Miles Credit Cards Questions Answered The Lowdown On Low Interest Rate Credit Cards What Can You Do If You Have Problem Fixing Your Credit Report Best Credit Card Processing Rates
Before you decide to apply for miles credit cards there are a couple of questions you should ask yourself. What benefits are offered by the airlines for their respective miles credit card? What miles card would give me the most in a small amount of time?
Whether you choose a miles credit card that is sponsored by an airline or one that is sponsored by more than one, they normally allow the cardholder the benefit of collecting points to use on their airline or any respective airline that is sponsoring that specific card. The problem may be that the airline or airlines with this miles card do not have regular flights to your destinations.
Many banks are now offering miles credit cards with many more benefits such as choosing from a list of airlines and destinations. If you only use one airline then you may wish to choose the miles credit card from your airline that will only allow you to gain points while traveling with them and only use them for transferring your points into free flights, hotel accommodations, and car rentals. However, if you normally do not travel with just one airline, choosing one that gives you the freedom to use several airlines will be much more beneficial to you in the long run.
Miles credit cards are very advantageous to those that travel regularly for business purposes, as they will be accumulating a significant amount of air miles points over time. Then these points can be redeemed for free airline tickets from the earned air miles. In essence, everything you purchase utilizing your miles credit card will be working toward free air miles and free travel. You can use your points to gain such things as free or discounted airline tickets to your favorite destinations, hotel accommodations and car rentals.
Every airline or credit card company that offers miles credit cards have different credit card tiers such as gold, platinum, or bronze. Each one of these also carries different incentives. Most of these miles credit cards will have either what they call a membership fee or an annual fee. What this really means is the more rewards you are offered the more you will be paying in fees. You will be able to get a higher credit limit, however, your annual fees may be higher as well.
Many miles credit cards have introductory offers that will give you 0% APR for the first few months or sometimes as long as 12 months, after which the APR usually raises considerably. Therefore, you must pay close attention to what the APR will be after the introductory special.
Remember, if you do not use your accumulated points in a designated amount of time the points that you gained while using the miles credit cards will expire. If you do not plan on traveling and making enough purchases to redeem the points then miles credit cards may not be the way for you to go.
Low interest rate credit cards are useful for those who carry their credit card balance forward every month. However, not all applicants for a low interest rate credit card actually manage to acquire one. The reason for this is that these cards require a good to excellent credit rating, which precludes many potential cardholders.
There is sufficient information available online for an individual looking out for a low interest rate credit card; these cards are advertised aggressively. The average rate of interest with a low interest rate credit card is around 9%; it can go down to 5.5% for individuals with exceptional credit scores. Individuals with poor credit scores can negotiate with credit card companies for a deal that suits their requirement — the company may agree if the individual has had a steady income for the past few months and is likely to continue earning in the future.
Companies that offer low interest rate cards try to compensate for the low rates in various ways; these include an annual fee which may be up to $60. The actual rate of interest can be much higher than stated when the annual fee is considered; one should try and obtain a card that does not charge an annual fee. Often, credit card companies waive the annual fees upon request.
Low interest rate credit cards are often advertised as offering a 0% APR for the introductory period. This is a strong enticement for credit card prospects that spend heavily during the initial period only to find the interest rate escalate to upward of 15% at the end of the introductory period. A low introductory rate is fine if one plans to transfer a balance from one card to another, but otherwise it should not be considered as one of the influencing factors when selecting a low interest rate credit card. Low interest rate credit cards also try to make up for the low rate of credit by charging high balance transfer fees; sometimes these fees can be as high as 3% of the transfer amount. Therefore, it is important that one carefully reads and understands the terms and conditions related to a low interest rate credit card before signing up for one.
Low interest rate credit cards charge either a variable or a fixed rate of interest. A fixed rate of credit is advisable for card holders who are in the habit of carrying their balances forward every month. These cards also offer the opportunity for debt consolidation. One can transfer the balance from other cards to a low interest rate credit card that charges either no or low transaction fees, and the savings on the interest can be diverted towards paying off the principal.
Have you ever had a problem that just won’t be resolved? The endless phone calls, letters and hours of worry can really start to get to you.
Often, there are mistakes made on credit reports that are difficult to correct. Perhaps someone else’s account is showing up on your credit. Maybe a lender reported the wrong information. I had a lender once report a late payment, while providing a payment schedule that showed I never missed a payment. They refused to remove it, saying that it was indeed late, though they couldn’t give the month it was late. Another lender said that I sent them a check that came back as non-sufficient funds, when it had been an electronic debit over the phone. They had submitted the routing number as the account number, causing the missed payment. Yet they argued with me for days that they were “holding in their hands” the check with NSF marked on it. It took a phone call from my bank to straighten it up.
It can be frustrating. Yet, vital. Your credit report dictates what you pay to borrow money and have insurance coverage. A mistake can cost you thousands of dollars if not cleared up.
You’ve gone through the appropriate channels and provided all of the necessary paperwork. Yet, the creditor still refuses to fix the report. What do you do now?
You can start by writing a statement of up to 100 words that states your dispute of the accuracy of a credit report item. You then submit it to the credit bureau. It will be added to your credit report at no charge.
The law, through the Equal Credit Opportunity Act, requires lenders to consider information that shows that your credit report may be inaccurate. You simply provide the lender with the documentation that proves your dispute. It is best to do this in advance of the lender’s credit check. That way, you are all prepared.
If you feel it is the credit-reporting agency’s fault that the inaccuracy remains on your report, you could sue the credit-reporting agency under the Fair Credit Reporting Act for “negligent” or “willful” noncompliance. If you win, your court costs and attorney fees will be paid.
You can continue to gather your documentation and re-submit your dispute. Perhaps new info and a new set of eyes at the agency will lean more your way.
In general, the best way to remove something is to have the creditor request it be removed. You may be required to provide the creditor with your documentation. They will not admit to having it right out. For example, a credit card company recently sent me a credit card in my maiden name for my mother’s account. She had never requested me to be added to her account. When it showed up on my credit report after three requests to be removed from the account, I was angry. The company swore that they had no records of my name ever being on the account, but that they would have it removed from my credit. It took six months.
Make sure you check your credit report three times a year. You are entitled to one free credit report annually from each of the three major agencies. You can go to www.annualcreditreport.com for more information. When applying for a loan, ask what your credit score is, just for curiosity. Most credit scores can be purchased online for less than $10. Make sure you check your FICO score, as it is the one used by lenders.
Everyone goes into business to make money, so why spend more of your profits on expensive transaction fees, Website maintenance, service agreements and high credit card processing rates? When you take time to shop for the best deals, you can save quite a bit of money that can be used to good purpose in other parts of your business. Start shopping for the best credit card processing rates and open a merchant account.
You will first need to find a reputable bank or credit union that will agree to extend a merchant account to you for this purpose. To get approved, you will need a solid credit history, a reasonable business plan, and documentation to show that you are able to manage the costs associated with credit card processing rates. Typically, these include an installation fee for credit card processing equipment, a monthly gateway fee for your financial host, a transaction fee of a few cents per each or an overall percentage total each month. You also may be offered Website service that will entail a hosting fee, a service contract cost, and a designer’s or updating service fee. Be sure to carefully read the terms of any contract that you receive. Never sign something that you don’t understand or with which you cannot completely agree. Your company may have to pay for a monthly minimum up to a certain number of transactions, after which the balance for that month do not require additional fees.
Credit card processing rates can vary by company or by processor program. Some companies charge no installation fee, while others require a one-time cost of a few hundred dollars, depending on the program’s complexity. You may have to pay between 15 and 25 cents per transaction, or you could opt to pay a monthly percentage for the entire amount of business generated by your credit card processing unit; this amount often falls below 2%.
It is always a good idea to compare rates among competing financial institutions. If you really like the services offered by one merchant account company but prefer the lower rates of a second company, tell the first one about the competitor’s lower rates, and perhaps the first company will meet or beat the lower cost in order to get your business. At first, you may want to keep the customer’s interests in mind when shopping for credit card processing rates. In other words, passing on the savings of a particular program to your customers will keep them coming back to do business with you. If your rates are too high or not competitive enough, they may decide to take their business elsewhere.
As you plan to set up your new credit card processing service rates, it may help to let them know in advance that this program is coming so they can prepare and perhaps even help to get the word out to other potential customers. Then, after installing your new credit card processor, you should not hear complaints that anyone was blindsided or treated unfairly. If someone does complain, politely remind them of the earlier notices.
When you are ready to start processing credit card payments, don’t be tempted to go for the option with the most features or the most sophisticated set-up. Opt for a system that will best suit your company needs and your customers’ interests, as well as offering the best credit card processing rates..
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