Do I Need a Credit Card? 0 comment

No doubt, this is a personal question for each consumer to answer. In general though, most consumers would respond to this question with a resounding "yes." However, if you ask the follow-up question why, you are likely to get different answers from different people. This is because consumers need credit cards for different reasons.

Here are some of those reasons. You may need a credit card if:

You want to build or rebuild your credit. The use of cards provides an excellent way for you to establish substantial payment history especially if you are young. Such history is increasingly essential for everyday transactions. For example, you need it to buy a new car, home, computer, flat TV or an insurance policy. In fact, some employers now consider payment history as a requirement for employment.

You feel unsafe carrying cash in your wallet. In certain situations, it is unsafe to carry a large sum of money in your wallet or pause during the day or night. In such case, you need a credit card for your own safety. You may also need it because it offers security for your money in ways that cash does not. For instance, if it is stolen, you can prevent or limit potential financial loss by calling the issuer immediately and requesting for cancellation. You are unlikely to have the same level of success if you were to lose a comparable amount in cash.

You want some financial protection against emergency. No one can plan for everything in life. Emergencies can and do happen, and you may need a card if you experience an emergency like illness, car breakdown, or storm damage to your home.

You want convenience and flexibility in your financial life. We all value convenience in our lives and that is what cards offer consumers. They are easy to carry and universally accepted by businesses. Consumers can use them to pay for anything, anytime and anywhere in the world.

Nevertheless, there are some risks associated with these benefits. They include overspending, excessive personal debt, stressful family life, etc. The good news is that you can overcome these risks by being prudent and cautious in your spending habit. Exercise reasonable discipline and use them only when you have to.

Before you sign the dotted line, ask yourself this question again: Do I need a credit card? If you want convenience and flexibility in your financial life, protection against emergency, or feel unsafe carrying cash in your wallet, you probably need one. Remember, however, to use it wisely and with a reasonable degree of discipline.

Credit Cards For Small Business Value 0 comment

The real interesting thing about people who are in business is that they always feel that they need a credit card to prove that their business has real value. The reasoning behind that is it is very hard in this day and age to get credit for needed products to maintain your business unless you have a good line of credit. The business card provides your business the credit score you need in order to get a line of credit from all your providers. There are many cases where in small business the owners use their credit to enable them to buy all the supplies that they need in order to operate.

That is one of the main reasons companies like American Express became so popular in the early sixties since they cater to small business owners. You need to be made aware that American Express is not the only company that caters to business owners. Now there are a variety of card companies that offer a credit card just for the owner.

You are now capable of getting credit with all the major companies like Visa, American Express, MasterCard and Discovery as a small business owner. You are also able to get credit from your suppliers by just using a line of credit they offer you directly but with the logo from the major credit card companies. The reason is that many suppliers now use these companies to extend credit and this in turn can help your business grow further.

Which Credit Card Do I Need? 0 comment

n order to determine which credit card you need, you must first decide what you intend to use it for. Then decide what credit card features best serve those purposes. Of course, your payment history ultimately determines which credit cards you can apply for.

Use these categories as a guide.

Good/excellent payment history and zero account balance: If you intend to pay off your balance each month, you don't need a low-APR offer because your account will not be subject to interest charge. What you should look for is an offer with low annual fee (or no annual fee) and longer grace period. You may also be interested in offers with rewards programs and low fees like late payment fee, cash advance fee, etc. One of the best offers in this category is the American Express Preferred Rewards Gold Card. This offer has an annual fee but it is waived for the first year and cardholders receive 10,000 bonus points after their first purchase plus tons of additional bonuses and services.

Good payment history but will carry a balance: In this case, you definitely need to consider low-interest offers among other features. One of those offers to consider is Citi Platinum Select MasterCard. It has a low interest rate for purchases and balance transfers, no annual fee, and an attractive 0% introductory rate on purchases and balance transfers for up to twelve months. It also provides other benefits including auto rental insurance, fraud protection services, etc.

Good payment history and wants cash-back Rewards: Cash-Back offers reward you with cash back incentives and rebate programs for purchases you make. However, you may end up paying higher interest and other fees. Cash back reward programs offer a solid value to those who pay off their balances every month and don't require a low interest rate. Discover Motiva(SM) Card provides such value. Cardholders earn a 5% to 20% Cashback Bonus at top retailers through Discover's exclusive online shopping site and up to a 1% Cashback Bonus on all other purchases. No yearly limit on bonus as long as the account is active within 36 months.

No credit/bad credit: If you are in this category, your best bet may be a secured/prepaid card, which requires cash deposit held in a separate account as collateral. Based on your payment history, the collateral requirement may be removed by the card issuer. Ultra VX Visa Card is one of the few in this category that offers a rewards program. Cardholders receive one point per dollar spent on purchases, which they can redeem for travel rewards with Southwest Airlines, American Airlines, jetBlue, Marriott, and more.

Student with limited payment history: This category is designed for students to help them build substantial payment history by the time they graduate. Many offers in this category include rewards programs for students. For example, Citi® mtvU™ Platinum Select® Visa® Card for College Students offers a unique rewards program, which allows students to earn 5 points per dollar they spend at restaurants, bookstores, record stores, and movie theaters as well as earn up to 2,000 points twice a year based on the cardholder's GPA.

So, which credit card do you need? The answer depends on what you intend to use it for, what credit card features you want and your payment history. Once you have made your decision on these key factors, choosing the card that meets your needs becomes very easy.

Benefits of Balance Transfer Credit Cards 0 comment

Transferring the balance of your cards to one card can be really beneficial. How so? Say, you have 5 credit cards and all of them have accrued some points which cannot be redeemed because of the less point's accumulation. So, when you transfer your balance payments to a single card, the points will also be transferred and hence you will get the benefit of a number of points which can be redeemed with it.

It's just like accumulating all your inter - spread cash in small - small amounts and putting them to purchase a costly thing like a car or a set of jewelery. In this way, you not only organize your money in a better way but also are also able to utilize you money in a proper way without the worry of losing it.

Credit cards are just another way of saving money if used properly. So, when it comes to Credit card balance, the same should be kept in mind. These should not be kept as safely as possible but also used as cautiously as they can be, because credit when piled up becomes a burden on the shoulders as well as pockets.

Transferring the balance has one big advantage. The small amounts which are left behind in each card incur huge amount of interest rate which is often much more than the amount left. So, to avoid this burden of interest rate, its better to put it in one credit card and make the payments. This will not only increase your credibility in the credit market but also will give a clean image of yours with the credit bureau.

Take a credit card from a good reputed bank like Kotak Bank and enjoy the benefits of balance transfer with these banks. With 0% balance transfer and continued interest free period on fresh retail purchases, balance transfer to this banks credit card is not a bad idea. Moreover, the balance transfer process is also easy. Just call the banks customer care and get your balances transferred in a matter of minutes. As easy as that!