What You Should Know About Switching Credit Cards

With U.S. credit card debt at an all time high, many savvy consumers and investors are renewing their commitments to rid themselves of this burdensome and in most cases, unnecessary debt. In doing so they are constantly searching for the next best credit card with higher credit limits, lower annual percentage rates (APRs), and zero balance transfer offers. In fact switching credit cards has become as common as changing the battery in the fire alarm for some people and it has actually worked. So if you are amongst the thousands of Americans who are thinking of making a switch to improve your financial picture, before you do there are a few things that you should consider. They include how multiple inquiries for credit will affect your credit score and if the APR that applies to balance transfers after the introductory grace period still makes it a good deal. In addition to these two things you should also, as with everything you do, conduct your own research to find the best solution to meet your needs.

It makes sound economical sense to switch credit cards to save money in interest charges and fees. Especially when you consider the fact that for most credit cards the minimum monthly payment is so low that it barely covers the interest charges reducing your outstanding balance by just a few measly dollars from month to month. Its no wonder then that we jump at any new offer that comes our way. When deciding whether to switch cards though, you should keep in mind that every time you apply for a new credit card an inquiry from that particular creditor goes on to your credit file whether you receive the credit or not. Additionally, multiple inquires by different creditors negatively impacts your credit score and any account whether closed or unused remains on your credit file for at least seven years. Last thing, switching cards and closing accounts immediately after the switch also impacts your credit score.

When considering whether to take advantage of a 0% balance transfer offer, you should consider the amount of time that you’ll have before the “normal” APR applies to that balance and whether you’ll be able to pay that in full before the grace period is over. Additionally, in the event that you aren’t able to pay off the balance prior to expiration of the grace period, you should consider if the new APR that kicks in will be a significant savings from the card that you are considering transferring balances from and whether interest will be charged on just the remaining balance or the entire amount that you initially transferred.

To ensure that you are getting the best deal, you should do a thorough search of available credit cards before making a final decision on which institution to submit a new application for credit to. By doing so you will know upfront exactly what you are getting and whether there are cost savings to be realized, leaving very little room for surprises.

Switching credit cards is a smart choice for consumers who are trying to manage and conquer their debt. For the disciplined person, this is a very effective strategy to help you reduce your debt load. If you find yourself in the situation where you are presented with an opportunity to switch credit cards, please keep in mind the negative effect that multiple inquiries will have on your credit score as well as the opening of new accounts while simultaneously closing others. When done wisely, after conducting a thorough search of available options, switching credit cards can definitely help you to achieve your financial goals.

Discover Credit Cards - A Look At The Top 3

The name Discover is often associated with the top credit card issuers in the United States. Since the Discover card was first introduced in 1985, customers have been drawn to its various reward programs. Following is a closer look at a few of Discover’s most popular credit card picks among consumers today. Discover More Card With the Discover More Card, the rewards start off with a 1% cash back bonus. You’ll earn this every time you use the card for ordinary purchases. By shopping at certain places, such as department stores, gas stations, and restaurants, you can qualify for 5% cash back. Using the card toward travel expenses can also bring in 5% cash back. By using the card at ShopDiscover, which is Discover’s online shopping site, you can earn 20% cash back. To do this, you’ll want to buy from merchants such as Eddie Bauer, Lego, and Sears, among others. This card also comes with a 0% interest rate for the first six months. A 0% APR also can be used toward balance transfers for the first year. There’s no annual fee with the card. Before applying, it should be noted that the cash back rewards are offered on a scale. You’ll receive only 0.25% cash back on the first $1,500 that you spend on the card. Then from $1,500 to $3,000, you’ll earn 0.50% cash back, and when purchases exceed $3,000, you’ll earn the full 1% cash back. Discover Open Road Card The Discover Open Road Card caters to those with long commutes who want a break on gas prices. The card offers a full 5% cash back on all gas purchases. It also includes an initial 0% interest rate for the first six months. After that, the regular interest rate will kick in, which may be as low as 10.99%. This is a reasonable rate compared to other gas rewards credit cards. In addition to the gas rewards, this card gives 5% cash back on car maintenance purchases. For those that shop at Discover’s exclusive online shopping site, they’ll receive up to 20% cash back through retailers such as the NFL.com Shop, Hotwire.com, Lego, and more. Once the rewards begin to add up, you can start redeeming them. You’ll be able to begin once you have $20 in cash back bonuses. If you choose to receive your rebates through retailers that participate in the Discover program, you can earn up to double the amount of cash back. Miles by Discover Card The Miles by Discover Card is a travel rewards credit card. Through this card, you get the chance to book trips at any time, as there are no blackout dates. You can choose any travel destination you’d like. You can start building up miles by making purchases. You’ll receive one mile for each dollar that you spend. The number of miles you build up is unlimited as long as the account remains active. And you’ll earn double miles on both travel and food. There’s no annual fee with this card. Most of the cards issued by Discover include several perks that appeal to customers. To get the most out of your Discover card, look through the details carefully before you sign up. Then set up a system that enables you to get cash back, gas discounts, or travel benefits.

Determine Your Credit Card Style

Life styles are what make people unique. The way we wear our hair, the type of clothing and fashion we prefer, and the selection of decorations within our homes all makes up an individual’s style. The type of credit card we choose, and how we use it is also part of our individual "financial style". As people grow from children to adults, they often are seen imitating what they see their parents and close circle of friends doing. Just walk through the halls of any middle school, and listen to how certain groups talk and look- it’s almost as if they have their own mini-cultures! Children often learn how to handle (or not) their finances by watching their parents or caretakers’ deal with finances. If the parents spend money like water, the children will probably grow to do the same. On the other hand, if the parents were careful with their finances, paid every bill on time, discussed money matters with the children, then chances are- the children will become adults who have very few credit cards and do not carry a revolving balance from one month to the next. Regardless of your personal credit card style and habits, it never hurts to be reminded of the most affordable way to use your credit cards. It is most financially efficient to pay your credit card accounts in full at the end of each month, and there should be little to no balance carried from one month to the next. Of course, most people don’t have that sort of credit card style- as evident by the number of people who have several thousand dollars racked up on a few different cards! One of the best things you can do with your credit cards if you have cards with balances on them, is to find the 0% transfer balance deals and move your debt from the cards that you are paying interest on to the new card that allows you to make payments without paying interest. This is a "financial style" everyone can appreciate! Most deals give you a specific amount of time to pay on the transferred balances, and as long as you make the monthly payments on time, you will not be charged interest on the balance you transfer. This is a great way to pay down the old debt and not be charged additional money in the process. Just take care to cancel and close out the original credit card(s) that the debt comes from, otherwise you are likely to keep spending on those cards while you are working to pay off the debt you just transferred off of there! This is a recipe for financial disaster! Another popular credit card style is to cash in on the cash back credit card options, and rewards programs that actually give you something back for using their card. There are many of this style of credit card available, but you need to really understand the credit card terms because sometimes rewards cards have higher interest rates, or annual fees that cost more than what you earn back when using the card. Typically, cash back and rewards credit cards are best for individuals who do their daily spending on a credit card, and pay off the balance at the end of each month. That way, you aren’t carrying a balance and aren’t being charged interest, and you are earning the maximum rewards or cash back by using the card often. If your credit card style is to have a card in your wallet for emergencies only, then chances are you are not going to benefit from a cash back or rewards card. Taking time to understand your personal credit card style can help you find the best deals when it’s time to get a credit card, or move your debt from one card to another. If you are a frequent flyer, it would be worth the time and effort to compare different credit cards that feature rewards in the way of miles that can be redeemed towards your air travel. If you like to save on gasoline or at a particular store, you can find a card for that as well! A little research goes a long way in finding a credit card that would work the best for you financially, one that your name would be in "style" on.

Credit cards for small business

When you decide to start a small business, you find out pretty quickly that it takes more than skills and dedication in your respective area of work. Besides being good at what you want to do, you also need to known your accounting and financing issues, no matter how annoying and boring these may be. And the credit card problem for small businesses needs careful handling, just like that of a regular, personal credit card. Choosing the right type of credit card is vital for the success of a small business. Even if you don't have access to a corporate credit card, a small business card can be a major tool on the path to success. When you apply for a small business credit card, lenders will analyze your request from a variety of points of views. While their evaluation of the risk may vary according to various local factors, they will all take into account the "five Cs": capital, capacity to make the payments, collateral, conditions and character. Capital, meaning your personal investment in the business, outlines not only the size of the business, but also how much risk you are willing to take. Balance risks carefully - too much means you will be rated reckless, too little, and the lenders may think you are not serious about this. The capacity to repay the loan is, of course, critical for the lender and will be carefully analyzed. The collateral or the guarantees will show that you have a backup plan for returning the loan, in case things go wrong. The conditions represent the general situation in your geographical area and your respective line of business - mostly things that you cannot control (but you can make them look better in carefully planned business plan). Last but not least, character is the impression you make on the lenders - how trustworthy and business-oriented you appear to them. If you take all these into account, your application is more likely to be successful right from the start. Of course, you also need to consider, carefully, which type of business card suits your needs. Many small businesses rely on cash flow to pay for suppliers or contractors, because they need to purchase materials and services before their own clients pay up. You need to calculate the difference between the date when you purchase the materials and the date when the clients pay you back. If this is shorter than 30 days, go for a card that doesn't charge you interest for the respective period. If it is two, three months or longer, go for a low interest card. Also, you should think of how often you will have to travel for business-related purposes, and how a special type of credit card can help you with this, or how you will handle unprepared emergency situations that hustle small businesses constantly. Some of the offers for credit cards for small business include Blue for Business Card - no annual fee, 0% intro APR for the first 9 months, credit line of up to $50,000 or Blue Cash for Business Credit Card - up to 5% cash rebate, no annual fee, 0% APR for up to 15 months. Advanta Platinum with Rewards, featuring cash back bonus, offers 0% intro APR for balance transfers, up to 50,000 credit line and various types of rewards for the things you buy most often (gas, office supplies and so on), bonus miles or cash back. The CitiBusiness card has 0% APR for purchases for the first 6 months, no annual fee, a generous credit line and additional cards for the employees, with a credit limit set by you. The Platinum Business Credit Card from American Express has no annual fee and 0% APR for the first nine months on purchases and balance transfers. Other options include Business Green Rewards Cash - no fees for the first year and no pre-set spending limit, and the Business Cash Rebate from OPEN: the Small Business Network, with up to 5% cash rebate, no annual fee, 0% APR for the first six months, no limit for cash back and no minimum spending requirements.