Credit Card Switching - Advantages and Disadvantages

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Credit Card to Establishing Credit
One of the first steps in establishing a good credit history is obtaining a credit card. If you are in the process of building your credit history or are repairing your credit report, a credit card can really help. While you will hear most financial advisors warn of the dangers of credit cards, this may be the one time you are told to get one.

Your credit report is essential to being ab... Read credit cards article



Credit Card Fraud
The rampant use of credit cards, and especially that use compounded by the secret avenues of the internet, can put the common consumer in a substantially vulnerable position to become a victim of fraud. Much like computer viruses and the necessary adjustments made by internet providers, card companies and merchants are vigilantly combating fraud as it occurs and thinking of new ways to pre-empt it... Read credit cards article



Credit Card Switching - Advantages and Disadvantages
If you're thinking of becoming a credit card jumper, you need to be well informed. Here's what you need about how credit card jumping can work for you.

What Is Credit Card Jumping?

Credit card jumping is the practice of moving debt from credit card to credit card to take advantage of low or nil interest rates.

Who Offers Low Credit Card Interest Rates?

Just about every credit card company offers low introductory interest rates to attract new customers. Some offer permanently low rates, which is good news for anyone who has a debt at a higher interest rate. Others offer 0% on purchases, which means consumers can spend as usual without paying any interest. Finally, many credit card companies offer 0% interest on balance transfers. This is very attractive for credit card jumpers.

How Do I Transfer My Balance To A 0% Card?

It's simple. Just apply for a credit card as usual. Most credit card application have room for people to list the cards they want to transfer balances from and the amounts they want to transfer. In this case, the balances are transferred automatically when the account is opened. Other credit card companies allow customers to transfer balances after the account has been opened.

Are There Other Incentives For Getting A 0% Credit Card?

Most credit card companies offer other incentives to new cardholders. These include cardholder discounts on win, hotels or travel, travel insurance, money off vouchers and cash back offers. It is worth looking at the range of incentives before deciding on a card.

How Can I Be A Successful Credit Card Jumper?

To make a success of credit card jumping, there are two key things for consumers to do. The first is to make the required repayments on time. The second is to choose a new credit card and move the outstanding balance before the 0% interest rate expires.

What Are The Dangers Of Credit Card Jumping?

Credit card jumping only works if:

- People pay the required amount (the minimum repayment)
- People pay on time
- People move the money before the interest rate goes up.

Failure to do the first two could damage a person's credit rating. This would make it more difficult for that person to get another credit card. Failure to move the money on time means that the credit card holder will have to pay interest. Since the point of credit card jumping is to reduce debt, this is not a sensible strategy.

It is also best to avoid putting additional spending on the card, as the interest on spending might be different from the balance transfer rate. It is best to check the fine print first.

Some credit card companies now apply a balance transfer fee so that they make some money from credit card jumpers. It is worth shopping around to find the few that don't. Even with this fee, credit card jumping may be a useful strategy for people with a large debt.

Joe Kenny writes for the Card Guide, a UK credit cards site, apply for a 0% balance transfers to clear your credit card debt today.

Visit today: http://www.cardguide.co.uk/

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Differences Between Silver Gold And Platinum Credit Cards

Status: Making others envious

Undoubtedly, Silver credit cards, gold credit cards, and above all Platinum Credit Cards bestow an idea of status to the cardholder much like a luxurious car, a yacht, expensive clothing, jewels and other onerous possessions.

There is nothing wrong with that, but one may wonder if that is sufficient reason for requesting a financial product or paying substantially more money for it. If there is no other useful feature, or as we want to point out in this article, there is a tendency to reduce the differences as to real financial advantages between these products, we see no reason to pay excessive issuing costs and maintenance fees just because of the color or material of a credit card.

Credit Limit

At the beginning of the credit cards' story, the main difference between these credit cards was that the amount of money you could spend with them differed substantially. Platinum Credit Cards had a credit limit much like a classic credit card, gold credit cards had higher limits and Platinum Credit Cards claimed to have no limits at all (we say claim because there was not and there isn't such thing as no limits. However, to be honest the credit limit is high enough to consider that claim to be true.).

However, lately the limits of platinum cards and gold cards have come close enough to judge the difference insignificant. Thus, it seems to be no reason to pay the higher charges of gold cards if that is the only difference between them. Moreover, as both limits are increasing and reaching considerable amounts, platinum credit cards and their no limit feature begins to be less appealing.

Income implications

Since there were income requirements to qualify for these credit cards, being a cardholder of a silver credit card meant you had certain income, being a gold credit card holder meant your income was higher and so on. This could be an easy way for others to know how much you made without you talking about it. Store Card accounts could be opened without credit checks, etc.

However, the qualification requirements' differences have also been reduced and even platinum credit cards which where a type of credit card that could be obtained by invitation only are now offered to anyone who can qualify for it and qualifying is not that harder than qualifying for a gold credit card.

Membership Fees

The only substantial difference between these credit cards seem to be the membership fees, renewal fees, issuing fees, etc. Thus, as stated above, it seems as you are paying higher amounts just to make it clear that you can pay higher amounts. The benefits of having a higher grade credit card seemed to have banished and thus it might be advisable to think twice before accepting an offer from a bank that includes this kind of cards.

Sarah Dinkins is an Expert Loan Consultant in the financial industry that helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and other types of loans and financial products. At her website www.badcreditfinancialexperts.com/article/ she is continually adding new finance articles useful for those in need of professional advice.




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Credit Card Switching - Advantages and Disadvantages
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