It makes sense to apply a balance transfer card even if you owe lesser than $1,000 in credit card debt. Some people find it difficult to pay off their debt because their income is not enough to cover up the credit card bill. If you have a good credit score, you should consider applying a balance transfer card as you can easily qualify for a card that offers a long introduction period. The zero percent intro period can last for as short as 3 months and as long as 21 months. It is important that you know how long the intro period will last as many credit card companies do not send reminder at the end of the intro period. You must read the fine print to find out the time limit for the validity of the zero percent interest rate.
Getting a balance transfer card can relieve you from your burden of having to pay interest fees so that you only pay the actual amount that you owe on your credit card. It can significantly reduce your overall costs of repaying the credit card debt. Most people are able to pay back their credit card debt in half the time when they did not have to pay the interest rate in the balance transfer card.
Before applying, you should do some calculation to see if you are able to pay off the credit card debt that you owe by the time the intro period ends. By doing a calculation, you will know how much you need to set aside every month so that the credit card debt will be fully repaid by the time the intro period ends. If you can’t fully repay the credit card debt within the intro period, it won’t be worthwhile to apply for the balance transfer card since the normal interest rate will apply.
Many balance transfer credit cards also charge balance transfer fees which can range from 3% – 5%. you need to take into account the balance transfer fee when doing the calculation so that you know the exact cost of repaying the debt with the balance transfer credit card. There are lots of balance transfer credit cards with the interest fees waived provided that you transfer the balance within a certain time period, for example 60 – 90 days.
The zero percent balance transfer credit card is suitable for you if you always make on time repayment. This is because late payment can cause you to lose the zero percent intro period promotion offer. The balance transfer card should only be used for the purpose of repaying your credit card debt. It is advised that you don’t charge the card for any purchases as it will add to your debt burden.
Zero percent credit cards are credit cards that come with an introductory offer where you don’t have to pay interest fee on the balance that is accrue for a certain period of time. Because of the zero percent promotion offer, many people have used their cards to fund big purchases while paying it off by installment without the interest fee charges. The following are the top 4 zero percent credit cards that can be used to fund big purchases this year.
1. Chase Slate
Chase Slate is offering a zero percent intro period for purchases and balance transfer for 1 year and 3 months. You will get charged with the regular APR rate of 15.49% – 24.24% if you fail to finish paying back the total amount you spend on the big purchases at the end of the introductory period. Only an average credit score is required to apply for the card. The card waives the annual fee and penalty fee. The Chase Blueprint program provides assistance on creating a debt pay off plan.
2. Chase Freedom
Chase Freedom also provides a zero percent intro promotion that extend up to 1 year and 3 months starting from the first day of the account opening for both purchases and balance transfer. The variable APR you are charged after the promotional period is 15.49% – 24.24%. You just have to spend a minimum of $500 in 3 months to take advantage of the $150 signup bonus. Besides the signup bonus, the card can also be used to get 5% cash back from your purchases in the rotating bonus categories. The cash back program only applies to the spending limit of up to $1,500 in purchases every quarter.
3. Citi Simplicity Card
Citi Simplicity Card offers the longest intro period promotion which lasts for 1 year and 9 months for both purchases and balance transfer. The ongoing APR rate that is in the range of 13.49% – 23.49% applies if you still have some debt in your credit card balance after the promotional period ends. The advantage of Citi Simplicity Card is that it does not charge any late fee, penalty APR, and annual fee.
4. Discover it Cashback Match
Discover it Cashback Match provides zero percent intro period for 1 year and 2 months for both purchases and balance transfer. The variable APR that you are charged at the end of the promotional period is 11.49% – 23.49%. it gives you 5% cash back on every purchases you make as long as it is in the quarterly bonus categories for up to $1,500 per quarter. The cashback match program will match the cash back at the year end. Several types of fees have been waived in the Discover it Cashback Match including annual fee, and penalty APR.
Many young people graduated college with a large pile of debt. But student debt is not the main reason why a lot of young people are in debt. According to recent the statistics, young adults in between 18 – 24 years old spend more than what they are earning in their wages. It is estimated that young adults born in between 1980 – 1984 have an average credit card debt of over $5,000.
They rely on credit cards to pay for their living expenses while waiting for their next pay check. It is always best to save money money so that you can use your savings to pay your living expenses instead of relying on the credit card. If you use credit card, you will still have to pay back the interest fees for the things you buy many years afterward.
Usually, young people do not yet have an established credit history. As a result, they are charged with an even higher interest rate which can make it harder for them to pay back since they are still young and not yet earning enough. The young people of this generation also pay off their debt at a much slower rate compared to the previous generation. For this reason, it could be that these young people will never be able to come out of their debts.
The Ohio State University report claims that more people will die with a lot of unpaid debt if the trend continues. When they die without clearing their debts, the bank can file a lawsuit against any asset the deceased have. The bank will have to eat the losses if the decease do not have any asset. This is because the bank can’t go after the family members of the deceased.
The reason why many young people are in so many credit card debts is because they did not make any budget planning. It is hard to save money when you spend more than you earn on expensive food, beauty, subscriptions, lifestyle products, gadgets, and taxi fees. If you are serious about coming out of your credit card debt, you should compile a list of your monthly expenses and cut down the unnecessary expenses.
By cutting down the expenses, you will be able to set aside more money to pay your credit card debt. In this way, you don’t have to just make the minimum repayment. Making the minimum repayment will take you decades to clear off your credit card bill in full every month. You must have discipline and not spend more than you can pay back in full. If you stick to your budget, you will surely be able to promptly pay back your credit card bill and establish a good credit report at the same time.
Late payment can affect your credit report by making your credit score drops by a few points. You don’t have to be too alarmed if you miss the due date. Just one late payment will not do much harm to your credit score. If you quickly take action, you will be able to save your credit score from slipping further to a poorer rating.
If you are already behind your credit card, you can set up a payment reminder to make payment promptly on the next due date. Many credit card companies allow you to set up payment reminders through SMS text messaging and email. You can set up an alarm to remind you about the due date of your credit card bill on your own smartphone if your credit card company did not offer this feature.
To ensure that you make payment for your credit card bill on time, you should pay online via your bank site or the credit card company site. Many bank provides the facility that allow customers make repayment for their credit card bill via internet banking. You can call your credit card company and ask them to let you pay your credit card bill on the phone in case your internet is down or the site is inaccessible at the due date.
Once you have make the repayment, it will show a receipt that confirm your payment has gone through successfully. You should use your printer to print out the receipt so that you can show it as proof of payment. If you believe that your credit card company has mistakenly charge you a late fee, you should give them a call them to look at your history and remove it from your account. If your bank refuse to remove the late fee, you can submit a complaint to the CFPB. The CFPB will contact your credit card company and help you to get the issue resolved.
If you can afford it, you should not just pay the minimum amount and roll over the balance to the next month. Instead, you should pay in excess of the minimum amount so that the credit card bill can quickly get cleared off. Paying your credit card debt in full every month allows you to avoid the interest charges. It is important that you always review the credit card interest charges and fees so that you know how much you are expected to pay when the statement arrives.
You can write down the due dates for all credit cards on a notebook. As you pay off each credit card, you should cross them off on your notebook. If you are not able to make it to repay on the due date, you can check and see if it is possible for you to change the due date to a later date in the month.
More and more people are preferring credit union credit cards because they are tired with the bank issued credit cards. Credit unions is different than a bank because it is a non for profit organization. Credit union is well known for their excellent customer service and they always modify the terms of credit cards to help customers with financial hardship to start all over their lives again.
One benefit of a credit union credit card is that it charges lower interest and fees. Credit union credit cards are several points lower than than interest rates of a bank. The average penalty APR in a credit union credit card is 18% while the credit card issued by the credit card company is 29%. however, half of the credit cards issued by credit unions do not have any penalty APR compared to only 10% of bank credit cards that do not charge penalty APR.
The interests and fees in credit union credit cards will not suddenly like as in many bank credit cards. Credit unions are not like banks who place emphasis on profits so they will not try to charge you with as much fees as possible. You have to become a member of the credit union in order to take advantage of the benefits.
Credit union credit cards have longer grace periods compared to banks. Most credit union organizations offer a grace period that lasts for 5 days while banks usually only give a 1 day grace period. Credit unions usually are more forgiving and won’t increase the interest rates when you make a single late payment. Many banks will charge you penalty interest rate when your record shows that you are behind in payment at least one time.
Credit union credit cards don’t deliberately charge you high foreign transaction fees. They only charge you enough to cover up the processing fees charged by the processors. On the other hand, bank credit cards charge an interest rate in between 2% – 3%.
Credit union credit cards also offer perks although its perks are not as attractive as those offered by the bank issued credit cards. You can earn cash back and rewards points in a credit union cards. However, unlike bank issued credit cards, it does not have partnership with major brand name airlines, and hotels. So, credit union credit card is not suitable for you are looking to take advantage of perks when you travel with a specific airline.
If your finances are not in shape, they let you know personally that you can’t qualify for the credit card. You can submit the application for a second chance if your initial application get rejected. You have to write a letter to the loan committees with a clarification of your circumstances to get approved.
Capital One offers credit cards with generous rewards program for people who plan to travel to any part of the world including Mexico. Capital One offers 2 credit cards including Venture Rewards and VentureOne Reward cards. Capital One Venture Rewards credit card runs a great promotion program that rewards you with 40,000 miles when you spend at least $3,000 within a period of 3 months. You can get a $400 travel discount when you redeem the 40,000 miles bonus. You will earn double miles for all your purchases without any cap on how much miles you can earn. You can use the card to fly with any airline you want and still earn bonus miles. There is no restriction on which hotel you must stay in order to earn the bonus miles.
As long as you spend money on the card, you will earn rewards points as it doesn’t have any blackout date that specify that at which period you must spend money to earn the rewards. The miles can be redeemed at anytime as it won’t expire for the whole time when your account is active. Foreign transaction fees are waived when you spend money on your trip in Mexico. Capital One Venture Rewards Credit Card has an annual fee of $59 but you don’t have to pay for this fee in the first year. The annual fee of the card is reasonable and not that expensive compared to other credit cards.
Capital One Venture Rewards Credit Card is ideal for people who enjoy having a travel card that offers flexible rewards. If you are looking to spend more than $3,000 in your trip at Mexico, you will be able to take advantage of the big sign up bonus that it offers. The miles that you earn on Capital One Venture Rewards Credit Card can be used for redeeming free flights, and free stays at hotels. The card is ideal for you if you spend more than $10,000 per year. The spending at this level allows you to get the best value out of the double miles to cover up the annual fee.
Capital One VentureOne Rewards credit card allows you to earn 1.25 miles for all your purchases. The bonus miles the card rewards you is half of Capital One Venture Rewards card. It offers just 20,000 bonus miles when you spend $1,000 in 3 months. Just like the first card, it offers 0% APR for 1 year. There is no annual fee charges on Capital One Venture One Rewards credit card. Capital One VentureOne Card is ideal for people whose monthly expenses is lesser than $650 per month. It is a great card to consider if you want to carry a balance from month to month.
Students don’t have enough credit history so they will instantly get denied when they apply for a regular credit card. All regular credit cards require at least some credit history in your credit report. It may need at least an average credit score to get approved for a regular card. Without a credit history, you can’t qualify for the regular card but you can still get a student credit card. Student credit card has low credit limit and less interesting rewards program but they are good for building up credit. The whole point of getting a student credit card is to develop a good spending and finance management habit when you are young.
When you apply for a student card, you will be asked to fill in your school information in the application form. This means that only those who have enrolled themselves into a college/university will be able to apply for the cards. Some student credit cards can be applied by non students. The issuer may also ask you to get a cosigner to sign the credit card agreement. Cosigner is someone with enough salary and will be responsible for paying back the credit card debt if you can’t cope in paying back the balance. You can get your friend or one of your family members to become cosigner.
For the purpose of building credit score, you should use the student card for at least 6 months. You must charge the credit card on some expenses every month. As a rule of thumb, you should only spend 20% – 30% of the credit limit so that the credit card company will see you as someone who is responsible in your finance. You must remember to pay your card balance in full every month. If you do this, you will be able to quickly build up your credit score and have no problem in getting a low interest rate in the loans and mortgage.
You must be responsible in repaying your card’s balance on time. If you don’t pay your card’s balance on time, it will get reported to the credit bureau and your credit score will drop. The negative record will remain on the credit report for a period of at least 7 years. To ensure that you can pay your credit card bill on time, make sure you set a budget so that you don’t spend too much and have enough leftover to set aside for paying the bill. You can set up payment alerts on your credit card account to help you to remember to pay for the credit card bill. The payment alert can be set up on your email or mobile phone SMS. The payment reminder will automatically be sent to you on the due date.
Carrying a 0% cash back credit card is necessary if you do your own grocery shopping. The advantage is that you don’t have to pay any interest fee during the introductory period. Besides, you get to earn back some of the money you spend when you use the card to pay for your grocery shopping. The following are the five top rewards cash back credit cards with good zero percent introductory period that can be used for grocery shopping.
1. Chase Freedom
Chase Freedom is a grocery shopping card that allows you to enjoy 0% APR for up to 15 months no matter if you use the card for new purchases or balance transfers. You can earn 5% cash back when you spend money in selected bonus categories that rotate every 3 months. The 5% cash back is valid on the first $1,500 you spend in the selected bonus categories. All other purchases that do not belong in the bonus categories will be rewarded with 1% cash back. The cash back rewards can be redeemed at anytime.
2. Blue Cash Preferred Card
Blue Cash Preferred Card offers a 12 months 0% APR introductory period, after which you will be assigned an APR rate that is determined by your credit score. If your total expenditure reach up to the level of $1,000 in 3 months, they will credit back $150 to your account. The card offers 6% cash back for purchases at the U.S. supermarkets for up to $6,000 per year. You earn 5% cash back on travel purchases made within 6 months. The value of the cash back reward is stated in reward dollars and you can exchange it for statement credit.
3. Blue Cash Everyday Card
Blue Cash Everyday Card has a 12 months 0% APR introductory period and the same cash back rewards just like Blue Cash Preferred Card. The difference is that you get to earn $100 cash back instead of $150 after spending a minimum of $1,000 in purchases within 3 months.
4. BankAmericard Cash Rewards Credit Card
BankAmericard Cash Rewards credit card does not charge any APR for the first 12 billing cycles on both purchases and balance transfer. The card allows you to get a $100 cash rewards bonus once you reach a minimum of $500 in expenses. You can get an additional 10% bonus if you choose to redeem the cash back in the Bank of America savings account.
5. Citi Double Cash Card
Citi Double Cash Card is a cash back rewards card that offers 18 months zero percent introductory period. It offers a 1% cash back when you swipe your card for the purchases and you will get another 1% cash back when you make the minimum repayment. It does not states any requirement on rotating bonus categories or how much you must spend in order to get the cash back.
Discover has replaced the old Discover More card with the new Discover it card that offers even more rewards for customers. Discover More card’s 0% introductory period lasts for 14 months and it offers 5% cash back rewards on rotating bonus categories that change every quarter. Purchases that do not qualify for the bonus categories will earn 0.25% cash back and then increase to 1% cash back after you have spent $3,000.
There are two versions of the Discover it card including Discover it – Cashback Match and Discover it – 18 Month Balance Transfer Offer. Discover it – Cashback Match offers 12 months zero percent introductory period for your shopping and transfers of balances from other cards. Discover it – Cashback Match card can double your cash back rewards at the end of the year so you are actually earning 10% in cash back reward. The amount that you earn in cash back will depend on the amount that you have spent on the card.
If you are planning to use your credit card for a large purchase, the Discover it – Cashback card will be suitable for you since you can get some cash back when you make the purchase. The card does not have any foreign transaction fee so it is better than the Discover More card that charges a 2% foreign transaction fee. You won’t get charged with a late payment fee for the first late payment. However, if you are late in making the repayment for the second time, you will get charged with a $35 fee. It has a feature called Freeze It that you can use to deactivate your card to prevent your card from being charged for new purchases. This feature is helpful if you notice a suspicious transaction on your credit card statement.
Discover it – 18 Month Balance Transfer Offers provides 18 months zero percent introductory period for the balance transfers. This card only offer 6 months zero percent introductory period for purchases. It is a great balance transfer card for people who are looking for ways to make their high interest credit card debts more affordable for them to pay off.
The rewards programs for both cards are the same and you will get 5% cash back rewards on bonus categories for up to $1,5000 in each quarter every year. The bonus categories tend to change every quarter. For example in the third quarter from 1st July – 30th September, the bonus categories is home improvement and Amazon so applying for this card can help you to save a lot of money if you want to buy home improvement products or shop at Amazon.
Customers can get a cash back of between 5% – 20% through Discover Deals that has more than 200 online retailers in the approved list. You will have to login into the D portal and select the online retailers where you want to shop at to take advantage of the discount deal.
A credit card that is used responsibly can be useful for rebuilding the credit score. If you manage to use the card to build a good credit score, it can provide a good credit reference in the near future when you take out loans after you graduated from the college. Students must be careful on charging the credit cards because they don’t yet have any real income.
Missing a payment can cause the balance to roll over to the next month and the interest rate will accrue to a large sum if you continue to not make the minimum repayment. This can result in bankruptcy which is a mistake that will be noted on the credit report for 7 years. According to the survey conducted by the Federal Reserve Board, young households account for the second highest level of bankruptcy in the USA.
This is the reason why college students should only maintain one credit card for their expenses. As a college student, you only need one card to pay for your expenses and build your credit. The one credit card that you hold is all you need for keeping track of your balance. The card will be covered with fraud protection for losses up to $50. As a student, you can apply for a normal card with your parent acting as the guarantor.
If not, you can apply for a secured card which has a much lower limit. Some secured cards don’t report to credit bureau so make sure to confirm with the credit card company that the secured card reports your monthly repayment to an accredited credit agency like Experian. By reporting to the accredited credit bureau, you will be able to build a credit history as you pay your credit card debt.
Another option is the parent getting an authorized card issued to their child who is a student. The card has certain safety measures and a credit limit is established. To use the card for building good credit history, make sure you don’t exceed more than 25% of the credit line. You should be using cash for most of your daily purchases so that you don’t have to charge the card frequently. To make sure you stay on track with the goal of building your credit score, it is advised that you use an online credit score monitoring tool to monitor your credit score. You must avoid using the card in a WiFi hot spot where a lot of people is sharing the internet because someone could steal your card number when you are using your credit card to buy things online.
If you want, you can have another credit card to be used as a backup in case you forget to bring money in your wallet. So, one card is for carrying a balance on monthly expenses and the second card can be used for emergency expenses. If you are also carrying debit cards, make sure you set up an overdraft protection.