Monthly Archives: January 2016

Credit Card Tips For Beginners

Credit cards aren’t destructive, nor are they out to get you. In fact, they can do you—and your credit score—a lot of good. If so, why are so many people bogged down by debt? By making unwise decisions about their finances, that’s how.

If you are new to the idea of owning a plastic friend, here are some pointers to keep in mind:

1. Be responsible.
– Having a credit card means having a certain amount of purchasing power at your fingertips, as symbolized by that little plastic card. As we all know from the Spiderman comics and films, with great power comes great responsibility. Make sure you things you need, or for emergencies. Use cash or debit cards as much as you can. It would be a better idea if you just save up for items that are beyond your means, or to abandon the idea of buying it altogether.

2. It’s not free money.
– Having a credit card is no excuse to spend money freely. When you buy anything by charging it your card, you are basically just borrowing the money from the card company. Remember, you still have to pay for it at the end of the month, so be sure you’re spending less than what you can afford to pay at the end of the month.

3. Pay the full amount on time, every time.
– One way the credit card companies make their mega-bucks is through charging you interest. They also charge you extra for late fees, finance charges, and other penalties for one thing or another. Don’t give them this opportunity to make more money off you. Instead, make it a habit to pay your credit card balance in full and on time every month, and this will be a great note in your credit history.

But what if you’re already neck-deep in credit card debt, and sinking fast? One of the first things you should do is to discuss your current circumstances with your credit card provider. If you are currently facing hard times, like termination or illness, you can ask your credit card provider if you can avail of any hardship plan they have in place, in which they allow you to stop payment for at least six months to a year. Because chances are you have other financial obligations crowding your plate, you can also go through credit counseling and get advice on how to manage your financial issues. Typically, debt management is available for many debtors in trouble, where your representative can negotiate payment terms with your creditors. In some cases, a debt consolidation loan can work to your advantage, as it means getting a big loan to fulfill all your outstanding debts.

Tips on Picking the Best Credit Card

best_card_builders-300x300With gas prices skyrocketing, millions of people are flocking to gas cards to help with the rising fuel cost. Gas cards are brand specific credit cards that offer consumers rebates and rewards for using their credit card. Like most credit cards that offer a reward programs, there are specific guidelines that consumers’ need to be aware of. In many cases, a traditional credit card is better suited for the task.

For starters, gas reward cards are designed for people with good credit that pay off their balances on a monthly basis. If you have the tendency to carry over balances from month to month you will be better served using a regular credit card. Reward credit cards in general, have higher interest rates and shorter grace periods. Therefore, when you carry a balance, you will be paying more in interest even after you consider the rewards.

Sixty percent of all gas credit card holders carry a balance from month to month; this is how the credit card issuers pay the reward benefits. When considering gas credit cards, consumers need to take a careful look at the benefits that are offered. Most gas cards offer better benefits as an introductory incentive to attract new card holders. You should look past these initial offers when comparing cards and pick a reward program based on the benefits that occur after this initial period is over.

The most important thing to look for when considering a gas credit card is your driving habits. Will your gas card be used primarily locally, or will it be used for travel? Make sure there are close and convenient stations to use if your card is brand specific. Having to travel an extra three to five miles out of your way to use your gas card can eat in to any benefits that you receive from using the card. Many gas cards offer additional discounts on specific merchandise in specific retail stores; again, what is the proximity of these stores to the station?

Gas credit cards are issued by banks like such as, Chase, Discover or Citibank or by a gas company like Shell, Mobile or Chevron. The most important distinction is that the brand specific gas cards require that you buy their gas to take advantage of any benefits they offer. Ironically, it’s usually the banks, rather than the gas companies, that underwrite and bank-roll the credit cards anyway. The difference is that the gas company credit cards are usually easier to qualify for than the bank issued cards are. The caveat is; interest rates and/or rewards are directly related to your credit. Marginal credit results in marginal interest and rewards.

When comparing benefits, many bank issued credit cards tend to mirror each other. Some of the more common benefits include cash-back rebates that range from 2% – 5%, cash rebates on purchases, 0% introductory rates and no annual fees. On the other hand, the benefits offered by the gas credit card will include things such as air miles rebates, hotel and travel discounts, car repair rebates and rebates on groceries at participating stores. When making a choice on what card to use, choose the benefit that best matches your lifestyle.

A card that we recommend at Direct Banc is the Discover® Open Road(SM) Card. This card offers cardholders a 5% in cash rebate on gas and car maintenance purchases up to 1% for general purchases, and .25% for purchases made at select warehouse clubs and discount stores. Of course, you could consider other cards like the BP Gas Credit Card Visa® Rewards and the Capital One® No Hassle Miles(SM) Rewards for travel and gas. Each of these cards offer a unique reward benefits package that compliment varied lifestyles. Taking time to read the fine print and picking the right benefit is the key to getting a gas credit card that is truly a benefit for you.

Credit Card Tips For College Students

If you are a college student, there is a good chance that you already understand the importance of having a credit card. It can help you out when times get tough, and college students will often find themselves in a desperate need for funds to pay for school supplies, entertainment, and various other things while they are away from home. Although a credit card is certainly necessary to have if you are a student, it is important to keep in mind that there are ways to get yourself in trouble with credit cards. Since you probably already have student loans, it is a bad idea to accumulate too much debt from your credit card while you are in college. Here are some credit card tips for college students.

Choose the Right Credit Card

It is a good idea to make sure that you choose the right credit card if you are a student. You will want to look for one that has a low interest rate and cash back rewards if you want to save as much money as possible. If you travel often to and from school, you may want to consider an airline credit card so that you can earn points that you can turn in for future travel. The actual card issuer (Visa, Mastercard, American Express) is less important than the rewards and terms you get with your card. Regardless of which type of card you choose, be sure to do some comparison shopping before deciding on the credit card that seems most suitable for you. You will probably thank yourself for it in the long run.

Avoid Making Major Purchases

One of the biggest mistakes made by all college students is making major purchases with their credit cards. Although it may seem like a good idea to pay for your tuition or books with a credit card, it’s important to keep in mind that you are going to have to pay interest if you do not pay your bill right away. At the same time, do not make purchases which are too small because interest will cause you to spend much more than you normally would have.

Try to Pay With Cash Whenever Possible

College students should try to pay with cash whenever possible. This will prevent you from using your credit card to buy small items that you could just pay for upfront. Of course, it is also important to be realistic. Many college students only work part-time, so having cash available at all times is probably somewhat unlikely.

These are just a few of the things that college students can do in order to prevent themselves from owing too much money due to inappropriate credit card use. Since credit card debt is a problem that affects so many college students, it’s important to treat your own credit card like a privilege. If you feel that you will be unable to use your credit card wisely, then it may be a good idea to avoid having one at all if you are a college student! If you decide that you can use a card wisely, you may definitely want to look at available low interest or airline credit card offers. Make your decision about which to apply for after reading all of the terms and conditions, and stick to good usage habits.

Tips for Effective Usage of Credit Card

Credit card is considered to be one of the most useful ways of doing online transactions in this fast; developing world. It can be said, as the amount of online transactions increased, the number of companies offering cards have also increased. There are hundreds of offers made by card companies, especially, when companies offer low; interest rates, and offer rewards on a certain limit of online transaction, people get attracted. Each company that offers credit/debit cards, and rewards define certain credit card tips to be followed, to make sure that the card they issued is utilized by the correct person.

Credit card was introduced in America, but as it got renowned it was familiar nearly in every part of the world. The credit tips offered by the Company at the introductory face of credit cards have more or less changed in this modern era. Some of the basic tips which can’t be changed, to make sure your card is secure, are: credit card information shall be kept confidential, if necessary to give information about card; it must not be given through fax or a phone call because these have a tracker system and the information can be leaked out. One of the basic tips is to keep a security check on your card.

There is a point of concern for card holder, the point is that; how effectively manage the credit limit provided in the card? It is easy to overcome this point as there are credit tips available for credit management. Once this problem is finished, it can be said that credit/debit card is the most effective way of online transactions. The effective credit tips of card management are: co – mingling of business and personal transactions should be avoided, the transactions must be itemized which makes it clear when and where the transaction was made. Another effective tip of credit card management is to set an amount limit on the credit card for online transaction. If needed to make a transaction over the limit questions must be set, the answers to which credit card holder can only give.

It has been observed that some of the card users apply for multiple cards, to take advantage of the deals offered by different-card companies. If necessary, for users to sign up with multiple credit card companies than users shall keep them for separate purposes. They can keep one for business purpose and the other for personal use. This helps the card holder to keep an easy record of what he has spent on business and what on his home. Card holders shall also try to fulfill their due balance within time. They shall pay online not through cash because online payments are considered secure. These are some credit tips that must be followed by the card holders so as to make the most of their cards.