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.
Tuesday, September 4, 2007
Searching real good Credit Card Deals / Offers
Sunday, September 2, 2007
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.
Thursday, August 9, 2007
Investment and Saving Tips
Index Funds? Is it really good? How Much?
Index Funds are very safe and rewarding funds for safe players who don't have much knowledge of stocks/mutual funds or don't have time for that.
But, as these Index Funds are aligned with American Biggies it doesn't show large growth or reward potential. So, if there is any Index Fund investing in Mid-Cap or Small-Cap that would be real good to go. e.g. ING Direct has Index funds in all 3 segments Small Caps, Mid Caps and Large Caps.
This small move can fetch real good rewards with almost the same safety.
Diversifying from Stocks to Real Estate
It's called a Real Estate Investment Trust or REIT.
Vanguard's REIT Index Fund (VGSIX), which has a dirt-cheap expense ratio. With a $3,000 initial investment, your fund only costs a measly 0.21% per year -- a huge advantage over the average expense ratio of 1.55%. On a $3,000 investment, that means you'll pay just $6.30 instead of $46.50. Another bonus: This fund has a total return of more than 288% for the 10 years that ended with May 2006. Or You can cash in on streetTracks Wilshire REIT (RWR), whose gain of 31% for the 12-month period that ended with February makes it a "hot property!".
Dividend Reinvestment Plans (DRPs) and their cousins, Direct Stock Purchase Plans (DSPs)
More than 1,000 major corporations offer these types of stock plans, many of them with fees low enough (or free) to make it worthwhile to invest as little as $20 or $30 at a time. DRIPS are perfect if you only have small amounts to invest and want to make frequent purchases (a strategy known as dollar-cost averaging). Once you're in the plan, you can set up an automatic payment plan, and you don't even have to buy a full share each time you make a contribution.
Save on Broker Cost
At Merrill Lynch "representative-assisted" (that's "broker" in plain English) trades cost $85 per transaction (plus a per-share surcharge) if you're buying 251 to 500 shares. Make just 10 trades in a year and you've given $850 of your hard earned dollars to your broker. But make those same trades using one of the online brokers below and even at the highest commission, you're paying just $199.50.
You can go online brokers like Fidelity, ShareBuilder, TD Ameritrade.
Great Advice of Diversification for New Bies from Tom Gardner
Take $5,000 and open a discount brokerage account, paying something like $10 per transaction -- and spread it across 15 different investments including: funds, larger individual names that pay a dividend and smaller companies that most Wall St. investors aren't watching.
15 names? That's only $333 per investment on average. That's OK because diversification is the key to your long-term success. Tom Gardner (Motley Fool CEO and co-founder) should know. He says "by spreading out your money, you also beat away the speculative instinct." Highly diversified people end up realizing that their stock investments are a lot like a bank account with much, much higher interest rates.
A real small tip for buying any good Stock
With a stock-price way below its 52-week high would surely reward us while tending to reach its 52-week high again. So, any good stock like Apple or Dell or Intel would be a good purchase when they go way below its 52-week high.
Monday, August 6, 2007
Calculating Debt - To - Income Ratio
Avoiding or Reducing Debt has always been a priority.
When we go to a bank to borrow some times they say that our debt ratio is to high. Basically what they mean is that our debt payments are more then 40% of our income. When the banks are calculating debt ratio they take in to consideration your credit cards, loans and credit lines. If you have mortgage with other bank and not add it to the total Then your calculation will not be accurate.
We can calculate oour ratio like this
Debts
1) 5 %of all credit cards available credit
2) 5%of all Credit lines available credit
3) Monthly mortgage payment
4) Monthly loan payments
5) Any other debts .
Add all this up and add up all your monthly income and then calculate your percentage of debt to your income if it is near or more then forty do not borrow any more.
Also add your insurance to this because it is also a fixed payments that way you have an exact figure of your debts.
Banks calculate your debt ratio similarly but it may not be a correct picture because you may not be using your credit cards or you line of credits at all so this is not providing you with an accurate picture. Hence remember one thing if you are not using your credit cards cancel them keep only one or two cards same goes for credit line keep only the one with low interest rate close all others.
Sunday, August 5, 2007
Online Savings!!
Yes, Shopping online can save you more bucks. Search for online order deals.
You can get online coupons to print and use at a nearby store or you can get an online deal which offers a discount if you order online.
There are few sites that can help you find such deals.
http://www.ebates.com - offers coupons & cash-back
http://www.edealinfo.com - great deals and coupons
http://www.restaurant.com - Deals for restaurants in your area.
http://www.dealcam.com - Camera Deals
http://www.dealmac.com - Mac or iPod deals
Sunday, July 29, 2007
Individual Retirement Account - Tax Free Savings & Investment
An IRA is an Individual Retirement Account. All IRAs allow any earnings to grow tax-deferred which keeps more of your money working for you and allows these tax-advantaged accounts to grow faster than other similar taxable accounts. Other than a 401(k) or other employer-sponsored retirement plan, IRAs are generally regarded as one of the most tax-efficient ways to save for retirement. The most popular IRAs are Roth and Traditional.
Roth IRA...
Maximum Contributions
- $4,000 under age 50
- $5,000 age 50 and over
Tax Advantages
- Earnings may be withdrawn after age 59½ tax-free, provided the account has been open for 5 years
- Contributions can be withdrawn at any time without penalty
Withdrawals
- Earnings cannot be withdrawn without a penalty until the account has been open for 5 years
- No Required Minimum Distribution (RMD) at age 70½
Traditional IRA...
Maximum Contributions
- $4,000 under age 50
- $5,000 age 50 and over
Tax Advantages
- Earnings grow tax-deferred until withdrawal
- Contributions may be tax-deductible
Withdrawals
- Earnings and tax deductible contributions are taxed as ordinary income when withdrawn after age 59½
- A Required Minimum Distribution (RMD) must begin after age 70½
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