Cashback Vs. Rewards Credit Cards
March 8, 2010
By using the 0% transfer rate, they can delay to make the payment up to six months or more without getting charged with interests. These offers have become so popular that credit card issuers found themselves victim of their own success. Millions of people started to move their balances frequently from card to card due to avoid the interest payment.
In order to avoid loosing million of dollars of interest payment, financial organizations have introduced the ‘handling charge’ for balance transfer which turned the cards much less attractive to consumers who wanted to get the most advantage from their credit cards. But don’t be disappointed. Another excellent offer takes place in the credit card world which will positively ensure more profitable use of credit cards: Cashback and Rewards programs.
Advantages of having a Cash-back type of Credit Cards
The benefits in using the cash back credit card with that of the rewards credit card is the flexibility. The cash back type of credit card will automatically earn you a point or rebate plus in any type of purchases that you do to your credit card. Then, the amount of rebates that you get will depend on the issuer of your credit card. This can range from 1% up to 2% rebates. In spite the fact that the rebate points are low in the cash back credit card, it will give the credit user the liberty in using the credit card in any merchandizing stores that they prefer and will still get points in all of their purchases.
Advantages of having a Rewards type of Credit Cards
In the rewards type credit cards they give generally a much higher percentages ranging to at least 5% in purchases. Meanwhile, their rebate points are limited to the purchase designated in the affiliate merchants.
In the sample, when you choose a gas reward types of credit card, you can be entitled to have a rebate points to get yourself a refuel for your vehicle in any affiliate gas stations. Then you want to use your rewards points in order to buy in any establishments, there will be no points that can be counted to your account.
In the time that you get a hotel rewards type of credit card, you will earn several points to any hotel establishments to your credit card.
Avail Standard Chartered credit cards at Cheaper Interest Rates
March 1, 2010
The main advantage of credit cards, that have appealed to most people, is the fact that, even if you do not have cash in bank, you can make necessary purchases. Infact, in this context, they give a particular grace period to pay back the money. These cards are under international bodies, VISA and Master Card which have connections with more than 20000 financial institution throughout the world. In India, the Standard chartered credit cards and the Axis bank credit cards have become more common for their user friendliness and easy accessibility.
What has made this bank famous, is because of its trust worthiness and multiple ways of offering finances. It provides cash back offers, services for international travel cards to avail privileged access in exclusive areas and many other priority offers. Some of the famous exclusive offers provided by the Standard chartered credit cards are StanChart Manhattan Platinum Card, Standard Chartered Gold Card, Standard Chartered Bank Rotary Card and many more.
For instance, with the StanChart Manhattan Platinum Card you can avail free tickets to PVR’s and can also get cash returns upto 5 percent for any purchase you make in departmental stores or super markets. It is infact, one of the best shopping partner for you and you can avail full discount on book purchase in the Odyssey bookstores. Standard Chartered Gold Card has created waves for its unique offers, that helps you to enjoy a luxurious way of life. The main plus point of this feature lies in the fact that, it is globally accepted and you can even visit your favourite restaurants. Apart from this, it also provides you with international travel benefits. What has made it the most sought after among people is its EMI card, that is considered to be one of the best card in town, with no processing fee or pre-closure charges. It has low interest rates of 2 % per month and only 0.53 per month as EMI.
Other than the Standard chartered credit cards, the Axis bank credit cards have created much fuss in India and the world market for their distinctive features and cost effective interest rates. It is one of the most trusted banks to avail cash credits without even a second thought. It also has different types of cards with unique lucrative offers. For instance, the Axis Bank Corporate Credit Card helps you to save money with online booking, keep proper note on the amount of transactions made. It has a streamline card payment, that has proved highly advantageous for users. Other than this, there are various such other cards with distinctive features. For example, Individual Gold Corporate Card, Gold Plus Credit Card, Subhiksha Credit Card and many more.
What is of maximum advantage in this context is the fact that, the advent of the Internet helps to choose the right card, that suits your requirements. For instance, with the help of Free Credit Card Comparison, people can now avail the best offers that would be best suited to the requirement of the user. In this context, a number of comparison websites have come up with such features that assist in providing you with the best possible credit cards.
How To Get Full Advantage Of Your Credit Card
February 25, 2010
Credit cards offer a lot of possibilities these days to bring savings and other offers your way at discount prices. Many people do not take advantage of them and end up paying much more than they need to on the things that they charge to their credit card. Here are a few ways that you can take greater advantage of a new credit card and make it work for you.
Starting out, you want to look for that credit card that will best suit your needs for it. Select your card with rewards or rebates that you can really benefit from. For instance, if you have need to drive a lot and your biggest monthly expense is gas, hotels, and restaurants, then you will want to get a gas card, or driver’s credit card that will give you rebates on these things. If you fly a lot, then you want an air miles card that also gives you rebates or points on your hotel and restaurant bills, too. Either one of these cards could also give you points which you can use toward renting a car.
Other cards will give you a low percentage of usually one to three percent on your purchases of gas, food, and medicine. Beyond that, you get credit for whatever the card may specialize in. Here is another way to get savings. By buying regular things on your card, you can reduce the actual cost even more. The key here, though, is that your savings are really based on your paying the balance off each month and on time. If you don’t, then your savings are probably being eaten away by your interest and possibly late payments.
The first feature that you want to look for when getting a new credit card is one with a low interest rate. This rate will become part of your payment each month after the introductory period runs out. Just one or two percent in interest can save you hundreds of dollars each year if you regularly leave a balance on your credit card. It will take a good credit rating to get a real good rate, though. You also want to make sure that you make your payments on time, too, because even one late payment can ruin your chances of keeping the introductory offer. After that, you will probably end up paying the full interest rate.
A balance transfer option is another money saving feature that you need to have if you have any existing credit card balances on other cards. Look for a long introductory offer of at least one-year of 0% APR interest and put your balances on the new card. Avoid cards with fees for balance transfers – many are available. Then, pay as much on your monthly bill as you were before on the credit card that will reduce your principal quicker than if you had the interest on it.
Look for any fees that may apply and get a credit card with as few as possible. This will mean taking some extra time in order to read some of the fine print – you might be surprised what is printed (or online) there. Then compare all other features with the other cards you think might be good. After that, you should be able to come out with the card that will allow you to get full advantage of what a good credit card has to offer.
Credit Repair 101: 10 Tips for your Credit Success
February 23, 2010
So you don’t have the best credit record in history. You’ve maxed out cards, missed monthly payments, and “robbed” from plastic Peter to pay plastic Paul.
Your financial mistakes have finally caught up to you, and you’ve just found out officially that you have a poor credit score. In most cases, you can recover from your credit mistakes.
Make a disciplined plan to repair your credit profile with our Credit Repair 101 tips:
1. Make A Plan And Stick To It.
You must be serious and committed to making changes in your lifestyle – changes that will bring financial peace of mind. Above all, restrict yourself to absolutely necessary purchases. Borrow wisely. The two most important questions to ask yourself: “can I afford it?” and “do I really need it?” As tempting as it is to cut up all of your plastic, you must maintain responsible credit card use – your new payment history will gradually rebuild a better credit rating for you.
2. Prompt Payment Of Bills.
Especially of credit cards, is the surest way to repair your credit rating. As you have discovered, we leave “financial footprints” for all to see. Payment of our bills, both amount and timeliness, are tracked by credit rating agencies such as Equifax Canada and TransUnion of Canada.
3. Say No To Grace Periods When Offered By Credit Card Companies.
It’s hard to resist such offers, and because your budget is light, you naturally want to “legally” skip payments — but don’t do it. It’s a bad credit habit; only a financially strapped customer would fall for this, and you no longer want to send out that kind of message. Pay at least the minimum balance if you are really tight, but ideally you want to pay above that.
4. Always Try To Pay More Than The Minimum Balance Due.
Not only does it polish your credit rating, but it also saves you a lot of money in interest, and makes a huge difference in your eventual goal of debt retirement. A key credit skill.
5. Keep Your Balances Low.
This is an important strategy, and one that will reflect well on your use of credit. You want to keep your balance way below the credit available to you.
6. Don’t send out financial distress signals.
Avoid excessive inquiries for credit. Do not use credit from one company to pay off credit to another. The creation of multiple new accounts is another red flag that works against you.
7. Maintain and use between two to four cards.
Less that two and it takes longer to create a new payment history. More than four, and you look like you cannot manage your debt. Remember – responsible, steady, and reliable use of your cards is your first and best defense against a poor rating.
8. Try To Keep Your Oldest Most Established Credit Card Active.
The longer your history is with a certain company, the better it is for your credit rating. This is your most important account. If the
interest rate is excessive, contact the company and explain your situation to them. Let them know that you are serious, and eager to maintain them as a creditor. Their goal is to keep a reliable
customer, so make that work for you.
9. Contact Your Creditors.
Don’t hide your head in the sand, and hope for the best. Take action. Pick up the phone, and explain your situation. Be upfront and honest. Remain cooperative and calm. Not only will they appreciate your initiative, but also they will be willing to create a payment plan that works for you. By calling, you are showing them that you are a concerned low risk customer. And, by communicating, you will avoid the dreaded collection agency round – a real downer for your credit rating.
10. Slow and steady wins the race.
You’ll be rewarded for responsible longtime credit handling. Be patient — the passage of time will earn back your good credit profile.
Then, when you do need credit for a major purchase — such as a car or a house — it will be there for you. Once recovered, maintaining a good credit rating takes vigilance, but it’s worth the effort. You’ll be able to live and enjoy a financially stable life.
Understanding Credit Cards
February 17, 2010
Quite simply a credit card gives you a loan of money to finance purchases. Everybody has a limit as to how much they can spend, and this is known as your credit limit. At the end of each month you have a decision as to how much you would like to pay off. You must at least pay your minimum repayment, at most clear your credit entirely, or you could choose to pay off something in between.
Don’t confuse Credit Card with:
1. Debit Cards – Debit cards are linked to your bank account, and automatically remove cash from your bank account to finance purchases. Please note that with a debit card you are not being given a loan of money.
2. Check Guarantee Card – This is merely to provide safety to a retailer or person who is accepting a check. This means that their bank will pay up to the amount on the check guarantee card should the person completing a payment fail to honor it.
3. Charge Card – The fundamental difference between a credit card and a charge back card is that, with a charge back card, you have to pay back the full amount at the end of each month.
Why would I need a credit card?
1. Less Risk – with a credit card you eliminate the need to carry around large amounts of cash, and that means you stand less risk of losing money or having money stolen.
2. Internet Shopping – If you would like to shop safely online then getting a credit card is almost certainly your best choice. With a credit card you will be able to shop at your favorite online stores, and will also have certain guarantees from your card provider should your goods or services not live up to what you were expecting.
3. Going Abroad? – With a credit card you will be able to have currency converted without the need to go to a money agent. The other inherent advantage is less risk in terms of theft abroad.
4. Spread Costs – With a credit card you can spread the cost of something over a period of months. Let’s say you wish to make a purchase that you will be able to pay-off in two months. With a credit card you can have the goods or services immediately.
5. Emergencies – Imagine the situation. You come across a one-off exceptional cost like repairing your car, but you simply cannot afford it. With a credit card you will be able to pay this off immediately, and will not miss work as a result of your car being dysfunctional.
Borrowing money has negative connotations as well as practical advantages. Ensuring that you understand the advantages and disadvantages of borrowing will ensure that you stay out of trouble, whilst still being in control. Please remember that credit cards don’t make you any richer than you were to start with! Credit Cards only provide a format to finance purchases that you can afford, but don’t have the cash upfront. That is why, before you spend any money with a credit card, stop and think if you will have the finance to pay for it in future, and also consider the likely costs of borrowing this money.