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Visa Credit Cards

February 12th, 2009

Visa is one of the reputed credit card companies and its symbol is universally recognizable. There are various types of Visa credit cards. Here we take a quick look at some of them.

Visa credit cards are actually distributed by the banks who fulfill the Visa standard and not the Visa Company. So the rates across different cards can vary.

The Visa classic is one of the most frequently used credit cards. It is a great entry level card that is simple, flexible and with global acceptance. This type of card is common across various banks.

The Visa secured can be very helpful in building credit, or improving credit score. When you give a deposit, you are actually ensuring that your credit card application will be approved.

For people with excellent credit history, the Visa Gold can improve their position further. It has lower APR rates and enhanced credit limits. For those with still advanced credit history, the Visa Platinum shows the enviable financial status. It carries unimaginable low rates and high credit limits, this card is in the top echelons of Visa credit cards.

But check out if you can manage to make monthly payments before getting into any debt, that you can continuously enhance your credit rating, and can get improved offers on cards and credit. You can easily get more reduced interest rates, like 0% APR for 6 months.

Find out more details about the different types mentioned here, making your task of choosing the correct card easier. All you have to do is to go the bank that offers the card, fill the application and very soon you’ll be the proud owner of the Visa Card

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Oil Companies Credit Cards

February 12th, 2009

The increasing number of consumers with oil company credit cards means more gasoline purchases. This number has shot up drastically in the last 10 years. The gradual lowering of qualifying criteria for these cards and the amount of spending at the pump are the two primary factors that contribute to this growth. Today it has become far simpler and quicker to purchase gasoline with the card. All you should do is insert the card in the pump, fill the tank and move off. Many people love going for another credit card if it prevents them from queuing up for the gas.

Many people spend money of gasoline nearly every month. If you are going to work in your car, this expense will remain nearly constant for every month. Hence it makes sense to treat gasoline purchases just like other recurring expenses like rent or electricity bill. You should pay it in entirety each month. If you make only part payment, the bill will go on increasing in the successive months.

But sadly, very few people pay the whole balance in full every month. Those who do not do so, a gas credit card bill can be quite a shocker. These credit cards carry steep interest rates as against other types of credit cards. The interest rates are usually around 18-25% for these cards whereas other cards have far lower rate. For a person with good credit, these cards are available with an interest rate of about 10%.

For a person who does not pay the gasoline credit card in full, it is advisable to go for another credit card with a lower interest rate. Gasoline pumps that take credit cards will also take many credit cards. Hence using a regular credit card in place of gas card here is far better option. If possible, use Discover card since it offers cash back rebate each year on its usage.

Smart consumers who want to control the amount of interest they pay on their credit card bills should look around for another choice to the gas cards. Paying interest simply makes no sense.

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Trans Union Credit Report

February 12th, 2009

Free Trans union is one of the constituents of the FCRA and is legally authorized to give you free credit report. But it is vital for you to understand how it is broken up. Hence to maximize the benefit of your credit report, try to see the report details just the way a creditor does.

A Trans union provides four types of details:

Identification

Credit History

Public Records

Report Requests

Trans Union identification portion contains your personal details like name, present and previous address, phone number, social security, and your office address. Of all these, your name and social security code are needed to help the agency to gather more details about you. To get your credit report on time, give all the accurate information along with all the details. This is essential for married and formerly married women who tend to many different names.

This credit report keeps the track of all your old financial transactions. The lender focuses more on the details like if the bill amount has been paid in full on time, the length of your credit, any new account opened, whether you account balance is small or large, total size of debt.

If there is any problem in bill payment, it can cause problems for you while applying for a loan as lender will always require a security against loan.

Trans Union gives you a copy of your credit report as per Fair Credit Report Act (FCRA) once in a year. Internet is the excellent method of getting your credit report. Trans Union has its own authorized site that has an online form where you can submit all your information to get your credit report. However any false information means your form will not be processed

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Improving Your Credit

February 12th, 2009

Some things can impact your financial future more than a bad credit rating. It can disqualify you from getting a home, purchasing a new car or you end up paying steep interest rates. If you have just started on the path of financial freedom or suffer from bad credit rating, follow these tips and tricks to get set on the proper path.

Understanding the meaning of your credit score

Your credit score is a number that shows the possibility of repaying the borrowed money. Every payment you make or miss can affect the score. It makes sense you keep yourself informed about your credit score, after every 6 months. This is necessary especially if you want to make a big purchase in immediate future.

Ensure your credit report is accurate

Reviewing your credit report frequently will let you know your status in the financial world. You can also track down any errors that may damage your credit. If you encounter such an error, rectify it urgently. This rectification can take nearly 3 months, so get them corrected as fast as possible.

Pay Your Bills!

The simplest method of keeping your credit score high and devoid of negative indicators is to make timely payments of your bills. Though easy and simple, it is secret to developing good credit. Even if you pay the minimum amount for some months, it is essential that you keep on making payments on time. This will reflect on your credit report and improve your credit score.

Control your credit cards usage

Usually credit cards have a major effect on a credit score. One of the important factors that reflect on a credit report is the percentage of your outstanding credit card amount as against the credit limit of the card. Lower the percentage, the better. Higher interest rates can usually throw surprises on people and hence ensure you are in control of your credit card debt. Generally interest rates can raise the balance far above your expectations and hamper your monthly payment capacity while lowering your premium.

Repay the debt, don’t simply shift it!

Though many credit card companies give excellent rates when balances are transferred to their card, it is not necessarily a brilliant solution. Your credit score will not go up, but simply shift your debt. The best method of consolidating credit card debt is through an agency, and not through another card. This method is an improvement that will lower your balances. Besides transferring your balances to another card will also increase the percentage of your credit limit. More the balance means higher percentage and will damage your credit score a lot.

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Fico And Credit Industry

February 12th, 2009

FICO score is the 3-digit number mentioned in your credit history. It is crucial that you understand how it works, especially if you want to make large purchases.

FICO is the acronym for the Fair Isaac and Company, which started credit scoring system in the 1950s. They calculated risk by considering 30 various factors. The three major credit bureaus, Trans Union, Experian and Equifax consider FICO scores while preparing credit reports.

This manner of scoring is helpful in determining the chances of you defaulting on the loan. The credit card, mortgage industry and installment loan industry have been following this process for various years. A credit score simplifies the task of the lender by segregating the loan applicants quite quickly. For people with a high credit score, their applications get a cursory glance but high rating. On the other hand, a low credit score results in rapid review and equally rapid rejection.

Credit scores lie in the range of 300-900, with an average score lying between 500-800. A score in the 500s is considered very low. This tells the lender that the borrower is very risky with high chances of default. A score in the 600s is considered intermediate. Here the lender will scrutinize your payment history. In all likelihood, you will have to provide written explanations for your negative credit before you can get new credit. Some lenders will refuse credit to people whose score lies below 640. A FICO score exceeding 680 is high, which means the risk for the lender is low and translates into lower costs for you.

Every reporting agency gives maximum of 4 reason codes when they post FICO scores. This provides explanation for the low score on the credit report. The reason codes have a major impact on the credit score. Once you take care of these issues, your FICO score can rise up dramatically.

The following are major factors that affect your FICO score:

Number of accounts opened within a year.

Zero current credit card balance.

Small credit history.

Delinquencies

Credit card balances at their highest.

Tax liens, judgments or bankruptcies.

Plenty of credit inquiries.

Insufficient revolving credit accounts.

Keep in mind FICO scores are simply guidelines. There are other factors besides FICO score can have an effect on underwriting decisions. In the cases listed below, the lender can be more relaxed:

Big down payment.

Minimum debt-to-income ratio.

Excellent track record of saving money.

Old paid loan with present lender.

Access to home equity or collateral.

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Orchard Bank Credit Cards

February 12th, 2009

One of the most stressful things that one has to put up with is the poor credit. But do not let it scare you. Remember there are ways and tools that will help you repair your credit. The Orchard Bank MasterCard is one such tool.

What do you get in general

There is no generic explanation for selecting credit cards to prop up your FICO score. But there are some general expectations from this group. Though correct or not, lenders consider lower FICO scores as riskier. This means heavy interest rates and lower credit limits. This will be much more obvious in the first year. You start out with the credit limits from $250 - $1000. In all probability, it will close to middle or the lower end. The other important feature of this section is an annual fee and process fee. These fees help banks to reduce the risk of default.

What you get from Orchard

Orchard Bank is a subsidiary of HSBC and has earned a name for itself as a provider of salvation card for people looking forward to repair their credit. Its credit card products share some unique features. First they assure an offer only once the application process is over. Though it does not mean an unsecured card, their approval process is quite relaxed to give a chance to all to begin their credit repair process. They have range of cards with various types of commitment and credit requirements. These are their main products:

The Orchard Bank Platinum MasterCard: The term “Platinum” states this is the premium product from Orchard. The Platinum MasterCard has all the useful features required for people who want to repair their bad credit. It has slightly higher credit limit and lower interest rate with some attractive features like hotel reservation and car rental service. It charges a $39-$59 annual fee as per the credit history of the applicant. It has comparatively stricter credit history requirements from all the cards.

The Orchard Bank Gold MasterCard - The Orchard Bank Gold MasterCard is very similar to Platinum one. It has a maximum initial credit limit of $1000, with same features, but slightly increased annual fee of $79 and a $19 process fee. The credit history requirements for this card are intermediate.

The Orchard Bank Silver MasterCard - The Orchard Bank Silver MasterCard has the same features as the other two cards, but has an annual fee of $49 along with $49 process fee. The approval rate for this card is higher but has higher interest rates and lower limits.

The Orchard Bank Secured MasterCard – The Secured card is the foundation of repairing bad credit. If you meet with difficulties in getting approved for other cards, this card will surely bail you out. These cards ask you to give a security deposit before using. Usually this deposit is 100%-200% of the expected credit limit after approval. The Orchard Bank Secured cards resemble and work like a normal credit card, and over a period will help you get unsecured cards with higher limits.

If you are diligent in your payments, then these cards are surefire methods of repairing your credit. They send your payment history to the three major credit bureaus every month. This will give you a chance to prove that you can manage credit card debt.

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Airline Miles Credit Cards

February 12th, 2009

Airline miles credits cards give you the chance to fly and save money simultaneously. If you are a frequent flier, you can avail many of the various benefits. If you are a rare flier, the correct airline credit cards will be actually beneficial to you. To find out their detailed working, you should compare the various choices in credit cards available in the market. Though they are all different, they have the same elementary features.

What Airline Miles Credit Cards Offer

The benefit of the airline credit cards is the ability to collect flying miles. When you buy a plane ticket with the credit card, you collect miles for your next trip. After collecting these miles for some time, you can go on a free or a discounted trip. If you fly frequently, you can achieve this goal more quickly. But even if you are not flying frequently, these credit cards can save you some money.

What To Understand

There are various types of airline credit cards in the market. These credit cards have different annual percentage rate, annual fee, and credit limit, as is the case of normal credit card. If you are on a lookout to save money, it is advisable to compare the features of different credit cards. Find out which offers give you the best deal on the airline purchases.

There are various other features of airline miles credit card that are very important from financial viewpoint. But for the airline miles, you should consider other things too. Find out the number of miles you are allowed for each purchase. Some credit cards can give you slightly more miles than the others. Other cards can restrict the redemption of the miles and the airline or flights for which these miles are applicable. This can severely limit your choices and waste your time if you cannot take advantage of this opportunity. So it makes sense to spend some time to study various offers.

If you are not a regular flier, airline credit cards are not very useful. But still infrequent travelers can take advantage of them and hence should be considered.

Airline miles credit cards are excellent choice among various credit card choices. Some allow you to use the miles for an indefinite period, making it an ideal option for infrequent fliers. Select the right card that fits your overall situation. Consider the fees, interest rates and card features and ensure they complement your lifestyle, especially the mile rewards offered. When these two things coincide and you are approved for the card, you can gain massive benefits from the best airline miles credit cards.

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Automotive Credit Cards

February 12th, 2009

If you love earning rewards for using your credit card, then automotive credit cards are must-haves for you due to their excellent rewards. These cards are offered by bigger credit card companies who have a tie-up with automobile majors. The rewards are offered when you use the automotive credit cards to buy a new vehicle or any other products from the manufacturer who has tied up with a credit card company.

If you are unhappy with a specific manufacturer, you can look around to get automotive credit cards that offer deals from the manufacturer of your choice. Some cards offer rewards that are not tied to a particular manufacturer. These cards are appropriate for people who are uncertain about the type of vehicle that they should buy. A few other automotive credit cards do not reward the vehicle purchases but reward the purchases of auto parts and services.

You should understand that these reward points couldn’t be used for car purchases. These rewards points only offer discounts from $1000- $3000. Besides these reward points can be redeemed only against the purchases of certain car models. The rewards are not offered on purchases of secondhand car. You may have to purchase a new car to benefit from the automotive credit cards rewards.

You should be aware of the working and redemption of the credit cards rewards systems. Keep in mind that automotive credit cards carry fees and interest rates too. If you select a card with a high interest rate, you may spend more money instead of saving money on the car purchase. Do not be tempted to purchase unnecessary things simply to get reward points.

The automotive credit cards are beneficial for you if you are certain about the type of vehicle you want to buy. Select the credit card that matches your requirements. Note that the earned points are valid only for a specific time, so widespread usage of credit card will not assure you any benefits. But if handled carefully, the credit card can save you a significant amount of money on automobile parts, services, and on the new vehicle purchase.

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Rebuild Your Credit History

February 12th, 2009

You can suffer from bad credit from various circumstances, some out of your control. But there is no reason to worry. There are many methods of getting your credit back on the track. One of them is a prepaid credit card, where you do not have to undergo any credit check after applying. You simply have to provide your age, residence and social security number check out to get approved.

To get a prepaid credit card, you have to apply like a normal credit card, but you are required to deposit a sum of money in a corresponding bank account. You must do this in the beginning to get your line of credit. This means you cannot borrow money on the prepaid credit card. But the major cards submit their report to the three main credit reference agencies each month. Hence sensible usage of the card will get your credit back on the track or help you set up one if you do not have any credit record.

If you have used the card sensibly, your card issuer can offer you higher credit line. As your credit history improves, you can easily get a normal credit card or other types of credit like a bank loan.

A prepaid card can be used for online, telephonic or offline shopping as any other card. It is difficult to distinguish this card from normal card. Only you and issuer can differentiate between the two. Hence if you are having problems getting a card, start with a prepaid credit card. It will also help you repair your credit history.

The disadvantage of the prepaid credit cards over the regular credit cards is that you may have to pay a processing fee at the time of application. This is over the deposit you have to give to the issuer for security. If you think this is the beginning of credit repair, then this fee should be treated as an investment in your financial future.

Like any credit card, always shop around and do not apply for the first prepaid card you come across. Different cards have different terms and conditions, and the best card for one may not be the best for other. Visit independent credit card comparison sites to see all the latest best credit card deals and read various articles providing independent advice and information.

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Credit Card Counseling

February 12th, 2009

We cannot control many things in our life. Sometimes we may need to purchase some items but do not have money. Then we use our credit card, buy the item and go away happy. But when the bill comes we are not happy. If you are in this situation, it is advisable to go for advice on handling your finances properly. Luckily, there are various ways on how to do that.

Start by calling up your credit card company. Many companies provide toll-free customer service numbers. Find out from the customer service representative if they can give you a lower interest rate on your account. Quickly, they can inform you whether you are eligible for this privilege. This is the simplest and fastest method of controlling your spiraling balance.

Refer to various websites that provide help to solve your credit card debt problem. You will either get advice or assistance in getting a low-interest debt consolidation loan. Some websites can connect you to a live representative who will guide you through the method of controlling your debt. You can also read various books and listen to tapes that advise on debt elimination. They can be easily bought online.

Whether online or offline, credit counseling is a great way to learn good financial habits. You will understand the mistakes you committed and things you can improve. The services will work along with your present creditors to lower your interest, and at times payments. Credit card counseling will help in improving your credit score and maintain it.

Many times credit counseling is free. Take along your financial details, names of your creditors, and the amounts outstanding. A good counselor will design a plan that is right for your situation and gradually lowers your debt.

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