In this era of the Great Recession (yes, Business Week refers to it as such), there are many of us struggling to repay our existing credit card debt. While this may be the norm for many of us, I understand that there are others out there that are willing to take the “credit plunge” and apply for their own card. As with anything, there are many out there from which to choose; just be sure to choose wisely, because a misinformed or hasty decision could cost you dearly.
Now, in a perfect world, we would use the card for purchases and then pay off the balance at the end of each month. This is the best way for all of us to use these cards, because you get the convenience of being able to make purchases without cash, yet you do not have to pay interest to the credit card company. However, this is not a perfect world and most of us end up using the cards and only paying the minimum balance due. This is exactly what the companies’ want, because this is how they make their money. The first thing you should look for in a credit card is the APR or Annual Percentage Rate. This is the rate that the company will charge you for the use of their money. Obviously, you want to find a card with the lowest rate, somewhere below 15% would be reasonable. The better your credit score, the lower the rate you will be offered. You should also be aware that many companies will offer an introductory rate, which can last anywhere from six months to a year. After this rate expires, you will then be bumped-up to the regular rate. With regards to the APR, you must also read the fine print and discover what the penalties are for Late Payments. If a payment is late, the company may have the option of cancelling the introductory rate and raising the standard rate to as much as 24%, if not higher.
The next item to consider is whether or not you want to pay the company even more for the privilege of using their card, which comes in the form of an annual fee. Since I feel that I am already paying them enough through their interest rate, I would suggest you try and find a credit card with no annual fee. If you have a decent credit score, you should not have a problem finding such a card. If your current credit card company charges you an annual fee, I would suggest negotiating with them to drop the fee. If they don’t, drop them and find another company (If you have a long-standing relationship with the company, this may hurt your credit score).
If you are looking to consolidate your debt from many high-interest rate cards to one lower-rate card, than you will want to find a company that offers 0% balance transfers. Finding such a card can literally save you hundreds of dollars in fees. Just be sure that you will be able to make the monthly payments on your new card, because even one late payment can see your wonderfully-low rate skyrocket to over 21% (or more). If you are looking into debt consolidation and you are a homeowner, another option to consider is a home equity loan. Because these are secured loans, they are often offered at lower rates; however, these loans are secured with your house, so be very careful when considering them.
As you decide on your new card company, please be sure and read the fine print in the contracts. Yes, it is tedious, but it can save you much heartache later. I have tried to cover a few of the points you should look at when choosing a credit card company. If you come across something that you need assistance with or clarification on, please let me know and I will try my best to help you. One final thing to remember: although credit can be your best friend, if not treated properly and with respect, it can turn into your worst enemy.
17 May 2009
14 May 2009
Friday Fotos: 5/15
I hope you all enjoy your weekend...
At Least It's Friday...
courtesy of... humorland.wordmess.net
Yes, This Actually Happened to Me...
courtesy of... unemploymentality.com
Newton? Who's Newton...
courtesy of... funnyjunk.com
Finding the Right Web Host
As you may remember, I am in the process of moving-on from my time at Blogger. When I first began my blogging experience, I knew nothing about what it takes to write and produce a blog. The actual writing of the blog was not really a stumbling block for me; it was having to do everything else that caused me the problems. I had to discover how to attract people to my site and actually read what I had published. I also needed to teach myself HTML and CSS, so I could modify the templates that I was using. Throughout this time, I did not have to worry about having to pay a monthly fee to have my site hosted, so I was able to learn at my own pace. However, now that I know just enough to get myself into trouble, I feel that I have outgrown Blogger and I am now ready to strike-out on my own.
One of the first things that you will notice when you begin hunting for a host, is the vast number of web hosting companies there are out there. When I first began searching, I let my wallet do the walking and searched through a number of free hosting sites. Yes, they are out there, but if you want to be in total control of your site, you may not want to go with those companies. What you want to look for is a hosting company that is both reliable and inexpensive. Although this may seem like an impossible combination to find, with the right tools, it is possible.
Although you can run around and go from one hosting site to another and take your own notes, you may want to go to one place and have all the footwork done for you. The site that I found had their reviews nicely arranged on an awards page. On this page you will find the results of independent consumer reviews on separate hosting companies. The companies that have received the highest number of votes in their category are listed and available for your inspection. For example, if you were looking for the best blog host, you would click on the name of the company and be taken to a very detailed description page. They have categories for best budget hosting, e-commerce hosting, PHP web hosting, and forum hosting, to name just a few. I have to admit that there are several companies that I have never heard of, but I now have their information in my arsenal and can use it to make an informed decision.
Once you have a short-list of the companies that you are interested in, you can now go and conduct your in-depth research on those hosting sites. You will want to try and find independent reviews and opinions with regards to those companies. Talk to your friends and fellow bloggers and find out who they use and why. Once you are comfortable and are willing to take the final plunge, be sure you know how to change web hosts, so you limit the downtime of your site. From copying your files to making sure all your internal links work properly, there will be a lot of work for you to do to ensure a smooth transition.
Although the choice can be daunting, I hope that the resources included in this article will help you along the way to making an informed decision. Just be sure to do your research and listen to those that are already out there and using these services. While I can only provide you the necessary information, your fellow friends and bloggers can give you their opinions based on first-hand experience. Try and use both when making your final decision and good luck with your choice.
One of the first things that you will notice when you begin hunting for a host, is the vast number of web hosting companies there are out there. When I first began searching, I let my wallet do the walking and searched through a number of free hosting sites. Yes, they are out there, but if you want to be in total control of your site, you may not want to go with those companies. What you want to look for is a hosting company that is both reliable and inexpensive. Although this may seem like an impossible combination to find, with the right tools, it is possible.
Although you can run around and go from one hosting site to another and take your own notes, you may want to go to one place and have all the footwork done for you. The site that I found had their reviews nicely arranged on an awards page. On this page you will find the results of independent consumer reviews on separate hosting companies. The companies that have received the highest number of votes in their category are listed and available for your inspection. For example, if you were looking for the best blog host, you would click on the name of the company and be taken to a very detailed description page. They have categories for best budget hosting, e-commerce hosting, PHP web hosting, and forum hosting, to name just a few. I have to admit that there are several companies that I have never heard of, but I now have their information in my arsenal and can use it to make an informed decision.
Once you have a short-list of the companies that you are interested in, you can now go and conduct your in-depth research on those hosting sites. You will want to try and find independent reviews and opinions with regards to those companies. Talk to your friends and fellow bloggers and find out who they use and why. Once you are comfortable and are willing to take the final plunge, be sure you know how to change web hosts, so you limit the downtime of your site. From copying your files to making sure all your internal links work properly, there will be a lot of work for you to do to ensure a smooth transition.
Although the choice can be daunting, I hope that the resources included in this article will help you along the way to making an informed decision. Just be sure to do your research and listen to those that are already out there and using these services. While I can only provide you the necessary information, your fellow friends and bloggers can give you their opinions based on first-hand experience. Try and use both when making your final decision and good luck with your choice.
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