Credit ratings and 0% credit cards

There is a myth about zero per cent credit cards that they hurt the credit rating of the applicants.  This is based on the way in which credit ratings are scored. Read the rest of this entry »

Are 0 credit cards worth it?

Credit cards can be useful to own; however, they can be a bit of a hassle if there’s no balance transferred and most transactions are made on a debit card. After all, in these situations, what’s the point?

No annual fee credit cards are possibly the solution in such circumstances, as the greatest expense for cardholders quite often tends to be the annual fees.

Contrary to that, when an individual carries a balance on a card, the best idea is usually one with a very low interest rate, or at least the lowest interest rate on offer. These credit cards tend to provide the lowest costs for customers.

Those individuals who do not carry a balance on the card but tend to spend heavily with it each month, can probably do better with either a rewards cards or, a cash back card. Both cards are right for people who spend largely using a credit card, as a portion of the money is returned to them in the form of rewards or actual cash.

However, for people who do not spend a lot with a credit card, a rewards credit card can be more expensive than necessary. That’s because the cardholder will be charged an annual fee. For instance, if the card holder has a 1% cash back card with a $100 annual credit card fee, he or she will be required to spend $10,000 on the card before receiving the annual fee in return. Most people can do this easily, but for those who don’t like using credit cards, this may be quite difficult.

For such individuals, a no annual fee card can offer the best of both worlds. It gives them the ability to use a credit card for transactions over the Internet and for larger purchases, which can be made with convenience. A no annual fee credit card gives everyday people the expected benefits without the hassle of a hefty fee being applied.

Interest free credit cards

Zero interest credit cards are ideal for cardholders in need of short-term financing who can repay the balance in full within nine months. Zero interest rates usually do not exceed the promotional period, which is the first six to nine months after the credit card application has been approved. Read the rest of this entry »

Benefits of 0 credit card!

0% credit cards are the new wave of credit cards hitting the credit card world in today’s society. Although many people have this preconceived perception of 0% credit cards having many catches, they really are one of the best cards on the market! Read the rest of this entry »

APR, Interest Rates and Benefits- Your credit card, your way

When the big banks approach you in hope that you will join their business, so many factors are essential to be measured. However many individuals, at the thought of a credit card, feel tormented and daunted with so much to consider. Although there is a lot associated to owning a credit card, the choice can be made a lot easier when taking into account three simple elements: benefits, interest rates and APR%. These factors can help you choose the lowest credit card with the maximum benefits for you!

Benefits and rewards are often taken for granted with most individuals, as they tend to forget that lenders should provide incentives to customers for using their services. Different banks offer different types of reward benefits. Some such as Westpac offer points which customers can redeem for flights and other rewards such as appliances etc. However if you’re an individual who does not travel as often, other rewards are available whereby you can receive cash back for purchases made such as food or clothing. However in terms of benefits, you must evaluate your expenses and determine where they are most often directed to establish which type of rewards and benefits best suit you.

Interests rates are at the focal point in owning a credit card. Many individuals go into the real world blindly, not fully understanding the complications of a credit card. Most of these complications arise from the interests rates applied to the card. An interest rate, simply put, is the amount of money you will be paying back to the bank in turn for their service when using a credit card. Basically when a card is swiped in an eftpos machine, the funds used to purchase an item come from the banks supply of endless money. At some point in a month, you receive your credit card statement with all your purchases documented and a due date supplied for when you are required to pay back the bank for their used money. When paying back this money, a predetermined amount (known as the interest rate), is applied for which the lender generates a profits from the borrower.

Understanding interest rates is essential as the lower the interest rate, the more you will benefit as a borrower as you would want to pay back the lowest possible amount of money to a bank. Generally most banks offer a variety of credit and debit card options to help you optimize your money such as Westpac with their wide range including Altitude, Earth, Gold and Platinum cards.

APR% is the annual percentage rate that describes the overall percentage rate for the year on a credit card. There are two types to be considered including the ‘nominal APR’, which is the simple-interest rate for a year, and the ‘effective APR’ which is the fee and compound interest rate determined over the year. Both these rates are essential to be considered, as you as a customer, would want to pay the minimal amount in return for a banks services. The APR% is available to make it easier for borrowers to compare the rates offered by lenders and for loan options. Although the APR% may vary throughout the year, overall the intended assistance is there as it helps customers determine which lender provides optimal service for minimal payment.

Ultimately deciding which bank to go with when using a credit card is always going to be a daunting process which requires meticulous research however when you consider these three elements, your choice can be made a lot simpler.