Money

25.credit cards-a must have product in your wallet

Credit cards have become a way of living today. We can not do away with it and why should we? Credit cards are a complete package these days. Apart for the basic task of making financial transaction on credit for you that you are supposed to pay by month end, they are in to whole lot of other things.

 

Credit card activities are so diversified these days, they are required in almost every place. Apart from the regular credit cards there are also –

·        entertainment credit card

·        gas credit card

 

These credit cards make living simpler.

 

There are various types of credit card to fit in every pocket –

 

·        secured credit card

·        unsecured credit card

·        pre paid credit card

 

These credit card companies have a huge base; they cater to the needs of every section of society and also lure them with special offers suiting their interests. Market has special credit card for –

 

·        credit card exclusively for women

·        credit cards for students

·        credit card for people with good credit history

·        credit card for people with poor/bad credit history

 

These credit cards have a holistic approach in the offers they give. These offers are useful for all the three parties involved, user, trader and credit card issuing company. Let us have a look at the attractive offers of credit cards –

 

·        air mile reward points for frequent fliers

·        cash back offer on total purchase

·        gift certificates

·        reward point redemption

·        vouchers

·        free dinner for premium customers

·        free tickets to popular shows

 

The list is endless. Every other day there is a new addition to this list.

 

There are a few terms that one should be aware of while dealing with credit cards. This financial terminology can be a little confusing for the first time users but once you understand them, it is a smooth sail. These terms are –

 

·        Annual percentage rate

·        Interest charges

·        Balance transfer charge

·        Penalty charge

 

One should know the rates and basic calculation process of these rates to be on the safer side.

 

Security has always been one of the biggest drawbacks of credit cards. Though, this has never diminished the enthusiasm of credit card buyers and users. There are few things one should always remember while transacting with credit cards. First and the fore most being- never let the credit card out of your sight. In case of theft or fraud immediately inform the concerned credit card company.

 

United States Federal Law is strict on these credit card frauds. One need to be cautious of internet scams. Hackers break the encrypted code and then misuse the credit card details. When ever you are making any transaction with your credit card via internet, make sure that the website is well protected and log out as soon as the process is complete.

 

A little precaution can save lot of hassle at a later stage. Be careful while purchasing the credit card.

 

Credit card is a product of great convenience and fun but should be handled with maturity and care.

 

 

 

How to Manage more than one credit card

Having three to four cards at a time in your wallet is a common thing and no big deal. In fact, economists have quoted this culture of keeping so many cards in America as, “America’s love affair with credit card”. People in developed countries just can not think of a life without credit cards, they have become a part of our life and living.

 

It is not a problem purchasing five or ten cards but the problem begins when you mix up their statements and bills. And then because of this confusion, you might miss out payment of a due credit card thus unnecessarily paying extra money as late or penalty fee. This then pinches your pocket a little too hard.

 

This also leads to unnecessary waste of time and energy. This does not mean that you should not have multiple credit cards; all I emphasize upon is the process of streamlining these credit cards. By doing so, you can manage each of them properly and not waste your important time brooding over financial settlements.

 

There are few tips to manage multiple credit cards –

 

·        Make an excel sheet in your laptop regarding info of all the credit cards. This will also help you to cross check, if any, discrepancies in the statement bill that you will receive every month end. Also make a column mentioning the expiry date of each credit card. Set a reminder to that date of expiry, so that even if you miss it, you can be reminded. Also set reminders to the pay dates so that you don’t miss any important date.

·        Pay your credit card bills online. That is much easier and less time consuming than the traditional mode of payment. Just ensure that while you pay online the website is protected. Remember to log out as soon as the process is complete. Avoid financial transaction of such type from public access computers.

·         If you have different due dates of payment for all five to ten credit cards, then chances are that half the month will be spent in paying the bills. So it is best to reorganize all the due dates and fix it say between 7^th and 10^th of each month. In this way you will never miss any date. You will automatically get in to the habit of paying up the due payments around this time. Basically it is best to adjust credit card payment timing with receiving of salary.

 

Automatic payment mode is also not bad if you are confident of that credit card company and already have a long and good working relationship with them. The credit card dues will automatically get deducted from your salary account. Though always keep the option of intimating or getting your approval before the final deduction. Through this mode of payment, you will save your time and energy, all you will be required to do will be to see the credit card statement and give your approval.

 

Book marking the credit card company’s website for instant referral and also setting up automatic reminders is very helpful. A word of caution here is do not keep logged in to these financial website, log in when you require and log out immediately after you are done with. These credit card website also have option for automatic reminders, choose them. They will send you mail or SMS, once you due date for payment approaches.

 

By using these simple but logical procedures you can cut down on your financial confusions and debacles related to it. Enjoy juggling multiple credit cards with ease!

 

Credit Card with diffrent group

Credit cards have come a long way from one card for all users to custom made credit cards. Earlier there was only one scheme and utility of credit card. But now we have credit cards in market that cater to the needs of every section, every group of people, as if the credit card is tailor made to suit your particular interest. These days you have credit card for

 

·        Credit card fro those with good credit history

·        Credit card for those who have bad or no credit history

·        Credit card for people who spend more

·        Credit card for people who spend less

·        Credit for women

·        Credit card for students

 

So you have credit card to suit almost every ones’ needs.

 

 

If you are the one with good credit history and are a regular user of credit card, then there is no dearth of lucrative schemes and offers on credit card. You can avail cash back benefit, airline redemption, shopping discounts and much more. As in financial terms, you have credit cards that offer very low interest rates and even 0% introductory rates. So much to choose from that you might just end up buying more than one card. You are also given additional benefit of having a personal credit accountant to help you in the processing of transaction. He can also suggest you on how to in-cash upcoming deals, bonuses and offers.

 

Credit card for women has everything to make them happy. These credit cards especially designed to coax and cajole the fairer sex is full of shopping discount offers, discounts on beauty treatments, discounts at café, hotel or restaurant. They also have cash back that can be up to 5% of total purchase and that is quite a saving. These credit card also offer vouchers and gift certificates for places of interest to women folk like spa or a new garment shop.

 

Credit card for college student requires no credit history, for you don’t expect them to have one. Instead credit card for college students comes up with building credit history offer, where in if you manage your credit properly and also pay back in time, you are awarded bonus points that can be in the form of a ticket to a popular MTV show. More over introductory prices are 0%, so you need not think much to buy a credit card.

 

People with poor or bad credit history need to feel left out; they can opt for secured or unsecured credit card. Also reputed credit card company also helps you to re build your credit history.

 

So you need not worry, what ever your situation is, what ever your demand is, what ever you requirement is- credit card company sure have an answer to it. Credit Card Company will surely offer you some thing to suit your own bill.

 

 

What elements should a good credit card offer?

There is so much competition in the credit card market. Every day companies are coming up with new and innovative ideas to lure in more credit card user. Also the credit card users are not using only one credit card; they usually have two or more credit cards of different companies. So then for a credit card issuing company it is not only about selling a credit card, it is also about maintaining it. And to ensure that the consumer uses credit card of their company only, these companies go through cutting edge competition.

 

In such a scenario, customer is the king. He has endless choices and options but one needs to spot out the best credit card in between all this junk and confusion. Many credit card companies confuse the customer with their offers and as a end result, consumer has to pay more than he thought he would do.

 

There are certain highlight features that differentiate between a good credit card and a bad credit card.

 

In a good credit card, APR will not only be less but also the calculation process will be easier. Some credit card companies try to fool the users by promising them lower APR and then later calculate it in such a manner that the rates are exorbitant. APR is calculated in certain parameters and if these parameters are not clearly explained to the user he will naively be trapped in to paying more. So clarification on APR rates and the process of calculation is important.

 

Every credit card comes with a bandwagon of offers and benefits. But what you as a user of credit card should understand is the utility of these offers.  This is what differentiates a good credit card from a bad deal one. For example one credit card, say A gives you free air ticket on completion of 100 points while other credit card, say B gives you the same offer at 75 points, you will naturally be tempted to buy the second one. But, wait, also check that how much point they are giving on each air mile, may be credit card A gives 1 point over each air mile while credit card B gives 1 point at 10 air mile…..so in this way you will earn rewards faster in A and not on scheme B.

 

Thus you need to check on the peculiarities of these aspects also if you want to strike a good deal.

 

Check out the balance transfer rates also. This will help you to transfer credit pay back from high interest rate card to low interest rate card. A highlight feature of good credit card is that it comes with a systematic support center. A support center that is approachable and helping goes a long way in consolidating the relationship between the user and the credit card company.

 

Choosing the correct credit card for student

There are certain parameters that will help you choose the correct credit card. As a student credit card applier you should be first ready with few documents that will come in handy while applying. These are the basic document that is required by the credit card company as a proof of your identity. These documents are –

 

·        Date of birth documents- this is required to verify the age of the applicant

·        Address proof – this can be any of the bills like electricity or gas bill that has address written on it. This will be required as a mailing address also.

·        Social security number

·        Driving license number

 

These are some of the basic documents required.

 

Now comes the important question that if you are a student on a look out for just the perfect credit card then what points to consider. Every credit card comes with a set of features, they have their own pros and cons. As a student you have to analyze your spending and then decide accordingly. Two things that you need to do before setting on to credit card hunting are-

 

·        Analyze your spending habits – it is important to sit for a while and write down your main expenditure, especially those that you generally require to do via credit card. Depending on the factors of spending as – what are you spending on, how much are you spending, you can decide the credit card that fits the bill perfectly.

·        Gather information – gathering information about what credit card is all about, what are the plans, what are the offers, how are calculations done, what are the extra costs or hidden costs involved- will help you greatly in making the right decision.

 

What should you look for while deciding on a credit card to buy? There are various parameters for this purpose-

 

·        APR is a very important parameter. Usually the student credit cards are little relaxed on this issue. But this relaxation is only for a short duration, some where around 6 to 8 months. Basically introductory offer of 0% APR is given to almost all student credit cards. But what you should be interested in is not the introductory offer, for remember it is an advertising gimmick. Check out the Annual percentage rate that they will be charging. Depending on this you can make your decision. It is best to go with the lowest possible APR as a student. For you might not be in a situation for taking bigger credit. More over as a student you might also delay your pay backs; lower APR comes in as a saving grace that time.

·        Look out for other introductory offers, apart from APR. go for a credit card company that offers more than this basic and regular offer. See the other rates like balance transfer rate is also less. This is helpful you to easily transfer balance from one card to other.

·        Look out for additional benefits and reward points. Some credit card companies offer earn thank you scheme. Cash back offers are also good. Frequent fliers scheme might not be useful to you. Go for schemes that seem possible and not those high sounding ones that will be difficult to even achieve.

·        A penalty fee is an important parameter. Students are usually on the defaulter’s list of the credit card companies. So it is best to go for a credit card that charges the least for late payments.

 

These are the basic parameters to check for while purchasing a credit card.