The Finance Factor

With all the talk lately about credit card issuers raising rates, and those card issuers doing all they can to maximize their profits before the new rules take effect, it should come as no surprise that many are moving to variable rates.

Bank of America, JPMorgan Chase, Discover Financial Services, and Captial One have already switched a portion of their accounts to variable rates, which are based on a margin over and above the U.S. Prime rate.

Already, about 66% of all credit cards are on a variable rate schedule, a number which is expected to rise to 75% before long.

The only reason some card issuers are sticking with fixed rate offerings is competition. They hope to stand out from the crowd and gain more business by offering their customers some security with regard to interest rates.

What does this mean to you as a credit card holder? No notice.

Under the new laws, cardholders must receive 45 day’s notice that a fixed interest rate is going to change. This portion of the law goes into effect on August 20 and replaces the previous rule that gave only 15 days’ notice.

Continue reading ‘Does Your Credit Card Carry a Variable Rate?’ »

A few of the banks that received federal government bail out money are raising credit card interest rates and fees, thus, angering some consumer groups and drawing the attention of a Congressional Oversight Panel. If your credit card interest rates have been recently increased, debt management can help you manage your re-payments.

Credit card interest rates are usually based on four different factors- your credit rating, your debt to income ratio, your employment history, and re-payment history. Interest rates are usually tied to the US Prime Rate, that is the interest rate set nationwide by the Federal Reserve Board (FRB). Credit Card Interest is usually calculated at the end of your statement period, and then charged to the consumers account on the last day of each statement period. Good management of your credit will have a definite impact on the credit card interest rates you qualify for.

Credit

Credit card issuers have been drawing fire for raising up interest rates on card holders who aren’t even behind on payments, but whose credit scores might have fallen for different reasons. Debt counseling, or signing up for a credit management plan, is becoming very common in today’s economy. Lenders usually will grant lower interest rates on the condition that you have been making payments on time and continue to make the fixed monthly payment until the debt is paid in full. Companies have also been affected by the down-turn in the economy and because of this they are tightening restrictions to get credit and are even raising interest rates for a lot of card holders.

Continue reading ‘Credit Card Interest Rates – Based On Four Different Factors’ »

The term Mobile Banking sounds like it means being able to bank while on the go – and in a sense that’s just what it does mean. You see the way we handle our money has changed dramatically in the last 50 years. It used to be that we kept our money in our wallets and took it with us everywhere we went so we could buy our groceries, clothes, sundries, etc. In the last couple decades we started carrying plastic with us everywhere we went and less cash. But now we’re changing again and that’s where mobile banking comes in.

In today’s world, it’s not so much that we carry our money around with us as we expect our money to follow us around everywhere we go. It’s not enough to write a check at the grocery store, we also want to know our balance before we spend. It’s not enough to merely whip out a credit card or debit card at the dry cleaners, we want to choose which bank account we use to pay with. And we don’t want to pay bills just at our kitchen tables anymore; we want to pay them when we’re riding the train into work each day too.

To accomplish all of this bank’s have had to turn to mobile telecommunication devices. Most financial institutions have been furiously writing software that makes their financial services available on these devices so they can compete with each other. The result has been that you can do your banking with just about any national bank or Savings and Loan and make purchases, receive account alerts, make deposits, transfer money, and even complete very complex investment transactions all on your cell phone. Continue reading ‘What is Mobile Banking?’ »

Your home is your most valuable asset, and many people are finding that being a homeowner has great perks – such as raising your ability to borrow money that you need for the expenses of life. Because your great payment history over the years has resulted in built up equity in your home, most banks are willing to loan you money against that equity in the form of a homeowner loan.

Some uses you may have for a new homeowner loan include remodeling or repairing your residence, adding a swimming pool, basketball court or other improvement, putting down new flooring or carpeting, installing a new roof or solar panels, paying for education for yourself or your children, taking a vacation, or even paying down other debt. Continue reading ‘Homeowner Loans For Every Budget’ »

A lot of folks hear “credit cards” and immediately associate them with little plastic money traps. What some of these people don’t realize is that they can use zero percent credit cards to actually come out on top financially. Now, this isn’t a get rich quick scheme – you won’t get rich at all doing this. This method is simply just a way to make a little extra money charging purchases to your credit card – something you do anyway.

The first thing you need to do is apply for a purchasing credit card that has an introductory interest rate offer of 0%. If you’re credit score allows, try to get qualified for one in the six to 9 month range. I should mention, the difference between a purchasing card (what we want) and a balance transfer card (also available) is that balance transfer cards are used for paying off large balances, and should never be used for spending. Purchasing cards are used for, you guessed it, purchasing. With a zero percent purchasing card, you can spend as much as your budget allows, and not accumulate any interest on your balance until the introductory rate expires. Continue reading ‘How You Can Make a Profit With Zero Percent Credit Cards’ »

Today we use credit cards more and more in our lives. We use them to pay for just about everything in this modern world we live in. Society uses them to purchase gasoline for their cars, buy groceries, and for goods and services wherever cards are taken as a payment method. Basically there are 4 types of cards that are used in the United States for the most part. They include entertainment and travel cards such as Diners Card or American Express which require their balances be paid in full by the end of each month. These cards typically have pretty liberal spending limits.

The next type of cards are bank cards such as Visa and MasterCard. These cards are supported mainly by major banking institutions in the United States. The bank of course sets up each card holders spending limits. It may also be called credit line or line of credit. Each of the cards offer various terms and conditions for use of the card. Examples include the interest rate, minimum monthly payment and the cards billing cycle, meaning the amount of time you have make a payment on your balance. Banks usually offer a choice of payment types. You may pay your balance off in full each month or you can make a minimum payment that will include a finance charge. Continue reading ‘Types of Credit Cards Used Most Often Today’ »

All of us need to have good credit in order to qualify for home mortgages, credit cards, car loans and more. However, many of us have had financial problems in the past and the current economic recession has just compounded that for many of us. There are however, steps that we can take to repair our credit so that we can get back to some stable ground as far as our credit ratings go.

When you get ready to begin repairing your credit you will need to get a report from each of the three major credit reporting agencies, Equifax, Experian and TransUnion. You are entitled to receive a free report one time each year or you can also get a tri-merged report for a fee. The tri-merged report will have all of the information contained on each report in one easy to read format. It may be easier to assess all of the information if it is all on one report. Continue reading ‘Begin Your Bad Credit Repair Journey Today’ »

Bankruptcy and You – Understanding Credit Cards and Credit

Bankruptcy reform has made it more difficult than ever for people to file bankruptcy and enjoy being able to just get rid of credit card debt when they cannot afford it. However, this increase in difficulty when it comes to debt relief has led to credit card companies that are more aggressive than ever before. There is a great debate among the ABA, or American Bankers Association, about who is to blame for credit card debt and so many bankruptcy cases being filed. The lenders blame the consumers, while some blame the creditors for being too aggressive.

There will never be a definitive answer as to who is at fault. However, in order to make sure that consumers are safe no matter what creditors are doing, it is important to be informed. It IS harder than ever to file bankruptcy if a financial debacle is created. It isn’t hard to find debt relief services or companies that can help with debt settlement. It is the responsibility of the consumer, no matter how persuasive creditors might be, to avoid becoming another statistic of credit card debt and let debt take over their lives. Continue reading ‘Credit Cards and Bankruptcy’ »

Zero percent credit cards are lines of credit which include introductory offers of 0% for a predetermined period of time. During this time, depending on whether or not the customer goes with a balance transfer or purchasing option, they have often as much a year to either pay off a previous credit balance (balance transfer), or accrue zero interest on spending done with their credit cards (purchasing).

In responsible hands, zero percent credit cards can be extremely valuable tools that one can use to work wonders with their personal finance. Unfortunately, not everyone has proven themselves to be effective at accomplishing such a feat. Since 2008, the amount of 0% percent credit cards offers has dropped to just 52 – that’s 45% in just the past year. In addition, zero percent balance transfer introductory plans that once lasted as long as 16 months, have dropped to an average of less than 10 months. Continue reading ‘Zero Percent Credit Cards Are Becoming Extinct’ »

“I am Dracula, and I bid you welcome” . . . Bram Stoker

Thinking about going to a haunted house for Halloween? Save your fright for home and just open your credit card statement. When you do, you might scream louder than Fay Wray on top of the Empire State Building.

Credit cards have been scary since American Express issued the first one in 1958. Because they are mass marketed, non-secured loans; they are as risky as getting bit while taking a nap inside the zoo snake exhibit. Because credit card companies protect themselves from people who don’t pay, they slap everyone with high interest rates and penalties. Despite these high costs, Americans carry $972.73 billion of credit card debt with the average household carrying a balance of $10,679*. That alone is scary enough, but it gets worse. Continue reading ‘The Terrifying World of Credit Cards Just Got Scarier’ »