Credit Card Lowdown

Credit Card Balance Transfers

The balance transfer feature in credit cards is the option of transferring debts from one credit card to another. It is mainly beneficial when the new credit card comes with interest rates much lower than the older one.

The popularity of this service is increasing as more and more customers dicover the convenience of overcoming debts. With attractive balance transfer options rival credit card companies can successfully lure customers away from other credit card companies.

A growing number of credit cards offer an introductory balance transfer fee at 0%. In this case it is clearly an advantage to transfer balances from older cards. Customers should be aware of the balance transfer limits that their new cards due to which only a part of the existing balance can be transferred.

The other advantage of balance transfer is that the customer no longer has to keep a track of multiple balances to be paid as only one credit card payment nees to be made every month. This helps in better budgeting in order to overcome credit card debt. By transferring balances from all high interest credit cards, customers are able to make significant savings. Credit card info.com reports:

Credit card balance transfer is an important feature for many credit card users. It allows them to transfer their debts from one credit card to another. This is significant if their new card has a lower interest rate than their previous one.

What is a Cash Advance?

A cash advance is one of the features offered by credit card services whereby the card holder is able to withdraw money from their current balance. Usually the amount that can be borrowed in the form of cash as cash advance is a certain percentage of the credit limit on the card. In every billing statement both the existing credit limit and the cash advance limit is stated.

The means of utilizing the cash advance facility is very convenient as one has to go no further than the neighborhood ATM to withdraw the cash advance amount desired. A card holder is entitled to withdraw cash advance upto the limit specified as cash limit. In case this limit is exceeded, the ATM may still dispense the cash but electronically flag the transaction. Cash advance in excess of the specified limit is usually treated as exceeding the credit limit in purchases with extra charges.

Cash advance in credit cards is an extremely expensive option of obtaining cash. It is therefore advisable to seek other alternatives first and when all the others are exhausted, only then should the cash advance option be resorted to. Credit card info.com reports:

In the world of credit cards, a cash advance is an option cardholders can use to borrow actual currency against their current balances. For most credit card users, the amount of cash available for a cash advance is a small percentage of their overall credit limit. Statements issued by the bank will generally provide two sets of numbers: the credit limit and the cash advance limit.

Correcting credit card errors

Keeping errors on your credit card billing statements to a minimum requires you to go through your statements meticulously. Thanks to the Fair Credit Billing Act you enjoy protection against billing errors, unauthorized use of your account, any charges levied on purchases that never reached you and doubtful charges for which you can ask for proof of purchase.

Once you notice an error on your statement, write to the company within 60 days of having received the statement. Mention your name, account number, the date and amount of the transaction being disputed and your reasons for it. The letter should be sent to the address mentioned on the bill and not along with your payment.

The credit card company has to then give you an acknowledgement of your letter within 30 days of receiving it and is obliged to look into it within 90 days. During the dispute period, you are not required to pay the amount being disputed.

Should the error be confirmed and it is determined that you are not to be charged for the disputed amount, the company has to carry out the necessary changes in your account. If however, the charged is found to be legitimate, you have to receive in writing the amount you have to pay and the reasons why. You will also have to bear additional finance charges if any.

For more information, you can get in touch with several non-profit and non-commercial organizations that have been specially set up for the purpose. Credit card info.com reports:

One way to avoid billing errors and unjustified fees is to carefully go through your monthly credit-card statement, making sure all the transactions are legitimate and that other charges -- finance charges, late or over-the-limit charges -- are justified.

Balance Transfer

The facility of balance transfer that credit cards offer may sound like a good deal but there are certain clarifications you should seek. Ask about how long the introductory rate lasts. Find out the annual percentage rate on expiry of the teaser rate and whether the teaser rate is valid for transferred balances, new purchases or both. Ask about the annual fee, late fees and overlimit fees. Sometimes there may even be balance transfer fees

Some cards may offer waiver fees for initial balance transfers only, which refers to the transfers that you specify at the time of signing up for the card. The rest of the balance transfers is charged at the rate of cash advance fees.

Remember that getting an offer does not necessarily mean qualifying for the super low rate. Some cards withdraw the low rate facility in case of even a single default, following which the rates could shoot up to as much as 11 percent. Falling behind on payments on another card could result in the new card raising the rates.

It may be advisable to continue with the minmum payment on your old card before the balance transfer is activated as it could take upto four weeks. You will be notified when the balance transfer is complete. Even then, check with the old card company to confirm. It may be better to wait until you receive a billing statement from the previous company that shows zero balance. Request for it if they don't send it to you. Credit card info.com reports:

How do I transfer a balance?

Before you transfer that hefty credit card balance to a card with a super-low introductory rate, read the fine print and ask questions. Otherwise, you could end up paying fees and a much higher interest rate than you expected.

Credit card fraud

It is estimated that each year credit card fraud runs into hundreds of millions of dollars. Sometimes, there's nothing you can do to prevent credit card fraud from affecting you. Fortunately in most cases, there are certain steps and precautions you can take to save yourself from falling victim to credit card fraud.

As soon as your credit card is delivered, sign on it right away. Avoid carrying credit cards in your wallet and keep them instead in a business card holder or a separate pouch. During a transaction never let the card out of your sight and for longer than is absolutely necessary. If you notice any inconsistencies in your billing statements, waste no time in getting them clarified from the credit card company. Be sure to notify the companies in case of change of address, preferably in advance.

Never leave your cards lying around nor lend it to anybody for any purpose. Similarly don't let anyone have access to your PIN numbers. It is best if you can memorize them, otherwise avoid carrying the pin numbers in the same place as the cards. The only time you should disclose your card number on the phone is when you're speaking to the credit card company.

Loss or misplacement of credit cards should be reported to the company with minimum delay possible. According to the law, it is only after you report a stolen or lost card that you won't be held responsible for any transactions made on the card. Credit card info.com reports:

A thief goes through trash to find discarded receipts or carbons, and then uses your account numbers illegally.

A dishonest clerk makes an extra imprint from your credit or charge card and uses it to make personal charges.

You respond to a mailing asking you to call a long distance number for a free trip or bargain-priced travel package. You're told you must join a travel club first and you're asked for your account number so you can be billed. The catch! Charges you didn't make are added to your bill, and you never get your trip.

All about credit cards

Today credit cards have become a way of life for people all over the world. Credit cards are now available in countless variations to suit people from all walks of life. Like people credit cards come in all kinds of shapes, sizes and colors. They could be miniature ones that fit on key chains or they maybe personalized photo cards. Naturally the rates also differ from one card to another. Some cards carry no annual fees whatsoever while some charge huge amount in fees. Similarly there are those with fixed rates just as there are cards that offer variable rates.

Contrary to the common misconception that credit cards are more of a curse than a boon, with the right card can do wonders for your budget. For someone who travels very often, a card that offers incentives like frequent flyer miles and discounts on hotel accommodation can even be highly cost-effective. The trick is to find the card that best suits your set of needs. On the flipside, there's no denying that there are major risks involved. Signing up for a card without being familiar with all the terms and conditions involved can have severe consequences. In this case ignorance can prove very costly indeed.

You may be ready to sign up for a credit card for the very first time, you could already be a card holder wishing to find out about better offers or you could simply have a desire to learn more about getting the maximum advantage from your existing card. Whatever your needs may be, you're sure to find a card that best suits your lifestyle and offers you the best incentives. Credit card info.com reports:

Credit cards are practically a must in today's electronic society. You need one to rent a car or to make reservations at a hotel. If you shop online, credit cards are the safest way to buy. And, they are ever so convenient.

Student credit cards

Xorev is a new site with reviews of student credit cards. It never ceases to amaze me how there is a credit card for literally anything.