SayEducate

How many credit cards do you carry? 1, 5, 10, maybe more? Most consumers carry at least one credit card, especialy when you include department store cards, gas station cards, American Express, MasterCard, VISA, Diners, Discover and others. Consumer lending is big business, an area of marketing that lenders use to fuel their businesses.

You probably already know that not all credit cards are alike. Some offer low rates and decent rewards while others charge higher than industry rates and offer no incentives. Likely, most of the cards you have seen fall somewhere in between.

Maybe you have considered getting a new card recently. If so, let’s take a look at some of the popular credit card offers available today:

Low (or Zero) Percentage Rate Credit Cards — Lending rates remain low and there are still credit cards available with low rates, even 0% financing for balance transfers. Typically, these special rates are in place until the transfers are paid off; new purchases are usually charged at a higher rate.

Teaser Rate Credit Cards — To get you to use a new card, some lenders will offer you a special “teaser rate” that will run for several months, usually for as long as six months perhaps for a year. Purchases can be made at a very low rate (let’s say 3.9% for twelve months) and then rise to 15.9% or higher later on. These cards are popular with consumers who want to purchase an expensive item and pay it off over several months without incurring high interest charges.

Rebate Credit Cards — Make your credit card work for you! If this sounds like a marketing ploy, it isn’t: certain credit card providers will give you cash rebates on select purchases. For example,if you spend $2000 you could have $20 or $40 credited to your account — see each offer for specific details.

Award Credit Cards — Also known as rewards cards, an award card works like a rebate credit card: you get to choose prizes based on the number of points you have accumulated with your purchases. Usually, one point is awarded for every dollar spent and you can redeem those points online or through a prize catalog provided by the credit card company.

Pre-paid Credit Cards — For the consumer with bad credit or for students who at college, a pre-paid credit card allows holders to build up their credit while still having access to plastic. You don’t have to worry about carrying around a lot of money; if your car is lost or stolen you can replace it.

Many of the card deals mentioned are for MasterCard or VISA cards, but Discover and American Express have special offers which might be of interest to you too.

Are you feeling financially pinched? Are you getting sticker shock every time that you grocery shop? You’re not alone! Higher fuel prices and a flat economy are conspiring together to make many consumers feel ill at ease. Thankfully, there are some steps you can take to manage your finances during these slow times. Let’s take a look at some money saving tips to help you keep more of your money.

Shop Elsewhere — It could be time for you to ditch your favorite grocer or at least take the bulk of your shopping elsewhere. Speaking of bulk, warehouse stores such as BJs and Costco sell just about everything in larger quantities saving you 10-30% on your weekly shopping bill.

Eat Out Less — Mostly everyone enjoys eating out on a regular basis. You don’t have to stop this practice completely, but if you are in the habit of dining out two or more nights per week, then cut back to one night and pocket the savings.

Work From Home, Carpool, or Public Transportation — Will gasoline well above $3 per gallon and the average commute taking a half hour or longer, the hit your pocketbook takes every time you start up your car quickly adds up. You may not be able to convince your boss to allow you to work from home, but you could show her that once a week makes sense. Otherwise, carpool to work or consider public transportation.

Stop The Plastic – Using credit cards can be an expensive habit. Using them and keeping monthly balances will cost you plenty. That 25% discount you got when you bought your new wardrobe at Macy’s disappears if you don’t pay off your credit card balance immediately.

Cut Out The Excess — If you have cable television, do you need HBO or cinema options? Dump what you don’t use and save $10- $15 monthly. For your phone bill, combine your phone, long and local calling, cable, and internet access to one service provider — save $30 to $50 monthly. Cancel whatever magazine or newspaper subscriptions you do not need, buy your lattes from McDonald’s instead of Starbucks, and use coupons when food shopping.

Pay Off Your Debts — Wherever possible, pay off a car loan, a credit card, or other debt to free yourself of a financial burden. Use the savings to stay ahead of rising costs and always shop around before making any major purchase.

Saving money comes simply if you are determined to find ways to curtail your spending. Saving a little bit here and a little bit there will add up, keeping you ahead of the game and removing much stress from your life.

See Also: Debt Reduction Tips

Short term interest rates have dropped by 2.5% since last Fall thanks mostly to the Federal Reserve Bank pushing its discount rate down to some of its lowest numbers in history. Although at 3.25% the discount rate is above the all time low of 1.00% reached in 2004, the result should be much lower consumer rates across the board.

Except when it comes to credit cards.

Curiously to many consumers, credit card rates haven’t dropped as fast as some would have hoped. Instead, some cardholders have been rudely awakened and are now paying rates that are higher than ever before.

Credit Card Rates Increase

Bankrate.com, one website that tracks this sort of information has said that credit card interest rates have decreased by about 1.4% since last October. On the other hand, some issuers have hiked up their rates to the chagrin of cardholders.

Reasons For The Uptick

There are several reasons why consumers are paying more for their credit cards when they should be paying less including:

• Some cardholders had promotional or introductory rates. When the promotional period ended, the new higher rate kicked in.

• Banks are worried about their mortgage losses and see credit cards as one way to bring in money. If you don’t carry monthly balances, then credit card interest rate changes have no impact on you.

• You were late…with something. You’ve been paying your credit card statements on time, but you’ve been late with a utility bill, car payment, or some other consumer invoice. Guess what? Creditors share this information with each other. Your credit card company is looking for any excuse to jack up your rate and they found one.

If you are dissatisfied with your credit card, call the issuer and ask for a lower rate. If you do not receive a lower rate, consider shopping around for a new card.

Time To Switch Credit Cards?

If your credit is good or excellent, then getting a new card shouldn’t be difficult for you. However, if your credit is fair or poor, then a new credit card can cost you more in interest rates and other fees. In this case it would be better to simply not use your current card(s), and work diligently to pay off your debt.

Resources

Manage Credit Card Use

Smart Money Tips

Time for a New Card