Maybe the best thing about getting hard won knowledge is that you can pass it along to your kids.   How can you go about helping your children establish a good relationship with credit, learn how to use it responsibly so they don’t have to learn about credit card debt, and credit card abuse the hard way?  Just like everything else in life, they depend on you to teach them how to function as adults.  So we should take this responsibility seriously.

First of all, teaching kids to use credit effectively is not about keeping them from having credit.  If anything, the opposite is true.  A credit card is as essential a tool for modern living as a car and a cell phone.  We would even make the bold statement that to send a child out to fend for himself or for herself without a working credit card in her pocket, a respectable credit rating already building up and the training on how to use credit is nothing less than irresponsible parenting by adults.  It is the equivalent of sending your child into a battle with no weapons.  Credit is essential and smart use of credit is even more essential.

You can help your kids begin to understand the basics of getting good credit by getting them a credit card in high school or college.  You can pay the bills but this is a good way for them to pay for what they need, you can keep track of their spending from the monthly bill you get.  Make sure that credit card is in your child’s name so as you pay it off each month, they build up the good credit rating from what you are doing.  Consider it another one of the many legacies you are passing along to your kids.

But do not let your children spend recklessly with their credit card.  In fact, you can work with a credit card company to establish a credit limit and not allow it to go up.  In that way, you can set a limit on the amount of credit they have each month. And if they go over it and suddenly cannot buy lunch because they abused their credit, that afternoon of going hungry will teach them more than what two days of lecture about fiscal responsibility can do.

Make sure your kids are aware that you paying their bill is a privilege and that they are very lucky to be able to start their adult lives with a sponsor.  Proceed to give them three jobs they must complete to show they are worthy of this privilege.  (1) They must save all receipts of every purchase they make.  If they buy something and don’t get a receipt, they must make one.  (2) They must maintain a ledger of spending.   This is similar to a checkbook ledger but it must be complete with every purchase they made, a running total and it must be maintained daily.   Should an expenditure show up that is not on that ledger, they will be required to pay that back to you or risk losing their credit card.  (3) They must sit with you once a week to review the credit card bill and explain item by item what each entry means.  This will do a lot to keep them from using the credit card frivolously.

These simple habits, if done over a period of months, will teach your children how to track, monitor and be aware of their spending and their use of credit.  In that way, when you cut the apron strings entirely, they will not only have the credit they need to have a good adult life; they will be wise on how they use it.  And there is no better gift you can give to a child than that.

The other day I heard a guy tell his story about how he went on his mission to eliminate his credit card debt. He started with reading the advice on various websites and trying various search engines and he was astonished at the number of results he received.

One night he was so tired that he typed in “card com credit debt en language site”. After he typed,  “card com credit debt en language site”, he realized that he had made a slight typing mistake in typing, “card com credit debt en language site”.

His actual intention behind typing “card com credit debt en language site” was to search for only English sites (.com sites only) that offered credit card debt related advice. His search amused him even more when he found that “card com credit debt en language site” did actually get him some results. Though the search engine did recommend changing the “en” to “in”, there were still some results for “card com credit debt en language site”.

He just went on to search for “card com credit debt en language site” as just one term. For “card com credit debt en language site” as a single term, he got lesser results than he had gotten for “card com credit debt en language site,” typed in without quotes. He wondered, if a large number of people were making similar searches as he was doing on “card com credit debt en language site”, i.e. using random terms with a bit of mistyping.

He went on to typing, “card com credit debt en language site” on some other search engines, just to see what happens. Soon, it became a research (and fun) of a different kind i.e. searching for “card com credit debt en language site” and checking if the sentence actually meant something.

He thought that it was a bit unusual to have other people that were also searching for or using the same, long term. When “card com credit debt en language site” was used without quotes, the search for ‘card com credit debt en language site’ did yield some useful responses.

He further examined the results that were returned for “card com credit debt en language site”. However, that was just the fun part of it and he soon went off to sleep.

Yes, he did have a laugh with his friends the next day.

Begin this process with understanding what the percent annual interest rate is and where its importance lies. Percent annual interest rate is simply the interest rate that is used to calculate interest on the balance in your credit account with the credit card supplier. There is no interest charge if you make the full payment of your credit card bill (by the due date). However, in case of a partial payment, you will need to pay an interest on whatever you owe the credit card supplier. The percent annual interest rate is backward calculated to get a monthly rate and the same is applied on your balance to calculate the interest for the applicable period.

That means, people who are not sure about being able to pay the full amount, every time, should surely look for low interest credit cards. A low interest credit card helps in reducing your total outgoing expense by curtailing the interest you pay on your balance. So, low interest credit cards help in slowing down the rate at which your credit card debt builds up. Low interest rate credit cards are surely an important assistance mechanism for a certain group of people.

Besides this group, there are others who do not really need low interest credit cards. These people are capable of (and intend to) pay off their credit card bill in full every month. Their purpose in using a credit card is convenience and other benefits associated with the credit cards. Whether it is low interest credit cards or high interest ones; it really does not matter for them.

There is more of a need by certain groups of group of people, however. Even if you go for a low interest credit card, you need to compare various low interest credit cards against each other and other benefits they offer, then select the low interest credit card that is best suited to your needs.

First you need to evaluate whether you need to go only for low interest credit cards and then select the low interest credit card that fulfills your needs. After all, you do not go searching for a credit card everyday.

If you have a credit card debt in the thousands of dollars and that interest rate can get above 15%, that is going to mean that a large portion of your monthly payment is going to go toward the interest.  It also means is that your balance will go down slowly which is very discouraging especially if you are also continuing to use the credit card. Your balance continues to go up and up and up.

How often have you looked at the average interest rate that the credit card companies are charging you and thought, “I sure wish there was some way I could cut that interest rate in half or less?”  If you could just get that interest rate down under 10% or even better, that step alone would help you put more of the payment money you pay out each month toward reducing the debt.  If the rate could be locked in at a constant rate, and not constantly being increased by the credit card company, then you have a real path toward paying off what you owe once and for all.

There may be a way to actually get a credit card rate you can live with from the credit cards services that are the supplier of that credit card.  It goes back to that old advice that your mom or dad might have given, that goes – “You don’t know until you ask.”   It is very likely that if you call the credit card company and explain to them the situation, they might have the resources to negotiate a rate with you that you can live with and offer you the same services a credit consolidation company would offer. 

It is good to take a moment and look at the world through the eyes of the credit card company.  They are in business to keep good customers who pay their bills.  For credit card companies, the worst kind of customer is one who is constantly late on their payments or does not pay at all. The business then has to go through the expense of nagging those customers for the money.  And customers who have the resources to dump them because their rates are too high are also a big threat to their livelihood because they depend on you needing them and being willing to pay those interest rates and fees.

So rather than see you dump them or take your debt elsewhere, for example, to a credit consolidation service or a second mortgage, it is better business for the credit card company to cut your rate and continue to make some money off of your debt.  Competition is just as intense for the good customers in the credit card world as it is in any other business.  So if you pay your bills and are the kind of customer these companies like, you have a bit of leverage with them that you may not have known you possessed.

When you call the credit card company to renegotiate your rate, make sure that you talk to someone who can actually change things, and bring some clout with you.   Be prepared to cancel your credit cards or move your debt to another card or credit service.  If you let that credit card company know you are unhappy because of the rate, they will have some kind of program to keep your business.  The credit card companies are not going to tell you about that program, but it is there.  If you are persistent and want it bad enough, you can get the credit card companies to play ball your way and give you a premium interest rate you can live with and be satisfied.

Of credit cards and credit card application
 
Credit card applications have taken over the need to have cold cash and a lot of people are trading in their hard-earned green bucks for a shot of having the charge-it-card. But along with your credit card application, of which many are unaware of is the responsibility for holding this credit card. Before falling in line to get started with your credit card account, before you start filling up the fields necessary to get up and running with your credit card application, know all the precautions and the counter measures for that protects you under the federal law. Credit card application, as we all know, takes a lot of time to verify the identity of the person on top of the credit card application. Due to the enacted US Patriot Act that requires further verification of anyone applying for anything in the United States, that includes credit card application; it has become quite a chore. Since the importance of having a credit card is top priority in the US, many are still willing to go through an immense amount of trouble that is coupled with it.

The importance of having a credit card is very imminent; take for example the average American. An average American from the middle class bracket owns about eight to ten different credit cards and uses all of them at an average of once a day. With this number it is not surprising that there are about a hundred thousand credit card applications being processed in a single day. The rate if credit card applications are still expected to rise within the next quarter. The need for credit cards and debit cards is real and the market should be open for more credit card applications that are expectedly going to flood their mailboxes. There will be a great need for more people to look into the responsibility of educating other people on how and when to use their credit cards.  It is hard-earned greenbacks that we are throwing away when we buy online porno and junk that only benefits few people.  So, whenever you are ready, grab a pen and paper and get ready to fill up that credit card application form.    Take one step into the express way, charging the items you buy!

Most of the time, although your credit card application is mailed to you states that you have been pre-approved, you will still be asked to fill out a credit card application or the “Acceptance form.”  There is a reason behind this request.  The bank or the company needs to verify the identification of the person to whom the card was sent.  Since most companies offer online credit card applications, the consumer can go online to fill out the form so the processing will be convenient and easier.

When filling out your credit card application, there are some important details that should be considered aside from your name and contact information.  For example, should you respond or accept every offer, and the possibility of hidden fees that can be quite expensive.

When it comes to finances, technology—through efficient banking system and services—has given people better alternatives and options on how to manage their finances. Among the so many financial management schemes that emerged, one alternative stands out among the rest—the credit card.

Credit cards, especially to working people and those who live very busy lives, have become an ultimate financial “savior.” More than just being a status symbol or an add-on to expensive purses and wallets, the credit card has revolutionized the way people spend their money.

But, more than the glamour and the convenience credit card brings, there is much more to this card than most people could ever imagine.

Credit Card 101

Before indulging much into the never-ending list of the advantages and disadvantages of having a credit card, it is very important for people to first have a brief realization of what credit card really is in order for them to maximize its potentials.

In layman’s terms, credit card is a card that allows a person to make purchases up to the limit set by the card issuer. One must then pay off the balance in installments with interest payments. Usually, credit card payment per month ranges from the minimum amount set by the bank to the entire outstanding balance. Since it is a form of business, the longer the credit card holder waits to pay off his or her entire amount, the more interest piles up.

Since having a credit card is a responsibility, only those people who are of legal age and have the capability to pay off the amount they are going to spend through their credit card, is allowed to have one. Actually, most of the adults in the U.S. use credit card because this is very convenient compared to carrying cash or checks every time want to make a purchase.

It is also equally important to be familiar with the different types of credit cards before you begin to build up credit card balances and to avoid having a nightmare of debt. Since credit cards are indispensable to most consumers, it is a must that they understand the types of card that include charge cards, bankcards, retail cards, Gold cards and secured cards. All of these types come in one of two interest rate options—the fixed and variable. Actually, it does not really matter if you decide to have a fixed-rate credit card because the interest rate remains the same. Compared to variable rate cards, where rates may be subject to change depends upon the credit card issuer’s discretion. Fixed-rate carries higher interest rates. Basically, credit card grantors issue three types of accounts with basic account agreements like the “revolving agreement” a.k.a. Typical Credit Card Account which allows the payer to pay in full monthly or prefer to make partial payments based on outstanding balance. While the Charge Agreement requires the payer to pay the full balance monthly so they would not have to pay the interest charges, the Installment Agreement, on the other hand, asks the payer to sign a contract to repay a fixed amount of credit in equal payments in a definite period of time. Another category of credit card accounts includes the individual and joint accounts where the former asks the individual alone to repay the debt while the latter requires the partners responsible to pay. The common types of credit cards available through banks and other financial institutions also include Standard Credit Cards like Balance Transfer Credit Cards and Low Interest Credit Cards; Credit Cards with Rewards Programs like Airline Miles Credit Cards, Cash Back Credit Cards and Rewards Credit Cards; Credit Cards for Bad Credit like Secured Credit Cards and Prepaid Debit Cards; and Specialty Credit Cards like Business Credit Cards and Student Credit Cards.

Now that you have an idea how many types of credit card there are, it is now time to review your goals before applying for one. Some of the things you should consider is how will you spend with the credit card monthly, if you plan to carry a balance at the end of the month, how much are you willing to pay in annual fees, if you have a strong credit history and is your credit in need of rehabilitation. Once you have an idea of what you are looking for choose the right credit card for you by researching the information you need that will fit your basic needs. You may also review the credit cards you have researched and compare them.

Shopping for a credit card?

Regardless of the type of credit card you choose, be sure to discuss your specific financial needs with your financial advisor or accountant before applying for any credit card. It is a must that you understand the benefits of having a credit card, for example,  like safety, valuable consumer protections under the law, and the accessibility and availability of services. The most popular credit cards include Chase Manhattan Bank, Citibank, Bank of America, BankOne, American Express, Discover® Card, First Premier Bank, Advanta, HSBC Bank, and MasterCard Credit Cards.

Although having a credit card is synonymous to invincibility, this may also trigger a person’s thirst for material things and may lead into the temptation of buying something that is not needed. A credit card bearer should always have in mind that having a credit card is a big responsibility. If it is not used carefully, the payer may owe more than they can repay. It can also damage their credit report, and create credit problems that are quite difficult to repair.

With the fast pace of our everyday lives, we do not have time to do anything. This is where the combined power of commerce and technology comes into play. The capability to apply online for a credit card is one such example. Yes, you can apply online for a credit card. The revolution behind providing you with the ability to “apply online for credit card” is called the “internet.”  You can not only apply online for credit card but can also use your credit card to do online shopping (and get the goods delivered to your door at no extra cost compared to the local store).

To apply online for credit card, you only have to fill-in an application form that is presented to you on the website of the credit card supplier (who provides the capability to apply online for credit card). This application form is very similar to the one you would have completed in person – the details asked are same and the processing of the application is also the same. You will find that many credit card companies encourage you to apply online for credit cards. This is advantageous to the credit card companies due to costs savings related to salary of representatives, paper, etc. Moreover, when you apply online for a credit card, the application details can flow smoothly into the database of the credit card supplier,  i.e.,  the manual intervention is minimal. This, in turn, will lead to faster processing of your application. It is not necessarily true, however, that the online application for a credit card,  reaches you much faster. The benefit of applying online for a credit card, is the time saved and the hassle associated with approaching a credit card company. You can compare the credit cards (again online) before you apply.

Some people don’t like to apply online for a credit card. The main reason is their discomfort in providing personal information online. One quick check, before you apply online for credit card, is to see if the website address of the page (where you are required to enter your details) starts with “https”. “Https” indicates that it is a secure website (you might also check if the security certificate is provided by a reputed organization, e.g., Verisign). If you don’t see an https, you should not apply online for a credit card from that company.  Besides that, some people do not  apply online for credit card because they are not comfortable in filling out the form. In such a case, you might either not apply online for the credit card (and apply in person instead); or you might just go through the form, note down your questions/problems and seek the answers by calling the customer service center of the credit card company.

Applying online for a credit card is surely a great option.