Posted on 29 April 2011
Tags: account, account agreement, account balance, amount of money, annual percentage, annual percentage rate, APR, average daily balance, balance calculating methods, balance transfer, balances, billing cycle, billing statement, card, card issuers, Comparison, contract, credit card, credit card companies, credit card interest rate, credit card interest rates, credit card issuer, Credit Cards, creditor, creditors, cycle of your statement, Daily Periodic Rate, default, default APR, difference, division, financial services, full freedom, guarantee, higher interest rate, higher interest rates, index, interest, interest charges, interest r, interest rate, Interest Rates, Introductory APR, issuer, late payment, late payments, low promotional rates, lower APR, lower interest, Lower Interest Rate, lower interest rates, method, minimum payments, non-variable APRs, original point, penalty, percentage, Prime Rate, Promotional APRs, relationship, spending, terms of annual rate, the United States, time period, total cost of your credit, transactions, Understanding, united state, united states, Variable, variable apr
APR or Annual Percentage Rate determines the total cost of your credit in terms of annual rate. You should carefully understand the APR and different facts related to it.
Different APRs on Various Transactions
Usually creditors allow users to use their credit cards with full freedom by giving them introductory APRs on various transactions. Promotional APRs mean that you have a lower APR on various kinds of transactions for a particular time period. The APR returns to the original point after the end of promotional period. Users can save a great amount of money by using these low promotional rates.
What to Avoid?
You should avoid penalty or default APR. These are usually the higher APRs that are imposed on the late payments. The detail of penalty APRs is within the account agreement.
Fair Comparison of Variable & Fixed APRs
You have different APRs among which some are variable or some may be non-variable. Let’s have a look on the difference between variable and non-variable APRs.
Generally, variable APRs are calculated by the addition of a margin that can be determined by the credit card issuer to the index (also called as reference rate) like the United States Prime Rate. There is a direct relationship of variable APR and the Prime Rate i.e. when the prime rate rises, variable APR rises, however, it is dependable on your issuer that when they update your rates. Your account contract contains information about variable APRs change.
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Posted on 22 April 2011
Tags: American banks, American Express, annual fee, Bank of America, Black Centurion Card, Business, card holder, card issuer, cardholder, cardholder agreement, cash, cash back bonus, credit card, credit card industry, credit card surcharge, credit card transactions, Credit Cards, credit-card issuers, Diners Club, Discover Card, e 85, existence, Expiry Date Of Credit Card, financial services, financial venture, interesting facts, issuer, Merchant, minimum payment, Modern Credit Card, most expensive credit card, New York City, sears, transaction, unpaid debt, Visa Card
The first “Modern Credit Card” that can be used for paying parties other than the card issuer was started in 1950. It was issued by Diners Club in New York City. Initially they were issued to about two hundred people, most of them known to the owner. These were used mainly at the restaurants and were accepted at 14 places initially.
Since then there have been many developments in the credit card industry. Here is a choice of 10 interesting facts about credit cards.
1. Most Expensive Credit Card
Black Centurion Card offered by American Express is the most expensive credit card at the moment. It has an annual fee of $2,500 and requires the cardholder to spend at least $250,000 a year through credit card transactions. In some countries it also requires a
one-time joining fee.
2. How Visa Card Came Into Existence
In 1958 a credit card was issued by Bank of America. In 1970 the other American banks also joined and its control was handed over to a joint financial venture. In 1976 the name Visa was given to this operation.
3. Cash Back Bonus
Sears introduced its Discover Card in 1985. It was a big hit not only because it did not charge any annual fee, but it also actually offered an up to 5% Cash Back Bonus.
4. Is Low Minimum Payment Good For You?
The answer is a big NO, because that means more of the unpaid debt, which ultimately means more INTEREST.
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Posted on 16 January 2011
Tags: accountability, annual fee, Authority of Card Issuer, Banks, card holder, card issuer, check credit card, companies, credit, credit card, Credit Card Accountability, Credit CARD Act of 2009, credit card facility, Credit Card Mails, credit card management, Credit Card Managing, credit history, credit issuer, credit limit, Credit Score, credit unions, disclosure act, Free Services, good credit score, holiday purchases, Inactive Accounts, interest, issuer, Issuing bank, long time, maintaining good credit, managing credit, Money, negative image, online services, outstanding balances, rate of interest, reward points, reward programs, score one
There are certain rules for both the issuer and holder of credit card. These rules are applied in 2010 and are followed very strictly by the lending companies as well as by the card holders. The basic rule for the issuer of credit card is that it can not change the rate of interest and fees structure. All transactions will be done under signed agreement.
Authority of Card Issuer
Those companies who are providing credit card facility can apply changes to the account of the card holder according to the signed agreement. Issuer can change the rate of interest if your credit score drops. This happens because of the card holder’s change in behavior of transactions. If you minimize the usage of your card, it will decrease your credit score. Credit issuer can also close your account after a short notice.
Maintaining Good Credit Score
One can maintain a very good credit score by following the terms and conditions and by paying the borrowed amount in time. Do not close your account unnecessarily.
Tips for Managing Credit Card in 2010
Following are some tips that will help you to manage your credit card in 2010;
1. Pay off Holiday Purchases in Time
Try to avoid outstanding balances for a long time. These balances creates negative image of your account. Try to save more money in your account and make your credit score good. According to the Credit Card Accountability, Responsibility and Disclosure Act, or CARD Act, card issuer has the rite to charge interest on the outstanding balances of your account. So of the balance is more, you will be paying more interest.Try your best to maintain a very low out standing balance to avoid extra payment as interest. Also focus on your credit limit. Never cross your limit to maintain a good credit score.
2. Check Credit Card Mails
According to the CARD Act, it is the duty of the card issuer to inform the card holder about the changes and credit score of the account.
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Posted on 24 December 2008
Tags: AT&T, call feature, debt security, energy, Equity security, Government Backed, Government Guaranteed, Interest/principal, investment, investment banking, issuer, mutual funds, options, professional adviser, rist, stock market, Stock Markets, U.S. government, united states
I spent last few days learning about mutual funds investments. I can sum up here what I have learned from different sources about the basics of these kind of investments. Mutual Funds are far better than investing in individual stocks. You should chose the later kind of investment only if you have time, energy and required level of understanding of stock markets and the underlying fundamentals.
What is a Mutual Fund?
A mutual fund is a pool of investments used to buy a large portfolio of securities that will be managed by a professional adviser. When you buy a share in a mutual fund, you effectively buy a bit of each security held in the fund’s portfolio. Mutual funds are sometimes referred to as “investment companies.” These investment companies should not be confused with investment banking companies, which raise capital for corporations and municipalities. Mutual funds, on the other hand, are “investment companies” whose shares are sold to the public and which invest the proceeds of these sales in other public companies.
Risk
Mutual funds are not risk free investments. Even investing in mutual funds whose portfolios consist only of guaranteed U.S. government bonds contains an element of risk. Before you invest in a mutual fund, be sure you completely understand the risk. When you invest in a fund, the risk of total loss is lessened due to the diversity in the portfolio, but anyone who tells you that there is no risk involved in this investment is lying.
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