Choosing a Credit Card: How To Choose The Best Offer

Credit cards offer plenty of benefits and convenience. And
these days, there are cards for everyone. With so much
variety, choosing a credit card can quickly turn into a
daunting task. But it doesn't have to be. By reviewing your
needs, you can easily match a credit card to your
lifestyle. Here are three things to consider as you choose
a credit card.

Check the Interest Rate

Every credit card has an annual percentage rate, or APR,
attached to it. If you pay off the balance each month, this
will not affect you. However, most of us do occasionally
carry a balance, so finding a good APR is important.

Many cards come with an initial low or 0% interest rate.
After a period of time, varying from a few months to a
year, the regular interest rate will be used. Some cards
offer low interest rates, while others charge a higher one.

You will want to check if the card has a fixed or variable
interest rate. A fixed rate is one that will not change
unless the issuer notifies you. A variable interest rate is
usually attached to another rate, such as the prime rate.
As the prime rate changes, the interest rate on your credit
card will also fluctuate. There are often limits included,
which define how high or low your rate can go. Check the
fine print of the credit card application to get a better
understanding of the interest rate and how it works.

Look at the Finance Charges

Most credit cards have a number of finance charges
included. Some charge an annual fee for carrying the card.
This can range from $25 to $75, and sometimes more. Other
costs may be incurred through balance transfers, cash
advances, late payments, or by exceeding the credit limit.
These may or may not affect you, depending on how you use
the card.

Besides the fees, you will want to look at the grace
period. This is a free period that allows you to avoid
finance charges by paying off the balance before the due
date. Some cards have a long grace period, while others do
not include one. By reading through the terms and
conditions, you will better understand the charges attached
to the card.

Compare Additional Benefits

Participating in a reward program can help you accumulate
additional benefits quickly. Some cards give you cash back
when you make purchases. This usually ranges from 1% to 6%
of the amount spent. If you spend a lot of time driving, a
card with gas rewards will be very advantageous; similarly,
if you travel frequently, you can earn valuable airline
miles through a credit card that offers miles or points for
travel with your purchases.

Some cards can be used to consolidate debt. Look for one
with a low charge for balance transfers and a 0% APR
introductory rate. Then transfer your balances onto the
card. If you can, try to pay off the entire debt before the
0% APR offer expires.

By evaluating your needs, you can decide what to look for
in a credit card. Search for one that fits those needs and
then apply online. The card will soon arrive in your
mailbox. Use it wisely, and you'll enjoy the convenience
and benefits of having a credit card.

----------------------------------------------------
To Choose a Credit Card click the following link:
http://www.credit-card-surplus.com . Ed Vegliante runs
http://www.credit-card-surplus.com , a directory helping
consumers to compare and apply for credit cards.

A Practical Budget To Reduce Your Debt

Why is it that everyone who has debt problems wants to get
out from under the burden of excessive debt, but most
people labor unsuccessfully to get out of debt their entire
lives? The lending industry has an interest in keeping
people in debt, because they need a ready supply of people
living beyond their means, and willing to go into debt to
maintain a certain lifestyle. Of course, their lending or
credit card services are presented as the best way to have
it all now.

Since the lending industry has a plan to entice you to go
into debt, you need to protect yourself from the
temptation to buy things that you cannot afford.
Practical budgeting can protect you from getting into
trouble with excessive debt, and help decrease your total
debt burden. Here are some steps you can take to avoid
debt problems:

1. Have a budget. It does not have to be complicated; in
fact, the simpler you can keep it, the more likely you will
be to stick to it. Make an itemized list of all of your
monthly expenses like gas, insurance, mortgage or rent
payments, utilities, food, etc... When you have a complete
list of your necessary expenses, subtract them from your
total monthly income. Now you have an idea of how much you
have left for spending money and savings. Seeing your
budget on paper will allow you to identify unnecessary
spending, and see exactly where your money is going.

2. If you have high interest debts, you should attempt to
transfer the balances to a lower interest credit card or
line of credit. Doing so will give you extra money to
spend or use to reduce your debt. Be careful not to run up
even more debt with your new card or line of credit.
Increasing your debt load runs counter to your efforts to
get out of debt.

3. Check your credit at least once a year. You are
entitled to one free credit report each year, so take
advantage of it and make sure that all items on the report
are accurate and reflect your true credit history.

4. Contact your creditors, whether or not your account is
up to date. Better interest rates may be available, and
the lender may be willing to restructure your loan to lower
your monthly payments.

5. Be careful with store credit cards. They may offer a
discount for opening a new credit account, but if you
maintain a balance, you could be surprised at just how high
the regular interest rate is.

6. If you don't already have some money set aside for
emergencies, now is the time to begin saving. Having
something set aside can help you pay your bills on time
when you are short on cash, and can prevent slow payments
which would adversely affect your credit score. Even a
small contribution to your savings account each month can
create a financial safety net over time. You will be
surprised how quickly your savings can accumulate by
contributing only $20 per month.

7. When constructing your budget, calculate how much money
you will have available every month for paying off debt.
Rank your debts in order of interest rates, from highest to
lowest. Make the minimum monthly payment toward all of the
accounts except for the one with the highest interest rate.
On the highest interest rate debt you will pay the
remaining amount that you have set aside for making debt
payments. When you have completely paid off the most
expensive debt, continue in the same manner with the other
debts on the list until your debt has been eliminated.

If you follow these simple steps, you will quickly be able
to reduce your debt, and by sticking to your budget you can
begin to improve your financial situation.

----------------------------------------------------
Gregg Pennington writes articles on a number of topics
including loans, debt and credit. For more information
about debt help and credit repair visit:

http://www.onlinemoneysources.net/debt-and-credit.html

Are Free Prepaid Credit Cards Really Free?

Advertisements for free prepaid credit cards abound, but is
there really any such thing? After all, prepaid credit
cards are usually associated with multiple fees. If you've
been looking for free prepaid credit cards, there are some
things you need to know before taking the plunge.

1. Nothing's Ever Really Free

The first thing you need to understand when it comes to
free prepaid credit cards is that nothing's really ever
free. Sure, you might not have to pay an activation fee or
there might not be a monthly maintenance fee, but that
doesn't mean you won't have to pay transaction fees or
reload fees.

When looking at free prepaid credit cards, you need to look
closely at the terms and conditions of the cards. What a
credit card company thinks is "free" might not be the same
definition you had in mind.

2. Assess All Of The Fees

As I said before, free prepaid credit cards aren't really
ever free. There is always some sort of fee involved.
Because of this, when you're shopping for free prepaid
credit cards, you need to look at all of the fees they
could posisbly charge.

Confused?

Here's an example. Let's say the prepaid credit card you're
looking at doesn't charge a set-up fee, but charges a
monthly fee of $5.95 and a transaction fee of $1 each time
you use the card. If you use the card 10 times each month,
you're paying $15.95 per month for the card. On the other
hand, a prepaid credit card that charges a $9.95 setup fee
with no monthly fee and no transaction fees will cost you a
lot less in the long run.

Starting to see the picture?

This is why it is so important to understand all of the
fees involved when looking at free prepaid credit cards.
Not just the fact that there are no initial set-up fees.
The companies offering free prepaid credit cards need to
make their money somehow, and it's not beneath some of them
to sneak the fees in where they think you won't be looking.

3. Hidden Fees

Some free prepaid credit cards are really sneaky when it
comes to tacking on extra fees. For instance, you may think
you're getting a free prepaid credit card that has a low or
no monthly maintenance fee, but you are suddenly surprised
with a $20 "fullfillment" fee for shipping and handling.

A word to the wise -- read ALL of the fine print when
applying for free prepaid credit cards. In the prepaid
credit card world, what you don't know CAN hurt you.

----------------------------------------------------
For more tips on prepaid credit cards, saving money and
avoiding getting taken, check out CreditCardTipsEtc.com, a
website that specializes in providing credit card tips,
advice and resources.
http://www.creditcardtipsetc.com/prepaid_credit_cards/