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One of the newest tactics used by credit card companies to entice more consumers to sign up for their products is offering credit cards that will help the person manage their personal finances.  In recent months, several new credit card products have been introduced to the market that promise to help users pay down their debt, manage their daily spending, or budget for large purchases.  These credit cards are being marketed to credit worthy borrowers in every income bracket as a simple way to take control of their finances.

Some financial experts believe that these new credit card products are meant to relieve the anxiety that many consumers are feeling about using their credit cards since the financial crisis of 2008.  Unfortunately, many of these new credit card products carry interest rates that are significantly higher than the credit cards offered in past years.  Many credit card issuers say that the higher interest rates are unavoidable because of the tight lending standards that the lenders are now operating under.

One of the most popular new credit cards offered is the Blueprint card from Chase.  The goal of the Blueprint card is to make expenses more manageable by allowing cardholders to choose which purchases they would like to pay off every month and dividing large purchases into manageable payment blocks to be paid off over time.  The account holders do not pay interest on the purchases that they pay off each month.

What many credit card holders do not know is that these same things can be accomplished with any credit card by the cardholder’s own actions.  Anyone can go through the details of their credit card statement and pay off everyday expense charges.  Although the person will not pay interest on the purchases that they pay off in full every month, they will be assessed interest charges on their other purchases and interest rate charged could be as much as 21.99%.  The biggest benefit of this credit card is that it provides a visual aid for cardholder’s to see how they are managing their finances.

Other new credit card offerings, including the Payment Plus card from TD Bank’s, the Journey card from Capital One, and the Forward card by Citibank, offer customers better credit card terms for paying their bill on time.  Some cards cut interest charges by a certain percentage when the cardholder pays more than a predetermined percentage of their overall account balance.  Other credit cards offer cash back rewards or interest rate reductions for paying the bill before the due date on consecutive occasions.

Credit card issuers claim that these offerings are incentives meant to reward good behavior by the credit card holder, but the interest rates charged for these credit cards significantly reduce any benefits the cardholders receive from the card.  The credit card companies state that the interest rates charged reflect the level of risk taken on the issuance of the credit cards.  If the person can get a better rate with a different credit card, it may save them a great amount of money over the years that they hold the account.  There are very few things that these credit cards can do that the people cannot do for themselves with smart financial management.

Being able to obtain a credit card is very important part of today’s financial environment and many people are seeking a reward credit card meet their financial needs and reward their loyalty to the company issuing the credit card.  There are many differences between reward credit cards that can cost or save a person a great deal of money and knowing which type of rewards card is the best will take time and research to determine.  To find the best reward credit card, there are several features that the person should review. 

The Terms Of The Reward Credit Card

The best type of card for one person may not be the best type of card for another person.  An ideal reward credit card for an individual will have the highest credit limit with the lowest interest rate for the longest amount of time and rewards for activities that they regularly perform.  It is very important that any person looking for credit cards reads all of the terms and conditions associated with the credit card make sure that they understand the terms for the credit card and how the interest rates will be calculated.

The terms that you will get for a reward credit card will depend on your personal financial situation and previous credit history.  The majority of reward credit card interest rates are based on the person’s credit score, which is used to determine a person’s credit worthiness and their record of repaying money that they have borrowed from creditors.  A person with a good credit history for the last few years will be much more attractive to credit card companies than a person that has many missed payments on their credit report.

The Credit Limit For The Reward Credit Card

The credit limit for a reward credit card can vary from person to person.  Some people may have their credit limit capped at $2,500 while other people may qualify for a credit limit of $25,000 or more based on their income and credit history.  A reward credit card will have a reasonable credit limit based on the person’s income level without charging the person a great deal of hidden fees to obtain the credit card or keep the credit account open. 

The Rewards For The Reward Credit Card

The rewards offered by the reward credit card are not the most important features for choosing a particular credit card, but choosing a card with rewards that are actually valuable to you will be essential.  Who wants to earn rewards that they will not use?  There are many different types of rewards that can be earned, including travel vouchers, event tickets, cash back, and merchandise.

Identity theft is becoming more and more of a problem every year as more individuals go through the heartache and hassle of having their identity stolen.  So how can an individual avoid credit card bills from an instance of identity theft?  There are several steps that a person can take to keep their identity safe and reduce the chances of fraudulent activities being conducted in their name.

Having your identity stolen is a very scary idea.  There is no telling what the individuals that have opened a credit account in your name may do to your credit history and your credit score, not to mention the harassing calls from creditors trying to collect on an account that you know nothing about.  Some individuals that were not vigilant about their credit card and personal information have found that it has taken them a year or more to clean up the mess that identity thieves had created in their names.

The best way to keep your identity from being stolen is to protect your information, making it much harder for the identity thieves to steal.  If you like to shop online, be very careful of what websites you submit your personal or credit card information to.  You should only provide your credit card number and personal information to websites that are well known to you and if the website that you would like to purchase something from is not well known to you, then an intermediary payment site should be used for payment instead of submitting your personal information to the website.

You should also remember to never provide personal information, account information, or a password to any site as a response to an inquiry by email.  Many identity thieves will create a fake email that looks like it was generated by a legitimate company in order to trick hundreds of individuals into divulging their passwords for the site.  Once the crook has your password, they can use it for identity theft and obtain all of your personal information, greatly reducing the chance that you will avoid credit card bills that are fraudulent in your name.

Enrolling in college can be a difficult time for most college students.  They no longer live with their parents and can no longer easily obtain money from their parents if they run out of cash.  The financial needs of these students are the reason why many lenders offer credit cards geared towards students.  These cards work in the same way as conventional credit cards, but the terms, rates, and payment plans may be different depending on the lender issuing the credit cards.

The Interest Rate

There are several features that should be reviewed prior to applying for any credit card.  The first is the interest rate applied to credit card, which can differ significantly between credit card issuers.  The interest rate for these credit cards can range from 7% to as high as 30%.  Many student credit cards start with a 0% interest rate that increases to 20% or more after the first 12 months that the account is open. 

It is important to read the credit terms and conditions carefully to be certain that the credit card is charging an interest rate that is fair and that the original terms will not change dramatically after a specific period of time.  The average interest rate for student credit cards is around 15%, so avoid applying for a credit card with an interest rate that is higher.

The Fees

Another important piece of information to review is the fees charged for using the credit card.  The best credit cards geared towards college students will not have an annual fee that must be paid for the privilege of using the credit card.  The terms and conditions of the credit card will disclose the fees that are associated with the credit card and their amounts and there are many different fees that can be required by deceitful credit card lenders. 

The annual fee is the most prevalent fee for credit card accounts and it can range from $50 to $150 per year.  This fee is automatically charged to the account on the anniversary of the account’s opening or at the beginning of the next month, so there is no way for the student to avoid paying the fee.   If the annual fee charge shoots the credit card over the limit, the student will be responsible for paying those penalty fees as well as the annual fee.  By carefully reviewing the terms and conditions for using the student credit cards, any student can ensure that they are not being taken advantage of by unscrupulous credit card lenders and paying more than they should for a student credit card.

Millions of individuals across the nation have obtained a credit card for their personal use and have used that credit card on a regular basis since receiving the credit card from the issuer.  This is great for the credit card company as it increases the amount of interest they earn from their customers accounts and provides many opportunities for additional income in the form of fees and penalty charges on the accounts.  There are a number of ways to ensure that you do not become a victim of these additional fees and being aware of the common credit card usage mistakes can save you hundreds of dollars in penalty charges annually.

Pay Credit Card Bills As They Arrive

Penalty charges for late payments on credit card bills earn credit card issuers billions of dollars in additional income annually, often costing the account holder as much as $35 per occurrence. In addition, every late payment to a credit card account is reported to at least one of the three major credit reporting bureaus for inclusion on the person’s credit report and will decrease their credit score.  To avoid these penalties, pay credit card bills as soon as they arrive in the mail to ensure that the payment is received on time.

Be Aware Of Interest Rate Increase Triggers

The interest rate that is charged for a credit card account can change based on a number of variables.  Different companies may have different actions specified as interest rate increase triggers for the accounts that they hold and each company discloses these interest rate increase triggers in the terms and conditions for each account.  Be aware of what actions could cause the interest rate for the credit card to increase and avoid those actions as much as possible so that you are not paying more to use the credit card.

Pay Off The Balance Each Month

Using credit wisely means never putting more on the credit card than you can afford to pay off when the bill arrives.  This ensures that credit will always be available in the event of an emergency and that fees will not be charged for carrying a balance on the credit card from month to month.  In order to avoid paying finance fees and interest charges each month, the entire balance of the account should be paid off when the bill arrives.

The hardest debt to get rid of is credit card debt, typically because of the constant increase of the balance due to interest charges, account fees, and transaction costs.  In order to eliminate credit card debt, a financial plan must be made for paying down the balances of the credit cards in the fastest way possible with the person’s current financial situation.  These methods effectively eliminate debt without harming the person’s basic financial security.

Stop Using Your Credit Cards

It is very difficult to pay off credit card debt if you are still using the credit cards to make purchases.  If you find yourself facing high credit card balances, the best thing for you to do is put away the credit cards and pay cash for all of your purchases until your credit card debt is under control.  This will allow you to pay down the existing debt without adding additional debt to the pile.  You will be more motivated to pay off your credit card debts if visible proof of the debt reduction can be seen within a few months of starting your pay off plan.

Focus On High Interest Debt

High interest debt is the most difficult debt to pay off because the interest charges can increase the balance of the account as quickly as you are paying the balance down.  It is important to eliminate high interest debt as quickly as possible to reduce the amount of interest you are paying each month.  Start by paying down the credit card with the highest interest rate first while making at least the minimum payment for all other credit card accounts.  Once the highest interest charges have been eliminated, you will be amazed at how much more manageable making your monthly payments for the other accounts has become.

No Missed Or Late Payments Allowed

Missing a payment date on a credit card account can trigger a significant increase in the interest rate charged for the credit card.  Credit cards with low interest rates are easier to pay off because the interest payment is not adding a large amount to the balance of the credit card each month, so you will want to keep the interest rates for your credit cards as low as possible for as long as possible.  Be sure to make all credit card payments as soon as the bill arrives to avoid missing any payment dates.

Credit cards have become much more prevalent in the last decade, with many more individuals using credit cards for numerous purchases every month.  As the credit card debt of the nation continues to rise at an alarming rate, credit card companies are focusing more on certain trends that make them lots of money while providing the customers with little in the way of service.  These common credit card trends are boosting the credit card issuers’ bottom lines by a significant amount that is flowing straight from our wallets to their bank accounts.

Interest Rate Traps

One of the most lucrative ways for a credit card issuer to make tons of money on an account is for the interest rate associated with that account to rise.  Many credit card issuers draw in customers by promising below market interest rates for their accounts, but buried in the fine print of the credit card agreement is a provision that allows the credit card issuer to raise the interest rate for the account for any reason that the company deems reasonable.  Over the past few years, many credit card holders have been surprised to find that the interest rate associated with their credit card has risen dramatically for no reason that they could readily determine.

Increased Service Fees

In past years, fee free credit accounts were the norm as different credit card issuers competed for business.  Now, fees abound for most accounts, including annual fees, fees for balance transfers, and fees for the management of the account.  Fees for mistakes, such as making a payment late or going over the credit limit by a few dollars, have increased dramatically and can be as much as $35 per occurrence.  Individuals that get hit with these fees are contributing to the credit card company’s bottom line while getting nothing in return for their money.

Deals That Cost You Money

Many credit card issuers are offering rewards and cash back credits for their credit card accounts as a way to increase their customer base and the tactic is working exceedingly well.  After all, who would refuse something free for doing normal, everyday activities like going to the grocery store?  The truth is that these rewards are costing the credit card holders in other ways, such as increased interest rates or higher annual fees to remain in the program. 

These rewards programs can cost you in other ways as well.  In many cases, a very large amount of money must be credited to the credit card to earn any type of reward at all.  Studies found that one rewards program required the use of nearly $6,000 in credit to be used to earn the reward of a $15 book.  In nearly every case, the reward earned is not worth the amount of interest fees and transaction fees it will cost you to earn enough points for the reward.

Having a credit card to use can be a lifesaver in certain situations, but using the credit card incorrectly can cause a great deal of trouble that can be nearly impossible to get out of.  There are certain things that you should always avoid doing when using a credit card because these actions virtually guarantee a financial disaster in the future.  Here are the actions you should avoid at all costs when using your credit card.

Avoid Maxing Out The Credit Card

Maxing out the credit card and not being able to pay off the balance can cause a number of problems.  If the credit card is maxed out, then you have no credit available to use in the event of an emergency, a significant portion of your income will go towards paying down the balance and paying the interest on the credit card, and your credit score will decrease because you are using more than 30% of your available credit. 

Avoid Using The Credit Card For Unnecessary Purchases

It can be tempting to purchase expensive items just because you have the credit available to make the purchase, but this thinking is often a slippery slope to overspending and financial devastation.  It is important to remember that the money available on your credit card is not your money, but is money that you are borrowing from the bank that will cost you much more than the original price of the item in the long run. 

Every time you make a purchase on a credit card, you must think to yourself “Is this purchase so important that I need to borrow money to have it?”  If the answer is no, then leave the item on the shelf until you can pay for it with cash.

Avoid Spending More Than You Can Pay Off Each Month

Carrying a balance on a credit card from month to month is one of the easiest ways to fall into unmanageable debt.  If you carry a balance on your credit card, in addition to paying off the balance, you will have to pay interest charges and finance charges as well.  Since the interest rate for most credit cards is a double digit number, these charges can add up fast and quickly overwhelm individuals that do not use their credit smartly.  The best thing that you can do for your financial future is only charge what you will be able to pay in full when the credit card payment is due.

Many people obtain credit without knowing the right ways to use credit effectively.  Using credit unwisely can create a multitude of problems that could take months or years to correct.  By knowing some credit basics, a person can avoid the most common credit issues and use their credit to enhance their financial security.

Credit Cards Can Be Dangerous

One of the highest interest credit products that you can apply for is a credit card, which can cause a great amount of trouble if balances are not paid off in a timely manner.  Many of the people that find themselves in bankruptcy court are the ones that ran up a lot of credit card debt and then found that they couldn’t pay the balance plus the interest that they owed the lender.  It is best to use credit cards sparingly, or only for emergencies, so that you are not wasting your money paying interest to the banks.

Learn To Resist Temptation

Knowing that you have credit available to purchase whatever you desire can make it hard to resist purchasing something that you really want but do not really need.  People that use credit have to be responsible enough to know when to say no to a purchase and the best credit users pay off their credit card balances each month to avoid paying double digit interest rates to the credit issuer.  If the only way you can pay for an item that is not necessary to maintaining your quality of life is by putting it on a credit card, it is probably best to leave the item on the shelf until you have saved up enough to purchase the item with cash.

Guard Your Personal Information

There are many crooks out there that would love to use your personal information to obtain credit for themselves that you will be responsible for paying back.  It is important to keep all of your personal information secure so that this does not happen.  Personal information that can be used to obtain credit in your name includes your social security number, your bank account information, and your credit card numbers.  Identity thieves and other crooks are well versed in what to say to separate you from this information so it is important to never give this information out over the telephone or online unless you know exactly who you are giving the information to and what the information will be used for.

The amount of money that banks are earning from the late fees charged to credit card accounts is increasing every years and is resulting in billions of dollars of profit for the banks annually.  Late fees on credit card accounts can end up costing the person much more than the initial fee levied against the account for making the payment late, so it is best to avoid late payments on credit card accounts at all costs.  Avoiding credit card late fees is not difficult if you follow a few simple tips regarding your credit card account.

Pay The Bill Immediately

The easiest way to ensure that you will never have a late payment on your credit card account is to make sure that the credit card bill is paid as soon as it is received.  This way, you do not have to worry about keeping track of the due date or being able to find the bill at a later date.  The trick is to keep enough money in your bank account to be able to pay your credit card bill no matter when it arrives.

Mark The Due Date

If you are unable to pay the credit card bill as soon as it arrives at your home and must wait until closer to the due date to make your payment, you will want to make sure to mark the due date of your credit card bill in a prominent place to ensure that the due date is not forgotten.  Most of the cases that trigger late payment fees are because the person forgot to send in the payment by the due date, not because the person did not have the money to pay the bill.  If there is a calendar that is used for marking important dates, be sure to mark the due date of the credit card payment on the calendar so it will not be forgotten.

Use Electronic Reminders

Many of the electronic tools that are used every day now have the capability to provide alerts for important events that are programmed into their system.  Learning to program these electronic reminders will give you an alert system that you will be sure to see on a regular basis, reducing the risk that you will forget to send in the payment for the credit card bill by the due date.  Most cell phones have this capability, along with PDA’s and many computer scheduling programs.