August 19, 2008
Applying for a Credit Card - What you might have missed
What you don't know when you apply for a credit card may hurt you....
Here we are going to demystify the jargon associated with online credit card applications so that you can apply for a credit card that fits your needs.
First you will see there are several categories and sub-categories and even that can be broken down further into even more types of credit card offers. Yes, it can get a bit confusing. Perhaps confusing is the wrong phrase, it's more like information overload when you set out to apply online for a credit card offer.
The 2 top level categories you must focus on is where your credit score is. If you have bad credit then only apply for card offers that are designed for your credit situation otherwise your application will be rejected and your credit score will be further impacted making it more difficult to qualify for a credit card.
Now if you have good to excellent credit then you should apply for a credit card that offers added benefits and perks.
For those with Poor to Fair Credit
My advice when I am helping others with financial planning issues to apply for a card designed specifically for those with bad credit and uses that as a tool to restore your credit rating.
Secured Credit Cards
When you have bad credit the best option for you is a secured credit card. The way a secured card offers works is this simple:Let's say you want a $2000 line of credit, the issuing card company will require you to place $2000 in a bank account as a security deposit to eliminate the risk to the bank.
You don't have access to the $2000 security deposit and it is not used to pay your balance owing each month. A secured credit card works exactly like a regular credit card so you still receive a monthly bill that you must pay at least the minimum balance.
One of the best secured credit card offers on the market today is the Bank of America Secured Visa® Card
Get more details and apply online for the Bank of America Secured Visa® Card
Bank of America Secured Visa® Card - Click here to apply now.
Debit Cards
Prepaid debit cards are very similar to secured credit cards, the difference is that with a prepaid debit card you fund the card and the money you place on your credit card is debited until there are no funds left. There is no security deposit that's held, you apply the cash to the card then use that cash until it's spent. Once the funds have been depleted you need to fund the card again.
For those with Good to Excellent Credit
Balance Transfer Credit Cards
If you currently carry a balance on your credit card then a balance transfer card is the perfect tool to save money right now. You can get 0% introductory rates anywhere from 6 months up to 15 months.
It is important to note that if you are late or miss a payment that the 0% APR intro rate will usually be revoked and regular rates will apply. You should use a balance transfer credit card as a way to pay off your credit card debt, but you must be discipline and make sure those bills get paid on time.
Rewards Credit Cards
Yes, you really can earn rewards you credit card purchases and with our exclusive online shopping discount section there are even more savings to be had so you need to further drill down into the credit card rewards category to get the best deal for yourself
To get a list of the credit card reward programs available please visit our application section of the site to find the best credit card rewards for your needs.
August 14, 2008
Comparing Credit Card Offers Demystified
How to Compare Credit Cards
Before you dive in and begin to compare credit cards there are a few things you need to know in order to find the best credit card offer. Each cardholder is looking for different features and benefits based on credit history and lifestyle. In order to find the best offer for your current credit situation and what benefits you desire you need to compare credit card offers by category.
I am always shocked to hear how much time people spend trying to figure out what credit card offer they want to apply. The reason people tend to get confused about card offers is largely due to the sheer volume of applications to choose from.
So let’s get down to the basics to help you select a card offer category to get you the best credit card deal possible for your situation.
Let’s start with this question:
Do you currently carry a sizable balance on an existing credit card?
If so, you should really consider a balance transfer credit card offering introductory rates of as low as 0% APR for anywhere from 6 months to 15 months.
The reason I recommend a balance transfer card for those people that carry large credit card balances is this can save you hundreds of dollars every month.
The next consideration you must take into account is where your current credit rating stands. If you have bad credit then you likely won’t qualify for a 0% APR balance transfer card offer so you will need to consider applying for the following card categories:
1. Prepaid debit card
It’s important to find out if any fees associated with a prepaid card are reported to the credit bureaus because you will want use this as an opportunity to build your credit score so that you can qualify for credit cards offering rewards and other perks.
2. A secured card offer
The difference between a secured card and a debit card boils down to this a secured offer holds a security deposit that you pay which the card issuer holds, however the security deposit is not used to apply to the balance you owe. A debit card is funded first and then you spend what you placed on the card.
The next thing you want to take into account is what the ongoing interest rates are, the biggest burden that cardholders have is high interest rates which cause a downward spiral effect because you are compounding interest month after month making the bank rich.
After consider ongoing APR’s the next feature you should look for in a credit card is the rewards programs available. My personal preference for credit card rewards are offers that give you cash back. Heck, cash is the best reward because you can use it for whatever your heart desires and best of all if you do tend to carry a balance you can use your cash back rewards to pay down the balance owing on your card.
Now that some of the confusion has been taken out of which credit card to apply for, take a moment to visit the credit card application section of Crediteria.com (click here) right now to find the best credit card offer for you.
May 09, 2007
Credit Card APR Wuzzup
Credit card APR's can be very confusing for most so let's chat a bit about what all these freakin' APR's mean. It's bloody confusing for most because every credit card has several APR's attached to it
1. Intro APR's - Introductory rates are used as short term bait to gain you as a client. Every bank offers an incredibly low APR to attract you as a customer. Intro rate usually are for 6 to 12 months and come with many outs for the bank. Default on a single payment and kiss off the intro rate
2. Purchase APR - A rate you pay when you make a purchase of a product with you credit card
3. Cash Advance APR - Draw cash from your credit card and you will pay a very different rate from purchasing products on your credit card. Big time hint: Never use your credit card for cash advances, the banks are going to hammer you this.... Did I mention, never use your credit card for cash advances
Posted by Colin at 05:30 PM | Permalink | Comments (0) | TrackBacks (0)October 21, 2006
A Story of Success
In the last 6 years I have managed to build an online business despite all the nay-sayers and propel myself to a point where my financial decisions have become very different.
Six years ago my concern was about holding on to the house. It was an average Joe house with 3 bedrooms. Ya know the typical living room, dining room, kitchen and 3 bedrooms on the main floor. The lower level was recreation room and laundry room. The house was basically average and was what many "worker bees" strive for.
Well, after starting my own business I have been able to afford a 4 bedroom, 3 level house with an amazing view. And...Are you ready for this...Rolling the clock forward to the "here and now
" I am faced with the problem of tyring to buy my second house.
No, I am not talking about selling this house and buying another, I am talking about buying and owning 2 houses based on my internet business income.
The thoughts have changed from:
"How am I going to afford this single house"
to...
"How much can I get tenants to pay for one of my houses"
Why am I telling you about this?
I am telling you this because I was once in your shoes. I was a guy trying to make a life for my family and do what it took to pay the bills and trying my hardest to figure out a way to hang on to a house.
Now I am trying to figure out how to maximize my income from a rental property. I am looking to maximize a positive cash flow from a rental property and how to best leverage the equity in each house to buy more houses or make other investments.
I am in the process of developing a mentorship program to bring others to my world and have the same kind of money problems I do.
The money problem I have is what most people aspire to, that is the problem of having too much money and trying to figure out how to best leverage that money to make more while not paying excess in taxes (there are steps you can take to minimize taxes and minimize them legally).
OK...I must get back to documenting my exact steps to success so that I can share them with you. Heck, if we were all financially free the world would likely have a very different and positive look and feel dontcha think :-)
September 05, 2006
A Bank Reimbursing ATM Fees, Could it be?
It seems that PNC bank is striving to capture customer loyalty be provided selected customers with reversals on ATM fees. The move makes sense. What do consumers want after all? They want more money in their accounts. The national banks might want to take notice of PNC, with their approach I think they could be a viable national competitor.
After selling it’s line-up of credit cards to MNBA in 1999, PNC bank is entering back into the consumer credit card market. The difference this time is not to aim at a national effort rather to focus on a core of 8 states, including Washington DC.
If you reside within the area PNC bank deals in, they are a worthy competitor to the national banks card offers.
Providing you with 0% introductory deals for 12 full months (which is an incredible deal) as well as very low ongoing rates plus rewards points of 1 point per dollar spent (an industry norm).
If you are a customer of PNC bank I would urge you to inquire about receiving cash back on your ATM fees and use take advantage of their 1 year 0% interest offer. Inquire about balance transfers from higher rate cards, PNC’s credit card offers could save you big time!
August 22, 2006
Student Loans, College Enrollment - Is it worth the risk?
With summer winding down and the school year upon us, college students are heading back to school. By now the student loans are in hand and tuitions are likely paid. The daunting cost of text books is just around the corner. The cost of education has come to outrageous levels and many students are looking at an uncertain future.
Is the cost of college really worth it?
Many students leave college with debts in excess of fifty thousand dollars and for what, a shot at a decent job, notice I said decent not great.
For the most part students are facing a very competitive job market and the nature of today’s business is to hire the young guns right out of college. Alright, so it seems you have a good chance of landing a job, but is that job going to provide you with the ability to support yourself considering the student loan repayments?
Businesses hire the fresh college grads for two reasons:
1. For their enthusiasm and give it all attitude
2. New grads will work for less.
Now think about it. Is it worth it to graduate with $50,000+ in debt load for a low paying job?
The enthusiastic new grad may think so. The thinking being that they will climb the corporate ladder and settle in with a nice salary over the years.
Guess what!
After a few years the enthusiasm for the job dwindles and the salary expectations increase.
Now you (the new grad) are no longer the new kid on the block. Companies will be looking for ways to push you out the door and hire a fresh batch of youthful go-getters to run the show and the cycle will continue.
It makes sense economically for companies to do this.
One more thing, don’t forget about the fact that we are living in a global market place and what Americans perceive as low pay, other workers in other countries view it as a small fortune.
There was a point in my life that I was going to pursue a Masters degree but realized the risk was not worth it. I chose to pursue launching my own business, which has been a very wise choice for me. No student loans to pay off and huge cash rolling in. Nobody to answer to and a life of increased freedom.
Just some food for thought before signing for that student loan.
August 19, 2006
High Earnings Can Lead to Serious Trouble
I am here to speak to you from the voice of experience - Earning a fortune can lead to some big time financial troubles.
The problem begins with, say starting a business. Your business takes off, you buy stuff, expensive stuff. You might have bought into the idea that it is better to finance and have some cash in the bank than to purchase your expensive acquisitions outright.
I can tell you I chose the path of financing everything - My new cars, throwing big screen TV's and home theater equipment on credit lines.
My latest purchase was $24000 on a new travel trailer - This time I chose the pay cash option.
You see, sometimes these huge earnings from a highly successful business can drop rapidly leaving a serious cash flow problem at hand. This time, I have my expensive toy but should my business take a hit I don't have any cash flow problems as I have not taken on new debt.
In fact my research has shown me that my travel trailer will hold it's value for many years. Should I ever need the cash I can sell the trailer for close to my purchase price providing I maintain it well. Which I am doing.
I hope this can help a fellow high earning business owner in a financial decision - Even if your income is not at an incredible level the same idea should be applied to your purchases.
Posted by Colin at 10:59 PM | Permalink | Comments (0) | TrackBacks (0)Release Others From Your Financial Problems, Serenity is Key
We have big plans and goals. We feel ready to move forward, but we're dependent on others.
"If so-and-so would do such and such at this time, I'd be able to take on some extra work."
We expect others to operate in our framework, on our timelines. We expect them to understand our needs.
We may even expect them to read our minds!
The level of our expectations is directly related to our level of serenity.
The more we expect of others, the more disappointed we can get.
This is not to say that we forget our dreams. We still think as big as we'd like,
and we still seek support from others. We just learn that we can't connect our expectations or our
thinking with someone else's behavior without running the risk of being disappointed.
We accept that we cannot change another. We accept reality with grace and move forward from there.
Today release others from your expectations.
In doing so, you gain serenity.