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Credit Card City Blog
All blogs for January, 2010
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Three Reasons why your Application was Denied
Posted on 1/30/2010 - Filed under Credit Card Applications
If you recently filled out an application for a credit card, sent it in, and then were hit with surprising news that it was denied, you may be wondering what went wrong. As you begin your search to find out why and get the right card, here are a few possibilities of what happened and what you can do about it.
There was an error on the application. What if you filled out that your monthly income was $400 instead of $4,000? Just one zero can make a big difference. If you think that an error may have been entered, call the credit company to check. They can help you figure out what went wrong in the application process.
Your credit score doesn’t match the card. Different cards are designed for different levels of credit. If you have an averages score and you’re trying to get a card that is made for people with excellent credit, the numbers simply may not match. This will make the company send a rejection rather than an approval for your application.
Instead of looking for a card that has strong rewards or a low interest rate, start by matching your credit rating with the one that the card says it is made for. You’ll save yourself trouble and find a card that fits your lifestyle.
You’ve filled out many applications in a short time span. Lenders often view customers trying to get different types of credit in a short time frame as a cause for alarm. They might think that you are trying to get access to many lines of credit for the wrong reason, or they may see your situation as a desperate one. If you’ve filled out a number of applications and can’t get a card, you may want to talk to a financial advisor to figure out what step to take next.
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Knowledge is Power when it comes to Credit Card Rates
Posted on 1/27/2010 - Filed under Credit Card News
It can be easy to simply toss the mail you get from your credit card company. After all, much of it might not apply to your situation. But if you take some time, you may be able to catch some things that could turn expensive – fast – if you didn’t know about them. Case in point: credit card rates.
Credit card companies have been going through a trend of increasing the interest rate on some credit cards. If they decide to change yours, you’ll most likely get a statement in the mail to inform you of it. Knowing that a change is in the works can help you prepare for the interest hike, or even consider your other options.
Also, if you don’t know what you interest rate is, it can be difficult to calculate how much you are paying in interest charges each month. If you carry a balance, you have to pay interest on it every month. And if the interest rate goes up, you’ll have to pay more every billing cycle on the amount you’re carrying on the card.
Knowing your interest rate can help you plan out how to pay for the purchases you make each month. Better yet, it may motivate you to get that balance to zero and keep it there. If you can keep your balance at zero, the interest rate will not matter as much. You’ll also save hundreds of dollars in interest every year. That’s money you can put to work somewhere else.
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Lessons you can Learn from Filing for Bankruptcy
Posted on 1/26/2010 - Filed under Bad Credit Credit Cards
If you’ve had financial problems recently, you’re hardly alone. Reports are coming out with cases of bankruptcy on the rise and they are expected to climb some more before they start to go down again.
While filing for bankruptcy can feel devastating, there are many things you can learn from it. You’ll not only get a fresh start, but you’ll also have a chance to make some changes in order to avoid financial disasters in the coming months and years. Here are a few things you can learn from bankruptcy.
A chance to develop new habits. Start by figuring out a budget that fits your lifestyle. Aim to live within your means and you’ll be able to create an atmosphere that you are comfortable with and will not break the bank.
Evaluate new purchases. These days, less is more, and that applies to nearly all levels of credit. If you’ve been a high spender in the past, look for ways to cut back now and enjoy the simpler pleasures of life. After all, everyone else is doing it.
You can still get credit. While it is difficult to find lenders that will help out people that have filed for bankruptcy, it is possible to get restarted with new credit. A bad credit credit card can help you get back on track and is available for nearly everyone, regardless of their credit background.
Click Here To View Bad Credit Credit Card Offers
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Five Small Ways to Really Save with your Credit Cards
Posted on 1/25/2010 - Filed under Credit Card Management
With so much talk about the pending changes in the credit card industry, some are questioning what the future holds for credit cards. The truth is that credit cards have been around for awhile and aren’t going anywhere soon. What you do with them is your choice. And when you use them wisely, the benefits greatly outweigh the costs. Try making one or more of the changes listed below. You’ll save and come out ahead with your credit card.
Avoid late fees. These can sneak up on you fast, so find out when the bill is due and make note of the date. Whenever possible, pay it in advance. Sign up for email reminders if you have problems remembering.
Don’t use them for splurges. A credit card is not an instant cash dispenser. It offers you a loan that you will eventually have to pay back. Rather than maxing it out, take careful measures to use it responsibly. If you have a rewards card, use it for regular purchases and pay off the balance each month. It will be just like spending cash from your regular budget, but you’ll get the added benefit of rewards.
Don’t carry a balance. If you have a balance, do all you can now to get rid of it. Then pay off whatever you charge each month. You’ll save yourself hundreds of dollars in interest charges.
Manage your account online. If you spend time online every week, check your account on a regular basis. You’ll stay on top of what you owe, the interest rates involved, and catch any mistakes or errors right away, all of which will help you save money.
Bring over a balance. For anyone carrying a balance or loan with a high interest rate, try transferring it to a card that offers a special introductory offer on the balance transfer. You’ll save money on interest and be motivated to get the amount paid off as fast as possible.
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Three Things you may not know about the Upcoming Credit Card Changes
Posted on 1/7/2010 - Filed under Credit Card News
It’s not breaking news that changes have come, and more are coming, to the credit card industry. There are some things, however, that you might not know about the way the new credit card landscape will look. Here are a few of the changes that will come into effect that you may not have heard about.
Co-signers for young cardholders. According to the legislation, people applying for credit cards that are between the ages of 18 and 20 will be required to have someone co-sign the card. This is part of an effort to protect the applicants from running into debt at an early age.
Letting you know about increased rates. When a credit card issuer decides to change the interest rate on your card, which it has the right to do, it must first inform you of its plans. You can then accept the change or turn down the offer. If you decide to reject the new rate, your rejection will be accepted. Your account will be canceled, but the rate won’t change while you pay off the remaining balance on the card.
Changes in the cards offered. While there will still be plenty of cards to choose from, some of the fees, rewards, and other fine points may take on a new look. You might find it is harder to get approved for a card or that the interest rate starts higher, an annual fee is charged, or that there are different rewards offered.
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What Score you should have for a Bad Credit Credit Card
Posted on 1/6/2010 - Filed under Bad Credit Credit Cards
If you know your credit score is low, you may be concerned that you will not be able to get approved for a credit card. But what exactly is a low score? While in the past the number varied, these days you can figure that a score of 650 or lower will make it hard to get a regular credit card.
Fortunately, if you have a low credit score, the doors are not all closed to you. You can do a little searching online and find that bad credit credit cards may be a good route to go. The best thing about them, perhaps, is that they are available to nearly everyone, regardless of your credit past. So if you fill out an application, you can feel fairly certain that you will receive the card.
Another good thing about bad credit credit cards is that they report to major credit bureaus. This means that over time, the card will help you rebuild your score. Lenders will see that you are paying your bills on time, and eventually your score will reflect that.
So if you have a low credit score, don’t be alarmed. There is plenty of hope for those that are ready to get a bad credit credit card and work on rebuilding credit right away. Filling out the application is just the first step toward a better credit future.
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3 Reasons to Avoid Credit Card Debt in 2010
Posted on 1/1/2010 - Filed under Credit Card News
If you’re carrying a number of high credit card balances and want to get rid of them, now is a good time to start. Many Americans are working on getting out of debt and staying out. If you join the crowd, you’ll not only be making a smart financial decision, you’ll also be able to raise your credit score. Here are three reasons to help motivate you to get out of debt this year.
Increasing interest rates. With the new credit card legislation, many credit cards are seeing an increase when it comes to APR. This means that if you carry a balance from month to month, you’ll pay more money in interest charges than before.
Decreasing credit limits. If you currently have a balance of $3,000 on a credit card with a limit of $10,000, you are utilizing about 30 percent of the available credit you have. If that limit drops to $6,000, you’ll be using 50 percent. While your balance has not changed, a lower limit can put you in a higher risk category with lenders if you want to take out a loan. Since some credit card companies are lowering limits on cardholders, try to stay well under the limit (most experts recommend using less than 30 percent) and get the balance down so that your score doesn’t drop.
Economic conditions. While some are predicting that the overall economy will pick up in2010, it’s still a good idea to stay out of debt and carefully manage your finances. This way you’ll be better prepared for the future, no matter what it brings.
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