Types of Credit Cards - Pros, Cons and Comparison

Business Credit Cards Who They're For: Business Owners & Executives Interest Rates:13.24 - 22.99% Pros: Expect low introductory rates, cash back programs, airline rewards and special bonuses that may include: separate business and personal expenses, additional cards hooked to the same account for trusted employees, expense management reports and increased credit limits. It's easier to qualify for these than it is for a personal loan or line of credit from the bank. Cons: They can be an expensive way of financing purchases, thanks to late fees and interest rates. There is less purchase protection extended to business cards in the event that someone uses the card fraudulently or you need to return goods you are dissatisfied with.

Personal Credit Cards Who They're For: Responsible Borrowers Interest Rates: 9.99 - 20.99% Pros: Standard low-interest cards are good because you can begin developing a positive credit portfolio when you use your card regularly but responsibly, paying off the full balance each month. Many of these cards come with amazing rewards on retail purchases, cruises, airline tickets, gasoline and other perks. Cons: You may be offered a "low introductory APR" or "free balance transfers." Beware of this when making your decision, as that "low APR" will soon balloon to a higher rate, which will then become the standard interest you're stuck paying indefinitely. Also, it's only good to transfer a balance if you can pay it off in full before your "free transfer" is eligible to accrue interest. Read all terms, fees and conditions before signing!

Credit Cards - A Good Servant But a Bad Master

Most of us use credit cards on a regular basis to manage our day to day expenses. Here are some principles to keep in mind when using the plastic.

Rule 1 - Always pay off the balance in full each month

This seems like a simple thing, but it is amazing how many people I have come across who keep an outstanding balance on their card accruing interest at an alarming rate. The best way to avoid this is to set up a direct debit from your everyday bank account which deducts the full payment on the due date. This is not a widely used facility so you may need to ask your bank for the form. Paying your credit card by direct debit will also ensure that you make the most of interest free days (see rule 3).

If you are finding it difficult to pay off your credit card - then you need to spend the time preparing a budget and monitoring your cashflow on a weekly basis.

How To Restore Your Credit Score

There is hope for your credit score. Do realize that your credit score is your vital sign for your financial health? You will learn how to restore your credit score and the great news is, it is possible to see an increase in your credit score in as little at 30-45 days! Don't wait. Start right away and get your financial health back on track. Equifax, Experian and TransUnion will tell you that items will have to wait to fall off in 7 - 10 years. Of course that is what they want you to believe. The three bureaus do not want you to dispute any items on you credit. That means they will have to verify the items and they are not paid to verify the items.

Follow these steps on how to restore your credit score. Restoring your credit score is something that you can do. However, most people choose to hire a credit restoration company instead of learning how to restore your credit score yourself. As you will learn why they choose to go that route. The first thing you will want to do is get a copy of your credit reports from Experian, Equifax and TransUnion. You will need to verify that all the information on your credit report is accurate. By accurate that means, correct address, phone number, amounts, or anything pertaining to the item that is on your credit report. The next step is to dispute any inaccurate items on you credit report. There are people out there getting things like bankruptcies, foreclosures, tax liens, and even late payments off their credit by disputing these items.

How to Get a Rate Reduction on Your Credit Card

The interest rates on credit cards can add up quickly, taking away hundreds of dollars or more annually. Getting lower interest rates or rate reductions on your credits cards can help you save money for other expenses that you face.

Unfortunately, too many people let their interest rates stay at levels that are higher than what they can actually get. Here are just a few tips on getting proper rate reductions so you can keep more of your money.

Credit Score 

Before you can ask for rate reductions on your credit cards, the first thing you have to do is evaluate your current credit standing. This process starts by looking up your credit score. You will want to know your credit score first to see where you stand and if any past issues are still affecting your credit. By cleaning up any past problems, you will have more leverage to get lower interest rates.

Calculate Your Current Interest Rates 

Take all of your current credit card statements and look at the APR (Annualized Percentage Rate). If you are having difficulty finding the APR, call your credit card company and ask what it is. Once you know what the interest rates are, you now have a baseline to work with your credit card company.

Shop Around for a Lower Rate 

If you are in good standing with your credit card company, take a few moments to go to their website and see what rates they are offering new customers. It's quite possible that you'll find that new customers are being offered noticeably lower rates. If that is the case, call up your credit card company and ask for the lower rate. If you are in good standing, you will more than likely get the lower rate applied to your next monthly bill.

Credit Cards - 5 Tips To Keep Them Safe

Credit cards are very useful things to have and they have done away with the need to carry around huge wads of cash. The average person has 2 or 3 cards in order to get a large amount of credit and also to benefit from the various facilities offered by each card. If you have a card as well then you should be aware that there is a possibility of you losing money on account of it. If a person gets hold of your card physically or even just its important information then he or she can rack up a lot of charges that you will be held responsible for. You therefore need to keep it absolutely safe whenever possible.

The following tips will enable you to ensure that your credit card is absolutely safe:

1. Try to keep your card within sight when it is being swiped for a charge. Make sure that the person swiping it uses an authentic looking machine.

2. Do not allow anyone to know your passwords and CVV number (this is the number printed at the back of the card)

3. Try to keep multiple cards with low credit limit on each. This will reduce your risk in case any one card does get misused.

4. Always use your cards at secure locations, both online and offline. If you are not discriminating in how you use your card then there is a chance that it can be used badly. Be extra careful when dealing with online vendors; only ones who have secure websites should be patronized.

5. Avoid using your card from cyber cafes where there is a possibility that your data will get stolen. Be aware that cyber criminals use these places to get data from a large number of credit card users.

6. Do not respond to phishing mails that ask for personal and financial data because they can help thieves rain your account.

The use of credit cards will save you a great deal of time and effort especially since you need them to access the internet. You can use them to buy products at any time of the day or night. You will have nothing to complain about as long as you use your cards in the correct manner. Further, be sure to make your payments in tine so that you do not end up spending a lot of money on fee and charges which are very high in the case of cards.

Read about what you can do to keep credit cards safe. Make sure that your card is always in good hands or else you will lose a lot of money.

By Rizvana Manzoor