Personal Finance guide

Most people have at least one credit card, so this is a topic that should be relevant to almost everyone. Credit cards do serve a purpose, and when managed well are a good tool. However, when they are not managed well, they can cost you a lot of money. Listed below are 14 money saving tips to help you reduce the cost of your credit card and get the most out of its features. Enjoy.

Tip 1: Compare credit card reward programs: These programs vary and generally include points, cash backs or air miles. While these programs are important and can save money over time, still remember that the most important aspect of your card is the interest rate and interest free periods.

Continue reading ‘Credit Card Help – These 14 Tips Help Reduce Your Credit Card Costs’ »

In order to successfully compare credit card interest rates, it helps the consumers to understand why banks raise credit rates and fees, and what they have to do with each other. One big example last year was when banks gained a big incentive when they sold their debts by raising card fees and increasing penalties, with securitization considered the major reason. If cardholders defaulted on their loans it mattered a little to the banks as they package them up and sell them off anyway. However, if the higher rates and fees bring the banks in more money before then – well, the banks get to profit first. From January of 2003 to December of 2007, there was a huge raise in card interest rates and fees up from 17% – in addition to those who charged beyond their cards’ limits up 23%.

It is known that when banks sells off the cards and doubles the interest cardholder’s rate without their knowledge, the bank keeps the majority of the profits – but very little of the account defaults. A person who can accurately compare its interest rates sees that most major cards make sure the low-income population usually approved but with higher interests tacked onto it by expanding their lending indiscriminately. Continue reading ‘Down Side to Comparing Credit Card Interest Rates’ »