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.
Correcting Billing Errors
Federal law provides specific rules that the card issuer must follow for promptly correcting billing errors. The card issuer will give you a statement describing these rules when you open the credit card account and, after that, at least once a year. In fact, many card issuers print a summary of your rights on each bill they send you.
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.
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.
Using You Credit Card Card Abroad
taking your credit cards with you on your next overseas trip can make traveling easier. You dont have to carry as much cash or get foreign currency you may not use, and you have a record of all your purchases. Most major credit cards are accepted worldwide, and in many countries credit cards are widely accepted. If your credit cards are lost or stolen and used by a thief, you generally cannot be held responsible for more than $50 in fraudulent charges. That makes carrying credit cards safer than carrying a lot of cash. Some credit card companies will replace your cards (sometimes overnight) if they are lost or stolen while youre traveling another plus.
How can I find out what, if any, international surcharges credit card companies apply on top of the 1% exchange fee already charged by either MasterCard or Visa International charging or currency exchange in foreign countries?
Paying with a credit card is safer than carrying large sums of cash. If your credit card is stolen, you can stop charges on the account and get a new card. However, if your cash is stolen there is little you can do. Some credit cards offer valuable travel-related perks too. American Express offers its cardholders help finding an English-speaking doctor, an accident insurance policy and car rental insurance. Check with your credit card issuer about cardholder travel benefits they might have. When you use any credit card internationally you are charged a 1 percent fee by the credit card issuer (Visa or MasterCard). Most people are not aware of this fee. It is imposed at the currency exchange level as part of the transaction. You can find the current currency exchange rate at http://www.xe.com/ucc or by calling your bank. But in addition to this fee, some credit card companies have begun to charge an additional 2 to 5 percent fee for international credit card transactions. For example, American Express charges a 2 percent fee for international transactions with its card. Check with your credit card issuer to learn more about its fees before you make international charges.
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.
Do you know if secured deposits earn interest? If so, what is the range and what does it depend on?
some secured credit card offers do include interest on your initial deposit. In addition, some of these secured credit cards also allow you to add more money to this deposit in order to collect more interest. However, these features do not apply to all secured credit card deposits. Your card application and terms should state whether or not the secured card you are applying for has this feature. The amount of interest is usually comparable to the amount of interest you?d get with a savings account and varies with each card. The rate can also vary from month to month, so check with your credit issuer about the exact amount. While these secured credit cards may offer you interest accruing perks, these cards normally have annual fee requirements and higher interest rates on your balance owed. As a result, the interest you earn may not even cover the amount of interest and fees you owe back. Take the time to do the math on what a secured card will cost you and earn for you in reality. This could determine whether or not the secured credit card is a viable option for your financial future
What is the difference between an additional card and co-signer card?
An additional card is a card you get on your personal credit account with another person?s name on it. This means that the person now has access to your credit account as if it is their own account and can charge as much as they want without your permission beforehand. In addition, this person is not held accountable by your creditor for making any payment on the account. This responsibility falls on you, the account holder. As a result, no matter how much this person charges on your card, you have to pay for it?even if the person promises to pay you back and doesn?t. A cosigner card is a credit card someone applies for and gets a cosigner to sign on. Essentially, it is the applicant?s credit account, but if they stop making payments, the cosigner is then responsible for the account. The history of the account goes on both person?s credit reports. The cosigner will have to make special arrangements with the creditor before cosigning to get monthly statements on the account or reports of late payments. Otherwise, the cosigner will not have access to the account information. If you do cosign on an account, remember that you assume equal liability.
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.
