Credit Card Helper

No Annual Fee Vs Low Interest Rate Credit Cards

admin — Sun, 04 Oct 2009 12:49:22 +0000

When it comes to choosing a credit card, there are many features that you need to get working in your favour to save you money. One of the main things that you’ll need to decide is whether you want a low interest rate, or minimal annual fees, as they are each rewarding to very different styles of spending, and it is very rare to find a card that has both.

Low Interest Rate Credit Cards are ideal for those who aren’t always regular with their repayments. They allow you to take longer at paying off your balance before you start paying too much extra in interest. They also generally come with an interest free period, which allows you more time after a purchase to get the money together to pay off the debt, while not having any interest accumulating.

Low Interest Rate Credit Cards are also good for funding larger expenses that may take a while to pay off; if, for example, you bought a large screen television for several thousand dollars, it would generally take a while for you to pay back the full cost, and you probably wouldn’t prioritise repayments over paying for necessary living expenses. With a Low Interest Rate Credit Card you can steadily pay off your debt without worrying about too much interest gathering over time.

If you don’t think you will always have the available funds to pay off your credit balance every month, then it is worth paying the one off annual fee so as to receive the overall savings that a Low Interest Rate Credit Card offers.

No Annual Fee Credit Cards are a great option for those who would like the convenience of holding a credit card, but either don’t want to use it too often or have the money to pay off the account balance monthly. Credit cards offer benefits like online shopping, international usage, as well as the security and comfort of knowing you have access to money in an emergency. However, for those who only want to use their credit card minimally and intend to pay off the balance immediately, leaving it with no time to gather interest, there is no point having a low interest rate if it comes at the price of a higher annual fee.

It can alleviate worry knowing that you have access to money in an emergency; for example, for parents, if your child holds a credit card, you can have the peace of mind that they won’t be stranded without any way home, as they could pay for a taxi. It can feel frustrating, however, to pay for an annual fee on a card that spends most of its time unused in your wallet. If you are hardly ever going to have debt on your card, then opting for a No Annual Fee Credit Card is the best choice.

The pivotal factor in whether you should go for a Low Interest Rate Credit Card or a No Annual Fee Credit Card is the balance that you are going to carry on it. It doesn’t matter how much you spend on your card if you manage to pay it off quickly, it is how long the debt is on your account that will matter in terms of accumulating interest. If you think you will be able to maintain consistent and fast repayments on your balance, then a No Annual Fee Credit Card would be most worthwhile; if you would be slower in making repayments then a Low Interest Rate Credit Card is the way to go.

Key Credit Card Features to Compare before Applying

admin — Sat, 03 Oct 2009 08:42:58 +0000

Trying to choose which credit card has the most suitable features for your needs can be very confusing, especially when you take into account how man credit cards there are available. Some differ only very slightly, for example in their interest rate or annual fee, or the rewards that they offer, however these small differences, when you take into account how you’ll use your card, could save you money in the long run. Listed here are the features that you should check for each perspective credit card before making your final decision.

Annual Fee - (some have No Annual Fee for the first year, or No Annual Fees if you spend over a certain amount, or extra fees for additional cardholders.)
Interest Rates - for Purchases, Cash Advances and Balance Transfers.
Additional Fees – balance transfer fees, late payment fees, international usage fees (conversion rates etc.)
Introductory Offers – what they include, when they expire etc.
Interest Free period – how long you have to pay off a purchase before it begins to accumulate interest
Rewards Programs or Discounts - some cards include a rewards program such as frequent flier points, or special discounts for petrol, or at certain stores.
How to earn the Rewards - How many points you receive for every dollar you spend on the card, and if you can receive bonus points.
Bonuses – Some cards offer additional features like travel insurance or free additional cardholders
The requirements for application approval - minimum income, credit history etc.
Maximum Credit limit - This will usually vary from person to person depending on income and credit history, however you don’t want to apply for a card with a lower maximum limit than what you need.
By comparing these key features, you can assure that you will find the best credit card for your spending and lifestyle.

Applying for a Credit Card online

admin — Thu, 01 Oct 2009 07:25:03 +0000

There are many ways for you to submit an application for a credit card, including over the phone or in person at the bank, but by far the easiest and most efficient way is to apply online.

When you are thinking about a credit card, the most important thing is getting the right one for you needs and lifestyle. With the information provided on Credit Card Helper, you can easily browse through the cards available from all of the banks, as opposed to only hearing about the cards from the one bank that you call up or go to in person. This overview of cards and the details of each will save you time and effort, letting you compare between cards and banks to find the best one for you using helpful tools like our comparison tables.

This is especially helpful if you are looking for a certain type of card, and don’t know which bank offers the best choice. For example, if you were looking for a Rewards Credit Card, rather than ringing one bank and finding out only about the rewards that come with the cards they offer, or having to ring all of the banks to decide which one you like, we do the work for you and provide you with the information you need to make your choice. For most people our recommendation is the American Express Card, and with our resources you have the ability to know whether it would be right for you.

Once you have decided which credit card is right for you, it is a simple process to fill in the application form online. This allows you to apply from the comfort of your own home, without having to travel to the bank or wait in lines. Online applications usually have fast approval as well, sometimes in a matter of minutes, so you don’t have to wait for a great length of time to know whether you are suitable or not, which can be stressful.

By entering your details to the bank online, you are also assured that your personal information is safe. Credit Card Helper is a secure site, and when you click the ‘apply’ button you are redirected to the bank’s own application form; your information is provided directly to the bank, it is never given to us or any other third party. Applying online also takes away the human element; you don’t have to put your trust in the bank worker or anyone else who may use your information wrongfully.

So for a fast, easy and secure way to find the best credit card for your needs, as well as quick application and notice of approval, apply online through Credit Card Helper.

How to Know If You’re Ready For Your First Student Credit Card

admin — Fri, 25 Sep 2009 02:49:15 +0000

For students and those who have recently turned 18, now is when you will begin to think about applying for your first credit card. However, before just diving straight into the world of plastic purchasing, you should consider how ready you are to cope with the financial responsibility of having access to money that you have not yet earned.

Owning your first credit card is a substantial responsibility, as it can be very easy, especially at first, to max out your credit limit. Paying with a credit card can have the effect of desensitizing you to the value of purchases; rather than counting out and handing across the physical value of the transaction you simply swipe a card; before you realise you can have accumulated hundreds of dollars worth of debt without much of a thought as to what your money is being spent on.

Consider how you have handled money in the past. If you tend to spend money as soon as it comes into your debit account, then you would probably be more likely to overshoot your earnings and land yourself in debt. If you have borrowed substantial amounts from family or friends, think about how reliable you have been with paying them back. If in the past you delayed the repayment of your debt in favour of spending money on personal and perhaps unnecessary expenses, then you may not have the financial responsibility for credit card ownership yet.

If you have a job, then make sure that your income is enough to cover all of your expenses, and don’t count on the idea that you can pay for an excessive expense with your next week’s pay; if you allow yourself to justify purchases in that way then you will only find yourself in debt. If you are unable to juggle tertiary studies and a part time job, and are relying on the support of your parents, then talk to them about what they are willing to pay for; if you are constantly making purchases that they don’t want to repay, you will receive a bad credit rating and find it hard to apply for future credit cards or loans.

If you do decide to apply for a credit card, make sure that just because you have the ability to make a purchase, you still consider the necessity of what you are paying for, and avoid impulse buying. Frequently checking your bank statements is also a good idea, as you can monitor how much you spend. It also gives you an opportunity to see where your money is going; you can notice if an excessive amount of money is being spent on short term indulgences, such as fast food or magazines.

There are credit cards specifically designed for students, with features to fit your needs and budget. A student credit card is usually the first experience with credit and debt, and it can either be the foundation for good financial habits and a respectable credit rating, or it can be misused and leave you with substantial debt and a poor chance of successful credit and loan applications in the future. It is important to apply for a credit card only when you feel comfortable with the responsibility that is required.

Things to Consider before Closing a Credit Card

admin — Tue, 25 Aug 2009 09:41:40 +0000

If you feel like you have a Credit Card that you no longer need, there are a few things that you should take into consideration before deciding to close the account. While it may cut down on fees, and you could have less temptation to accumulate debt, it might also reflect badly on your credit rating for future credit or loan applications. The following information has been provided to help you make the decision of whether or not to cancel a credit account.

Reasons to Close a Credit Account

The first and foremost reason to close a Credit Card is that you can no longer spend the credit limit that was allocated to it. This will reduce your ability to overspend your budget, and could help to keep you out of debt.

If you hardly use a card that has a high annual fee, then you could close the account to stop that expense. If you have many cards, and each has substantial fees, then you could close one or more of those accounts and use your other cards for all your costs.

You may wish to close an account with a high interest rate, due to having accumulated a considerable amount of debt. If this is the case, then you could open a card with a decent Balance Transfer interest rate, move your debt to that account, and close the original one, thereby saving yourself a substantial amount of money in interest.

You may simply have gathered many credit cards over time, and wish to cut down, or only keep the ones that best suit your present needs. If you wish to make the most of a rewards program, then closing your unused accounts and channelling all your spending to the Rewards Card could also be worthwhile.

Having many credit cards can also make you less likely to notice if you have become a victim of Credit Card fraud. If you misplace your card, or it is stolen, then you may not realise until you next need to use it, and if you are able to use many cards that could be some time. You may also check each individual account’s statement less frequently, so that you may not notice suspicious transactions as quickly as you would have if you had fewer accounts.

Reasons Not to Close a Credit Account

There are certain advantages to having several Credit Cards, which you should consider before closing a credit account. The more Credit Cards you have, the more money you have at your disposal for sudden expenses or in an emergency, such as needing to fly overseas at short notice, or pay for unexpected repairs.

Closing an account will also affect your credit rating, which banks and other loan providers will consider when you apply for a credit card or loan. Having accounts that have been active for a substantial amount of time will look better to potential lenders than if you have a credit history showing only recently opened cards.

You also need to consider the amount of credit that you have available to you compared to the debt that you owe. This is known as your debt to credit ratio, and it informs loan providers about how reliable you are with your money. As a simple example, if you had two credit cards open, one with $4500 debt, the other with no debt, and each having a $5000 limit, your debt percentage would be 45%. If you then closed the account with no debt, your debt percentage would skyrocket to 90%, which would reflect unfavourably upon your financial reliability. It may be advisable to keep both accounts open, at least until you have paid off some debt, or opened a new account that will keep your debt percentage respectable.

Overall, the decision to close a credit account is based entirely on your personal circumstances. If you are prone to overspending your income because of excessive credit available to you, then reducing this temptation could be the most important factor. If, however, you are looking to apply for a large loan, then it may be best to keep your credit cards active to boost your credit rating. Make sure you consider all the factors to decide what is best for you.