Sub Prime Credit Cards

A sub prime card was designed for those with a damaged history. It was created to give people a second chance with credit.

They are often used to help rebuild a low score. They help because you can create a positive payment history and it can improve your utilization ratio. Your payment history and utilization ratio are both very important to your score.

They do report monthly to all three major bureaus. Your APR will by approximately 19% and you will have some fees. Unfortunately this is the cost of your prior mistakes, however this can be the last time you have to pay fees for a low score.

Your limit will be approximately $300 and you will be eligible for periodic increases. However some like the Tribute Gold MasterCard do offer a card with a limit of $70 for those with very bad history.

These will help to improve your score more than a secured account. This is because those accounts are reported as secured to the bureaus and this will be weighted less than an unsecured account.

It is still wise to remove negative items from your report. However it has been discovered that once a negative item ages four years it will have much less impact on your score.

You should know that to get the most out of your card you should try to keep the balance at roughly 20%. This will help because it shows the bureaus that you do use your card and are using it responsibly.

You can still get approval even with; charge offs, collections, judgments, and even a bankruptcy. However each has different approval requirements. Many of them will give you an instant decision upon submission of your application.

In sum we do suggest a sub prime credit card for individuals with a damaged history. It can be used to help you build positive a positive payment history and improve your score.

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Bank Secured Credit Cards - Avoid the Pitfalls

A bank secured credit card is where you pay a deposit into the card as collateral. Normally, anyone who has bad credit or no credit history will be given this option and not a regular unsecured option. For example, if you pay $500 into the card, it means you can spend up to $500, but the deposit will not be used to pay the amount back. The banks usually need a minimum of $300 to open such a credit card.

Many people exist without having to use credit cards at all in their lives. Sometimes a person needs a one to book a hotel, or rent a car, even if you are going to pay cash. The problem comes in when you don't have a credit history, or your credit history is bad.

The benefits of this type of card will be felt for someone who thus has bad credit, or no credit history, allowing that person to improve their credit rating or to begin their credit history, for a person who has a good FICO score, this type of card should not even be an option!

If you can only be approved for this type of card, make sure it has a conversion option attached to it. This will allow you to convert to a regular unsecured card once your FICO score has improved, or has been established within a number of months or possibly up to a year. If you use your card responsibly and pay off your debt regularly and on time, your credit limit may be increased. Rather use this card to make small purchases that can be paid off either fully or quickly to improve your chances of attaining an unsecured card.

The problems with this type of card are as follows:

• There is generally an annual card fee

• Expensive application and processing fees

• The interest rate is high (roughly 22%)

• You only earn 2 to 3% on money you deposit into your account

• Interest starts from the day you use your card (no grace period)

It is always good to look at a number of different secured credit card options. You can find the best option for you in this way. Make sure to read the terms and conditions of each card you look at. Ask the card company if they report to the 3 major credit bureaus, as this will help your FICO score in the future. Often the smaller companies don't report to the 3 major bureaus, but the bigger banks definitely do, making them a better choice of company to work through.

Always do your homework on the different secured credit card options. Some of the offers can really take you for a ride. Go for a card that will have the least fees to pay, otherwise you may be paying money back without having made your first purchase. Remember to read the terms and conditions and be responsible with your money!

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Getting the Best 0 Percent APR Credit Cards

When you're in college there are a lot of times when you need money but you find yourself tapped out. Credit card companies know this and so they send you all sorts of mail to sign up for a credit card. It's actually pretty easy to be approved in college so that many kids get credit cards but end up lost in debt several years later due to exaggerated interest rates on these 'easy to get' cards. They approve you easily because they know they can raise the interest so high that they cannot lose!

I had seen several of my brothers and sisters graduate from college and complaining about all the debt they were in. Just seeing them stress out made me want to think twice about it. One of my brothers told me if I ever got a credit card get one with the lowest interest possible, because it's the interest, not the balance, that gets you. He'd say that over and over again ... 'The interest is where they get you bro'. It was only afterwards that I really saw the usefulness of having 0 percent APR credit cards.

When I got to college I found myself in the middle of a dilemma. I wanted a card but I was a bit hesitant to sign up for one. Looking at interest rates all I saw were ridiculous rates. I went online trying to find a low rate and ran into a blog site that talked about 0 percent APR credit cards and how you can get free credit for life. This, of course, grabbed my attention because free was certainly a low interest rate!

I learned a simple trick that enabled me to perpetually keep getting new 0 percent APR credit cards and never had to pay interest! What I did was got one card and used it during the 'honeymoon' period but just before the interest rate kicked in after 12 months I would sign up for another card with 12 months as well, and I transferred my balance over, canceling the first card. This gave me an additional 12 months interest free! When I paid my monthly balance I never accrued interest! This meant that I never paid more than I spent, and I didn't find myself buried in debt like the others.

When I saw them again (they live in different states now but come home for Christmas) I told them about my trick, and their jaws hit the floor! They didn't believe me at first, then I showed them the paperwork. It was then that I realized how I could use this to show them how to hammer their current debt out by parking their balance on 0 percent APR credit cards, by transferring their balance from the card that was charging them an arm and a leg every month, to a card that charged them nothing. They could just do what I'm doing and pay off the balance. If they didn't use the card they were cool. So far I think it's working, I'm not in debt and my siblings are starting to get their heads above water.

I think the best part of this whole thing was being able to help my brothers and sisters with their problem while simultaneously keeping myself out of debt, well the kind of debt they were in anyway.

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Getting the Best 0 Interest Credit Cards

I never had a credit card in my life before this year. I was around for the credit card revolution back in the early to late 80's but I was about 18 back then. I don't know how I did it but I ruined my credit a few months after my birthday. It wasn't too bad, but enough that I was turned down for a credit card I applied for and never tried again. I consider myself lucky because had I gotten one I would probably be in the same debt as all my friends are in today. That's until I discovered 0 interest credit cards.

All of my friends say if they had it to do over again they wouldn't have gotten a card until they were 30. They say that that's when they started to realize that using a credit card takes certain kind of discipline and awareness to use and not be caught up in the whole debt thing. By using only 0 interest credit cards I avoid this debt trap completely.

Today I can get as many credit cards as I want, as my credit is actually almost triple A and I haven't done anything to ruin it. Actually I've done everything to keep it good! One thing I learned or rather figured out before getting my first credit card was that there are a lot of 0 interest credit cards out there trying to seduce you in with a 6 month interest free introductory offer. The beauty of this is that you can get the card and use it interest free for that time. Once the time is up you simply transfer the money to a new card with the same offer (or even more time!) and you never end up paying interest on the card! This way I'm getting credit, and not paying a penny more than I actually spend! I never fall into deep debt because the interest isn't there. It doesn't exist.

Most of my friends, in calculating their debt, say that it wasn't the money they borrowed that got them, it was all the interest that compounded over the years. I tell people I meet about this nice little trick and people are amazed that I thought of it. The truth, however, is that I didn't come up with the idea; I saw it on this site when I was looking for a credit card to get. The site had a service attached to a resource site of practically all the 0 interest credit cards that exist, so it both saved me money and also the headache of trying to find them. And they email me when the promotion expires (before it does so I can transfer the balance to a new card!). They even offer a free transfer service so I can transfer my balance in one swoop!

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Credit Card Disadvantages For Interest Rate Cuts

With the recent  American Federal Reserve official announcement of interest rates dropping below 1%, it's typically safe to assume that credit cards are cheaper than ever. While lower interest rates make up the bulk of credit value, there are several other factors which will diminish the value of these recent rate cuts.

Stoozing Isn't Possible

Stoozing is the basic way of creating money with credit cards - taking advantage of 0-3% introductory offers and placing that advanced money into a 5-10% high interest savings accounts. When interest rates are high in a period of economic stability, savings accounts rates skyrocket. In times of economic downturn, while 0-3% promotional offers are still available, savings accounts tend to drop as low as a couple of percent.

While there's still room to make money stoozing, the margin of profit is so relatively small that the effort and time involved will generally not compensate.

Consumers get Carried Away

If your interest rate is 20%, you're well aware that you need to be on track of your credit and payments or you'll pay inflated repayments. However when your credit card interest rate is down to the low end of single figures (3-8%), it's easier to adapt a 'carefree' mindset. When you lose discipline and track of your credit cards, it won't be the 6% APR which hurts your $200 purchases - it's the $25 late fee for missing a day on your payments.

More Pitfalls

Everyday people aren't the only ones at stake for loss in a recession - many banks are constantly balancing on a thin line of bankruptcy and liquidation. Thus, they will implement every trick in the book to reap some extra form of revenue from their customers. This often comes in the forms of extra and more expensive 'ancillary fees', which consist of:

• International withdrawals
• Increased administration fees
• Duplicate statements - need an extra statement for any reason? $5-$10 fee right there.
• Supplementary card charges
• Late payments - while these are always present, they will typically be more costly in times of trouble.
• Cash advances - arguably the mother of revenue from unwary credit card customers. Some financial providers will take a large cut of up to 3% of the total transaction per withdrawal.

Note that the above fees are completely subjective to each individual bank and their policy. While there are more credit card traps in store, they aren't unavoidable. Take the above concepts into mind and watch carefully for the ever changing fine print. If you stay on the ball with your credit card, you can easily enjoy the benefits of low interest rates without the associated bank-traps.

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Getting the Best 0 APR Credit Card Offers

With the economy being what it is these days we are all faced with having to find new and innovative ways to maintain our current comfort levels while integrating a way to save money on the things we spend money on. Many have not stopped buying fuel but instead use tricks to make the most of their gas mileage such as coasting on off ramps from the freeway or being very careful to ease into the 'take off' from stop signs and lights instead of 'jack rabbit' starts. One variant of this is the trick of finding the best 0 APR credit card offers.

One area I think many people don't really think of when it comes to saving money or even the area that is sucking the most money out of your wallet like a vacuum cleaner is the credit cards. We think of credit cards as the funding source of getting things we want now or even the way people are affording all that extra gas that their check won't supplement due to the gas hikes. What's baffling however is that people think they are maintaining their status quo but the interest rates on the credit card is putting them deeper into debt, not saving them. The solution is to make sure we are getting the best 0 APR credit card offers.

There is a way however to reverse this effect and it doesn't take much work at all on your part. It is so easy and actually pretty obvious if you think about it, but because many people are used to thinking in another way it is not often thought of at any length. The trick is to use 0 APR credit card offers. I know what your thinking, those 0 APR credit card offers are just temporary then they jack up the interest rate after 6 months or a year when you've completely forgotten your rate is going to change, but I've got that covered too.

You see all you have to do is realize that there are literally hundreds of banks trying to grab your business with one credit card or another. Those banks, yes, are hoping you slip up after the 6 month promotion and if you do the entire balance that you've most likely barely chipped away at paying off become subject to that high interest rate and the company loses nothing, but you lose plenty.

So how do you get around this? Simple, just use the card till just before the 'grace' period is over then transfer the balance to another zero interest introductory rate with 6 months or more before it hikes up. This way you end up paying zero interest. You maintain it by perpetually keeping this up. Now to make sure you don't forget you sign up for a free service that not only reminds you in email which can also be sent to your cell phone, but it also does all the homework of finding all those nifty 0 APR credit cards and bunches them up on one site! Where do you find such an incredible service that doesn't cost you a dime to use? You Google 'automated credit card balance transfers' and you should see it. Good Luck!

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The Real Costs of Credit Cards

Introduction

There is no getting away from the fact that credit is now more widely available than ever making it simple to use a plastic credit card to make purchases. What isn't so straight forward are the costs associated with using credit cards. This article attempts to provide an overview of these costs to help inform your spending decisions.

1. APR

How often do you choose the first Credit Card you see or the most popular one? What most people don't realise is that it pays to shop around and yet we rarely do. Some credit cards charge higher rates than others which will have a major impact upon your finances, especially if you don't pay your bill outright at the end of the month.

If I told you that a top of the range television was for sale for $2,000 but that just down the road you could get it for $1,800, most people would quickly choose to save $200. In essence this is exactly how much of an effect choosing the right credit card can have on your finances, in relation to interest payments.

Annual Percentage Rates (APR) is the means that Credit Card companies use to charge you interest. These can vary substantially from company to company but they range between 15-25%. Ensure you choose a card with the lowest possible APR and don't just accept the first one available.

It should also be noted that credit card companies often charge a higher interest rate for cash withdrawals via your card so read your small print and don't presume it is the same APR rate.

2. International Charges

Using your credit card in another country is often promoted by finance companies as one of the key benefits of their product and yet they often fail to explain the costs involved.

If you use your credit card outside your own country you are liable to pay an additional charge for the privilege which varies from company to company but is usually between 2-5% of the transaction cost. So buying that Ming Vase on a trip to Europe may be more expensive than you think. Credit card companies claim that it is the cost of processing these transactions in another country, but this doesn't hold up well given that most big credit card firms are likely to have offices based in most countries, that could easily process the transaction with limited effort.

3. Balance Transfers

A word of warning about the costs of balance transfers. These were introduced to entice customers to a different credit card company. The company offers you between 6-9 months of 0% interest on your existing debt in exchange for you changing to their credit card. This is hugely tempting for many people however there are some pitfalls to it.

a) You will only get 0% interest on your existing debt. Some people wrongly assume that they will not pay interest on any new spending on their credit card for the 6-9 month period but this is incorrect.

b) Always check the interest rate that your card will revert to after the balance transfer period, as it could be that it is higher than your current credit card provider meaning that you pay more interest in the long term.

4. Late Fees

Late fees are also associated with credit cards if you fail to make at least the minimum payment required each month. These can vary but usually come in at around $35.

5. Over Limit Fees

These are fees that you will be charged if you go over your credit card limit without agreement. Most companies will charge you a 1.5% handling charge for this.

Summary

This article has sought to provide an overview of credit card costs and the direct effect these can have on an individual. Attention has been given to the vast differences in APR rates and the use of international charges and balance transfers. Finally we have examined costs linked to late payments and the consequences of going over an agreed credit limit.

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Chase Credit Cards - What All You Need to Know

One of the finest leaders in the credit card market Chase who earns millions of dollars annually from the amount of interest people owe them when they delays the credit card dues and don't pays the bills within the given time. People who have credit cards in their wallets are very common and many guys frequently make use of them instead of reserving them for emergency purposes.

Most rich feature of chase credit cards is that they are accepted everywhere around the world where credit cards are used. With their International credit cards you can easily travel across the world using your Chase credit card but don't forget to keep in your pocket. A wide range of credit cards are offered at chase credit card and very convenient to shop. They have various limits too that they offer so parents can get a low limit for college students to help them establish some responsibility.

Chase appears to be a good option if you enjoy accessing your credit card accounts online. If you are afraid of using real credit card number to buy goods or services online don't worry they even offer virtual credit card numbers. You can keep a track of your account and pay your bill while sitting at your home.

Most of the new users take plenty of time to compare various aspects of credit cards which is a good habit and finally Chase seems to offer the best combination of them after comparing with too many other companies. Check their low interest rates charts and high credit limits offers. They also have outstanding customer care service who are always keen to assist with any questions or problems a person may experience. Now grab a Chase card for free without any annual fee, and this is something most consumers are searching for.

Rewards programs have became very popular with credit card offers in recent years. Chase offers excellent rewards programs including cash back on purchases and traveling miles that accumulate based on the amount of money you charge on your credit card which is a great way to earn amazing free items including trips to your favorite locations.

It seems that Chase is the ultimate credit card option when you take a tour of all of the benefits being offered. All you need to do is, use your Chase credit card wisely and never be late in paying the bills on time. Don't worry at all if you trapped into financial problems just make sure to contact the Chase credit card company who would help you better.

Identity theft is very serious problem but chase keeps a special eye on it which makes you feel secure. They monitor accounts closely so you can expect to receive a phone call from them if there are activities on your credit card that don't fall along your normal pattern. They will also help you with getting charges taken off your account that you didn't make if this should occur.

All important information are properly explained at their official website. They often offer a variety of amazing offers for new applicants like: 0% APR for the first six months etc. This offer valid to both purchases and balance transfers depends on you whichever you choose. So enjoy all chase offers such as low APR, the high credit limit, rewards programs, and online access to your account.

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Finding Student Bank Credit Cards

A question that comes up a lot between students and credit cards is what banks offer credit cards. Many new card appliers don't realize that over 15,000 institutions offer credit cards. The bank doesn't necessarily have to be big in order to get a card. A big myth is that you'll only get good perks with a major bank.

How do I find the right bank?

With so many banks in the world, it's hard to find the right card. If you're serious about finding one, you'll use the internet to your advantage. So, I only have one word for you and that's research. You'll want to know what you want kind of rewards you want, what kind of rate you want, as well as what kind of fees you're willing to pay. Most of the time, you'll be able to find a card without fees but some cards with great rewards will require you to pay fees.

Are all the banks the same?

While most credit cards work the same way, the rewards and fees are going to be completely different. Let's think of a grocery store. When you go and get your groceries, are all the stores the same? No because they offer different prices, their policies are different, and the customer service is different as well. Think of this grocery store scenario as your bank.

My word of advice to you is to look at who you bank with right now. The chances of them having a credit card are actually pretty great. If you're happy with who you bank with now, I would suggest you stop into a bank to ask them about the deals they have for students. Sometimes, you may find that you can sign up for a card and even get a type of bonus. This will all depend on the bank. As long as you do your research and take your time in finding a card, you'll find the perfect bank.

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Axis Bank Credit Cards - Highly Trusted and Useful Cards

There are many advantages of having a credit card. One of the main benefits is that there is no need to depend on your friends and family members, if you are in urgent need of money. It helps you to solve your unexpected expenses. It also helps you to pay amount for some hotels, airlines and travel companies, who do not accept cash payment. Like this, people can enjoy with many benefits of credit cards by using them for right purposes.

As the number of people who apply for the credit cards in India has been increasing day by day, several banks and private companies entered in the market and started offering credit cards with different amounts, interest rates and repayment plans.

Among these banks, Axis bank is one of the leading banks in India that has been offering good services in Indian banking sector for several years. It offers various types of credit cards to suit the needs of all kinds of people. All the Axis bank credit cards are known as high-utility cards. For its honoured customers, this trusted bank offers even the high amount of credit cards at low interest rates.

Some of the most popular credit cards of Axis bank are the Axis Bank Silver Credit Card, Axis Bank Gold Plus Credit Card, Axis Bank Corporate Credit Card, Axis Bank Platinum Credit Card and Axis Bank Secured Credit Card (Gold).

Most of the premier banking establishments give credit cards and, therefore, the user is likely to have the thought about the benefits of taking the credit cards that are being given by Axis Bank. Some of the benefits are given in the above paragraphs and, therefore, a careful thought about each of them is enough to serve the purpose of the utility of these cards.

However, for a person who is financially a little more adept, the reasons can be shown in the form of interest rates that are given by these credit cards. One of the primary features of the interests is that they are formulated while keeping the customer as one of the main factors of consideration.

Hence, the interest rate are quite manageable and so is the repayment tenure of these cards. Versatility and also flexibility are two of the major stalwarts of the features of Axis bank credit cards.

With the advent of the Internet, now, people can find the details of all the companies that offer credit cards at one place. So, they can compare all the deals that are available in the world of credit cards at one place and can select the best one depending on their needs. Axis bank offers online banking services to its customers. So, the persons, who want to get a credit card from Axis bank can fill the application form online without visiting the bank.

If the details that are provided on the application form are correct, the bank employees will sanction credit card with in a short time. If you do not use your Axis bank credit card, you are not required to pay any such type of interest rates. One more benefit of these cards is that you can get extra points and discounts, if you repay the credit card amount in time.

Finally, we can say that Axis bank credit cards are available at low interest rates and are very beneficial for the users.

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Enjoy the Benefits of Rewards Credit Cards

Credit cards are now a part of modern living with more and more appearing every day. What kind of credit card would you prefer for your type of purchasing? Most of us would go for the credit card that matches our spending habit. We would definitely prefer the card that would be able to return to us the money we spent. Rewards credit cards are the right one, but which is the best one to choose?

To choose the right rewards credit card, be aware of the details and information pertaining to the rewards. Some banks usually offer this to attract applicants, but before making your decision, make sure that the rewards offered are something that you can use in your lifestyle and spending activities because some rewards may not be suitable for your needs. Check also the detailed APR charges or fees you might incur in the future. Some rewards may be enjoyable but are charged to your account after some time.

For people who love to travel once in a while, rewards credit card that converts points for travel expenses is the right card. While you enjoy your shopping, a part of the money you spend will become points, and as you earn points, you will also earn miles for your travel expenditures. This is done by converting the rewards points earned through shopping or dining into travel vouchers redeemable in some airlines.

Another way to earn miles is through paying the bills using the rewards credit cards. Credit cards can now accommodate different utility bills. It is just like paying the bills on cash but as you pay through the credit card you are earning rewards as well. Just make sure that you will also make prompt payments to avoid incurring interest charges.

Some rewards credit cards on the other hand, offer rewards in the form of gas cards. Some gas stations are affiliated with the credit card wherein you can use your rewards as payment for the gasoline and save on the increasing prices of gas.

Another benefit of rewards credit cards is the cash back bonus for the purchases you make using the card. Some credit cards give you back a percentage on all of the purchases, while some cards give you back a percentage on a portion of purchases you made. Just beware of credit card companies that charge these rewards in the end and make sure that some fees and charges related to your card are not due to rewards.

Among all the rewards credit cards, American Express Preferred Rewards Gold Card is the best. It allows the cardholder to choose where to use the rewards for their own suitability. Even the rewards are based on almost every dollar spent using the card. Some cardholders use the rewards for some special or exclusive events, shopping, and even for travel rewards. This is why the American Express Rewards Gold card is the best.

When choosing the right credit card, go for the one that you could utilize in more than one function, go for the rewards credit card. It doubles the fun because it will not only give you the opportunity to afford the things you need; it will also give back to you some portion of the money you spent.

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5 of the Best 6-Month Balance Transfer Credit Cards

Balance transfer credit cards are a popular tool for Australian consumers. For example, if you have a $500 balance with a 20 percent interest rate p.a. on your MasterCard, you can move that balance to another card, perhaps a Visa, and have less interest to pay on the original balance. This is ideal in today's economic times. This guide offers the best five balance transfer credit cards for Australians, based on interest rates, customer service, and card benefits.

St. George Vertigo MasterCard

St. George Vertigo MasterCard is great for transferring balances because it offers zero percent interest p.a. for six months. Money Magazine also awarded the MasterCard "Best of the Best" in 2008 for Cheapest Credit Card. St. George Vertigo MasterCard holds an 11.89 percent interest rate p.a. for regular purchases, and a $55 annual fee.

Citibank Clear Credit Card

Citibank Clear Credit Card, a Visa, also offers zero percent interest p.a. for six months on balance transfers. Purchases are assessed a 12.49 percent interest rate p.a. It also has up to 55 days of no interest. With credit limits of up to $20,000 and a $65 annual fee, this is a good bet for dollar-savvy consumers with good credit.

Bank West Lite MasterCard

Like most of its competitors, Bank West Lite issues MasterCards to qualified applicants with zero percent interest p.a. on balance transfers for six months. Cash advances are assessed a 20.49 percent interest rate p.a., while purchases are billed at 11.49 percent interest p.a. Up to three additional cardholders are allowed for free, and the annual card fee is $59.

HSBC Low Rate Visa Card

HSBC Low Rate Visa Card is another solid bet for Australians looking for a balance transfer credit card. Not only is there zero percent interest on balance transfers for six months, but also no annual fee for the first year. After that time period expires, the annual fee is $49. The card also features a rewards program good in more than 40 countries, and up to 55 days interest-free on purchases.

GE Money eco MasterCard

GE Money eco MasterCard not only enables customers to "go green," but also offers zero percent interest for six months on balance transfers. In addition, one percent of all purchases on the card is donated to organizations working to offset greenhouse gas emissions. The interest rate on purchases is 18.49 percent p.a., but the card is eligible for up to 55 days interest-free on transactions.

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Are Free Credit Card Terminals Worth It?

In today's competitive market place, businesses pull out all the stops to entice customers to purchase their goods or services. One of the most common marketing tools is to give away something for F*R*E*E*. Yes, that's F*R*E*E* in capital letters, bolded, with stars between each letter, not "free" in small case. Companies ensure that they stress the word "free" - akin to knocking them upside the head with the proverbial two-by-four - so that they will sit up and take notice that they can get something, anything without paying a red cent, plug nickel or cool dime.

If you are a business owner, you may be reading this article as you are considering accepting credit card payments. The first step would be to select a merchant account provider. With virtually thousands to choose from, this is not an easy task. Just to warn you, merchant account providers (MAPs) are not above pulling out the free trump card to gain you as a customer. No matter how attractive the offer, it is imperative to first look at the big picture by reviewing each MAP's fee structure, customer service policy, etc. before signing a contract.

Free Credit Card Terminal: Are they really free?

What is the free offer of choice by various merchant account providers? In many cases, it is a credit card terminal. This may entice those strapped for cash. However, upon further inspection it may be discovered that with the free terminal come higher fees - such as annual, batch or termination fees for example. These increased fees may more than offset the price of the terminal. In fact, over a period of time, an individual may pay, in additional fees, two to four times the initial cost of the terminal. Although you may believe that you are "making out like a bandit" you should ask yourself, "Am I really getting something for nothing?"

Depending on the needs of your business you may require a:

· Basic terminal - average cost $150 to $300

· Terminal with printer - average cost $200 to $600

· Wireless terminal - average cost $600 to $1,000

As you can see, terminals are not extremely pricey pieces of equipment. Therefore, before signing with a MAP to accrue a free terminal, you should first ask yourself, "Is what I'm saving upfront really worth it?" To answer this question you must:

· Compare and contrast various MAP's fee structures - are they more when a free terminal is added? If so, by how much?

· Note if there is a termination fee - Some MAPs who do not usually include a termination fee, may add one when offering a free terminal. How much is the fee? For example, if your terminal was $300 and there was a termination fee of $250, would the free terminal (which is not much more than the termination fee) be worth it if you wanted to terminate service for whatever reason? This example does not include other increased fees that may apply such as annual or batch fees.

· Take into account the retail value of the terminal - if it's a basic terminal for example, will the increased fees pay off the terminal within a few months while you are left paying the higher rate over the lifetime of your contract? However, the increased fees may be worth it if you are receiving a more expensive wireless terminal.

· Inquire if the terminal is new or reconditioned - the chance of experiencing difficulties with a new terminal is obviously less than with one that is reconditioned.

· Read the terms and conditions thoroughly - what happens if the terminal breaks? You want to ascertain that you will not have to wait weeks for a replacement or while your terminal is being repaired.

Types of Credit Card Terminals included in free offers. Are all the amenities included?

A few credit card terminals included in some merchant account providers' free terminal packages are the Hypercom T7 Plus, Hypercom T4100, Nurit 8320 and even the wireless Way Systems machine. Although respectable terminals, upon further inspection, you may discover that some of the terminals do not include a pin pad or a printer if the machine does not have one built-in. Although you receive the terminal for free, depending on the needs of your business, it may be necessary to purchase additional equipment. Once again you would need to ask yourself, "Is the overall package going to save me money in the long run?"

It is only human nature to become excited over the prospect of getting something for free. However, when it comes to matters of business, this is not usually the case. Companies often have an ulterior motive when giving away something for free, even if only to "get you inside their door" to entice you to buy their particular goods or services. Although a perfectly acceptable marketing tool used by millions, are you really getting something for absolutely nothing? In most case, the answer is no.

When a merchant account provider offers a free terminal, it is usually to assist those who may not have the money to purchase a terminal outright. They will recoup their money by increasing fees in other areas. That is not to say that cost effective free terminal packages do not exist. However, it is up to you, the consumer, to look at the fee structure of different merchant account providers to assure that you are receiving the best deal overall. It may be determined that it would be in your own best interest to come up with the money to buy a credit card terminal - no matter how financially strapped - to save money over the long haul.

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What is Credit Card Factoring?

With the current state of the US economy, businesses are becoming increasingly concerned about their own financial situation. Many businesses depend on being able to access cash quickly and easily to keep their business running smoothly; often times in the form of a small business loan. The problem is that many lending institutions aren't lending money like they used to. Businesses are left trying to find alternative sources for their business capital. One alternative source that is getting a lot of attention lately is the merchant cash advance or credit card factoring.

What is credit card factoring?

Credit card factoring is one way to get funding to businesses that are suffering from cash flow problems. I don't have to tell you how difficult it is to keep up with vendors and other business expenses each month. Whatever the reason, an interruption of cash flow can seriously hurt the company's credit rating and cause even more problems, ultimately causing the decline or failure of their business.

Generally, a factor is either a single investor or a business that fronts money to meet the company's cash flow requirements that is to be paid back within a set period of time - much like a short term loan. There are credit card receivables, invoice receivables, accounts receivable factoring and other forms that are routinely used by businesses that tend to have cash flow issues every month or during slow seasons.

Specifically; credit card factoring is when a factor gives your company cash upfront based on your future credit card sales.

Who uses credit card factoring?

Merchant cash advances aren't cheap. Merchant cash advances aren't always the best choice for everyone. However, they are a legitimate alternative for businesses that have less than perfect credit or that need cash in a hurry. A poor borrowing history limits the places a business can go for loans and the result is either being turned down for the loan or getting a very high interest rate on the approved loan.

Some of the businesses that use credit card factoring the most are bars, restaurants, retail stores and service providers. In each case, the amount of business done with credit cards allows the investment factor to think about profit availability.

Getting an unsecured loan may be the only way a business owner can survive during tough times, but the owner should be careful because there are some less than reputable lenders out there.

A credit card factor will not necessarily look at a business owner's credit history or score as reason to decline the unsecured loan. They look at the history of steady credit card sales more than the business's credit score. And while banks may take several weeks or even months to approve a loan request, a credit card factor can approve a merchant cash advance in a matter of days.

All in all, it is a win-win relationship for both parties involved. Remember; if you do decide to use a credit card factoring company, you need to verify the legitimacy of the lender by as many sources as possible. You might consider checking the Better Business Bureau or asking for references.

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The Downside to Paying Off Your Credit Cards

There couldn't possibly be a downside to paying off your credit card accounts, could there? Only if you close the accounts!

If you've participated in our Credit Scores: Insider Secrets from an Expert teleseminar series, you know that capacity accounts for a full 30% of your Credit Score. What does Capacity mean? Here's an example:

Let's say you have 3 credit cards with a total credit limit of $18,000. If your outstanding balance on each of those credit cards is 50% or less of the available credit limit, you're in pretty good shape.

Example 1:

Card# Credit Limit Balance Capacity

1 $ 2,000 $800 40% 2 10,000 4,800 48%

3 6,000 3,000 50%

In this example, the capacity reached, or outstanding balance, for each individual card is less than 50%. This means that for the purpose of calculating your credit score, you're in good shape with regard to capacity. Now, take a look at the second example:

Example 2:

Card Credit Limit Balance Capacity

1 $ 2,000 $ 800 40%

2 10,000 3,800 38%

3 6,000 4,000 67%

Here's the deal: You are in pretty good shape in Example #1 because your capacity reached does not exceed 50% of any of your available credit limits. However, in Example #2, you would be penalized on your credit score, even though your outstanding balance and total available credit limit has not changed. Why? Because you exceeded 50% of your capacity on the third card.

Looks a little crazy, doesn't it? It gets even worse. Let's say in the second example that you paid off Credit Card #2 and closed the account. That should greatly help your credit score, right? No! Just the opposite, in fact, because now, your picture looks like this:

Example 3:

Card Credit Limit O/S Balance Capacity

1 $ 2,000 $ 800 40%

3 6,000 4,000 67%

Yes, you owe less in total, but you have actually hurt your score by paying off the $3,800 balance on your $10,000 card. Why? Because your capacity reached on Card #3 is still over 50%, and by closing the account for credit card #2, you've reduced your available credit, or total capacity.

So what is the solution here? Pay off the credit card with a capacity reached of over 50% first.

This is just one example of what goes into calculating your credit score you may not know. The Universal Default rules can be even more damaging to your personal prosperity picture. Knowledge is Power. Take charge of your personal prosperity today.

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Common Mistakes Made With Credit Cards

Even though the country is currently in a problematic financial situation, there are still many people who are neglecting to pay any attention to the amount that they are spending and how they are spending it. More recently it has come to the attention of money experts of some simple mistakes that many people are making when concerning credit cards.

One of the biggest mistakes made by credit card users is to withdraw money from a cash machine using your credit card. This option to withdraw cash should really only be considered as a last option as it is as good as throwing money away. Many card issuers are now charging up to a 2% or 3% fee for cash withdrawals and will start charging interest on the withdrawal straight away. It is also likely you will be charged a higher APR on the card. The same applies if you decide to use credit card cheques; you will be charged interest straight away. If you are going to use a credit card cheque then you might as well just use your card as the APR charged on credit card cheques is usually a lot higher than the standard APR.

Using your card abroad will also cost you dearly. Many card companies will charge a substantial amount of money if you decide to purchase something abroad with your credit card. Before you go away you should see how much you will be charged to use your card abroad to avoid any nasty surprises when you get home.

Long term borrowing is also a huge mistake made by many with credit cards. With loans currently as cheap as they are it would be silly to pay off a long term debt with a credit card that charges close to 12% APR when there are loans on the market that charge less than 6%.

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Things to Know Before Applying For a Credit Card

It is true that having a good payment history on a credit card is a key component of building a consumer credit score. Credit bureaus love a good mix of accounts, including unsecured credit cards and installment loans.

If you do not currently have a credit card, then you might want to consider applying for a card and building a deeper payment history prior to making a major purchase on credit. Building credit can reduce the cost of interest for vehicle or home purchases.

Pre-Approved Offers

A pre-approved offer is not a guarantee that you will be approved. You could still be denied if your stated income does not satisfy the income requirements established by the card issuer. In addition, if your credit score has dropped recently, you could also still be denied.

Still, a pre-approved offer is more likely to be approved than an unsolicited application. Credit card issuers buy lists of potential customers from the credit bureaus. If you received a pre-approved application, your credit met the initial credit requirements of the card issuer for that particular offer.

When a card issuer receives your application, they then conduct a new credit check to see if you continue to meet their requirements. Your credit score will likely be within a few points of what it was if nothing extraordinary has happened to your credit in the meantime.

A simple late payment or even going over the credit limit on another credit account could cause your credit score to drop by as many as 50 points. Correcting the problem will bring your score back up, but not to the original level.

Therefore, you should evaluate whether now is the time to even apply for a card. Any recent negative activity on your credit report could jeopardize the approval of a new application.

Inquiries

Inquiries may also prevent approval. Each time that you apply for a line of credit, an inquiry is recorded on your credit report.

If you are denied a credit application, understand that your credit score will have dropped anywhere from 1 to 5 points. Applying for another card would be ill-advised at this point, since you would have an even lower likelihood of being approved for that account.

Multiple applications in a short period of time can cause your credit score to drop to a point that makes approvals unlikely. Credit card issuers get nervous if they believe you are trying to apply for substantial credit in a short period of time.

If you believe you could benefit from a new account and expect to be approved, then choose wisely. Some credit cards have much better terms than others. Most importantly, once you have opened a new account, take care of it. Maintaining your credit accounts is essential for building a solid credit history.

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Things to Look For in Applying For Student Credit Card

With so many different student credit cards in the market, how can you pick the right one for you? Here are some factors that you should check on:

The APR. A lot of credit cards for student comes with a 0% APR introductory offer. Before you sign up, make sure that you understand where the zero interest is applied. The 0% APR may only be applicable to purchases or balance transfers while other cards may give the zero interest on both.

Furthermore, make sure that you are clear about how long the introductory promo lasts. Some credit cards offer only 3-6 months while others may offer a much longer introductory period.

Other Charges. Aside from the APR, don't forget to check all the other costs on your card (late fees, over-the-limit fee, annual fees, etc.). Remember, a low interest rate doesn't necessarily mean that you've found the best student credit card in the market. Make sure that there are no "hidden charges".

The grace period. A sufficient grace period ranges from 25-30 days depending on your issuer. Remember to submit your payment before your grace period ends to avoid additional charges.

The perks and rewards. After considering the interest rate and the rest of your credit card fees, consider the rewards that best matches your lifestyle and needs as a student. However, bear in mind that a student credit card with rewards will only be beneficial if you will pay off your balances in full each month. Otherwise, you could be subjected to a higher interest rate.

The terms and conditions. Everything you need to know about your chosen student credit card is in the Agreement. Take the time to examine the complete Terms and Conditions before signing.

The convenience. Can you use your student credit card on various establishments and merchants? Does the card report payments to the major credit reporting agencies? This is very important because a student credit card should help you build your personal credit history.

Online access to your account. Being able to access your account online will help you monitor your balances and keep track of your credit card spending conveniently.

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Six Things to Look Out For When Applying For an Airline Credit Card

Airline Credit Cards are very popular right now since they have the potential to get you a free airline ticket. The only thing you need is to be a Frequent Flyer using one of the Airline Credit Cards. But, as always, there are certain things you need to look out for when signing up for one of these Airline Credit cards. The first thing you need to know is that you don't get a free airline ticket just because you have an airline credit card, you get an airline ticket if you have accumulated enough points for an airline ticket. For example, you might spend $500 a month on your airline card, which means that you get 500 miles for each month. Where can you fly there and back with 500 miles? Maybe over a period of 3 months you could cash in your points for an airline ticket. I hope that makes sense to you.

Before Applying for an Airline Credit Card, go through a quick checklist:

1. Signing up Bribe: They will offer you 25,000 miles or more for joining their Airline Credit Card. Great, but check out which airline you can use; is it close to an airport you live by and is it viable for you to use? I mean there's no point having 25,000 miles and only being able to use it in LA when you are in New York.

2. Annual Fee: If there is an annual fee, is it for the first year only? Or is the bribe good enough that you do not mind paying the $49 fee and getting 25 000 miles?

3. Spending Requirements: You will need to spend a certain amount of money before you can use your bonus miles. Let's say it is $2,000 in 60 days, would you have already spent that money or would you have to go spending money unnecessarily?

4. Cancellation: If you want to cancel the Credit Card but you have some miles left, first find out if you can still use them even if you are no longer a cardholder? Some Credit Card Companies require you to be a cardholder for a certain time period before you can claim after you have canceled your card, plus you might have to pay certain fees to claim if you are no longer a cardholder.

5. Claiming: You want to claim your air miles that you have clocked up. With an airline-sponsored credit card the miles already show up on your account and you can claim them immediately. With a non-airline credit card, like Bank of America, you will need to follow a certain procedure before you can claim your miles. Also, check to see if there is an expiry date on the miles you have earned.

6. Blackout Dates: Credit Card Companies may block out dates and specific times when you want to claim your miles, for example they might make you fly off season and off hours and for some people that is just not practical.

Now you know what to ask, and what to look out for, before applying for an Airline Credit Card. You must also decide if this type of reward credit card is worth it for you. Do you have an excellent credit score? Are you able to pay off all your credit balances every month end? If you answered yes to these questions then it makes sense for you to join a credit card rewards program.

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Is it True About Credit Card Limit Cut Backs?

Yep, you bet. Actually, if you haven't been contacted by your credit card company yet you should be on the lookout for some form of a notice very soon. As a consumer, what you should expect is an envelope containing specific information that will outline the new terms of your credit card, including interest rates and credit card limits.

Specifically, what you'll be seeing in terms of your credit card limit being cut back are quite stringent and lessened actions. Even with consumer credit already being stretched to the absolute max, there currently are (and soon will be even more of) a plethora of Americans that may discover shrinking or lessened credit limits, despite rising interest rates.

But, the question here is simply "why?" Because, as it is, even those who are responsible in their cardholder positions are getting financially hit here. Having a polished track record and an unsmudged credit score isn't even enough; to no avail and still, such esteemed cardholders are witnessing their credit card limits being curtailed right in front of them.

FICO Ways of Old and Greeting The New

The old way of determining rates and limits via outstanding balances and FICO scores are still in use, to a degree. But, what's now being ushered in the door for determining rates and limits are anything including factors such as where you reside or even to the point of surmising how stable your particular job is. More or less, the stance here is directly from a mindset that's being overly cautious, especially to at-risk borrowers.

Who Are Borrowers That Are "At-Risk?"

Those who would be classified as borrowers at risk include those who are unable to meet their balances. Of course. This makes sense. But, don't get set on just this determinative classification. Here, cardholders who are deemed at a great risk are those under certain industries such as construction, home-building or mortgage brokerage. It is this set of professionals specifically that are seeing their credit lines being cut more than anyone else.

Also, credit card issuers seem to shrink limits and even deny credit lines for those consumers who live in the hardest-hit housing markets, which shouldn't be much of a surprise; consider that major banks did the same thing a few months ago via shrinking credit lines for home equity loan products and services.

Expect Credit Ratings To Be Hit

Typically, when credit card limits fall the ratios of cardholders' debt to their credit undeniably rises. This is not good though. Consider that a domino effect can take place. Just do some reasoning; less credit can lead to an easier means to target over-the-limit charges and subsequent penalties. Also, realize that credit agencies check into individual consumer credit percentages, as far as use is concerned. And, with lower credit card limits cardholders automatically use a greater amount of available credit. This, on its own, can possibly (and would most likely) spur a lowering of a consumers credit score.

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