Mega Credit Cards

Over the years, credit cards have become very popular. When they were first introduced, they were popular, although these days millions of people use them. There are many types of credit cards available, including those that help people who have bad credit. You should always keep in mind that even though credit cards are great to have, they will also have quite an impact on your credit report.

The credit report is extremely important, especially when it comes to credit cards. Banks and lenders use your credit report to determine if you meet their criteria for a credit card or a loan. Your credit report is the determining factor for your credit, which is why you should never let your credit cards do any type of damage to your report. To avoid this, simply pay your bill on time.

Most people will use their credit cards responsibly and wont damage their credit report. Doing this will show lenders that you are responsible, and that they can trust you with loans and credit – which in turn will raise your credit score. Keep in mind however; if you have a lot of open accounts, it may tell lenders that you have a lot open and that you wont be able to pay them back. Although this may count as good credit, lenders look at several open accounts as being potentially damaging to your credit report.

Although you may be tempted to have more than one credit card, it can actually be a downfall in the eyes of the lender. Most lenders will see this as you having a way to spend all of your limit, and will fear that you may do so. Even though you may not have this intention, credit card lenders will almost always fear the worst case scenario, and it eventually lead to you damaging your credit score – simply because a lender will turn you down for a future offer you apply for.

Something else you need to keep in mind is the fact that it can be really easy to miss a payment on your credit cards. Although this doesnt sound bad, it can have a very negative look on your credit report. If you start missing payments or paying them late, the lender will eventually enter it in your credit report. This can have a negative impact, lowering your beacon score and eventually bringing down your overall credit rating.

If you play it safe and only get one or two credit cards and keep a track of how you use them, you wont need to worry. Your credit report should always be a primary concern, and you should always do your best to ensure that it stays free of negative ratings. If you keep up things up to date – youll enjoy the benefit of a positive credit report.

You can find the best choice of credit cards and pre-paid cards at www.CreditCards.us (http://www.creditcards.us)

The Competition Commission one of the governments watchdogs, has at last moved to shame credit cards in to cutting their charges. The long overdue move comes after the Commission concluded that the credit card industry was overcharging customers between 55 and 100 million each year through excessive interest rates and other charges. And this has been going on for a least 3 years!

The main culprits by far are store cards where interest rates are as high as 30.9% – even though the Bank of England’s base rate stands at just 4.5%. The worst culprits were TJ Hughes and the Faith Card followed by Owen & Owen. You can find them heading the Table of Shame shown below in this article.

The commission has also come down on high penalty charges for missed or late payments and Payment Protection Insurance. Average penalty charges are currently 15 per event but the Commission is also right to argue that these charges are excessive.

As for Payment Protection Insurance, the Commission has joined the consumer body Which, the National Consumer Council and indeed the Financial Services Authority in concluding that whilst this insurance can be a good idea, credit card operators have abused it. The Commission has therefore decreed that Payment Protection Insurance must no longer be sold in a combined package with a credit card; it must always be purchased as a separate stand alone transaction. That’ll be good news for the Internet where many of the cheapest Payment Protection Insurance deals can be found. With premium savings of up to 60% in comparison with credit card and loan packed arrangements, business on the Internet will flourish.

So what do the new rules from the Competition Commission say? The five main changes are:

If a credit card charges more than 25% interest, it must carry a prominent warning that there are cheaper ways to borrow. This warnings must be displayed on every monthly statement.

The interest rate and penalty charges must me clearly displayed on the front page of each monthly statement.

The monthly statement must warn of the consequences in terms of higher interest charges, of just paying the minimum monthly repayment.

Credit Cards must offer every customer the option of automatically clearing their monthly balance each month by direct debit. These direct debits would avoid any possibility of interest charges and late payment penalties.

Credit Card operators must not sell Payment Protection Insurance in a combined package with credit cards. The insurance must be sold as a separate and optional transaction that enable purchasers to see the true cost.

These new rules seem destined to shame retailers into slashing their charges that’s not to say that 25% pa interest is a snip! Main line credit cards issued by banks are currently charging around 14% to 18% and we think that’s too high!

Indeed, between 80% and 90% of store cards held by some 11.5 million customers charge more than 25%. But some retailers have jumped the gun realising that their sky-high charges couldn’t last forever. Three store cards have already taken steps to trim back. Harvey Nichols has cut their interest from 28.5% to 21.9%, River Island has trimmed down from 29.9% to17.9% and Monsoon from 29.9% to 18.9%.

But who are the bad boys? Here is our Table of Shame:

TJ Hughes 30.9%
Faith Card 30.9%
Owen & Owen 30.7%
Burtons 29.9%
Dorothy Perkins 29.9%
East 29.9%
Evans 29.9%
HMV 29.9%
JD Sports 29.9%
Kwik Fit 29.9%
La Senza 29.9%
Laura Ashley 29.9%
Miss Selfridge 29.9%
Russell & Bromley 29.9%
Ted baker 29.9%
TopshopTopmam 29.9%
Wallis 29.9%
Warehouse 29.9%
House of Frazer 29.3%
Bhs Gold Card 29.0%
Habitat 29.0%
Oasis 29.0%
Harrods 28.9%
Fenwicks 27.9%
Selfridges 27.6%
Bentalls 27.2%
Jaeger 27.1%
B&Q 26.8%
French Connection 26.8%
Argos 25.9%
Homebase 25.9%
New Look 25.9%

Note: Some of these cards do offer lower interest rates for payment by Direct Debits. Source: Competition CommissionMoneyfacts March 2006

These credit cards are operated by a number of large finance companies, the largest being GE Capital the American giant. The profits are shared between the card operator and the retailer who is often incentivised by being awarded a higher share of the profit if they hit certain key debt thresholds. This has encouraged stores to put immense pressure on shoppers to take cards out.

The Chairman of the House of Commons Treasury Committee, John McFall has accused retailers of putting profit before customers saying If you buy a suit from one of the stores then you would expect the retailer to ensure that it was well made and reasonably priced. These principles do not seem to apply to their store cards.

Lets all hope that the action taken by the Competition Committee does the trick!

Credit Cards for people with very bad credit are no longer a myth. Mostly fueled by over spending, bad credit is rising across the nation. A recent survey showed that nearly 1 out of every 7 Americans has a below 600 credit score indicating an adverse credit rating. Notwithstanding this position, there is always a demand for credit to manage financial exigencies. To cash in on this , credit card companies are offering bad credit – credit cards with higher interest rates, membership and set-up fees. This is a gift of the demand- prevailing in the market. While you get the advantage of still having a credit card, the company utilizes the opportunity to do brisk business.

To repair your bad credit score, bad credit – credit cards offer an excellent opportunity. With a lower credit limit, you have a restriction on purchases. Now, if you can develop a habit of spending on a budget and keep capital for payments, you can maintain a healthy credit card account. This consistently improves your credit rating. Once you make the grade, you can access a wide selection of value-added credit products and services. You also become eligible for a regular credit card with no annual and set-up fees. Credit Cards for people with very bad credit which was unthinkable some years back is now a great resource for getting credit on dire necessity and use it responsibly to rebuild your poor credit profile.

Before receiving Credit cards for people with very bad credit, its always better to visit the local credit union or do some research on the web to find the best offers. These cards charge higher interest than regular credit cards. If you are able to provide some collateral security like a bank deposit that can be accessed should you default in card payment or have someone guarantee your application, you may be able to bargain the interest rate to get it down to a more comfortable amount. If you have a stable income and a permanent residence, you are a preferred customer for the credit card companies. If your bad credit is due to some unforeseen circumstances like a medical emergency or loss of livelihood, you can better negotiate your credit card terms with the companies. Bad credit – credit cards offer some convenient flexibility linked to your credit background and future standing. Bad credit is not always the end of the world, the credit card is there to help you out.

Whats the thing that is most prominent on any credit card ad? Well, its the credit card rate (or the APR, as we know it). The credit card rate is the most publicized thing in the world of credit cards.

A lot of people just compare the credit card rate of various credit cards and just go for the one that is offering the lowest credit card rate (or APR). Credit card rates are, in fact, one of the most important factors in the selection of a credit card (though not the only factor). Therefore, a proper understanding of credit card rates is even more necessary.

So, what is a credit card rate or APR? Very simply, credit card rate is the rate of interest that the credit card supplier will charge you with on the amount you owe them. The credit card supplier will charge you an interest only if you dont make full payments in time.

Annual percentage rate (APR) is an expression of the effective interest rate that the borrower will pay on a loan, taking into account one-time fees and standardizing the way the rate is expressed. In other words the APR is the total cost of credit to the consumer, expressed as an annual percentage of the amount of credit granted. APR is intended to make it easier to compare lenders and loan options.

When you receive your credit card bill, it specifies the full amount you owe the credit card supplier. It also specifies the minimum payment that you must make (by a particular date), in order to avoid incurring a late fee and other inconvenience. You have the option of making either a full payment or just the minimum payment. If you make a full payment (by the due date), you are not charged any interest.

However, if you decide to go with the minimum payment or some amount that is lesser than the full amount, the credit card supplier will charge interest based on the credit card rate and the balance amount. This credit card rate is the interest rate that you agreed with them at the time of applying for the credit card. The credit card rate or the annual percentage rate, as is obvious, is an annual interest rate.

The credit card suppliers use this annual credit card rate to calculate the monthly credit card rate and then they calculate the interest on the balance amount that you owe them.

The balance amount here is simply = Full amount (payment made by you). This interest is added to your balance for the next month (at the time of next billing cycle). If you again make a partial payment, the new balance is calculated again and the credit card rate (monthly one) applied to it for calculation of new interest; and it keeps going on and on until you make the full payment.

Thats how credit card rate acts in this vicious circle. So, credit card rate is termed as the most important consideration in choosing a credit card.