DontSpendMore.com Blog

Author: dontspendmore

  • First Timer Tips For Choosing A Credit Card

    We all are first timers at some point of our lives. So here I am with today’s post and as you might have already guessed, it is about tips for those who are choosing a credit card for the first time in their lives.

    Before applying for a credit card

    Yes, the preparation starts even before you click “apply”. There are certain criteria to be fulfilled before you can go about choosing a credit card for the first time. As a starting point, you need to be a legal resident, must have an income source and bank account, offer a stable credit history, and fulfill other requirements determined by each individual credit card company.

    If you do not have any of the above people (spouse/family members) could co-sign with you.

    Convince your bank about your eligibility

    Before choosing a credit card, you should be worrying about convincing your bank about your eligibility to apply for a credit card. The easiest way to do this is by developing a financial relationship with your bank, long before you put in your credit card application.

    Make sure that you open a checking account. Make it a point to save some money each month and also to use the debit card that the bank provides along with the account in a very responsible manner. Once you have established a reputation for a few months, you can now confidently put in your credit card application and look forward to getting it accepted soon by your bank authorities.

    Tips for choosing a credit card

    Now that you have cleared all the obstacles, you can now safely think about choosing a credit card. You need to look out for the card that best suits your financial needs and preferences. In general choosing a credit card with low APR and low (or $0) annual fee is good way to start for first timers.

    Another point to verify is the rewards or bonuses that come with your credit card. Understand the terms and conditions thoroughly before you jump at the first credit card that is marketed to you. Many first timers make the grave mistake of choosing a credit card that has the highest or the most attractive rewards.

    While rewards and bonuses are a very good thing, most often they come with certain terms and conditions. Most of the attractive rewards are tied in to a certain spending level, which you have to cross in order to get the rewards. So do not jump at the first offer, use your logic while choosing a credit card for the first time.

  • How To Find Low Rate Credit Card Offers?

    Credit cards often are a great help if you have financial difficulties but sometimes, it backfires in the form of high interest rates. However, not all credit cards have high interest rates. In fact, more credit card companies today offer low interest rates. So if you are wondering where you can get low rate credit card offers, read on and find out.

    Credit union credit cards

    Credit union credit cards are perfect if you are looking for low rate credit card offers. According to recent studies, credit union cards have significantly lower interest rates as compared to bank-issued cards. This is because credit unions are not-for-profit. Meaning, they do not have to increase interest rates to increase their revenue because they do not have to generate gains at all.

    So if you are in the search for a low interest rate credit card, consider getting a credit union credit card. It provides the same purchasing power that bank issued cards provide but with less costly interest charges.

    Introductory rate credit card offers

    Despite having the reputation of giving high interest rates, bank-issued cards actually have great things to offer as well. For instance, many credit card companies have introductory low rate credit card offers and some even have 0% interest rate offers. So if you think that the only less costly cards available are credit union cards, then you are wrong.

    However, introductory rates are only available for a limited period. For instance, 0% interest is usually only applicable during the first six to eighteen months of credit card use. Nevertheless, it is still a helpful way to save on interest charges despite having it for a while. So if you wish to get another credit card, make sure to find great deals on introductory rates.

    Build a good credit score

    Aside from credit union cards and introductory rates, you can also get low rate credit card offers from any card issuer by simply having a good credit score. Okay, maybe it is not that simple as most people only have average credit scores. However, there are things you can do to enhance your credit score.

    For instance, if you have bad credit, you can gradually improve your credit score by slowly paying off all your debt. After doing so, see to it that you never miss a payment and are always on time, you will see the difference it makes on your credit score. If it is not possible to do this, then consider getting a card, which can help you boost your credit such as prepaid credit cards. They can help you build credit because you will not have to pay bills, thus, eliminating late payments and debt as well.

    Interest charges are the most costly thing about credit cards but there are also low rate credit card offers nowadays such as 0% APR cards and credit union cards that can help you save money. Then again, the most important thing you have to remember is that interest rates do not matter at all if you simply pay your credit card bills in full every month.

  • Looking For A Credit Card With Bad Credit?

    If you have a bad credit history, then looking for a credit card might turn out to be a tough task for you. This is obviously because creditors consider you as a risk and very few creditors would like to bet their money on your bad credit history. But there is no need to get worried and all is not lost for individuals looking for a credit card with bad credit.

    Some banks help people with bad credit

    Even though it is just the exception and not the rule, there are certain banks that are willing to help people with bad credit who are looking for a credit card. You can easily find out about these banks by either reading consumer forum reviews or conducting a search online. These banks may even accept people with low credit scores like 550.

    The interest rates applied to such credit cards are also between regular ranges. If you are wondering about the catch in the story, then here it is: Since these banks take a risk when extending credit to you, they might charge you higher annual fees, more interest rates, and also levy other charges. These charges depend a lot on the extent of your bad credit, which means that you will be charged more if your credit score and history is worse when compared to others.

    Explain the reason for your bad credit

    Honesty is often rewarded and though it may seem to be unbelievable, stating reasons for your bad credit can actually help you while looking for a credit card after a blemish on your credit reports. I am not sure if you have noticed it yet, but there is a provision to add a note to your credit statements. But make sure that you do not add your entire autobiography here, because you have to get your point across in just 100 words (varies from bureau to bureau).

    These notes are supposed to be taken into consideration by those who are reviewing your credit applications when you are looking for a credit card. Everyone understands a genuine reason when they read about one. Whatever you do, please do not bluff about a reason here.

    Costly credit cards

    If nothing else works, you may have to resort to costly credit when looking for a credit card. As the informal name suggests, these cards will come to you at a higher price. Subprime credit cards are also nicknamed as fee harvesting credit cards. This is because these cards will charge you a hefty upfront fee for processing the application. New regulations, however, do regulate the overall functioning of the industry.

    If you are looking for a credit card with bad credit you may have to keep your eyes and ears open. While you may have very limited amount of choices, you can always compare between your available options to choose the cheapest of them.

  • Why You Should Grab Introductory APR Offers

    Credit card usage is very convenient and efficient, but this convenience and usefulness comes at a price. We know this price as the interest rates applied on credit cards. You have to pay interest rates on credit cards and there is no way to escape that. This is exactly one of the topmost reasons why you should grab any introductory APR rates with low to 0% APR for a fixed period of time.  But before you do that you ought to understand what APR means.

    What is introductory APR?

    Introductory APR refers to the rate of interest that is being introduced along with a new credit card. This is usually a part of the promotional activities and the aim is to make the credit card seem more attractive to the consumers. Obviously it means that the introductory rates will be different from regular rates that are applied on the credit card.

    Also, the introductory rates have to be much lower than the regular rates in order to appear attractive to the consumers, or why would they even bother checking it out?

    Usual range of introductory APR

    The most common kind of introductory APR rates that we are seeing nowadays with almost every new credit card is the 0% APR. There cannot be anything lower than this rate and that is what makes the credit card that comes with such offers seem irresistible to the masses. Others also offer 70-80% lower APR interest rates when compared to the regular rates applied on that card.

    Are introductory APR rates beneficial?

    Well, the answer to this question depends upon how you use the credit card that comes along with the introductory APR rates. You need to understand the limitations and terms and conditions that go along with the introductory rates that are usually written in fine print.

    The first limitation is that the low / nil interest rates are applicable only for a certain time period. Just because you signed up for the low introductory rates offer does not signify that those rates will stay for as long you use the card.

    No, on the contrary the introductory rates are applicable for a limited time and you will have to find when this period ends exactly, because it is usually different for different credit card companies.

    How to get the best of introductory APR rates?

    Introductory APR rates are best used for purchases. If these rates allow you six months to 1 year of interest free period/low interest period, then you should make use of this chance to make new purchases within this period. But take care to manage your repayment schedule in such a way that none of the balance is carried forward beyond the period where the introductory rates apply.

    Because if you still have some amount of outstanding amount carried forward into the regular interest rate period, you will have to pay higher rates.

    Introductory APR offers by credit card companies are a golden chance to take maximum advantage of credit cards as long as the golden interest free period reigns.

  • Quick Facts About Getting A Credit Card Approval

    Most of the people I know are desperately waiting to get a credit card, because they are looking forward to the extreme convenience that these plastic cards bring along. But things may not be so easy, and most of these credit card aspirants face a roadblock while getting a credit card approval.

    The toughest part is that some of the criteria involved in getting an approval seem to change over time. For example, a credit score of 720 was once considered excellent for getting a credit card approval. But now a score of 750 seems to be the new excellent score. So, this post is all about tips, suggestions and criteria involved in getting a credit card approval.

    Getting a credit card approval if you have a history of rejection

    Most of the credit card applications are evaluated automatically with the help of software. This may explain why a person whose credit card application has been previously rejected faces the same fate on second application. But the best part about this automatic rejection is that there is usually a specific time period for which this record is maintained. While some banks may refresh their data in two weeks, some others may also take up to three months.

    So if your credit card application was previously rejected, try not to reapply before a safe period of three months. Do not make the mistake of thinking that you can simply change banks and reapply for getting a credit card approval. This may not be a fool proof idea because many a time banks share a common credit information database and have access to all your financial history.

    Getting a credit card approval with self employment status 

    There are many people who are enjoying credit card facilities despite being self employed, and it is not a bad point at all. But credit card companies may not prefer extending credit to self employed individuals if their history reveals that this source of employment is less than a year or 6 months old.

    In short, it means that if you are self employed individual, you may have to wait for at least 1 year after starting your business, before getting a credit card approval.

    Incorrect facts hinder getting a credit card approval

    Getting a credit card approval is a sensitive process and needs close scrutiny of various financial and other background facts. If your credit card application has any crucial info missing, incomplete, incorrect or false, it will hinder your efforts at getting a credit card approval.

    You have to make sure that your application is up-to-date in all respects, before you click the submit button. Do not try to falsify information about your employment or contact address. Doing so will prove to be very detrimental in getting a getting a credit card.

    Getting a credit card approval need not be tough and worrisome if you familiarize yourself with the basic facts and realities of the credit card approval process.

  • How Can You Get Cash Back On Credit Cards Easily?

    In the earlier days, credit cards were not so popular because people preferred to pay with cash. Now, with the creation of cash back feature, credit cards have become very popular as people now use cards to earn cash back rewards.

    Every credit card purchase counts

    Well, there may be exceptions but when you go out to grab a meal or buy groceries, you usually pay with cash as you may find it embarrassing to charge bills under $20 on your credit card. Just think about all the money you get just by simply using your card and you will never feel ashamed even if you only charge a small amount.

    Credit card purchases differ on cash back rates. For your personal needs such as grocery items and medicines, cash back rates are usually high. So instead of paying with cash, whip out your credit card and earn some cash incentives. In conclusion, when wondering how can you get cash back on credit cards easily, consider going cashless while purchasing for personal needs.

    Do not limit your credit card use

    Sometimes, you might feel a bit afraid of using your credit card for every purchase. This is absolutely normal, as there is always the fear of getting a huge credit card bill. But when you look at it more closely, when you add all the cash you spent and the credit card charges you made, it is still equal to your overall expenses. Meaning, whether you often or seldom use your card, you still have to dole out practically the same amount of money for your expenses.

    So instead of limiting your credit card use, maximize your earning potential by using your credit card more often. Just think of it this way; the more you use your credit card, the more cash back rewards you get. Therefore, when asking yourself how can you get cash back on credit cards easily, remember that the key to doing it is frequent credit card use.

    Maintain a clear balance

    Technically, maintaining a clear balance is not a way to get cash back but this can easily minimize the amount of money you save. After all, the main reason why you get cash back rewards is to save money and spending hundreds of dollars on interest charges works against it. So the next time you ask yourself how can you get cash back on credit cards easily, bear in mind that even if you get cash back, you cannot actually enjoy it if you still have to pay for interest charges.

    There are many ways on how can you get cash back on credit cards, such as making purchases and even paying for bills. However, none of these will work if you do not pay on time or simply pay for the minimum amount due on your bill. Hence, the only way you can truly enjoy cash back rewards is by being a responsible credit card user.

  • Have You Applied For Your Gas Cash Card Yet?

    Many of the major outlets that retail gas are now offering a variety of discounts, rewards, and benefits to users of the new breed called gas cash card. A gas cash card can belong to either one of the two varieties.

    The first one is limited to just the specific gas retailer who provides the consumer with the gas card. The second variety is one that is provided by a specific credit card company and bears a logo. This works well with any gas retail outlet that accepts this company’s gas cash card.

    Gas cash card provided by retailers

    This type of card works only with the retailer that issued the card to you and maybe at other branches of the outlets that belong to the same chain. This card works like a normal credit card, but the only difference is that the area of usage is “limited”. Just like the normal credit cards, you will receive a monthly bill for any and all purchases that you conducted at the gas station.

    Just because it is a gas cash card, do not think that you can very well delay the payments and pay them as you wish. All delayed payments incur a late fee and you do not want any fines levied on you, do you?

    Cash withdrawal with gas cash card

    Nowadays it has become the norm to extend the facilities available of any credit card to cover more and more features. This is precisely the reason why some of these gas retailers issue gas cards that can also be used to withdraw cash. Such a dual benefit gas cash card comes armed with a PIN number which can be used as a PIN for the ATM to withdraw cash. But again don’t forget that these cards do not carry any logo, so it may not work at all ATMs. You might be provided a list of ATMs that accept these gas cards.

    Recently, you can find some cards that do offer the ability to work like traditional cards as well. The world is merging indeed and the financial industry is no exception.

    Gas cash card offered by credit card companies

    This type of gas card is better because of the obvious flexibility. You do not have to limit the usage of the card to specific gas stations or ATMs. Wherever you see a logo of the payment processing gateway mentioned on your gas card, you can freely use it to fund your purchase or even withdraw cash.

    Better convenience with gas cash card

    In general it becomes very convenient for consumers to use a gas cash credit card. These cards are a lot easier to get issued when compared to the regular credit cards. But just like the regular credit cards, there are a lot of other charges involved in using them like annual account fees, maintenance charges, and others.

    Next time, before reaching out for your wallet to pay the gas retailer in cash arm yourself with a gas cash card. It will not only take the hassle out of your gas station purchases but also help you when you need to withdraw cash on the go.

  • What Is The Best Credit Cards Application Method?

    There are only two known modes of credit card applications available today. One way is by personal application (snail mail, long wait time) and the other is an online application which pretty much gives you an instant decision. Both of them are effective and convenient ways on how to get credit cards and so determining what is the best credit cards application method is difficult to do without taking into consideration the preferences of the person applying.

    Personal application

    Long before Internet reached the masses, people got their credit cards by personally going to the bank and filling up a credit card application form. If you do not mind the lines and the hours of waiting just to get a credit card, then personal application is for you.

    Though it may seem old fashioned, personal application has its unique advantages too. For instance, if you are not Internet savvy, then personal applications can help you get your card without the risk of making errors on your application.

    You can also have the customer care executive explain to you certain aspects you do not quite get like how they come up with your interest rate or how they determine your approval.

    Online application

    Nowadays, almost everything can be done over the Internet including credit card applications. Online credit card applications are very popular these days because you can get a credit card without ever leaving your desk. So if you prefer quick and easy applications, online credit card applications are the way to do it.

    Surely, online applications are quicker and easier to do but you should know that there are some disadvantages. For instance, online applications are appropriate only if you are skilful in using your computer and surfing the internet — which pretty much most of us are. You are reading this article, right? One thing, though, you must make sure that the data you are submitting is being transmitted securely.

    On the bright side, online applications is a great way to get a credit card as provides certain perks that personal applications do not. As a matter of fact, most credit card companies even prefer customers who apply online as it eliminates most of the paperwork and the processing costs thus, saving the company money. Because of this, card issuers offer certain benefits exclusive for online applicants like freebies, discounts, and even low interest rates. So in determining what is the best credit cards application mode, online applications surely has numerous advantages to boast.

    No matter what mode of credit card application you choose, what truly counts is that you do it comfortably, easily and efficiently.

  • Are You Looking For The Best Credit Card For New Credit?

    First, you must know that you will have limited credit card options, especially if you are just building your credit history (new credit). What you need to do is to focus on getting cards that afford you higher chances of approval, such as secured credit cards, student credit cards, and other similar cards for beginners.

    There are many card types and reward programs nowadays, which make picking your first credit card like finding a needle in a haystack. So to help you find that elusive needle, simply go through the post below so you can come up with the best credit card for new credit.

    Unsecured credit cards for starters

    If you have no credit history, then entry-level unsecured credit cards may be a good place to start. Because such cards are for beginners, the credit limit is pretty low and the interest rate may be a little bit higher. However, the annual fees are reasonable and the card is easy to obtain, which makes it one of the best credit card for new credit.

    Student credit cards

    If you are a student currently enrolled in college, then student credit cards is the way to go. This card could be the best credit card for new credit because it is easy to get, provided that you are a college student and can demonstrate some proof of income.

    Secured credit cards

    If you have a tendency to overspend and you do not want to mess up your fresh credit with your first credit card, then you should get a secured credit card. With secured credit cards, you are required to make a security deposit, which in turn becomes your credit limit. For instance, if you deposit $500 into your credit account, your maximum spending limit will also be at $ 500. This feature is especially helpful if you are new to credit as it doubles as your guide to make responsible spending habits and also gives you a secure platform to get started. Of course, this is just one example. There are other types of secured credit cards as well. Therefore, if you want the best credit card for new credit, then this card type will surely be on top of the list.

    Whatever credit card you choose to have, you have to know that credit cards are neither good nor bad. What makes them perfect for you depends on your preferences, your financial capabilities, and your overall spending practices. So, if you wish to get the best credit card for new credit, you have to take into consideration these three things as it will be your basis in determining which card type you are most suited for.

  • Which Credit Cards Are The Best For You?

    In general, all credit cards are great but sometimes, you may not find all credit cards equally helpful. This is because there are many types of credit cards and each has unique attributes. Consequently, figuring out which credit cards are the best may seem confusing at first.

    Traditional credit card

    Most commonly used, you can use this card type to make purchases but you cannot charge more than your spending limit. Usually, credit card companies base your spending limit on your income. Thus, the higher your income, the higher your credit limits. You can also use your traditional credit card to pay for certain bills provided that the service provider accepts credit card payments. In conclusion, if you prefer a fuss-free credit card, it is best to go with traditional credit cards. Still wondering which credit cards are the best. Read further.

    Rewards credit card

    Like the traditional credit card, you can also use a rewards card to make purchases or pay your bills. But as its name indicates, not only will you get to pay for stuff but you also receive rewards in return. It is for this reason that rewards cards have become very popular these days.

    There are many types of rewards cards available for you to choose from depending on the kind of rewards or incentives you prefer. You can choose hotel point cards, retail rewards cards, gas point cards, airline points cards, and even cash back credit cards. All of these credit cards are excellent choices but in reality, you only let yourself get one or two and that makes it so much harder. However, it can be a lot easier to choose which credit cards are the best if you first determine which type of rewards are more appropriate for your lifestyle.

    Credit repair credit card

    Having numerous credit cards is fun (in terms of the purchase power it empowers you with) but sometimes, it can also hurt your credit if you cannot always pay your bill on time every month. There are certain types of credit cards that can help you boost your credit score, and one of which is the prepaid credit card. These do not “fix” your credit, but rather give you an opportunity to start rebuilding your credit.

    A prepaid credit card is just like any other type of credit card except for the fact that you must first make a deposit on your credit card account before you can actually use the credit card. This unique feature is what helps you boost your credit as you can only make charges equivalent to the amount deposited, thus, regulating your expenses. So in choosing which credit cards are the best, consider credit repair cards too especially if you have bad credit.

    Credit cards are aplenty nowadays and that is why it is important to learn the different types of credit cards so you can properly choose which credit cards are the best. In addition, you also have to determine your personal needs in order to pick out credit cards you can truly find useful and rewarding.