Getting The Best Deals On Credit Cards

If you take the time to match the proper credit card with your payment and spending patterns you can save a great deal of money. If you don’t, you stand to pay hundreds or even thousands of dollars of needless interest or fees. As credit card users we all have different spending and payment habits, but they usually fall into one of just a few categories: you might pay off your credit card bill completely every month, you just pay the minimum payment due every month keeping a manageable balance outstanding on your card, or you could be one of the millions of people whose credit card balances stay at or near the maximum amount allowed. Which ever one of these payment profiles fits you, there are hundred of credit card products to choose from that can help you get the most and pay the least when using your “plastic”.

The credit card service industry is a very competitive market place today. Many difference incentives are offered to you by credit vendors in an effort to win your business. You’re probably familiar with most of these: low interest, cash back rewards, zero percent balance transfers, award points, special cards with pretty pictures on them. Many people, me included, are bombarded weekly by credit card offers that come in the mail at an alarming rate. If you’ve chose a credit card from that selection, you’ve probably chosen the wrong one for your spending habits.

Every credit offer that is ever made to you must come complete with a Truth in Lending Disclosure - it’s the law. In the cases of those offers that come in the mail, I make it a game to read this disclosure before the whole thing goes in the trash (which is almost always before it makes it past the garage). The interest rates must be posted in those disclosure statements, and the ones that come in the mail are almost always not the best deal that you can get. As a matter of fact, very often they are humorously high, bordering on predatory.

While you were scrutinizing that credit offer that came in the mail, or the one that they were offering at the mall kiosk, you may have noticed that the focus of their sales pitch was on one of these four types of rewards: 0% balance transfers, cash back, low interest rate(s) or award points. Also, whatever their area of focus, they didn’t exactly shine in the other three areas and may actually be extremely predatory in one or more of those. Here are a few tips you can use to choose the right credit card for your payment and spending habits:

1) Do you have a history of paying off the complete balance on your credit card every month? If so, you shouldn’t be too concerned about the interest rate on your credit cards. However, don’t discard interest rate completely! Keep the grace period in mind - that’s the amount of time between when you purchase something with your credit card and when the bank begins to charge interest on that purchase. Often credit card companies charge interest beginning on the date of the purchase - others offer a grace period that lasts until the end of the calendar month, or for 30 days. A longer grace period can help you save money. Also, if you have balances on other credit cards that are charging interest, a card that offers 0% interest on balances transfers may be the choice for you. Or choose a card that offers reward points - your next vacation could be free!

2) If you keep a modest balance on your credit card (somewhere between 0% and 40% of the maximum amount of credit allowed) then you should keep a keen eye on the interest rate charged on that outstanding balance, but you may also want to look for a credit card that offers cash rewards for its use. This usage pattern is most common, and is actually the credit card usage pattern that favors your ability to build good credit; it shows creditors that you are capable of managing your balance and also makes you an attractive customer because you maintain a positive balance.

3) If your credit card balance is constantly at or near the maximum that you are allowed, then the interest rate that you pay is everything. Do not rely upon credit card marketing material found in email, regular mail or mall kiosks to provide you with the best deal - you need to actively shop for the best interest rate that you can find to control the amount of money that you pay in interest on your balance.

4) No matter what your payment pattern is be sure to pay your bills on time and always pay the minimum due at the very least. Credit card vendors have a nasty habit of ratcheting up the interest rate on your credit cards if you pay too little or too late - they sometimes do it without telling you, and your late payment on one card can affect the interest rates on all of your other cards. Be sure to read your credit card statement carefully every single month, and pay special attention to the interest rate that they’re charging you.

As with most financial dealings, an informed consumer stands to save money. In the case of credit cards the amount of money that you stand to save by optimizing your credit cards to your payment and spending habits can amount to hundreds or thousands of dollars per year. Get in a habit of reviewing your credit cards and shopping for better deals on a regular schedule; you can almost always find a better deal than the one you’ve been sitting on for the past year.

Can Other People Effect My Credit Score

Your personal finances are really tied up with your credit score. Credit scores will determine whether you are approved for a loan, and if you are they will determine the interest rate you are charged on that loan. A good credit score will get you a nice home, and a poor credit score will get you rejected by banks time and time again. Notwithstanding, most people don't understand what a credit score is and where it comes from. Even fewer people know what impact credit scores truly have on their lives.

You might be doing everything in your power to get the highest credit rating possible. But can things that other people do affect your credit? To many peoples amazement, the answer is yes. However, there is a lot that you can do to minimize its impact on your all-important credit score.

Credit bureaus have lots of files on your financial history and credit. The sum of all this information is represented by a three-digit number. The most commonly cited score is the FICO score because it is an average of scores from the three major credit bureaus. Myfico service can allow you to access your FICO score and keep current on your credit.

Credit scores are continuously fluctuating to reflect changes in your account and credit activity. The total amount of debt that you have, the types of debts you've incurred, and your history of paying on time factors into your credit. The amount of time that you have had access to lines of credit also is considered by credit bureaus.

The most critical issue is your payment history, as it impacts your credit score the most. One of the ways in which other people can damage your credit is if a company wrongly reports that you are delinquent in making on-time payments. This is more common that you would believe, and it can be a real fight to fix the damage done.

There are many people who can talk about how one mistake in a company’s accounting department gave them trouble for years, as they could not get the problem fixed with companies, debt collectors or credit bureaus. You do have the law on your side, though, so most of these issues are eventually resolved in the customer’s favor.

If you are surprised by the low credit score you have, its worth your time to check up on the information about you that the credit bureaus are using to get to that number. Do they have any incorrect information about you? Usually you all already know if a company has been incorrectly reporting your payments. There can also incorrect information that is damaging your score.

So to answer the question of whether others can negatively impact your credit score, the answer is mixed. They can by making a mistake, but if you are vigilant and take the time and effort to correct those mistakes you can get your credit back to its rightful place.

Looking To Buy A Home, Improve Your Credit Score

It is difficult for a person with bad credit to get bad credit home loans. And if you are not able to make a sizeable down payment or dont have a regular source of income, things become worse. However there is still some hope for those with bad credits as there a few companies that do cater to the needs of people with bad credit.

With Patience, You will Find the Right Loan

Though there are some companies that offer bad credit home loans, it is important that you place some thought and research before choosing the right company for your financial needs. This is because these loans are usually available at a higher interest rates and closing costs.

If you have some assets that you can place as collateral for the home loan, you will be able to get a loan of a higher amount. This is because if you fail to make repayments towards the loan, the lender can take possession of your asset. These loans are called secured loans and are usually of a lower interest rate and a longer term.

One important thing you have to do before getting yourself a bad credit home loan is to go over your credit reports. This is to ensure that though you have a bad credit report; it is accurate with no mistakes on its part.

Find out If There are Any Pre-payment Penalties to be paid

Another means of improving your credit score is by paying down balances you have on any line of credit. Maintaining punctual payments and being regular in all your credit card and other loan payments all help in improving your credit report.

Another tip to bear in mind when looking for bad credit home loans is not to open or close any new accounts for the next few months. If you do this, it will only lead to a lowering of your credit score for a short span of time.

Instead of doing this, you should concentrate on spreading all your debt across your different accounts or on eliminating debt as this will lead to an improvement in your credit rating and a better chance of getting a bad credit home loan.