Found this interesting article about credit cards balance transfers. It reinforces the idea that, if you’re disciplined enough, transferring your balance to a new card at a great introductory rate can actually help get you out of debt.
Opening a second account, while keeping the old account open, can certainly help your credit score, but with 0% APR rates available on balance transfers for up to 18 months, there’s an added incentive to get your credit under control.
See http://www.jabberlounge.com/balance-transfer-cards-help-people-in-debt/222044/ for the full story.
For many people, credit card providers can be a closed shop: they have marketing departments that will promise you lucrative rewards… and then there are legal departments that hide the bad news in the small print. Quick question, what interest rate are you paying on your plastic? What fees did you pay this year? Don’t know? You’re not alone.
That may be changing however. The Credit Card Act is a new disclosure law designed to protect credit card customers, and although it’s probably too early to judge, early indications are that it seems to be working, with Amex customer satisfaction increasing by 0.9% from last year.
Read more at ABC News: http://abcnews.go.com/Business/wirestory?id=11434547&page=1
Amazing to think that 60% of students graduate in debt. It’s not a great start to your working life, but with credit card companies throwing all sorts of rewards at you (and not particularly good ones either), students are seen by some providers as an easy sell.
If you’re a student, and you need help with your finances, the best advice is not to jump on the first credit card offered to you. Perhaps a card isn’t even appropriate – a loan might be better – but if you do need the convenience of plastic, do your homework first. Make sure that you’re the one approaching them, not the other way around.
CTV.ca have a great article on this subject: see http://www.ctv.ca/generic/generated/static/business/article1677117.html to read more.
According to this article on dispatch.com, credit card debt is falling, which probably goes some way to explaining why credit cards with rewards are being ramped up, and being made more attractive to consumers.
After all, if you’re being incentivized to use plastic with cash back and other rewards, then you’re likely to use your card more often. On the other hand, if there are no rewards, you can be pretty sure that it would leave a lot of credit card companies in a dire situation.
We may be living in difficult economic times, but it’s good to know that those that continue to spend will at least be rewarded a little for their efforts. If you can afford it, now is the best time to take advantage of the rewards being offered by credit card companies.