Things to remember when you apply for a credit card

When you are ready to apply for a credit card, there are a few things you want to take into consideration before making that final choice on which card to put into action in your life. After a bit of reading and reviewing the offers and your credit needs, your credit rating, you are then going to know if you are really ready to apply for a credit card for you to use. One thing to think about is how your credit report is. If you are one of the many that may not have the greatest credit, you are going to see that it may be a little difficult to acquire a credit card. If that is the case, you may need to try one of the credit card companies that will help people out that have bad or slow credit. The only thing with the credit cards for people that have slow or bad credit you are going to see that you will end up paying a higher interest rate. The credit card companies that will offer a credit card with a low interest rate are going to be for the people that have good or excellent credit. You may see that these credit cards are harder to acquire because of the sticker guidelines that the credit card companies have set. As you are looking at all, the credit card offers you will see that there are so many different companies for all different kinds of credit and situations for people looking for a credit card. Another thing to think of is if you can really afford a credit card. Many people apply and receive a credit card that they are not able to really afford. That is one reason why more and more people end up in credit card debt over their head. In addition, there are some that figure that they are going to get a credit card for a vacation or for the use of buying the items that are needed for the home. The only problem is that they end up charging more than what they are able to pay for at the end of the month. Once you are ready to apply for a credit card you are going to want to check out all the different card companies that are out there. That is because there is going to be a credit card that is perfect for you to apply at. You are not going to want to fall in the trap that some of the credit card companies will have out there because you may soon find that you really do not qualify for the credit card that is offering you a great rate and a irresistible introduction period. You are going to want to make sure that you take your time and check out all the different credit card offers that you are going to see when you are looking to apply for a credit card. Than you know that you are going to get the right credit card for the credit rating and situation that you are in so you are not applying for credit cards that you are not going to be accepted for.

Secured credit cards

When deciding upon what credit card is the best for you, don’t rule out secured credit cards. In fact, many people are finding secured credit cards to be the best option. Some people choose a secured credit card when they have had credit problems in the past, and obtaining a traditional credit card would be difficult if not impossible. Secured credit cards are great options for teaching your teenagers and college students about responsible financial spending. Secured credit cards help control your spending, since you must have the money before you can make a purchase, unlike a traditional credit card that you don’t have to have the money to back up your purchases. So, you may be asking why bother with a credit card at all, if you have to have the cash available to fund your secured credit card. In our modern times, it is becoming increasingly difficult to do certain things without having access to a credit card. Have you ever tried renting a car or purchasing an airplane ticket without a credit card? Ever tried booking a hotel room without a credit card? Secured credit cards work in the same manner as a checking account debit card, however, there is no actual checking or savings account associated with the card. You make a deposit to the company that issues the secured credit card, and that becomes your spending limit. When you have made purchases that reach the amount of money you deposited, you have to deposit more money in order to continue using the card. Advantages of using a secured credit card, other than the obvious advantage of not spending more money than you actually have, include the fact that almost anyone is eligible to obtain a secured credit card. Regardless of your personal financial history and credit score, you can make a deposit with a secured card distributor and obtain a credit card. The only actual requirement to be approved for a secured card is you must be of legal age and have money to deposit on the card. Other advantages of a secured credit card versus a traditional credit card are that you are not charged an annual percentage rate on the amount that you deposit, and you can have your paycheck deposited directly onto a secured credit card in many instances. A traditional credit card will smother you with interest rates, late fees and finance charges over time, and you’ll end up paying two to three times what you’ve actually charged to the card! With a secured card, you know exactly how much you’re paying for an item. Secured cards allow you to make purchases online when you would not be able to if you didn’t have a traditional credit card. The main disadvantage to using a secured credit card in place of a traditional credit card is the fact that you have to have the money in advance for any purchase you want to make. While this is an advantage when considering your credit score and the perfect way to avoid getting into debt too deep for you to handle, it is also a disadvantage in the event of an emergency situation. If your car breaks, or your home’s furnace dies and you don’t have the cash available, a traditional credit card would come in handy. Perhaps without ever using traditional credit cards however, you will be able to save enough money to cover emergency instances and not need to rely on credit to bail yourself out of the emergency situation. Secured credit cards may be the best option for your credit card needs. They allow you to travel conveniently, make purchases by phone or the internet, and without the dangers of falling into financial desperation!

How to choose a credit counseling agency

: Are you barely making ends meet? Dodging debt collection calls? Unable to meet your monthly expenses much less save money for emergencies or retirement? If this sounds familiar, you may want to consider credit counseling. Credit Counseling can improve many aspects of your life. It can help you get out of debt faster and improve your credit, just to name a few. And there are many agencies out there that would love to quickly enroll you in their Debt Management Program. However, not all agencies are created equal and not all agencies are truly looking out for your best interest. As with most things in life, if it sounds too good to be true, it probably is. This article will outline some guidelines in choosing a credit counseling agency, what questions you should ask and a few warning signs that you may not be dealing with an ethical practice. Choosing a Credit Counseling Agency Reputable credit counseling agencies advise you on how to realistically manage your money and your debts, help you develop a workable budget, and usually offer free educational materials and workshops. Develop your own list on the potential credit counseling agencies and the best way to check the reputability of those short listed credit counseling agencies is to check them with the Better Business Bureau at bbb. org. From they you will know how many complaints have been filed against these credit counseling agencies and for what reasons. Credit counselors should be certified and trained in the areas of consumer credit, money and debt management, and budgeting, and should discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems without pushing a debt management program. Erase them from your list for those credit counseling agencies that keep pushing you to enroll into their debt management program without understanding first on your financial condition. The Cost Although many credit counseling agencies are nonprofit, there might be some fee involve. Bottom line is whether they request "fees" or "contributions", they should be disclosed and should be reasonable. Anything over $50 for a consultation fee or monthly fee or contribution is NOT reasonable. Make sure that the agency is not keeping the first month's payment as their fee! This is known as a bad practice in the industry and has been the source of state attorney general lawsuits as well as many individual actions against the agencies that do this. What Questions To Ask? What services do you offer? Look for a credit counseling agency that offers a variety of related services. Avoid agencies that push a debt management plan (DMP) as your only option before they spend a significant amount of time analyzing your financial situation. What educational materials/information do you offer? Is it free? Avoid credit counseling agencies that charge for educational materials or other written information. What are your fees? Are there set-up and/or monthly fees, how are they broken down? Get a specific price quote in writing and make sure you understand exactly what fees you'll be charged. What if I can't afford to pay your fees or make contributions? Under the terms of the Pension Protection Act of 2006, non-profit credit counseling agencies must provide services for free if a consumer is unable to pay. What are the qualifications of your counselors? Are they accredited or certified by an outside organization? Use an organization whose counselors are trained by a non-affiliated party and who have a background in debt management, consumer credit and budgeting/finance. Once you satisfied with their answers given by the credit counseling agency and decide to take up their service, remember to get a copy of the contract and review it carefully before you sign it. Make sure the contract includes:

• Disclosure of the amount of your fee or contribution


• Description of the services to be provided


• An estimate of the payoff schedule for the debts


• Disclosure of the termination provisions of the agreement


• Options for resolution of disputes

Warning Signs Finally, you should be aware of a few warning signs on unethical practice. Get alert with these signs when you interviewing an agency:

• Unrealistic Low Monthly Payments


• Money Back Offers


• Loan Programs


• If the promises being made seem like they're too good to be true, they probably are. Beware.

Summary You have made the first step towards reaching financial freedom. Now you must make the next big step and choose the Credit Counseling Agency that is best for you. Remember, you want to work with an agency whose goals are in line with yours, NOT theirs.

Better balance transfer credit card use

Balance transfer credit cards can be an effective solution, properly used, for consolidating existing debts and avoiding a high APR on an existing card. However, customers should be aware of what to know before applying for a card, as well as what problems balance transfer cards will not solve. Customers should be aware of whether or not the balance transfer card's introductory rate increases over time, canceling out the benefits of the balance transfer card offers in the first place. They should also be aware that previous bad credit history can complicate the use of a balance transfer credit card, and that only prudent overall financial habits in conjunction with occasional balance transfer use makes for a lasting solution. Anyone who's used a credit card for any period of time has likely found himself or herself faced at least once with the specter of debt: perhaps a paycheck doesn't clear in time, a friend's assistance fails to come through, a last-minute furniture sale attracts no customers. The outstanding balance is high, and an interest rate that at first seemed only theoretical ("I won't have to worry about that," the user thinks, "as long as I'm careful") now seems disturbingly real. This situation is always possible, a natural product of any necessary financial risk, and there's no shame in it. All that matters is finding a solution for the situation. And solutions exist. It's a common enough situation, in fact, that an entire variety of credit card has sprung up to cater to exactly this kind of user: balance transfer credit cards. The principle behind a balance transfer credit card is simple: the card encourages its user to consolidate his or her outstanding balance onto a single card with a very low introductory APR, often 0%. The user is then free from whatever higher APR might have crept up on his or her existing card, and it seems as if all financial worries have been eliminated in a moment by balance transfer credit cards: the magic bullet, it would seem, of the financial world. But it's important to realize that a balance transfer credit card is not a magic bullet: it's a financial solution, like any other, with its own advantages and potential pitfalls. And it's important for the potential balance transfer customer to keep a few things in mind when considering whether or not to save money by using balance transfers to consolidate debts. The most crucial factor to consider is that the introductory rate on most balance transfer credit cards does not last forever. If the user thinks of balance transfers as outright eliminating debt problems--or at least eliminating them until some nebulous future time--that user could potentially run out the initial 0% grace period (most often twelve months) and find himself or herself faced with an APR that typically ranges anywhere from $11 to $18--not an unreasonable rate for someone who's expecting it, but otherwise a possibly disastrous surprise. So potential customers should make certain to research the full details on any balance transfer credit card (or any credit card) before making the decision to apply. Some cards also have options that could be deal-breakers (an high initial balance transfer may be required), or options that could be highly useful (some cards allow the user to maintain the initial 0% rate until all initial balances are paid off.) As in any situation involving credit or finance, the informed customer is always the more effective customer. Another, perhaps more fundamental factor to consider before applying for a balance transfer credit card: balance transfers are not, in and of themselves, a cure for existing debt problems. They are a treatment, and one that only works in conjunction with good financial habits all around. Some balance transfer credit cards determine their introductory APR or regular APR (or both) by looking at the applicant's overall credit history, meaning that in these cases existing financial problems, rather than being eliminated by a card, will actually prevent the card from doing its work. So balance transfer credit cards should not be looked at as a lifeline or a magic bullet, an excuse for building up high balances in hopes that a timely transfer will wipe all history out: rather, balance transfer credit cards are a tool, one useful only when accompanied by general financial prudence. No one is perfect, and in the case that things go wrong and debts mount with no immediate method of paying them off in sight, consolidating balances can be a powerful (if in many cases temporary) remedy. But before making the decision to apply, customers must remember first of all to become informed about their options, and must further remember the first rule of finance: never assume the existence of a magic solution to problems; never substitute an attractive credit option for judiciousness and a sound financial plan.

Credit card applications is it safe to apply online

Are you wanting to apply for a new credit card but feeling hesitant to perform the credit card application online? If so, you need not be concerned. Advances in the technology of secure e-commerce have made online credit card applications literally safer than filling out a paper application and mailing it through the US Postal Service. Here’s why. SSL Technology First, banking institutions that offer online credit card applications use the most up-to-date technology to ensure that their web sites are protected against intrusion and data theft. This technology is known as SSL, which stands for Secure Sockets Layer, a transmission protocol that “encrypts” any data sent between the bank and your computer, such as all the personal information you need to fill out when applying for a credit card. Encryption What exactly is encryption? It is a sophisticated mathematical process that disguises data by altering the bits of information in ways that are undecipherable to others. You have probably done encryption in your childhood days when you sent messages to friends in school using a secret language such as reversing the alphabet, so that A meant Z, and Z meant A. That early game was actually a form of encryption. In the early days of the Internet, encryption used 40-bits, which meant that a character of data could be transformed into another character in any one of 2 to the 40th power ways, which is approximately 1 trillion ways. But as large as that number is, computer security experts realized that people, including criminals, who had access to very powerful computers could crack 40-bit encryption in a short period of time, ranging from a few days to a few seconds depending on the power of their computers. Therefore, in the late 1990s, a much more powerful type of encryption was introduced using 128 bits. This means that each character of data can be altered in any of 2 to the 128th power ways, a code which represents an astronomical number of possible variations that would take on the order of 20,000 years to break using today’s fastest computers. The use of 128-bit encryption has thus completely altered the safety of data. Two Encryption Keys Required Furthermore, today’s encryption methods use what is called the “two-key” algorithm whereby the sending computer and the receiving computer use both a “public” key and a “private” key to encrypt and then decrypt any data exchanged between them. The process is complex to explain, but suffice it to say that the two-key approach makes it impossible for all intents and purposes for an outside party such as a criminal to capture and interpret any data transmitted between two computers over an Internet site using SSL technology – because the criminals will not have both keys. Online Credit Card Applications - No Safer Method In short, SSL technology virtually guarantees that if you fill out a credit card application over the Internet using a bank’s secure application page, all your personal information can never be stolen or broken into. Compare this to a paper credit card application which you send via the US Post Office. Think about how many mailboxes are broken into each year and how many pieces of mail are somehow lost – and you will now realize that applying for a credit card over the Internet is actually the most secure method you can find. So if you want or need a new credit card in order to expand your credit capabilities or to get bonus points or travel rewards, the best thing to do is to go to one of the web sites that allows you to compare credit card offers, then click through to the secure web site for the bank you choose to fill out their online credit card application. You will also benefit from this because your application will be processed within minutes and you can often get an immediate approval rather than waiting weeks as you do when you mail in a paper application. All in all, rest assured that computer security experts are working hard to protect consumers from crime and identity theft as Internet banking, e-commerce, and credit card payments are increasingly processed online. Copyright 2005 Ed Vegliante.