How to Avoid Credit Card Debt

We all know the key to good health begins with a dose of prevention--eat right, exercise regularly, and get a good night's sleep. Your financial health is no different. By taking a few steps of prevention today, tomorrow your finances will have a clean bill of health freeing you to live a life of opportunity rather than of difficulty.Keep the Right PerspectiveMuch of the problem with credit card debt problems comes from changes in credit card availability, advertising, and values over the past 75 years. According to Linda Tucker, Director of Education for Consumer Credit Counseling Service in North Little Rock, Arkansas, it wasn't until the 1960s that credit cards started becoming available to the average consumer. Now today, nearly everyone has access to a credit card.Advertising plays a role too. Howard Dvorkin, author of Credit Hell: How to Dig out of Debt and founder of Consolidated Credit Counseling Services, an organization that provides education on debt and a debt management program, says that according to one survey consumers are exposed to 300-400 advertisements every day. Combine this with a shift from saving for the future and we have a society trying to keep up with the Jones' satisfying the desire of the moment. Add the purchasing power that comes with a credit card and you have the perfect formula for disaster.But it doesn't have to be this way. If there's one thing Dvorkin wants consumers to know, it's that you don't have to be a slave to the credit card company or even to the seduction of advertising. You can have control over your financial health without depending on a credit card!Manage your financesStarting with a strategy will help keep you on track before you ever even pull out the credit card. According to Tucker the first step is determining your monthly income and needed expenses. As part of these monthly expenses, figure in 5-10% of your income to set aside for emergencies, long range savings such as a retirement account, and short term savings. If you have some savings then you avoid having to put large amounts of debt on a credit card in times of a crisis.Setting up a budget is not always easy, so if you want some help Consolidated Credit Counseling Services offers free budget counseling. You can also consult your phone book to see if your community has a local office of Consumer Credit Counseling Service.Setting up a budget is just the first step; sticking to it is the next, and often more difficult task. To help keep you on track set goals and put motivators in place. Tucker suggests setting a savings goal with a deadline. Savings goals can include emergencies, vacations, cars, and of course don't forget long range goals such as retirement. Tucker also says a reward program can be a great motivator as well. Just keep in mind that whatever you choose as a reward, it shouldn't compromise the hard work you've done in managing your finances.Finally, you need to monitor how much you charge on your card in relation to your credit limit. You should never charge more than 30-50% of your available limit otherwise your credit score could go down. For more information on credit scores read our article On the Path to a High Credit Score.Shop for the Right CardDvorkin says it's important to really shop around and get a credit card personalized for your particular situation. Ideally he suggests getting one with no or very low fees and low interest. It will take a little time to compare various offers, but with the high saturation of the market you'll find the perfect fit for your wallet. Browse the Card Reports section of CardRatings.com to shop for every kind of credit card including reward, low-rate, business, and cards for those with poor or no credit.Read the Fine PrintAn afternoon reading the fine print probably doesn't sound very appealing, but that one hour spent reading can save you hours of headaches and hundreds of dollars in the long run. You'll understand everything from your interest rate and fees to how to earn rewards and how long of a grace period you have.Know Your Interest RateIf you're going to use a credit card, regardless if you pay the balance in full each month, you need to know the interest rate. This means not only knowing what interest rate you were offered, but also the interest rate the issuer actually gives you on approval. In addition, check the rate on your monthly statements because credit card issuers can raise your rates for little or no apparent reason and with little warning.Even those who don't carry a balance need to know their interest rate because emergencies do happen. Unfortunately, cars break down, jobs are lost, deaths happen, and marriages end. While it's always a good idea to have an emergency fund, sometimes the job search takes longer than expected or the second car breaks down too leaving you with no other choice but to put some expenses on the card. If you're not up to date on your interest rate, you might end up paying more in interest than you have to.Pay the Balance in FullThis is important in keeping control of your credit cards. Before using a credit card for a purchase, ask yourself, "Do I have the funds to pay for this?" In cases of emergencies where your emergency fund won't cover the whole amount you need to charge, experts say at least pay more than the required minimum payment.Pay on TimeMichael Killian, credit and debt management guide for About.com, says never make a late payment to anyone including car and house payments. Because of the universal default clause in credit cards' terms and conditions, credit card companies can raise your interest rate if you are late paying any creditor or even your utility company. Read our Universal Default article for more information.In fact, Killian recommends being very early if at all possible to account for mail time and processing by the credit card company. If you're payment arrives before the actual due date you will end up saving money on interest because any interest you pay is calculated based on the average daily balance; so if your payment can bring down that average you will pay less interest.Some people have turned to online bill paying to avoid potential problems with the mail. While Killian doesn't recommend this form of payment because of the increased risk for fraud by hackers--especially if the company is not reputable or doesn't offer encryption--it is definitely a better option to a late payment.Use it Like Cash, Not a Credit CardIn one sense, you need to use your credit card like cash by paying your balance in full each month. But remember it's really not cash. Imagine the feel of that sleek, plastic card in your hand. It's so sleek that it slides right out of your wallet with little effort at the check out counter. Each time you pull it out it looks and feels the same. You cannot physically feel your charges climbing higher and higher.Now imagine a wad of twenties. The first time you pull it out its thickness fills your hand...you feel rich (well, at least you feel like you can afford the purchase your making). :0) But with each purchase the wad gets a little smaller until eventually it's gone...and now you know you can't afford any more purchases. Dvorkin calls this the green factor--with cash you can physically feel how much or how little you have.The point is that you need to be in control of your credit card and spending habits. It's much easier to be swept away if you use a credit card for all your purchases.Limit the Plastic in Your WalletEvery credit card comes with its own set of terms and conditions including varying interest rates, penalties, fees, grace periods and due dates. It is much easier to make payments on time, remember which card has the lowest rate, and save you from making a mistake that will affect your credit history if you only have to keep track of one or two cards.Avoid Extra ExpensesSometimes it's the little extra expenses that sneak up on you before you even know it.Cash AdvancesTypically cash advances come with a much higher interest rate, fees, and no grace period. The moment you take a cash advance you start paying interest on that balance, which means even if you pay the entire balance in full each month you still pay interest.In addition, credit card companies apply payments to the balances with the lowest interest rate first. So your $200 cash advance will continue earning 20% interest until your $2000 purchase balance is completely paid off.Extra ProductsCredit card companies will try to get you to purchase additional products such as fraud protection and insurance. The truth of the matter is you usually don't need it. By law you are liable for a maximum of $50 if the victim of fraud, and in most instances you are not liable for any amount. If you are thinking about adding on insurance, first read our article Credit Card Protection Insurance--Should You Get It?Early EducationThe best method for prevention is teaching our youngest generation all about money before they even qualify for a credit card. Statistics show that students are entering college without ever having a personal finance class or knowing how to balance a checkbook. Yet once students arrive on campus credit card issuers are eager to sign them up. College students are racking up the bills. Some even drop out of college to find a job so they can pay their credit card bills. And those who do graduate typically enter adulthood with thousands of dollars in credit card debt and student loans.In addition, advertisers market more to younger and younger children, so it's imperative to teach them very early about the lure of money and how to manage finances. The earlier children learn how to manage finances the less likely they will be to fall into credit card and debt problems as an adult.Fortunately many wonderful resources exist for parents and educators. If you have elementary aged children check out The "It's a Habit!" Company and introduce your children to Sammy the Rabbit who will teach them all about the importance of saving and developing good money habits. The Jump$tart Coalition for Personal Financial Literacy is another organization dedicated to providing resources for teaching children from Kindergarten on up through college valuable lessons in personal finance.So there you have it. Some simple steps you can start taking today to avoid the trap of credit card debt and to help others do the same!

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.

Consolidate a Credit Card to Reduce Your Debt

Strange though it may sound a credit card can be a useful tool in controlling debt. The properly chosen credit card can, in fact, be used to consolidate debt. There are several features to look for though if you plan to use a credit card in this manner. As is always the case before you scrutinize any credit card option, you should first have a clear understanding of your credit situation.Whenever you are approaching a decision about your credit it is of primary importance to pull your credit report. The government has mandated that all individuals be allowed an annual free credit report. When accessing this report make sure that you have gone to a truly free credit report site. Some companies lure people into their sites by advertising a free credit report and then ask for credit card information. Free credit reports are available from such sites but if you have supplied them with credit card information you may find that your card will be billed thirty days later for a credit report update. The charges will continue ever thirty days or so after the initial billing until you have cancelled the service. The best idea is not to give out any billing information in order to receive your free report.Get a report from each of the three credit reporting agencies (Experian, Trans Union and Equifax). When you ask for your report the site will also offer to send a credit score (FICO score) for a small additional fee; knowing your FICO is also beneficial and generally worth the nominal cost. Again, read the fine print and be careful not to set up any ongoing transactions.After receiving the three reports analyze them carefully. You are unique but your name may not be. Make sure all the credit card bills are actually yours. Also check to make sure your social security number is listed correctly. Social security numbers are keyed in by hand and thus subject to error. One digit misplaced can give you someone else’s derogatory credit. Report any errors to the agencies. Make the report to all three agencies as they do not share information.Now you have a list of all the revolving credit card debt that you owe, the balances and contact information. This is the money owed that may be ripe to consolidate on one credit card. Contact the creditors and find out what the current interest rate is on each card and if there are any programs which would allow you to reduce that rate. Let the companies know you are actively shopping for alternatives to your current rates. Customers in good standing with their credit card companies, customers with high FICO scores and customers who regularly charge and make their payments are valued by credit card companies. It may be that you will be offered incentives to retain their cards. Also, inquire about any balance transfer opportunities or other programs such as frequent flier miles.Now you are going to design your own program to consolidate credit card debt. Compile a list of all the companies with columns comparing the like features: Interest rates, penalties, incentives, credit limits. When choosing which company to use to consolidate your credit cards, look at all the features not just the interest rates. Narrow down the options to two or three cards. Speak with company representatives. It may be possible to negotiate even better terms.Once you have chosen an institution with which to consolidate credit card debt [http://www.springfieldsocialist.com/category/finance-guides], follow through and transfer as many of your outstanding balances as possible to that one card. Adjust your credit card behavior and be disciplined about your use of credit. Cut up all the other cards. You may even wish to close all accounts other than one for emergencies. Don’t carry the two remaining cards in your wallet. Remember, charge cards are nice as long as you, not the card, are in charge.

Obtaining a Credit Card

If you have had difficulty keeping up with your bills, you can rest assured you are not alone. Many people have run into trouble or a shortage of cash flow from time to time that has resulted in the inability to make all of their payments in full and on time. However, just because you don't have a perfect credit history does not necessarily mean that you will be unable to obtain a credit card. It's no surprise that a person with a low credit score will have more difficulty and less options when trying to get a credit card in their name, but it is not completely impossible because creditors do take more than just your credit score into consideration when deciding whether or not to give you a credit card. The important thing to remember is you do not want to apply for every credit card out there- every time you apply for a credit card, you are further hurting your credit rating. When you have a low credit score and a poor credit history, you need to do your research before you start applying, and only apply to the handful of credit cards that are designed for individuals with a less than perfect credit history to make sure you limit the number of credit inquiries that are placed on your credit report.When a credit card provider is deciding whether or not to extend credit to an individual, the lenders take several things into consideration. The credit score is always a factor, as is your overall credit history of how many times you've made late payments, and how much credit you currently have available to you, and how much debt you currently owe. In addition to these issues, a credit card company will also consider the length of time that the individual has been employed at their current job, and will look favorably on people who have held a steady job with a decent income for a long period of time. If your debt to income ratio is manageable, meaning you make enough money to comfortably pay for the amount of debt you currently owe, sometimes a lender can still extend you credit even though you have made late payments in the past.Chances are, if you're working to improve your credit score for your future, you're sending as much money as possible to each of your creditors each month as you are trying to pay down your overall debt. Because of this additional money being sent out, there will be less money available to you on a regular basis, and having a credit card can give you some security in the event of an emergency. What happens when your car breaks down, or a health issue comes up and you just don't have the money to pay for it because you've been sending all your extra money to each of your creditors? Having a credit card can be the security you need for these emergency issues. Credit cards for individuals with poor credit histories will almost always carry a higher interest rate than a traditional credit card, but the benefits of having a credit card for emergencies, or to use as a second form of identification, or even for renting an apartment make having the credit card advantageous over not having the card at all. Some landlords may require a credit card be on file in the event you are late with your rent payment, so that they have the additional security of knowing they can get their money by billing your credit card.The most popular option for people with poor credit histories is to obtain a secured credit card. A secured credit card allows the cardholder to make a cash deposit on the card, and then whenever the card is used, it deducts the amount from the amount of the deposit you made. It's much like a bank debit card, but a secured credit card deposit will earn interest, and help earn money when you aren't spending with the card. In addition, as you continue to make deposits to the card to cover your purchases, you are helping to improve your overall credit score.

It's Easy To Find A 0 Apr Credit Card

Millions of Americans have credit cards, using them almost every day for everything from mundane things like groceries to exciting purchases like vacations. But unless you already have a 0 APR Visa, Mastercard, or Discover credit card, chances are you're still looking for one. Who wouldn't want a credit card that offered 0 percent APR?The APR is the annual percentage rate, and it determines how much interest you pay on your credit card. No-interest credit is the best, obviously; a credit card with no APR means you're paying back only the amount you borrowed, with no additional charges. When the bank makes you a 0 APR credit card offer, you're liable to jump at the chance! But you don't need to wait for the bank or credit card company to come to you. You can get a 0% APR credit card yourself.First you'll need to check your credit score. The credit card companies are more likely to give you a low-repayment credit card as a "reward" for being a low-risk consumer. Get a copy of your credit report from one of the online sources available -- you're entitled by law to one free credit report per year -- and see if there are any blemishes that might prevent you from getting a 0 APR credit card. You should check your report even if you're sure you've never done anything to earn bad credit, because mistakes can creep into your report. The last thing you want is to be denied an interest-free credit card because of something you didn't even do!Once you've confirmed your credit report is solid, or done what's necessary to clean it up, you can apply for a credit card with confidence. There are two ways you can go about getting no-interest credit. One is to approach your currentcredit card companies and request a lower interest rate. Tell them you'd like to do a balance transfer, point out your positive credit history, and ask for zero APR credit. Many times, they will give you 0 APR for a period of six months or a year, which is fine: Before the time is up, you can set up 0 percent APR on a different card and transfer the balance. If your credit stays good, you could move your balance from one card to another indefinitely, thus keeping 0 APR credit for the life of the loan.Another option is to open new credit cards that have 0 APR offers. These are easily found online, and the 0 APR credit card is usually an "introductory" offer, which means it switches to a higher APR after six months or a year. The same procedure applies: Take advantage of the offer, and then transfer the balance to another 0 APR credit card [http://www.newyorksocialist.com/category/finance-news/] before the time is up. Before you get any new credit cards, though, be sure to check into their policies on balance transfers. Some have different APRs for balance transfers as opposed to purchases.With a little work and careful spending habits, it's possible for anyone with good credit to get a 0 APR credit card. Why should the credit card company get all your hard-earned money with its fees and APRs? No-interest credit is the way to go. Good luck, and happy spending!

Excessive Credit Card Debt

Most people advocate the case of credit cards, quoting the benefits and convenience that arises from them. However, there is another group/line-of-thought that strongly opposes credit cards. The reason being 'Excessive Credit Card Debt', which is one of the most serious problems faced by the credit card holders and credit card industry. However, you can't pull the shutters on the credit card industry just because of a few irresponsible people (or even if it's more than few). That is not a solution for beating excessive credit card debt. Moreover, you can't overlook the benefits associated with the credit cards.The issue of excessive credit card debt can be looked at from 2 angles. First is addressing of the excessive credit card debt problem at the industry level and second is the addressing of the excessive credit card debt problem at the individual's level i.e. at the credit card holder level. The first method involves increasing awareness of the excessive credit card debt problem to the masses. This is more or less being done currently too. However, there should also be an effort to tackle this problem of excessive credit card debt at an even deeper level. This means trying to devise a mechanism to nip the problem (of excessive credit card debt) in the bud. This mechanism should actually be a part of the overall system. A lot of thought needs to go into devising such a mechanism. Case studies should be taken up, statistics gathered and a proper forum formed (with representatives from the credit card holders and from the credit card suppliers). As of now, the credit card suppliers just seem to be engaged in coming out with new products and getting customers enrolled to those products. There is little attention paid towards addressing the problem of excessive credit card debt in the real sense. Something like attending mandatory seminars on the root causes of excessive credit card debt could be made part of the credit card application process.Another way of dealing with the problem of excessive credit card debt could be: developing a system for calculation of applicable credit card limit at the individual level i.e. no standard/product-based credit limits. Then there could be mechanisms for proactively warning the users about excessive credit card debt (based on their credit card usage) or even imposition of early restrictions on noticing the first signs that lead to excessive credit card debt.At the individual's level, the treatment of the problem of excessive credit card debt would include following of best practices (on credit card usage and avoidance of excessive credit card debt) by the individuals themselves. A checklist or a set of questions could be provided to individuals for recognising the first signs of excessive credit card debt.So, the problem of excessive credit card debt can surely be dealt with by putting together some serious thinking at a broader level together with discipline at the individual's level.

All About Credit Card Rate

What's the thing that is most prominent on any credit card ad? Well, it's the credit card rate (or the APR, as we know it). The credit card rate is the most publicized thing in the world of credit cards. A lot of people just compare the credit card rate of various credit cards and just go for the one that is offering the lowest credit card rate (or APR). Credit card rates are, in fact, one of the most important factors in the selection of a credit card (though not the only factor). Therefore, a proper understanding of Credit card rates is even more necessary.So, what is a credit card rate or APR? Very simply, credit card rate is the rate of interest that the credit card supplier will charge you with on the amount you owe them. The credit card supplier will charge you an interest only if you don't make full payments in time. When you receive your credit card bill, it specifies the full amount you owe the credit card supplier. It also specifies the minimum payment that you must make (by a particular date), in order to avoid incurring a late fee and other inconvenience. You have the option of making either a full payment or just the minimum payment. If you make a full payment (by the due date), you are not charged any interest. However, if you decide to go with the minimum payment or some amount that is lesser than the full amount, the credit card supplier will charge interest based on the credit card rate and the balance amount. This credit card rate is the interest rate that you agreed with them at the time of applying for the credit card.The credit card rate or the annual percentage rate, as is obvious, is an annual interest rate. The credit card suppliers use this annual credit card rate to calculate the monthly credit card rate and then they calculate the interest on the balance amount that you owe them. The balance amount here is simply = Full amount - (payment made by you). This interest is added to your balance for the next month (at the time of next billing cycle). If you again make a partial payment, the new balance is calculated again and the credit card rate (monthly one) applied to it for calculation of new interest; and it keeps going on and on until you make the full payment.That's how credit card rate acts in this vicious circle. Hence, credit card rate is termed as the most important consideration in choosing a credit card.

All About College Credit Cards

College credit cards are the credit cards that have been specially designed for college students. College credit cards are more popularly known as student credit cards. College credit cards allow the students to experience the benefits of credit cards much earlier in their life. Through college credit cards, the college students are able to learn more about credit cards and their use. In fact, for most of the students, their college credit card is their first credit card that acts as a gateway to the world of credit cards. Some other students might have previously used supplementary credit cards linked to their father's credit card account; however, for such students too, their college credit card is the first one that is truly theirs.College credit cards are not very different from other types of credit cards in the basic sense; they function in the same way as any credit card would. However, there are some differences, which basically arise from the fact that college credit cards are used by people who have no prior experience with credit cards and who perhaps don't understand the concept of credit cards completely. Hence, the credit card supplier is at risk with issuing credit cards (college credit cards) to such people whom he is not sure about. Most of the students don't have a credit history either. In such a case, the supplier of college credit card cannot be sure of receiving the credit card bill payments in time (and even receiving them at all). To counter such risks, the supplier of college credit card requires the parent of the student to co-sign the college credit card application form as a guarantee.Moreover, the credit limit on college credit cards is generally around $500-$1000 per month, which is lower than what it is for other credit cards (this credit limit is generally sufficient to fulfil the typical needs of a student). Another risk mitigation instrument used by the college credit card suppliers is the interest rate or APR. The APR on college credit cards is generally higher than that for other credit cards. Again, this is done to dissuade the students from overspending on their college credit card (and finally not being able to pay their credit card bills).However, if we were to look at these impositions in a positive sense, we would find that these are actually in favour of the student (who is still getting trained to take on the real world of credit cards). Moreover, college credit cards also help the students in establishing a (good) credit history which is another important benefit that becomes handy when the student needs any type of loan at a later stage in his/her life.So, college credit cards are really something that every student should consider going for.

A Bad Credit Credit Card

"Bad credit card card" is used to refer to credit cards that can be obtained even with a bad credit rating. The bad credit card cards provide opportunity to people (with bad credit rating) to improve their credit rating. In that sense, bad credit credit cards act as rescuer for such people. So, bad credit credit cards also act as necessary a training ground for people who have not been able to control their spending urge in the past.Bad credit card cards are commonly known as secured credit cards. The bad credit card card (or secured credit cards) requires the individual to open up an account with the credit card supplier and maintain some cash balance in the account. Why is that required? Well, credit cards are a business for the credit card suppliers; so how can they trust someone who has defaulted on his/her payments in the past? After all, a business is about profits and such risks are a threat to profits. The bank or the credit card supplier will generally pay interest on the balance in your account. However, it's best to check this with the bad credit card card supplier/bank. The credit limit on the bad credit card card is determined by the cash balance in the account and is generally between 50-100% of the cash balance. These bad credit card cards are also referred to as debit cards, owing to the fact that they work less in a credit-giving manner and more in a debit-giving manner.There are plenty of bad credit card cards available in the market. When searching for the bad credit card card that is best suited to you, you should consider 4 things in particular: the minimum balance that you are required to maintain in the bank account, the credit limit that you will receive (i.e. the percentage of your bank account balance that you are allowed to spend on your bad credit card card), the fees/other-charges applicable to the procurement of bad credit card card and the rate of interest that you will receive on the balance in your bank account. An ideal bad credit card card would have no fee/other-charges associated with it and would require zero or a very small amount as minimum bank balance. It would also have something like 90-100% of bank balance as its credit limit. Moreover, an ideal bad credit card card would also offer a good interest rate on the bank balance.Bad credit card cards are really a good concept that provides respite to people with bad credit rating by letting them enjoy the benefits of credit cards while they mend their credit rating.

Owning a Prepaid Credit Card is Easier Than You May Think

There are thousands of Americans out there who may not be aware that there is such a thing as a prepaid credit card. If you are one of these people, don't worry. Yes, there is such a thing and if you read on, you'll quickly learn of its advantages of a prepaid credit card.It's important to possess a credit card - even if you don't plan on using it. Why - because it establishes a credit rating and everyone single person has a rating. A credit rating is designed to let banks know what your financial situation is like, and your ability to repay debt. Nowadays, more and more people are shopping online. Have you ever tried purchasing something without a credit card? This scenario is probably unlikely. If you want to purchase something big, like a car or a home, it is next to nearly impossible to do it without some form of credit. For those of you who have had credit problems in the past, there is hope. That hope comes in the form of prepaid cards, which allow you to open an account (like a bank account) and load the card as you wish. The process is similar to using debit cards, except with this form of credit card, you are helping your credit rating to improve rather than to deteriorate more.If you have no credit, chances are, it's because you are young and starting out in today's society. It is also possible that you have less than perfect credit, forcing you to start re-establishing your credit history, once again. Since it is important to establish a good credit history, owning a credit card is a good start, but only under certain conditions. Regardless of what anyone might say, if you have bad credit, you'll need to take immediate steps of action to erase the debt that's causing your credit to go from poor to bad. It goes without saying - building good credit is so important today, especially for young adults wanting to buy a house or a car one day. Most young adults don't have the cash upfront to afford a home. That is where having good credit comes in handy. If you have good credit, a bank will be more likely to approve you for a mortgage on a house or a lease on a car. If you have bad credit, you may be stuck in no man's land.You can't erase bad credit, but there are things you can do to change it for the better. As previously mentioned, getting a credit card to help with bad credit is a wise move. Every month, your credit card company will send credit reports to credit bureaus, which are designed to help you re-build credit. It is important to note that once you receive a credit card, the responsibility is on you. You'll need to make sure that you're paying off your monthly balances in full. It may also be helpful to get a secured credit card - that way, you'll have to maintain a certain amount of money in your account at all times. It's also good to obtain a copy of your credit report to track positive (and negative) changes being made.There are many advantages to using a credit card, such as these. First of all, they work like regular credit cards. This means you can use them worldwide. You'll also get superior customer service and protection as you use your card. Prepaid cards are also easy to get. You can pick them up anywhere - whether it's online or at the local retail store. There are also no interest charges. That's because you're not borrowing anyone's money. You're using your own. This also means that you won't go into debt by using your prepaid card. It's simple to use and effective in today's world where it's easy to spend too much when you may not have the cash to pay for it later on. Be smart and consider a prepaid card.

What You Need to Know About Secured Credit Cards

There's so much to learn about the different credit cards made available to the public today. First of all, it's important to choose a credit card that aims to work for you and your lifestyle. Make it easy on yourself. If you do the research before committing and establish what you want to use a credit card for, the rest is easy.Secured credit cards are used in a number of ways. They're convenient because they are used like a regular credit card. However, there is a difference between these credit cards and regular credit cards. These credit cards are secured. If you want a secured credit card, you'll need to put down cash as collateral in order to secure one. It's like making a personal deposit. That deposit becomes your line of credit, available to use when you need it the most. Credit cards that are secured, often times, contain limits as to how much you can deposit on the card at any given time. Most cards will hold up to $500.00. Depending on the credit card company, they may allow you to deposit more. In the end, the bank will reward you for making payments on your credit card - payments which have already been established because it's coming from you in advance as a requirement of using the card. Therefore, owning a secured card will actually help you to establish a good credit rating. In fact, it is the perfect way to get your credit back on track if you're suffering with poor, bad or no credit.Make sure to shop around for your secured card. Every company offers different perks and services, which get attached to your card. That is why it is important to do your research first. Establish what's important. How do you plan to use your credit card? Where will you make the majority of your purchases? Most importantly, you'll decide how best this card will work for you and your current situation. Make sure that whatever card you choose, that the supplier reports your history to credit bureaus. Otherwise, your card isn't helping you build credit, and that is one of the most important factors in using a secured credit card. You will establish good credit and improve your credit rating considerably. You also avoid the risk of running into debt again, because you control what you spend.No-one will ever know that your credit card is prepaid. You can use it in your favorite restaurant and it will look just like any other card. Prepaid credit cards are one of the best ways to make your purchases without the risk of spending more than you can afford. You are completely in the driver's seat.

What Do You Mean By A Secured Credit Card?

Secured credit cards are another very popular breed of credit cards. Secured credit cards, as their name suggests, are secured. Well, they are secured for the credit card supplier, really. Secured credit cards require you to open an account with the credit card supplier and maintain some cash balance in that account. This cash balance acts as a security for the supplier of secured credit card. Your credit limit is dependent on the amount you hold in the account that you have started with the supplier of secured credit card. This is generally between 50 to 100% of your account balance. So in that sense, secured credit cards are not really credit cards (since they don't offer you any credit really). For this reason, the secured credit cards are sometimes also referred as debit cards.Why is the concept of secured credit cards so important?As we know, credit card debt is a raging problem which is caused by improper usage of credit cards. Such people end up spoiling their credit rating to an extent where they cannot get another unsecured credit card (that is what we call the commonly used credit cards). Even after they have paid off their dues and cleared their debt, their credit rating still haunts them. For such people, secured credit cards are a boon. Secured credit cards present them with an opportunity to not only get a credit card in the first place but also to improve their credit rating by using the secured credit card in a disciplined way (paying their dues in time, controlled spending, utilizing a maximum of 70% credit limit etc etc). As they continue with these good habits, their credit rating gradually improves over a period of time. Hence secured credit cards provide them with the means of rectifying their mistakes (credit rating).It's not just the people with bad credit rating who go for secured credit cards. Some people go for secured credit cards because they don't want to bother themselves with the bills etc for credit cards. They don't like to even fill-up application forms for unsecured credit cards.Then there are some who just don't like to borrow money (even if it means borrowing from a credit card supplier by using their credit card). However, such people are very rare to find.Some people just go for secured credit cards because they have heard a lot of horrifying stories on credit card debt - maybe someone from their family or one of their friends was devastated by credit card debt and they don't want to repeat the mistake. So they decide to go for a secured credit card.Whatever be the reason for going for it, the secured credit cards are surely popular too.

Personal Vs Small Business Credit Card

Credit cards seem to have become a fad today. Almost everyone has a personal credit card today (a lot of people have more than one credit cards). Though most of the people use personal credit cards for what they are really meant for, some are unable to decide on when to use which type of credit card.So is there a difference in terms of what credit card - Personal or business, you use for what transactions?The answer very clearly is 'Yes'.Some people use their personal credit card for paying the bills of the small business they run. However, this is not what you should be doing. Personal credit cards are meant for just personal expenses and the business credit cards just for business expenses. So unless you want to utterly confuse yourself and spend hours together on sorting out business and personal expenses, you should not create this confusion in the first place. This confusion is very easy to avoid and just requires some discipline on your part. Just use your small business credit card for whatever spends you do for your business and the personal credit card for the personal expenses.If you feel that getting the business expenses segregated is not much of a problem and you would rather use just your personal credit card, you need to re-consider using a small business credit card. This springs from the fact that the small business credit cards generally carry a lower APR as compared to the personal ones. So it makes more sense to make your business spends on your small business credit cards. Moreover, the small business credit cards also carry a reduced or no annual fee on them.Also, the customer query resolution and support services are much better with the small business credit cards than with the personal credit cards. The credit card companies always give preferential treatment to the small business credit card customers. This is owing to the simple fact that small business owners are much bigger consumers of such services than the personal credit cards. Obviously, the needs of an enterprise are expected to be more than those of an individual. Moreover, if the business grows, it might create more customers for the credit card company (e.g. in the form of corporate credit cards).There are times when one requires quick money for a short period of time. This can be due to some immediate purchase requirements which you are ultimately going to invoice your client to or some other unplanned/emergency expenses. In most of the cases you have a visibility of a month or so in which you are expecting your invoices to clear. Having the small business credit card can be more beneficial in such cases (as compared to a personal credit card).Moreover, as with personal credit cards, the small business credit cards can also help in building your business' credit rating. So when it comes to getting a loan for business expansion, you at least have something to show for the credit rating.

Small Business Credit Cards Advantages

A lot of people associate credit cards with just personal credit card which an individual posses and uses for shopping etc. However, there is another category of credit cards and that is called small business credit cards. As suggested by the name itself, the small business credit cards are meant for small businesses or people running small businesses.So how does the small business credit card differ from the other credit cards in general?The very obvious difference is that small business credit cards have the credit account in the name of the small business and not any individual, though the benefits indirectly accrue to the business owner. The other difference is with the terms and conditions that come with the small business credit cards. Finally, there are some subtle benefits with small business credit cards which would not be applicable to personal credit cards. Let's check all these things one by one.We know that the credit cards provide a lot of convenience and security for an individual and a lot of other benefits too. Most of the benefits related to personal credit cards apply here too. What is interesting here is the indirect benefits that ensue from using a small business credit card.The indirect benefits associated with small business credit cards are so great that it makes them almost indispensable. The most important benefit is that you can easily segregate your business and personal expenses. So if you have been wasting a lot of time keeping track of your business bills and trying to keep them separate from personal bills, small business credit cards could help. You just need to ensure that you always make all your business payments using your small business credit card. When the credit card bill comes at the month end, you will have itemized account of all the business expenses as a single document. Thus small business cards reduce (and in some cases completely remove) the need for bookkeeping for a small business. The credit card company does that for you for free, although indirectly.Another important benefit comes from rolling credit. If you have to pay for your purchases upfront and still invoice your clients later (a situation faced very often with small businesses), you can roll the credit, you are providing your client with, to your credit card. Moreover, since these purchases are mostly urgent, arranging for money immediately can sometimes be a problem. In such cases, the small business credit card is the one which can bail you out. Well, if you are thinking that your personal credit card could do the same for you, you are a bit off the track on two fronts. Firstly, you want to keep your business expenses separate from your personal expenses and secondly, the APR on business cards is generally lower as compared to personal credit cards. A lot of the small business credit cards don't require you to pay an annual fee even.So if you run a small business but haven't got a small business credit card yet, it's about time that you considered this wonderful option.

How to Find the Best Credit Cards Online

Finding Credit Cards online is as simple as a keyword search. They're everywhere. Not only can you find the sites of financial institutions that offer credit cards online, but you can also find reviews from the users of credit cards online, as well as sites of agencies and other organizations that offer a comparison of several credit cards.The Web is now a one-stop shop for credit cards online - for finding the various credit cards online, for comparing the APR (annual percentage rate), the annual fee and the various rewards and points incentives of each. You can also apply for credit cards online as well. We did a quick Google search for the words "apply credit card online" and found 55,900,000 entries. Yes, that's 55 million. Narrowing it down to poor credit risk credit cards online options gave us a mere 11 million plus resources.Just about everyone - especially college students - gets tons of solicitation through the postal service for credit cards. It's not as though credit cards online is your only credit card resource. Although, if you're young and aven't had a card before and haven't applied to college, or you
have poor credit you may not be on anyone's solicitation list for these postal enticements.Credit cards online may be your online resource. Even for those solicited through the mail, credit cards online may still be their best resource. Print media - whether newspaper ads, billboards, direct mail, or magazines - is hampered by space restrictions. The more those credit card advertisers say, the more they pay.Not so with advertising credit cards online. Credit card companies or non-profit agencies are not hampered by the need to be concise. They can, and do, offer all sorts of information about the pricing and perks of their cards, as well as general information on the credit card application, payment and customer service options. Most financial institutions that offer credit cards online are
paying their search engines on a pay per click basis, which means that they pay because you looked at their ad. It doesn't matter how much or how little their ad says. What this does for you is it makes credit cards online the very best, most detailed and informative credit card decision process you can find anywhere.Nor will you find a more secure transaction, then your application for credit cards online. Credit card companies do a top-notch job of protecting your information from prying eyes.There are many terrific things about apply for credit cards online. The first is the ease of finding all the information out there on the various credit cards available. You can easily look for low APR credit cards, free credit cards, poor credit credit cards, college credit cards, or good credit credit cards. You can let the Web sort the credit card wheat from the chaff - online and quickly. You can apply quickly and instantaneously know if you are approved. Credit cards online are fast, efficient and secure.

Finding the Best Cheap Credit Cards

Want to find cheap credit cards? Your best source for information on cheap credit cards is a Web site that not only lets you view the offerings of a variety of credit card companies but also gives you reviews of the various cards by cheap credit card users.Let's take a look at one site that gives us a glimpse into more than 70 credit cards, some of them cheap credit cards, from many countries of the globe.The first, the American Express Blue credit card, was reviewed ten times (score is from one to ten, with one being the worst and ten being the best.) Interestingly enough, this credit card had ratings that ran the gamut from one to ten. Overall, its valuation as a cheap (as opposed to more costly) credit card was 7.9, which is quite good. Customer service rating on this card was not quite as good, but better than average at 6.2. 90 percent of the reviewers, or nine out of ten, recommended this as a good buy if you're looking for quality but cheap credit cards.33 cheap credit cards users reviewed the Aspire Visa credit card. This didn't look to be a good choice for cheap credit card, according to these reviews. Only nine percent of the Aspire cheap credit card users recommended its use, and for overall value as a good buy in cheap credit cards its rating was one out of ten.Accucard credit card, however, even with only two reviews, was a strong recommendation if you're in the market for cheap credit cards. Both reviewers gave this cheap credit card a rating of ten out of ten. What could be better? One reviewer said that this credit card has great rates and low annual fee (making it a top notch choice when comparing cheap credit cards) and, in fact, you have a lot of variety with this card, actually choosing your rate and credit card, and changing that choice as your needs or budget changes.The second Accucard reviewer said that it was the best of the cheap credit cards, currently offering 1.6 percent cash back the first six months you use the card.Virgin credit card, according to the twelve cheap credit cards reviewers that rated it on this site, doesn't seem to be the best choice in cheap credit cards. The overall rating is a very low 1.8 out of ten. At first glance it looks like some pretty extensive accounting and customer service errors on the part of this cheap credit card company. One reviewer talked about a nightmare
experience, especially if you've chosen this card because you need cheap credit cards. First they overcharged the interest, and then they corrected it but overcharged again. Another reviewer said the interest rate on this allegedly cheap credit card went to over 24 percent without any notice.For customer service the Virgin cheap credit card earned a 1.4 out of ten from these reviewers. The same rating was given for value (not one of the cheap credit cards, according to these folks.) Its overall value was a two, with recommendations to purchase from only 17 percent of the reviewers.

Discover Free Credit Cards

There are a great number of people today that are looking into getting a credit card. Some of you may have heard of free credit cards and are very interested in getting one. The idea of free credit cards does sound enticing. If you would like to know about free credit cards, there are some things you should know. Let this be your guide to help you discover free credit cards.First of all, there is no such this as a free credit card. All credit cards cost money, eventually. The cost of the credit cards depends on your APR rate. But if you play your cards right, there is a way to make your credit cards seem free for a short time. The idea of these free credit cards will be explained.Free credit cards are the ones that don't charge you an annual fee just for having them. But there is also another aspect of free credit cards. Many credit cards offer a zero percent APR for the first 12 months to any new cardholders. This means you are never charged any extra fees (APR) for 12 months. So as long as you pay off the balance that you spent within those 12 months, the credit card is in essence, free. Also, if you always pay off your credit card balance each month, the credit card is free because they can't charge you any APR.To get free credit cards, you first need to apply for them. You can apply online, on the phone, or you can fill out the application at home and then mail it in. The easiest way is to apply online. This way you can compare credit card rates and see which credit card companies offer a 0 percent introductory APR and no annual fee to have the card. To find free credit cards online, just
type "free credit cards" into the search engine and then press search.You do need to realize that not everyone can get a free credit card. This sort of thing is usually only offered to those of you with an excellent credit score. With 0 percent APR and no annual fee, the credit card companies would be taking a great risk if they offered this deal to someone with bad credit. So try to apply for these credit cards if and when your credit score is good
looking.This is all of the relevant information you need to be aware of about free credit cards. Remember that all credit cards are not truly free credit cards. If you are wise about selecting your free credit cards, you should be able to save some money. That is the whole point...Isn't it?

Credit Card Vs. Debit Card - What Are The Main Differences

What is a Debit Card?The card you use at the ATM is known as a debit card. When debit cards first appeared it was easy to tell them apart from credit cards. Debit cards didn't have a credit card company logo on them; instead, they usually just had your bank name, your account number and your name.Today debit cards look exactly like credit cards even carrying the same logos. Both types of cards can be swiped at the checkout counter , used to make purchases on the internet, or to pay for the fill-up at the gas pump.When you use your debit card to make a purchase, it's just like using cash. The account that is attached to your debit card, in most cases your checking account, is automatically debited when you use your debit card. The cost of your purchase is deducted from the funds you have in that account.In the case of a credit card, you can pay just 5% of your bill amount and carry forward the balance to be paid the next time. You do not have to settle all in one go. This is referred to as revolving credit.What is a Credit Card?On the other hand, when you use your credit card to make a purchase you are using someone's else's money, specifically the issuer of the credit card, usually a banking institution.In effect, you agree to pay them back the money you borrowed to make your purchase. In addition you will also pay interest on the money "loaned" to you at the rate which you agreed to when you applied for their credit card. This is known as the annual percentage rate (APR).While the two cards might act and look alike, the levels of consumer protection that each type of card provides can be different.Credit Cards offer Better Protection!Under federal law, if someone steals your credit card you're only responsible to pay the first $50 of unauthorized charges. However, if you notify the credit card issuer before a thief is able to make any charges you may be free from all liability. If the credit card is not physically present when an unauthorized or fraudulent purchase is made, such as over the internet, you're also free from liability for those charges.MasterCard and Visa offer zero-liability protection where you won't pay any charges if someone uses your credit card to make an unauthorized purchase.The protection offered to debit card fraud is similar but with a few exceptions. For example, your liability under federal law is limited to $50, the same as for a credit card, but only if you notify the issuer within two business days of discovering the card's loss or theft. Your liability for debit card fraud can jump up to $500 if you don't report the loss or theft within two business days.And if you are the type of person that gives a passing glance to your monthly bank statement, you could be totally liable for any fraudulent debit card charges if you wait 60 days or more from the time your statement is mailed.Visa and MasterCard zero-liability protection applies to your debit card but only for transactions that do not involve the use of your PIN (personal identification number).Additional protection against fraudulent use of your credit or debit cards may be available through your homeowner's or renter's insurance. Check your policy or with your agent for more information about your coverage.Also be aware that you should contact your card issuer by certified letter, return receipt requested, after you've contacted them by phone to protect your consumer rights.As for which card to use for what type of purchase, most experts agree that you should use your debit card for the same type of purchases you'd make as if you were using cash. Therefore, it makes more sense to use your debit card than your credit card at the grocery store or gas station (provided you have sufficient funds to cover these purchases of course).Credit Card Purchase DisputesYou should avoid using your debit card for any online purchase or for something which is expensive. Why? The main reason is that it is much easier to dispute a charge when you use your credit card. Your credit card company will remove the charge until the problem is resolved.With your debit card you are stuck dealing with the merchant directly to resolve any problems with a purchase. The merchant establishment will have a debit terminal. When you give your card to make the payment, the card will be swiped. The moment it is done, an electronic message is sent to the bank which checks to see if the customer has that much money in his/her account. A credit card requires the bank to make a payment to the merchant establishment (online shop, hotel or wherever you spend money using your card). The cardholder has to settle the bill later.

Credit Basics: Choosing and Using Credit Cards

One of the most powerful financial tools that the modern technology has ever-produced is the credit card. And there is definitely no denying that a credit card is an extremely and overwhelmingly useful and powerful financial tool only if it used properly.This small and thin 'plastic' is now responsible for the seemingly endless possibilities of getting things done in just one swipe. Aside from the fact that most people-especially in the US-find these plastic cards more convenient and safe to carry around compared to cold, hard cash, many of them also appreciates the consumer protection provided by the Federal Law.But, with so companies coming out with many kinds of credit cards, it is no wonder that many people get confused and overwhelmed by the "convenience" each and every one of them offers. Since people have very diverse and different credit needs, they must be very careful in choosing the right credit card for them so that they could avoid the portent of credit traps.While it is true that there is no single credit card that will fit everyone's need, it doesn't mean that consumers should just take in what these creditors offer. Before your credit card lead you to a path wherein you owe more than you can afford repay, or before it damages your credit and would create trouble by careless usage, here are some vital information that can guide you to choose the right credit card for your need.SURE-FIRE FORMULASThe most basic tip in choosing and using any credit card is to identify first your credit need. You must ask yourself why do you need it and when do you need to use it. If education, health, home improvement, and business are some of your reasons, then you should start looking for a credit card. But if it is for purely convenience in purchasing the things you need, think twice and hard first. Before getting one, you must have a specific target where you can use your credit card wisely.After defining your credit need, you must conduct a credit card research so you can review and compare the credit cards available in the market. This may seem very general and vague but this is the most basic thing one should do if you plan to apply for a credit card. You may research first what are the available credit cards out there. As you may know, there are actually hundreds of banks and other finance agencies that are offering credit cards and each of them has a lot to say about their product.By doing research through online and offline resources, you can learn more about credit card offers and ratings. After doing an extensive research on all of the cards, you may now review what they offer and start the "elimination process." By reviewing all these credit cars, you can create some sort of chart for you to see side by side and compare what important features each credit card offers.You must choose a credit card that can easily establish and strengthen contact with credit unions. Once you apply for a credit card, you become a creditor. It will be beneficial for you if you belong to a credit union since these are non-profitable organizations. They also offer a lower overhead that can offer you numerous advantages like lower interest charges.Try looking for a credit card with a low Annual Percentage Rate (APR) or the measure of the cost of credit expressed as a yearly interest rate. In choosing the right credit card, it is a must that you check out the APR because this is the amount charged to you on monthly outstanding balances. Bear in mind that the higher the rate, the higher the chances you will pay relatively high interest charges.Also consider interest rates and find out what if a fixed-rate or adjustable rate credit card would suit you best. Many people-especially those who pay off their balance monthly or those who only use cards for small purchases-opt to use cared that has a fixed rate. Even if the rate is a point or two higher than the usual, it ensures that they can pay off their loan quickly without even noticing the difference.Fees can be considered one of the bloodlines of most credit card companies. In addition to your research, you should never forget to do an extensive research on credit card fees, transaction fees, and other charges. Since numerous companies are infamous for charging their clients fees that add up quickly, you should make sure to check the fees section of the credit card disclosure section before fully indulging into it. This is also one way of knowing the recognized fees collected like annual fees and cash advance fees.Also consider length of Grace Period or the amount of time between the date of a purchase and the date interest starts being charged on that purchase. So you would know how much time you can buy before you make your payment.You must also consider taking credit cards that offer other benefits and make sure to understand all necessary and additional terminologies in the contract in your credit card application and acquisition. Lastly, take into consideration your credit limit for your ultimate credit experience.To apply online for a major credit card, visit Credit Card Info Guide

I'm a Credit Card Deadbeat: You Can Be One Too!

I am delighted to say that I am a credit card deadbeat! In fact, some of you might already be credit card deadbeats too, if so, I commend you for your excellent work! Now, as for those who don't know what a credit card deadbeat is, before you start thinking I have a screw loose, you may want to continue reading!When I say that I am a credit card deadbeat, I don't mean that I avoid my credit card bills. To the contrary, a credit card deadbeat is the insider term used by credit card company executives and refers to all of the credit card users who pay off their bill each month promptly; in doing so, such customers pay no interest and prevent the creditor from making any profit! That's me! I love being a credit card deadbeat!The alternative to being a credit card deadbeat is what credit card executives call a revolver. A revolver is a credit card user that constantly carries a balance and is charged regular, monthly interest on their charges. Credit card companies love revolvers because they, in essence, increase the bottom line for the credit card company and make them a nice profit. Further, from an insider perspective, the best customers not only carry a balance, but also make their payments late, triggering extra fees and a higher interest rate.Okay, so I've been a credit card deadbeat for awhile now, but last year I went even further in improved my deadbeat ways. Not only did I hang onto my hard earned cash by refusing to line the wallets of the credit card companies, but I also happily lined my own wallet with their money, to the tune of $1,402. Yes, that's right, they paid me $1,402 to use their cards; continue reading to find out how!Cash Back Credit CardFirst, I applied online for a Cash Back Credit Card and I was instantly approved. My new cash back credit card arrived to my house the following week ready for me to use. This card offered me 0% APR for 12 months and carried no annual fee; With it, I made all of my gas purchases, as well as grocery and drugstore purchases and earned 5% back cash back on the gas purchases and 1% back on all other purchases. I have a family of four and the gas purchases included gas for my spouse's car as well. My average monthly purchases and cash back earnings were as follows:Monthly Gas Purchases $325 x .05 = $16.25Monthly Grocery Bill $1,200 x .01 =$12.00Monthly Drugstore Purchases $160 x .01 = 1.60Total Cash Back Earnings From Credit Card $ 29.85 x 12 = $358.20Airline Rewards Credit CardI also applied for an airline rewards credit card and again was instantly approved online. Like the cash back credit card, my new airline rewards credit card arrived the following week, came with a 0% introductory APR for 12 months and had no annual fee. This credit card earns 1 frequent flyer mile for every $1 charged.I charged many of my miscellaneous expenses, including major purchases and business expenses, on my new Airline Rewards Credit Card. As a result, the qualified expenses came to an average of $2,250 monthly or $27,000 for the year, earning 27,000 frequent flyer miles, more than enough for an airline ticket to Hawaii: a $500 value!0% Introductory APR for 12 Months Now here's the kicker. Since both credit cards came with a 0% introductory APR for 12 months, I paid only the minimum payments on each card and placed the money for my purchases into a savings account earning 2.5% (rates have gone up since). Using averages for simplicity, I made 12 monthly deposits of $3,935 into a savings account earning 2.5% interest compounded monthly. By the end of the year, I earned $544 in interest!My Total Credit Card Earnings for the YearSo here is my total earnings from the cash back credit card, airline rewards card, and interest earned.Cash Back 12 x 29.85 = $358Free Airline Ticket $500Savings Account Interest $544Total Earned $1,402Just to make sure I maintain my deadbeat ways, now that the 0% introductory rate has expired, I've paid off my balance from the money I deposited into my savings account during the year. To be a credit card deadbeat you need persistence, determination, and discipline. I did it, and so can you!