StockScouter - Quantitative but Intelligent Analysis : Business Intelligence applied to Stocks

StockScouter takes Data Analysis with Gradient Analytics and adds intellectual facets to pick top 10(top 50) stock picks.

These stock picks assure you a gain of around 25% by following a sure buy and sure sell strategy having duration of six months.
Means, you just need to buy the top picked stocks, hold them for 6 months period, and sell it.
That easy. and You will be getting on an average 25% return. That can triple the amount invested along the 6 years.

You can decide your budget, and divide it between the stock picks and purchase them, hold the stocks for six months and sell at the end. The only thing is that you have to have faith and courage to do it at the given time. Sometimes, you may find that stocks are rewarding you and you start loving them. But, then stick to the StockScouter picks and its strategy.

If you want to find out why StockScouter strategy should work and what are the current picks, read the complete story here.

Following Buffet Steps of Investing

When measuring a company's reliance on debt, it's usually helpful to begin by examining its debt-to-equity (D/E) ratio. D/E can be easily calculated by dividing a particular company's total debt load by its shareholder's equity. Both of these key figures are located on the balance sheet. There's no hard-and-fast rule for evaluating this metric, but as a broad average for non-financial companies, it's usually wise to look for firms with D/E ratios below 0.50 (50%).

Time is the enemy of the poor business and the friend of the great business. If you have a business that's earning 20%-25% on equity, time is your friend. But time is your enemy if your money is in a low-return business.
25% ROE is best. And go with ROE > 15%

Look at ROE for more than 5 yr
looking at the current figure in isolation only tells part of the story, so check to see whether ROE has been falling, rising, or stable over time. Also, if a company has a particularly strong year, then its net income figure can be inflated, which can cause ROE to be exceptionally strong. Such one- or two-year blips have a tendency to fade quickly once the business environment becomes less favorable. Therefore, it's always important to examine ROE performance over a five- or ten-year period.

High ROE and Low D/E
By taking on additional debt, companies can effectively lower the amount of shareholder's equity they need to stay in business. By definition, this tends to inflate ROE. Therefore, its crucial to look for companies that have a high ROE and low D/E.

Cash Flow
One way to gauge a firm's cash flow production is to examine its free cash flow yield. This is calculated by dividing free cash flow by market capitalization, or the inverse of the Price/FCF ratio. A firm with a free cash flow yield of 10%, for example, generates 10% of its total market value in cash each year. That cash, in turn, can be used to pay dividends or fund share buybacks -- items that enhance shareholder returns.

The Debt Reality

Between 1997 and 2007, 8,815 American companies worth $1,302,946,906,459 were acquired by foreign countries, sending U.S. wealth and opportunity abroad. Just today the Economic Policy Institute reported that real wages for American workers are declining: From 2003- 2007 median U.S. hourly wage dropped more than 1%.
The average American in 2005 had a -1% savings rate, the lowest since the great depression, and a product of an economy that continues to squeeze the middle class and allow the flight of its best companies overseas.



Read Complete Story

Money for life: The hidden costs

A modest proposal: Make the sellers of variable annuities tell people how much they're really paying for their investment.



NEW YORK (Money Magazine) -- If you'd like to help thousands of people who are saving for retirement (and maybe even yourself), I have a suggestion. Tell the Securities and Exchange Commission to get off its duff and pass rules improving the disclosure investors get about variable-annuity fees.


The SEC has been mulling this issue for more than two years now. But when I called the agency for a status report recently, I got no hint as to when - or, for that matter, if - new rules might see the light of day. That's a shame. Because judging from the e-mails I get, only a tiny fraction of the investors who have some $1.4 trillion sitting in variable annuities know that they're paying more than they would to invest in regular mutual funds.

Read Complete story

File Sharing Threat to Security: Mortgage Data Leaked with SSN

Three spreadsheets containing more than 5,000 Social Security numbers and other personal details about customers of ABN Amro Mortgage Group were inadvertently leaked over an online file-sharing network by a former employee.

Tiversa Inc., a Pittsburgh company that offers data-leakage protection services, traced the origins of the ABN data to a Florida computer with the BearShare software installed.

With such peer-to-peer sharing systems, files are obtained directly from another user's hard drive rather than a central hub like traditional Web sites. As a result, once a file begins to circulate, copies can sit on computers all over the world, ready to be grabbed by other users.

Boback said Tiversa had yet to perform a full analysis to see how far the data had spread worldwide, but found evidence the files already had moved beyond the former employee's computer.
"There is no question in my mind that ... identity thieves have these files, and if they haven't already, they will be acting on them very soon," Boback said Friday.

Earlier this month, a Seattle man was arrested in what federal authorities described as their first case against someone accused of using file-sharing computer programs to commit identity theft.

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Recession Probability in USA!!

THE employment statistics and the bond market are combining to send out a warning that has been heard only rarely in the past two decades: A recession is coming in the United States.

The two charts show the double warning. Both charts warned of an economic downturn before the 1990 and 2001 recessions, and they are doing so again.

Read Complete Story from NY Times

My Conversation with Money

The next time you walk down the street, ignore the sound of traffic and look around -- you will hear money talk. And the sound will be deafening.
Yes, wealth has a language too.

Spend, invest, loosen your purse strings
Look at the billboards, newspapers, shops, and malls.

When you go to the mall, what is it saying to you? "Come step in. I am so pretty. Feel free to open your wallet!".

Think again; is it really the mall inviting you? It’s not the mall; it's money, which tells you to give as much as you can. It's also claiming a stake on your unearned money; by enticing you to pay in installments.

License to spend
Look around some more. There's a company out there asking you to give it money to expand via an IPO. A mutual fund is enticing you by promising to grow it for you. Look at stores, which offer a promotion. And look at all transactions taking place around you, in general.

Money talks all the time
You earn well, and think you can afford it all. You're a member of a gold or platinum club. Basically, you were being flattered. And you gave into this flattery.
You spent that money and lost an opportunity to create wealth while someone on the other end has added to his wealth. So, while your money is asking you to spend or accumulate wealth, ultimately, you choose what you want to listen to.

When you spend, someone else makes money
The idea is simple. You earn money and spend it on some service or product. That service or product provider spends it and consumes some other service or product. Cycles of transactions happen. As a result of these transactions someone becomes wealthier than others.
This is not to say that you should not consume what is essential and sometimes even what is luxurious. That is necessary and important but it is also a fact that there is obviously no equilibrium. Someone there has a better business model or service capability. The rule of life is that the best person wins. Get the logic?

Microsoft/Walmart/Verizon was not built in a day...
Here begins your journey of listening to money. There's a three-point action agenda ie desire, strong desire and unflinching desire.
You must have the desire to do something. and it can’t happen because I am telling you or because you decide that from tomorrow you will increase the desire meter in your mind.

Microsoft/Walmart/Verizon was not built in a day. It took long years of unflinching desire, persistent effort and consistent reinvention to turn it into the company it is today.

That feeling of desire will come to you naturally, wait for it because if you really want it and work persistently toward it, it will come to you on its own.
And when it does, it will call for groundbreaking hard work. Too many people shy away from hard work.
Consider what will make you the best doctor, lawyer, manager or CEO in the world? When you crack this, wealth will find its way into your home.

- Credit: Kartik Jhaveri, an expert at Financial Planning, is a Certified Financial Planner and a Chartered Wealth Manager.

Charitable Gift Annuity - Saving Tax

A Charitable Gift Annuity is a contract where an individual (called a donor) gives an irrevocable gift of value (cash or other asset) to a qualified charity and in return receives a charitable tax deduction. For this gift, the charity agrees to make a payment of a fixed amount of money to the donor(s) for the remainder of their lifetime. These annuity payments are not considered "income" and a portion of each payment is considered to be a partial tax-free return of the donor's gift, which is spread over the donor's lifetime. The gift becomes a part of the charity's assets and the payments are a general obligation of the charity. The annuity is not just backed by the value of the contribution, but is backed by the charity's entire asset base. When the donation is in the form of securities, the value is determined by the fair market value on the date of the gift.
Charitable gift annuities are regulated by most states. They require a published gift annuity rate chart of the maximum annuity rate the charity offers each annuitant which must show the age to the nearest birthday (actuarial age) on the date of the gift. Charities are allowed to spend a portion of the gift immediately, but they must maintain sufficient reserves, which are determined by state regulations, and satisfy all other state regulatory requirements.
Charitable Gift Annuity Agreements There are several types of charitable gift annuities, and not all states permit the use of each type. Generally the charity must submit a sample of each different type of agreement it wishes to offer to the residents of that state before it issues that agreement. The types of gift annuities are:
Immediate Gift Annuities Periodic annuity payments can be made monthly, quarterly, semi-annually or annually, as defined in the agreement. With the first payment to start at the end of the period (month, quarter, etc.), immediately following the contribution.
Deferred Gift Annuities Deferred gift annuities provide for payments to begin at a date in the future, which is chosen by the donor, but must be more than one year after the date of the contribution.
Tuition Gift Annuities The annuity payments start upon the annuitant(s) attaining a specified age. Generally these types of gift annuities are created by a parent or grandparent for a young child, with the donor deferring the payments until the child is expected to enter university. The annuitant(s) then has the option of accepting the annuity payments for his or her lifetime, or elect to receive much larger payments for a term of four or five years, as defined in the annuity contract.
Flexible Gift Annuities This annuity has an annuity payment starting that is chosen by the annuitant(s). The donor chooses an initial "target date" for the payments to begin. The charity then offers a range of payouts with different fixed payment amounts and a variety of starting dates. Because the charitable deduction remains fixed, the annuity rate for each starting date changes. If the starting date is earlier, the payments would be lower and if the starting date is later, the payments would higher. The annuitant must decide on an annual basis whether or not they wanted the annuity payments to begin that year.
Agreement Versions There are three versions of each type of agreement. They are:
"single life" agreement - annuity payments for the annuitant's lifetime,
"two lives in succession" agreement - annuity payments for the lifetime of the annuitant and then pay a second person if he or she survives the annuitant, and "joint and survivor" agreement - annuity payments to a husband and wife simultaneously, each getting half of the payment, and upon the death of one of the annuitants, pay the survivor the full annuity.

401K vs. Roth IRA

Generally, it's best to invest in your 401K plan first, up to the amount your employer will match, then to invest in a Roth IRA. If you have additional funds to invest after making the maximum contribution to your Roth IRA, you should max out your 401K, and then invest in taxable accounts. There are always exceptions, however, so here are some points to consider when deciding the best order to invest your retirement funds:
Matching Contribution - many employers will provide a matching contribution when you elect to participate in the company 401K or other employer sponsored retirement plan. This is free money, and should be taken advantage of even if your 401K plan isn't the best due to poor investment choices, high expenses, etc. There is no matching contribution for a Roth IRA, so you should invest in your 401K up to the matching contribution first, before you invest in a Roth IRA.
Investment Choices - Most 401K plans have a limited number of investments to choose from. Roth IRAs can be opened just about anywhere: mutual fund companies, brokerage firms, banks, etc., which means your investment choices are unlimited. If your 401K plan has limited or poor investment selections to choose from, the Roth IRA may be the better choice (after you contribute enough to get the matching contribution in your 401K plan).
Taxes - although your 401K contributions are tax-deferred, which allows more of your money to go to work for you, money invested in a Roth IRA grows tax free. As long as you follow the rules, you may never pay taxes on the earnings in a Roth IRA. If you expect to be in a higher tax bracket when you retire, this could result in substantial tax savings.
Because withdrawals from a 401K account are taxed at your ordinary income tax rate, withdrawals could potentially push you into a higher tax bracket. If you have a combination of 401K and Roth IRA accounts, you have greater flexibility in choosing which account to withdraw from, which could allow for tax planning opportunities to help minimize your taxes during your retirement years.
One more note regarding taxes: 401K, traditional IRAs, and other employer sponsored retirement plans are subject to the Required Minimum Distribution rules; Roth IRAs are not. Again, having Roth IRAs in combination with your 401K accounts can provide tax planning opportunities not available to people who only have 401K accounts.
Withdrawals - your contributions to a Roth IRA are available to you penalty and tax-free at any time. Your earnings in a Roth IRA may also be withdrawn at any time. There is a 10% penalty, but this penalty may be waived under certain circumstances (disabled, first time homebuyer, qualified higher education expenses and more). Withdrawals from a 401K plan are much more restricted, as employers may or may not allow early withdrawals or loans.
Automatic investments - contributions to your 401K account are automatic since they come directly from your paycheck. This makes investing in your 401K easy and convenient, and after you've started contributing, most likely you'll no longer miss the money being invested. Investing in a Roth IRA takes more effort. Although many Roth IRA custodians will allow you to setup an automatic investment plan from your checking or savings account, it takes more discipline to invest in a Roth IRA than it does to invest in a 401K plan. If you think you don't have the discipline to invest in a Roth IRA account, then investing in a 401K plan (even a poor 401K plan) is better than not investing at all.

Though, everyone has own viewpoint, problems and situations...so....

Need for Building Residual Income

it's important for you to take control of your finances. Implement a stream of money that your household budget hasn't already consumed. Building residual income in alternative ways is a great way to start this.
Residual income is income that is generated from somewhere other than your primary source of income. Residual income occurs after the effort to generate the income has already occurred, such as purchasing real estate for rental properties. Purchasing the rental property is the event that has occurred to generate the residual income, which is the actual rent that is being paid to you for use of your rental property. And it didn't even take away from your day job!
Be sure not to confuse residual income with linear income, a term that is often used in conjunction in general discussion. Linear income is generally classified as income that can be calculated using a numerical formula; it is directly related to the number of hours that are invested in creating the income. Having a day job lined up usually qualifies as having a linear source of income; having rental properties as well as a day job qualifies as having residual income as well, or multiple streams of income. This is a good thing!
Building residual income is one of the best things you can do to ensure financial security for not only yourself, but your family and generations to come. It's a way to make sure that, even though the primary source of income may dry up due to illness, lack of work or other issues, money is still streaming into the household. It is income that occurs outside of your primary employment, hence the word "residual".
Building residual income does not always involve work though. There are many ways of doing it, it's really just a matter of how quickly you would like this extra income generated. Stocks and bonds are a source of residual income, as is a savings account that you earn interest on. Normal savings accounts don't usually have an interest rate worth mentioning as a source of residual income, but it certainly is a start!

Investing in Gold Coins

When you have a child, or even before you do, start collecting gold coins. When your child grows up, cash them in to send your high school graduate to the University of their choice. Your child can do the same for your grandchild. Collecting gold coins can make something special for your family. It can make your family special. Even rich and famous. Can it be done? Has it been done? Well, do you recognize any of these family names?
If you have heard of the Adams family, or the Brand family, or the Dupont family, or the Royal Farouk family, or the Garrett family, or the Green family, or the Hopkins family, or the Hunt family, or the JP Morgan family, or the Onassis family, or the Rothchild family then there is a good reason why. They built their fortunes from collecting gold coins.
Take for instance Mayer Amschel Rothschild. He worked in a coin shop, which made the way for the Rothschild's destiny as the richest family in the world. Because it is there that he learned the value of collecting gold coins. That is how he made his fortune. That is how he was able to open a bunch of banks.
People were getting so outrageously rich from gold coins that the government just had to step in and take them away. And the gold bullion and gold certificates too! If you owned them you were an outlaw. If you didn't turn them in you had to go to jail for ten years and pay twice the value of your gold plus ten thousand dollars on top of that. Thanks to the gold confiscation of April 5th 1933 by the Executive Order 6102 of President Franklin D. Roosevelt, the government had to build Fort Knox to hold its enormous collection of gold!
The people of our land of opportunity have been denied this most lucrative investment for forty-one years until... the last day of December 1974. That is when President Gerald R. Ford signed the bill authorizing private ownership of gold. Happy days are here again! Gold is legal again!

Trust Strategy for Mutual Funds rather than only ranks

A month ago, Scott(a cautious investor by habit) decided to invest Rs 3 lakh in a 'good' mutual fund.
He looked up the performance rankings of various funds, to try and zero in on the best fund. But a month later he is still confused, because there was no consistency or consensus amongst rating agencies.
Different financial web sites, magazines and newspapers came up with different conclusions as to the top rated funds.
This is because, the rating methodology adopted differs from agency to agency.
In a bid to prove that they are special and more incisive than the next agency, they adopt all kinds of techniques and statistical tools to come up with dissimilar results.
Why rankings differ
Most agencies adopt risk adjusted ratings, however, the definition of risk differs from agency to agency.
Some adopt the Sharpe ratio, some use the Sortino ratio and yet others look at standard deviation and beta.
Then there are others who choose particular parameters like size of assets, portfolio turnover, tenure of the fund manager with the fund, fund size, expense ratio then proceed to assign weights to each of these parameters to arrive at a composite ranking.
Others declare that they use a proprietary system which remains unknown to the public at large.
So, how do you pick the best fund?
Here are three simple steps to sort out the good from the bad.
1. View rankings with a pinch of salt
Most of these arcane rating methodologies are solutions in search of problems.
Don’t ignore them totally, however, when you go through them, keep your pinch of salt ready.
2. Ignore new funds on the block
If a mutual fund has been around for less than a year, ingnore it! Essentially - ignore one month, three month or six month returns and rankings. I will go to the extent of saying -- only look at those funds that have existed for over three years. Not only will you eliminate a whole lot of ‘me too’ upstarts, but it will also give you an idea about the sustainability of the returns of the fund.
3. Scout for common funds amongst various rankings
Now that you have significantly reduced the sample size, try and find the common funds that come up in the top ten lists of the various agencies. In other words, arrive at the lowest common denominator.
Quick tip: It is important that you invest in a well-managed fund, however, whether it is the top performing one or the second or the fifth, matters little.
Secondly, a topper today may come in fourth next year and so on. As long as you have invested in a quality portfolio that has stood the test of time, the particular ranking from any particular agency should matter little

Cash Flow - A bird's eye view

Cash flow planning is projecting your future cash inflows from sales, services, and loans, and comparing them to your future cash needs (suppliers, salaries/wages, loan payments, taxes, etc.). The difference between the two is your net cash flow.
Why is cash flow planning so important? Cash flow planning can help you identify problems down the road, and fix them before they occur. It can also help you make decisions such as should I attend that conference I’ve wanted to attend, should I buy the new computer I’ve been wanting, or do I need to work extra hard this month to avoid a cash deficiency next month?
The first step in planning your cash flow is knowing where you spend your money! Solo entrepreneurs need to have a good grip on both their personal and business spending, as most solo entrepreneurs rely on their business income to meet personal finance goals (i.e., pay the bills!). So, you should track both your personal and your business spending, although I recommend that you keep them separate (that’s a topic all by itself).
What’s the best way to track your spending? You can use pen & paper, spreadsheets or a software program. The best method for you is the method that you will actually use on a regular basis.
You should project your spending for at least the next 12 months so that you include annual and other periodic expenses. If you are experiencing a cash flow crisis, you should track & project your cash flow on a weekly basis, instead of monthly.
If you are an existing business, you can project your cash flow for the next year by reviewing your expenses for last year. If you are a new business, you will need to estimate your start up costs in addition to regular operating expenses.
Start up costs include inventory, legal expenses, advertising, licenses & permits, supplies, and many more costs that you may not have thought of. To research startup costs you should contact your local Small Business Development Center, contact a SCORE counselor, join groups of similar business owners, and read as many books or articles you can find on the subject.
To improve your cash flow, you should:
1. Complete the first 3 steps. You have to understand cash flow planning, track your cash flow, and project your future spending needs before you can improve your cash flow.
2. Create best and worst case scenarios and create appropriate responses to both scenarios. For example, if your best case scenario is to increase sales by 50%, how will you use the profits? Will you put the profits back into the company by investing in new equipment, training, etc.? If your worst case scenario is a drop in sales by 50%, how will you continue to cover your monthly expenses? By planning for the best and worst case scenarios, you’ll be ready for any situation.
3. When estimating your future income, realize that some people will pay late, and account for that fact in your projection.
4. Charge what you’re worth. Many businesses, especially service professionals, under-charge when they are first starting out. This is a great way to go out of business. Make sure you are charging what you’re worth, and remember you’re in business to make money, not to give your expertise away for free.
5. Watch your business spending. Focus on the value the item brings to your business, and avoid lavish spending (i.e., do you really need the fastest, newest computer available?).
6. Don’t hire until necessary. Consider using virtual assistants or temporary employees before hiring permanent employees.
7. Give incentives for early payment for products and services. On the flip side, chase down invoices the minute they’re late. Charge interest or late fees to encourage timely payments.
8. Update your projection regularly. Your cash flow plan will change frequently as your business grows. You may want to update it weekly when you first get started, then switch to monthly once you’ve got a good handle on your cash.

Dividend Paying Stocks can be good in long-run

To find these stocks, I used Capital IQ, an institutional investment-analysis software package, to screen for stocks yielding more than 3%, with market caps greater than $1 billion (to provide stability), and with payouts less than 80% of free cash flow (more cushion means a company's better able to pay its dividend consistently). Strong operational returns are a must -- they provide a cushion against rough times, as well as fuel for the good times -- so I set a return on equity (ROE) floor of 10%.



http://www.fool.com/investing/dividends-income/2007/08/30/make-millions-with-7-stocks.aspx?source=iflfollnk0000003

What MFs are buying?

Won't it be a good idea to analyse what the major mutual funds are purchasing?
Or
If you know good MF managers, what are they purchasing?

What's your take on that?

Well, I guess It can work in most cases. But then MF managers have very specific view-point while investing in any stocks. Because, they might be investing in some with the purpose of balancing their portfolio.

Ok, having said that how about selecting a good MF and then keep following that MF buy and sell actions!!!

don't know. But I welcome comments.

Benefits favoring Secured Credit Card

1. The Credit Factor
If you're trying to decide between a prepaid credit card or a secured Visa credit card, chances are that your credit isn't exactly spotless. If you want to improve your credit rating, understanding the differences between prepaid cards and secured cards is critical.
If you opt for a prepaid credit card, you're not doing anything to improve your credit rating. This is because prepaid credit cards typically aren't reported to the credit bureaus. On the other hand, when you are issued a secured Visa credit card, your account activity is reported to the credit bureaus, improving your credit.
By managing your secured Visa credit card properly, you aren't just gaining access to a credit card and the benefits that go along with carrying one, but you're also increasing your credit score and rebuilding your credit history.
2. The Money Factor
There is one thing that prepaid credit cards and secured credit cards have in common. Whether you open a secured credit card or a prepaid credit card, you're going to have to send in money. That, however, is where the similarity ends.
When you give money to a prepaid credit card company, they credit the amount to your prepaid card and then you can spend the money you've put on it. That's it -- end of story. When all the money is spent, you either add more or throw the card away.
When you send in money to open your secured Visa credit card account, the money is put into a savings account and you earn interest on that account. Then the credit card company extends you a revolving line of credit equal to the amount of that account.
3. Monthly Statements
When it comes to a prepaid credit card, there aren't monthly statements to pay. With a secured Visa credit card, however, you receive a monthly statement that must be paid on time (or it will affect your credit). You will have the choice of paying the minimum amount due, the balance in full or anything in between. This activity is then reported to the credit bureaus.
4. Hotels and Cars
Nowadays when you check into a hotel they ask you whether or not you are using a prepaid credit card and many hotels and car rental companies won't even accept prepaid credit cards as a form of payment. However, there is nothing differentiating an unsecured credit card from a secured Visa credit card, which means you can use your secured card to book hotels and car rentals without any hassle.
5. Moving Forward
If you carry a prepaid credit card, there will never be a chance of it evolving to an unsecured credit card. However, it is not uncommon for a secured Visa credit card to evolve into an unsecured credit card once you have established a payment history and have proven that you can be trusted with the card.

Searching real good Credit Card Deals / Offers

Finding the best credit card deals isn't always a walk in the park. After all, it seems like every credit card company on earth is insisting that they have the best deal around. So how do you tell the really great offers from those that aren't so great? Here are some things to look for.

1. The Real APR

Don't let introductory rates fool you. The best credit card deals offer great interest rates even after the introductory APR has expired. With many credit card companies offering fixed interest rates of less than 10 percent, taking out a card with a 0-percent APR that jumps up to almost 20 percent after six months isn't wise.

2. Flexible Rewards

If you pay your balances in full each month, then you won't really benefit from a low interest rate since you won't be accruing interest anyway. That doesn't, however, mean that you can't benefit from some of the best credit card deals on the market. In your situation, a rewards card would offer you a better deal.

When it comes to rewards cards, the best credit card deals are the ones that offer generous rewards programs with flexible redemption options. Gone are the days when you could only redeem points at a specific time of year on specific items. Nowadays the best credit card deals offer cash back bonuses, flexible point redemption and sometimes even double bonus and point opportunities.

3. No Annual Fee

Gone are the days when an annual fee was the norm. With so much competition in the credit card market, don't even think about paying an annual fee unless doing so provides you with benefits equal to the cost of the card. The best credit card deals don't require any annual fee at all while providing the same perks associated with cards that normally do charge a fee.

4. The Convenience Factor

The best credit card deals don't just offer low interest rates or big rewards opportunities. The best credit card deals also offer increased customer convenience. Apply for cards that have online account access, electronic billing and a grace period of at least 20 days.

With electronic billing and online account access, you'll know the moment your statement is generated and the 20-day grace period will ensure that you have ample time to pay your bill before the due date rolls around.

Rewards Credit Cards

In today's credit card world, companies are offering a growing number of reward programs. The reason? They are competing for more customers. This is great news for you, the consumer. You now have more ways to benefit from a rewards credit card than ever before.

Consider your Options

With so many choices, finding the right rewards credit card can feel overwhelming. As you sort through your options, consider which credit card can best benefit you. If you regularly travel, look into cards offering gas rebates or hotel stays as rewards. If you live near an airport where a particular airline has its hub (for example, one of Continental's hubs is in Houston; Northwest has its hub in Minneapolis), you may want a card that includes miles for that airline. If you get a thrill out of receiving money for using your card, look into a cash back card.

To ensure that you are getting the best deal for your lifestyle, read through the fine print. Some credit cards include an annual fee for the reward program. Others have a high interest rate attached to the card. If you use the credit card infrequently or regularly carry a balance, the benefits of these cards may not outweigh the costs.

Reap the Rewards

Once you have chosen which rewards credit card is best for you, you can look for ways to make it advantageous. Think about buying groceries with your credit card; then pay off the balance each month. If you shop online frequently, start charging your purchases on the rewards credit card. By using your card during the month and then paying off the balance, you will be able to accumulate points and rewards at a fast rate.

Some rewards credit cards come with an initial 0% APR on purchases and balance transfers. This allows you to pay off a balance, interest-free, while earning valuable points. This is a good way to get rid of overhanging debts and still enjoy the rewards.

Discover Miles Card

One great option for the frequent traveler is the Miles Card by Discover. With this credit card, you'll earn one mile for each dollar spent on general purchases. For every dollar that you spend on travel and restaurants, you'll receive double miles. In addition, you'll earn 1,000 bonus miles every month that you make a purchase for the first twelve months. This can earn you up to 12,000 miles – an excellent way to start! Redeem your miles for tickets on a variety of airlines.

Another benefit from the Miles Card by Discover is the 0% introductory rate on purchases and balance transfers for the first year. There is no annual fee, and you'll receive a regular low interest rate if you qualify.

Chase Flexible Rewards Platinum Visa Card

With the Chase Flexible Rewards Platinum Visa Card, you'll enjoy a reward program with plenty of variety. Start by earning one point for every dollar spent on general purchases. You can use the points toward airline tickets, car rentals, hotel stays, and more. There is no annual fee. You'll also receive a 0% introductory rate on purchases and balance transfers for the first six months.

Save Money with Lower Interest Rate Credit Cards

If you carry an outstanding balance on your credit card, you're not alone. Nearly 70% of Americans keep a balance on one of their credit cards from month to month. And many of these cards have sky-high rates, which add up to hefty amounts in interest expense. By switching to a low interest rate credit card, you can save hundreds of dollars in interest. Starting with great introductory offers, low interest rate credit cards help you get back on track while enjoying the benefits of a credit card.

Introductory Offers

Credit companies continually offer customers incentives to sign up for their cards. This often includes an initial 0% interest rate. Many low interest rate credit cards carry this 0% APR feature. It allows you to begin saving even before the low interest rate kicks in.

The interest-free time is yours to take advantage of. You can make purchases and pay for them over a period of a few months, with no additional cost. If you carry an outstanding balance on a different credit card, you can transfer it to your new one. Then pay off the debt during the 0% APR time period. Before you do so, though, be sure to check that the charge for a balance transfer is reasonable.

Significant Savings

Low interest rate credit cards allow you to save even after the introductory period. Consider the difference between a credit card that charges an interest rate of 9% and one that charges 20%. If you have a 9% rate and carry a balance of $2,000 for an entire year, you will pay $180 in interest. With the higher rate of 20%, the interest expense rises to $400. That comes out to a difference of $220, which is a considerable amount. If you apply this figure to the principal balance, you will be able to pay off the debt much more quickly.

Check the Attached Fees

When looking for a low interest rate credit card, you will want to compare the various offers. In addition to looking at the interest rate, check the fees attached to the card. Some low interest rate credit cards include an annual fee, charges for balance transfers, and other costs. If the interest rate is low but the other fees are high, your overall savings may be reduced. For this reason, it is important to compare the interest rates and the other costs.

Create a Payment Plan

Even with the savings you'll receive from a low interest rate credit card, it is wise to make a plan to pay off your balance. A simple way to do this is to check the minimum payment due each month, double that amount, and apply the extra cash toward the principal balance. If the payment due the following month is less, continue to pay the initial amount you chose. This allows you to reduce the outstanding amount in an organized, structured way.

Low interest rate credit cards are an excellent option if you regularly carry a balance. Over time, they can allow you to save a significant amount of money in interest expense. Check out your options online and then apply right away. You can take advantage of low interest rate credit cards immediately and benefits from the savings.