Archive for June, 2009

Credit Card Interest Rates Can Vary Considerably

Credit card interest rates are how lenders make their money, but that amount of money usually depends on the card holder. Interest rates have been going down in past few weeks and are likely to be seeing even more changes in the next few months, they are falling to record lows as lenders try to get into one of the few remaining areas for growth in the credit industry. Credit card interest rates are usually tied to the US Prime Rate; the interest rate set nation-wide by the Federal Reserve Board.

Interest

Interest can vary considerably from lender to lender, and the rate on a particular card may jump drastically if a consumer is late with a single payment or goes over their limit, and sometimes if the bank decides to raise its revenue. Interest is usually displayed as APR, which stands for “Annual Percentage Rate”. It is law that credit card interest rates must be displayed on the product so that the consumer knows the rate they are going to be paying, thus enabling them the chance to compare offers. Interest rates, high fees, and increasing minimum payments have many consumers feeling the credit crunch of 2008. If you have been making timely payments to your account (for several months) and you don’t usually max out your available credit, you can usually negotiate with the bank for a lower rate.

Online

Searching online is a great way to help find companies that have the best rates. If you do a internet search you can also find a variety of APR calculators which can help you to figure the credit card interest rate re-payment totals. If you are comparing credit cards on the internet, you should always find the web page link that contains the financial disclosure information and a most likely a chart that lists the APR along with other fees and charges that might be associated with the product. There are also options for those with a bad credit history other than a standard unsecured card such as pre-approved credit cards, but the interest on these types of products are usually a lot higher.

Notes Of Interest

Obama voted “NO” on the Dayton Amendment to the 2005 bankruptcy-bill that would freeze Credit Card Interest Rates at no higher than 30 percent.

India’s APR’s appear to be the lowest while Brazil has the some of the highest credit card interest rates around.

Most rates range from 10-20 percent APR, although some cards can go as high as 30 percent for consumers with a bad credit history.

Arthor Pens
http://www.articlesbase.com/credit-articles/credit-card-interest-rates-can-vary-considerably-701572.html

Repair Your Credit Rating With A Secured Credit Card

Most people who have taken out a loan or use a credit card have credit rating. However, if you miss a payment or owe money to a creditor, the creditor will report this to a credit reporting agency that keeps records of your credit report. If you do not repair your credit immediately, you will have a negative credit rating and you will not be able to get any credit or loan in the future. You must take immediate steps to remedy this and repair your credit rating.

A good place to start your credit repair is by using a secured credit card. It is usually impossible to apply for a credit card once you have bad credit, which in turn does not afford you any opportunity of proving to your creditor that you are capable of paying your bills responsibly and on time.

To repair your credit with credit cards, obtaining a secured credit card is a good option. Secured credit card is targeted specifically to people with bad credit. When applying for a secured credit card, you are required to place with the secure credit card issuer an initial deposit equal to the amount of your credit limit; that is, you will have a credit limit of $1,000 if you place a deposit of $1,000. The issuer has the right to deduct from your deposit any outstanding balance on your card statement that you fail to pay on time. This plan thus benefits both you and the issuer; in other words the issuer carries no risk thanks to your initial deposit, and you will not fall into your old habit of being behind on or failing to make payment,

Once you have received your secured credit card, you must start practicing good money management habits in order to repair your credit. Use the card but use it sparingly, and also make sure you pay on time. By doing so, you are demonstrating to your creditors that you can be trusted and are responsible, and in this way you will slowly repair your credit.

If you do not take any steps towards credit repair, the credit reporting agency will negatively mark your credit report for seven years, so that you will not be able to get any credit or loan for all those years. By taking a positive step towards credit repair such as by applying for a secured credit card and using it responsibly, you will not have to wait that long to get good credit again.

Susan Jan
http://www.articlesbase.com/non-fiction-articles/repair-your-credit-rating-with-a-secured-credit-card-58261.html