Annual Percentage Rate. The "annual percentage rate," or APR, is disclosed to you when you apply for a card, again when you open the account, and it is also noted on each bill you receive. It is a measure of the cost of credit, expressed as a yearly rate. The card issuer also must disclose the "periodic rate" -- that is, the rate the card issuer applies to your outstanding account balance to figure the finance charge for each billing period
Why Does APR fluctuate?
some credit card plans allow the card issuer to change the annual percentage rate on your account when interest rates or other economic Indicators (called indexes) change. Because the rate change is linked to the performance of the index, which may rise or fall, these plans are commonly called "variable rate" plans. Rate changes raise or lower the amount of the finance charge you pay on your account. If the credit card you are considering has a variable rate feature, the card issuer must tell you that the rate may vary and how the rate is determined, including which index is used and what additional amount (the "margin") is added to the index to determine your new rate. You also must be told how much and how often your rate may change.
My Credit Score is 602 which I guess is not very good. Is their a card that I might get with a lower interest rate?
The higher your credit score, the better credit card offers you will be eligible for and receive. This includes the credit cards with the lowest interest rates. In other words, the interest rate you receive is directly related to your credit score. The credit score scale ranges from 300 to 850. Most people have scores between 600 and 800. A score of 720 or higher gets you the most favorable interest rates. According to Myfico.com, someone with a credit score of 720 to 850 will have an Annual Percentage Rate (APR) on their mortgage of 5.649 percent, while someone with a credit score of 675 to 699 will have an APR of 6.311 percent. This small difference can cost you much more than you think. Fortunately, there are many ways to raise your credit score. First, check your credit report at least once a year and correct any incorrect information you find on your credit report as quickly as possible. Second, have as few open credit card accounts as possible. For accounts you do have open, keep the balances as low as possible. And of course, make all of your payments on time. By following these guidelines, your credit score should rise each month and make you eligible for lower interest rate credit cards.
I'm trying to find a credit card where I can co-sign for a friend. She has a permanent job, but no credit history.
Any credit card that allows for a cosigner is a card your friend can consider applying for. When an application asks for a cosigner, it does not limit whether or not that cosigner is a friend. Both you and your friend need to remember that if you do cosign an account for her, both of you will then be responsible for keeping the account current. This means that if she stops paying, you will be expected to pay. However, if the account goes into default or accrues penalties for any reason, it will be recorded on both of your credit histories. Cosigning for your friend should be taken seriously and carefully thought through. You must be sure that you can afford to pay on the account if your friend does not. Since you will not have any control over how much she spends, you need to be prepared for the largest sum possible. In addition, any late fees or other penalties your friend accrues on the account will have to be paid by you once the creditor asks you to pay on the account. The cosigner rarely gets any kind of monthly statements, so you may not know there is a negative situation with the account until a creditor contacts you. You can sometimes get the lender to agree, in writing, to notify you if your friend begins to miss payments. This can notify you early if there is a problem. In each state, cosigners do have rights, so find out what your rights are as a cosigner before signing on the dotted line. You may be able to negotiate the terms of your liability on an account with the lender before cosigning. Explore this option ahead of time. Lastly, keep copies of all paperwork you sign in case these papers are needed in the future.
Shopping Around for the Right Card
When shopping for a credit card, you probably will want to look at other factors besides costs- such as whether the credit limit is high enough to meet your needs, how widely the card is accepted, and what services and features are available under the plan. You may be interested, for example, in "affinity cards" -- all-purpose credit cards that are sponsored by professional organizations, college alumni associations, and some members of the travel industry. Frequently, an affinity card issuer donates a portion of the annual fees or transaction charges to the sponsoring organization, or allows you to qualify for free travel or other bonuses.
When should credit card payments be credited?
A card issuer must credit your account on the day the issuer receives your payment, unless the payment is not made according to the creditors requirements or the delay in crediting to your account does not result in a charge. To avoid delays that could result in finance charges, follow the card issuers instructions about where to send payments. Payments sent to other locations could delay getting credit for your payment for up to five days. If you lose your payment envelope, look on the billing statement for the address for payments or call the card issuer.
Don't be Late, Pay the Minimum
Late fees, these days, may take a toll on your financial health. It would be especially unfortunate to pay a late fee if your total credit card bill is less than the amount of late fee. To avoid this situation, consider paying a minimum due on your bill if you do not have enough cash on hand to pay off the whole bill on time.
Pay by Phone
If you are in doubt whether your payment will arrive on time, you may call your credit card issuer and make a payment by phone. It may cost you anywhere from $5 to $30, but you will avoid paying a much more costly late fee. To make a payment by phone, all you need to provide is your bank?s account and routing numbers, printed on the bottom of your check and a check number you wish to use. Remember, however, that you will not be able to use a check, whose number you had used for credit card payment.
Automatic Online, On-time Payments
In the era of everything e-commerce, online banking is not trailing behind. Besides checking your account balance, you can now set up automatic payments to be made from your checking account. As far as the amount is concerned, you may elect to have a ?minimum due? or full payment withdrawn. This is an especially great feature for all of us who pay credit card bills late, and get slapped with a $29-$35 late fees. Call your bank today and ask whether it offers automatic payment service.
When should you turn a credit card offer down, and when should you accept?
For the new college student, it can be relatively easy to get a card. It will seem people are everywhere with offers. You will get offers in your mail box, and see VISA, MasterCard and Discover card tables at many school events. The solicitors at these tables will not only ask you to fill out quick and easy credit card applications, but they will also offer you free gifts and incentives just for doing so. The gifts are often yours to keep, even if you choose not to accept their credit card.
