Low Interest Credit Cards

Credit card offers often come with enticing offers to lure in new credit card customers, especially around the holiday season.  Much like gifts, credit card offers come in all shapes and sizes.  Nicely decorated and brightly colored credit card offers are send by postal mail, by email and advertised in local newspapers and on television in an effort to attract new credit card consumers.  Each credit card has a unique spin on the rewards they offer, but there is undoubtedly a double edged sword that pertains to credit card rewards that many people don’t account for.

Type of Rewards

The typical rewards consist of gifts, bonus programs, cash back on specific purchases, points redeemed for travel or other merchandise or low or no APR.  These rewards are often increased as spending limits increase, offering more incentive to spend once the card holder is considered a responsible spender.  Many rewards actually show earnings on the statement as a tactic to show the consumer what they are earning by spending, encouraging them to continue to spend.  This is thought to provide incentive for consumers to continue to spend with the hopes of earning rewards.  The problem is that consumers that spend just to gain rewards typically accumulate debt if they don’t pay off their balances regularly.  In this case the reward goes to the card issuer, not the credit card holder.

Go for the Incentive

Rewards have long been seen by society as incentives for good behavior. Good behavio

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During this period of economic and financial constraints, over due credit cards, mortgage payments and bank loans seem to be running rampant.  Getting behind in your credit card payments seems to be the first thing that typically happens.  For whatever reason, when it does get too hard for consumers to pay off their cards, Visa, MasterCard, American Express all seem to have special hardship programs to accommodate people who are experiencing some degree of economic adversity.

It doesn’t really matter what the circumstances are, however, as credit card companies will always do their darnedest to recoup their money from you.  No matter the hardship, no matter the situation you should be experiencing, the lending company is just that, a lender, with whom you have an agreement to pay.  The purpose of any hardship program sponsored by card issuers is to keep the account in good standing and to keep you paying on their terms.

In line with the terms of any hardship program and its agreement, they may reduce your annual percentage rate (APR), and may even agree to reduce your monthly minimum payment.  Rest assured, however, they still want their money back from you.

Who Is Eligible for A Hardship Program?

Hardship programs are not just handed out haphazardly to people who have recklessly exceeded their means.  It is a program orchestrated for special situations like a job loss, death, or other unexpected situation that arises involving unexpected expenses or unexpected loss of income. If you

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Raise your hand if you use a charge card. OK. Put your hand down if you are over 30. I see. There are no hands up. Well, at least that’s what I’m guessing.

American Express is hoping I’m wrong, though. Its new Zync card, unveiled Dec. 8, is a charge card targeted at 20-somethings. The company hopes to lure a younger demographic to a type of payment card dominated by older cardholders by offering a lower annual fee and customizable point offerings.

A charge card, for those who don’t know, is a special piece of plastic that requires the user to pay the balance in full each month. That means no dodging your debt; you gotta pay up every month. This is generally viewed as a good thing because you avoid charges, but still have the convenience of deferring some money when you have to.

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Consumers are turning to debit cards over credit cards this holiday season. According to the National Retail Federation’s 2009 study on Holiday Consumer Intentions and Actions, consumer debit card use is up and it’s growing steadily.  42.5% of shoppers will pay mostly by debit card or check card this holiday shopping season. That’s up 2.5% from 2008. Other findings saw credit card use drop 10% from this time last year; just over 28% plan to use credit cards compared to 31.5% in 2008. As the banks continue to raise credit card fees and rates, the debit card seems to be the more attractive choice for consumers.  However, it could be a case of jumping out of the frying pan into the fire if the consumer ignores the fine print.

How Debit Cards Work

Debit cards look like traditional credit cards with the MasterCard, Visa, or bank logo embossed across the cards, but rather than borrowing from a bank, debit cards are directly linked to the user’s bank account. There are n

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If you’ve waited until the last minute to apply for a credit card to use for holiday purchases, applying sooner rather than later is key.  Most credit card companies are taking longer to review and approve credit card applications than they were in the past and the days of instant credit card approval are gone.  However, if you’re looking for a new credit card, here are some features of the best credit card offers of 2009.

1.)  0% APR for 1 Year:  Last year, 0% rates lasting for 1 year were commonplace.  Today, most credit cards are only offering 0% rates that last for 6 months.  To get the best deal, be sure to seek out one of the few remaining 0% APR credit cards that continues to offer a 0% rate for a full year.

2.)  No Annual Fee Rewards:  By this time next year, most rewards credit cards will probably come with annual fees.  For the time being, however, many rewards credit cards continue to charge no annual fees.  While the number of these offers is dwindling, they are still there.  Currently, the best rewards credit cards offer 2% cash back.

3.)  Seek Out Low Interest Rates:  In the past, long term interest rates weren’t as important as they were today because consumers could count on 0% balance transfers to help minimize interest expenses.  Today, the credit card you choose to use may be the credit card you are stuck with until you’ve paid off your balance in full.  Thus, attention should be paid to credit cards offering low rates starting at 11.99% over those with low rates starting in the mid-teens, even if that means passing up on a rewards program.

4.)  Stick with a Good Credit Card Company:  If you’ve been hearing lots of negative news about a credit card company, don’t bring them your business.  Choosing a credit card company that respects its customers can prevent a lot of headaches.