Finance Guide

Whenever you set out for shopping in a store, you will find a mode of payment through credit cards.  In this way we can say that credit card is one of the fine ways to do shopping because it is not necessary to take cash all the time. It is not essential that you have to pay them on the spot. The convenient thing is that you can give your credit card group in part. However you have to take a look on the rate of interest and the type of services which they are offering to you. So you have to be careful before you choose a credit card company. I am discussing some tips with you which could be beneficial for you to do credit card comparison.

(1)   ALWAYS COMPARE ALL TYPES OF APR (ANNUAL PERCENTAGE RATE):- APR is the most common thing before choosing a credit card. It should be clear that APR is just not another number in a credit but it is the most important number which will decide the money which you are going to pay. APR’s are fundamentally of three types, purchase APR, balance transfer APR and APR on cash advances. Always make sure that a credit card company can try to confuse you between purchase APR and balance transfer APR. So forward your step very carefully.

(2)   COMPARE INITIAL OR INTRODUCTORY RATE: – There is a good competition in the market. So credit card companies usually offer low interest rates in the beginning. It would be better that you should check that till what time these rate are going to be steady and what will be the rates after the end of introductory rate.

(3)   WHAT IS THE GRACE PERIOD AND ADDITIONAL FEES: – Always compare the grace period of all the offers. This will help you to save that money which could be paying as an interest. Moreover it can help you to accumulate your credit ratings. Also check that is there any annual fee or not. There are so many credit card companies who charge 3% of the each balance transfer as a balance transfer fee. If this is the case then always check your other offers.

There are so many prepaid credit cards available in the market. They generally have all the services presented like any other standard credit card. So in this way you can find that one which is the best for your pocket.

In today`s world banking has become quite easy for consumers. They do not have to wait in queue to collect money instead have ATM or debit cards to withdraw that are banks have provided easier solutions. One such solution provided by them is credit card through which one can spend money even if one does not have money at that moment. But these day some people depend heavily on credit cards and have more than one; they start using credit cards for their routine activities which earlier they were doing for cash; this creates debt on them when they are not able to make credit card consolidation charges of a month, also defaulters got increase and people suffer from money collectors of banks.

These days almost 50% population uses credit cards for routine shopping so credit card issuing banks have also increased sufficiently. I must say that it is very unfortunate that some of these people do not pay credit card monthly payment and had to bear unnecessary interest charges which is huge about 35%to 50% in some cases .

Once you are stuck in huge debts then you are left with two options.

One is balance transferring to some other credit card which charges low interest rates and free balance transfer for at least 90 days. Other is Credit card consolidation loan in which you pay in EMI with some lower interest rates. What I would suggest you is that when you are going to take a credit card see its terms & conditions carefully such as interest charges ,balance transfer charges, offers available ,annual fee subscriptions, online facility and others which you think for you as are important. Do not use more than 3 credit cards otherwise you will always stuck in some payment and use them when you really need and not just for buying grocery.

Tesco completed research regarding credit card use for the summer.  They found of the 54 percent of people surveyed that they would be spending less on food and drink than in their last trip.  The survey also showed that these people interviewed were not going to use their credit cards when travelling abroad.  About one in seven travellers stated they would be on a budget of 100 pounds per person per week or less.  Women in this research study were found to be stricter for a holiday budget over men.

The recession that has hit the world is partly to blame for these acts of downgrading the spending consumers will do.  Consumers feel they must keep their holidays abroad at the same amount that they spend going out at home.  Several of the individuals travelling stated they would most likely stay at a place that is all inclusive or they would at least have a continental breakfast as part of their hotel stay.  Others would be bringing along foods that will travel well in their suitcases to cut down on costs. Apacs showed that 20 billion pounds on debit and credit cards was spent abroad in the last year.

For this year they expect this number to lower at least two billion.  Experts discussing credit card spending believe that many of those who have suffered from high credit card debt and high interest rates would rather not get their credit cards to an unmanageable height again even for a holiday. That said there are still a portion of people out there who are getting 0 credit cards to pay for holidays. Holidays are no longer being cancelled as they were last year.  More people are beginning to travel abroad, but this is partly due to the great deals on the internet and through travel companies.  They feel even if they have to use a credit card the debt can be paid off.

Balance transfer credit card offers a great way to save interest costs if you are looking to pay off your credit cards. This balance transfer credit cards gives you enough time to pay off your older credit card. This facility makes your money work for you by paying off the balance with every payment. Because of high interest rate only a small portion of your monthly payment goes towards your credit card balance whereas with low balance transfer fees you can pay more money towards your debt.

0 APR balance transfers works as a stress reliever for those who are deep into credit card debt. These cards charges you 0% interest rates for certain amount of time, typically six to twelve months. With this type of cards you can save over $200 annually in interest for every $1000 you transfer from a credit card with 18% interest rate. By reducing the amount of money you pay each month, the 0 apr balance transfers allows you to quickly pay off your credit card debt. This is because you are no longer paying interest on the balances and every dollar in payment goes directly to lowering the balance. This helps you get out of debt faster and with very little ease.

Zero interest balance transfers are a blessing for those people who have high balances on high interest credit cards. But with U.S government’s new credit card bill it will get difficult for most to get 0% apr balance transfer cards easily.

Today credit card is one of the most important things we need in our daily life. But applying for credit card is not always easy. There are many things you need to consider before applying for credit card. You need to know everything about your Credit Card Company, credit card charges, credit card limit and credit card application details.

Out of all these things the most tedious work is to fill out a credit card application if you’re unaware of it. Your credit card approval depends upon the information you give out in your credit card application. Today I am revealing some important guidelines which you need to consider before you apply for credit card.

Selection of the Credit Card Company

It is very important to know everything about your credit card company before you choose it. In today’s world you’ll find ease in credit card comparison. There are many websites available on the web providing this service for free.

Gather information about Charges

It is necessary for you to know information about annual charges. You need to know their T.O.S and all the charges i.e. interest rates, late fees, annual fees etc.

Show Honesty

Always fill out your credit card application with honesty. Make sure you provide them complete and true information about your financials and everything they ask for. If you provide them false information then you may face severe charges.

If you consider above mentioned points then you’ll find ease in getting your credit card. However, the approval of your application depends on various factors such as your financials, your credit score etc.