Comparing Credit Card Offers
Following the changes to the credit and loan industry that went
into affect in October 2005, you may be noticing an increase in
the number of credit card offers you are receiving in your
regular mail and on the Internet. The banking industry was able
to secure changes to the bankruptcy laws that will make it
harder for you to file for bankruptcy. It will be more important
for you to be careful with the credit card applications.
If you've been in the market for a new credit card, but don not
want to pay more than you have to in interest rates, you will
need to sort through the promotional offers credit card
companies throw at you to determine the card with the best rate.
This will require you to take your time to carefully read the
application and you can indeed find all the information to
protect yourself.
While searching for credit cards online do not apply for cards
at websites that do not have encryptions. You can identify this
with the lock and key in the lower right corner of your browser.
Another security measure is the web address will start with
https instead of only http. Insuring that you watch these
features will help in protecting your identity. Be sure to learn
about your liability in the event of fraudulent activities on
the card. Before you apply be sure to read the Terms &
Conditions of the card providers to make sure there are no
hidden fees. Look for terms like security, fees, deposit, annual
rates, and so forth. The fine print needs to be read carefully.
If you do not understand the information contact the bank for
more information.
The key to knowing how much you're paying in interest lies in
understanding the annual percentage rate, or APR. The APR is the
interest that is charged on your credit card balance each year,
and is subject to change depending upon nationally-set interest
rates and the cardholder's credit rating. If you want to compare
credit cards based upon the interest that they charge, then you
should compare them based upon the APR of each card. The APR of
the card is required to be disclosed along with additional
information concerning billing structures, additional fees, and
how these rates and fees are calculated and charged.
The length of time for promotional APR financing is a key area.
The card providers may offer 0% Annual Percentage Rates on all
purchases made on the card, which includes any balance transfer
up to twelve months. There may not be annual fees attached to
the card, something that will benefit you. Other promotions or
included services would be rewards programs and cash back
bonuses. The bank rewards may be permanent, and then the card
provider may offer additional bonuses, such as gift cards or
certificates that enable you to turn $10 into $20 easily.
Some of the cards available offer Fraud Protection, which is
free. This means you get $0 Fraud Liability Guaranteed. The
providers will provide you with free advanced alerts if fraud
has occurred on your account. You will receive services that
provide you with free online secure account digits, coupled with
24-hour customer service in the event fraud occurs on your
account. The service providers claim to handle your fraudulent
problem in less than a minute, and they will offer free
opportune e-mails that will 'help you avoid fees.' It is nice to
find lenders that present cards that have 100% fraud protection.
Finding the APR
In order to find the APR among all of the promotional
information that generally accompanies credit card flyers,
mailings, and websites, it's important to know where to look. If
you're evaluating credit cards online, you should be able to
find a link that will take you to a separate page that contains
financial disclosure information and a chart that lists the APR
along with other fees and charges that might accompany your
card. If you are looking at a mailing sent by the card company,
there should be a separate page (or possibly the back of a page)
that contains the same information and chart.
Promotional Rates
Most promotional rates only last for a few months, generally
six, but that means that there are six months during which
you're only paying a very small interest rate. This can be
especially useful if you're transferring balances from other
cards or using the new credit cards to pay off older debts. It's
important to make sure that the rate which the card will revert
to after the promotion is something that you are willing to pay;
however, you may end up with a much higher rate than you were
originally seeking.
Comparing Credit Card Offers
When comparing credit card interest rates, you should compare
the APR of each card that you're considering. Look for any
processing or activation fees that may be charged, and avoid
them if possible; if not, factor them into your considerations.
You are looking for the card that has the lowest APR and that
has lower fees than the other cards or if possible that has no
fees at all. Do not ignore promotional rates. If you can find a
card with promotional rates that also has a lower APR than some
of your other options then you have found a card that will meet
your financial needs.
Applying for Credit Cards
You no longer have to wait for the mail carrier to bring you
that envelop that reads "Apply Now." Although, your mailbox is
probably inundated with many credit card offers already. If you
go online to apply for credit cards you will find it easy to
compare cards, get the best rates and so forth. It is important
that you settle on a single company to apply for a credit card.
If you apply for several credit cards online then the creditors
will review your credit report, which affects your credit
rating. Each time a creditor reviews your report it takes away
points. Therefore, only apply for the low rate, no fees cards
that suit your need and a single creditor.