Credit card security is a big issue in the world today. We hear of a number of frauds taking place involving huge sums of money being swiped away by technology thieves and it is virtually impossible to apprehend the miscreants. Online safety is a huge issue today. Apart from shopping physically at various establishments and stores, you can also enjoy a variety of online shopping from across the world. Whether it is clothes, books, music, furniture, jewels, or even tickets, they can all be bought at the mere click of a button on your computer even as you sit in the comfort of your home.
But how secure is this transaction? Skepticism is keeping a vast majority away from making purchases online. That is because of the security issue of giving out your credit card number on the Internet. This has dampened the spirit of all the e-retailers and they now even offer a phone number so that you can call in with your order. Hackers are a huge threat to online shopping and we find security features often being tampered with in the credit card frauds.
However, the flip side to the deal is that in case on an online credit card scam, you need to pay only a maximum of $50 whatever is the amount stolen from your credit card transaction. There are a number of ways being adopted to prevent miscreants from seeing your details and misusing them. We even have a Direct Marketing Association to track consumers who would rather not encourage soliciting for various products and serviced by mail or even by phone. You can ensure total privacy and protection as soon as you receive your card.
There are several companies that will remove your name from the mailing list if you write to them with your name, mailing address and social security number. In fact in the United States we even have reporting bureaus that will connect with bureaus across the nation and ensure that you do not receive any junk mail and unnecessary soliciting.
You could even get in touch with your credit card companies and request them to remove you from their mailing list. All this will enable you to enjoy a secure credit facility with a scam free shopping environment.
Tuesday, July 2, 2013
Can I Use My Credit Card Abroad?
Can I use my credit card abroad? You know that credit card are vastly used across the United States and nearly all merchant establishments accept credit cards. However, if you are traveling abroad, you need to check out the place before going. You might be in for some surprises.
In many countries the Visa and MasterCard networks have merged so you can use either one of the cards in those countries. However you may not be able to enjoy the same service when you want to withdraw currency from the ATM. You might be able to withdraw on the Visa but not necessarily on the MasterCard. So you might want to carry both your cards while traveling.
There are certain countries that accept both the cards but they have not merged services no you will be required to use both as the case may be, according to the establishment. The Visa and MasterCard are by far the best accepted throughout the world and they are best used while traveling abroad. AmEx and Diners Club are popular in the United States but not so in several countries elsewhere.
Ensure that you check out with your contacts in that country as to what the situation is or you could even go online and garner all the information you need on the credit card acceptance across the world. Beware, there are even some countries that do not accept any credit cards! Yes indeed. So the only way out there would perhaps be to carry cash or travelers checks, if that is accepted that is. However, credit cards are used in most parts of the world today and those places where you cannot use credit cards are not so many.
There are certain countries, which are notorious for credit card fraud. So you have to exercise extreme caution while traveling to those countries and you must try to avoid credit card payments as far as possible. You are bound to get tricked into parting with several dollars if you are not careful or even if your credit card company is not watchful. You might find yourself saddled with a bill that never saw you making the purchase.
When you are traveling abroad, always leave the credit card numbers and a photocopy of the cards along with their phone numbers at home. This will enable you to lodge a complaint in case of fraud or a theft of your cards while you are traveling. It is a precaution well worth taking.
In many countries the Visa and MasterCard networks have merged so you can use either one of the cards in those countries. However you may not be able to enjoy the same service when you want to withdraw currency from the ATM. You might be able to withdraw on the Visa but not necessarily on the MasterCard. So you might want to carry both your cards while traveling.
There are certain countries that accept both the cards but they have not merged services no you will be required to use both as the case may be, according to the establishment. The Visa and MasterCard are by far the best accepted throughout the world and they are best used while traveling abroad. AmEx and Diners Club are popular in the United States but not so in several countries elsewhere.
Ensure that you check out with your contacts in that country as to what the situation is or you could even go online and garner all the information you need on the credit card acceptance across the world. Beware, there are even some countries that do not accept any credit cards! Yes indeed. So the only way out there would perhaps be to carry cash or travelers checks, if that is accepted that is. However, credit cards are used in most parts of the world today and those places where you cannot use credit cards are not so many.
There are certain countries, which are notorious for credit card fraud. So you have to exercise extreme caution while traveling to those countries and you must try to avoid credit card payments as far as possible. You are bound to get tricked into parting with several dollars if you are not careful or even if your credit card company is not watchful. You might find yourself saddled with a bill that never saw you making the purchase.
When you are traveling abroad, always leave the credit card numbers and a photocopy of the cards along with their phone numbers at home. This will enable you to lodge a complaint in case of fraud or a theft of your cards while you are traveling. It is a precaution well worth taking.
How to Decide on the Best Rewards Credit Card
The collective battle cry in the market to 'Serve the Customer' in times of intense competition can be quite overwhelming. Subliminal persuasion by the companies and the myriad rewards credit cards available to the consumers can make the choice of one an onerous task. Essentially, the rewards credit cards attracts consumers motivates spending by providing loyalty rewards. To find the best rewards card from those on offer, you need to introspect on your lifestyle, spending habits and the various benefits promised by the companies offering rewards credit cards.
Lifestyle
Lifestyle is a major determinant in choosing the best rewards credit card. It is better to select a rewards credit card, which rewards you for the purchases you make most frequently, so that you can easily accumulate bonus points. Also, make sure that the rewards offered are the ones you are interested in and not something of any use for you.
Spending Habits
Consider your spending habits before deciding on the best rewards credit card. Typically, the more you spend in a year, more are the reward points you earn. Most rewards cards have a monetary limit beyond which you cannot avail of rewards. The solution, in such an eventuality, may be to find a new rewards card. Other rewards cards have an expiration date, so that if you do not earn enough points in this time frame, then no reward points are earned. Do consider the expiration date and the trade-off points, when deciding on your card. Also, rewards credit cards carry a higher rate of interest than traditional cards. It is imperative that you pay the balance due each month in due time to avoid paying higher finance charges. If you do not intend to do so, select a rewards card with low interest rates.
Benefits Of The Rewards Card
In addition to the rewards programs, a good rewards credit card also offers benefits such as, purchase protection, extended warranty coverage, travel insurance, auto rental insurance, lost luggage insurance, gift certificates or discount coupons, and even discounts in airline tickets. It pays to take these into account in addition to your lifestyle and spending habits while deciding on the rewards card best suited for you.
Lifestyle
Lifestyle is a major determinant in choosing the best rewards credit card. It is better to select a rewards credit card, which rewards you for the purchases you make most frequently, so that you can easily accumulate bonus points. Also, make sure that the rewards offered are the ones you are interested in and not something of any use for you.
Spending Habits
Consider your spending habits before deciding on the best rewards credit card. Typically, the more you spend in a year, more are the reward points you earn. Most rewards cards have a monetary limit beyond which you cannot avail of rewards. The solution, in such an eventuality, may be to find a new rewards card. Other rewards cards have an expiration date, so that if you do not earn enough points in this time frame, then no reward points are earned. Do consider the expiration date and the trade-off points, when deciding on your card. Also, rewards credit cards carry a higher rate of interest than traditional cards. It is imperative that you pay the balance due each month in due time to avoid paying higher finance charges. If you do not intend to do so, select a rewards card with low interest rates.
Benefits Of The Rewards Card
In addition to the rewards programs, a good rewards credit card also offers benefits such as, purchase protection, extended warranty coverage, travel insurance, auto rental insurance, lost luggage insurance, gift certificates or discount coupons, and even discounts in airline tickets. It pays to take these into account in addition to your lifestyle and spending habits while deciding on the rewards card best suited for you.
How To Consolidate Credit Card Debt With Bad Credit
There are a lot of advertisements for credit card consolidation, but the biggest problem is that your credit must be good in order to get approved. Unfortunately, most people that have struggled to make the minimum payment on their card each month, have also occasionally made a late payment, tainting their credit in the process. What is a person with bad credit to do if they are interested in consolidating their credit card debt into one low interest, easy to pay loan?
Use the Equity in Your Home
One of the easiest ways to secure a credit card consolidation loan when you have less than perfect credit is by putting up the equity in your home as collateral. If your home's value has increased since you purchased it, you can borrow money against that amount. A lender isn't as concerned with your credit when you take out a home equity loan to pay off your debts. For the lender the risk is minimal. You don't want to lose your house, so chances are that you are going to do everything in your power to see that the home equity loan payment is your first budget priority. If for some reason you can't pay the loan back, the lender doesn't lose out, because the company can recoup its investment by acquiring your house.
Expect Higher Rates
If you have bad credit and you are not a homeowner, there are still ways for you to get a consolidation loan. However, you have to expect a higher rate of interest than you would have if you had the collateral of a home or better credit. Doing your research and comparing debt consolidation loan companies will ensure you get the lowest rate possible for your credit situation.
Use a Credit Management Service
Credit management services that negotiate with credit card companies to lower your debt often have programs in which they pay your monthly payments to all of the companies that you owe, using money from the one check that you write to them each week. While it isn't exactly a consolidation loan, because your creditors aren't paid off all at once but instead receive monthly payments, it functions the same way that a consolidation loan does. It lowers your interest and allows you to make one monthly payment instead of several.
Use the Equity in Your Home
One of the easiest ways to secure a credit card consolidation loan when you have less than perfect credit is by putting up the equity in your home as collateral. If your home's value has increased since you purchased it, you can borrow money against that amount. A lender isn't as concerned with your credit when you take out a home equity loan to pay off your debts. For the lender the risk is minimal. You don't want to lose your house, so chances are that you are going to do everything in your power to see that the home equity loan payment is your first budget priority. If for some reason you can't pay the loan back, the lender doesn't lose out, because the company can recoup its investment by acquiring your house.
Expect Higher Rates
If you have bad credit and you are not a homeowner, there are still ways for you to get a consolidation loan. However, you have to expect a higher rate of interest than you would have if you had the collateral of a home or better credit. Doing your research and comparing debt consolidation loan companies will ensure you get the lowest rate possible for your credit situation.
Use a Credit Management Service
Credit management services that negotiate with credit card companies to lower your debt often have programs in which they pay your monthly payments to all of the companies that you owe, using money from the one check that you write to them each week. While it isn't exactly a consolidation loan, because your creditors aren't paid off all at once but instead receive monthly payments, it functions the same way that a consolidation loan does. It lowers your interest and allows you to make one monthly payment instead of several.
Credit Card Danger
What I call the, "I want it NOW" syndrome, is something that we expect from children. The problem being that many adults never mature enough to grow out of this syndrome. People should get credit counseling at a very young age - it should be a required curriculum in our school system.
There are many theories as to why people feel such a strong need to go deeply into debt in order to fill their lives with material things. Credit cards are a required necessity in today's modern world; however without responsible use of these credit cards, a consumer can soon find themselves choking in debt. Consumers find themselves in a vicious cycle: first they start by only making the minimum payment required (which often does not even cover the accumulating interest), next the consumer finds it necessary to make a payment late, or skip a payment. This strategy causes a boomerang effect as it usually triggers a huge jump in the interest rate you are paying. Credit card companies are really smiling when you miss a payment, the late fees seem to be getting bigger and bigger, the fee alone may be $35, $50, or even $75 or more - that fee is pure profit for the credit card company. To add insult to injury, on top of that fee, you will find your interest rate has doubled or tripled.
Most credit card owners probably get several letters in the mail offering them a cash advance "to use in any way you want", it usually mentions some dream vacation, or other expensive item that we all dream about. The letter will mention an extremely attractive interest rate, sometimes even zero interest for a specified period of time. How many people read the find print on the back of these offers - where it explains that if you violate any terms of the agreement - your interest rate will soar to the highest allowable by law.
The stress of dealing with debt collectors, and other consequences related to poor credit can take its toll on your family life and can lead to more serious issues like divorce and many turn to drugs or alcohol to ease the stress.
Consumers often need credit counseling and should reach out to professionals to help them improve their credit rating and repair bad credit. Credit card interest rates along with late fee penalties can get out of control; thereby creating a deadly trap where making even the minimum payments won't be enough to get your head above the water. An experienced consumer credit counselor can help you find a solution, and perhaps reduce your debt significantly. Consumer credit counseling services can help negotiate reduced payment amounts with lower interest and monthly payments by standing behind you and reinforcing your commitment to paying off your debts.
The first step is to recognize that you have a problem. The next step is to seek out an experienced professional credit counselor. Check out several potential credit counselors. Get references and ask for recommendations from friends. Choose your credit counselor wisely and ALWAYS read the fine print. Don't be embarrassed to seek help; you are not the only person who has found themselves deep in debt, the sooner you acknowledge and deal with the problem the sooner you can move on with your life
There are many theories as to why people feel such a strong need to go deeply into debt in order to fill their lives with material things. Credit cards are a required necessity in today's modern world; however without responsible use of these credit cards, a consumer can soon find themselves choking in debt. Consumers find themselves in a vicious cycle: first they start by only making the minimum payment required (which often does not even cover the accumulating interest), next the consumer finds it necessary to make a payment late, or skip a payment. This strategy causes a boomerang effect as it usually triggers a huge jump in the interest rate you are paying. Credit card companies are really smiling when you miss a payment, the late fees seem to be getting bigger and bigger, the fee alone may be $35, $50, or even $75 or more - that fee is pure profit for the credit card company. To add insult to injury, on top of that fee, you will find your interest rate has doubled or tripled.
Most credit card owners probably get several letters in the mail offering them a cash advance "to use in any way you want", it usually mentions some dream vacation, or other expensive item that we all dream about. The letter will mention an extremely attractive interest rate, sometimes even zero interest for a specified period of time. How many people read the find print on the back of these offers - where it explains that if you violate any terms of the agreement - your interest rate will soar to the highest allowable by law.
The stress of dealing with debt collectors, and other consequences related to poor credit can take its toll on your family life and can lead to more serious issues like divorce and many turn to drugs or alcohol to ease the stress.
Consumers often need credit counseling and should reach out to professionals to help them improve their credit rating and repair bad credit. Credit card interest rates along with late fee penalties can get out of control; thereby creating a deadly trap where making even the minimum payments won't be enough to get your head above the water. An experienced consumer credit counselor can help you find a solution, and perhaps reduce your debt significantly. Consumer credit counseling services can help negotiate reduced payment amounts with lower interest and monthly payments by standing behind you and reinforcing your commitment to paying off your debts.
The first step is to recognize that you have a problem. The next step is to seek out an experienced professional credit counselor. Check out several potential credit counselors. Get references and ask for recommendations from friends. Choose your credit counselor wisely and ALWAYS read the fine print. Don't be embarrassed to seek help; you are not the only person who has found themselves deep in debt, the sooner you acknowledge and deal with the problem the sooner you can move on with your life
Choosing Your Next Credit Card
Many people who were once wary about using credit cards are now rushing to get credit from their company of choice. One reason for this is that many credit card companies nowadays are willing to give credit cards to almost everybody, even to people with bad credit. The companies are reasoning that they will make money from people who do not pay their bills on time as well as more responsible consumers, since the former tend to pay higher interest rates and late fees. There are very few people who simply do not pay off their credit cards at all and attempt to disappear. Therefore, there is little risk of extending credit to people who will absolutely not pay off their credit cards.
Therefore, one should be cautious before obtaining credit cards. It might be tempting to sign up if there is a claim of absolutely no rejection, but if you do not use the card or cannot pay off your bills, your credit cards might end up costing you a fortune in the long run. It is a good idea to be selective concerning which credit cards you wish to obtain and to think carefully before signing up.
There are many different types of credit cards on the market these days, including:
- Cards for those with good credit
- Cards for those with bad credit
- Smart cards
- Reward cards
- Credit cards for minors
Significant benefits are given to those who have good credit. Many companies offer premium gold or platinum credit cards with no annual fees, 0% APR and a higher credit limit. This means that you can make more purchases with few or no restrictions. Therefore, it is important to keep your gold and platinum credit cards under close watch, since a thief can make significant charges to your account.
Many more credit card companies are offering credit cards to people with bad credit. They are willing to take this risk in exchange for an annual fee and a low APR. Many companies will check employment history, but many more nowadays will rely on the fee rather than past records. Instead of avoiding credit cards completely, it is a good idea for those with a flawed credit history to apply for these kinds of credit cards, to make modest, regular purchases with their cards, and to make payments on time. This will help repair their credit, which is a gradual process.
With identity theft occurring more frequently, smart credit cards are becoming more popular among security conscious consumers. Smart cards are embedded with microprocessor chips, which hold more information than traditional magnetic strips. These smart chips encrypt information to prevent cloning and fraud. If your chip is disabled, the company is automatically notified.
Reward cards are a popular way of earning air miles, hotel points or free gas as you use your credit card in the supermarket or the shopping mall. Many consumers enjoy accumulating points for these items as they make their ordinary purchases. It usually takes some time before you will be able to receive free items, and it is not such a good idea to make extraneous purchases just to earn more points, but many feel that the regular shopping they do will eventually pay off in the form of rewards.
Many parents are understandably leery of trusting their teenagers with credit cards. However, they would like their kids to learn early on about how to use credit responsibly, pay bills on time. A good compromise solution is to get a special credit card for your teenager that can be monitored. These credit cards have limits on them stipulated by the parents and allow parents to be informed of each transaction. Therefore, it is impossible for a teenager to spend more money than the parents will allow.
Therefore, one should be cautious before obtaining credit cards. It might be tempting to sign up if there is a claim of absolutely no rejection, but if you do not use the card or cannot pay off your bills, your credit cards might end up costing you a fortune in the long run. It is a good idea to be selective concerning which credit cards you wish to obtain and to think carefully before signing up.
There are many different types of credit cards on the market these days, including:
- Cards for those with good credit
- Cards for those with bad credit
- Smart cards
- Reward cards
- Credit cards for minors
Significant benefits are given to those who have good credit. Many companies offer premium gold or platinum credit cards with no annual fees, 0% APR and a higher credit limit. This means that you can make more purchases with few or no restrictions. Therefore, it is important to keep your gold and platinum credit cards under close watch, since a thief can make significant charges to your account.
Many more credit card companies are offering credit cards to people with bad credit. They are willing to take this risk in exchange for an annual fee and a low APR. Many companies will check employment history, but many more nowadays will rely on the fee rather than past records. Instead of avoiding credit cards completely, it is a good idea for those with a flawed credit history to apply for these kinds of credit cards, to make modest, regular purchases with their cards, and to make payments on time. This will help repair their credit, which is a gradual process.
With identity theft occurring more frequently, smart credit cards are becoming more popular among security conscious consumers. Smart cards are embedded with microprocessor chips, which hold more information than traditional magnetic strips. These smart chips encrypt information to prevent cloning and fraud. If your chip is disabled, the company is automatically notified.
Reward cards are a popular way of earning air miles, hotel points or free gas as you use your credit card in the supermarket or the shopping mall. Many consumers enjoy accumulating points for these items as they make their ordinary purchases. It usually takes some time before you will be able to receive free items, and it is not such a good idea to make extraneous purchases just to earn more points, but many feel that the regular shopping they do will eventually pay off in the form of rewards.
Many parents are understandably leery of trusting their teenagers with credit cards. However, they would like their kids to learn early on about how to use credit responsibly, pay bills on time. A good compromise solution is to get a special credit card for your teenager that can be monitored. These credit cards have limits on them stipulated by the parents and allow parents to be informed of each transaction. Therefore, it is impossible for a teenager to spend more money than the parents will allow.
Choosing Your Credit Card Based On APR
If you expect to always pay your monthly bill in full--and other features such as frequent flyer miles don't interest you--your best choice may be a card that has no annual fee and offers a longer grace period.
If you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).
If you expect to use your card to get cash advances, you'll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards charge a higher APR for cash advances than for purchases.
What are the APRs?
The annual percentage rate--APR--is the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest rate as a yearly rate.
Multiple APRs
A single credit card may have several APRs:
One APR for purchases, another for cash advances, and yet another for balance transfers. The APRs for cash advances and balance transfers often are higher than the APR for purchases (for example, 14% for purchases, 18% for cash advances, and 19% for balance transfers).
Tiered APRs. Different rates are applied to different levels of the outstanding balance (for example, 16% on balances of $1-$500 and 17% on balances above $500).
A penalty APR. The APR may increase if you are late in making payments. For example, your card agreement may say, "If your payment arrives more than ten days late two times within a six-month period, the penalty rate will apply."
An introductory APR. A different rate will apply after the introductory rate expires.
A delayed APR. A different rate will apply in the future. For example, a card may advertise that there is "no interest until next March." Look for the APR that will be in effect after March.
If you carry over a part of your balance from month to month, even a small difference in the APR can make a big difference in how much you will pay over a year.
Fixed vs. variable APR
Some credit cards are "fixed rate"--the APR doesn't change, or at least doesn't change often. Even the APR on a "fixed rate" credit card can change over time. However, the credit card company must tell you before increasing the fixed APR.
Other credit cards are "variable rate"--the APR changes from time to time. The rate is usually tied to another interest rate, such as the prime rate or the Treasury bill rate. If the other rate changes, the rate on your card may change, too. Look for information on the credit card application and in the credit card agreement to see how often your card's APR may change (the agreement is like a contract--it lists the terms and conditions for using your credit card).
If you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).
If you expect to use your card to get cash advances, you'll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards charge a higher APR for cash advances than for purchases.
What are the APRs?
The annual percentage rate--APR--is the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest rate as a yearly rate.
Multiple APRs
A single credit card may have several APRs:
One APR for purchases, another for cash advances, and yet another for balance transfers. The APRs for cash advances and balance transfers often are higher than the APR for purchases (for example, 14% for purchases, 18% for cash advances, and 19% for balance transfers).
Tiered APRs. Different rates are applied to different levels of the outstanding balance (for example, 16% on balances of $1-$500 and 17% on balances above $500).
A penalty APR. The APR may increase if you are late in making payments. For example, your card agreement may say, "If your payment arrives more than ten days late two times within a six-month period, the penalty rate will apply."
An introductory APR. A different rate will apply after the introductory rate expires.
A delayed APR. A different rate will apply in the future. For example, a card may advertise that there is "no interest until next March." Look for the APR that will be in effect after March.
If you carry over a part of your balance from month to month, even a small difference in the APR can make a big difference in how much you will pay over a year.
Fixed vs. variable APR
Some credit cards are "fixed rate"--the APR doesn't change, or at least doesn't change often. Even the APR on a "fixed rate" credit card can change over time. However, the credit card company must tell you before increasing the fixed APR.
Other credit cards are "variable rate"--the APR changes from time to time. The rate is usually tied to another interest rate, such as the prime rate or the Treasury bill rate. If the other rate changes, the rate on your card may change, too. Look for information on the credit card application and in the credit card agreement to see how often your card's APR may change (the agreement is like a contract--it lists the terms and conditions for using your credit card).
Credit Card Logos For Your Website
If you own or operate a website in conjunction with your business, consider posting a Visa logo, or even Visa / Master Card logos on your website. Visitors browsing the site will be more apt to linger and shop when they know you offer the convenience of buying on credit cards.
To display Visa or Master Card logos on your site, you will need to apply for a merchant account. This is a special account set up by a financial lender that allows you to accept credit payments via credit and debit cards at your point of sale. For website owners, this is a terrific way to get customers to buy now and pay immediately to avoid the risk of losing a sale or late payment. While some website operators simply have customers dial a toll-free telephone number to make automated purchases, more and more vendors are choosing to open a merchant account to facilitate customer sales online.
It's easy to apply for a merchant account so you can use visa and credit card logos on your website. Simply work with Merchant-Account-Quotes.com so they may find the best merchant account provider for you. Many are merchant service providers are waiting to accept and approve your application. When approved, you can start promoting the fact that you now accept credit payments by posting a prominent ad for a Visa logo or combination Visa and Master Card logos. Customers are conditioned for this uniform display, and they will be looking for it when they visit your site.
Make it easy for visitors to find the Visa and Master Card logos. Place them in an prominent area of your website. Depending on your site layout, this area for credit card logos might be somewhere near the top or side navigation bar. Or you might want to put the logos at the bottom of the page if the page is not terribly long, and if you are reasonably sure customers will read to the end and thus find the Visa and Master Card logos.
Another way to promote this service is to feature it in a box somewhere at the side of the home page, or on each page of the site. It shouldn't be too large, as though a Visa or Master Card logo were the most important detail of the page. But neither should it be too small, where many hurried customers could easily overlook it. When copying it onto your website page, check before making it live to ensure the graphic image is clear and well defined. A sloppy credit card logo can be a total turnoff for customers in search of professional vendors.
Adding Visa and Master Card logos to your company's website marks you as someone who cares about customers' needs and technologically competent. Find out how you can add these credit card logos to better enable your business to conduct e-commerce while observing contemporary payment trends. Your customers will appreciate the courtesy of credit payment options, and may show their gratitude through repeat business or positive word-of-mouth referrals.
To display Visa or Master Card logos on your site, you will need to apply for a merchant account. This is a special account set up by a financial lender that allows you to accept credit payments via credit and debit cards at your point of sale. For website owners, this is a terrific way to get customers to buy now and pay immediately to avoid the risk of losing a sale or late payment. While some website operators simply have customers dial a toll-free telephone number to make automated purchases, more and more vendors are choosing to open a merchant account to facilitate customer sales online.
It's easy to apply for a merchant account so you can use visa and credit card logos on your website. Simply work with Merchant-Account-Quotes.com so they may find the best merchant account provider for you. Many are merchant service providers are waiting to accept and approve your application. When approved, you can start promoting the fact that you now accept credit payments by posting a prominent ad for a Visa logo or combination Visa and Master Card logos. Customers are conditioned for this uniform display, and they will be looking for it when they visit your site.
Make it easy for visitors to find the Visa and Master Card logos. Place them in an prominent area of your website. Depending on your site layout, this area for credit card logos might be somewhere near the top or side navigation bar. Or you might want to put the logos at the bottom of the page if the page is not terribly long, and if you are reasonably sure customers will read to the end and thus find the Visa and Master Card logos.
Another way to promote this service is to feature it in a box somewhere at the side of the home page, or on each page of the site. It shouldn't be too large, as though a Visa or Master Card logo were the most important detail of the page. But neither should it be too small, where many hurried customers could easily overlook it. When copying it onto your website page, check before making it live to ensure the graphic image is clear and well defined. A sloppy credit card logo can be a total turnoff for customers in search of professional vendors.
Adding Visa and Master Card logos to your company's website marks you as someone who cares about customers' needs and technologically competent. Find out how you can add these credit card logos to better enable your business to conduct e-commerce while observing contemporary payment trends. Your customers will appreciate the courtesy of credit payment options, and may show their gratitude through repeat business or positive word-of-mouth referrals.
Minimum Monthly Credit Card Payments On The Rise
It is estimated that more than 40% of Americans carry a revolving balance on at least one credit card. This is an enormous number, and it is caused primarily by the security people feel in making minimum monthly payments. When you charge money to your credit card, you are only required to make a small monthly payment to keep the debt from entering into collections, which means that a purchase made in 1995 might still be carried on a credit card in 2006.
Under pressure from the U.S. government, banks are increasing the minimum monthly payments. This can mean both good news and bad news for consumers, though it is supposed to be designed to assist cardholders with paying off debt.
In the recent past, minimum monthly payments have been between 2% and 3% of the total balance owed on the card. This means that 97-98% does not immediately have to be paid, and the balance continues to accrue interest as time goes on. Since some credit card APR's number between 12% and 20%, consumers are paying off debt over several years.
Federal regulators say that by increasing minimum monthly payments, consumers will pay off their debts faster and spend far less in interest payments. In addition to the rise in monthly minimum payments, credit card companies will also have to include a Public Service warning on all bills stating that paying off debt faster will result in lower interest payments.
For consumers that count on low minimum payments this change might be devastating. It will make it more difficult (rather than less) to get out of debt, and many accounts may be entered into collections. For consumers who can afford the increase, however, they will find that they pay less in interest rates and get out of debt much faster.
This might also help consumers with their purchases. If you frugally determine your spending practices based on your budget, you'll be less likely to purchase things for which you cannot afford the higher monthly payment. This will result in better spending practices and less debt.
To deal with this new increase, most financial institutions are allocating money that will help to cover defaulting cardholders. They are also cognizant of the fact that they might have to negotiate with cardholders to lower interest rates so that they can afford to pay off their debts. If you are concerned about affording the minimum payment, you are encouraged to call the financial institution to discuss your options.
How to Handle the Increase
Examine Your Budget. Take a careful look at what you can pay each month, and work around it. Spend less on eating out or entertainment until you can significantly lower the balance on your credit card(s).
Talk to a Credit Counselor. Credit counseling can help you learn how to manage your debt and can increase your awareness of spending with credit cards. You might also receive valuable advice for dealing with creditors.
Set Personal Limits. Consumers who are used to spending with credit cards may find it difficult to stop. Put your credit cards where they are not readily accessible, and determine for yourself what qualifies as a credit card need. Perhaps you'll only use credit cards for bills or for emergencies. Set those limits for yourself.
Under pressure from the U.S. government, banks are increasing the minimum monthly payments. This can mean both good news and bad news for consumers, though it is supposed to be designed to assist cardholders with paying off debt.
In the recent past, minimum monthly payments have been between 2% and 3% of the total balance owed on the card. This means that 97-98% does not immediately have to be paid, and the balance continues to accrue interest as time goes on. Since some credit card APR's number between 12% and 20%, consumers are paying off debt over several years.
Federal regulators say that by increasing minimum monthly payments, consumers will pay off their debts faster and spend far less in interest payments. In addition to the rise in monthly minimum payments, credit card companies will also have to include a Public Service warning on all bills stating that paying off debt faster will result in lower interest payments.
For consumers that count on low minimum payments this change might be devastating. It will make it more difficult (rather than less) to get out of debt, and many accounts may be entered into collections. For consumers who can afford the increase, however, they will find that they pay less in interest rates and get out of debt much faster.
This might also help consumers with their purchases. If you frugally determine your spending practices based on your budget, you'll be less likely to purchase things for which you cannot afford the higher monthly payment. This will result in better spending practices and less debt.
To deal with this new increase, most financial institutions are allocating money that will help to cover defaulting cardholders. They are also cognizant of the fact that they might have to negotiate with cardholders to lower interest rates so that they can afford to pay off their debts. If you are concerned about affording the minimum payment, you are encouraged to call the financial institution to discuss your options.
How to Handle the Increase
Examine Your Budget. Take a careful look at what you can pay each month, and work around it. Spend less on eating out or entertainment until you can significantly lower the balance on your credit card(s).
Talk to a Credit Counselor. Credit counseling can help you learn how to manage your debt and can increase your awareness of spending with credit cards. You might also receive valuable advice for dealing with creditors.
Set Personal Limits. Consumers who are used to spending with credit cards may find it difficult to stop. Put your credit cards where they are not readily accessible, and determine for yourself what qualifies as a credit card need. Perhaps you'll only use credit cards for bills or for emergencies. Set those limits for yourself.
Credit Card Terms And Conditions - A Closer Look
It's sad but today most credit card companies are devious and they've designed everything possible into the fine print of their terms of service to catch you. Therefore, when looking at any credit card offer, make sure you take a close look at the fine print.
Believe me, I am fully aware that it's purposely put together to appear like a maze, but because it's so vitally important to your financial well-being and with the current trend towards "relatively" easier-to-read summary boxes you no longer have a legitimate excuse for ignoring the terms of service.
That being said, I've outlined a few of the key aspects to look for that are normally "hidden" away in the fine print of most credit card offers.
The Annual Fee
Although it's not as common as it once was, it's still around. Especially, on the so-called higher status Gold and Platinum cards which still tend to charge much higher fees than the "basic" credit card. Annual fees are simply an easy way to get another $39.95 to $79.95 or more from each and every customer. It may not sound like much but it adds up when you've got millions of customers. If you give the company a call you can normally get it waived and if they won't then don't take out the card or cancel the one you've got - it's the principle of it.
Late Payment Fees and Penalty Charges
Cash advance fees, late payment charges and exceeding your credit limit are the types of fees you need to pay attention to when checking out the fine print. Many cards have unjustifiably high fees and if they do you shouldn't sign up for them. Just say no!
Calculating Interest
Because it's so hard to understand (they make it that way on purpose) this is often one of the most overlooked, yet important aspects hidden away in the fine print. There are basically three methods being used to calculate interest on your balances.
Adjusted Balance
Not as common as it once was but some companies are still using it. In a nutshell, you are charged interest on whatever your balance was on the day the company sent you the bill.
Previous Balance
Basically, this method is simply a horse of a different color. In this version you are charged interest on your balance as it stood at the end of the previous billing cycle regardless of how much you've spent or paid off since. Some consider this a tad bit easier to understand.
Average Daily Balance
Last but certainly not least. This method is currently the most common and it's also the most complicated. Using this method your balance is added up at the end of each day in the billing cycle, it's then divided by number of days that have transpired in that billing cycle and interest is charged in this amount. I know, clear as mud.
If your balance jumps around this method may be slightly better for you than the other methods because it keeps you from paying full interest on a balance that just happened to be large on the billing date.
You should also be paying attention to the monthly rate of interest rather than just relying on the APR. APR is an estimate of the total cost of borrowing but it's the monthly interest plus the various fees and charge that will show you exactly how much you are paying.
Grace Period
This is extremely important for about 40% of all credit card holders because that's the approximate number of people who pay off their balances each month. It's also important for the remaining 60% because then you can avoid interest on new purchases for the first 30 days or so. As a result, make sure that the card you're looking at has a grace period on purchases; otherwise, you could end up being charged interest from the moment you buy something. On the other hand, virtually no credit card company offers a card with a grace period on cash advances or credit card checks.
Currency Conversion Fees
This only applies if you plan on using a card outside the country. If it does apply to you, take a look at what you'll be charged for transactions made in other currencies. Some cards are much more expensive than others.
This article may be reproduced only in its entirety.
Believe me, I am fully aware that it's purposely put together to appear like a maze, but because it's so vitally important to your financial well-being and with the current trend towards "relatively" easier-to-read summary boxes you no longer have a legitimate excuse for ignoring the terms of service.
That being said, I've outlined a few of the key aspects to look for that are normally "hidden" away in the fine print of most credit card offers.
The Annual Fee
Although it's not as common as it once was, it's still around. Especially, on the so-called higher status Gold and Platinum cards which still tend to charge much higher fees than the "basic" credit card. Annual fees are simply an easy way to get another $39.95 to $79.95 or more from each and every customer. It may not sound like much but it adds up when you've got millions of customers. If you give the company a call you can normally get it waived and if they won't then don't take out the card or cancel the one you've got - it's the principle of it.
Late Payment Fees and Penalty Charges
Cash advance fees, late payment charges and exceeding your credit limit are the types of fees you need to pay attention to when checking out the fine print. Many cards have unjustifiably high fees and if they do you shouldn't sign up for them. Just say no!
Calculating Interest
Because it's so hard to understand (they make it that way on purpose) this is often one of the most overlooked, yet important aspects hidden away in the fine print. There are basically three methods being used to calculate interest on your balances.
Adjusted Balance
Not as common as it once was but some companies are still using it. In a nutshell, you are charged interest on whatever your balance was on the day the company sent you the bill.
Previous Balance
Basically, this method is simply a horse of a different color. In this version you are charged interest on your balance as it stood at the end of the previous billing cycle regardless of how much you've spent or paid off since. Some consider this a tad bit easier to understand.
Average Daily Balance
Last but certainly not least. This method is currently the most common and it's also the most complicated. Using this method your balance is added up at the end of each day in the billing cycle, it's then divided by number of days that have transpired in that billing cycle and interest is charged in this amount. I know, clear as mud.
If your balance jumps around this method may be slightly better for you than the other methods because it keeps you from paying full interest on a balance that just happened to be large on the billing date.
You should also be paying attention to the monthly rate of interest rather than just relying on the APR. APR is an estimate of the total cost of borrowing but it's the monthly interest plus the various fees and charge that will show you exactly how much you are paying.
Grace Period
This is extremely important for about 40% of all credit card holders because that's the approximate number of people who pay off their balances each month. It's also important for the remaining 60% because then you can avoid interest on new purchases for the first 30 days or so. As a result, make sure that the card you're looking at has a grace period on purchases; otherwise, you could end up being charged interest from the moment you buy something. On the other hand, virtually no credit card company offers a card with a grace period on cash advances or credit card checks.
Currency Conversion Fees
This only applies if you plan on using a card outside the country. If it does apply to you, take a look at what you'll be charged for transactions made in other currencies. Some cards are much more expensive than others.
This article may be reproduced only in its entirety.
Maximizing Credit Card Rewards
In their quest to get you to sign up for their credit card, banks and financial institutions are coming up with more and higher incentives to entice you. Frequent flyer miles gave way to gas miles which opened the door for cash rebates and reward points to be used at 'our fine member merchants'. When most other things are equal (APR, annual fees, fees for transfers et al), the style of reward points and how you can make use of them can be the deciding factor in which card you choose to put in your wallet.
One of your best options for a credit card these days is one of the current crops that offer higher rewards/rebates for purchases made in gas stations, convenience stores and supermarkets. These so-called 'everyday purchases' are the market that credit card companies want to capture. That's why the big push to highlight the convenience of using a credit card for things like grocery shopping - a great way to keep track of your purchases, they point out - gasoline purchases and other everyday incidentals. In order to get you to do that, they're offering rewards and cash back on those purchases that are higher than those for other purchases.
Take a look at American Express' credit card offering, Blue Cash. The card offers a 0% introductory APR for the first six months. After that, the APR is from 11.2% to 16.2% depending on your credit report. There is no annual fee, no fee for balance transfers, and the APR for balance transfers is 4.99% for the life of the balance. Already, it's looking like a very nice deal.
Add in, however, the cash back rewards program, and you have a credit card that can actually SAVE you money. If you pay off your balance in full every month on time, there is NO INTEREST for 20 days on any of your purchases. The Rewards program offers you 1% back on all your 'everyday purchases' up to the first $6,500 you pay for with your card. In addition, you'll get .5% on all other purchases that you charge on your card. If you charge more than $6,500 on your American Express Blue Cash card, your cash rebate goes up to 5% on everyday purchases and 1% on all others.
How does that stack up? If you've budgeted $125 per week for groceries, that's $6,500 for the year. Pay for that on your Blue Cash card AND PAY THE BILL WITHIN THE GRACE PERIOD, and you'll save $65 on groceries for the year. If you stick to that, and also pay for your gasoline with your Blue Cash card, you'll get 5% back of those purchases - since your grocery purchases alone put you into the 5% bracket. If you gas up to the tune of $40 a week, that's another $104 in savings over the year.
Granted, taking full advantage of that sort of Cash back rewards program requires discipline and forethought - but it's not as hard as it sounds. It just means thinking of your credit card as just another bill that you pay in full each month. And that, after all, is the best and most common advice that financial experts give.
One of your best options for a credit card these days is one of the current crops that offer higher rewards/rebates for purchases made in gas stations, convenience stores and supermarkets. These so-called 'everyday purchases' are the market that credit card companies want to capture. That's why the big push to highlight the convenience of using a credit card for things like grocery shopping - a great way to keep track of your purchases, they point out - gasoline purchases and other everyday incidentals. In order to get you to do that, they're offering rewards and cash back on those purchases that are higher than those for other purchases.
Take a look at American Express' credit card offering, Blue Cash. The card offers a 0% introductory APR for the first six months. After that, the APR is from 11.2% to 16.2% depending on your credit report. There is no annual fee, no fee for balance transfers, and the APR for balance transfers is 4.99% for the life of the balance. Already, it's looking like a very nice deal.
Add in, however, the cash back rewards program, and you have a credit card that can actually SAVE you money. If you pay off your balance in full every month on time, there is NO INTEREST for 20 days on any of your purchases. The Rewards program offers you 1% back on all your 'everyday purchases' up to the first $6,500 you pay for with your card. In addition, you'll get .5% on all other purchases that you charge on your card. If you charge more than $6,500 on your American Express Blue Cash card, your cash rebate goes up to 5% on everyday purchases and 1% on all others.
How does that stack up? If you've budgeted $125 per week for groceries, that's $6,500 for the year. Pay for that on your Blue Cash card AND PAY THE BILL WITHIN THE GRACE PERIOD, and you'll save $65 on groceries for the year. If you stick to that, and also pay for your gasoline with your Blue Cash card, you'll get 5% back of those purchases - since your grocery purchases alone put you into the 5% bracket. If you gas up to the tune of $40 a week, that's another $104 in savings over the year.
Granted, taking full advantage of that sort of Cash back rewards program requires discipline and forethought - but it's not as hard as it sounds. It just means thinking of your credit card as just another bill that you pay in full each month. And that, after all, is the best and most common advice that financial experts give.
Ways You Can Avoid Costly Credit Card Late Fees
Credit card late fees are a fact of life for some consumers, but they don't have to be for you. Legally, credit card companies can hit you with pretty much whatever fees they want. On the other hand, you don't have to pay them, but only if you avoid them in the first place. Here are five sure fire ways you can avoid costly credit card late fees:
1. Pay Before the Due Date. Of course, this makes the most sense. However, this is also the single most important reason why people get socked with fees: they receive their bill and immediately forget about it! When you get your bill, open it up and pay it promptly. Waiting means forgetting and forgetting about your credit card bill will cost you money.
2. Pay on the Internet. If you have access to a computer, then paying online is the best way to make certain that your payment gets to your credit card provider on time. Be careful, as there is still some lag time from when you authorize funds to be released from your checking account and when that payment is finally credited to your credit card account. The gap between the two can be as long as one week!
3. Schedule Automatic Payments. Some credit card providers allow for you to set up a scheduled deduction from your checking account which is then automatically sent to your credit card provider. You should set it up to take money out of your account well before the due date to ensure that your funds are received on time. You can always send in a separate, extra payment if you want to pay down your debt faster too.
4. Question a Late Payment. Even if the credit card company claims that your payment was late, it doesn't mean that you must be charged a late fee. Contact the company and ask them to reverse their charge -- which usually runs between $29 and $39 -- and to expunge their records of your tardiness. You not only want to avoid any fees, you want to avoid their possible notification of your lateness to the three major credit report agencies [Experian, TransUnion, and Equifax]. Any information supplied to the credit reporting agencies can work against you in the form of higher interest rates on current cards as well as on future loans!
5. Go with the Citi Simplicity Credit Card. Now, consumers have a new option to help them avoid late fees: Citi's new Citi Simplicity card doesn't charge late fees. Please click the link below for more information about this breakthrough card.
Taking the appropriate action can help you to avoid late fees and allow for you to keep more of your money in your pocket. Become better informed and start saving money today!
1. Pay Before the Due Date. Of course, this makes the most sense. However, this is also the single most important reason why people get socked with fees: they receive their bill and immediately forget about it! When you get your bill, open it up and pay it promptly. Waiting means forgetting and forgetting about your credit card bill will cost you money.
2. Pay on the Internet. If you have access to a computer, then paying online is the best way to make certain that your payment gets to your credit card provider on time. Be careful, as there is still some lag time from when you authorize funds to be released from your checking account and when that payment is finally credited to your credit card account. The gap between the two can be as long as one week!
3. Schedule Automatic Payments. Some credit card providers allow for you to set up a scheduled deduction from your checking account which is then automatically sent to your credit card provider. You should set it up to take money out of your account well before the due date to ensure that your funds are received on time. You can always send in a separate, extra payment if you want to pay down your debt faster too.
4. Question a Late Payment. Even if the credit card company claims that your payment was late, it doesn't mean that you must be charged a late fee. Contact the company and ask them to reverse their charge -- which usually runs between $29 and $39 -- and to expunge their records of your tardiness. You not only want to avoid any fees, you want to avoid their possible notification of your lateness to the three major credit report agencies [Experian, TransUnion, and Equifax]. Any information supplied to the credit reporting agencies can work against you in the form of higher interest rates on current cards as well as on future loans!
5. Go with the Citi Simplicity Credit Card. Now, consumers have a new option to help them avoid late fees: Citi's new Citi Simplicity card doesn't charge late fees. Please click the link below for more information about this breakthrough card.
Taking the appropriate action can help you to avoid late fees and allow for you to keep more of your money in your pocket. Become better informed and start saving money today!
Practical Credit Card Debt Solutions
Improving your financial status and becoming free of debt usually only requires practicality on your part. When you learn to become responsible and practical in your use of credit cards, then you would not have had immense debt problems to begin with. However, you can apply the same level of practicality when it comes to paying off or settling debts.
A few companies offer debt elimination programs but you need not jump right into it. You need to consider whether you will end up paying more than you could afford. However, if it saves you time and stress while also reducing the interest rate placed on your debts, then it would make great sense. There are steps that you can take yourself to advance toward your effort of becoming free of any credit card debt.
1. Set a specific time frame for your debt elimination.
Before you determine how much you are going to pay for your debt settlement on a monthly basis, you must come up with a specific time period first. Say for example, you are paying the minimum monthly payment for your debts, which means that you would end up paying your debt for another 5 or 10 years. If you want to shorten the payment period, then you can opt increasing your monthly payments if you do not want to extend your payment period.
2. Be flexible with your debt elimination campaign.
In the middle of paying off your debts, it is not unlikely that some people with encounter financial emergencies. Therefore, it is best to opt for a credit company that allow flexibility or changes in your payment options when these cases should arise. Find a flexible debt payment plan that make room for such changes.
3. Determine your source of cash for purposes outside debt settlement.
There are a few credit company that unable you to have access to your own money during emergency cases. Therefore, make this an important determiner when you look for a debt relief program. When you encounter financial emergencies, the inaccessibility of ready cash bring about more financial stress. Look for a debt settlement plan that will have extra funds available when such emergencies occur in the middle of working towards your goal to eliminate credit card debt.
4. Evaluate its impact on your credit rating.
There are a few debt settlement methods that can impact your credit rating, so you have to find one that will help eliminate any of your existing credit card debts without necessarily hurting your credit status. If there are any negative marks that could tend to pull down your FICO score, look for other alternatives that could make your FICO score quickly increase. Whether it is making on-time payments or paying double the minimum monthly payments, you need to talk with your credit company to not just free yourself of any debts but also to boost your credit rating.
5. Look into associated fees and charges.
Although some credit card debt elimination programs are offered for free, most are charged service. It is therefore important that you understand how much such services cost before you commit on your involvement with them. Some of the most common fees are upfront fees or attorney fees and some other processing charges. If there are any hidden fees, try to talk them out. The idea here is obvious: you are trying to lift off any financial burden and having your credit company charge you with huge amounts would not help at all.
Learning how to work your way around such negotiations involved with settling off credit card debts could help you be debt-free and regain better control over your finances.
A few companies offer debt elimination programs but you need not jump right into it. You need to consider whether you will end up paying more than you could afford. However, if it saves you time and stress while also reducing the interest rate placed on your debts, then it would make great sense. There are steps that you can take yourself to advance toward your effort of becoming free of any credit card debt.
1. Set a specific time frame for your debt elimination.
Before you determine how much you are going to pay for your debt settlement on a monthly basis, you must come up with a specific time period first. Say for example, you are paying the minimum monthly payment for your debts, which means that you would end up paying your debt for another 5 or 10 years. If you want to shorten the payment period, then you can opt increasing your monthly payments if you do not want to extend your payment period.
2. Be flexible with your debt elimination campaign.
In the middle of paying off your debts, it is not unlikely that some people with encounter financial emergencies. Therefore, it is best to opt for a credit company that allow flexibility or changes in your payment options when these cases should arise. Find a flexible debt payment plan that make room for such changes.
3. Determine your source of cash for purposes outside debt settlement.
There are a few credit company that unable you to have access to your own money during emergency cases. Therefore, make this an important determiner when you look for a debt relief program. When you encounter financial emergencies, the inaccessibility of ready cash bring about more financial stress. Look for a debt settlement plan that will have extra funds available when such emergencies occur in the middle of working towards your goal to eliminate credit card debt.
4. Evaluate its impact on your credit rating.
There are a few debt settlement methods that can impact your credit rating, so you have to find one that will help eliminate any of your existing credit card debts without necessarily hurting your credit status. If there are any negative marks that could tend to pull down your FICO score, look for other alternatives that could make your FICO score quickly increase. Whether it is making on-time payments or paying double the minimum monthly payments, you need to talk with your credit company to not just free yourself of any debts but also to boost your credit rating.
5. Look into associated fees and charges.
Although some credit card debt elimination programs are offered for free, most are charged service. It is therefore important that you understand how much such services cost before you commit on your involvement with them. Some of the most common fees are upfront fees or attorney fees and some other processing charges. If there are any hidden fees, try to talk them out. The idea here is obvious: you are trying to lift off any financial burden and having your credit company charge you with huge amounts would not help at all.
Learning how to work your way around such negotiations involved with settling off credit card debts could help you be debt-free and regain better control over your finances.
Inside Out Credit Card Management
When the economy or personal issues and problems result in a high credit card debt, we often find our debt spread over three or four or more cards. So you may have a Visa, several MasterCards, a Discover card and a Capital One card and maybe many more each carrying several thousands of dollars of debt. The result is an ugly parade of bills from each company each needing a minimum payment that pays the interest and takes just a small amount off of your debt.
If it seems that the debt mountain never seems to go down, that's not an illusion. The situation is not designed to help you get that debt down. It's a cruel mixed message the credit industry sends us because if you have high credit card debt, your credit rating goes down. But even if you have too much debt, the credit card companies just keep raising your credit ceiling and sending more and more credit card offers to lure you into more debt.
The instinct is to keep taking out more accounts and transferring money to those deceptive zero percent offers that expire in a matter of months and leave you with yet another bill to pay that only makes managing that debt even more impossible. If you do get a little money ahead, the instinct is also to pay more down on the debts that have the highest interest rates to try to slow the erosion of your finances due to high rates.
But there is another approach to handling this debt that goes completely opposite your instincts and gives more control to you to begin seeing headway against those debts. But to use this approach, you will have to think with your head, not your emotions and not panic but think about how to get as much principle paid down as possible. This inside out approach to paying down your credit cards is simple and gives you a roadmap to freedom from debt.
First of all, stop taking out more accounts. That only gives another credit card company access to your money. They can charge you membership fees and try to lure you with credit insurance. If you have three or more credit resources already, that's plenty.
Second, use short term offers wisely. If one of your existing accounts offers you a zero percent deal for a few months, take it but transfer a small amount to that account. Then you can focus on paying off that transferred amount and see 100% of your payment go against principle which is the fastest way out of debt.
Third, pick a card and pay it off. It might be the card with the lowest balance which is one you might give the least to so you can respond to the higher level debts. But if you pay that card off, that is one less bill coming in each month and it gives you a great feeling to know you are slowly killing off the monster of credit card debt one card at time.
That brings us to the cornerstone of the inside out method. Instead of paying on the card with the highest interest rate, pay them the minimum payment and put your excess funds against the cards with the lowest rate. In this way you are getting the most bang for your buck with the small amount of extra funds you may have to pay on the debt. That debt will go down more quickly and then you can attack the bigger accounts and begin to whittle away at them too. And by using a smart approach to the credit card debt you have, you take control of the problem and put it on a program to go away. And that will be the greatest feeling of them all.
If it seems that the debt mountain never seems to go down, that's not an illusion. The situation is not designed to help you get that debt down. It's a cruel mixed message the credit industry sends us because if you have high credit card debt, your credit rating goes down. But even if you have too much debt, the credit card companies just keep raising your credit ceiling and sending more and more credit card offers to lure you into more debt.
The instinct is to keep taking out more accounts and transferring money to those deceptive zero percent offers that expire in a matter of months and leave you with yet another bill to pay that only makes managing that debt even more impossible. If you do get a little money ahead, the instinct is also to pay more down on the debts that have the highest interest rates to try to slow the erosion of your finances due to high rates.
But there is another approach to handling this debt that goes completely opposite your instincts and gives more control to you to begin seeing headway against those debts. But to use this approach, you will have to think with your head, not your emotions and not panic but think about how to get as much principle paid down as possible. This inside out approach to paying down your credit cards is simple and gives you a roadmap to freedom from debt.
First of all, stop taking out more accounts. That only gives another credit card company access to your money. They can charge you membership fees and try to lure you with credit insurance. If you have three or more credit resources already, that's plenty.
Second, use short term offers wisely. If one of your existing accounts offers you a zero percent deal for a few months, take it but transfer a small amount to that account. Then you can focus on paying off that transferred amount and see 100% of your payment go against principle which is the fastest way out of debt.
Third, pick a card and pay it off. It might be the card with the lowest balance which is one you might give the least to so you can respond to the higher level debts. But if you pay that card off, that is one less bill coming in each month and it gives you a great feeling to know you are slowly killing off the monster of credit card debt one card at time.
That brings us to the cornerstone of the inside out method. Instead of paying on the card with the highest interest rate, pay them the minimum payment and put your excess funds against the cards with the lowest rate. In this way you are getting the most bang for your buck with the small amount of extra funds you may have to pay on the debt. That debt will go down more quickly and then you can attack the bigger accounts and begin to whittle away at them too. And by using a smart approach to the credit card debt you have, you take control of the problem and put it on a program to go away. And that will be the greatest feeling of them all.
Thursday, May 9, 2013
Don't Turn Debt Consolidation into Your Next Credit Issues
Debt consolidation is a process to combine all your high interest rate into single and lower interest rate monthly payment. It has been used by many debtors to plan for a debt relief. Commonly, a debt consolidation will be accompanied by a debt consolidation loan. The debt consolidation loan will be used to payoff all your high interest debts and you just need to focus on single monthly payment to clear the debt consolidation loan. Hence debt consolidation with a debt consolidation loan will help to make your debts more manageable to achieve your debt relief goal.
After paying off your debts with the debt consolidation loan, your credit cards balance will go to zero and now you have the maximum credit limit for usage. The dangerous part is if your do not control the uses of your credit card and continue to use them to pay for your purchases and use to pay minimum payment on your credit card balances, you will be trapped into another debt issue soon or later.
You are working hard to go through the debt consolidation process and manage to get a debt consolidation loan to clear all debts, don't let yourself fall back into the hot water and struggling to get rid of debt again. Things that you can do to avoid it from happening are:
1. Change Your Spending Behavior
If you tend to buy items spontaneously, you are an impulse buyer. Impulse buying behavior may cause you to spend out of your budget. Hence, you much change your spending behavior to avoid new debts added to you, else you effort to consolidation your debts and plan for a debt free will be a waste because new debts will snowballing to a serious debt issue if you not control it and you soon will again trap into another financial crisis. To avoid any impulse purchase, you should plan your shopping list and just buy the items in the list.
2. Make A Budget Plan
Budget Plan is an important in financial management, it enables your to have controlled on you money, know where your money will go and how much will be on each spending. You much include your debt consolidation loan repayment into your budget plan so that you have allocated budget for loan repayment. If you projected spending in your budget plan exceed your allocated budget, you need to cut away all the optional expenses such as entertainment, luxury vacations or downgrade your life style, for example if you use to buy branded cloth and shoes, you may now go for cheaper options so that you control your spending within your budget.
3. Avoid Swiping Your Credit Card
Paying with electronic money such as credit card is easy and convenient. And because of these advantages, it may cause you to over spend and not aware about it until you receive the credit card statement. Hence, avoid using your credit card again. Cancel most of your credit card could you a wise decision. You can leave one or two credit cards for emergency uses.
4. Make Full Payment On Credit Card Balance
If you can't stop using your credit card but you think that you can control swiping it just to buy items in your budget plan. Then, you must commit to yourself to pay full payment on your credit card balance each month. By paying in full on your credit card balance, you save yourself in added new debts to your account.
In Summary
Debt consolidation is a debt solution that can get you out of debt, in contrary it can lead you to trap into second debt problem. Hence, you need to accompany debt consolidation with a proper money management to ensure your debt issue resolve.
After paying off your debts with the debt consolidation loan, your credit cards balance will go to zero and now you have the maximum credit limit for usage. The dangerous part is if your do not control the uses of your credit card and continue to use them to pay for your purchases and use to pay minimum payment on your credit card balances, you will be trapped into another debt issue soon or later.
You are working hard to go through the debt consolidation process and manage to get a debt consolidation loan to clear all debts, don't let yourself fall back into the hot water and struggling to get rid of debt again. Things that you can do to avoid it from happening are:
1. Change Your Spending Behavior
If you tend to buy items spontaneously, you are an impulse buyer. Impulse buying behavior may cause you to spend out of your budget. Hence, you much change your spending behavior to avoid new debts added to you, else you effort to consolidation your debts and plan for a debt free will be a waste because new debts will snowballing to a serious debt issue if you not control it and you soon will again trap into another financial crisis. To avoid any impulse purchase, you should plan your shopping list and just buy the items in the list.
2. Make A Budget Plan
Budget Plan is an important in financial management, it enables your to have controlled on you money, know where your money will go and how much will be on each spending. You much include your debt consolidation loan repayment into your budget plan so that you have allocated budget for loan repayment. If you projected spending in your budget plan exceed your allocated budget, you need to cut away all the optional expenses such as entertainment, luxury vacations or downgrade your life style, for example if you use to buy branded cloth and shoes, you may now go for cheaper options so that you control your spending within your budget.
3. Avoid Swiping Your Credit Card
Paying with electronic money such as credit card is easy and convenient. And because of these advantages, it may cause you to over spend and not aware about it until you receive the credit card statement. Hence, avoid using your credit card again. Cancel most of your credit card could you a wise decision. You can leave one or two credit cards for emergency uses.
4. Make Full Payment On Credit Card Balance
If you can't stop using your credit card but you think that you can control swiping it just to buy items in your budget plan. Then, you must commit to yourself to pay full payment on your credit card balance each month. By paying in full on your credit card balance, you save yourself in added new debts to your account.
In Summary
Debt consolidation is a debt solution that can get you out of debt, in contrary it can lead you to trap into second debt problem. Hence, you need to accompany debt consolidation with a proper money management to ensure your debt issue resolve.
How to Spot Credit Repair Scams And Correct Your Credit History Yourself
Millions of Americans are suffering from huge mortgage payment delinquencies and credit card debt. The two go hand in hand and are mainly the result of mortgage lenders loaning money to people that had no business getting a loan.
Many of these people are thousands of dollars in debt and looking at foreclosures and bankruptcy. This is when the scammers will jump in and try to prey on these victims.
You will start to see an increase in ads like these:
"Credit Problems? No Problem!"
"Erase Bad Credit! 100% Guaranteed!"
"Remove Bankruptcy and Liens From Your Credit File!
If you're looking for a way out of your credit problems, don't believe promises like these! All this will do is get you much deeper in debt. Don't believe the quick-fixes advertised by these guys.
There's a brisk business among so-called "credit repair" companies that charge from $50 to more than $1,000 to "fix" your credit report. In many cases, these outfits take your money and do little or nothing to improve your credit report. Often, they just vanish.
There are no quick or easy cures for a poor credit history. If a credit repair company promises you it can clean up your credit report, remember the following:
- your credit history is maintained by private companies called credit bureaus that collect information reported to them by banks, mortgage companies, department stores, and other creditors;
- these credit bureaus can legally report accurate negative credit information for seven years and bankruptcy information for ten years;
- accurate items that are within the seven (or ten) year reporting period cannot be erased from your credit record by companies advertising "credit repair" services;
- if you have a poor credit history - even if your past problems were due to illness or unemployment - time is the only thing that will heal your credit report;
- the only information in your credit report that can be changed are items that are actually wrong or beyond the seven (or ten) year reporting period;
- if there are genuine mistakes or outdated items in your report, you can fix them yourself.
In fact, you can do anything a credit repair company can do for free or for only a few dollars.
You can do this yourself by getting your credit report, creating a budget and sticking to it, and maybe even seeking some credit counseling. If you do a little searching, I am sure that you can find counseling for free.
Getting out of debt won't happen overnight. It will take time and perseverance. Hang in there and you will be able to dig yourself out of the foreclosure and bankruptcy hole.
Many of these people are thousands of dollars in debt and looking at foreclosures and bankruptcy. This is when the scammers will jump in and try to prey on these victims.
You will start to see an increase in ads like these:
"Credit Problems? No Problem!"
"Erase Bad Credit! 100% Guaranteed!"
"Remove Bankruptcy and Liens From Your Credit File!
If you're looking for a way out of your credit problems, don't believe promises like these! All this will do is get you much deeper in debt. Don't believe the quick-fixes advertised by these guys.
There's a brisk business among so-called "credit repair" companies that charge from $50 to more than $1,000 to "fix" your credit report. In many cases, these outfits take your money and do little or nothing to improve your credit report. Often, they just vanish.
There are no quick or easy cures for a poor credit history. If a credit repair company promises you it can clean up your credit report, remember the following:
- your credit history is maintained by private companies called credit bureaus that collect information reported to them by banks, mortgage companies, department stores, and other creditors;
- these credit bureaus can legally report accurate negative credit information for seven years and bankruptcy information for ten years;
- accurate items that are within the seven (or ten) year reporting period cannot be erased from your credit record by companies advertising "credit repair" services;
- if you have a poor credit history - even if your past problems were due to illness or unemployment - time is the only thing that will heal your credit report;
- the only information in your credit report that can be changed are items that are actually wrong or beyond the seven (or ten) year reporting period;
- if there are genuine mistakes or outdated items in your report, you can fix them yourself.
In fact, you can do anything a credit repair company can do for free or for only a few dollars.
You can do this yourself by getting your credit report, creating a budget and sticking to it, and maybe even seeking some credit counseling. If you do a little searching, I am sure that you can find counseling for free.
Getting out of debt won't happen overnight. It will take time and perseverance. Hang in there and you will be able to dig yourself out of the foreclosure and bankruptcy hole.
Using a Business Credit Card to Take Control of Your Business
A business credit card can be a great way to take control of you business and ensure your business stays financially secure while still moving forward and growing. The trick is knowing how to use a business card to help make your business a success rather than a failure.
Consolidating Debt
Once of the great aspects of business credit cards is that you can keep all of your business expenditures on just one card. This makes it easier to keep track of what you have spent on your business when it comes to paying taxes. In addition, receiving a monthly bill helps you see just how much money you are spending on your business each month. This ability to monitor expenditures makes it simpler for you to make modifications as necessary. In addition, most business credit cards provide end of the year summaries that make it much easier for you to analyze your annual expenses.
Many business credit cards also provide special introductory offers with low APRs. Some even waive balance transfer fees, making it possible for you to transfer all of you business expenses from other credit cards on to one card. The lower APR can save you money a great deal of money in the long run, particularly if you are unable to pay the bill in full at the end of each billing cycle.
Investing in the Future
A business credit card provides you with a revolving line of credit that makes it easier for you to expand your business whenever necessary. Many business owners, particularly those that are just starting out, need to have money available to them quickly. After all, the only way to grow a business is to invest in it. A business credit card allows you to bypass long loan application processes, thereby making it possible for you to make investments quickly and keep the momentum rolling in the growth of your business.
Look Professional
With business credit cards, you can often get your company logo in addition to its name on the card. There is no doubt this makes your business look more professional. A business credit card is a sign that you are an established, serious business. In addition, just using a business credit card is a great way of marketing your business. As cashiers see your business logo and name, word slowly spreads about your business. It's one of the easiest marketing strategies you can utilize!
Perks of Business Credit Cards
Many business credit cards provide extra perks that are nice to have as a business owner. Take the time to compare business credit cards to discover what each has to offer and whether or not the benefits are helpful for you and your business. For example, some provide special travel benefits to business cardholders. But, if you do not need to travel frequently for your business, this benefit may not be too attractive. On the other hand, some business credit cards provide discounts at certain office supply stores. If you frequently purchase office supplies for you business, this benefit could potentially save you a great deal of money. Of course, be sure the business credit card you get provides discounts to a store you actually use. Otherwise, you are once again failing to take full advantage of your business credit card.
If you take the time to compare business credit cards, you are guaranteed to find one that offers benefits or rewards programs that will be beneficial to you and to your business. Make sure you weigh all of the benefits and stipulations, including APRs, annual fees, rewards programs, and other perks before deciding on which business credit card is best for you.
Consolidating Debt
Once of the great aspects of business credit cards is that you can keep all of your business expenditures on just one card. This makes it easier to keep track of what you have spent on your business when it comes to paying taxes. In addition, receiving a monthly bill helps you see just how much money you are spending on your business each month. This ability to monitor expenditures makes it simpler for you to make modifications as necessary. In addition, most business credit cards provide end of the year summaries that make it much easier for you to analyze your annual expenses.
Many business credit cards also provide special introductory offers with low APRs. Some even waive balance transfer fees, making it possible for you to transfer all of you business expenses from other credit cards on to one card. The lower APR can save you money a great deal of money in the long run, particularly if you are unable to pay the bill in full at the end of each billing cycle.
Investing in the Future
A business credit card provides you with a revolving line of credit that makes it easier for you to expand your business whenever necessary. Many business owners, particularly those that are just starting out, need to have money available to them quickly. After all, the only way to grow a business is to invest in it. A business credit card allows you to bypass long loan application processes, thereby making it possible for you to make investments quickly and keep the momentum rolling in the growth of your business.
Look Professional
With business credit cards, you can often get your company logo in addition to its name on the card. There is no doubt this makes your business look more professional. A business credit card is a sign that you are an established, serious business. In addition, just using a business credit card is a great way of marketing your business. As cashiers see your business logo and name, word slowly spreads about your business. It's one of the easiest marketing strategies you can utilize!
Perks of Business Credit Cards
Many business credit cards provide extra perks that are nice to have as a business owner. Take the time to compare business credit cards to discover what each has to offer and whether or not the benefits are helpful for you and your business. For example, some provide special travel benefits to business cardholders. But, if you do not need to travel frequently for your business, this benefit may not be too attractive. On the other hand, some business credit cards provide discounts at certain office supply stores. If you frequently purchase office supplies for you business, this benefit could potentially save you a great deal of money. Of course, be sure the business credit card you get provides discounts to a store you actually use. Otherwise, you are once again failing to take full advantage of your business credit card.
If you take the time to compare business credit cards, you are guaranteed to find one that offers benefits or rewards programs that will be beneficial to you and to your business. Make sure you weigh all of the benefits and stipulations, including APRs, annual fees, rewards programs, and other perks before deciding on which business credit card is best for you.
Small Business Credit Card - The Good, the Bad and The Ugly
A small business credit card can help your company in many ways but of course, there is a downside if you do not know what to expect from your credit card company. Many people jump right in and apply for small business credit cards, get approved and start charging before they even read over the terms and conditions, that can be a very big mistake. However, a small business credit card can also benefit your company in several ways with great rewards and introductory offers.
Small business credit cards can be very efficient, providing you with consolidated yearly statements of your company's expense charges and aids in preventing employees from overspending. With a small business credit card, you will be able to use one single payment method and monitor your monthly billing statements. This will give you a list of all the expenses and you will be able to learn just what your company really needs to spend on a monthly basis and how to budget more wisely. You will be able to give your employees their own small business credit card for your company with a pre-set limit. This will ensure that they do not spend more than you have allotted for their department, but giving them a sense of trust for purchasing items that are needed.
On the downside, a small business credit card is still a credit card, and any overspending or unnecessary charges on your part or your employees can damage your credit rating. With a credit card, no matter what kind it may be there is a tendency to overspend unless you have a pre-set limit and pay off your balance on a monthly basis. If you carry a balance, then you will of course be paying interest on the balance. If you did not apply for a small business credit card with a low interest rate, you may find yourself going in debt more than you had planned.
If you do not make your payments on time, this will be reported to the credit bureaus. Usually this does not affect your personal credit rating but it can do some damage to your company's credit and then you may find that some companies may not wish to do business with your company.
No matter what you decide regarding a small business credit card, be sure that you find the proper credit card that suits your company with a pre-set limit for spending for your employees. If you are on an introductory offer be sure you know when it will change and what happens afterwards. If you have a 0% interest rate and it will change in 6 months, be sure you know what the new interest rate will be. This can save your company quite a bit of money and yourself many headaches.
Small business credit cards can be very efficient, providing you with consolidated yearly statements of your company's expense charges and aids in preventing employees from overspending. With a small business credit card, you will be able to use one single payment method and monitor your monthly billing statements. This will give you a list of all the expenses and you will be able to learn just what your company really needs to spend on a monthly basis and how to budget more wisely. You will be able to give your employees their own small business credit card for your company with a pre-set limit. This will ensure that they do not spend more than you have allotted for their department, but giving them a sense of trust for purchasing items that are needed.
On the downside, a small business credit card is still a credit card, and any overspending or unnecessary charges on your part or your employees can damage your credit rating. With a credit card, no matter what kind it may be there is a tendency to overspend unless you have a pre-set limit and pay off your balance on a monthly basis. If you carry a balance, then you will of course be paying interest on the balance. If you did not apply for a small business credit card with a low interest rate, you may find yourself going in debt more than you had planned.
If you do not make your payments on time, this will be reported to the credit bureaus. Usually this does not affect your personal credit rating but it can do some damage to your company's credit and then you may find that some companies may not wish to do business with your company.
No matter what you decide regarding a small business credit card, be sure that you find the proper credit card that suits your company with a pre-set limit for spending for your employees. If you are on an introductory offer be sure you know when it will change and what happens afterwards. If you have a 0% interest rate and it will change in 6 months, be sure you know what the new interest rate will be. This can save your company quite a bit of money and yourself many headaches.
Credit Card Applications - Getting Approved After Refusal
It can be disheartening when you apply for a credit card and get turned down. However, in the vast majority of cases, it really is not anything that you need to worry about. While there are some people out there who would be approved for virtually everything they could think of applying for, for the vast majority of us, applying for a credit card can take a little time and some trial and error.
Credit card providers generally have pretty strict criteria that they are looking for from applicants when they launch a new credit card. They will be targeting the card at a specific segment of the market and will have a credit score range that they are seeking from applicants. If you do not fall within this score range, you will not be in their target range and will be refused the card. But this does not mean that you will not be successful when you apply for another credit card that is targeting your section of the market. And it is important not to take the rejection to heart.
Determining Your Credit Score
You may feel that you are trustworthy and always pay your bills and that you should not be turned down for credit, but remember that credit approval is no longer a personal exercise but is by and large automated and subject to computer credit checks and the like. A computer will look at your credit score and give a yes or no answer, and no individual attention will be paid personally to your application at all. It is a necessary way of running the system for lenders who have literally thousands of clients and applications to manage as efficiently as possible.
The Next Step After Rejection
If you are refused for credit, then apply to a couple more companies. You should try not to rush the process and apply for one card at a time. You usually receive your answer within a couple of days. The reason for this is that if you apply for too much credit too quickly, it will show up on your credit report and may cause lenders to turn you down. So be patient and if possible, ask the lender why they have rejected you.
Patience is a Virtue in Credit Card Applications Too
The chances are you are simply applying for the wrong type of card, for example, if you are a student, you will really only be approved by companies that make a point of providing credit cards to students and most other will reject you as a matter of course. So by a little patience, and taking the time to make your application to a credit card company that targets the segment of the market that you fit into, you should be able to get your hands on a credit card before too long.
Credit card providers generally have pretty strict criteria that they are looking for from applicants when they launch a new credit card. They will be targeting the card at a specific segment of the market and will have a credit score range that they are seeking from applicants. If you do not fall within this score range, you will not be in their target range and will be refused the card. But this does not mean that you will not be successful when you apply for another credit card that is targeting your section of the market. And it is important not to take the rejection to heart.
Determining Your Credit Score
You may feel that you are trustworthy and always pay your bills and that you should not be turned down for credit, but remember that credit approval is no longer a personal exercise but is by and large automated and subject to computer credit checks and the like. A computer will look at your credit score and give a yes or no answer, and no individual attention will be paid personally to your application at all. It is a necessary way of running the system for lenders who have literally thousands of clients and applications to manage as efficiently as possible.
The Next Step After Rejection
If you are refused for credit, then apply to a couple more companies. You should try not to rush the process and apply for one card at a time. You usually receive your answer within a couple of days. The reason for this is that if you apply for too much credit too quickly, it will show up on your credit report and may cause lenders to turn you down. So be patient and if possible, ask the lender why they have rejected you.
Patience is a Virtue in Credit Card Applications Too
The chances are you are simply applying for the wrong type of card, for example, if you are a student, you will really only be approved by companies that make a point of providing credit cards to students and most other will reject you as a matter of course. So by a little patience, and taking the time to make your application to a credit card company that targets the segment of the market that you fit into, you should be able to get your hands on a credit card before too long.
Tuesday, May 7, 2013
Credit Card Customer Service Roundup
When determining which credit card company is right for you, it's important to consider everything the credit card company has to offer. Equally as important as a low APR or advanced security features is the credit card company's customer service.
Because most consumers overlook customer service until it's too late, we made calls to the top five credit card companies (American Express, Bank of America, Chase, Citibank, and Discover), then ranked them on how well they met the following customer service benchmarks:
Helpful Web sites. First we visited their sites to see how user-friendly they were, and whether toll-free phone numbers were easy to find.
Knowledge of agents. We asked three advanced credit card questions (security features, 0% APR availability, and debt consolidation features), then rated their responses.
Helpfulness of agents. Finally, we assessed our general sense of treatment as valued customers, which went into an overall rating of each company's customer service.
American Express
TIME TO 800 NUMBER: Less than two minutes.
HELPFULNESS OF AGENTS: When we got through, we talked to a helpful and professional representative. Even their automated voice system woman who greets you when you first pick up is very concise and polite, as far as robot ladies go.
KNOWLEDGE OF AGENTS: The customer service representative spoke confidently about their 0% APR cards for select customers, as well as low APR cards and offers. The only question the agent was not able to answer was about credit card debt consolidation features. However, Amex did provide direct and concise information for all other questions we asked.
OVERALL IMPRESSION: The service rep was clear and not pushy (albeit mechanical), and let us know that someone is available to help further at their toll-free number, 24/7.
Bank of America
TIME TO 800 NUMBER: Less than two minutes.
HELPFULNESS OF AGENTS: We called the main number and went through ten button-presses before being connected to a live human (though admittedly some of those keypresses were out of confusion). Some of the steps were obsolete and frustrating -- for example, selecting to respond by voice or by hitting a key. On one occasion, a poorly-timed sneeze caused us to have to go back in the menu. When finally connected to a "Bank On Call Specialist," it was clear that, though thorough, the gentleman on the other end was in as little mood to be friendly as we were by this point.
KNOWLEDGE OF AGENTS: When asking about the basic security features the card offered, the rep responded by mentioning the "Safe-card" feature that generates random numbers each time the card is used, instead of a traceable account number that "could potentially be stolen." We playfully replied, "That's got to be a good feature if you're up to no good." He did not find this funny. Even after saying "That was a joke," the Bank On Call Specialist didn't even give up a pity-snicker.
OVERALL IMPRESSION: Operating out of Los Angeles, the Bank of America 800-number is not 24/7 like some of the others, but does operate late and on weekends. (Please note, however, that this information was given by the service rep in person; meanwhile, the Bank of America Web site proudly boasts 24/7 customer service representatives on call. We didn't bother calling back 23 times to figure out which it really is.)
Citibank
TIME TO 800 NUMBER: Less than a minute; quick and easy.
HELPFULNESS OF AGENTS: With but one button-press after calling, you are speaking to a live operator. We spoke to a good-humored gentleman who, though having to transfer us to the "application department" to answer general questions, laughed genuinely at the response "Okay, super-duper" when he asked us to briefly hold. (Customer service reps who don't hate their jobs always reflect well on the company.) He transferred me to a female agent who was equally well-tempered, and the whole ordeal was genuine and friendly.
KNOWLEDGE OF AGENTS: They promptly filled me in on topics like rewards card bonuses and low APR credit cards. Citibank seems to handle issues like stolen credit cards with sensitivity and care, and they assured me that "Identity Theft Specialists" handle any potential issues one-on-one.
OVERALL IMPRESSION: Citibank agents seem particularly user-friendly in times of crises. Also, Citibank's customer service hotline is available 24 hours.
Chase
TIME TO 800 NUMBER: Less than two minutes; one click from homepage. A little overwhelming were the various numbers to call based on topic, but the list was explained and labeled.
HELPFULNESS OF AGENTS: After a few selection menus and a reasonable amount of holding time, we got through to a professional (if somewhat dry) customer service representative. Also, right on the Web site was the information that cardholders can receive 24 hour automated services by phone, or live representatives from 7:00 a.m.-9:00 p.m. daily.
KNOWLEDGE OF AGENTS: The agent answered questions about 0% APR and low APR cards generically, promising only that "select customers" are eligible.
OVERALL IMPRESSION: We left feeling that Chase dictates who is deemed "eligible" for certain offers the way the cool kids at high school decide who sits together at lunch. (Just a feeling.) The exchange is professional and void of hullabaloo, if not otherwise robotic and monotone.
Discover
TIME TO 800 NUMBER: It took but a moment to locate the phone number (listed in the style of Chase's Web site, only minus the visual chaos).
HELPFULNESS OF AGENTS: Once calling this 24/7 live-operator (and automatic-optional) service number, it was only seconds before being connected. The customer service representative was the sweetest and not-in-a-fake-way of all the credit card companies we tested.
KNOWLEDGE OF AGENTS: The agent answered all questions with specifics, and plenty of pertinent information (security issues, costs, eligibility for special offers, etc.). Additionally, many of the offers seemed to far surpass the competition: for example, 0% fraud liability on the spot, and more-than-fair graces towards simple customer errors or lapses.
OVERALL IMPRESSION: Both for the information and the manner in which it was delivered, the taste left in our mouth was all sweet and no-parts bitter.
Summary
We ranked the top five credit card companies on customer service (American Express, Bank of America, Chase, Citibank, and Discover), and here are our final results.
#5: Bank of America. Though offering the standard services, and having a widespread name and corporate recognition, the actual customer service perhaps suffers at the hand of being such a titanic operation. It's difficult to find information on the Web site (at least, information that agrees with their live operators), and the personal care touch is gone. Perhaps Bank of America outsourced their customer service operation. Outsourced it to Mars.
#4: Chase. Although adequate, Chase has every one of those small-annoyance features that are frustrating to customers: limited information about APR and the like until agreeing to apply; hold time with crummy music; a slightly confusing Web site; dull and/or mechanical service representative interaction; and limited hours of live person availability. are all attributes that prevent Chase from boasting wonderful customer services. Not really a pain-in-the-neck customer service system, Chase is just average. Not bad bad, but not great.
#3: American Express. American Express does the job. No bells and whistles, but a well-rounded customer service department, with enough features to leave us generally satisfied. The rep made a card recommendation for me after only a few questions, and after further talking it turned out to be a good analysis. American Express's customer service skills are much like the aesthetics of the card itself: not the most brilliant gold color, but definitely still gold.
#2: Citibank. Great customer service. It's nice to report that there was almost a tie for first place rather than a tie for last place, and in this case Citibank should be proud of that close call. Nice clear Web site directory, one-touch access to a live person, and interactions with human beings who made it clear they didn't hate working for Citibank at all. Agents told us about great featured bonuses for customers, but not in a way that made us feel pressured. Wonderful customer service upkeep, Citibank!
#1: Discover. Who knew it really pays to DiscoverTrademark? Aside from offering the easiest, most practical perks (regular 5% cash back on purchases made at restaurants, gas stations, etc., as well as comprehensive security and credit rating services), the interactions with the Discover folks make you feel valued and respected. Be it hospitality or above-and-beyond professionalism, the general response we had after interacting with Discover is that we want to move to where Discover is headquartered, then raise our families and send our kids to school there. Talking to a credit card company's customer service line rarely leaves you feeling so warm and fuzzy.
We hope our credit card customer service roundup is helpful, but as always your mileage may vary. The best way to find out is to call yourself. Good luck finding those 800-numbers, though!
Because most consumers overlook customer service until it's too late, we made calls to the top five credit card companies (American Express, Bank of America, Chase, Citibank, and Discover), then ranked them on how well they met the following customer service benchmarks:
Helpful Web sites. First we visited their sites to see how user-friendly they were, and whether toll-free phone numbers were easy to find.
Knowledge of agents. We asked three advanced credit card questions (security features, 0% APR availability, and debt consolidation features), then rated their responses.
Helpfulness of agents. Finally, we assessed our general sense of treatment as valued customers, which went into an overall rating of each company's customer service.
American Express
TIME TO 800 NUMBER: Less than two minutes.
HELPFULNESS OF AGENTS: When we got through, we talked to a helpful and professional representative. Even their automated voice system woman who greets you when you first pick up is very concise and polite, as far as robot ladies go.
KNOWLEDGE OF AGENTS: The customer service representative spoke confidently about their 0% APR cards for select customers, as well as low APR cards and offers. The only question the agent was not able to answer was about credit card debt consolidation features. However, Amex did provide direct and concise information for all other questions we asked.
OVERALL IMPRESSION: The service rep was clear and not pushy (albeit mechanical), and let us know that someone is available to help further at their toll-free number, 24/7.
Bank of America
TIME TO 800 NUMBER: Less than two minutes.
HELPFULNESS OF AGENTS: We called the main number and went through ten button-presses before being connected to a live human (though admittedly some of those keypresses were out of confusion). Some of the steps were obsolete and frustrating -- for example, selecting to respond by voice or by hitting a key. On one occasion, a poorly-timed sneeze caused us to have to go back in the menu. When finally connected to a "Bank On Call Specialist," it was clear that, though thorough, the gentleman on the other end was in as little mood to be friendly as we were by this point.
KNOWLEDGE OF AGENTS: When asking about the basic security features the card offered, the rep responded by mentioning the "Safe-card" feature that generates random numbers each time the card is used, instead of a traceable account number that "could potentially be stolen." We playfully replied, "That's got to be a good feature if you're up to no good." He did not find this funny. Even after saying "That was a joke," the Bank On Call Specialist didn't even give up a pity-snicker.
OVERALL IMPRESSION: Operating out of Los Angeles, the Bank of America 800-number is not 24/7 like some of the others, but does operate late and on weekends. (Please note, however, that this information was given by the service rep in person; meanwhile, the Bank of America Web site proudly boasts 24/7 customer service representatives on call. We didn't bother calling back 23 times to figure out which it really is.)
Citibank
TIME TO 800 NUMBER: Less than a minute; quick and easy.
HELPFULNESS OF AGENTS: With but one button-press after calling, you are speaking to a live operator. We spoke to a good-humored gentleman who, though having to transfer us to the "application department" to answer general questions, laughed genuinely at the response "Okay, super-duper" when he asked us to briefly hold. (Customer service reps who don't hate their jobs always reflect well on the company.) He transferred me to a female agent who was equally well-tempered, and the whole ordeal was genuine and friendly.
KNOWLEDGE OF AGENTS: They promptly filled me in on topics like rewards card bonuses and low APR credit cards. Citibank seems to handle issues like stolen credit cards with sensitivity and care, and they assured me that "Identity Theft Specialists" handle any potential issues one-on-one.
OVERALL IMPRESSION: Citibank agents seem particularly user-friendly in times of crises. Also, Citibank's customer service hotline is available 24 hours.
Chase
TIME TO 800 NUMBER: Less than two minutes; one click from homepage. A little overwhelming were the various numbers to call based on topic, but the list was explained and labeled.
HELPFULNESS OF AGENTS: After a few selection menus and a reasonable amount of holding time, we got through to a professional (if somewhat dry) customer service representative. Also, right on the Web site was the information that cardholders can receive 24 hour automated services by phone, or live representatives from 7:00 a.m.-9:00 p.m. daily.
KNOWLEDGE OF AGENTS: The agent answered questions about 0% APR and low APR cards generically, promising only that "select customers" are eligible.
OVERALL IMPRESSION: We left feeling that Chase dictates who is deemed "eligible" for certain offers the way the cool kids at high school decide who sits together at lunch. (Just a feeling.) The exchange is professional and void of hullabaloo, if not otherwise robotic and monotone.
Discover
TIME TO 800 NUMBER: It took but a moment to locate the phone number (listed in the style of Chase's Web site, only minus the visual chaos).
HELPFULNESS OF AGENTS: Once calling this 24/7 live-operator (and automatic-optional) service number, it was only seconds before being connected. The customer service representative was the sweetest and not-in-a-fake-way of all the credit card companies we tested.
KNOWLEDGE OF AGENTS: The agent answered all questions with specifics, and plenty of pertinent information (security issues, costs, eligibility for special offers, etc.). Additionally, many of the offers seemed to far surpass the competition: for example, 0% fraud liability on the spot, and more-than-fair graces towards simple customer errors or lapses.
OVERALL IMPRESSION: Both for the information and the manner in which it was delivered, the taste left in our mouth was all sweet and no-parts bitter.
Summary
We ranked the top five credit card companies on customer service (American Express, Bank of America, Chase, Citibank, and Discover), and here are our final results.
#5: Bank of America. Though offering the standard services, and having a widespread name and corporate recognition, the actual customer service perhaps suffers at the hand of being such a titanic operation. It's difficult to find information on the Web site (at least, information that agrees with their live operators), and the personal care touch is gone. Perhaps Bank of America outsourced their customer service operation. Outsourced it to Mars.
#4: Chase. Although adequate, Chase has every one of those small-annoyance features that are frustrating to customers: limited information about APR and the like until agreeing to apply; hold time with crummy music; a slightly confusing Web site; dull and/or mechanical service representative interaction; and limited hours of live person availability. are all attributes that prevent Chase from boasting wonderful customer services. Not really a pain-in-the-neck customer service system, Chase is just average. Not bad bad, but not great.
#3: American Express. American Express does the job. No bells and whistles, but a well-rounded customer service department, with enough features to leave us generally satisfied. The rep made a card recommendation for me after only a few questions, and after further talking it turned out to be a good analysis. American Express's customer service skills are much like the aesthetics of the card itself: not the most brilliant gold color, but definitely still gold.
#2: Citibank. Great customer service. It's nice to report that there was almost a tie for first place rather than a tie for last place, and in this case Citibank should be proud of that close call. Nice clear Web site directory, one-touch access to a live person, and interactions with human beings who made it clear they didn't hate working for Citibank at all. Agents told us about great featured bonuses for customers, but not in a way that made us feel pressured. Wonderful customer service upkeep, Citibank!
#1: Discover. Who knew it really pays to DiscoverTrademark? Aside from offering the easiest, most practical perks (regular 5% cash back on purchases made at restaurants, gas stations, etc., as well as comprehensive security and credit rating services), the interactions with the Discover folks make you feel valued and respected. Be it hospitality or above-and-beyond professionalism, the general response we had after interacting with Discover is that we want to move to where Discover is headquartered, then raise our families and send our kids to school there. Talking to a credit card company's customer service line rarely leaves you feeling so warm and fuzzy.
We hope our credit card customer service roundup is helpful, but as always your mileage may vary. The best way to find out is to call yourself. Good luck finding those 800-numbers, though!
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