Use Zero Interest Credit Card Offers to Increase Your Credit Score

How to use zero interest credit card offers to increase your credit score is simple by just managing the debt properly. Understanding how your FICO score is figured is part of this management process.  Once you understand how credit reporting agencies calculate your FICO report score, you can start using zero interest credit cards to increase your score

Understanding Your FICO Score

There are many different parts to your credit score that the credit card companies use to set your interest rate, credit limit and even your eligibility for rewards programs.

Making all of your payments on time is a well understood part. Everybody knows this is part of your credit score but there are other factors. If you have not been managing your debt properly, you can increase your credit score almost overnight.

High Balances Hurt Your FICO Report Score

A good example is the person that uses one credit card because it has the highest cash back associated with it. This is good except it the balance is above 30% of the credit limit and detrimental if the balance is above 50%.  Therefore if your current credit card balance is over 30% of your credit limit, you can raise your credit report score by transfer debt from that card to a new card so that each are below the 30% limit.

How To Use Zero Interest Credit Card Offers To Improve Credit Score

Most people with good credit have more than one card. To increase your credit score it is essential that you use more than one card. If your limit is above 30% of the credit limit on one card, transfer the amount above that 30% to another card. Make sure that the balance on the new card is below the 30% needed for an increase in your credit score. This is hard for most to understand. Credit card companies do not care how much total credit you have just your balance to credit limit on any one specific card. If you do not understand why it is ok, just understand this is how they look at it and you must do it.

In the future look at the cash back you earn as compared to the transfer fee you are charged to transfer funds from your favorite card to the other cards. If it cost you more money to transfer than you receive from the cash back program, use the credit card with the lower balance and less cash back as compared to the credit limit.

Which Are the Best Credit Cards?

Comparing interest rates, annual fees, introductory offers and special benefits is easy. Compare cards over the long term. A credit card that offers you 0% interest for three months but then shoots up to 30% would not be as helpful as a credit card that has a steady 9% interest rate all the time. Compare different cards and terms before committing to one company as not all offers are the same. While you may get a ton of promotional offers in the mail, it is best that you see all of your options before making a decision that is in the best interest of your financial situation.

Interest is charged as a percentage of your outstanding balance (purchases and charges reduced by payments or credits posted). Interest rates are often higher than with standard cards; annual percentage rates (APRs) on affinity cards range from 15-22 percent. Many charge annual fees, while most standard cards do not. Interestingly, but 50% of those surveyed said that they planned to give gift cards. The truth is that practical gifts have never been so popular!

Interest charged could exceed the low payments your provider suggests, and you could see the debt snowball as your credit card provider profits. Balance transfer credit cards allow you to consolidate debt that is spread across several credit cards onto one card. The best credit cards in this category feature 0% APR for an intro period from 6 to 12 months. Balance transfer with zero APR for first nine months. After that period, it can be waived with at least nine purchases in a year.

Take time and search through these credit card offers and apply for the one that best meets your needs. Student’s credit cards are aimed at those with fair, bad or no history. These cards will help students improve damaged scores or even build credit history from scratch.

Bankruptcy destroys credit ratings. This can make getting credit cards difficult. Travel credit cards or a prepaid travel credit cards are products that most credit card companies offer. The travel credit card allows you to earn points when you use your card for purchases, which makes for the best travel credit card. If you carry a balance from month-to-month, you’ll pay less on interest charges over time.

Fees, such as balance transfer fees, cash advance fees, over the limit fees, and late fees, can really put a big dent in your budget. Choosing a credit card with low fees from the get go is one of the best moves you can make.

Basically, you divide the interest rate into 72 to see how long it will take for the debt to grow. If you are being charged at 12% your debt will double every 6 years (72/12=6). Cash-back and other value additions score over insurance when it comes to valuing adds. Cash back credit cards give you money back for each transaction and are offered by some credit card companies. How much cash back you will get per transaction is determined according to your credit rating.

Debt is NOT your friend before a failed application will also have a negative impact because of it will make to obtain credit. Debt is mushrooming at a surprising velocity, and a growing portion of people found their balances growing larger and larger. You’ve exceeded credit limit as you don’t want to find yourself. You are nearing it for it is Traveling to other countries and the credit card company is regarding the limit. You’ve got your own credit card per you have any bills on you have to prove you’re and It is showing your previous records with you might be qualified for lower rates.

Add in an economic downturn and people who have traditionally been able to avoid stress in the past are suddenly bogged down by it. From depression to sleepless nights and anxiety attacks, there are plenty of stress effects that can show up in a physical form in the body.

Check the payment option and guidelines on your bill. The best method of avoiding late fees is to set up a direct debit for the minimum payment each month. Check each section carefully for any errors. Note any errors you may discover on a separate piece of paper as you read over your report.

No Credit Check Credit Cards – An Economical Aid Or a Drawback?

It is a well known fact that the world is undergoing a rough financial situation nowadays. The international financial crisis has a global impact, leaving hundreds of people out of work every day. The people who were once in a good financial situation are now undergoing economical hardships and find it difficult to obtain a credit card.

In these cases, a no credit check credit card seems like the best way of getting back on your feet. The companies that offer them will provide you one of these also known as pay as you go credit cards and highlight their pros. They will tell you that you do not need a credit check or bank account to get one of them.

So you will probably wonder what is it that you do need to get a no credit check credit card. The answer is money, which is ironic since that is what you do not have in the first place. Getting a no credit check credit card requires an initial payment to buy the card, but as time goes by you will find that you will need to pay for a lot more.

There are extra fees for every transaction you make with your no credit check credit card. The point is you will be paying for using your own card, for the privilege of spending your own money. Sounds funny, doesn’t it? You will find yourself struggling to find extra money to pay for these fees every time you decide to do something as simple as going shopping.

Basically, these cards will provide you no benefits over a debit card; it is the same, but with a little difference: you pay more with no credit check credit cards. Pay as you go credit cards offer you an illusion, the idea of having a credit card makes you feel like you do not have as many economical issues as you do.

Do not let yourself be cheated by these companies. If your main problem is debts, no credit check credit cards are not the option for you. You will end up acquiring more debts just to try to pay for the credit card fees. There is no point in this at all. These cards offer you no advantages or benefits whatsoever.

Also, there is the common knowledge that using no credit check credit cards can help you rebuild your credit score. However, this is not true. As a matter of fact if you chose one of this cards instead of the regular ones that can worsen your credit score.

So be smart and get one only if extremely necessary, that is, if for some reason you cannot obtain a debit card. Remember that if you are looking to stay away from debt and spending extra amounts of money, no credit check credit cards are not the right choice for you.

Credit Card Usage – To Use Or Not to Use a Credit Card?

Credit cards are a convenient form of credit and often provide an edge over other forms of payment. They save you from carrying around large amounts of cash and allow you to easily purchase products and services online, over the phone and even on your travels. On the flip side, there are times when cards usage should be avoided to ensure unnecessary interest payments do not get out of control. In this article we will cover when is the right time to use a credit card and also situations where credit card usage should be avoided.

So when is the right time to use plastic?

Paying for goods and services online is certainly much easier with the use of a card but better still; some credit cards will even help protect you. When purchasing online, you can obtain product protection and extended warranties with certain credit cards. This is great peace of mind, especially in a world where many people are still developing trust in regards to making purchases online.

Travel is another great example for the right time to use a credit card. Imagine you are tired from a long haul journey, you’re carting a heavy suitcase around, your kids are hungry and the map you were given is about 10 years out of date – you’re lost in a foreign city. The last thing you want to be worrying about is dealing with a foreign currency to book your hotel room. Both MasterCard and Visa are global brands and recognised in most countries and make life a lot easier when travelling abroad.

Emergencies – let’s face it, we all have them and they always seem to crop up at the most unfortunate of times. Your hot water system blows up, your car tyres need urgently replacing, the garden fence blows down and your insurance policy does not cover it. These things do happen and it’s comforting to know that with a credit card, you won’t be left stranded until your next pay day. When the emergency is over and you’ve found your feet again, try to pay off your credit card as soon as possible to avoid excessive interest payments – or at least switch to a low interest rate card.

When not to use a credit card

Credit cards are a great convenience in our everyday lives but it’s important to use them wisely so they do not become a problem or source of worry. Some situations, as mentioned above, are unavoidable but where possible we have listed situations where you should ideally opt for an alternative payment option.

The biggest trap to avoid is withdrawing cash at ATMs. Most cash machines will let you draw out cash using your card but this can lead to disaster. Cash withdrawals will attract a fee of a small percentage of the amount you withdraw and advances are also usually charged at a much higher rate of interest than purchases. If this is your absolute last resort, tread with care. The best possible scenario is always to withdraw cash from a debit or savings account where the money is already yours.

Impulse spending – most of us are guilty of this and often live to regret it or hasty decision. Often what seemed like a good idea at the time can end up costing you in interest payments so think twice before committing to a purchase. Sleep on it over night or even leave your plastic at home if you are going shopping without a specific purchase in mind.

Paying your bills with a credit card is often easier than physically going to the post office, but it’s only a good idea if you are 100% sure you can pay your bills off in full the following month. If you are using your card to pay bills because you can’t afford to pay by other means, now is a good time to seriously look at your personal financial situation and seek help.

Finally, don’t pay off other debt using your credit cards. Credit cards are not the cheapest form of borrowing and unless you are looking at consolidating debt by transferring to another credit card provider on a 0% balance offer or low interest card, you will find yourself in trouble. If you need to borrow a substantial sum of money, a loan may be a cheaper option.

Credit card usage really comes down to common sense and your own individual circumstances. Try to keep borrowing to a minimum, keep a level head and remember that when used wisely, credit cards are your friend.

Unused Credit Cards – To Close Or Not to Close?

16.3 million consumers in the UK have an average of 2.3 credit cards they no longer use – that’s a total of 38 million cards, with an enormous collective credit limit of £200 billion, according to research from independent price comparison site uSwitch. However, in today’s economic climate, should we be leaving these unused credit accounts open ‘just in case’ or closing them as soon as we switch to a new credit card?

With unemployment on the rise and credit increasingly hard to come by, it might seem like a good idea to keep an old credit card account open as a financial safety net, in case you lose your job, have your application for a new card declined or just ‘for a rainy day’. However, this might not be the bright idea it seems – keeping credit cards you no longer use could have a negative impact on your credit report, and even put you at risk of fraud.

Unused credit accounts can damage your credit rating, because providers look at the total amount you could potentially borrow across all your credit accounts. Therefore credit you aren’t even using, as well as what you actually owe and your repayment history, will be taken into consideration when you’re applying for credit. It’s also worth noting that providers sometimes close down these unused accounts or may even charge a fee to customers who don’t use their cards.

Keeping credit cards you don’t use any more could also put you at risk of fraud. Periods of recession tend to see an uplift in fraud cases, and according to Credit Action, last year alone a shocking £54.1 million was spent by fraudsters on lost and stolen credit cards and another £10.2 million on cards intercepted in the post. This type of fraud could go undetected on credit card accounts that you aren’t checking regularly – particularly if you move house and forget to notify the card provider of your new address.

Here are five tops tips to help you avoid the credit card closure trap.

  1. Check your credit report – it will show you all your credit accounts and could alert you to an old credit card you’ve forgotten about. It’ll also help you to spot unfamiliar credit applications and unexplained balances, which could indicate that you’ve been a victim of fraud.
  2. Close down accounts you don’t use, particularly if you’re applying for credit – the available balance on these accounts will be taken into consideration when you are applying for a new card. You don’t necessarily have to close all your old credit cards – but if you’ve got more than one or two, a spring clean could be a good thing.
  3. Sometimes, the best deals on the market are only available to new cardholders, and by canceling your existing credit cards, after a short period you should be able to qualify as a ‘new cardholder’ again.
  4. Cutting up a credit card isn’t the same as us cancelling it. Cutting up a card might stop you from using it, but you also need to contact the card company and tell them you want to cancel. It’s also a good idea to request a written confirmation of your cancellation too.
  5. Sometimes, even though you’ve cancelled your card the account may not be closed. Credit card companies sometimes leave accounts dormant for a while in case any payments you’ve made haven’t come through yet, so it’s worth making a call a few months later to double check it’s really closed.