Credit cards are designed to offer you a convenient way to make purchases of items that you may not have the cash on hand to purchase. In other words, credit cards are supposed to be a good thing. However, people who have high interest rates on their credit cards typically find that they have more problems than benefits when it comes to the use of their cards. Problems associated with high interest rates include financial stress, an inability to make on-time payments and the feeling that you’ll never be able to actually pay off all of your outstanding debt. To avoid these problems, it is crucial that you learn how to avoid high interest credit card rates.

Here are some of the easiest ways that you can avoid high interest rates on your credit cards:

• Don’t sign up for credit cards with high interest rates. Many people choose to accept offers for all credit cards including cards with high rates. Others will take a card with a high interest rate if it offers them benefits like credit card rewards. If you don’t have a card with a high interest rate, you don’t have the problems associated with high-interest credit cards so simply avoid getting one in the first place!

• Don’t miss payments or make late payments. One of the quickest ways to go from a fair interest rate to a high interest rate is to miss a payment on your credit card. In fact, you can become a victim of universal default which means that all of your credit card rates can go up just because you make a late payment on one of your credit cards. Always make on-time payments to every credit card company in order to avoid the problems associated with high interest rates.

• Read the fine print. One of the most common ways that people end up getting themselves trapped with a high interest rate is that they fail to understand the terms of their card. For example, someone might sign up for a balance transfer rate of 0% and then promptly forget all about the outstanding debt. Reading the fine print would reveal that the low interest rate is only good for six months. After that, the rate goes sky high. You would’ve known that if you had read the fine print and you would be able to avoid the problems associated with high interest as a result, either by not accepting the balance transfer offer or by paying off the debt during the low-interest period on the card.

• Understand how your payments are processed. Many people have credit cards that include a number of different types of transactions – balance transfers, cash advances and purchases are the most common ones. Each of these may have different interest rates. Your payment will be processed to pay off certain transactions first. You should know how this works in order to make sure that you’re paying off high interest credit card bills first.

The most important thing when it comes to the interest rates on your credit cards is that you take the time to know what they’re all about. Always aim to maintain the lowest interest rate possible by avoiding the things that cause interest rates to go up.

Most people are aware of the fact that there are credit card scams out there which can cause them to become the victims of identity theft. Unfortunately, most people also believe that it is unlikely that they will ever actually become the victims of one of these credit card scams. In order to fully protect yourself from the scams that are out there, you need to be aware of the fact that there is indeed a serious risk that you could become one of these credit card scam victims. This isn’t just something that happens to somebody else but is something that could very well happen to you.

The best defense that you have against becoming the victim of a credit card scam is to know what the most common types of scams are so that you can make sure that you don’t get suckered in to participating in one of these scams. There are many different types of scams out there but the most common ones happening right now are ones that take place through telephone and Internet communication. Being aware that these are two high-risk areas of communication that could put your credit card security at risk is going to make you significantly less likely to be impacted by one of these scams.

One of the most common places that you’re going to see scams in your daily life is in your email inbox. There are two major types of email scams that occur. The first is the international assistance scam. In this scam, someone emails you saying that they are from another country and seeking assistance with some sort of transfer of funds. The details may vary but ultimately this involves using your credit card information to assist the individual; ultimately this results in stolen identities.

This scam is actually less common than the second type of scam which is an email that appears to be from a legitimate institution such as your bank. This email will say something along the lines of that your credit card information has been mixed up and that you need to reply to the email with your account information to verify that the problem is going to be resolved. Sometimes they ask you to email your account information, sometimes they ask you to call about it and sometimes they ask you to go to a third party website. In all cases, it is a mistake to give out your credit card information. If your bank needs it, they will contact you via phone or written letter so there’s a good chance that this is a scam.

There are similar scams to both of these that take place via phone or through a combination of email and phone. For example, the latter case may ask you to call a phone number which requests that you input the credit card information into the phone using the phone pad keys, resulting in the theft of your credit card information. Always be suspicious of anyone who requests information about your credit cards over the phone or the Internet. If you get this type of request, contact your credit card company to confirm the legitimacy of it.

You have just gotten approved for your first credit card and you’re ready to start using it. This is an exciting time in life, something that is almost a rite of passage in American society today. However, it’s also a time when you must start recognizing that you’re an adult who has to take your finances seriously. Many people make some big mistakes with their first credit card, mistakes which they end up paying for in the long run.

Here are the top ten things that you don’t want to do with your first credit card if you want to get off on the right foot with good credit:

1. Spend more than your credit limit. Make sure that you are aware of what your credit limit is so that you don’t go over it. This will help you avoid over-limit fees, keep your debt manageable and keep your credit in good standing.

2. Make late payments. This is one of the most common problems people have with a new credit card and you want to avoid it at all costs because it’s nothing but trouble for your finances and your credit rating.

3. Pay only the minimum balance. You want to try to pay off the entire card in full each month to establish good credit and keep debt under control. At the very least, you’ll want to pay as much as possible on the debt each month.

4. Live off of the credit card. You should never rely on credit when you don’t have an income to pay the debt.

5. Buy things that you don’t need. It’s tempting to use the credit card to make unnecessary purchases but you want to avoid this. Try to purchase only those items you would also buy if you only had cash.

6. Use it to help others. Don’t lend money to friends using your credit card because even if they pay you back, you’ve still paid the interest on the card for them.

7. Assume that this is just a trial card. Some people treat the first credit card as a “test it out” card and figure that their mistakes don’t matter. The reality is that this is going to impact your credit so you want to get it right from the get go.

8. Put yourself at risk of identity theft. Before you’ve gotten used to using a credit card, it’s easy to make mistakes that can put you at risk of identity theft. Don’t leave receipts lying around. Don’t lend your card to anyone. Don’t give out account information to strangers via phone or email unless you’ve initiated a purchase. Don’t throw statements in the trash without shredding them.

9. Go into the situation blindly. Really sit down and ask yourself why you want a credit card, what you’re going to use it for, what you need to do to be responsible with it and how you feel about the use of the card. Thinking through it helps you to make better decisions about using the credit card.

10. Be afraid to use it. Some people are so afraid of making the above mistakes that they end up avoiding use of the credit card all together. That won’t help you develop good habits so don’t be afraid to use it as long as you use it responsibly.

If you develop good habits with your first credit card then you can go on to much better use of credit cards and other loans over the course of the rest of your lifetime. If you develop bad habits, you’ll find yourself paying for them for many years to come.

You are going to hear again and again that it is a bad idea to use balance transfer checks when they are offered to you by your credit card company. For the most part, this is good advice. These checks can come with high fees and can cause you to spend more money than you should on your credit card. However, there are times when it does make sense to use balance transfer checks because the benefits of using them outweigh the drawbacks. You should be aware of these times so that you can make wise use of balance transfer checks when they are offered.

Here are seven times when it’s actually smart to use balance transfer checks:

1. When you can pay off the balance during the low-percentage offer. Balance transfer checks usually have a low APR for either 6 or 12 months. If you want to consolidate debt and pay off the entire amount before that time period is up, using the checks could be a great way to do that.

2. When there is no transaction fee. Every once in awhile you’ll get balance transfer checks where the fee to use them has been waived. If the interest rate is low, this is a smart time to use them.

3. When you would otherwise have to make a late payment on another card. Balance transfer checks can be used to pay off other credit cards. If you have no other way of making a minimum payment, this is typically better than getting late fees on those cards.

4. When you’ll have lump sum money coming in soon. Students sometimes use balance transfer checks to hold them over until their school funds come in. If you’re in a bind and the checks come with low interest and low transaction fees, this can be a smart thing to do but only if you really do pay the bill when you get your money.

5. When disorganization with credit cards is getting you into trouble. If having to pay too many bills is causing late fees and over-limit fees then you might want to use balance transfer checks to consolidate and get back on track.

6. When you want to loan someone money with interest. If a friend needs help paying credit card bills then you can use the balance transfer checks to pay those bills and then charge the friend a higher interest rate to earn some money for your help.

7. When you know what you’re doing. As long as you understand how balance transfer checks work and what the pros and cons of using them are then you should be able to use them without serious damage to your finances or your credit.

It is definitely true that there are drawbacks to making use of those balance transfer checks that come in the mail. However, they aren’t all bad. Know how they work and then use them in a smart way to make them work for you instead of against you.

Most people know that they should look for a credit card that is going to offer them a great interest rate without an annual fee. Many also realize that they should seek out a credit card with good benefits and a rewards program associated with it. However, most people don’t realize that these are features of a card that you can actually get after you’ve already owned the card for awhile. There are ways to get a better credit card deal on your existing card rather than trying to find new cards with a good deal. In most cases, all you really need to do is ask.

The ideal time to ask for a better credit card deal is when you’ve already demonstrated that you’re a good customer for the company. If you’ve already shown that you’re going to use the card regularly and make on-time payments, the company is going to want to keep you as a customer. As a result, letting them know that you’re thinking about switching to another company that’s offering you something better is going to encourage them to say, “wait a minute, we can do that for you”.

What you might ask the credit card company for varies depending on your needs. You may want a bigger credit limit which is one of the easiest things to get if you’ve established good credit with the company. You might want a better interest rate. Perhaps you want to transfer new balances to the card and want the fee to do so to be waived. Or maybe you just want your payments to be scheduled for a different date. These are all things that a good credit card company will usually change for you if you ask.

Other requests may require you to upgrade your card with the company. For example, you may want to add a rewards program to the card which the company will tell you it can’t do but they’ll offer you a different card with rewards instead. Alternatively, you may want platinum level benefits such as personal concierge service from your card which would require an upgrade to a new card. The key here is to ask to have at least the same terms (if not better) as your current card and to ask that all annual fees or application fees be waived.

So, are you out of luck with these kinds of requests if you’re not someone that has established good credit with the company? Not necessarily. Being in a financial bind is another good time to ask for a better credit card deal. If you explain to your company that your options are either to get a better deal or to default on the loan, they’re probably going to want to help you out. Alternatively, you can ask a new credit card company with a focus on bad credit borrowers for a better deal than what you get from your current company. Often, this is a case of “ask and ye shall receive”.

There are a lot of people out there in the world who would prefer that your money was in their pockets instead of in yours. Some of these people are legitimate folks who own businesses and market to you to get you to spend your money with them. However, others are people that just want to scam you. Credit cards are one area that a significant number of scams take place.

Here are the top ten credit card scams that you’re going to want to avoid:

1. Preapproved credit cards. When you get one of those credit card offers in the mail that says you’re preapproved for a card with great terms, there’s probably a catch. Often the card you actually get has much less favorable terms. Seek out good credit card deals instead of taking what’s sent to you.

2. Cards with annual fees. Unless there’s something so compelling about the card that you want to pay just to own it, always look for the annual fee and turn down the card that comes ith it.

3. Email scams. There are numerous email scams asking for your personal information or credit card information. For example, you may be asked for the 3-digit code on your card. Or you may be asked for social security information to qualify for a card. These are scams that lead to identity theft.

4. Secured credit cards. The word sounds nice and safe but this actually means that you have to set up a savings account from which credit card fees and payments are drawn.

5. Cash advance checks. They come in the mail and urge you to spend the money on your credit card. They also come with huge transfer fees and limited low-interest rate periods. Don’t use them.

6. Debt management companies. These folks tell you to stop paying your credit card bills and pay them instead in order to reduce the total amount that you owe. Is it ever a good idea to just not pay your credit card debt? Probably not.

7. Applications requiring you to call a “900″ number. If you have to pay by the minute just to call the company, what kind of credit card deal do you think you’re going to get from them?

8. Processing fees. You shouldn’t ever have to pay fees to a company just for processing your application. That’s just a scam to get more money from you.

9. International credit card scams. These may come via email or regular mail and are usually from places like Nigeria. The scams may vary in details but the results are always the same - and they’re never good for you!

10. Imperative offers. If the credit card offer warns you that you must act immediately or you’ll lose the great benefits of the card, it’s probably just a scam. Good credit card companies are going to offer long-term deals that aren’t going to expire just because you took a little bit of time to think about whether or not you really wanted the card.

The first year that you are in business, you’re going to naturally spend more than you make (unless you happen to get really lucky with a profit-generating start-up idea!) This is to be expected but it’s not something that you should just take lying down. You’ll want to do all that you can to reduce the amount of debt that you accumulate in order to start turning a profit as soon as possible after launching a business. To do this, you’ll want to pay close attention to the way that you use your business credit cards to finance the business.

The first thing that you’ll want to make sure to do is to secure a low-interest rate on the credit card that you are going to be using for business. Ideally, you will want to get a zero percent interest rate for a twelve month period of time. This will give you the first year to accumulate business debt without having to pay exorbitant interest rates. Alternatively, you may apply for a long-term low-interest rate on the business credit card (such as a permanent 5.9% interest rate).

Before you commit to getting that business credit card, you should seek out information about the card’s rewards program. You want to take advantage of the fact that you’re probably going to have to put a lot of money on a credit card in the first year by getting back as much in rewards as you can. Business rewards cards may offer cash back, bonus points for business-related expenses or miles towards travel. Find a card that will let you maximize the rewards based on your needs.

The next thing that you’ll want to do is to create a financial plan for all of your business spending in the first year. Allocate a budget for each month after carefully assessing the expenditures that you believe are going to be necessary in the first year. Make sure that you stick to this budget, using your updated credit card statements to double-check and evaluate that you are within your financial plans.

Finally, you are going to want to pay down as much as possible on the business credit card debt each month. Many businesses figure that they’ll deal with the debt problem later, after they’ve started profiting. However, if you’re in a position to pay more than just the minimum payment on the card then you should do so. You want to enter that second year of business with as little debt as possible in order to maximize profits.

This type of approach to the use of business credit cards to finance a business may also be done at different times throughout the life of the business, such as when the company is expanding and needs to go into debt to ultimately make more money. Always review all of the options open to you (such as a business line of credit) before choosing to use credit cards to finance business expenses. And always think through the financial details carefully to increase the amount of profit you earn.

When you hear that someone is evil, does a chill go down your spine? Evil is something that’s associated with cruelty and fear. It’s something that makes you think about the dark corners in the bedroom that make you pull your covers up around your neck a little bit tighter. And it’s something that can be aptly used to describe the practices of your credit card companies. (more…)

Your credit card company always seems to be screwing you over, doesn’t it? They charge you an exorbitant interest rate and then penalize you with fees for being unable to meet your minimum payments. They send you those convenient little cash advance checks and then include the nasty details in print so fine that you can barely even find it. And they supposedly reward you with benefits that you never seem to be able to actually cash in on since there are blackout dates on travel and restrictions on purchases. Aren’t you getting just a little sick of being screwed over by your credit cards? (more…)

Imagine having a conversation with yourself about your credit cards. Does the tone that comes to mind sound angry? Or upset? Are you being mean to yourself because you know that you aren’t as responsible with your credit cards as you could be? Most people have negative feelings about themselves when it comes to their credit cards. Financial problems related to credit card debt are the cause of self-esteem issues, shame and anxiety. However, it doesn’t have to be that way. (more…)