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How to Find the Best Credit Cards

Jan 10

Posted by admin in Credit

Finding the best credit cards in today’s world can be a bit challenging. Although you may receive hundreds of credit card applications in your mailbox each year, not all of them are worth your time and energy. To find the best credit cards, you should use a general checklist when examining each application. By using this checklist you can guarantee that you know exactly what type of credit card you are applying for and what to expect after you are approved.

Fees

Many people sign up for credit cards without realizing they may be overlooking hidden charges. Credit card companies have the right to charge new cardholders a one-time enrollment fee. This fee can cost as much as $40 in some cases. Most of the time this fee is only explained in the tiny print on the back of the application. With most applicants neglecting to read all of the print, they never know about the fee until the first bill arrives. Another fee that many credit card companies charge is a monthly or yearly cardholder fee. This fee is one that is automatically charged to your credit card each month or year. It is in addition to any finance charges and other fees. It is simply a fee that you pay to have the credit card. Even if you do not make any charges for the entire year, you will still be charged this fee. The best credit cards available are those that have no fees. These ?no fee? credit cards can be found if you look and read the applications carefully. Many credit card companies are even beginning to advertise themselves as being ?no fee? companies. There is no reason you should pay unnecessary fees when you can get other the best credit cards without fees. So, be sure you are reading the fine print and asking questions before you get a new credit card.

Interest Rates

Anyone who has ever had a credit card knows about interest rates. The best credit cards are those that have a low interest rate. Many credit cards will charge up to 21% interest on all purchases. This makes it very difficult for many cardholders to ever pay off their credit cards. The best credit cards have interest rates lower than 15%. Some credit cards will even allow you a lower interest or no interest on purchases paid off in less than 30 days. It can certainly be to your advantage to use these options some of the best credit cards offer. If you want to try to get your interest rate lowered, simply call your credit card company and request a rate change. If you have been a good cardholder then companies with the best credit cards will take your request seriously.

Remember, the best credit cards are not necessary those with the highest spending limit. There are other behind the scenes factors you should certainly consider. Hidden fees and high interest rates can haunt you and your credit for years. Be sure to check these things out before even applying for a new credit card. You will be glad you researched the best credit cards and your pocketbook will be glad as well.

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Mutual Fund Fees: Are You Paying Too Much?

Sep 17

Posted by admin in Investing, Stocks Mutual Funds

If you think mutual fund performance is the whole story, watch out! You could make a very expensive mistake by not considering the costs of a mutual fund! The lower a fund?s costs, the higher percentage of your fund?s real return you receive. You can control what you pay to invest by selecting low cost mutual funds.

Mutual fund costs come in two flavors:

Shareholder Fees
You pay these fees directly out of your own pocket to purchase, redeem, or exchange shares. The following shareholder fees will appear in the ?Fee and Expenses? section of a mutual fund?s prospectus:

  • Sales Charge on Purchases — Also called a ?Load?, this fee is expressed as a percentage of the dollars invested

  • Purchase Fee — Usually replaces the sales charge / load. This fee appears as a flat dollar charge for making a purchase regardless of the investment amount

  • Sales Charge on Reinvested Dividends -? Similar to the ?Load? on purchases, this fee is expressed as a percentage of dollars reinvested

  • Redemption Fee -? Charged at the time of selling shares of the fund. Expressed as a percentage of the dollars invested or a flat dollar amount

  • Account Maintenance Fee -? A flat dollar amount charged if your account value falls under a specified minimum balance

    • Annual Operating Expenses
    These expenses get deducted from the Fund?s assets before the management firm calculates return numbers.

    • Management Fee -? This fee gets paid to the team that makes all the investment decisions. Out of this fee, the fund management pays for trading costs so you won?t see commissions detailed in the expense section of the prospectus.

  • 12b-1 Distribution Fee -? This fee covers the costs of advertising and selling the fund. These fees are ?ongoing?, meaning they never go away for as long as you own the fund. They can have a significant negative impact on the cost of a fund.

  • Other Expenses -? This includes the cost of daily administration of the fund such as issuing annual reports, maintaining office space, etc.

    • How much you should expect to pay depends upon the mutual fund category. Each category has it?s own average annual expense ratio. For instance , it costs more to run an international fund than a domestic. Bond funds cost less to run than equity funds. To find out the category?s average expense ratio, go to Morningstar and view the report for the fund you?re considering purchasing (simply input the fund?s symbol in the ?Quote? box and hit \”enter\”) once the report appears, go to the ?Fees and Expenses?. The category average expense ratio appears in the ?Actual Fees? section on the right.

    All things being equal (i.e., risk, performance, etc.), you want to select mutual funds that have low expense ratios relative to other funds in the same category. You can compare the cost of various funds for free by using Vanguard?s Cost Comparison tool or the Morningstar Fund Compare. If you have a membership at Morningstar, check out the Cost Analyzer found in the Morningstar Tools section (right
    side of the page).

    Financially Savvy provides the information in this article for educational purposes only and it does not constitute investment advice either given or implied. Before making any investments or pursuing any money management technique, always consult your CPA for tax implications and your financial advisor to understand how such changes will impact your long-term plan.

    About the Author:

    Catie Fitzgerald is a 10 years veteran of the money management profession and the founder of http://www.financiallysavvy.com. Financially Savvy provides investors with the education and resources necessary to gain confidence in making their own financial decisions. We offer a variety of educational venues including classroom sessions, one-on-one coaching, and online resources.

    Writen By : Catie Fitzgerald

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    A Step by Step Guide To Consolidate Your Debt Yourself

    Feb 3

    Posted by admin in Debt Consolidation

    If you are in debt problems, you are not alone. Statistic has shown that in our country on an average, people have eight credit cards and an average debt of $9340. High interest rate of 18-25% (mainly credit cards) is one of the reasons due to which debt has grown at a pace of 5% every year…

    Debt consolidation letter, creditor debt settlement policies, debt calculator, debt consolidation
    If you are in debt problems, you are not alone. Statistic has shown that in our country on an average, people have eight credit cards and an average debt of $9340. High interest rate of 18-25% (mainly credit cards) is one of the reasons due to which debt has grown at a pace of 5% every year.

    With an increase in debt problems across the whole nation, there is also a fast growth of debt consolidation companies and services surfacing. These companies usually offer easy solutions to help combat your debt problems but not without charges or fees.

    If you are diligent enough, and know your financial health, you can consider consolidating your debt yourself and save your consolidation fees to repaying your debt.

    To consolidate your debt yourself
    You will need to negotiate with your creditors to lower your interest rate, and late payment fees which are usually the biggest barrier to clearing your debts. With that done, you will need to draft a budget plan and follow it diligently.

    With that said, there are certainly more that that to consolidate your debts yourself. You can refer to this page to understand on how you can consolidate your debts: debtconsolidationcare. There are three resources that you might find very useful here:

    Creditors Database
    Reveal a list of creditors and collection agencies, with their contact details and most importantly their standard creditor’s debt settlement policies. Knowing your creditors polices will help improve your chances of successful negotiation.

    Sample Debt Consolidation Letters
    Provide a list of letters with standard formats written to creditors for different occasions and purposes. There is also a mailing guideline to help you contact your creditors. For those who find it hard to pen a proper letter, this is really useful.

    Debt Calculator
    An advance and interactive debt calculator to solve and sum up difficult debt related calculations with a few clicks. Use this tool to calculate your monthly payment to help draft your budget plans.

    When consolidating your debts, self discipline is very important. Make doubly sure that you are committed to your budget plan once its draft and you will soon live a debt-free life again.

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    Switching Credit Cards For A Better Deal

    Jan 28

    Posted by admin in Credit

    You may think that a credit card is for life ? but with the level of hot competition among credit card providers these days it has never been easier for people switching credit cards to get a better deal than the one they currently have! So, if your credit card provider is not offering you the best current market conditions, the time may have come for you to consider a switch.

    Essentially there are two ways in which you can move your current credit card balance to a new card provider:

    - you get an offer (usually in the post) to move your current balance to a new provider offering better terms and conditions than what you currently have;

    - you make an application to a new provider and in your application you inform the new provider that you intend to move a balance over from your previous provider.

    Either way, once your new card has been approved, you simply switch over the balance of the old card to the new card and then cancel the old card. In fact it could not be made easier for you to move your balance as the new card application form will likely have a space for you to fill in your current details and your new card provider will then arrange for the balance to be transferred once your new card has been approved!

    Keep in mind that card providers today like the idea of customers moving over existing balances that are earning them interest income and competition is fierce to get people to move over to their card, so make sure when your are considering switching your credit card provider that you get:

    - a better APR deal than you currently have;
    - a better rewards system than you currently have;
    - if possible, no membership or annual fees.

    Also, if you don?t want to, you don?t actually have to close an account just because you have moved the balance to a new card. Consequently, if you have two credit cards and one of these credit card provider is offering a lower APR than the other, but the other is offering a better rewards system, you can keep both cards active and every now and then you can arrange to have the balance of your more expensive APR-charging card switched to your less expensive APR card. That way you can enjoy the best of both worlds!

    Joe Kenny writes for CardGuide, offering the latest information on credit cards, visit them today for more best buy credit cards.

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    Credit Card Late Fees – How To Avoid Them

    Jun 20

    Posted by admin in Credit, Finance

    Credit cards have become a common means of paying bills. It is very convenient because you need not make any cash payments from your pocket. Though credit cards are easy to use, they come with a fee that is charged by the credit card company. It is advisable to pay credit card fees on time because being late will cost you a lot of money.

    Many credit card companies charge a penalty for late fees, so it is advisable to pay up in time, to avoid the penalty. The average late fee for credit card used to be 12 dollars in 1994; by 2004, it rose to 32.65 dollars. It has now gone up to a whopping 39-40 dollars. Hence, it is prudent not to delay your payment.

    You can stay away from late fees by various methods.

    1. The best way to avoid late fees is to be fully aware of all the conditions and restrictions related to your credit card company. You can get the information of the guidelines on the back of the credit card bill that your company sends you. Try to make use of the specified instructions of payment in order to ensure that your money reaches them on time, without any problem.

    2. Having a good record can always help. As a responsible credit card user, you must try to maintain a good record of your payments because many companies that issue credit cards make considerations on the late fees if you have a good payment record. They do this as a special courtesy for their responsible customers.

    3. If you forget to pay your credit card fees, and the due date is already upon you, you can avoid the late fees by paying via the telephone, instead of using the mail. To enable this, there is a toll free number on the back of every credit card. In order to make payment you need a check number and a bank routing number. You can find these numbers at the bottom of every check. Once you make the payment you should tear off that check, as you cannot use it again. Some credit card companies keep this facility free of cost for their customers while others charge about 5 to 20 dollars. Make it a point to ask your credit card company about this facility.

    4. In case your company does not offer you the facility to pay your bills by phone, then you can always use express mail for payments. Although using the express method may cost you extra money, it will be less than the late fee that your issuer may impose on you. Besides, it will help you send your money to the company as soon as possible.

    5. Try paying online. Many companies accept payment through the Internet. This method can prove to be very useful if you are traveling.

    6. If you do not have the required cash to pay your bills and the due date is approaching, then you can talk to your credit card company and set your own due date for payment. Set the due date at a time when your salary arrives. Hence, enabling you to pay your bills without late fees.

    Therefore, in order to keep your credit card use hassle-free, remember to make your payments on time and in the right manner specified by your credit card issuer. Try and stay out of the late-payment cycle to avoid the extra cost in the form of late fees.

    Joe Kenny writes for CardGuide.co.uk, offering UK credit card comparison, visit them today for more best buy credit cards.
    Visit today: www.cardguide.co.uk

    Writen By : Joseph Kenny

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    Best Credit Card Balance Transfer Rate: It Pays To Shop Around

    Mar 24

    Posted by admin in Credit

    Smart shopping for 0% APR credit cards can save consumers hundreds of dollars in interest charges. Many consumers do not think to shop around for credit cards. However, with 60 percent of grocery store purchases being made with credit cards, the decision as to which card the consumer uses can have an impact on how much is paid in interest. One way you can save money in interest charges is to shop around for a 0% APR credit card to transfer existing balances to. The concept of shopping for the best interest rates is not new for purchases such as homes and cars, but so few consumers stop to think about shopping around for the best credit card deal.

    0% APR credit cards save consumers money

    It is possible for you to save hundreds of dollars a year by transferring balances to a 0% APR credit card. Here is how it works: A consumer applies for a new credit card with a special introductory interest rate of 0% APR for balance transfers. After gaining approval, the consumer transfers the balance of his or her credit cards to the new card. Some companies may waive the balance transfer fee, but a standard fee is usually a small percentage of the transferred balance. Whether the old card has a low 8.9% APR, or whether it has a higher 15.9% APR, the potential savings are well worth the transfer. For the entire introductory period (usually 6 to 12 months) it is possible for consumers to avoid paying interest on their credit card debt.

    Sorting through 0% APR credit card deals

    Some web sites provide you with an objective way to look at credit card offers. It is even possible to use a calculator to figure out how much you can save by transferring balances to a 0% APR credit card. Consumers receive the information they need to help them decide on the credit card balance transfer offer that works best for them. Objective side-by-side comparisons allow a more complete picture of available credit cards. When you find a card you like, it is also possible to apply for that card instantly from the web site. Helpful links to the credit card companies allow you to receive instant approval on their credit cards.

    A word of caution

    A 0% APR credit card balance transfer is a financial tool that can greatly benefit consumers. However, as with all financial tools, it is important to use it wisely. Consumers should be aware that failure to pay at least the minimum payment on time can result in an immediate end to the introductory period. Many credit cards, however, provide an automatic debit system or an online bill pay option. This can help consumers set up automatic payments that ensure that there are no late payments.

    Shopping around for the best bargain is a way of life for many. Applying that rule to credit card applications can mean that you get to keep more of your hard earned cash.

    Copyright Ed Vegliante. Free online reprints of this article are allowed provided the resource box remains intact with a live link back to http://www.credit-card-surplus.com .

    Please click here to find a Balance Transfer Savings Calculator.

    Ed Vegliante runs the website http://www.Credit-Card-Surplus.com , a well organized credit card directory enabling the consumer to compare and apply for a variety of credit card offers. View more Credit Card Articles.

    Writen By : Ed Vegliante

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    The Basics Of Mutual Fund Classes

    Jan 7

    Posted by admin in Stocks Mutual Funds

    In order to get the most out of your returns, without paying a high fee, you need to be aware of the different classes of mutual fund stocks and their advantages and disadvantages. Mutual fund companies often charge a higher fee when you opt to invest in ?high risk high return? stocks. However, paying higher fees does not necessarily ensure high returns because stock prices fluctuate on a daily basis. This makes it difficult even for professional fund managers to predict the future course of a certain stock. Mutual fund classes show the type of stocks covered under each mutual fund and the fees charged. The most common mutual fund classes are A, B, and C.

    Class ?A? Stocks

    These types of stocks attract lower 12b-1 fees and are considered the best if you are planning to keep investment for two or more years. Investing in such stocks makes you eligible to receive discounts, every time your investment arrives at a certain amount. The amount is selected at the time of buying the mutual fund and is referred to as the ?breakpoint?. Discounts are also offered when you express the intent of reaching the breakpoint within a specified period. However, in case you are unable to reach the breakpoint prior to the deadline, as mentioned in the ?letter of intent?, you are required to pay the regular front-end fees.

    Class B Stocks

    These types of stocks are characterized by their contingent deferred sales charge and are appropriate for investors who have limited resources and are looking for long term investment. Small investors prefer these types of stocks because they are not required to pay front-end fees and the deferred sales charge keeps reducing. The other benefit is that these stocks are automatically converted into Class ?A? stocks, which have a lower yearly management expense ratio or MER. The only problem with Class ?B? stocks is that you are required to pay the deferred sales fees in case you withdraw the funds before the specified period. Another disadvantage is that you do not avail of discounts, since there are no provisions for a breakpoint. This means that you are not able to reduce investment costs even if you increase your investment.

    Class C Stocks

    These types of stocks work best for those planning to redeem the stocks within a short span of time. They are beneficial because you are not required to pay the front-end fees. The back-end load is less too, one percent in most cases. Even this one percent back-end load is eliminated if you keep the investment for more than a year. Some of the drawbacks of Class ?C? stocks include compulsory back-end load, higher MER, zero discounts and lack of provision for automatic conversions.

    In order to benefit from your investments, you need to consider a number of factors, such as the time for which you plan to invest, the frequency of your investments and whether you are liable to withdraw the funds in the near future. The analysis of the benefits and drawbacks of each class of stocks will help you to select the most appropriate investment option, based on your specific needs and preferences.

    Joe Kenny writes for the UK Loan Store and offer more information on UK debt consolidation loans and other loan topics available on site.
    Visit Today: http://www.ukpersonalloanstore.co.uk

    Writen By : Joseph Kenny

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