Common Credit Card Terms And Their Meanings

Writen by Karyn Kudrna

When shopping around for a credit card, it is very important to understand the terms and fees that each card offers in order to make an informed decision regarding the best credit card for you. Because these terms affect your overall cost, it is important to compare the terms and fees of various cards before opening an account.

Annual Fees

These are the annual membership fees, or participation fees charged by some card issuers. They can range from $25 up to several hundred dollars.

Annual Percentage Rate (APR)

The annual percentage rate, or APR is the cost of credit as a yearly rate. By law, this rate must be disclosed to all applicants of a credit card. This rate is often variable, meaning that it can be raised or lowered depending upon the performance of the index, or econonmic indicator, that it is linked to.

Balance Transfer

This is the process of transfering an unpaid credit card balance from one card to another. Often the card receiving the balance will charge the card holder a balance transfer fee.

Cash Back

Some credit cards offer cash back incentives to the card holder. These offers usually mean you will receive some percentage of the total amount charged to the card monthly, quarterly, or annually. This percentage may be paid to you by check or may be reflected on your account as a credit.

Grace Period

This is the period of time offered by some cards that allows the card holder to pay the balance in full without accruing any interest charges. If your card does not offer a grace period, then you may be paying finance charges from the date the card is used.

Introductory Rate

Credit cards often offer special "introductory rates" to new card holders. These rates may be as low as 0% for a specified period of time. After the introductory period ends, the annual percentage rate will increase to the cards regular ongoing rate. It is important to know what this rate is as well as how long the introductory period lasts prior to applying for one of these cards.

Transaction fees

Some credit cards will charge additional fees for transactions such as cash advances or balance transfers. Late fees may also be applied when a payment is received after the due date.

Karyn Kudrna is owner of the website http://www.credit-123.com which offers information on low interest credit cards

5 Tips For Finding No Credit Credit Cards

Writen by Rebecca Spitzer

Millions of people have trouble with their credit each year. From late payments to bankruptcies, families and single individuals work to overcome their poor credit histories and find a way to get along in this world of fast cash and credit card payments. So if you have poor credit or no credit at all, how do you get a credit card? Well, poor credit and no credit are different, but the methods for finding a credit card are very similar. So let's go over a few here:

· Check your mailbox. Unless you have opted out of pre-screened credit offers, you should get a few in the mail. Read the fine print and see if any of these offers suit your needs.

· Search online. The World Wide Web is an endless resource for credit card possibilities. You can use search terms like "no credit credit cards," "poor credit credit cards," and "secured credit cards." You will get a list of results that is longer than you need.

· Ask your bank. Many banks these days offer secured credit cards for people with poor or no credit. A secured credit card is simply a card that is set up after you make an initial deposit to your credit account. Usually, this amount is between two and five hundred dollars. After your deposit is made, you will have a line of credit up to the amount of you deposit, depending on the financial institution's regulations. Use your card as you would any credit card, and after a year, you may qualify for a standard credit card that is unsecured.

· Check out college bookstores. Believe it or not, these are great places to find random offers for no credit credit cards. Companies want to appeal to students, who have little or no credit, by offering credit cards for an annual fee. You can ask for any brochures the bookstore includes in bags at the point of purchase.

· Get referrals from people you know. If you have a friend that has overcome bad credit or has built their credit from scratch, ask them how they did it.

Rebecca Spitzer recommends Find Credit Cards for comparing no credit credit cards.

Credit Check

Writen by Alison Cole

Credit checks are done to determine the credit score of an individual. A credit score is an indication of a person's financial creditworthiness. It is used to verify whether the person qualifies for a loan, or any other credit, based on whether he has repaid his past loans satisfactorily. A credit score is used by banks and other lending companies for estimating how risky the borrower is. In other words, a credit report is a reflection of the past credit history of an individual.

In the U.S., the credit score is based on the FICO (Fair Isaac Corporation) score that is calculated by using some mathematical and statistical techniques. There are also other versions of calculating credit scores such as Beacon and Empirica. A FICO score is based on various factors including punctuality of payment in the past, capacity used (ratio of current revolving debt to total available revolving credit), length of credit history, types of credits used, and recent credits obtained. FICO scores range from 300-850, wherein a score below 600 is considered "bad" while a score above 720 is considered "good". Every U.S. citizen can obtain a credit report from a reporting agency as per the FACT Act (Fair and Accurate Credit Transactions Act).

Credit checks are very useful. Some applications of a credit check are to find out about prospective tenants for renting out properties or to learn about potential employees before offering employment. Credit checks are mostly done by creditors before giving loans.

There are many credit-rating agencies that do credit checks. These do credit checking for individuals as well as corporations. The fee for a credit check ranges from $20 to $1,000, depending on the information required. The three most famous credit-rating agencies in the U.S. are Equifax, Experian, and TransUnion.

There are also independent credit-rating agencies. Information about these can be obtained from the Internet. Many organizations also provide free credit-check facilities when you sign up for any other service with them.

Credit Check provides detailed information on Credit Check, Free Credit Checks, No Credit Check Loans, Collection Agency Credit Checks and more. Credit Check is affiliated with Credit History Repair.

Details Of The Citi Gold Aadvantage World Mastercard Application

Writen by Beth Derkowitz

If you fly American Airlines, have good credit and are looking to open a new MasterCard account, using the Citi Gold AAdvantage World MasterCard application may fit the bill. It is one of several cards that Citibank offers that is designed for people who fly on American.

For each dollar you spend on the Citi Gold AAdvantage World MasterCard, you earn one mile of travel on American Airlines. You can also use earned miles toward hotel accommodations and rental cars. The maximum amount of miles you can earn in any given year is 60,000, but those miles have no expiration date so long as there is some activity on the account once during a three year time frame.

Citicard offers several AAdvantage cards, so it is important to note that the Citi Gold AAdvantage World MasterCard offers 12,500 bonus miles for the first purchase on the card! Its annual fee of $50 is waived for the first year, as well, and this particular MasterCard has no "pre-set spending limit". (All that means is that you can exceed your credit limit on occasion, based on your payment history.)

Currently, the APR for the Citi Gold AAdvantage World MasterCard is 17.99%. For cash advances, the variable APR goes up to 22.99%. If you happen to default on the card, the variable APR can be raised to 31.99%. There are, of course, finance charges for any purchases that are not paid for within the first 30 days, and there are charges for other services like cash advances, foreign purchase and balance transfers.

So, if you travel, want to earn much needed bonus miles, and like the flexibility of having no pre-set spending limit, the $50 annual fee shouldn't affect your decision about applying for this MasterCard. If you pay off your card each month, don't normally spend more than $60,000 on a card per year (which will be the maximum limit of bonus miles you can earn), and like that there are no black out dates for when you can travel with bonus miles earned, you will definitely appreciate the Citi Gold AAdvantage World MasterCard.

For more information or to apply for the Citi Gold AAdvantage World MasterCard, Beth Derkowitz recommends Find Credit Cards.

Share Your Blessings With Charity Credit Cards

Writen by Morgan Hamilton

If you want to contribute some of your blessings to the underprivileged, then you should get charity credit cards. You can show your support for a certain charity with these cards. The concept for this type of cards was created because many people find that they really do not need some the types of rewards that are offered by credit card companies. As a result, credit card companies began to team up with charitable institutions to offer people an easy way to support the charity of their choice. A percentage of the amount charged to a charity credit card goes to the charity every time it is used for a purchase.

A person can feel good every time he or she use charity credit cards. However, while it is nice to donate to charity, this can also be a problem. You see, some people can get carried away with thinking that they are doing good by charging on their credit card. The problem is that they may also be charging themselves into a financial crisis. If people are convinced that they can help other people through this credit card, then they may end up charging more purchases to their credit cards.

If you want to really make a difference then you should compare several charity credit cards to find the one that gives the most to charities. You could also get a credit card that offers cash back and then donate that cash to the charity of your choice. However, you may not be able to find the charity of your choice, even though there are many different credit cards that donate to many different causes. If this happens, you may find a new charity to donate through this way or donate to charity through cash donations. Whatever option you choose, charity credit cards remain very beneficial and the charities of your choice will really appreciate the money that you wholeheartedly donated to them.

A lot of generous people find that charity credit cards are a nice way to use reward programs. This reward program is not a selfish one, but rather one of kindness and sharing. It would be wise to keep in mind that you can always donate money to the charity instead of being compelled to let your credit charges get out of control. You should consider switching to charity credit cards if you are not using the rewards that you are earning through other credit cards.

Morgan Hamilton offers expert advice and great tips regarding all aspects concerning Charity Credit Cards. Get the information you are seeking now by visiting http://www.findqualitycreditcards.com

When Not To Borrow Money Avoiding The Lending Traps

Writen by Morgan James

Although there are some times when borrowing money is financially a sound option, there are other times when borrowing money will only lead to larger problems. Here are five times that it is unwise to borrow money.

1. When you haven't done your research.

Don't get a loan from the first bank that you walk into. Use the internet as one of your valuable tools to find your best rates. Although a one percent difference might not sound like a lot, on a large loan such as a mortgage, it can equal upwards of $10,000 that you lose. Similarly, it will take you longer to pay back such a loan, and you will be indebted for a longer period.

You want to get your loan from a reputable bank or credit union that you feel comfortable with. If you are uneasy about any of the bank or online bank's practices, then simply choose not to borrow. It's your money: make sure you are dealing with someone you trust. Try asking friends and family for recommendations.

2. When you are solicited.

If you get offers in the mail or in your email to borrow money, don't take them. If you need to borrow money, you will seek out the lenders. It is bad news when the lenders seek you out.

This is particularly applicable to credit cards. Credit card companies often have aggressive marketing campaigns designed to lure in new consumers. People sign up for a credit card, thinking that they have made a good decision, or that they will never use the card. If you use your card and don't pay the balance off monthly, you are paying too much interest. Use your debit card instead. Remember: retail and gas credit cards are also credit cards, and are likely to have an even higher interest rate.

3. When you are offered repeated refinancing.

Don't refinance your loan frequently over a short period of time. You might be charged fees for each time you refinance that will add up over time.

Although it might seem like you are getting a better deal by refinancing your loan in the long term, the short term costs for these changes can be considerable. Often, there is fine print in these agreements that will cost you money.

You want to get a loan from an institution (often a bank or credit union) that can offer you stability and security. You not only get peace of mind knowing what your monthly payments are, you will get a better deal from an institution that is not trying to charge you constant refinancing fees.

Occasional refinancing might be fiscally wise, but be sure that you are dealing with an institution that you trust.

4. From fee-based institutions.

You will have to pay interest on any money that you borrow. You want to pay the least amount of interest possible. See if you are going to have to pay any fees or premiums on your loan. These are often not counted in the interest rate and make a loan look less expensive and more competitive than it really is.

Payday loan companies and cash advance companies are notorious for charging excess fees as well as exorbitant interest rates. Avoid these institutions at all cost. A bank or credit union will certainly be able to offer you better options.

Each state has a lending law which states the highest amount a company can charge you interest. In Canada, this rate is 60%. Charging more than a 60% interest rate is illegal, but many companies try to wheedle their way around the law by charging ancillary fees that they do not count with interest. Of late, there has been a rash of lawsuits against such practices. Don't get involved in the first place.

5. Borrowing your own tax refund.

Some companies purport to offer you easy access to your tax refund, and will loan you the money in the interim. This practice, like payday loans, is predatory and bad for the consumer. You will lose more of your tax refund than you will see of it, so avoid this scam at all costs.

Although borrowing money is a part of regular financial growth, and is often fiscally necessary, you want to avoid being caught in these predatory lending practices. Doing your research is the best way to safeguard yourself against any of these monetary scams.

Morgan James is a financial expert who can help you get financially back on track. Check out all of the information that Morgan has to share on loans (payday loans, mortgages, student loans, and more) at http://www.theguideto-loans.com If you are working to get out of debt, be sure to visit http://www.theguideto-loans.com/debt_management/

Collection Agencies What Do They Do

Writen by Steve Austin

Collection agencies are businesses that collect past-due bills and accounts receivable for other persons or businesses in exchange for a fee. Collection agencies charge for their services one of three ways:

1) A flat fee.

2) A percentage of what is collected.

3) Through a direct sale of the delinquent accounts.

If you are trying to collect a small or medium sized debt, using collection agencies that charge a flat fee are probably your best option - collection agencies that charge a flat fee work just as hard to collect a small debt as they do to collect a large debt.

If you have just a few large unpaid receivables, working with collection agencies that charge a percent of the total debt collected is a wise choice. (usually 25 to 50 percent).

The third option, selling your uncollected receivables at a discount to certain collection agencies is advisable only if you have a very large amount of debt - usually $1 million or more. The selling price is typically a minuscule 2 to 8 cents on the dollar.

Most collection agencies use one of three tactics to collect debt:

1) Letters.

2) Direct contact via the telephone.

3) Litigation.

Typically, collection agencies begin the collection process by sending a series of notification letters, often called demand letters. The final notification letter generally warns the debt dodger that if the past-due account is not paid by a certain date, his or her name or company will passed on to more intensive collections.

Many collection agencies also pay their staff to phone the debtor directly. This direct contact is most useful in turning up the heat on debtors who have identified themselves as having no intention to pay their bill.

Litigation — in small claims court or a full-scale courtroom — is a final option.

Besides sending out letters and making phone calls, some collection agencies also specialize in locating debtors who can no longer be reached at the address or phone number listed on their accounts. To determine whether certain collection agencies offer this service, ask them about their "skip tracing" abilities.

Collection Agency Outsourcing - Outsourcing accounts receivable to a professional collection agency has become a popular alternative to attempting to collect receivables in-house.