There are lots of credit card companies offering % interest rates. Zero percent cards are very lucrative nowadays and people think it as a very good deal. It is, indeed. But you should take time to think things over and know everything about the offer before signing up the contract.
Never forget to weigh things before making a decision because if you will choose in a hurry, you might get yourself in a whole lot of trouble in the end. Ask around or do research from the internet to find the right card.
Consider some of the aspects you should keep in mind prior to getting the opportunity to geta zero-interest credit card? Your credit card contract includes information about penalty charges, changes in your interest rates, your eligibility to enjoy the % interest, the "universal default" clause, and other specific conditions.
In this article, allow us to talk about the probable risks which you may come across once you have % interest credit card. Realizing these things provides you with a better idea on the best way to use credit cards to your benefit.
The "universal default" clause. What is universal default? It is a exercise in the financial services industry where a specific loan provider can change the terms of a loan in case the credit card holder misses a payment or does not pay timely. It is wise to take note if your credit card agreement has this clause because even a single late payment move your issuer to vary your interest rates with no notice.
Penalty for unused credit account. To continue enjoying the 0% interest rate for the balances you transferred and to prevent your account from closing, you may be required to use your 0% APR credit card to make new purchases. Take note that some 0% balance transfer cards impose a very high interest rates on purchases. But If you are not going to use your credit card for purchasing, you may be penalized and even get disqualified from enjoying the 0% APR on your balance transfers.
Changes of interest rates. It is best if you would ask the issuer or representative of the credit company these questions: - How long will be the introductory period lasts? - If the introductory period ends, how much will the interest rate be?
You should be well aware of these things because if not, you might end up with an even higher interest rate card than your previous one. Furthermore, watch out for possible changes in your interest rate once you missed a payment or failed to pay on time.
Penalty fees. A credit card holder is charged with penalty fees when he/she misses or fails to pay on time. Therefore, it is important to make sure that you have the capability of making payments on time to avoid penalties. See to it that you have a regular source of income to pay off your credit card balances. You can enjoy the perks of having a credit by being responsible in repayment obligations.
Author Resource:- New Horizon Business Services, Inc NHBS, Inc has been providing consumers and business owners with financing since 1989. Join our mailing list for Free Tips on Rebuilding and Repairing Credit. Click here for the list of credit cards for bad credit
Article From Article Intelligence
Thursday, May 20, 2010
Sunday, May 2, 2010
A Guide to Reading Your Credit Report
All consumers are being advised by the FTC to become aware of their credit reports to avoid identity theft and credit card fraud. The first step is to order a copy of your credit report from three credit report bureaus (Experian, Equifax and TransUnion).
In this post, let's discuss the key points on reading your credit report and the steps that you can do to fix possible errors.
What Your Credit Report Contains
The consumer credit report is categorized in four segments- your personal identity, payment history, public records and inquiries. When you receive a copy of your credit file, carefully review the details of your information. Consider these warning signs that of a possible fraud or identity theft.
Inquiries from creditors you did not apply to. Do you see credit report inquiries from loan companies or credit card issuers that you never send an application to? If yes, someone else might be trying to open an account using your identity. Call up each company to clarify these inquiries.
Change of your home address or employment address. Sometimes, there may be a misspelled word or missing digit in your residential or mailing address. You should ask such typographical errors to be corrected immediately.
Nevertheless, if your residential or mailing address has been changed without your knowledge, someone may have called up your bank or creditor and made the request using your identity. Identity thieves do this to keep the real account holder from receiving bills or mails from creditors. This way, the consumer will not be alerted about their illegal transactions.
Strange activities in your old accounts. Do you notice charges in your old accounts that you rarely use? If yes, someone else may be making those charges under your name. Call up the creditor involved right away to ask about those unfamiliar transactions.
Strange remarks in your public records section. This should remain entry unless you've had tax liens, foreclosure, bankruptcy or any court judgments in the last seven years. If there is a remark that should not be there, you must notify the credit bureau that issued your report immediately.
Past due charges. Are there charges in your credit card account that is not at all familiar to you? If you've been paying your credit card bills on time, someone may be making those purchases illegally. Write a dispute letter and send it both to the creditor involved and the credit reporting bureau. Enclose copies of documents that support your claim and wait for at least 10 days to get a response from your creditor and the credit reporting agency. If 10 days have passed and you haven't received any reply, it is now time to send a follow-up dispute letter.
As soon as the credit reporting agency have received your letter, their next step is to conduct an investigation regarding your complaint. It can take up to 30 days for the investigation to complete. Afterwards, the credit agency must send you a letter informing the result of the investigation along with the updated copy of your free credit report.
Author Resource:- For people who want to learn how to repair their own credit, Suzy Vanstrusen, a credit analyst and a writer of EzCreditRepairSolutions.com, has been providing consumers with tips and tricks in repairing your credit. Check the site for more free credit repair and credit report score.
In this post, let's discuss the key points on reading your credit report and the steps that you can do to fix possible errors.
What Your Credit Report Contains
The consumer credit report is categorized in four segments- your personal identity, payment history, public records and inquiries. When you receive a copy of your credit file, carefully review the details of your information. Consider these warning signs that of a possible fraud or identity theft.
Inquiries from creditors you did not apply to. Do you see credit report inquiries from loan companies or credit card issuers that you never send an application to? If yes, someone else might be trying to open an account using your identity. Call up each company to clarify these inquiries.
Change of your home address or employment address. Sometimes, there may be a misspelled word or missing digit in your residential or mailing address. You should ask such typographical errors to be corrected immediately.
Nevertheless, if your residential or mailing address has been changed without your knowledge, someone may have called up your bank or creditor and made the request using your identity. Identity thieves do this to keep the real account holder from receiving bills or mails from creditors. This way, the consumer will not be alerted about their illegal transactions.
Strange activities in your old accounts. Do you notice charges in your old accounts that you rarely use? If yes, someone else may be making those charges under your name. Call up the creditor involved right away to ask about those unfamiliar transactions.
Strange remarks in your public records section. This should remain entry unless you've had tax liens, foreclosure, bankruptcy or any court judgments in the last seven years. If there is a remark that should not be there, you must notify the credit bureau that issued your report immediately.
Past due charges. Are there charges in your credit card account that is not at all familiar to you? If you've been paying your credit card bills on time, someone may be making those purchases illegally. Write a dispute letter and send it both to the creditor involved and the credit reporting bureau. Enclose copies of documents that support your claim and wait for at least 10 days to get a response from your creditor and the credit reporting agency. If 10 days have passed and you haven't received any reply, it is now time to send a follow-up dispute letter.
As soon as the credit reporting agency have received your letter, their next step is to conduct an investigation regarding your complaint. It can take up to 30 days for the investigation to complete. Afterwards, the credit agency must send you a letter informing the result of the investigation along with the updated copy of your free credit report.
Author Resource:- For people who want to learn how to repair their own credit, Suzy Vanstrusen, a credit analyst and a writer of EzCreditRepairSolutions.com, has been providing consumers with tips and tricks in repairing your credit. Check the site for more free credit repair and credit report score.
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