credit card debt - credit card comparison

For most of us, recent times have shown to be the most difficult financial time of our life. Your problems then become more hindered by the fact that you have a bad credit rating and can not get finance from your own bank. Unfortunately, this then has a follow-on effect and thus makes your personal finance situation worse than ever.

Attempting to strengthen one’s credit report can be a challenge. Applying for new credit may appear to be difficult as most lenders prefer individuals with good to brilliant credit. Although, thanks to the best credit card deals and secured credit cards, getting approval for a best credit card yet with a poor credit score is currently made possible.

You could apply either online or in the more usual method of posting off an application via the postal process. Normally it could take somewhere from a couple of days to a month for the card issuer to decide your creditworthiness. Having mentioned that, as long as your credit history is not fully damaged you ought to be unbeaten in your application for your 0 credit cards offer.

The credit limit on a poor credit credit card is normally much less than that of a credit card that is offered to individuals with a strong credit score. You could anticipate a minimum credit restriction of about $200. Having said that, as long as you retain a clean record and pay all your charges on time, there’s no grounds why your limit should not go up over time as you increase faith between you and the issuer.

If you are searching for a credit card, don’t forget these two little words: Comparison shop. Your credit card is an integral part in building your credit report and credit score, so you want a card that will benefit you. Here are a few things that you could keep in mind when trying to obtain the best credit card deals.

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Do you have a credit card? If so, chances are that you are not using the best one relating to your situation. Read on to help you choose the best credit card.

For instance, a card used for 0% balance transfers will not necessarily be the best credit card for regular purchases, or one used to get cash back might actually work out more expensively than a low APR card.

Let us examine the three major reasons why people use credit cards:

Balance Transfers
It has become commonplace to switch credit card providers based on the length of the 0% balance transfer deals they offer.

If you have a large outstanding balance on your credit card and are going to pay it off over many months or even years, then taking advantage of the different balance transfer deals on the market is the best thing to do.

Purchases
This is mainly what people use their credit card for and if you are only going to use your credit card for purchases you need to find the one with the lowest APR (interest rate).

Some people might ask why not take advantage of a 0% purchases credit card deal. Well, it really depends on the normal credit card APR and how long you plan to use the card. Say for instance the 0% purchases deal expire and now you have to pay 18% APR when you could have applied for a 12% APR card, but with no 0% purchases deal? Which one would you rather have?

Cash Back or Air Miles
This one is not so simple, as many people think that they might as well get rewarded for it if they spend money on their card? Well, normally these types of credit cards have a fairly high APR.

Let’s use an example: Say you have to choose between two credit cards, one that has a cash back offer and one that does not. Easy choice, right? However, say the cash back card pays you $1 for every $100 you spend and has an APR of 15.9%. The other “normal” card has an APR of 13.9%. Now the normal card is the best choice, unless you pay off your balance every month and do not pay any interest.

Then you also get all the hybrid cards. Some cards might have 0% balance transfer and 0% purchases deals. Others might have a low APR for the life of balance transfers. This is where you need a really good guide to show you all the different factors when considering applying for a credit card.

So when choosing a bad debt credit card, don’t just apply for the first one you come across. You need to decide what the card will be used for and then check all the factors that will impact this. Don't let things you have missed like high APR or high default fees make you regret your choice!

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Finding the right credit card for you will depend on how you intend to use it and one of the main factors you have to consider is the interest rate or APR. This will determine how much is charged on any outstanding balance each month so the right choice could save you a lot of money in the long run.

If you pay off your credit card balance each month then a low interest credit card may not be necessary. If your someone who typically carries an outstanding balance over each month then a low interest card is likely to be your best choice.

When searching for the best low interest credit card there are a few things you should consider. If you already have a credit card and you are looking to transfer your balance to a cheaper product, you should look out for good introductory deals. Some credit cards charge no or very low interest for the first few months so this could save you money and give you a chance to clear some or all of your debt without paying interest. Check if there are fees applied for balance transfers and calculate if the fees are less than the interest saved.

While the low rate offers can save you in the short term the best cards are those with low ongoing APR rates on new purchases. This is especially true if you think you will still have an outstanding balance after the introductory period ends.

The best place to find a low interest credit card is online. You can compare rates and fees quickly and easily to find the best deal. Be sure to check out fees and charges too. Many lenders try to recoup the money you save on interest by charging high registration and annual fees. At the very minimum you need to pay at least the minimum due each month and keep within your credit limit. The penalties can be prohibitive.

Having a clean credit record and a steady income will naturally boost your chances of getting approved for a low interest card. Also, do not attempt to overshoot the mark, apply for a credit limit that is appropriate for your income level.

Credit can be difficult to come by in the current financial climate so a low interest credit card could be ideal if you are looking to make a larger purchase but are finding it difficult to get a standard secured or unsecured loan. The interest rates will be higher than a standard loan, but it could be a handy option if you are in a fix.

So if you need credit or have an ongoing credit card debt, low interest credit cards are definitely worth investigating. The difference could add up to thousands of dollars.

Article by Richard of click4credit.com.au which compares products including Fee free credit cards and more.

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Credit cards can offer a great deal of convenience and easy access to credit. With a little know how and research you can find the best credit card for you, which will give you the access to the funds you need at little or no cost.

Even in today’s financial product market, there are hundreds of different types of credit cards available, each with their own interest rates, benefits and drawbacks. Researching the market can be a little daunting at first but with a little savvy and some sound advice you should be able to find the ideal product for you. Considering that you can save hundreds or possibly thousands of dollars by choosing the best credit card, it is well worth the extra effort.

Where to begin? Before making a credit card comparison you will need to think about your requirements, your lifestyle and your spending patterns. Your income and your credit rating will also be a deciding factor in which one you choose.

A quick glance at the credit card market shows that there are already different types of credit card which are tailor-made for different situations. The types include low interest credit cards, no annual fee cards, rewards cards, premium Gold cards and more. However, it is best to understand and look at a credit card’s features in detail and match these to your own circumstances and preferences before making a final decision.

To pay or not to pay

One important factor is whether you plan to pay off your credit card balance in full each month. If you are confident that you will clear what you owe every month interest rates will not be a major issue. However, if you think you will owe money on your account regularly you should aim for the lowest interest rate you can find.

One thing to be aware of when choosing the best credit card for you are misleading introductory interest rates. Don’t get drawn in just by the intro rates, make sure you know what interest rates will revert to once the offer period ends.

Grace period

When used correctly credit cards can enhance cash-flow and offer access to interest free credit. However, it pays to understand how and when interest is charged. Most credit cards give a 28-day grace period at the end of each month before the balance must be paid. If you clear the balance within this timeframe you needn’t pay any interest at all, so the longer the grace period the better.

Credit limits and credit ratings

All credit cards place a credit limit varying anywhere from a few hundred to many thousands of dollars depending on the card and your financial position. This is the upper limit of your credit card balance, so if you plan to use your credit card a lot and not pay the balance off each month you should push for a higher credit limit.

Whether or not you will be granted the credit limit you want will depend on your income and your credit rating. If you have a poor credit rating you may find it difficult to get approval on a card. However, there are some products aimed at people with poor credit ratings, though fees and interest rates can be very high.

Fees and charges

Many card issues charge heavy fees in certain situations. You will find all the details within the terms and conditions and it’s important to be aware of them. The most common fees are late-payment fees (failing to make your minimum monthly payment in time); over-limit fees (charged when you exceed your credit limit); annual charges; and cash advance fees (when you withdraw money from an ATM). Most of these can be easily avoided with a little care.

Features and rewards

Credit cards offer all kinds of different features. Among high income earners then Gold cards are popular as they not only offer higher credit limits but benefits to suit high income earners such as travel insurances and exlcusive privileges.

Reward cards offer benefits for regular use of your credit card or using your card at certain outlets. There’s a huge array of rewards cards available with rewards to suit different tastes and needs such as shopping vouchers, cashback or airline miles.

These are the main factors to consider before filling out your credit card application. A good understanding of the features you need and a little research will help you find the best type of credit card for you.

These tips should help find which type of credit card for you such as a funds transfer credit card or something else. The best card comes down to your needs and how you will use it.

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If you are looking to make a credit card application online then there are a number of things to consider before you apply.

1: Find the best credit card

There are lots of credit cards out there and they all probably claim to be the best. The trick is to find the best credit card for you. The best credit card will depend on how you will use it.The perfect card really does depend on your situation; for example, if it’s a backup card then a no annual fee card could be good, those with credit card debts may seek a card with a good balance transfer offer andd low ongoing APR, high flyers might want a Gold or Platinum card with extra touches while those who always pay bills in full each month may choose a rewards credit card. From this information it’s now clear that the best credit card for you will depend on your financial position.

2: Understand the credit card offer

Once you have figured out the type of credit card may be best suited to then you need to compare credit cards from the same category. Look for the following main features:

Purchase APR: This is the annual interest rate that you will pay on purchases made on the card. When you don’t pay your bills each month and get charged interest the lower the credit card apr the lower your interest costs will be.

Balance Transfer APR: This the credit card APR charged for balances transferred from other credit cards or store cards. These often attract an introductory rate as low as zero percent interest for a fixed period. Make sure you check costs of any transfer fees and what interest rate the balance will default to once the intro period expires.

Annual Fee: Some credit cards charge an annual fee or have a fee that is waived in the initial year or two but will kick in down the track. This makes the card more costly to use. Some exclusive rewards cards have higher annual fees but make sure that the rewards will outweigh any costs in fees and interest.

Interest Free / Grace Days: Most cards offer a certain number of days between a purchase being made and interest kicking in. No interest will be charged by your card issuer if you’re paying the amount due in full each month. If a card does not have a grace period then interest will be charged from the day a purchase is made. When you open your credit card statement you may find that items you purchased have up to a months interest already owing. Avoid cards with no grace period where possible and look for cards with a longer grace period.

Rewards: Rewards come in different shapes and sizes. Do the math and attempt to do a rough calculation of the value of rewards you will receive for each dollar spent. You may also want to check if there are limits such as the amount of reward points or cash back you can earn in a month.

3: Have the right information ready

Applying for a credit card online is probably the quickest and easiest way to apply. It also leads to faster approval times which may be instant if the information provided is sufficient for approval and your credit score meets the criteria.

Before you apply online then make sure you have the required information to hand such as:

Personal details: You’ll need to provide personal details such as contact details including your residential address for past few years. You may need addresses for the past three to five years so if you’ve moved about then have those details ready.

Employment details: You will need to provide details of your employment status, wage and contact details for your employer. Your Human Resources department is normally the best section to provide details for employment and income verification.

Identification: You may need details such as your driver’s license or social security number to hand a verification method

Balance Transfer Details: If you are doing a balance transfer then you will need details including the card number, issuer and balance of any credit cards or store cards you wish to have the balances transferred for.

Finance and Loan details: Depending on the lender they make ask for details of the other credit cards and personal loans you hold. They typical ask for issuer, balance and card limit.

Every credit card issuer asks slightly different questions but covering these basics should ensure your application for a credit card goes as smoothly as possible. For more information on credit card features such as credit card apr details online.

Article on credit card application is by Richard Greenwood of finance comparison website creditcardapr.com.sg

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