How To Avoid Big Credit Card Bills

Tips on Avoiding Huge Credit Card Bills

Credit card debt is one of the biggest problems that cash strapped Americans have are facing today. With salaries taking a beating and uncertainty about jobs preying on their minds, many Americans use their plastic to buy things because they do not have to pay for them right away.

Although users conveniently forget that credit card balances have to be paid off sooner or later, the issuers don’t forget to send the bills at month end. Instead of running up huge bills on your plastic that will wipe out your entire savings to repay, it is far better to keep a check on how you are using your card.

Monitor Your Card Spending

A great way to ensure you always have the cash to pay back credit card dues is to keep a list of purchases that you make using it. Update the list diligently whenever you use the card so that at month end you know exactly what you owe to your credit card company. This list will also help you detect any errors in your billing.
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Should You Let Your Teenagers Have a Credit Card?

Credit cards for teenagers is a controversial topic with many parents supporting them and others strongly opposing them. There are many reasons due to which credit cards should not be given to teenagers. The most important one being that no one should take a debt that they cannot pay back on their own. [Read more…]

Keeping Credit Cards Open to Increase Your Credit Score

There are many reasons why you may want to cancel your credit card. It could be because you are paying unreasonably high interest rates on your card or you feel that you are better off without it. Another common reason why people want to cancel their credit card is because the card is lulling you into a false sense of security and you are unable to control your spending. [Read more…]

Practice Financial Discipline to Avoid Falling Into Credit Card Debt

A huge credit card debt can ruin your finances. If you are not careful and deal with it quickly, your debt will keep building up, which also means that you will end up with serious credit score issues, putting your financial stability in jeopardy. Be disciplined and take steps in the right direction to avoid /credit card debt.

Increase your credit card payments

Prepare a budget for your monthly income and expenses to find out what is the maximum payment you can make on your credit card, and use your card accordingly. Cut down on unnecessary expenditure and try to increase your credit card payments. [Read more…]

Advantages and Disadvantages of Using Prepaid Credit Cards

Prepaid cards are a great alternative to make cash purchases easier to manage and track. These cards have become very popular, as people prefer to carry a compact piece of plastic instead of lots of cash, especially while traveling. But unlike credit cards, with a prepaid card you get the advantage of ensuring your expenditure stays within your budget. [Read more…]

Average American Credit Card Debt Is it Really that Bad?

The recent economic crisis has hit the country hard. People have lost their jobs and homes, stocks and real estate values have fallen. Reports also suggest that credit card debts are sky high, with the average American owing about $9,000 on his/her credit card, which is a really scary number. Are Americans really that neck-deep in credit card debt? Or is the situation being blown way out of proportion? [Read more…]

How to Get Rid of Your Credit Card Debt and Put Money Back in Your Pocket

If you have maxed out on your credit card and are reeling under a sizeable debt, the last thing you want to do is to panic. By planning carefully and through some smart investing, you can get rid of your debt quickly. [Read more…]

How to Withdraw Cash and Make Purchases on Your Foreign Vacation

Foreign vacations can prove to be very expensive, as they can involve huge bills for traveling, accommodation and all the fun things that you do. It is important that you pay attention to the way you spend money and make overseas purchases so that your expenditure is minimized. However, contrary to what most people think, the standard ways of executing financial transactions work equally well when you are abroad. [Read more…]

How Reliable Are Credit Card Debt Settlement Companies

Credit card debt settlement companies are always trying to lure customers with attractive offers. Such offers of reducing debt payments by more than half are very tempting for people who are unable to keep up with their credit card payments and are getting buried deep into debt. [Read more…]

Impact of Canceling Unwanted Credit Cards on Your Credit Score

Sometimes we end up with unwanted credit cards that we applied for without giving much thought. But getting rid of such cards is not such a simple decision as it has a bearing on your credit score.

People end up with these cards because they apply for many cards at the same time thinking that they will be rejected for a few or it will be quite sometime before they will be approved for them. They are also under the impression that they will have plenty of time later to decide if they really want the card or not. But that really is not the case, as it becomes tricky to get rid of the card without affecting your credit score negatively. [Read more…]

Differences between a Credit Card and a Charge Card

Most people do not realize that there is a huge difference between a charge card and a credit card. It is important to understand how the two work, so that you use them appropriately.

Carry Forward Balance

Whenever you make a purchase using your credit card, you are effectively taking a loan for that amount. You have to repay the company later and you pay an interest for the credit you took. You need to make some minimum payments and you can carry your remaining balance to the next month. This means you do not have to repay the entire debt that you took in that month.

In a charge card, the payment has to be made in full every month. There is no option of carrying your balance forward. There are no minimum payments or interest rates. If you fail to repay the whole amount, then you would have to pay additional fees and penalties.

Annual Fees

You would be charged an annual fee for a charge card as the card issuer does not make a profit by charging you an interest on the carry-forward balance. Charge cards usually have a good rewards point system, which would compensate for the fees to some extent. On the other hand, most of the credit cards do not require an annual fee.

FICO Scores

The biggest advantage of charge cards is that you can make a large number of purchases without affecting your credit score. FICO scores take into account the ratio of utilized credit to available credit. Since charge cards do not really have a fixed credit limit, they are usually excluded while calculating the ratio, due to which a high balance on your charge card would not affect your credit score. The TransUnion FICO score does include charge card balance, but this will also be changing soon.

If you are confused about which card to opt for, then you should look at your personal needs. If you want to carry forward your balance or if you do not want to pay an annual fee, then it is better to get a credit card. On the other hand, if you are sure that you would be making full payment every month and want to avoid spending beyond your limit, then a charge card would be more suitable for you.

A charge card is also the better option when you are worried about credit card debt affecting your credit score.

Credit Checks are Being Used to Screen Employees

The practice of major credit card agencies giving credit histories of job candidates to potential employers has come under scrutiny. Many people have complained that they have lost out on job opportunities because of their credit history, despite being qualified for that position. [Read more…]

Do Credit Card Reward Programs Really Benefit You?

Credit Card reward programs are becoming extremely popular these days as people try to save money wherever they can. Under these programs, you get some points for every dollar you spend. Once you have reached a minimum balance of points, you can redeem it in form of cash or some other financial benefit, depending on which reward program you have subscribed to. [Read more…]

Understanding Hidden Costs of Credit Cards

Credit cards can prove to be very expensive if you do not handle them cautiously. When you take a card, there would be various hidden costs that you need to understand. Most people ignore the terms and conditions document that they get with the card, but this could prove to be quite costly. [Read more…]

Can Canceling Credit Cards Damage Your Credit Score?

Canceling credit cards seems like a great idea to curtail all the impulsive shopping and splurging. When these pieces of plastic are adding unnecessary dollars to the monthly bills, many think of getting rid of the temptation by canceling their credit cards. But canceling credit cards can impact more than just the spending patterns. They can affect how the card holder would be perceived by future lenders. [Read more…]

Negative Impact of the CARD Act

Various reforms are being introduced by the CARD Act for the credit card industry. For consumers there are many good news but there are many bad news as well. The most important change is that as banks would not be allowed very aggressive tactics anymore, there could be higher fees and charges now so that they can compensate for their losses. [Read more…]

Manage Your Credit Cards Better and Avoid Unnecessary Debt

As a result of the recent recession, credit card delinquency rates in the United States are at an all time high. d.

So how do you go about getting a grip on your finances to ensure that you overcome these difficult times without accruing a lot of debt on your credit cards? [Read more…]

New Gift Card Rules Will Protect You from Early Expiration and Inactivity Fees

The Federal Reserve announced new rules concerning gift cards to protect the consumers’ interests against abuse by credit card issuers. For long now, consumers had to cough up hefty fees and charges on account of servicing, inactivity or dormancy. To top it, the expiry dates of gift cards can be short, which leads consumers to losing money on these cards without even using them. [Read more…]

Credit Card Companies Offering Deals to Distressed Credit Card Holders

The credit card companies can offer bargain deals to distressed credit cardholders whose balance on the card has spiraled out of control and they can not afford to pay back the debt. And in today’s difficult times, these companies are more willing than ever to do whatever they can to settle the debts. [Read more…]

Interchange Fee The Invisible Credit Card Fee

When you use your credit card or debit card for a transaction, another transaction takes place behind the scenes. The bank whose credit card you are using (the issuing bank) gets paid a certain amount by the bank, which processes the payment on the merchant’s behalf (the merchant or acquiring bank) for every transaction. The fee paid by the merchant bank to the issuing bank is called the interchange fee. [Read more…]

Learn How to Settle Your Credit Card Debt

Credit card companies are offering various options to customers to assist those who are unable to repay their debt to at least pay back part of the amount. Through negotiations, the company can reduce your interest rates and also lower your minimum payments. Various other plans are being offered so that you don’t default on your payments. [Read more…]

Falling Credit Card Debt Numbers Could Be Because of Charge Offs

It has been reported recently that credit card debt is falling, which we are told is a clear sign that the financial situation of consumers is improving. These reports emerge from the data released by the Fed, showing that revolving credit on the books of financial companies is falling. But these figures could be misleading. [Read more…]

Credit Card Charge Offs and Delinquencies Show Positive Trend

Data released by five leading credit card companies in the US has shown a positive trend in delinquency and charge off rates. The rates were found to be either lower than before or stayed at the same level, highlighting the improved financial situation of customers when compared to the last two years. [Read more…]

Credit Card Companies Improve Their Rewards Programs

Credit cardholders will agree that shopping is beginning to pinch with firms charging higher interest rates and fees. However, if you are a frequent spender and a loyal customer of the company, you can benefit from the many reward programs to offset these costs. [Read more…]

CARD Act Brings Good News for Credit Card Holders

The Credit Card Accountability Responsibility and Disclosure Act, or the CARD Act, is good news for all credit card holders. The act contains many provisions which are beneficial to card holders, especially pertaining to revision of interest rates by the lender. [Read more…]

Lengthy Credit Card Statements Preventing Detection of Fraudulent Charges?

How many times do you carefully look through every transaction and charge on your credit card statements? Not many times for sure. And to top it, the statements are getting lengthier every year with the increasing usage of the credit cards, even for smallest of daily transactions. In fact, a recent report estimated that the credit and debit card transactions have almost doubled from 2003 to 2009. [Read more…]

How to Quickly Reduce Your Credit Card Debt

Holiday season tends to add a lot of debt on the credit card for most people. Now that things will be beginning to settle down after all your new purchases, it is time to think about how you would be paying those debts off. Credit card debts are not cheap, and it is very important to pay them off as soon as possible. Here is some advice on how you can reduce your credit card burden. [Read more…]

Great Credit Card Perks That Remain a Secret

Most people are only using their credit cards to make purchases. Few people actually know that their credit cards may have a number of other benefits that come with the card.

Perhaps its time that you discover what other benefits you may be missing out on, and learn how some of these credit card benefits could save you a lot of money.

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Credit Card Empire Strikes Back

With the Credit Card Accountability Responsibility and Disclosure Act of 2009 going into effect today, don’t expect giants such as Citigroup, BOA, or American Express to lie down and take a 12 billion dollar beating with the docility of a Geisha.

These savvy slave owners simply have too many ways to counteract federal legislation designed to empower the American consumer, namely the inability for the American consumer to spend responsibly.

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Reducing Credit Card Debt Through Negotiation

Frequently people with too much credit card debt find themselves in a position in which they are unable to pay their bills. When people are in this position it is usually possible to negotiate a deal with the credit card company to reduce the amount that you have to pay. Most credit card companies are willing to do this because it is better for them to get part of the money they are owed than none of it. If you find yourself unable to pay off your credit cards you should definitely consider negotiating with the credit card company. [Read more…]

Barack Obama’s New Credit Card Reforms

The new credit card reforms that Barrack Obama has imposed bring some very good news to the table for all card users. Problem is that the banks are bound to fight back. While the reforms are major victories for consumers all over, the banks are going to suffer. [Read more…]