Archive for the ‘Credit’ Category
3-in-1 Credit Report Is Car Buyer’s New Best Friend
December 6th, 2011 | 
Author: You’ve researched the perfect car to buy and the perfect time to buy it. But have you checked your credit report and credit score? A quick review of your credit report online before you visit dealerships can save you both time and money when you are ready to make your deal.
1. Give that credit report a tune-up.
Check your credit report early in the process to avoid embarrassing or costly episodes at the loan desk.
• Get the facts first. Having your 3-in-1 credit report from TransUnion’s TrueCredit.com before you shop for a vehicle allows you to compare and review your financial information from each of the three credit bureaus: TransUnion, Equifax and Experian.
• Check the accuracy of your 3-in-1 report. If you find any mistakes, report them immediately.
• Are your credit card balances high? Reducing these or paying off small debts can sometimes boost your credit score and save you money on a loan.
• A few months of prompt bill payments can improve the way lenders view you.
2. Don’t overextend yourself.
Brand new sports car vs. used and practical? Before you decide which car is right for you, it’s a good idea to see how much you can really afford.
• After all your other bills are paid each month, how much do you have left to put toward a vehicle?
• Do you have a trade-in or down payment? These can help you negotiate a better rate with lenders and can be especially important if you have problem credit.
• Calculate your debt-to-income ratio by dividing all your monthly payments by your gross monthly income. Make sure to add in your expected new car payment. A ratio greater than 30 percent may be a red flag to lenders.
3. Do your financing homework.
Applying for an auto loan doesn’t have to be stressful if you arrive prepared. Consider the following:
• Be ready to discuss your income, occupation, home loan and credit history.
• To negotiate the best loan, check the rates banks and credit unions will offer you before visiting a showroom to make your final deal.
With these tips and your credit report from TransUnion’s TrueCredit.com in hand, you should be well-equipped to negotiate a better deal on your next car. Now, go get ‘em!
0% APR Credit Cards – What You Need to Know
0% APR credit cards are an appealing option for frequent shoppers that rely on having a low monthly interest rate when they cannot pay off the entire balance of the credit card in any month. But what you really need to know about 0% APR credit card offers, often times is never discussed.
For starters, the APR is the commonly-used acronym for “Annual Percentage Rate,” which is the annual month-to-month rate that you can expect to get for your credit card balance. Naturally, if you frequently carry your credit card balance over from month-to-month, it is important for you to have a low or even 0% APR credit card.
How it Works
Every credit card company makes money when shoppers use the card, but do not pay off the balance at the end of each month. Because the credit card company has lent shoppers money so that they can make their purchases, the credit card company will charge interest on the balance until the entire balance is paid off. The credit card company has the potential to make a generous profit from the balances of their customers each month. Naturally, as a consumer, having a 0% APR credit card means that your balance is carried over from month-to-month without any charges applied.
Beware of High Interest Rates
It may seem like credit cards actually lose money by investing in a 0% APR credit card promotion. However, the 0% APR credit cards actually help credit card companies find customers. For example, if there is a shopper that has a high APR (some are up to 20%) and he or she is having a hard time paying down the balance of the credit card, the purchaser is in an ideal situation to transfer their balance to a 0% APR credit card for a period in which they can focus on working down their debt. The situation is ideal for someone who is in short-term debt. However, to balance the 0% APR credit cards against the credit card company’s need to make a profit, as soon as a trial period expires, many credit card companies will increase their rates drastically. As a consumer, you need to read the fine print so that you are aware of the deadlines associated with this change-over.
Where to Find a 0% APR Credit Card
It may seem harder than it really is to find a 0% APR credit card. It’s advantageous to find a card that doesn’t require you to pay a month-to-month rate on the unpaid balance. However, credit card companies frequently enact 0% APR credit card promotional deals, so take a look around for what deals are available to you currently.
0% APR credit cards can make managing your debt very easy. While most of them do not require annual fees, it is important for you to understand what you are agreeing to before you sign a contact with a company. While most 0% APR credit cards eventually increase the rate after a set period of time, the duration of the promotional period varies by company. As with any credit card agreement, a little research and education into the details of a 0% APR credit card can go a long way towards helping you make a decision that can positively effect your finances. Choose wisely!
Are Platinum Rewards Credit Cards Worth the Annual Fees?
Many of the companies issuing rewards credit cards offer prestigious platinum card to Australian consumers with excellent credit at incomes in excess of $50,000 a year or thereabouts. These cards offer points per dollar spent like regular rewards cards except platinum cards typically allow cardholders to earn points much faster. Instead of one point for each dollar spent, it could be two or three points per dollar charged on the card.
These platinum credit cards with their enhanced rewards program come at a cost. The annual fee is typically much higher than it is for regular rewards cards, $395 per year is not uncommon. While this sounds excessive, the platinum cards also come with freebies like free return flights or free hotel stays and free travel insurance and purchase protection insurance.
If your considering one of these rewards cards, you’ll have to analyze your spending patterns to see if you would earn free rewards quickly enough to cover the annual fee each year. Also, if the free flight and whatever you earn is not something you would want to use, you miht be better off with a different type of card. Be honest, too. If you keep running a balance, you’ll never earn enough of a reward to cover the cost of the card. However, if you use the card frequently and have no trouble paying the outstanding balance each month, you could make out very well.