The Basics of Credit Card Balance Transfers

By John Fencik

There simply isn’t one of us out there who enjoys paying the high interest rates on credit card balances, no matter how much money you have in the bank or make at your place of employment. I don’t know about you, but I always promise myself that whatever I charge during a billing cycle, I will pay off when the bill comes due. But when I open up the envelope from my credit card company, I realize that there are many other places my money could be well spent- and that means my balance doesn’t get paid in full, thus resulting in loads of pounds paid in interest. That’s why so many residents of the UK are taking advantage of the financial benefits of transferring their balances on a high rate credit cards to one with significantly lower (or even 0%) interest.

Credit card companies are in a desperate fight for your business, so they offer alluring programs (such as 0% interest on balance transfers for 6 months or so) so that you’ll take your old credit card balance and place it on one of their new cards. This is all done with the hopes that you will use your new credit card instead of your old one- hence the new company generates any interest on new purchases, not to mention the charges on your transferred balance when the special program expires. They want you to give them your business, never look back, and never again transfer your balance to another credit card company. Their begging can work to your advantage as long as you understand the basics.

There are mainly two types of credit card balance transfers, the first of which involves a very low interest rate, usually 0%, for a fixed amount of time, perhaps from 5 to 9 months. At the expiration of this time period, the company’s normal interest rate charges will apply, generally upwards of 15% or more. So be sure to stay on your toes, keep accurate records and switch your balances when the introductory rates expire to get the most out of these enticing rates and programs.

The other type of credit card balance transfers involves a low interest rate, maybe 5% or less, but maintains this same, nominal rate for the entire time required to pay off the transferred balance. Any new purchases will be subject to the card’s regular, significantly higher rate (again, around 15% or so), but if you have the self-discipline to not add any additional charges to this card, it can save the hassle of transferring your balances at every 6-month mark and still save you hundreds (or even thousands) of pounds over the life of your credit card balance.

John Fencik recommends that you visit http://www.creditcardexpert.co.uk/balance-transfers.php for more information on Balance Transfers.

How to Look for the Best Business Credit Cards

By Pierre Smith

Majority if not all American live on plastics which means they depend on business credit cards for most of their everyday expenses. Business credit cards can buy a person almost anything from the basic necessities of food and clothing to luxury items like jewelries, foreign trips and other material things. Most establishments no longer accept cash for purchases and they prefer and sometimes require credit cards. The acceptability of business credit cards has made the possession of one or more credit cards a must for American. Some people even have more than two credit cards in their possession. A person who wants to make life easier for himself and his family should look himself for the best business credit cards. The problem however is how to choose the best business credit cards considering the proliferation of credit cards that impose very stiff restrictions and financial requirements.

Before applying for any credit card a person should first research on the company offering the cards. One of the basic considerations a card applicant should look into is the type of company offering the cards. A responsible credit card company that also considers the welfare of the card holders would be the best choice. Since the credit card business is big business, almost every credit card company sends out application forms to possible clients. The applicant should read the fine points of the application first before deciding on what card company to choose. A person who is familiar with the various credit cards would notice that most of them carry the names of the big banks that have either issued their own credit cards or have affiliated with credit companies.

These banks use the credit card payment for various purposes including but not limited to funding loans of other people and other businesses. It would be wise to research on the types of projects being financed by these banks to make sure that the money you are paying as credit card interest or as fees are in line with the principles and beliefs of the card holder. There are banks financing projects that may be harmful to the environment and this should be looked into. Fortunately there are environmental organizations that are looking into this and they have launched information campaigns against these banks. The campaign has forced the big banks to pour in their money on worthwhile projects for the environment. Some banks also resort to lending money with very exorbitant interest rates and card holders should check this out. Credit card companies target certain sectors for their credit card campaigns including the women, youth or the elderly sectors. A card applicant should choose a card company that provides reasonable policies for late payments.

Also check on the penalties imposed by the credit card companies for payments after the due date because some credit card holders admit their debts pile up because of the surcharges over payments made beyond the due date. The choice for best business credit cards companies would be those operating credit unions because these companies impose lower penalties, late fees and other surcharges compared to the fees imposed by the big banks. Business credit cards may be a necessity for American but every person should be responsible enough to choose credit card companies that can offer them the best deal.

For more information on credit cards and how to find the best business credit cards visit also http://www.bestcreditcardtips.info, a website that is specialized in tips and ideas on how to choose the best credit card.

Credit Cards To Avoid

By Joseph Kenny

Not every credit card is a good one - just because it promises a few good things. The truth is, that you really do not know just how good a credit card might be until you read the fine print that gives you all of the details. Merely comparing a few of the more open and upfront (on the advertisement) features might give you a starting place, but you should go a little deeper than that in order to get a credit card that is worth having.

Choose a type of credit card that you think will benefit you the most. Make your choice from either air miles cards or drivers cards if you travel a lot, or get a rebate card for general shopping purposes. You can also choose specialty cards from booksellers if you purchase a lot of books, or entertainment credit cards if you frequent this type of place. You will do well to take a little time to see what kind of different credit cards are available. Make your choice related to the things that you normally charge the most amount of money each month.

A good place to start is by looking at the interest rate. Interest rates can range from 9.99% up to a little over 18%. The lowest rates of interest are for those who have good or excellent credit. Anyone else can expect to get a card with a little higher rate. Ideally, you want to get a card with as low a rate of interest as you can. While you may not pay any interest in the first year, remember that it will be charged during the second year. It can also be started suddenly if you make a single late payment on some credit cards.

Then you will want to look and find out if the credit card allows you to make balance transfers - and when. This little great feature can really save you some money if you can get it with 0% APR interest and no fees attached. Be sure to find out when you can make the transfers, though, since some cards require you to list any transfers when you apply, and no more can be made after that. See also just how long you can enjoy not having to pay any interest on this amount. It could be anywhere from three months to the life of the transferred amount.

The introductory offer should be looked at next. This includes the balance transfers but also tells you just how long you have to make new purchases and pay 0% APR interest on those charges. The length of time on your introductory offer and the time on your balance transfers may be different.

Lastly, look at the amount of rewards and compare them. Some credit cards will give you a large number of points or miles when you make the first purchase. This is great and can really be a big help since other cards may not offer this kind of deal. Be sure to see, though, whether or not various fees or limitations in some way eat up this great value attached as conditions. Also, many, but not all, credit cards will give you a percentage of your average purchases, such as what you charge on gas, food, and medicines.

By paying off your credit card in full each month, you can enjoy a greater level of savings by not having to add on any late fees or interest. Watch out for credit cards that require minimum balances.

Joe Kenny writes for the Credit Card Guide, offering views on UK credit cards, visit CardGuide.co.uk today for cash back credit cards and find a great UK credit card deal today.

How to Get Your FICO Score

By Alison Cole

The primary, but not the only users of your credit score are the lenders. But if you are applying for a job, some employers, and other businesses also consider the credit score in evaluating their applicants. Aside from credit application, credit scores are also used for various purposes. Hence, it is really important that you know how to get your FICO score.

FICO score and other types of credit scores are computed by employing scoring models and by consulting mathematical tables that have assigned points for various pieces of information that best foresee your credit performance in the future.

Calculating your FICO Score

The formula employed in getting your FICO score contains information that is based on various important factors. The 35% of your FICO score is based on your payment history. All lenders want a to know your credit history which includes your payment history on various accounts such as retail accounts, credit cards, finance company accounts, installment loans as well as mortgage loans. Public records and collection items such as bankruptcies and judgments are also included in your payment history.

Your outstanding debt comprises 30% of your FICO score. Of course, lenders will ask about your present indebtedness level because it will determine if you can pay the amount you are borrowing and still afford to pay for other current bills.

15% of your FICO score is based on the length or duration of your credit history. In general, the longer your credit history, the better your credit score is. The pursuit of new credit makes up 10% of your credit score. Before approving your loan, the lenders want to find out how many credit accounts you?ve opened and applied for. Generally, the fewer credit accounts you have, the better. The remaining 10% of your FICO score depends of your credit experience. The types and the number of accounts you have such as credit cards, mortgage, retail accounts and others can really make a difference.

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Small Business Loans

By Daniel Wesley

Small business loans, also called micro loans, can be availed to finance a new or an existing project. As the name itself suggests, these loans are meant for small enterprises. The maximum limit of a loan under such schemes is normally around $30,000-$35,000 and below. They can used to start up a new business or for the promotion of a recently established small business.

Advantages of Small Business Loan

Small business loans can be utilized to purchase real estate, which can be used as premises for the business and also for the purchase of furniture, machinery, fixtures, and other equipment. They can also be spent for construction, leasehold improvements or renovation of the business and for flooring of the inventory. These loans can also be used as working capital to run the enterprise.

Availability of Small Business Loans

The US Small Business Administration or the SBA provides funds to non-profit associations of lenders who in turn disburse these loans to the budding small entrepreneurs by giving the credit a local orientation. Small business loans have a shorter term than the big loans, which are generally provided through mortgage and have a loan term spanning up to 30 years. The loan term for small business may be up to 5 or 6 years depending on the discretion of the local lenders. Small business loans too are provided against some kind of collateral and the personal guarantee of the business entrepreneurs. Another condition for obtaining small loans is that the business owners need to comply with certain business training and planning requirements before their loan application can be considered.

SBA-7A Government Small Business Loans

There are other loan plans under different names and schemes as well. For example, there are SBA-7A government small business loans. Under this scheme, the small business loans are arranged by the government under a wide variety of guarantee programs to the business men who cannot otherwise qualify for loans on reasonable terms. In such cases, the commercial lenders provide the funds for the loans and the SBA guarantees them. This is because the SBA does not possess the required funds for direct lending or grants to the businessmen.

According to the plans under SBA Loans under 7-A, there is no limit set on the amount of loan that may be required by the businessmen. Also the loan term can be extended up to a period of 25 years.To qualify for loans under the scheme, a businessman must have invested in his business some amount of money from his own resources. The premise here is that with his own stake in the business, the entrepreneur will put in all his efforts to ensure that the enterprise is successful. The second condition to qualify for this loan is that the borrower should have a plan with details regarding how he pans to run his business to optimize the productivity level and make profits so as to repay the loan on monthly basis and also meet his personal needs. The third condition is that the businessman should enjoy a good credit rating. His track record in paying back his loans forms an important criterion for accepting his application for loan.

SBA 504 Loan Program

Besides these, there are various plans under the Development financing with the SBA 504 loan program. This program provides the business entrepreneurs with a long term, fixed rate financing for major fixed business assets such as land, buildings, street improvement, car parking, landscaping, modernizing and renovating existing facilities, purchasing long term machinery, equipment and so on. The SBA works with the Certified Development Companies or the CDCs and private lenders to provide the small business loans. The loan from private lenders covers 50% of the project costs. There is also another facility provided by the Certified Development Companies, which pay loans for another 40% of the project cost for which the SBA provides a 100% guarantee. An entrepreneur can thus get a combined loan-to-value ratio of 90%.

Small Business Loans Whether you are planning to set up a small business unit or expanding an existing one, there are numerous loan opportunities available in the market that best suits your needs.