13 Jan
Posted by Admin as Credit Cards
This article is part of a series on credit card debt reduction strategies. Visit the links at the end of this article to read about other debt reduction strategies to find one that’s right for you.
Nobody wants to be in credit card debt, but sometimes digging your way out from under a mountain of debt can be discouraging. No matter how much money you pay, it feels like taking two steps forward and one step back when you see new interest charges counteracting your payments. There is a debt reduction strategy that can help you minimise those interest payments though. Today let’s talk about the strategy of eliminating credit card debt by paying off your highest interest credit card first.
Your income may become a more important factor in determining whether you’ll be approved for a credit card, according to a post in the WSJ.
The paper said beginning in February, credit card companies will be required (Credit Card Bill of Rights) to consider an applicant’s income or assets/current debt before extending credit to ensure consumers have the ability to repay.
In preparing for the change, the credit bureaus have already gotten in on the income estimation business, with Experian reportedly nailing down income to the nearest thousand.
They came up with their estimates by matching credit reports with wages, interest, and investment income, along with total credit lines and related payments.
These income estimates will help credit card issuers approve or decline applicants, and may also be utilized to increase or decrease an existing credit line.
In the past, credit card issuers simply asked consumers to enter their gross annual income in a box on the application form, but soon you could be required to provide pay stubs, tax returns, or be asked to fill out a form 4506, which allows the IRS to release your tax filings to lenders (so no fudging the numbers).
What the changes really communicate is that credit scoring has proven to be unreliable, at least as a standalone determinant of capacity to repay debts.
Of course, the income estimates are just ballpark figures when it comes down it, which is why the credit bureaus’ contracts prohibit card issuers from turning down customers based solely on the information.
See: why credit card regulations are worthless.
How would you like a credit card with a generous credit limit, reasonable annual fee, low interest rate, special balance transfer rate offer, and plenty of perks to top it off? If that sounds like the card for you, check out the Citibank Clear Platinum credit card. Unlike many platinum credit cards, you don’t have to build a huge rewards point balance to get savings with this card. You’ll get access to discounts on things you really want right away, just for being a cardholder!
Discover more about the Citibank Clear Platinum credit card below and apply online today if you find their offer appealing.
11 Jan
Posted by Admin as Credit Cards
Credit card debt is one of the many foes consumers may face as they deal with budgeting and saving money, though a recent report shows that their debt fell in November.
According to the Federal Reserve System, the total amount of consumer credit fell at an annual rate of 8.5 percent in November, which translates to a total of $17.5 billion. That furthers a trend that has seen total consumer credit dropping since the fourth quarter of 2008.
Both revolving and nonrevolving credit decreased during the month, though the former made the more significant decline in percentage. Read more…
10 Jan
Posted by Admin as Credit Cards
Balance transfer credit cards are cards intended to permit cardholders to transfer debts from one credit card with higher interest rates, transferring to another credit card with lower interest rates. The purpose is to avoid extra financial charges, while saving on interest charges. The balance transfers to cards with lower introductory rates, not only saves on interest during the introductory trial, it will save hundreds, or possibly thousands annually on interest charges.
Balance Transfer Credit Cards, Balance Transfers
While considering balance transfer credit cards you must consider and understand that the expiration dates on balances that are transferred.