You may be disappointed with the credit card charges later. So be aware of these fees before taking a credit card. Seeing that it is free, many people take advantage of credit cards. You may be disappointed with the card charges later. So be aware of these fees before taking a credit card.

Reasons for these charges?

Card over-limit fees: In case you exceed the prescribed credit card limit, banks or card companies charge over-limit fees for such transactions. You may not know this.

Surcharges sit at petrol pumps: Many card users are unaware that a surcharge is levied while buying petrol or diesel using credit cards. Many people do this without knowing it.

Entry and Annual Fees: Most credit cards charge a connection fee and an annual charge. Connection or fee has to be paid once. Where annual charges are charged every year.

Card Stolen Fee: In many cases companies charge a fee to issue a new card if the card is lost or stolen Otherwise the bank will not be able to issue you the card.

Non-payment charges: If you don’t pay your credit card bill in full, the bank charges a finance charge on the remaining balance. That is why the entire bill should be deposited to avoid these charges.

Cash in Advance Fee: This fee is charged by the credit card company or bank when you withdraw cash from an ATM using your credit card.

Foreign transaction fees: Card companies charge a forex markup fee when you use your credit card for transactions abroad. You should take credit card only after knowing these.

Perhaps it is your first time to consider replacing your existing credit card, and you find the sheer number of choices available quite daunting.

Maybe you regularly travel for work or play, and you would like to switch to a credit card that offers better rewards.

A change in your professional or personal circumstances (a promotion, the birth of a new child) might also be prompting you to look into other options that could benefit you more.

Comparing credit cards

Whatever your reason may be for switching to another credit card, it is essential to make an apples-to-apples comparison.

Here, you will need to put a few critical factors into consideration.

How you plan to pay your bill

Should you prefer to pay your bills in full, opt for a card from a bank that waives annual fees as well as provides longer grace periods.

On the other end of the spectrum, if you are someone who prefers to pay only the minimum amount, consider credit cards that have low interest rates.

If you are planning to use your new credit card as your primary mode of payment for frequent transactions, choose one that has an excellent rewards program as well as a high credit limit.

Finally, if you intend to use the credit card for emergencies only, select one that offers a combination of low fees and interest rate.

Types of interest rates

Broadly speaking, credit card interest rates can be categorized into two: fixed and variable.

With a fixed interest rate, credit card users pay essentially the same interest rate. However, such a rate may change depending on the terms laid down by the bank, like late payments or going over the prescribed card limit.

With a variable interest rate, the interest rate you may have to pay can change from month to month. The interest rate here is usually tied to other financial indicators.

Credit limits

The amount that banks may be willing to let you borrow will depend heavily on your credit history. This can range from hundreds to thousands. But whatever the credit limits are on the card you are going to get, it is a good idea to spend within those limits to retain a good credit score.

Charges

Check the fine print, especially those that relate to penalties and other charges. Some cards may levy a hefty fee for transactions like balance transfers or spending beyond your credit limit.

Make sure to compare these fees before settling for a final choice.

Rewards

Choose a card that offers rewards that make the most sense for you. For example, if you frequently travel, select a card that offers a program geared towards travelers, allowing you to earn more points faster.

Do not forget to check the conditions set by the bank regarding the rewards program, including expiry policies and ways to earn the most points.

An easier way to compare credit cards

With numerous choices available for people looking for a new credit card, making the switch to a new one may seem like a difficult task.

Fortunately, if you are planning on getting a new card, you no longer have to hop from one bank’s website to another or leaf through pages and pages of brochures to pinpoint the best card for your needs.

By leveraging the power of the Internet, you can compare different credit cards in just one place through a credit card comparison website. Such a site can help you better understand the benefits of each credit card in your shortlist as well as enable you to maximize your savings.

This kind of website takes into account numerous important factors, including your spending patterns and the features you are looking for into a card.

All you have to do is to identify the features that work best for you and input them into the website. From there, a selection of cards will be listed. You can whittle down this list further by highlighting the top cards that you are interested in and compare these among each other.

Once you have found a card that works best for you, you can even apply online.

Credit card comparison made easy

With several credit cards vying for your attention, deciding on which one to get is no easy task. In the UAE alone, residents have over 200 options available to them.

Fortunately, a credit card comparison website can streamline the whole process for you.

AUTHOR BIO

Deepak Kumar is a Co-Founder of SoulWallet, a neutral comparison portal for consumer financial services. With a team of “out of the box” thinkers and a deep understanding of the UAE consumer banking industry, the company helps customers make the best choices while shopping for financial products such as credit cards and loans.

One very effective way of reducing your overwhelming credit card debts is to transfer the existing credit card balance to a different company that offers a lower interest rate than the existing one. Credit card companies make their whole lot of money by charging the interests that you pay and it can usually go up to 25% or more. As an introductory offer, many credit card companies offer 0% interest rate for a limited period ranging from 3 months to 1 year. If you don’t let the interest to grow higher and go out of control, then you can pay off your credit card balance within a short period of time. If you cannot pay it off during the introductory period, then you can try the following tips.

• Stop over spending: it is very important to develop self-discipline within yourself. You can keep a check on your credit card debts when you become frugal and not spend unnecessarily. People who cannot stop themselves from using their cards can cut it totally or keep it in a safe place away from their reach. Use only that money that you need instead of borrowing more which can become a bigger problem. Try to use debit cards which can be a solution to many problems.

• Negotiate for a lower interest rate with your credit card company: if you are paying your credit cards at a very high interest rate, then you can call your credit card company and negotiate for a lower interest rate. If they don’t budge, then you can switch to another credit card company. It’s worth trying this shot.

• Paying more than the minimums: it is always suggested to pay more than the minimums every month. You will not only save a lot of money in interests but pay more towards the principal and reduce your debts. On the other hand, the credit card companies want you to pay only the minimums, because that’s how they make their money and do their business. Don’t let your hard earned money eaten away just in interests charged by the credit card companies.

• Creating a budget: It is very important to create a budget so that you know how much money you need to spend for basic living expenses. Once you have taken care of all the necessary expenses, then you can allocate the remaining funds towards paying your credit card debts every month. If you are following your budget every month, then it will be easier to know how soon you can lead a debt free life.

• Seeking professional help of a credit counseling company: If you are finding it hard to manage your credit card debts, then you can talk to a credit counseling company for help. There are different debt management programs ranging from 2 years to 5 years that can help you get rid of your debts. They will go through your financial situation, set a budget, and negotiate with your creditors for lower repayment arrangements. In most cases, they will talk with your creditors and get the interests and fees waived off, thereby reducing the total amount you owe. They can also stop all the collections calls from your creditors, reduce your monthly payments, combine everything into one single monthly payment and help you in avoiding bankruptcy. This will be your first step towards a debt free life.

 Helpful Articles:

http://www.consumer.ftc.gov/articles/0145-settling-credit-card-debt

Almost every credit card company offers reward programs to their customers. Some programs may be more rewarding than others. Therefore you should carefully read the fine prints and see how the reward program works. You should also have a fair idea of how to select a credit card that suits to your lifecycle. Credit card companies are there in the market to increase their profit margin, so they will keep a close eye on customers who don’t keep a close eye on every detail about the reward program. As an informed customer, you should be aware about some of the traps and don’t lose out any good deals.

Credit card companies will introduce new offers including rewards and bonuses that sound very enticing in the beginning. But at the end, it turns out to be very complicated and hard to follow. One of the complicated reward programs is the rotating rewards categories. In this program, the credit card company changes the types of purchases which qualify for the rewards every quarter, and the consumer has to sign up for them in each quarter. If he does not sign up, then does not earn any rewards on those purchases. Credit card companies assume that people will usually forget to sign up on time.

Another way the credit card companies try to catch new customers is by offering savings, but they make the redemption process very complicated. For example, a gas card is offered at a 25 cent discount on up to 20 gallons of gas at their proprietary stations, but the catch is that the customer has to spend $100 every month on the card. This way they are forcing the customers to buy their products in order to get discounts on their items. The rebate was automatically applied at the pump when it became eligible to use, but the remaining discount did not carry over to the next visit to the pump. So if someone needed only 10 gallons of gas, the discount on the remaining 10 gallons got wasted.

Things get more complicated when you do not know how many reward points are available or how many points have expired. And there were cases where points were not applied in the correct ratio on the specific category of goods or services offered. Therefore it is very important to read the fine print very carefully and get the full benefits of the reward program.

There are some program where the rewards or bonuses don’t start until a specific amount of money is spent on the card and the credit card companies allot a very high amount, making it tougher for the customers to get the benefits. For example, if you want to avail 15000 reward points or flight miles, your spending on the card in a year has to be above $40000. This type of offers can tempt the customers to do excessive spending, without realizing that they can later get into deeper debts, if they are not able to pay back the money to the credit card company on time.

Sometimes, a credit card company offers higher bonus incentive on some purchases, and the additional percentage is capped off after a certain dollar amount is spent on that card.

There is another clause by the credit card company regarding redeeming the points. There has to be a minimum number of points available in your account before they can be redeemed. Many people fall into this trap and they start overspending to get more points, and the credit card companies are counting on this.

Many people love the idea of using credit cards on a regular basis. They become so addicted towards it that it may sound scary for them to live without using it. Society will mold itself towards people using credit cards in order to survive. It is not at all necessary to be like this. Read this article to find out how you can manage your finance efficiently without using credit cards.

Many people have a poor credit history and they take loans from different lenders at very high interest rate. It also takes them years to rebuild their credit history. It will be a good move towards rebuilding your finance instead. You can buy things using cash instead of credit card. It will minimize the excessive use of credit cards.

You might be worried about your deposits. It is always better to pay for deposits rather than paying for interest on the credit card and various financial vehicles utilized when taking advantage of credit.

If you rent, the landlord will check your credit history, or perhaps you have bad credit, then it may not be that good to look at. If you have good credit, then you have plenty of options available on the internet. There are many people who are willing to rent without credit, but you have to do your research and check the ads online.

Many employers expect a good credit history from you before they offer you any job. If you do not have credit at all, but have good finance, they are willing to make exceptions. People having poor credit history must first work towards improving it without actually using it.

You will sure save more money if you don’t use your credit cards. When you are living on cash, keep aside a certain portion of your income that will take care of your three to six months living expenses, and just keep on building it. It is a fact that many people who use excessive credit are not able to save at all. It is important to take control of yourself and be financially sound.

Whenever you do any purchases, prefer using your debit card instead of a credit card. It is good to spend what you can actually afford and that also without using any credit. This will make your life more balanced in the long terms.

It is not difficult to live without credit cards. Follow these tips and do all the purchases that you need to do in your everyday life. Your goal should be to live a life that is stress free and credit free.

Almost all banks and financial institutions have a variety of credit cards for every individual. The main thing is to find out the best suitable credit card as per your individual requirements. One-size cards are not suitable for all. There are good available types of credit card to choose from offered by different companies. Some credit cards are available for selected use and there are other credit cards that are not only for selected use but can be used in many other ways.

credit cards

Standard credit cards issued for general use. They do not come with variety of offers but you can transfer your balance to this card. This is the most common form of credit card available in your pocket. It comes with a very low interest rate because it does not come with any other variety of features. You just need a little credit in your name and this card will be ready for you.

There are many other types of credit cards available in the market, but this type of card is best for people who have bad credit. These credit cards are normally secured with your bank account and has less credit in it, along with lower interest rates. If you had poor credit in the past and want to rebuild it, then this one will be the best for you. It will help in reestablishing your credit worthiness and get variety of other credit card offers in the future.

Along with many other credit cards available in the market, there is a speciality credit card for selected people. The term “speciality” itself shows that it has some unique features for the particular group of customers. Students can also get a student credit card that can be used by them. It usually comes with a lower interest rate and you don’t have to make the payments immediately.

There is another type of credit card which is used for business purpose and is very helpful for a businessman. They can get this type of credit card through their trade. These credit cards have high credit limits and additional perks.

There is another type of credit card known as the pre paid credit card. It works the same like a gift card. Here, you have to load money into your card before you can make any purchases, like topping it up when you wish to use it. They are accepted almost everywhere like other credit cards.

Choosing the right credit card can be at times very tough. It involves a lot of decision and comparison factors. Every credit card comes with its own terms and conditions. Before you make any decision, make sure that you read the terms and conditions put by the credit card companies. You should be able to use your credit card in the right manner and don’t over extend your required needs.

Do you know what a credit card debt lawsuit is? When a consumer defaults in making payments on his credit cards, the creditor will use all possible ways to recover the debt from the debtor. They will go to the extent of taking him to the court and get a debt judgment against him. Many people do not realize the importance of a lawsuit and hence they miss the chance to defend themselves.

Judgement

Why will a consumer default in making payments on his credit card debts? There can be a variety of reasons for it. It may be due to unemployment, health problems, sudden death in the family or may be due to other reasons. If the judge understands that the consumer is going through real financial hardship, they might rule in his favor and hence forbid the creditor from collecting the full amount from the consumer.

If you are on the risk of being sued, it is important that you consult a lawyer who deal with judgment cases. Basically, when you receive the court summons, you have 20 days to file your answer to the court clerk. The summons will have the court date and time and its important that you show up on the hearing date. If you do not show up, there are more chances that the creditor will try to get a default judgment against you. It is a good idea to explain your situation to the judge with all necessary proof, and have the case turned in your favor.

A debt judgment is the creditors legal rights to garnish your wages, or put a levy on your bank account or personal property, until the debt is paid off. There are four states in which a creditor cannot garnish your wages. They are Texas, North Carolina, South Carolina and Pennsylvania. All states have their own set of laws regarding garnishment. In California, whatever your income is, up to 25% of your disposable income can only be garnished.

Credit-cards

There are other states like New Hampshire in which wage garnishment is not the preferred method of judgment. They will either try to put a levy on your bank account or on your personal property. In most of the states, the creditor has the right to garnish between 10% to 25% of your disposable income as per the laws of the individual state.

If a consumer is receiving threats of judgment from several creditors, only one garnishment is allowed at a time on a first come, first served basis, who is able to contact the employer first.

There are certain exemptions to garnishment, like social security, pension payments, wages of the elderly and disabled cannot be garnished as per the laws.

• Helpful Resources:

http://www.legalaid.wa.gov.au/InformationAboutTheLaw/WorkMoney/Disputingsettling/Pages/Ifajudgmentismadeagainstyouenforcementprocess.aspx

http://www.federalreserve.gov/consumerinfo/wyntk_creditcardrules.htm