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How many times have you taken out a credit card based purely on its current interest rate or balance transfer option?

You may be surprised to note there are at least 7 elements worthy of consideration when you take out a new credit card. To judge a new credit card on just one or two options could easily result in a bad deal for you. You need to consider the following 7 options when you take out a credit card:

1. The Initial Concessionary Interest Rate And Period

Many credit cards offer a 0% interest rate on purchases for a limited period, usually six to nine months. This option can be very attractive particularly when you do not repay the balance in full each month.

After the initial period the rate reverts to the standard rate, usually in the 10 to 16% range although this can be considerably higher.

Some cards however have no interest free offer but have a much lower permanent rate, from about 6.9% (although it will vary in line with general interest rate charges).

If you are likely to have a long term balance (if you are unable to pay off the debt within the first 6 to 9 months) this option could save you money in the medium to long term. You will not be able to switch to this rate if you have taken the 0% initial rate offer.

2. A Monthly Interest Free Period On New Purchases

This relates to the period between your purchase of an item and when you will be charged interest on that purchase amount. Many cards have a policy of only charging from the payment date after the item appears on your card statement.

The effect of this is to give you between approximately 25 days and 56 days interest free credit on all purchases. Clearing your balance within this period will result in no interest being charged.

Some cards will charge interest immediately from the date of purchase and are therefore not suitable if you clear your balance each month.

3. The Annual Fee

Many cards have now implemented an annual fee. This fee is chargeable whether you clear the debt each month or if you roll over your debt.

4. 0% Balance Transfers

When taking out a new credit card you will normally have the option of transferring any outstanding balance to your new card with no interest charged for a specified period.

Although marketed as a “0% balance transfer” many are not totally free of charge. An increasing number now charge a one off charge of 2-3% of the amount transferred as an “administration chearge” for handling the transfer.

This is legally not an interest charge but it amounts to the same thing – you are charged a fee by your credit card company based on the amount transferred.

The availability of true 0% balance transfers is disappearing and in all likely hood will completely disappear sometime soon. If a 0% balance transfer is important to you take advantage soon, however be aware that many of these cards have higher subsequent interest rates.

5. The Availability Of Cashback

Many cards now offer cashback on purchases. This is usually is between 1/2 and 1% of new purchases (excluding balance transfers and cash withdrawal). If you do not repay your account in full each month take this into account when considering the interest rate chargeable.

It is only where you repay the card in full each month that this is a true cashback on purchases and if you do repay in full each month you may choose to make this a priority.

6. The Rewards And Discounts Offered With Your Credit Card

Rewards are where you can purchase goods or services at a discount by using your credit card, or you have free insurance on purchases made using your credit card.

In the credit card business nothing is free. If there are rewards offered the cost will be built in somewhere (usually a higher interest charge) so compare with other cards not offering the same rewards.

7. Credit Card Payment Insurance

Whether you take this option or not most cards now offer some sort of payment protection insurance in the event of sickness and disability. In the past this cover was limited to paying the minimum monthly payment however many cards now pay 10% of the balance on the card at the time your claim commences and may be worth considering.
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There are so many credit cards out there to choose from that deciding which one to get can feel really daunting. What makes one offer better than the hundreds of others you’ve seen? Here are top 7 FAQs to finding the right credit card:

1. Are You a Student?

If you are, then you’ll be better off with a student card. Your application is likely to get accepted without problems. It would be best to contact the bank where you have your student account before you do anything else.

2. Are You Transferring a balance from another credit card?

If you are, then you need to be looking for a card with a low APR on balance transfers. APR is the acronym for Annual Percentage Rate. APR is the cost of credit, expressed as a yearly interest rate. However, do be careful of credit card offers that promise 0% introductory rates for say 6 to 9 months. There may be a catch somewhere!

3. Do You intend to Make New and Large Purchases?

If so, then pay more attention to the APR for purchases, which is usually entirely different to the one for balance transfers. You should also look at what kind of grace period different cards offer, so you don’t end up paying interest on your purchases straight away.

Also called a “grace period,” a free period lets you avoid finance charges for a specified time before you are required to start paying your balance. Without a free period, the card issuer may impose a finance charge from the date you use your card or from the date each transaction is posted to your account. If your card includes a free period, the issuer mails your bill at least 14 days before the due date so you’ll have enough time to pay.

4. Do You Pay Off Your Balance In Full Every Month?

If you have a lot of money or you only keep a credit card for emergencies, then you might just pay it all off each time you get the bill. If you do, then you’re in a position where you obviously don’t need to worry about the interest rate much at all, since you won’t be paying any interest (make sure there’s a grace period, though).

5. Do You Need to consider Other fees?

Many issuers charge annual membership or participation fees. Some issuers charge a fee if you use the card to get a cash advance, make a late payment, or exceed your credit limit. Some charge a monthly fee whether or not you use the card.
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Credit card late fees are a fact of life for some consumers, but they don’t have to be for you. Legally, credit card companies can hit you with pretty much whatever fees they want. On the other hand, you don’t have to pay them, but only if you avoid them in the first place. Here are five sure fire ways you can avoid costly credit card late fees:

1. Pay Before the Due Date. Of course, this makes the most sense. However, this is also the single most important reason why people get socked with fees: they receive their bill and immediately forget about it! When you get your bill, open it up and pay it promptly. Waiting means forgetting and forgetting about your credit card bill will cost you money.

2. Pay on the Internet. If you have access to a computer, then paying online is the best way to make certain that your payment gets to your credit card provider on time. Be careful, as there is still some lag time from when you authorize funds to be released from your checking account and when that payment is finally credited to your credit card account. The gap between the two can be as long as one week!

3. Schedule Automatic Payments. Some credit card providers allow for you to set up a scheduled deduction from your checking account which is then automatically sent to your credit card provider. You should set it up to take money out of your account well before the due date to ensure that your funds are received on time. You can always send in a separate, extra payment if you want to pay down your debt faster too.
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The field of bankruptcy law has exploded in recent years, even though the process of filing for bankruptcy really only involves filling out a few forms. Misconceptions, frightening news articles, and misleading advertisements put out by many of the firms now specializing solely in bankruptcy law have convinced the average consumer that they absolutely must hire an expensive attorney in order to get rid of the money they owe.

Even if the client has an above-average number of questions or a combination of income, debt, and assets that are more complicated than most, an experienced lawyer should be able to handle a bankruptcy claim from start to finish in a matter of hours. Some honest legal professionals only bill their clients for this small amount of work, but the majority charges a minimum of $2,000 for a basic filing. In fact, in some areas, rates can skyrocket as high as $10,000 for a single case!

These inflated prices have actually driven many of the honest attorneys out of bankruptcy altogether, because once a client has been convinced that bankruptcy should cost them thousands of dollars, they are naturally wary of hiring anyone who charges much less.
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