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Credit Card City Blog
All blogs for November, 2009
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Should you Use a Bad Credit Credit Card for Holiday Shopping?
Posted on 11/29/2009 - Filed under Bad Credit Credit Cards
If you have a bad credit credit card, you probably have had some trouble with credit in the past. While it can be easy to use your card over the holidays, you will want to make sure that you don’t get carried away with spending. With that in mind, here are some guidelines to follow if you have a bad credit credit card and want to shop for the upcoming festivities.
First of all, you will want to make sure that you don’t exceed the limit that is set on your card. Just like all credit cards, bad credit credit cards set an amount that you should not go over. If at all possible, you’ll want to stay far below the limit. So double check what the limit is, and then set a budget regarding how much you want to spend.
Second, take careful steps to evaluate each item before you swipe the card. Consider the price, benefits, and ask yourself whether or not you need it. If it fits into all of the criteria you’ve established, it’s probably a good item to purchase.
The final, and perhaps most important, point to consider is how holiday shopping will fit into your long-term goals. The season is exciting, but it will quickly come to an end. Take the necessary steps so that your shopping trips will not affect your long-term goals.
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Consumer Debt Drops: Good News for Credit Cardholders
Posted on 11/23/2009 - Filed under Credit Card News
A recent study by Credit Karma shows that overall, consumer debt for those with a credit card has continued to decline in recent months. These findings reveal that Americans are now paying off more than we are spending.
According to the report, the average household is now carrying just under $7,000 in credit card debt, which is lower than previous years.
If you are still carrying some credit card debt, now is a good time to start paying it off. If the amount seems overwhelming, simply break the total into chunks. Concentrate on paying the interest charges and part of the principal balance each month. Send in more than the minimum if you can. Work this amount into your budget and plan on chipping away at it over the long-term. This will help you get rid of the debt and at the same time, set up smart credit card habits.
And if you’ve already paid off your credit card debt, take precautions to make sure you avoid any high balances in the future. Keep careful track of your spending (which you are probably already doing – good for you!), and pay off the balance each month. To take it to the next step, start looking for ways you can benefit from the card – perhaps an airline rewards program, cash back plan, or rebate program would work for you.
Whatever your situation is, paying off debt is a good trend to follow. Join the crowd and use credit cards the right way – both you and your family will be better off for it.
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Online Shopping Tips for Credit Cards
Posted on 11/21/2009 - Filed under Credit Card Theft
Shopping for the holidays can be done from the comfort of your own home, which is great when it’s cold outside and you’re short on time. It’s not great, however, when your credit card information gets stolen or your account gets hacked into. Here’s what to do to make your online shopping experience a good one this year:
Make a strong password. If you sign up for accounts on certain websites, you will sometimes find a meter than measures the strength of your password. Make sure yours is strong. Then when you access the account and put in your credit card information, it will be that much safer.
Stick with secure sites. If you’re planning to do most of your shopping on big sites, there is little reason to worry about security. Valid websites use the latest security technology possible to keep away thieves. If you’re not sure about the site, however, check before entering your credit card information. If it hasn’t been updated for awhile or looks deceptive, stay away.
Always check your statements. If your card does get stolen for some reason, there may be strange activity that appears on your monthly statement. For anything that causes you to think there might be a problem, contact the company right away. You’ll be able to sort through the problem, and if there was fraudulent activity, you most likely won’t be held liable for it. So stay safe and enjoy your holiday shopping with credit cards.
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Credit Cards: Should you keep what you have or get a new card?
Posted on 11/17/2009 - Filed under Credit Card News
With the changing regulations in the credit industry, it can be tough to tell what direction you should take with your own credit cards. If you’re trying to decide what to do, here are some simple strategies to follow:
Check your score. If you’re thinking about applying for a new credit card, you’ll want to know your credit score. Here’s why: due to the recent changes among card issuers, you may need a higher score than before to get the type of card you’re interested in. So it’s important to know just where your credit stands. If your score is 750 or above, you should be able to get any type of card you’d like. If it drops below 700, your chances start to decrease.
Evaluate what you need the card for. Do you want better rewards? A lower interest rate? More credit? Take some time to think about how you would use a new card. And before you apply for one, look through the cards you already own. They may have a rewards program attached to them that you could take advantage of.
Gather information about credit cards. If you do decide to get a new card, read all that you can before filling out an application online. Find sites that will give you reviews of the cards and tell you what type of cards match your credit score. Doing so will arm you with the knowledge you need to make the most of your credit cards.
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American Express Continues to be Number One in Customer Satisfaction
Posted on 11/11/2009 - Filed under American Express Cards
American Express ranked number one in customer satisfaction in a recent study by J.D. Power and Associates. The study covered 21 of the largest card issuers in the United States. It looked at a variety of elements, including customer interaction, rewards programs, and fees and rates.
What does this mean for you? If you currently have a credit card and are not satisfied with a certain aspect of it, you could consider applying for an American Express credit card. American Express has won awards for customer satisfaction numerous times in the past years.
Of course, how a company ranks in a study is not the only reason to switch your credit card payments. But it is a fact to keep in mind if you are searching for a new credit card, especially if you want a solid rewards program. American Express tends to offer high rewards, so applying for one could give you more opportunities to make the most of your card.
Like any other card, you should thoroughly research your options before applying for one. When you find one you like, go ahead and fill out the application form online. You will soon receive a new card and a better chance of being satisfied with it.
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How to Shop for a Credit Card with the New Industry Rules
Posted on 11/9/2009 - Filed under Credit Card News
Many are afraid to even apply for a credit card after hearing some of the scary reports coming out on the news these days. Warnings about credit card companies, changing rates, and tales of credit woes can leave a person feeling down about credit. But the truth is that if you want a new credit card, there are still plenty of options available. The secret to finding the right one starts with you. Here’s how to approach credit card hunting the right way:
Know your options. If you have a low credit score, you don’t need to spend a lot of time looking at credit cards that are geared toward those with an excellent credit rating. So zoom in on cards that fit your credit level. That way you’ll be looking at ones that will approve your application and be a good match for your lifestyle.
Set up priorities. Just what are you looking for in a card? If you want a low interest rate, try looking at several that come with this feature. If rewards are what you want, read some reviews on rewards credit cards. You’ll be able to narrow your search if you have a clear idea of how a credit card could best help you out.
Search online. The Internet offers more options than you may realize. Look through websites to see the various card listings. You can even compare some side by side. Then click on the one you want and apply for it. The card will arrive in just a week or two and you can start using it right away.
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How to Set Spending Limits with Credit Cards during the Holidays
Posted on 11/8/2009 - Filed under Credit Card Management
When it comes to credit cards and holiday shopping, it can be easy to swipe the card now and think about it later. The problem with that, however, is that the debt you rack up now can linger on for many months past January. Long after the holiday season is over, you’ll still be paying for it.
Instead of simply swiping your credit card for purchases this year, take some time to think about what your goals are and where your finances are at. Here are some guidelines to help you out.
Look into your past. Review what you did last year, and whether or not it worked for your family. If you successfully set a budget, do it again this year. If you spent more than you wanted to, try to cut back this year.
Set your own limits. It’s easy to look at the limit on your credit card and try to stay under it. Push yourself to set your own limits, and make it a figure that is well below the maximum on your credit card.
Make a list. When you know how much you plan to spend, write down the purchases you’ll be making. Estimate how much each one will cost, and work hard to stay within your total budget. The holidays will come and go, and with some planning you can avoid hangover debts in 2010.
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What’s Behind the Minimum Payment on Credit Cards
Posted on 11/7/2009 - Filed under Credit Card Management
When you look at a monthly statement for your credit card, you’ll see an amount that’s listed as the “minimum due.” This means that if you’re carrying a balance on the card, you’ll have to pay at least that amount in order to remain in good standing with the account.
The minimum payment due is usually an amount that represents between 2 and 4 percent of the total balance. So if you have a balance of $5,000, you might be asked to pay around $100 as a minimum payment each month.
The trouble with minimum payments is that if you stick to them, you could end up paying off your credit card balance for many months, or even years. This is because the interest rate on your card continues to apply to the balance you’re carrying. So while you pay off some of the principal balance, you also pay a large chunk of change toward interest charges.
One of the best ways to combat this, and not carry a balance for years, is to pay more than the minimum amount due. If you can, double the amount listed. You’ll see your balance drop much faster, which will motivate you to keep making those payments. And once you get your balance to zero, you won’t have to pay any more in interest fees. Over time, you’ll save yourself a good deal of cash.
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