Friday, December 25, 2015
Tips for Credit Card Consolidation
Credit card consolidation may save you a considerable amount of
money, especially if you're transferring the balances from high APR
(annual percentage rate) credit cards to low APR credit cards, or better
yet, one of the many credit cards that offer zero percentage APR for
balance transfers.
There are five distinct reasons why credit card consolidation may very well be an excellent choice for you.
The first, as we just mentioned, is because your current credit card or cards are costing you far too much in annual fee or APR. It may be that the card you use for credit card consolidation may not offer a permanently low APR but rather a short term zero or low APR percentage for any transfer. Go for it! You can always do credit card consolidation, or just one bulk transfer to yet another card when the low introductory rate runs out on this newest one you've chosen.
Annual fees can be a strong incentive for credit card consolidation as well. These can add up, especially if you have several credit cards. While many cards have annual fees around $20 or $25 dollars, some can carry an annual fee as high as $250. Keep in mind, however, that doing credit card consolidation by transferring to a card that has no annual fee is only advantageous if you're going to use that card for the year. If, however, you're looking at a card whose introductory rate is six months, after which the APR skyrockets, that low or nonexistent annual rate is not going to be much help to you.
Your other credit card consolidation option may well be a personal signature or collateral loan. While it might seem that using a loan as a resource for credit card consolidation is a little like robbing Peter to pay Paul, the fact is that your monthly loan payment will be much easier to accomplish than the use of one credit card. Why? Because you won't have the temptation to use that credit card and rack up even heftier credit card debt.
If your credit card payments have been continually late they've probably affected your credit. Credit card consolidation may be a good way to reduce the debt and improve your credit standing.
One last reason for doing a credit card consolidation is to make a little money from it - right up front. There is so much competition among the various credit card companies that some literally offer to give you money back immediately if you'll transfer your credit card balances to them. They do this by saying that they're going to reduce that debt.
If, for example, you had a total of $2000 in credit card debt on your current credit cards, you might do a credit card consolidation with a new credit card that offers to forgive five percent of your debt. What this means is that the minute you do the credit card consolidation, transferring your outstanding balances on your current cards, you've made five percent of $2000, or $100 instantaneously.
There are five distinct reasons why credit card consolidation may very well be an excellent choice for you.
The first, as we just mentioned, is because your current credit card or cards are costing you far too much in annual fee or APR. It may be that the card you use for credit card consolidation may not offer a permanently low APR but rather a short term zero or low APR percentage for any transfer. Go for it! You can always do credit card consolidation, or just one bulk transfer to yet another card when the low introductory rate runs out on this newest one you've chosen.
Annual fees can be a strong incentive for credit card consolidation as well. These can add up, especially if you have several credit cards. While many cards have annual fees around $20 or $25 dollars, some can carry an annual fee as high as $250. Keep in mind, however, that doing credit card consolidation by transferring to a card that has no annual fee is only advantageous if you're going to use that card for the year. If, however, you're looking at a card whose introductory rate is six months, after which the APR skyrockets, that low or nonexistent annual rate is not going to be much help to you.
Your other credit card consolidation option may well be a personal signature or collateral loan. While it might seem that using a loan as a resource for credit card consolidation is a little like robbing Peter to pay Paul, the fact is that your monthly loan payment will be much easier to accomplish than the use of one credit card. Why? Because you won't have the temptation to use that credit card and rack up even heftier credit card debt.
If your credit card payments have been continually late they've probably affected your credit. Credit card consolidation may be a good way to reduce the debt and improve your credit standing.
One last reason for doing a credit card consolidation is to make a little money from it - right up front. There is so much competition among the various credit card companies that some literally offer to give you money back immediately if you'll transfer your credit card balances to them. They do this by saying that they're going to reduce that debt.
If, for example, you had a total of $2000 in credit card debt on your current credit cards, you might do a credit card consolidation with a new credit card that offers to forgive five percent of your debt. What this means is that the minute you do the credit card consolidation, transferring your outstanding balances on your current cards, you've made five percent of $2000, or $100 instantaneously.
Morgan Hamilton offers expert advice and great tips regarding all
aspects concerning Credit Cards. Get the information you are seeking
now by visiting Credit Card Consolidation
[http://www.Find-Cards-Now.com]
Article Source:
http://EzineArticles.com/expert/Morgan_Hamilton/45413
How To Raise Your Credit Score Fast
Thursday, December 24, 2015
Credit Card Consolidation - First Step To Get Out Of The Debt Trap
If you need money and you also hold a card, then the first
temptation is to borrow money from the credit card, i.e. take the loan from the credit card. It could be either in the form of an ATM
withdrawal or through a loan. As it is the money, which is available
most easily and without any formalities, the general notion is to use
this channel to obtain loan. However, there is an in-built interest
component built into it. This in built component is in the form of
exorbitant rate of interest which raises the cost of the money taken in
such a manner that it becomes a debt burden, which is very difficult to
get out of.
But one should not turn despondent and fret about the whole issue. One has become so much dependent on credit cards, and the incidence of defaults have increased in magnitude that some kind of solution was warranted. It has come up in the form of credit Card Consolidation. Quite of lot of companies have mow come into fray, seeing this as the business opportunity and are providing advice to the defaulters to clear their outstanding loans taken on the credit card. The agencies involved in the business of credit card consolidation scan the markets for the best options available, and then present this to the customer who has defaulted so that he can clear his dues. The mantra for those working for credit card consolidation is to provide solutions, which are quick and reliable.
The options for credit card consolidation can be found by making an online search. This search would throw up a scenario whether credit card consolidation is the way to clear your dues or not. Process of credit card consolidation is adapted so that the status of finances, which have become precarious, can be streamlined and the financial status of the future can be secured.
There are high profile lenders who provide the loan to people having a bad credit debt on the card, to facilitate in credit card consolidation. These high profile lenders even extend the help to chronic loan cases as well, by giving competitive rates, as also terms of repayments are flexible. The stigma of default is not disclosed to any third party, and the name and other related personal details are kept confidential. The USP of credit card consolidation is that it heralds a new beginning towards a future, which is debt free in a healthy way. This is done by bringing down the outflow of monthly installment towards repayment of the loan, thereby facilitating the savings of the hard earned money.
How does the credit card consolidation work?
Let us presume that the outstanding balance on your card is $5000.
Let us also presume that the annual rate of interest to be charged on the card is 20%.
So, if the outstanding balance on the card is $5000, then you will have to pay $1000 as interest charges i.e. $5000x.20 = $1000
Mind you this does not include the finance and service charges which you would invite till the time the outstanding dues have been cleared.
But where you to opt for credit card consolidation, here is how it would work:
The outstanding dues on the card can be converted into a single loan with a lower rate of interest
Now let us again go back to the workings done above. On an outstanding loan of
$ 5000, interest of 10% per annum is going to be charged. Therefore the outgo during the whole year would be $ 5000x.10= $500
Then the annual saving after the credit card consolidation would be
$1000-$500 = $ 500 and this would not include any service charges as well.
Besides, the savings that you have made can be used to clear of the outstanding much faster.
But one should not turn despondent and fret about the whole issue. One has become so much dependent on credit cards, and the incidence of defaults have increased in magnitude that some kind of solution was warranted. It has come up in the form of credit Card Consolidation. Quite of lot of companies have mow come into fray, seeing this as the business opportunity and are providing advice to the defaulters to clear their outstanding loans taken on the credit card. The agencies involved in the business of credit card consolidation scan the markets for the best options available, and then present this to the customer who has defaulted so that he can clear his dues. The mantra for those working for credit card consolidation is to provide solutions, which are quick and reliable.
The options for credit card consolidation can be found by making an online search. This search would throw up a scenario whether credit card consolidation is the way to clear your dues or not. Process of credit card consolidation is adapted so that the status of finances, which have become precarious, can be streamlined and the financial status of the future can be secured.
There are high profile lenders who provide the loan to people having a bad credit debt on the card, to facilitate in credit card consolidation. These high profile lenders even extend the help to chronic loan cases as well, by giving competitive rates, as also terms of repayments are flexible. The stigma of default is not disclosed to any third party, and the name and other related personal details are kept confidential. The USP of credit card consolidation is that it heralds a new beginning towards a future, which is debt free in a healthy way. This is done by bringing down the outflow of monthly installment towards repayment of the loan, thereby facilitating the savings of the hard earned money.
How does the credit card consolidation work?
Let us presume that the outstanding balance on your card is $5000.
Let us also presume that the annual rate of interest to be charged on the card is 20%.
So, if the outstanding balance on the card is $5000, then you will have to pay $1000 as interest charges i.e. $5000x.20 = $1000
Mind you this does not include the finance and service charges which you would invite till the time the outstanding dues have been cleared.
But where you to opt for credit card consolidation, here is how it would work:
The outstanding dues on the card can be converted into a single loan with a lower rate of interest
Now let us again go back to the workings done above. On an outstanding loan of
$ 5000, interest of 10% per annum is going to be charged. Therefore the outgo during the whole year would be $ 5000x.10= $500
Then the annual saving after the credit card consolidation would be
$1000-$500 = $ 500 and this would not include any service charges as well.
Besides, the savings that you have made can be used to clear of the outstanding much faster.
This article is courtesy of Credit-Wisdom.com, where you can
compare business credit cards
[http://www.credit-wisdom.com/creditcards/business-credit-cards.php] and
get advice on credit card consolidation [http://www.credit-wisdom.com]
online.
Article Source:
http://EzineArticles.com/expert/Richard_Gilliland/43334
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