Credit Blogspot

Credit cards can be a little difficult to understand, especially if you have never had a credit card before. There are a lot of fine print explanations that even the most season credit card holder might not read. It is usually in the fine print that you find exactly how the credit card works. In an effort to help you choose your next credit card, we offer detailed explanations about how to use credit cards as well as the credit card offers in the UK available to you.

On this site you will see several links to the most pertinent information you need to know about credit cards. The homepage will allow you to search by category as well as articles we provide. The first section you might want to take a look at is the Summer 2008 News. On this page the articles will provide the latest news on credit cards and to compare them.

Some of the topics for this summer include penalty charge refunds, how to cut costs, fuel cards, fraud, and terms and condition changes for credit cards. Our expert writers strive to find the latest information about the UK market to help you find the best card for you.

Other articles on the site will explain how to use the card, what changes you might want to make, and the hidden fees associated with credit cards. Articles will also explain the different credit card deals available to you. For example, the transfer balance cards are one of the most popular products on the market, and often the most misunderstood. This is due to one of those hidden features in the terms and conditions. To learn more seek that article out.

We want you to be able to take the information on this site to find your perfect card. There will be plenty of different articles and information when you log in to credit card corner. Not only do we provide up to date information regarding credit cards, but we also have other helpful items.

On Credit Card Corner you can expect to find comparison tables of all the latest credit card deals on the market in the UK. These tables will show you at a glance what is being offered. By examining the tables you can then decide the top five credit cards you would like to know more about.

The tables will take you to the terms and conditions, as well as the more information area to help you decide between your top choices. Once you have decided on the card you want to apply for, you can follow the link supplied to the application. The application process will be short and determine if you are able to take out the card.

When reading the information available on this site there may be things you knew about before reading, but chances are there are some aspects to credit cards you didn’t understand or know before. The payment schedules of credit cards is one item many don’t realise is so convoluted. So take a few minutes to discover what we have to offer.

Posted under Credit Card

Make sure you are choosing the best deal for you and not just the best deal.

Since the credit crunch kicked in it’s become much harder to use cards to manage your debts. The days of the credit tart – who shifts balances from one zero per cent interest deal to another – are well and truly over.

Major banks are now turning down more than half of all credit card applications. Interest rates have risen by an average of three per cent on purchases and seven per cent on cash withdrawals. By April this year, 1.8 million cardholders had their spending limits reduced by an average of £1,680 as banks cut the amount they were prepared to lend on plastic by more than £3 billion.

Here are some tips on card applications, balance transfers and debt management:

Do your research
Don’t just respond to the first ad that you see. Read newspaper money sections and visit personal finance websites to get a feel for what’s out there and set your expectations accordingly. Most cards are targeted at a specific group of people and if you don’t fit the profile, you won’t get the deal you want. LowerMyBills.co.uk offers a wide range of cards so there should be something to suit.

A zero percent balance transfer may not be right for you
Since the credit crunch began, the few deals that there are tend to go to applicants with the best credit ratings, so don’t even think about applying if your credit history isn’t in great shape – for example, if you’ve missed some repayments in the past few years. Even if your financial status is healthy, a zero per cent deal is only worth doing if you can pay off the amount you owe within the time of the offer. Don’t add new spending to the balance if you can avoid it – it can often be repaid only after you’ve cleared the original debt, which means you could be racking up interest in the meantime.

For more time to repay your debt, chose a different card
There are cards out there designed for those who need more than the normal six to 15 months to clear their balance. These offer a steady, low APR over time. Again, don’t be tempted to add to the debt or you could still be making repayments when the next economic cycle of boom and bust comes around. LowerMyBills can help you to identify the card that’s right for you.

If you want to spend
If you pay off your balance in full each month, look for a card offering rewards linked to spending – air miles, cash-back or loyalty points. If you know you will pay interest on an outstanding balance, look for the lowest possible APR – annual percentage rate of interest – but be sure to ask for a specific quote. As usual, the best offers tend to go to the people with the best repayment records.

Applying for a loan? Check LowerMyBills
When you apply for a loan lenders use two main sources of information when deciding on whether to make an offer and what conditions – such as interest rates – to set. The first is your application form. The second is your credit report, which is the personal history of your credit accounts, including cards, loans and mortgages. If you’re using LowerMyBills to search for a loan it will match your credit report to the best available product on the site.

Avoid making multiple applications
They will leave traces, known as searches, on your credit report. Lots of searches could depress a credit score and could make lenders think you’re desperate for money or even that a fraud is being planned.

Don’t lose heart if you are rejected
Instead, ask the lender why you were turned down. LowerMyBills offers lots of advice on how to get it right next time.

Posted under Credit Card

Struggling credit card holders are to be identified to providers under a new industry-wide scheme

Credit card providers are to begin sharing detailed information about their customers in a bid to identify those who are struggling to repay their debts, it has been reported. According to the Guardian, the 17 credit card companies belonging to the UK payments association Apacs will exchange in-depth details about consumers’ repayment habits.

Currently, information such as how much customers are borrowing and whether they are making their repayments on time is shared, but under the new proposals companies would have access to additional details.

These would include the actual amounts being repaid each month and whether customers are using their cards to withdraw cash. Both of these are seen by Apacs as signs that consumers are struggling.

The organisation claims four percent of the nation’s credit card holders are facing financial problems, while 11 percent are paying just their minimum monthly repayments, risking further debt problems.

Apacs hopes the scheme - which forms part of a wider responsible lending initiative - will be in place by the end of this year, covering 97 percent of the UK credit card industry.

A study by researchers at the University of Warwick has revealed that the presence of a minimum repayment level on a credit card can act as a disincentive to pay off the balance in full, effectively extending the length of the debt.

Posted under Credit Card

The credit crunch means that getting the credit card you want might no longer be a simple matter of filling in a form.

It’s hard to imagine life today without a credit card or three – but the credit crunch means that getting the one you want might no longer be a simple matter of filling in a form and waiting for your shiny, new plastic to arrive.

Before you apply, it pays to do some groundwork. These suggestions should help you to play your cards right:

1. Check out the market
Don’t rely on the direct mail that flops onto your doormat – compare credit cards online to find the right deal for you. You can pull together a far wider range of options than you would find on your own and can match your circumstances to the deal that will suit you best. That means you’re less likely to face a rejection and more likely to get a card that really works for you. Remember to provide accurate information, or they’ll point you in the wrong direction.

2. Look up your credit report
This is your personal credit history, showing your loans, mortgages and other credit commitments, your repayment history and other information such as whether there are any court judgments against you. Lenders usually see your report before they decide to offer you a card and what interest to charge, so you should ensure that it’s accurate and up to date. A single error could mean you don’t get the deal you want. See your free Experian credit report now.

3. Don’t over-extend yourself
If you’ve already got a couple of cards, as well as a loan or two or a mortgage, another card could simply add to your burden of debt. Take a good look at your finances before you apply to be certain that you really can afford to borrow more. That’s what lenders will do and if they think you’re already over-extended, you could be turned down.

4. Understand the costs
Many cards have attractive introductory offers, others set a wide range of interest rates – and it can all be thoroughly confusing. Look beyond the headlines and read through the terms and conditions before you make your choice. Look for application and balance transfer fees, charges for using cards abroad and for withdrawing cash. There may also be annual fees to consider.

5. Don’t use a scatter-gun
If you fire off applications at random, you might damage your credit status. Every time you make an application, the lender will search your credit report and leave a record, known as a footprint. If you generate a large number of footprints in a short space of time, lenders can think you’re desperate for money or even that a fraud is being planned, which won’t improve your chances.

6. Use common sense
There’s no point asking for a gold or platinum card if your finances are stretched. Equally, don’t hold out for the spending limit you think will get you out of trouble – many lenders have recently reviewed their current cardholders and have sometimes reduced spending limits to match individual circumstances.

7. Understand why you’ve been rejected
Ask lenders why they’ve turned you down. It could simply be that you don’t fit the profile for a particular card – for example, it could be aimed at older people or students. Equally, they could have identified something in your credit report or application form that you should know is seen as a problem Once you understand the reason for a rejection, you can work on improving your chances.

8. Pay your bills on time
Lots of us think it won’t matter if we skip the occasional repayment – one survey found that 5.1 million people did just that in December 2007. But even a single missed repayment will show up on your credit report and will stay on it for at least 36 months, damaging your chances of getting credit in future.

9. Don’t rob Peter to pay Paul
A credit card is a useful way to manage your finances, allowing you to take advantage of bargains and to spread the cost of major purchases – but it is not a route out of financial trouble. If you are thinking about taking out a card to pay off existing debts, think again. Review your financial position, see if you can cut back anywhere, set yourself a budget and, if you can’t see any alternatives, get free expert advice. Try Citizens’ Advice at www.citizensadvice.org.uk, the Consumer Credit Counselling Service at www.cccs.co.uk or the Debt Advice Trust at www.debtadvicetrust.org.

10. Admit when you’re in trouble
If you’ve over-stretched yourself or a change in circumstances means you’re worried you won’t be able to keep up your payments, don’t stick the bill in a drawer and your head in the sand. Stop using the card and get in touch with your card issuer to explain the situation. You may be able to work out a schedule of repayments that you can mange.

Posted under Credit Card

We are all very concerned with the health of our bodies, but sometimes people let the health of their finances slide a little bit. I know I have been guilty of this in the past! Lucky for you, I just came across a simple 7 step quiz you can take to get an insight into how you are doing financially, depending on your age, how much debt (and what kind) you have, what you have in the bank, and a few other things. I took the test, and it looks like I have my housing costs and debt level under control, my emergency fund is ample, my diversification is a little conservative, and I am just slightly undersaving for retirement. Overall though, I am doing pretty well according to this simple test that took only a few minutes to do. If you want to take the test and see what your financial health looks like, head on over and see how you do!

Simple Quiz For Taking Stock Of Your Financial Health.

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Posted under Credit Card

As most of you know, I also run a website dedicated to environmental issues called The Good Human. (If you are into that stuff, check it out) I talk a lot over there about “being green” and stuff like that, but today I wanted to point something out here for those of you looking to save money by doing some gardening at home - but feel like you cannot because you live in the city. One of my favorite inspirational sites for “homesteading in the city” is Path To Freedom. This family has taken the idea of urban farming to an all new level by having an entire ecosystem and farm on their 1/5 of an acre lot in Pasadena, CA.. The yard has over 350 varieties of edible and useful plants, and their productive 1/10 acre organic garden now grows over 6,000 pounds (3 tons) of produce annually. 3. tons. of. vegetables. Amazing. In addition, these urban farmers share their homestead with a menagerie of animals — chickens, ducks, two rescued cats, red wiggler worms (which compost garbage) and two goats (Nigerian Dwarf and a Pygmy goat.

Still think you cannot grow food or raise animals in a small space? Makes me think I should have a working steer ranch on my several acres, that’s for sure! If you are looking for more advice and inspiration on growing your own food for your health and your wallet, check out the following:

Home Gardening: What, How, And When To Plant In Your Growing Region.
Square Foot Gardening
Garden Progress Update (Plus Bonus Video!)
My Square-Foot Garden Overfloweth

Never say never!

Think You Can’t Garden In The City To Save Money? Think Again.

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Posted under Credit Card

She doesn’t need more crap to clutter up the house, I promise you that. Throughout my teenage years and into my twenties, I always felt like I had to get my mom something for Mother’s Day. Something, anything - a frame with the word “Love” on it, a nice picture, some flowers that die in a few days. I can only think back on all the extra “stuff” I bought for her that ended up in a landfill someplace over the years. Only recently have I started thinking that buying stuff isn’t really what a Mom would want; after all, it’s just extra things to keep around the house. Instead, I am of the firm opinion that giving TIME is much more of a gift that someone would appreciate, and it costs you nothing. And that’s not because you are cheap - in fact it means quite the opposite. Buying “stuff” is easy, anyone can do that. But taking the time out of the day to call your mom for a while, take her out to lunch, do something she has always wanted to do - that’s being thoughtful.

Granted, I live about 2000 miles away from my mom - so I cannot exactly take her out for dinner. But I will be sure to call on Mother’s Day and chat about anything she wants. Ask them questions about what they are doing that week, what they want to get done this year, or what they still dream they will get done in their life. We oftentimes forget that Moms are people too, especially as we get older and get wrapped up in our day to day hectic lives. So this Mother’s Day, don’t just pick up some crappy plastic “thing” to send to her - give her the gift of some of your time. It’s much more valuable.

Get Your Mom The Gift Of Time For Mother’s Day.

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Posted under Credit Card

If you can afford to lose a few billion dollars but still have billions left, I have trouble feeling bad for you, even if it is 25% of your net worth. If I lost 25% of my net worth, I would be worth $.75, so there. There’s a big difference in how much you lose, based on the initial size of your bank account. Figures compiled for the Sunday Times Rich List 2009 reveal that the number of billionaires has fallen from 75 to 43 in the past 12 months. Some gems from the article, which made me cry out in pain over their apparent poverty:

• Lakshmi Mittal, the London-based steel magnate, was the biggest loser among the billionaires after his fortune dropped by almost £17bn to £10.8bn. But he retains his place as Britain’s richest man for the fifth year running.
• Sir Richard Branson, who has lost £1.5bn and is now worth £1.2bn
• Roman Abramovich, the Russian owner of Chelsea Football Club, keeps his position at second on the list despite also suffering from the downturn. His fortune has fallen to £7bn from £11.7bn.

When you can lose £7bn yet still be second on the list of the UK’s wealthiest people…

Super-Rich In UK Becoming Less Super-Rich In UK.

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Posted under Credit Card

This giveaway is now closed.As I promised yesterday, it’s time for yet another book giveaway. This time it is for “The Cure For Money Madness” by Spencer Sherman. This is a book that wants you to “Break Money Habits, Live Without Financial Stress - And Make More Money!”, so I am sure it will be of some use to a lucky reader. Money Madness, as the author uses the phrase, is basically anything that stops us from achieving whatever goals we have set for ourselves; we always seem to hinder our ability to get there in one way or another. And believe me, I have been there too and fought hard to get my financial house in order! Sherman takes a look at irrational feelings about money that so many of us have and how those feelings make us act completely irrational - we buy high and sell low, we overspend, we lie to ourselves and our significant others, and we equate our self-worth with our net-worth. (Something I struggled with myself for a while) Luckily, he takes us through how we got this “madness”, shows us how it can affect us, and teaches us how to free ourselves from it’s tight grip. One of the last chapters, Chapter 10, is titled “Enough - Finding Your Sufficiency“, which is something I preach about all the time here on My Two Dollars. He even mentions a trip to New Mexico when talking about “enough”, which is pretty funny considering that’s where I live! When do you reach your “enough” point? I reached mine a few years ago and have lived very comfortably since then. If you are still looking for yours, this book will definitely help you find it!

So, how can you win the copy of this book? Well, it’s going to be different this time because of various reasons I won’t get into here for now. Inside the RSS feed and the Daily Emails that people can subscribe to, there will be a secret code word at the bottom that you will have to email me in order to enter. If you don’t have my email address already, you can use the contact form to send it to me. From all entries that are received, I will use a random number generator to choose a winner. The giveaway closes Thursday morning, April 30th at 7am MST, and the winner will be notified soon thereafter. Contest open to US residents only, and the book will be shipped via media mail from the USPS. Good luck to everyone, and if you don’t win, be on the lookout for another giveaway in a week or so!This giveaway is now closed.

Book Giveaway: ‘The Cure For Money Madness’.

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Posted under Credit Card

This does kinda relate to my earlier post about living in a small town during this recession, as we are seeing more bartering going on amongst neighbors in order for everyone to save money. I just read this story about people in Atlanta finding ways to get goods and services without spending any cash at all and figured I would share with you guys. Seems bartering is catching on everywhere, and I think it is a great thing - it’s kinda like going back in time to when people took care of each other. I do hope that if the economy comes back we can continue down this path as it saves money, resources, and it helps to build stronger communities. From the article:

Once a week, this group that calls itself the YOUMEs gather around a campfire in Dr. David Epstein’s backyard to offer what they have and to find out who within their community might have something they want.

Each person takes a turn offering assets and announcing needs.

The group is part of a growing national trend of communities looking for low-impact, locally rooted solutions in this challenging economy. Along with saving money, they’re meeting neighbors, learning what they have to offer and making connections that they say will benefit themselves and their community, today and in the future.

How cool is that? Maybe if you live in a neighborhood where you think that might work, you should start a group too. You can share food, tools, jobs, etc - and everyone benefits. Have you seen anything like this where you live?

Bartering Is Coming Back Into Vogue.

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Posted under Credit Card