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November 26th, 2008 Admin
Federal Aid to Go to Credit Card Companies
The Federal Government just announced a new plan that will help credit card companies. Government leaders are working on a new facility that will encourage companies to issue credit cards.
This new program will actually help companies make student loans, finance car loans and issue credit cards. The plan is expected to be unveiled shortly. Additionally, the Federal Reserve announced that it will buy up to $600 billion mortgage-backed assets.
Henry Paulson, the Treasury Secretary, said that a “relatively modest share” of the bailout plan will be used for the new program. Here’s how it is expected to work.
The government will purchase up to $100 billion in direct obligations. These obligations will be purchased from mortgage giants. Another $500 billion will be bought in mortgage-backed securities.
Since the financial crisis hit several months ago, credit card companies have really tightened their standards. A recent survey shows that nearly 60 percent of banks have tightened their lending standards and will continue to do so.
In fact, American Express recently announced its plan to become a financial institution instead of just a credit card giant. Citigroup has also announced its plan for the future. Credit card companies are having to get serious about lending practices to stay afloat. Luckily, these companies will now get government aid. This step alone will do a lot to save the American economy.
When the bailout bill was initially passed, it didn’t look like credit card companies were going to get any federal aid. The tables have turned now as the government realizes what an important role credit card companies play in our everyday economy.
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November 24th, 2008 Admin
Earn More Cash Back Every Weekend
Like millions of Americans, you probably wake up early each morning during the week, go to work and then return home late in the evening. This schedule probably doesn’t leave much time available for family, friends and taking care of even life’s basic essentials. Instead, you spend much of your weekend taking care of things you would much rather do during the week, like shopping, instead of spending more time with family and friends on the weekend. If you find yourself doing most or all your shopping or errands on the weekend and want to earn cash back, there is a credit card perfect for your busy lifestyle.
Enter the HSBC Weekend Card. This cash back reward credit card earns cardholders double the amount of cash back they earn for using the card on Saturday and Sunday. During the week, purchases will earn a 1% cash rebate, while all purchases made on the weekend earn a 2% cash rebate. Here are the important card details:
- Earn 2% cash back on all retail purchases made on weekends (Saturday & Sunday)
- Earn 1% cash on all retail purchases during the week
- No earnings caps, spending requirements, tiers or point expiration
- 0% APR on purchases and balance transfers for 12 months
- No annual fee
This cash back credit card from HSBC is a great way to reward yourself with additional cash back on all your weekend spending. Use the card for grocery shopping, gas, a night out with friends and more. Earning more cash back for what you already do is easy and convenient. Check it out online for full details and to apply.
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November 20th, 2008 Admin
The Worst Department Store Credit Card
What is the worst department store credit card? Sears. Sears. Sears. Sears. Sears. Have I made myself clear? Sears has a fantastic way to sucker people into opening one of their fabulous credit card accounts and then keeping them attached to it for years on end.
Off the top of my head, I know at least five different people that stopped shopping at Sears years ago. However, these five people are still making payments to the department-store-giant. No, these people didn’t get over their head in Sears debt. Rather, Sears has a way of enslaving innocent consumers to their Sears credit card account.
Sears has the highest interest rate of any other department store. Sure, they offer a huge selection of different products. But, if you are going to end up paying $100 in interest on a $50 product, is it really worth it? Not to mention, Sears has recently teamed up with some pretty (excuse me here for a second) sketchy stores. Its new main sister store is KMart. Has anything of value ever come from KMart? Just checking.
Sears may have been worth it years ago, but probably not. It is so much more advantageous to use a reward credit card. You aren’t limited to buy things from one particular store. Instead, you can earn points for free merchandise at many different stores. After all, Sears can’t provide ALL of your shopping needs. Wal-mart can’t even do that. It makes more sense to use a credit card that has a much lower interest rate and one that will actually benefit you later on.
Don’t get a Sears card. It is the worst one out there. If you already have a Sears card, cut it up into teeny, tiny pieces. If you’ve already done this, pay off your balance a.s.a.p. Get a reward credit card. You will save a great deal of money and you’ll earn free merchandise in the process.
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November 19th, 2008 Admin
The Auto Industry: In Serious Trouble
Dealerships around the country have already had to layoff employees and many have even had to close their doors. It appears as thought bailout hasn’t touched the auto industry yet. It remains in serious trouble.
Recently, the three largest American automakers pleaded with Congress. They asked Congress for a $25 billion lifeline. This is the only way, they say, to save their failing companies. General Motor’s CEO Rick Wagoner said, “Our industry…needs a bridge to span the financial chasm that has opened before us.” These automakers say their financial crisis is due to the global financial crisis.
The Republicans and the Bush administration is already opposing the plan. They don’t want to touch the $700 billion financial bailout program that the Treasury Department is already dealing with. The Big Three automakers didn’t find much sympathy on Capitol Hill.
Rather, lawmakers tell these auto manufacturers that they have brought their financial crisis upon themselves. The Banking Committee Chairman Christopher Dodd ( a Democrat from Connecticut) told the leaders of GM, Ford and Chrysler that they were “seeking treatment for wounds that were largely self-inflicted.” However, he did go on to say that if something wasn’t done to save the companies, hundreds of thousands of people would lose their jobs.
Rick Wagoner went on. He said, “We’ve move aggressively in recent years to position GM for long-term success. And we were well on the road to turning our North American business around. Failure of the auto industry would be catastrophic.” He also predicted that three million jobs would be lost within the first year.
The outlook for American auto manufacturers looks grim. Lawmakers continue to work behind the scene to reach a compromise. What would become of our country if the American auto industry completely crashed or failed?
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November 18th, 2008 Admin
Thankfully We Had Reward Points
Every year, my in-laws come from the East Coast to visit us several times. Since we almost live on the other side of the country, it takes them a solid day’s worth of airline travel to finally arrive where we live. My in-laws always enjoy coming to visit us and other family, but as they continue to get older, the hassles and time required of airline travel to visit us seems to get worse with each visit. They experience long layovers and delays on a regular basis and going back to their home, after they have visited us for almost two weeks, always seem to result in some small travel nightmare.
On the last trip to visit us, it was no exception for my in-laws to experience another piece of airline travel hell with long layovers and a delay that would have stranded them. They try to avoid traveling during the winter months, since that obviously increases their chances of delays and travel difficulties. However, even when they visit in the summer time, something always seems to happen. This time, they were going to be stranded at JFK Airport in New York City for the night due to some kind of delay. It was already late at night and with no place to go, my in-laws in their 60’s would probably end up sleeping in a dingy airport terminal.
For almost two years now, my wife and I have exclusively used a rewards card to make almost every purchase. As a result, we’ve been able to accrue a sizable amount of reward points that we’ve used for hotel stays and airline tickets. We always try to have credit card rewards points available in an unfortunate situation like the one my in-laws were in to use if necessary. While my in-laws anxiously waited in that JFK terminal, I was able to contact a hotel who had a room and free shuttle available between JFK airport and the hotel’s location. This would allow my in-laws to stay the night in a clean, comfortable hotel room instead of the dingy airport terminal. Before I booked the room for them, they had gotten word that they would not have to stay the night in New York and that the airline had made arrangements for a departure within the hour.
Even though we did not have to use any reward points for my in-laws that night, it was convenient having the points to use if necessary. If you, a family member or friend ever gets into a situation where they are stranded, need help or otherwise, having those reward points available can be a relief in a difficult situation. Find a reward credit card that fits you and your lifestyle best.
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November 13th, 2008 Admin
Finding a Good Debt Consolidation Company
Is it hard to keep track of all of your payments each month? Is it hard to remember which loan is due which day? If you have a hard time keeping track of all of your monthly payments or just want an easier way, look into debt consolidation.
Debt consolidation take all of your monthly payments and combines them into one easy, affordable program. Instead of dealing with five or six creditors, you deal with just one. The only creditor you have to deal with is the debt consolidation company. Debt consolidation companies go to work getting you better interest rates, lower monthly payments, better payment options, etc.
Finding a good debt consolidation company can be difficult if you don’t know what to look for. Many people decide to use a debt consolidation program and choose the first company they come across. This can be a costly mistake. If you are serious about consolidating your debt, follow these tips for finding a good debt consolidation company.
1. Search Online
The Internet provides a wonderful resource to find the best debt consolidation companies. Search nationwide companies and companies that specialize in your area. Don’t just search for ‘Debt Consolidation Companies.’ Search for ‘bill consolidation,’ ‘debt management.’ etc. Make a list of your top choices.
2. Great Service
Choose a debt consolidation company that offers the services that you need. Call each company on your list. Ask them what services they provide. Ask them what fees they charge. Ask them what their packages and rates are. You can get a feel for what the company is like by the way you are treated on the phone. Do they already treat you with respect? Do they already provide wonderful customer service?
3. Reputation
Debt consolidation companies can’t make it very far if they don’t provide good services because people won’t keep coming back. Choose a company that already has a good reputation. Choose a company that has been proven successful. The Better Business Bureau has a list of reputable companies that you can look at. Go back online and check message forums and blogs for anything positive or negative about the company in question.
You must choose a good debt consolidation company if you really want to consolidate your debt. A good debt consolidation company can help you drastically decrease your debt. In fact, you’ll see a difference in a matter of a few weeks or months. Debt consolidation isn’t anything to be lax about. Be sure to choose a company that provides great services at reasonable prices and has a strong reputation.
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November 12th, 2008 Admin
Debt Management Programs
Different lenders offer different debt management programs. There are programs specialized for the person that has a little bit of debt. And, there are programs established for the person that is in a lot of debt. The purpose of these programs is to eliminate debt gradually. Variations of debt management programs include different agreements, services, financial status, the term of the program, etc. Lately, millions of people have begun searching for the right debt management program. Luckily, there are many programs to choose from. Secured or unsecured? Debt counseling or debt consolidation? Debt consolidation or debt settlement? The list goes on and on. All in all, there are two main categories that all debt management programs fall into: unsecured debt management programs and secured debt management programs.
Secured Debt Management Programs
Secured debt management programs use collateral to secure the loan. Collateral could include, but is not limited to, your home, your car, a piece of real estate, an investment, etc. Lenders like to use secured debt management programs because if you stop making your payments, they take over the collateral. Interest rates are usually lower and payment options are usually more flexible with secured debt management programs.
Unsecured Debt Management Programs
Lenders do not like to use unsecured debt management programs as often as secured debt management programs because there is nothing to protect them (except your signature) in the event that you stop making your payments. Unsecured debt management programs typically have a much higher interest rate and more rigid payment terms.
Debt Counseling
A licensed professional teaches you about managing all of your debt. These professionals teach you how to avoid debt, give budget help and how to eliminate debt gradually. Often times, these professionals can tell you exactly which program will suit you the best. Many non-profit organizations offer debt counseling free of charge or you could hire a debt counselor through your financial institution.
Debt Consolidation
Debt consolidation programs are the most common program. With this program, the debt consolidation company handles almost everything. They contact your creditors for you and set up a payment plan and to reduce your interest rates. The debt consolidation company then combines all of your monthly payments into one payment. You make one monthly payment to the debt consolidation company. The debt consolidation company takes that one affordable payment and pays all of your creditors each month. This is a good program to use if you have bad credit because the plans are the same for everyone, regardless of their credit score.
Debt Settlement Programs
Debt settlement programs are often known as debt elimination programs. These programs allow you to pay off all of your debt in only one or two years. These companies also negotiate with your creditors to reduce both the debt and the interest rate. Interest rates for debt settlement programs are often times much lower than other programs.
As you can see, there are many debt management programs to choose from. This isn’t an all-inclusive list, but does offer wide categories to choose from. Seek the help of a financial professional to decide which program is best for you and your family.
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November 10th, 2008 Admin
A Little Less Credit Card Junk Mail
What is the number one marketing tactic for credit card companies? Credit card mail offers… otherwise known to you and me as ‘junk mail’. Well, I have good news for you. You are going to receive a lot less junk mail in the coming months.
In general, marketers are beginning to think twice about mail offers. These marketers don’t seem to think that bombarding you with what you term as ‘junk mail’ is worth it. It is projected that credit card companies will be cutting these mail offers by one billion by the end of the year. Home-equity mailings have been the first to be cut. New statistics from the 2008 third quarter give us a glimpse at how drastic these cut backs are.
There was a significant 66 percent decrease in home-equity credit mailings in the third quarter alone. During the same period last year, credit companies sent out 215 million home-equity credit mailings. This year, only 72.9 million were went out. Last year, 324.1 million mortgage mailings were sent out. This year, only 182.4 million were sent (that is 44 percent less than in 2007).
Which institutions are cutting back the most? Charles Schwab and Citibank. Charles Schwab sent out 95 percent fewer credit offers while Citibank cut their mailers by 98 percent. Even Bank of America and HSBC are joining in on the new trend. Bank of America sent out 49 percent fewer unsolicited offers and HSBC sent out 44 percent less.
So, why the change of heart all of a sudden? Credit card companies, mortgage lenders and other institutions have been hit hard by the recent economic collapse. Institutions, such as these, are realizing that people with good credit don’t need and aren’t going to apply for another (or two or three more) credit card(s).
Maybe this financial crisis isn’t as bad as everyone makes it out to be? Well, maybe not. But, at least you will be getting fewer credit card offers in the mail. That is sure to make this last quarter, or holiday season, one to remember.
Posted in Credit Card Offers | 1 Comment »
November 7th, 2008 Admin
Tis the season to use your credit card! What better time of year than the holiday season to build credit, gain rewards, and take advantage of the convenience of your credit card. As you embark on this year’s gift giving keep in mind that by simply using your credit card to purchase those gifts you can earn that much needed cash back or those vacation points for your winter getaway, and do it all with out the usual hassle of waiting a check or keeping your debit account stocked.
Many retail stores and also online businesses have made it just as convenient to use your card as it is to just use cash, so dust off that credit card and be the smart shopper by using it for all of your holiday needs. Some retail stores even offer added incentive to use your credit card such as an additional percentage off your balance or even a free gift at purchase. If you already have that Christmas fund ready and waiting for your holiday spending then keep it safely stored in your bank account until the season comes to an end, then use that cash to pay off your holiday tab and wa-la! You’ve just earned yourself your own personal reward (whatever your credit card offers) for being a smart consumer. It’s that easy!
In case you haven’t found enough reason to shop with your credit card this holiday season, another benefit is that by doing so you will automatically have an itemized reference to refer to all year long; the general amount you need saved for the next year of holiday shopping, a reminder of the stores you shopped, and also a reminder of those rewards you earned!
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November 6th, 2008 Admin
Credit Card Traveling
You can make the most out of your budget when you travel with credit cards. Cash back credit cards, reward credit cards and travel credit cards make it easy to save money on your next trip or vacation.
Check out these top reasons to use your credit card for traveling:
-You are only liable for $50 if your credit card gets lost or stolen
-You can get a refund on challenged charges
-Your credit card also may offer special warranties, guarantees and deals
-You can get a better interchange rate on overseas currency when you use your credit card
-You can obtain an itemized record of your spendatures
These days, it can almost be too overwhelming to go on a trip or vacation. You have so many things to worry about…luggage, extra airline fees, security checks, passports, boarding passes, etc. But, using your credit card can make your trip more enjoyable and less of a hassle. Follow these tips to make the most out of your budget management and to make your trip a good one.
1. Provide a paper trail.
You can create an electronic paper trail just by using your credit card on your trip. Your credit card company can provide you with an itemized list of all of your spendatures from your trip. It is also helpful to save receipts just to double check all of your records.
2. Plan ahead.
Before you leave, make copies of everything you are taking with you. Make copies of your passport, your credit cards (front and back), airline tickets, etc. Leave all of these documents with a family member or friend. Be sure to take the phone numbers of your credit card company with you, just in case. Credit cards make traveling a lot easier, but you still need to make sure you are prepared.
3. Lighten it up.
Don’t carry every ounce of personal information with you. This makes you a much easier target for thieves. Only carry those items that are absolutely necessary. Never put your credit cards in your luggage. Keep it with you at all times.
4. Fees.
Shopping abroad can charge outrageous fees. Keep a look out for these fees. Be sure to use a wide variety of cards so that you can avoid these fees. Using your credit card can also save you money at the ATMs. ATMs are often the best places to find the best exchange rate.
Traveling with your credit card can really take the hassle out of traveling. You need to make sure that you are smart traveler and are prepared at all times. Don’t leave for your next trip without following these simple tips and certainly without your credit card.
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