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  • What Are The Best Credit Cards To Have For Students?

    College students are over-eager to have credit cards, not just as a funding source but as an alternative to cash. Unfortunately, a lot of college students cannot fall back on a reliable source of income, but having no income does not make them stop short of having a million and one requirements.

    You may want to check out our student credit card offers as well.

    Do banks consider students as credit worthy?

    Banks and credit card companies do not want to know about your needs, they only want to know if you are worth risking their money on. And no one in his/her proper financial senses would consider a student with no source of income to repay the credit as worthy of risking their money on, right? Wrong! If that would be the case, no bank would ever come up with credit cards especially meant for students. There are lots of student-focused credit cards and almost all of the popular credit card companies and major banks have provisions for issuing credit cards to students. The terms may be different and the credit limits may be lower than what one would like, but the possibility still exists.

    What are the best credit cards to have for students?

    If you are a student and wondering what are the best credit cards to have, then you need to know that there are many choices for you. You can choose from unsecured, prepaid, and secured credit cards. But before you can choose one of them, you need to know a bit about each one. Only then can you get an informed answer to your doubt about what are the best credit cards to have?

    Secured credit cards

    A secured credit card offers you credit against some kind of security. If your parent/guardian has a bank account, then you need not worry. The bank where your parent or guardian has an account can issue a secured credit card to you against the security of the money/fixed deposit that your parent or guardian has maintained here.

    Unsecured credit cards

    Banks and major credit card associations are ready to provide unsecured credit cards to students as well. These credit cards typically have limited or lower credit limits when compared to regular credit cards. Some of the most popular cards in this category also pamper the students with lots of rewards and bonuses. For example, if the bills are paid on time some card companies offer a 25% reward. Some companies have entirely taken off the annual membership charges and some others provide 1% to 5% cash back on all purchases.

    Prepaid credit cards

    As is obvious from the name, these credit cards only offer a credit limit that matches the amount of cash that you have prepaid / loaded on the card. So basically it works like a prepaid phone card, and you get to spend only as much money as you have prepaid to the credit card company.

    Though it does not offer any credit advantage, this card is very beneficial as an alternative source of cash. Furthermore, you do not run the risk of over-spending or incurring unwanted fees.

  • Do Banks Make Any Profit On 0 Introductory APR Credit Card Offers?

    You might be already aware that 0 introductory APR credit card denotes a credit card that charges 0 % interest rates/APR. It is hard for credit card consumers to not know about these cards because there is so much of effort initiated to market, promote, and sell these cards by banks and credit card companies.

    At the outset, 0 % interest does seem to be a very exciting offer, but if not carefully handled, the 0 introductory APR credit card may turn out to be much costlier than you bargained for.

    Click here to compare 0 introductory APR credit card offers

    How do banks make money with 0 introductory APR credit card?

    How can banks make any profit from selling a 0 introductory APR credit card, and if they are not making any profit out of the sales, why are they so enthusiastic about promoting these cards to every customer with a good credit score? Though it seems at the outset that there is no profit to be made on a 0 % APR, the actual fact is different.

    Banks make a lot of profit on these 0 % APR cards and there are various ways in which they make their margin.

    Profit from new purchases

    Though the marketing and promotional activities make it look like the 0 introductory APR credit card charges 0% interest on all kinds of transactions on the credit card, the real truth is usually hidden behind a tiny asterisk.

    When you check the footnote that explains more about the asterisk, you will know that the 0% interest applies ONLY to certain transactions. In all probability, the 0 % interest rate is applicable only for balance transfers and this offer, too, is restricted to new customers only.

    If you overlook the asterisk and terms and conditions by mistake and then go ahead and use the card for new purchases, the bank immediately makes a profit by charging higher APR on this transaction. It may be only after you check the bill next month that you bother to get more info about the terms and conditions and by that time you have already made 1 or more purchases.

    Profit from delayed payments

    Another important condition that applies to the 0 % interest rates on a 0 introductory APR credit card is the duration or validity of the offer. Usually the 0 % APR interest rates offers are commonly valid only for 12- 18 months. If you forget about the expiry date of the offer and carry the balance beyond this date, all of the remaining balance will be charged higher rates of interest. This is another way for banks to make a profit on the 0 introductory APR credit card.

    A 0 introductory APR credit card is the best kind of offer that any credit card user can ever get. What more could you ask for than enjoying credit for free? But it is your responsibility to make sure that you are totally informed about the terms and conditions and fine print before you sign up.

  • Credit Card For Good Credit

    Obtaining a credit card for good credit maybe a dream for many credit card users, because majority of them have credit scores languishing somewhere between poor and average. With rising debts, job layoffs, and an overall bleak financial outlook, having and maintaining a good credit score has becoming increasingly difficult. But that should not deter us from trying to learn tricks and tips to boost our credit scores. All the trouble taken will be worth your while when you get approved.

    As a starting point, you may want to compare credit card offers at DontSpendMore.com.

    How to build good credit even without a credit card

    Not everyone knows that good credit can be established even without a credit card to begin with. You credit score is a rating of your overall credit worthiness and this takes in to consideration all kinds of credit transactions like bank loans, car loans, mortgage loans, and even monthly utility bills. If you want to build good credit, you can take up a secured bank loan.

    Inner workings of secured bank loans

    A secured bank loan is a financial arrangement where the bank offers you a loan against some sort of security (or collateral). This security is usually an asset like property, gold, valuables or even your car. The criterion is that the market value of the asset that you provide as security is more (or near) than the value of the loan offered to you. Many factors will be taken in to account while valuating the monetary value of your asset like depreciation over time and life of your car etc.

    Secured bank loans against fixed deposits

    If you do not want to go through the hoops to get a credit card for good credit, you can also opt for a secured loan against a fixed deposit. Most of the banks will extend loans that are equal or slightly lesser in value than the amount of money that you have kept as fixed deposit in the same branch of the bank.

    So if you want to build a good credit reputation fast, you could consider keeping at least $1,000- $2,000 as fixed deposit and then taking a secured loan. When you repay the loan in timely installments you will be building your credit reputation as well.

    The credit bureau will monitor your payment history over at least a period of six months before deciding how to rate your credit score.

    If you already have good credit (above 700), then you have nothing to worry about. Banks and credit companies will contact you with offers, but if your credit scores are not so good, then you have two choices. Either settle down for a credit card with higher rates of interest and lesser rewards or try to boost your credit score to make yourself eligible for a credit card for good credit.

  • How To Get Credit Cards By Credit Score

    Every credit card user and many of the non-users are familiar with the term ‘credit score’ and its importance in the process of getting a credit card issued. But very few people know the exact relation between the two and how to get credit cards by credit score approval.

    A quick overview of credit score

    I am tempted to give a quick overview of credit score even though you are familiar with the term, because I am sure that not everyone knows everything about it.

    There are many theoretical expressions of credit score but I prefer explaining it in simple terms. Your credit score is nothing but a summary of your credit worthiness (and a summary of your history) expressed in numbers. So it obviously means that a higher number on your credit score equals higher credit worthiness and better chances at getting credit cards by credit score ratings.

    How to know if your credit score is good, average, or bad?

    More than knowing about the theoretical definition of credit score, everyone should be fully aware of the real value of their credit score. By value I do not mean the numerical value. Instead, I am hinting at the value of the credit score in getting credit cards by credit score evaluation.

    There are some approximate ranges which can demarcate the good, bad, and the ugly credit scores. For example, credit scores between 0 and 500 are the worst of the lot because they have very poor credit worthiness and would perform the worst in any competition to obtain credit cards by credit score.

    Credit scores between 501 and 650 can be demarcated as average performers and if your credit score falls in this average range, your application for a new credit card can be expected to face a lot more denials when compared to others with a better credit score.

    Majority of the people who successfully obtain credit cards by credit score have credit scores above 700. If your credit score is higher than 650 then you can breathe easy, because even though you may not fare well when competing against credit scores of 700+, yet you have a lot of credit card options that are available for this range.

    Credit scorers of 780+ are the true super stars when it comes to classifying consumers who are trying to get credit cards by credit score. These folks have nothing to worry about getting approval. Moreover, they also are considered as the blue eyed boys (and girls) by credit card companies when they are offering special and privileged offers and rewards; not to mention low APR rates as well.

    If you know your credit score then it is easy for you to know where you stand in the rat race of credit cards by credit score. Another benefit of knowing your credit score is that you can apply for credit cards that are available for your specific credit score range. Applying to a card that has eligibility credit scores matching yours is a guaranteed way of getting approval.

  • The Ultimate Lowdown On Low Balance Credit Card

    You might have come across the term low balance credit card and wondered what they meant. Well, low balance credit card is often used to describe credit cards that apply low rates of interest on balance transfers.

    How does a low balance credit card work?

    These credit cards are designed to assist with consolidation of the debt accrued on credit cards and to help consumers cut back costs by saving on the interest difference by transferring the balance from the higher interest card to the lower interest one.

    As is obvious, a low balance credit card will carry interest rates that are quite low when compared to the regular rates and this is what makes these kinds of cards quite popular with the masses. Majority of the credit card companies prefer bringing these low levels to ground levels by offering 0% interest on balance transfers.  Most of the credit card users would do anything to get one of these cards.

    Is a low balance credit card safe to use?

    Well, the answer to this query depends on the way you decide to make use of the card. It is safe to use a low balance credit card, as long as you do not make any new purchases with this card. You must understand that the low or 0% rate of interest that come as part of the offer are applicable only to the balance transfer activity and not for any other kind of transactions done with that particular card.

    Also you must make sure of the validity of the offer and the exact duration for which the low rates of interest will be applied. If you have a balance that is quite large and impossible to pay off in full before the expiration of the low rate offer, do not opt for such cards. Any balance that extends beyond the offer period will be calculated according to regular rates of interest (which are quite high and sometimes maybe higher than your current card).

    What’s the final verdict on a low balance credit card?

    A low balance credit card can come across as a boon if you are trying to pay off your credit debt and clear out all those pending balances. But you have to be sure that you can complete the payments before the expiry date of the low interest rate offer, or else your finances could end in a soup.

    If you can manage your finances responsibly, then there is nothing better than a low balance credit card.

  • Tips And Tricks To Get Credit Cards For No Credit

    Most of the credit card companies ask for credit score or credit history before they consider your application for a new credit card. That is alright, but what will the first time credit card applicant do? How is he going to convince the credit companies to issue him credit cards for no credit? Well, it does seem a bit tough at the outset, but there has to be a solution to this problem because every credit card owner has to apply for the first time at some point.

    Check offers advertising credit cards for no credit                        

    Credit card companies commonly advertise special offers promoting credit cards for no credit. Typically, this kind of promotion is aimed at the section of the population that is known to have no credit, but is desperately in need of a credit card. The best examples of this kind are students and the younger adults who have not yet established any sort of credit reputation till date.

    Remember you do not have to pay any fees to get a credit card and there is absolutely no need to panic about your inability to get credit cards for no credit.

    Low limit credit cards for no credit

    If you have not yet received any of the offers mentioned above, then the best solution for you can be low limit credit cards for no credit. These are credit card issued by major credit card companies but have a very low amount of credit limit. The usual limit is between $150 and $300 as a starting point.

    The tip is to use these low limit credit cards for your everyday purchases. Then make it a point to pay off the outstanding dues at the earliest without holding any balance. Doing this for some time will automatically make you eligible for higher credit limits. When you manage to get between $1000-$1500 as your credit limit other credit card companies will be willing to issue credit cards to you. But remember that banks prefer credit card users who have a credit history of at least six months before they can trust you, so stick with the low limit cards until then and shrewdly use them to get regular high limit credit cards issued.

    It may be a bit difficult to get credit cards for no credit, but it is not entirely impossible. You just have to know where to look and what tricks to apply. Nowadays, credit card companies are bringing out various interesting offers for people with no credit as well.

  • Four Quick Tips To Get Low APR Credit Card Offers

    The terms low or less seem so desirable when they are being used in context of money owed to others. Maybe that is why people get all excited and happy to hear mentions of low APR credit card offers. One of the greatest benefits of flaunting a good credit score is that you get approached with many low APR credit card offers on a regular basis.

    How to get hold of low APR credit card offers?

    Ask and You Shall Receive

    Very few people know that they could get some exciting low APR credit card offers by just asking the credit card company with which they already have an account. So if you own a credit card that has high APR on it, why don’t you just try calling up the company and request for a lower rate offer?

    Credit card companies are always falling over each other to compete for the attention and admiration of customers. It is very rarely that some customer calls them up directly to ask for an offer and in all probability they will NOT just end the conversation saying no.

    Even if they may not offer you a very low rate offer, they definitely will come up something that will be better than the current rates applied to your credit card. Be sure to emphasize on your long term relationship with the credit card company and also give them a gentle reminder about your outstanding payment history.

    Apply with a new credit card company

    This step can be taken if you did not get a satisfactory offer in step 1. When you contact a new credit card company, you can mention about your current rate of interest and specify that you are looking for a better deal and wish to transfer the balance if you find suitable low APR credit card offers.

    You can also browse through our selection of low APR credit card offers.

    Check out low APR credit card offers in your mailbox

    You might have received a lot of low APR credit card offers via snail mail. Try going through those offers and check if any of them are still valid. This is the one of the best ways to make the most of these low APR credit card offers, which have been lying around in your inbox or even sent to the spam folder, since you considered them unwanted at some point of time.

    Maintain a good credit history

    This is by far the best way to get swamped with low APR credit card offers. Credit card companies are overly enthusiastic about contacting consumers with good credit with such special offers. Try paying all your monthly bills on time (not only the credit card bills but the utility, medical bills, and other bills as well) because that is the best way to prove your credibility to the credit card companies.

    Getting low APR credit card offers is one of the best things to happen to you, especially if you want to pay off some outstanding balances on your previous card which had high interest rates applied to it.

  • Few Things You Must Absolutely Know If You Have A Credit Card With Good Credit

    Every credit card user knows that it is easier to get a credit card with good credit than getting one when your credit reputation is weak.

    Many benefits for credit card with good credit

    Your credit score or reputation is an important criterion in getting a credit card issued. In addition, if your credit score is good, there are many other benefits that come knocking on your door as well.

    For instance, users who possess a credit card with good credit history are more likely to be offered lower interest rates. Such credit card holders will also find it easier to get an additional credit card issued.

    How to establish good credit?

    Considering how important it is to be labeled as a person who owns a credit card with good credit, you might want to first know about techniques and tips to establish a good credit reputation. In order to do that, you need to realize that credit reputation or score is not based only on your credit card usage alone. There are many other factors that are taken into account like your payment history for previous bank loans, mortgages, car loans or even medical bills.

    In simple words, the most effective way to establish a good credit score is to pay all your bills on time. Doing this on a consistent basis will not only establish you as a credible person, but also as someone who knows how to handle his/her finances responsibly.

    Once you manage to get this done, then you can look forward to owning a credit card with good credit reputation as well.

    Things to avoid when you have credit card with good credit

    If you already have a credit card with good credit reputation, then you should try to avoid certain things that may harm your credit score.

    One trick to stay in control is to limit your credit card usage only for necessities. Unnecessary swiping of credit cards for every trivial purchase can not only inflate your monthly credit card bills, but also runs the risk of damaging your credit score if you cannot pay the bills in full each month.

    Try your best to clear your credit card bills in full each month and on time. Many of us are too busy with our work and lives to remember paying the bills on time. Set up an automatic bill payment system by linking your bank account with your credit card bill payment to avoid this risk of missed / delayed payments.

    Owning a credit card with good credit is not only a luxury but a responsibility as well. Try to maintain your good credit by applying the tips and suggestions in this article.

  • Getting The Best Of Credit Card Promotion Rates

    We are bombarded with numerous kinds of credit card promotion offers each day. The most common of these offers are the low interest or zero interest rates. These are known better as credit card promotion rates (or promotional rates to be more accurate). What are these promotional rates and how do they affect you as a credit card user? Let us find answers to all these and more in this post today.

    Credit card promotion rates and facts

    It is obvious that the interest rates that are on offer on with these credit card promotion offers are applied only for a short time. This can be anywhere between twelve months to eighteen months at a time. Since the main goal is to use this promo offer to entice new customers, the promotional interest rates are usually reserved for new applicants only.

    But some credit card companies may choose to extend the generousness to their existing customers also. If a credit card company does this, it clearly denotes that they value their customers very much.

    Credit card promotion rates and the law

    Federal Law has made it mandatory for the credit card companies to extend any kind of promotional interest rates offers for a minimum period of six months. Usually the most preferred duration is eighteen months and since every credit company nowadays is offering at least this much, eighteen months has almost become the norm for credit card promotion interest rate offers.

    You snooze, you lose

    If you by any chance get delayed in paying your credit card bills on time, then be warned that you lose all access to these promotional interest rates. Your late payment activity will trigger the default interest rate to become active, and this is usually the highest APR rate that is applicable on your credit card.

    Credit card promotion rates only for certain transactions

    Most of the credit card promotion interest rates are applicable only to the balance transfers and not for new purchases. If you want to transfer your balance from a higher rate credit card to this new one with a promo offer, you can do it and earn the difference in interest rates as profit.

    But sometimes people have more than one balance with different rates applied to each one. This will make the situation a bit tricky to handle, yet the decision is solely based on the credit card company. It usually applies the minimum payment on the balance with the lowest interest rates.

    How to get the best of credit card promotion rates?

    If you want to get the best of credit card promo rates, you should try to pay off your balances before the offer expires. Any delay in completing the payment beyond the expiry date can lead to a huge loss for you as higher rates get automatically applied after the expiry date.

    Credit card promotion rates are actually a great way to manage your balance transfers and save a whole lot of money in the process. You just need to be quick with the payments to take maximum advantage of these offers.

  • What Is APR Interest And Why Should You Bother About It?

    If you are a credit card user you already are familiar with the term APR interest, because it might have popped up on numerous occasions, like when you received the offer or when the credit card executive was explaining the terms and conditions to you, or when you filled up the application form. And, of course, when you review your monthly statements, but do you know everything that you ought to know about this term? Even if your answer is no, you do not have to worry. This post will describe all the nuances about APR interest.

    How is regular interest calculated?

    There are two types of interests: simple and compound interest. Regular interest that banks and other lending organizations calculate is usually compound interest rates and does not include any other charges in addition to the specified interest rate.

    How is APR interest calculated?

    APR interest gets a bit more complex than the regular interest rates. There are additional charges and fees added to the compound interest and that is how APR interest rates get inflated when compared to regular interest rates.

    Why should you bother about APR interest rates?

    Well, if there is one thing you should worry about regarding credit card usage is the APR that is applicable to it. This rate will determine how much money you will have to shell out each month if you have an outstanding balance on your credit card after purchases or after a cash advance.

    Another good reason to pay heed to the APR interest applied on your credit card is to successfully manage your finances. Many credit card companies offer very low or even zero introductory APR rates to lure in new customers.

    This is the time when you should be paying a lot of attention. If you can find a credit card that offers both 0% APR on an introductory offer coupled with a long interest free period (say eighteen months) then that would be a great offer.

    If you think over it, you realize that eighteen months is a fairly long period. You can comfortably pay off small to moderate sized debts within this period, provided that there are no unpleasant surprises in between like loss of your job or some sudden unexpected financial crisis.

    Using the 0 % APR interest offer to maximum benefit

    If I were in your place with a 0% APR interest credit card that offers the interest free period for 18 months, I would use this credit card for all of my new purchases that do not cost an arm and a leg or an amount that I cannot pay back within eighteen months of time.

    But do not jump into a frenzied shopping spree with such a credit card because it is only the interest that is waived off; you still have to pay the cost and unless that is affordable you will be in a sticky mess.

    To sum it up, you absolutely have to know what you will be paying for as interest rates. It is no point snatching a good deal when you don’t factor in interest rates.