With the rising gas prices lately, it seems as if they are ever going to go down. It just seems like yesterday the prices were at two dollars a gallon. It seems like no matter how high they go, people tend to complain but sooner or later people tend to live with it. The true question now is, with all the gas prices going up, are people going to be able to afford this? If not, will this lead people to credit cards?

If you’ve been living under a rock, you’re probably well aware of the credit crisis that is going on today in America. People love to spend money they don’t have and when that credit card bill comes in the mail and they can’t afford, guess who suffers? That’s right, the credit card companies are.

Certain situations will lead to certain credit crisis and if a resource that we rely on daily tends to go up in price, people are going to have to buy regardless of how people get the money. Like food and gas, these are the general necessities we need in life. Even though there are ways around transportation like a taxi or mass transit, these gas prices are still passed down to the consumer hurting us all.

Like I mentioned in the previous paragraph, people will do anything to pay for their gas. If people don’t have the money in their savings, it’ll lead to them using their credit card. When the credit card bill arrives and they realize they can’t pay off the bill, this will start them down the road of debt. When people find out they are in debt, they do nothing to change it. Instead, people tend to live their comfortable lives and not do what it is important, get another job and find multiple incomes. I can’t stress enough how important it is to fix your debt before it gets too bad.

Gas prices are awful, how can I get around it?

The forecast doesn’t look bright when it comes to gas prices. In fact, the prices are just going to get worse. As you continue to make the same amount of money, the gas will continue to take a bigger bite out of your wallet. In order to avoid this, you can change your driving habits, join a car pool, or use your cities mass transportations system. There’s always a way around saving money regardless of if you need it. Just like groceries, you will need to eat but there are ways to eat cheaper like buying off brand items and being more creative with your dinners.

In the long run, don’t let the high gas prices hurt your credit; make sure that you watch your driving habits. If you don’t need to go somewhere, don’t go. It’s important that you keep track of your credit expenses. If you’re able to keep track of your expenses and pay your bills off on time, you won’t have to worry about your lowered credit score; instead you’ll be on the right path for a successful credit future.

Continue reading this post…

When you’re in the hunt for a new credit card, some people find that they have had great luck with other banks and card carriers. If you’re currently in the hunt for a secured credit card because of bad credit and/or you’re looking to re-establish credit, you’re probably unfamiliar with the banks that issue these types of cards.

A lot of banks generally shy away from the bad credit region because of the past of just because people don’t learn their lesson when they are looking to rebuild their credit leading this people once again to not pay their bills off in time hurting the credit card companies and the industry. So, the questions we look into today are what banks are offering secured credit cards and who would I recommend?

There are three banks that should come to mind when you start to think of bad credit and these banks love to specialize in this area because they love to help America and people with credit problems. Surprisingly, most people that have had bad credit in the past have learned their lesson and want to turn their lives around. Unfortunately, some people don’t learn this lesson and this is where the previous paragraph comes into place and this is one of the big reasons big banks shy away.

Three of the bigger banks that offer secured credit cards are Bank of America, New Millennium, and Orchard Bank. While some of these banks sound familiar, some may sound completely foreign to you. The reason why some banks are unfamiliar when it comes to credit cards is because they tend to specialize in the bad credit field. You can rest assure that these banks are legit and are willing to help when you’re in need.

Does a bank matter?

This question gets brought up a lot and it’s really up to the consumer. Take anything you buy in life and take a note at where you purchase that particular item from. Why do you purchase this item from that particular store? The same will go with a bank. If you’re unfamiliar with all of the banks offering a card, I would recommend that you either do a little research online or ask around to family and relatives and see what they have to say about the bank. Sometimes you’ll get great feedback and other times you’ll still be lost.

If you can’t find the right information about the particular bank you’re applying for, it’s always best to just compare the cards itself and see which one satisfies you the most. If you end up not liking the credit card, simply cancel it and apply for a new one but chances are you’ll like the bank because most banks when it comes to credit cards run the same. Unless you run into a rare occasion where you don’t like the customer service or how the card works, your experience with a secured card should work for you so that you can re-establish your credit history.

Continue reading this post…

If you’re a fan of credit cards like I am, I’m sure you’re aware that there are so many credit cards on the market. From saving on gas to saving on groceries at your local grocery store, you can really save a lot of money, that’s if you use your credit card properly. What a lot of people don’t realize is if they abuse their credit card spending, they won’t reap the rewards and it will just seem like an illusion.

In today’s society, credit cards are in just about everyone’s hand. People love to spend, spend, and spend some more every time of the day. The true question is, “Are cash back credit cards worth it and how can I reap the benefits?” If you’re an everyday spender like me, you probably spend your money everywhere and this is why a cash back credit card will come in handy.

The nice thing about a cash back card is that you’re able to spend it everywhere and you’ll benefit off of every purchase and not just a certain industry like gas and air travel. Now, when you decide that you want a cash back credit card, it’s important that you remember to pay off your credit card bill in time on time. If you know you’re not going to do this, you’re not going to get all of the benefits that come with the credit card.

Why is it important that you pay it off in full each month? It’s simple. Credit cards have to make their money somewhere and every time you don’t pay your bill off in full, they tack on the interest rate aka an APR rate. If you pay your bill off in full each month, the credit card companies won’t charge you that rate. What does this mean for you? It means that if you pay off the bill in full on time, it’s like you’re using cash but the companies are rewarding you for using their card.

Generally, with a cash back card, you’ll find that you’ll be able to save anywhere from a percent and on. With some cards, you’ll find that you’re able to save in particular areas compared to others. This doesn’t mean you won’t get rewards in every purchase, you will. Once again, it will all depend on the carrier you apply to and what kind of card you get. Remember that your credit history will play a big part when it comes to applying. The better your credit is, the better the rewards are going to be.

If you tend to spend your money everywhere and you’re responsible with a credit card, I would highly recommend a cash back card. It’s like getting a reward for using your card. As long as that bill is paid off in time, you’re going to get the maximum benefits. It’s a shame the credit card industry gets such a bad rap and it’s because of the people who spend carelessly and don’t know how to pay their bills off on time. As long as you’re not one of these people, I would go down this card route.

Continue reading this post…

There has been a recent move to force credit card companies to review and rewrite some of their more controversial practices. Right now, consumers are complaining that they are at the mercy of the industry’s whims. Interest rates change frequently and, sometimes, without any good reason. The companies argue that their own circumstances – with rates of default and delinquency the highest they’ve been in years – make such practices necessary. But customers and their advocates aren’t buying it. The credit card industry takes in billions of dollars each year, critics say, and can afford to treat their customers better.

Some of the practices under review include: universal default, too-short customer notice of changes to terms and conditions, and the retroactive application of new interest rates to a customer’s entire existing balance.

Universal default occurs when a customer’s credit score is lowered and their credit card company raises their interest rate as a result. There are many problems with this practice. For one, it’s too easy to implement. If a customer makes a late car payment, their credit card interest rate could suffer as a result. And higher interest rates make credit card payments higher, increasing the likelihood that the customer will default with many lenders instead of just the original one.

Credit card companies are also being asked to give more notice to customers when their rates are about to change. Right now, companies are only required to give a fourteen day notice by mail. Customers argue that, by the time they receive the mailed notices – if they receive them at all – they only have a few days to decide how to deal with the changes. If the new bill is passed, that notice period will be increased to nearly a month. Companies will also be required to send out bills 25 days in advance of their due dates, compared to the two-week cycle now in place.

The new bill could also change the way card companies handle punitive interest rates. Some companies will take the higher rate and retroactively apply it to the full amount of the customer’s balance. Customers feel that this is unfair; if they have been paying in a timely manner for years, why should they have high interest applied even to the debt that has been meticulously paid month after month? Companies are being asked to apply such rates only to the portion of the balance that caused the increase.

Continue reading this post…

Universal default – two words that should strike fear into the heart of any credit card holder. What is it? Why is it so terrible? And does your credit card participate in universal default?

Universal default is a clause in many credit card agreements which states that if the card holder defaults on payments – any payments – they can be subject to an increase in interest on their credit cards. And when we say that any payments can affect this, we mean any: utilities, car notes, mortgages, and other payments that have nothing whatsoever to do with your credit card account. This might not sound fair, but it’s the basis of universal default.

It makes sense, in a way. If you are late on payments, it can affect your credit score. And when your credit score is lowered, you become a less desirable customer for credit card companies. The agreement you signed was tailored to your credit score at the time. The same agreement might not be a safe bet for a customer with a worse score.

Still, it just feels shady and opportunistic, as if the companies are looking for any reason to raise your rates. That, too, makes good business sense, as the industry is facing high levels of default and delinquency. But it doesn’t do much to endear customers and earn their loyalty.

If your credit cards participate in universal default, you could have an unpleasant surprise any time something occurs which lowers your credit score. Imagine struggling through a difficult financial period, only to find that your cards’ interest rates have doubled or, in some cases, tripled. Critics of universal default point out the dangers of overcharging someone who is already in dire straits, causing them to risk default with all of their lenders.

There is also the fact that credit reports aren’t infallible. Creditors make mistakes, and identity theft can account for charges that you never authorized. If your credit card interest rate has increased because of errors on your report, you have the right to get your previous interest rate reinstated. Credit bureaus are also required to correct the problem and send you a free copy of the corrected report.

To protect yourself, take a hard, close look at the terms and conditions of all of your credit card agreements. Look for a clause that mentions universal default. If you’re still unsure, call the customer service number and speak to an agent. Ask them if they use universal default. If they do, go elsewhere to get a credit card. Credit cards are a business, and the companies will look after their own best interests. It’s only fair that you look after yours.

Congress itself has warned the credit card industry against what they deem an unfair and predatory practice, but only CitiBank has voluntarily removed their universal default provision. As Congress pushes for change, these provisions might start disappearing altogether – voluntarily or not.

Continue reading this post…