companies also check your credit standing, if it is good then you get to make the most of it. If otherwise the low interest offered may not really be that low.

Aside from that, getting low interest balance credit cards may affect your credit score. In every instance that your balance would show above 30% of your card limit, your credit rating goes down. Plus if you have signed up for a transfer credit card that does not have available credit enough for your remaining credit which has to be transferred, then your credit rating would also get lower.

In these hard times, debt is something that we cannot do without. Getting low interest balance transfer credit cards may be the answer to our financial troubles but it is best to know what you are getting yourself into.

Tuesday, 29 May 2012

Credit Cards With Low Interest

Finding Credit Cards With Low Interest Rates

Finding credit cards with low interest rates is an effective, and a surprisingly overlooked, way for consumers to reduce their debt and save money. The good news is that this does not have to be an arduous or time consuming process. With a small amount of preparation, a few key pieces of information, and a little persistence, anyone can learn how to be a confident and effective shopper for low interest cards.

Approximately 55% of all credit cardholders carry a balance on their cards, and for these individuals in particular it's important to not only know how to find low interest cards, but to understand the general credit approval criteria used by card companies.

Often, the difference between a low interest credit card and higher interest rate cards can be 10% or more. A card with a balance of $5000 and an interest rate of 10%, for example, would have a minimum monthly payment of $92 (keeping in mind that minimum payment calculations can vary among companies). However, if this same card had a rate of 20%, the minimum payment shoots up to $129. Even worse, the time frame to pay off the higher interest card (paying the minimum payment) increases by nearly two years, and the total interest costs over the life of the card is roughly $4000 greater. Ensuring you are not overpaying on your credit card interest simply makes good financial sense that can directly impact your bottom line.

Before setting out on your credit card hunt, it makes sense to first do a little prep work to aide in your research. Two points are essential. Firstly - be clear on how good (or bad) your credit is. Secondly - you need to understand the various types of fees and penalties associated with credit cards so that you can accurately compare total costs and features between different card offers.

Know what is on your credit report. With today's laws that govern consumer's availability to their personal credit reports, there is no excuse for not obtaining and reviewing reports periodically. Learn the process to request your credit report.Your credit rating determines if, and how much, leverage you have over the credit card companies. Do you have an excellent credit profile that card companies drool over? Or, conversely, do you have poor credit - and find it difficult to get approved for most types of credit? When we talk about one's credit rating we refer not only to the all important credit score, but also the detailed payment history information contained in your personal credit report. Like any loan product, getting the best rates on credit cards will require an excellent credit history and payment record. The better the card interest rate - the more stringent will be the credit requirements. Being clear on your credit rating let's you know if you should concentrate your search efforts on the very best rates, or perhaps focus on a card offer that is a tier or two down from the lowest rates.

It's important to know and thoroughly understand the cost and fees associated with a typical credit card. Regulation Z of the Truth in Lending Act requires lenders to disclose fees and rates in a uniform manner. Credit card interest cost is expressed in the annual percentage rate (APR). Reg Z is extremely helpful in that it ensures that card companies publish the APR in big, easily recognizable lettering. However, beware that other penalties, fees, or rules may be found only in the fine print. For that reason - make sure to always read and understand the terms of any offer before submitting an application. Other fees to consider are; annual fee, late payment charges, grace period before late payment is charged, over-the-limit fees, credit limit increase fee, cash advance fee, interest rate on cash advances, and any other penalties. Hone in on the fees or penalties that are especially important to you. Do you sometimes need a few extra days to make a payment? If so - the grace period and late charge fees should carry extra weight in your card search criteria.

Also critical is to know when and under what circumstances a company can increase the rate. Credit cards come with either a fixed or variable interest rate. Though cards with fixed rates can go up, companies must provide at least a 15 day notice. Variable-rate cards, on the other hand, change automatically and without notice to the cardholder. Most financial experts recommend choosing a fixed-rate card over the variable rate.

Finding Low Interest Credit Cards:

Thankfully, we live in an age where the most efficient and speedy method to find, compare and research credit cards is right at our fingertips- the internet. A good first step is to get an idea of the average card rates in the country, which provides you with a reference point to gauge what rates are below average, above average, or somewhere in the middle. Good credit card rate charts can be found at bankrate.com and indexcreditcards.com. It's not uncommon for rate charts from different sites to show a slight variance in rates. Tabulating the average rates among credit cards from across the entire country is a complex process, with a fair degree of differences arising from data interpretation or timing processes. Use the charts as a guide - and try to utilize more than one.

To shop for, and research, a variety of credit card offers, the recognized leader is bankrate.com. There, you'll find an abundance of information to help you find and evaluate rates and other features. You have the ability to search by card type (such as low Interest cards or rewards cards) or credit type (e.g., excellent, good, average, or bad). Additional quality sites include creditcardguide.com, creditcards.com, cardratings.com, and cardtrak.com. MSN.com (moneycentral.msn.com/banking/services/creditcard.asp) has an excellent credit card analyzer tool where you can easily scan information on many cards, while Interest.com ( credit-cards.interest.com/content/compare/) employs a handy comparison tool that enables you to search by state.

As mentioned before, read the details and fine print of each offer that falls into your desired rate target range. Make sure the published APR is just an introductory offer. You may see a "V" next to the APR - this signifies the rate is variable. Use several sights to compare a wide selection of card products and offers.

What You Need to Qualify

Credit card lenders each have their own separate set of approval guidelines, which is dependent on their risk appetite and other economic and business factors. Generally speaking, to get the cards with the lowest rates, a credit score of 720 to 750, or even higher for some offers, will be required. Lenders will want to see a clean credit payment history, a higher than average income, and a low debt utilization ratio. Debt utilization, or sometimes called credit utilization, is a financial ratio that measure a person's total credit balances vs. their total credit limits - and is a figure lenders watch closely when extending credit. To visualize how to calculate a debt utilization ratio - let's look at an example of a person whose only debt is 2 credit cards, each with a $5,000 balance. If this person has maxed out both credit cards (i.e., their amount owed equals the credit limit), his or her debt utilization will be 100%. Lenders would frown heavily on this scenario as it may appear that a person may be overextending or mismanaging their debt. A figure of 20% should be the target for any individual looking to obtain a card with a low rate.

Not all consumers, of course, have the necessary qualifications to get the absolute cheapest cards - yet this need not be the end goal for everyone. For some individuals, simply improving on the rate you currently have could be a sensible goal. Evaluate your own credit worthiness - and then set realistic goals as to what credit card product you will target. An important point to remember is that you don't want to apply to too many offers at one time. Doing so raises a red flag to lenders that you may be trying to get too much credit in a short period of time - and can temporarily reduce your credit score. The best method is to submit one card application, and wait for a credit decision before applying for another offer if necessary.

Monday, 28 May 2012

Best Low Interest Credit Cards

Choosing Best Low Interest Credit Cards

A common question that I hear from most credit card searchers is, "How do I find the best low interest rate credit on the market?" Choosing the best low interest credit card may seem pretty easy; just pick the card with the lowest rate, right? Believe it or not, the lowest rate may not be the best deal. The best indicator to getting your best deal is to accurately gauge your future-spending pattern. We have "crunched" the numbers for you and have come up with the top three areas you should be looking at when choosing that perfect low interest card.

As mentioned above, the best way to begin your quest to find the best low interest credit card is for you to accurately judge your future spending patterns. This may take some honesty and soul searching. The best way we have found is to look at past spending.

Do you regularly carry a balance? Will you be transferring a balance? Do you pay your cards off monthly? Do use them in day-to-day transactions or for large purchases and emergencies? You will find out next why accurately predicting this spending behavior is important.

The first thing to look out for is the obvious the interest rate. There are a lot of cards that offer a low 0% interest rate for a fixed amount of time then the interest rate will resemble the child in the exorcist. These cards are useful if you plan to pay off the balance that you transfer or charge in that fixed amount of time.

Most people do not and the card companies know this. Do not use these cards if you have a past history of running long on your financial commitments. Instead, opt for a higher fixed rate and begin a steady payment plan.

The second thing you should watch is the multiple fees, particularly if you are using a 0% interest card for a fixed time period. Many credit cards will advertise "no annual fee" but will charge a balance transfer fee instead. Some will charge both. Most of your fixed rate credit cards will have an annual fee, which really equates into an interest rate when you think about it; it is a cost of money.

To accurately judge your cost you should estimate the time of repayment that is reasonable for you and the balance you expect to carry. Then, multiply the expected balance by the interest rate that will accrue in a one-year period. (i.e. $5000 x 10.00% = $500). Next, add the annual fee to that number and you have your annual cost of credit. The lowest number wins!

The third thing to consider when choosing a low interest card is reputation. Many cards have a reputation of changing the rules mid game if you hiccup wrong. This practice is called "Universal Default", most of your larger companies are moving away from this practice.

However, you should make sure you ask ahead of time if they have this clause in the agreement. We also suggest that you perform a quick Google search of that card or company you are considering. Search the name and "complaints" and scroll down three or four pages.

You will find quite a few dissatisfied customers for every credit card out there. Some are legitimate gripes, others are people who failed to plan ahead or read the fine print. Ask the company directly about those complaints and judge for yourself if they are valid.

Finally we recommend that you use cards wisely. I know, this is easier said than done, I myself have lagged in this department. Plan your credit card purchases then set the credit card aside to pay that balance off. Use the formula above to see the cost of credit to ensure you are not overpaying; have designed a card comparison calculator for you to use to more accurately judge your choices. Just remember, credit cards are wonderful when used as a tool, but crippling when used as a crutch.

Visit www.directbanc.com for more information about low interest credit cards.

Sunday, 27 May 2012

Credit Cards With Low Interest Rates

Understanding Low Interest Rate Credit Cards

One of the ways that credit cards get consumers interested in their credit card products is by offering them low interest rates or low interest rate introductory offers. While low interest rates are great for consumers, do your homework so that you're not surprised with high fees or short term low interest rates that jump sky high after the introductory period is over.

It's hard to turn down a credit card with 0% interest, but as they say, there is no such thing as a free lunch. While credit cards with low fees are great for consumers, banks need to make their money in some way and have a way of finding revenue by adding steep fees and only offering low interest rates for the short term.

For instance, you might sign up for a credit card with 0% interest for 6 months, only to find that at the end of that period, the interest rate jumps to 15%. During the first 6 months, you used that specific card very often thinking you are getting a bargain. Unfortunately, now that your credit card balance is higher than before you will be paying a high interest rate and not getting such a great deal. If you want to avoid high interest rates and high credit card debt, avoid traps such as the one above. Low interest rates are great, but in the long run an introductory offer can hurt more than a stable low interest rate credit card.

Low interest rates that last for more than 6 months or a year are usually given to consumers with the best credit rating. If you have good credit, you can usually count on being offered good credit card rates with low fees, for people with bad or poor credit expect a moderate or high interest rate.

There are instances where consumers can use low or no interest rate introductory offers to their advantage. One is to purchase an item that you have the money for in the bank, you can easily pay it off in six months and don't have to use your savings as it accrues interest. This might work for a high priced TV or vacation. Another instance, low or zero percent interest rates can work for you is if you have a high credit card balance on another card. You can transfer the card to the new card, no longer paying your high interest rate each month. This alone can save you a few hundred dollars over the course of six months or a year.

Related Posts