Let us create a 3d Digital eBook for you! DigyCat.com
|
||
|
||
|
Credit Information | Let us create a 3d Digital eBook for you! DigyCat.com |
|
|
|
It Is In Your Best Interest To Do The Math On Your Credit Card Interest
If you begin foaming at the mouth once a month when you receive your credit card statement, join the millions of Americans that are foaming along with you. There is a growing outrage at the seemingly endless journey towards eliminating the balance on your credit card and that is due primarily to the extravagant interest rates charged by credit card companies. Your bank is probably touting the super rates it offers on Certificates of Deposit or CDs. "Just deposit $5,000 for 6 months and we'll give you a 'whopping" return of 2.83%." Yet, in contradiction to the low rates banks are willing to pay you for the use of their money, the interest on credit card rates can be 10 times the amount offered on a CD. Why? The interest rates on savings accounts and CDs are based on competition, the cost to the bank of borrowing money and the expected return on investment to the bank for the use of your money. Because a savings account is liquid, the bank does not know from day to day how much of your money will be available for its use. A CD, on the other hand, requires that you place your money in the bank for a specific amount of time. The longer the time period, the higher the return. That is because the bank has greater flexibility with your money and knows exactly how long they have to work with it. Credit card companies have been highly successful at convincing government regulators that they need higher interest rates to protect themselves. As opposed to a mortgage loan or home equity loan, credit card companies claim that they do not have any collateral to "secure the loan" they provide to consumers that use their credit cards. If a customer defaults or files for bankruptcy, a credit card company had little recourse to recover the balance due on a credit card account. But a recently passed law now makes it much harder for individuals to eliminate all of their credit card debt by filing personal bankruptcy. Many think this is an unfair advantage for the highly profitable credit card companies. These companies can be their own worst enemy. Every day consumers throughout the country receive an avalanche of credit card offers that make promises of low interest and high spending limits. Many of the recipients are already strung out with other debts but the credit companies still offer and then provide these high-risk individuals with the desired credit. Talk about using gasoline to try and extinguish a fire. The practice of paying with plastic can be seductive and addictive and the credit card companies are well aware of it. It is obvious that these companies are doing quite well. They use loopholes to gradually increase interest rates and capitalize on the deceptive "minimum monthly payment" scheme to string consumers along. If you have an ounce of wisdom, you will pay close attention to the credit card offers you receive and the progress of your interest rates as you go month-to-month. It is a quite simple matter to let things get out of control and find yourself at the mercy of Visa and MasterCard. Terry McDermott is the administrator of a variety of specialized websites. Two of these websites are focused on financial issues. They are Investing and Finance Central at http://www.investing-and-finance.com and Advantage Payday Loans at http://www.advantagepaydayloans.com
MORE RESOURCES: Credit - Google News Earnings Preview: Credit Suisse to post Q4 results - CBS News
Wilson to Lead Plumas Bank's Credit Administration - MarketWatch (press release)
China Credit Cards, Danish Loans, Mortgage Deal: Compliance - BusinessWeek
Don't overlook a federal tax credit - Delmarva Now
Give your card some credit - Telegraph.co.uk
UCLA study gives qualified support to film tax credit program - Los Angeles Times
CREDIT MARKETS: Corporate Borrowers Flood Market - Wall Street Journal
Russia, China lose credit in Arab world: League chief - Reuters
|
 |
|
|
RELATED ARTICLES
Low Interest Credit Cards: A Thing of the Past? With interest rates rising, low or zero percent credit cards may soon become a thing of the past. However, the wise shopper can still secure a low rate by carefully shopping around. 10 Step Credit Repair Guide The process of clearing credit can be laborious and frustrating, but your efforts will be paid for in better financing. Your rights are protected by laws, but you need to take reasonable actions toward your goal of clearing credit discrepancies. Bankruptcy vs. Credit Counseling: What Should I Do? Credit Counseling and bankruptcy are both ways to relieve the stress of debt. However, they are very different and it is important to understand both before making a decision as to which is best for you. Credit Counseling: Could it Work for Me? In the face of financial hardship, many seeking a responsible solution turn to credit counseling. Credit counseling is, all too often, the last stop before bankruptcy. Your Credit Card May Be Costing More Than You Think! Do you know what your credit card is truly costing you? Manypeople assume that they do, but aren't familiar with thehidden fees that many credit card companies are charging. Infact, if you don't keep close tabs on your credit card, youmay end up paying hundreds of extra dollars per year-withoutever really knowing it!And if you're trying to budget your money, those hidden feescan add up!Let's take a look at some of the most common credit cardfees, and then talk about how you can avoid them. Different Types of Credit Cards and Features - Part 1 Just as there are too many credit card companies to count, there seems to be just as many different credit cards, all claiming to offer you the best possible deal. Since no two people are alike, not all programs and incentives will work the same for everyone. Saving Money with Credit Cards Having a credit card is a wonderful convenience for those times when you don't have immediate access to your cash. It can allow you to purchase something on time for which you can pay later, thereby giving you the ability to afford something NOW that you'd have had to save for later. Choosing A New Credit Card 1. Choosing A new credit cardThere are many reasons for choosing a new credit card. New Credit Advice: Dont Pay off Those Credit Cards! Credit needed for real estate mortgage financing differs from credit needed for consumer loans. If you need help getting a home mortgage, these credit tips will help you. The Hitchhiker's Guide To Insanity A new sickness is plaguing the UK called Denial. Denial has resulted in a national personal debt of almost £1. Ways to Look Good without Selling Your Soul to the Credit Card Sharks 1. Buy clothes at thrift stores. Top 7 Factors to Consider While Reviewing Credit Card Offers Credit cards have migrated from being hip or convenience product into a must have entity for everybody. Shopping Online you need a credit card. Two Things You Need To Know About Prepaid Debit Cards According to the September 2004 issue of the Nilson Report, around $588 billion dollars worth of debit cards were bought in the United States in 2003. By 2008 that volume is expected to grow to $1. Top 5 Reasons To Check Your Credit Report Regularly #1 Make sure mistakes aren't hurting your credit.Reviewing your credit report can help you avoid costly errors. Finding and Applying for the Right Credit Card Offer Online Anywhere you go online nowadays, you will see a multitude of ads for credit cards. Some offer low interest rate for an introductory period, or bonus frequent flyer miles while others offer real discounts on new vehicles and equipment. The Truth About Credit What you might not know about credit.Some people don't know about a loop hole in the credit reporting system. Automobile Credit Report When applying for a loan to purchase a car, the lender will want to take a look at a person's auto credit report. Credit reports tell lenders all they need to know about granting a loan to all applicants. Give Yourself Credit The Beginning of the Credit Card EraIn 1951, Diners Club issued the first credit card to 200 customers who could use it at 27 restaurants in New York City. From that modest beginning, credit cards have become an indispensable part of modern life. Credit Scores and Loan Applications Keep Your Credit History Clean - Remove A Negative Credit Record From Your Credit ReportIt can make a difference of up to 18% in loan repayment costs.For example, on a 30-year, $150,000 fixed rate mortgage, a borrower with the best credit score, 760-850, will pay 5. A Summary of the Fair Credit Reporting Act This summary of the Fair Credit Reporting Act will explain what you can legally do if you want to repair your own credit report. No matter what you hear, you can dispute credit information on your credit report if you understand the legal rights you have under this law.
|
|
Looking For Royalty Free Photos for your Website, Business or Advertising?
YourFree.biz Domain Is For Sale - $5,000 For Enquiries eMail Us © www.YourFree.biz 2011 |
|
