Category: credit card

Credit Cards With An Annual Fee

Most credit card companies will offer a premium option for their credit card customers that will generally be a credit card that you will have the option of paying for. These credit cards will in most cases have a name such as a gold card or a platinum card and many customers will buy them simply for the prestige that they purport to offer. However, such cards will generally also offer genuine benefits to their customers such as reduced interest rates on your balance, a higher spending limit, better terms and conditions, attractive reward schemes and other benefits.

You may find that the benefits of these cards will justify paying a subscription fee for the card. While the subscription fee will be a fixed amount that you pay monthly or annually, you may decide that you will recover this and more with the better terms and benefits of the premium card. You will have to look at the advantages of the card carefully though before deciding to pay for it, as you will have to see that the incentives do in fact outweigh the subscription costs. However, given the very attractive rates that are available nowadays with credit cards, such as 0% offers and other reward schemes, premium card providers will be finding it more and more difficult to persuade customers that their gold and platinum cards are worth paying for.

There is another type of credit card that customers will find that they have to pay for. These are high risk credit cards or cards for customers that have poor credit ratings. When you have a poor credit rating, it gets harder to find a credit card that will approve you. In general the terms will become less attractive and you will have to pay higher interest rates on the amounts that you borrow. As your credit rating gets worse, the terms get worse and may find that they only way you can be approved for a credit card is if you pay a fee. This fee may be monthly or annually and will vary from company to company.

While you may decide that paying for a credit card is not worth the hassle, there is one benefit of doing so. If you show that you can handle debt responsibly and do not get into trouble with your card repayments, then you may be able to improve your credit rating by making all the repayments you owe on the card on time. The only thing you will have to watch out for is that you do not let the card get out of hand and simply add to your credit problems.

6 Major Difficulties Faced By Students With No Credit History Or Bad Credit History

The seeds of a good career are sown in student life but few students really know that the foundations of a good credit history also take shape during this vital period. If a student doesn’t care about developing a good credit history during his student life, he or she will face difficulties when he gets out of the college. Here are few things which will bother a student without any credit history or having a bad credit history as he steps out into the real word.

Finding an apartment

The landlords will check the credit history before renting out an apartment and if he finds that there is no credit history or a bad credit history, things will become difficult. Chances are good that he will refuse the deal or charge huge amount of money as security or advance before renting out the apartment.

Getting the utilities

Electricity, gas, water supply companies all check the credit history before providing the services. The idea is to gain confidence about your financial position. If they do not find anything to bank upon from your credit history, they will ask for advance deposits before providing their services.

Getting the car insurance

The same things apply to car insurance companies, they will charge high premium rates before giving any insurance to a person without any credit history or less than perfect history .

Getting a loan

Nothing drives away the lenders more than a person with no credit history or a bad credit history. Lenders can’t get any idea about what is your repayment capacity and repayment record, so they won’t lend you money. Even if someone agrees the interest rates and repayment terms will be stricter and there will surely be a demand for collateral.

Getting a credit card

With no credit history or bad credit history getting a credit card becomes increasingly difficult. If the concern is bad credit then the interest rates will be very high and repayment terms tough. If the credit card companies do not find any credit history, they will ask to start building it before issuing a ‘real credit card’.

Getting a job

The first challenge students face in real world is to get a decent job. Almost all employers check the credit history of students before offering them any employment. Chances are good that if you don’t have any credit history at all or have a poor credit history– you won’t get a dream job!

So, the fact remains that building a good credit history during the student life really matters. It starts with getting a good student credit card, using it wisely, not over indulging and repaying the credit card balances on time. This is all that takes to build a good credit history. It will ensure, that your career and dreams aren’t hampered due to lack of credit history.

Solving Your Debt Problems With An Iva

The global credit crunch has caused chaos in the financial markets over the past year, and many of those in deep debt have had to turn to solutions such as an IVA, which could help them to escape debt more quickly.

An IVA is known to be a softer form of bankruptcy, and is an effective way for many people to get themselves out of debt more quickly if they are in unmanageable levels of debt. The full name for an IVA is an Individual Voluntary Arrangement.

Over the past couple of years companies that deal with IVAs have been engaging in more advertising, and this has resulted in increased awareness about this debt solution amongst consumers, and subsequently in increased interest in this solution.

An IVA or individual Voluntary Arrangement is a solution that could help many people in debt, and many of these borrowers may be able to escape the harshness of bankruptcy by opting for an IVA IVA is a process that gives borrowers the chance to get out of debt far more quickly, and is known as a softer alternative to bankruptcy.

There are specialist firms that deal with IVAs and debt charities can also offer more information on this process if you are interested in opting for the IVA route. However, you will only be eligible for an IVA if you meet the set criteria required for this process.Generally you will need to have unsecured debts of at least ?15,000 with a number of different creditors, and you or your partner will need to be in full time employment to qualify for this process.

An IVA should not be looked upon as an easy solution to get rid of your debts, as it can be a long and stressful process, and can really impact upon your financial future and credit said, you can benefit in a number of ways from entering into an IVA. You will have to make just one affordable monthly repayment each month, you could find that you are debt free within just five years, and you may have a lot of your debt written off as part of the process.

With an IVA your single monthly repayment is distributed between the various creditors on a pro rata basis, based on the amount that you owe to each lender, and these repayments usually continue for a period of five IVA is legally binding so you must make sure that over the term of the agreement you stick with the terms and repayments. After the five year period any outstanding balance tends to be written off, leaving you free of debt.

Those that cannot or do not wish to enter into an IVA can look at various alternative solutions that may prove effective, such as reaching an informal arrangement with lenders, entering into a debt management plan, or consolidating the various debts into one loan

Avoid Holiday Burnout With Tension Reduction Tips

The happy season is fast approaching and for several people, tension depression and anxiety can build this season anything but merry. Here?s five stress reduction tips to assist you avoid burnout throughout the vacations:

? Lower your expectations. The vacations are thus exciting! Being with loved ones, Christmas decorations, lights, presents and a ton of feasting! As the holiday approaches, expectations increase as to how the vacation will be only for them to be dashed when the vacations arrive. Thus, attempt not to position high expectations on how events will unfold. Always expect the sudden and keep in mind that humans can react unpredictably and surprisingly. Additionally, life will throw us the odd curve ball, particularly after we least want it, thus just have a ?what can be will be? attitude and hopefully, the vacations will be perfect. Avoiding high expectations suggests that you won?t become wired or upset ought to things not flip out the approach you wanted.

? Set up ahead. Create a detailed set up for all of the items you need to do. Be thorough and attempt to try and do as a ton of earlier as possible. The more you’ll be able to get done before the holidays the less stressful the season will be. Embody shopping, decorations, wrapping, meal preparation, sending cards, visiting family, and a schedule for the massive day. This can help you get organized so you?ll get additional done and you?ll feel less stressed. Create checklists thus you’ll mark progress as you go. Another nice tip is to own a backup arrange in case things go awry.

? Delegate. There?s a lot of work that desires to be done to ensure happy holidays. The Christmas dinner alone extremely can be exhausting work for the cook! Too much work leads to worry burnout thus create positive the whole family share the workload. Delegate by sharing chores amongst the entire family and find kids involved too. It?s true – many hands make lightweight work – and that they also reduce tension in doing so.

? As much as the vacations are concerning spending time with family, having the family over can be highly stressful. Not all families get along, and stress levels can soar at get-togethers. If you have family members who are unappreciative, argumentative, aggressive, sulky – the type of folks who can spoil the day, then say ?no!? and don?t invite them. The vacations are about joy and happiness, thus inviting people who can ruin everyone?s day isn?t on. However a sense of duty will lead to inviting someone around against your higher judgement. Your only duty is to your immediate family – your spouse and your kids – not to any other family members. If your family get along, fine, but if you know there?s going to be fireworks, then create everybody?s day by not having stress as an unwanted vacation guest.

? Set your budget and stick with it. It?s extremely tempting to spend cash during the holidays and several people will rack up huge debts doing so. The debt then becomes a major tension issue once the holidays have ended. You don?t need to search for folks expensive gifts and you don?t want to go into debt to impress people. The Net could be a fantastic supply for finding artistic and imaginative gifts that can give the receiver a highly valued special surprise as a result of it shows thoughtfulness. Debt is to fret what pizzas are to waistlines and you’ll pay a heavy value for impressing folks with gifts. Stick with your budget and you will reduce tension, not just over the holidays but for many months after.

What Does Your Credit Report Say About You?

According to the Bank of England, last year Britons owed roughly ?1.8 trillion in the form of mortgage debt. Another ?213bn was owed in the form of credit cards, loans and overdrafts.

It?s easy to see from these figures that credit is big business in Britain, with most UK adults borrowing money as part of their everyday finances.

As credit plays such a big role in our everyday lives, with new mortgages, secured loans and credit cards being applied for daily, it is vital to lenders that they have a good idea of how we will repay their money.

This is where credit reports come into play. Credit reference agencies – the main ones being Experian, Equifax and Callcredit – keep a credit ?report? or ?record? for every adult in the UK.

Within each report a wealth of information is available, split up into two main areas: public information and credit account information.

Public information is obtained from the electoral roll and includes things such as your name, address, date of birth and marital status. Your employment history, income and any property you own may also be included.

With this information lenders will already be able to get a good idea of how able an applicant will be to repay any money borrowed. For instance, a middle aged business man living in the wealthy suburbs of London is considered considerably more likely to repay a loan than a struggling single teenage mother.

However, such information only gives lenders a partial idea as there are always exceptions to the rule. This is why the second part of the credit record is used.

Within this section of the report, information ? supplied by all lenders – is to be found, regarding any current credit history. This allows lenders to see how much you owe or have owed, and if you repay your debts on time.

For the same reason, information regarding any county court judgements (CCJs), references to debt collection agencies and bankruptcy orders, where applicable, are also found here.

All of this information is complied and used to generate a ?credit score?, unique to every adult. This process know as ?credit scoring? has become much more ?scientific? over the years, as more and more lenders are now using what is know as ?risk-based pricing?.

Instead of simply rejecting an applicant due to a low score, they are instead offered higher rates of interest and are unable to loan larger amounts. On the other end of the spectrum, applicants with a higher score are offered larger sums of money with more desirable interest rates and terms and conditions.

For this reason, it really does pay to make sure your personal credit score is a true reflection of your financial situation, for this reason, everyone is able to view an amend any errors found on their report.

This can be done by contacting the credit reference agencies directly. You can obtain details of your records by making an application in writing and paying ?2 by cheque or postal order, giving details of your last three years? addresses.

The three agencies can be contacted at the following addresses:

Callcredit, Consumer Services Team, PO Box 491, Leeds, LS3 1WZ
Equifax, Credit File Advice Centre, PO Box 3001, Glasgow, G81 2DT
Experian, Consumer Help Service, PO Box 8000, Nottingham, NG1 5GX

Cash Back Credit Card: Earn While You Spend!

Copyright 2006 Edward Vegliante

Cash back credit cards are an excellent way to earn money while you spend! Instead of making purchases with standard credit cards, you might want to consider applying for cash back credit cards because such cards reward you with cash back on every purchase you make! Further, in addition to cash back on all of your purchases, cash back credit cards offer you the opportunity to afford additional savings, in ways you might not have imagined possible.

Cash Back

The obvious benefit derived from having cash back credit cards is the money that consumers get back on every purchase. Frequently, credit card issuing companies will supply credit card users with approximately 5% cash back on certain purchases like those made at drug stores, supermarkets, and gas stations. Additionally, many credit card companies will give 1% cash back on all other purchases. Needless to say, if you use your credit card frequently, such benefits can add up quickly. Further, your accumulated savings can be used for just about anything, but you can really save if you follow the example provided below.


Due to the fact that you save 1 to 5 percent on many of your purchases made with cash back credit cards, you can find yourself saving quite a bit of money. Let’s take a look at the example provided below to analyze the possibilities. If you spend $1000 at supermarkets, $200 at drug stores and $300 dollars at gas stations in three months time, you will have spent $1500. Now consider this:

$1500 x 5% = $75.00

Thus, you save $75.00 for every $1500 you spend with your cash back credit card! Now project such savings over one year’s time. For instance, if you spend approximately $1500 every three months at establishments that make you eligible to receive 5% back on your purchases you will have spent $6000.00 for the year. Now, consider the savings:

$6000 x 5% = $300.00

Making Your Savings Work for You

So, what can your savings do for you? Plenty! With the $300.00 you save, you can store it away for a rainy day or you can reward yourself for being so credit savvy and for saving yourself some money! One important thing to keep in mind is that if you carry a balance, the interest being charged is going to cut into any benefit you derive form your cash back. Therefore, to take full advantage of a cash back credit card, it is always best if you are able to pay off your balance each month, or at least not let it run up to high.