Start by choosing the right credit cards when you apply for a credit card. Compare credit cards that you're considering at a site like moneyeverything.com and only apply for those that offer low or no annual membership fees. Watch the APR when you compare credit cards, but look beyond it to find out how interest charges are calculated, how long your interest free period is and how many days leeway you have before your payment is judged to be late.

How to Beat the Interest Charges
A large part of the high cost of using credit cards comes from the interest that you pay. You can avoid ever paying a jot of interest by paying your account in full each month. Of course, that's not always an option - after all, one of the reasons to use a credit card is to afford things you can't pay for all at once. In that case, make long term purchases on the credit card with the lowest interest rate and pay it off as quickly as you can. Don't use that credit card for anything other than long-term purchases and pay more than the minimum every month.

How to Beat the Minimum Payment Trap
It's easy to stay in debt forever with credit cards. Just pay the minimum payment every month. If you have an account balance of £1000 on a 14% APR credit card, and pay the standard minimum balance of 2.5% each month, it will take you 52 months to clear the balance, and you'll pay £300 in interest. That's over four years. Pay twice the minimum - just another £25 per month - and you'll have the balance cleared in less than two years, and save £150 in interest charges.

How to Play the Balance Transfer Game Without Getting Beat
Pay close attention when you compare credit cards if you're looking for a balance transfer card. Look beyond the balance transfer rate to any requirements that you have to meet in order to keep that rate. Be aware that thecredit card company will apply your total payments to the lowest interest rate items on your account - so if you have an outstanding balance transfer at 1.9% interest and a new purchases balance at 9%, the credit card company will apply your payment to the balance transfer. That leaves the higher interest purchases to accumulate interest at 9% until the balance transfer is paid off. Avoid the balance transfer trap by NOT using that credit card for new purchases.

Did you know that a credit card with a low APR isn't always the best credit card to use for your purchases? If you shop around carefully, you can find credit cards that will help you save money, earn gifts and get discounts on the things you want and need to buy? Cashback credit cards are designed to offer you rewards for your loyalty in using a credit card issued by a particular company. Here's how to get the most out of using cashback credit cards.

- Pick the best credit card right from the start.
Before you even apply for a cashback credit card, do a little digging to find the best cashback credit card for you. It's not always the one that offers the highest cashback amount, or the one with the lowest APR – it depends a great deal on how you use your credit card.

- Choose a cashback credit card that gives you cash back on the purchases you're likely to make.
The latest trend with credit card companies is to encourage what they call micropurchases – purchases of less than £5. That means that they're offering cash back on your purchases at corner stores, petrol stations and supermarkets to get you to use their credit cards to pay for your purchases there. When you're shopping for a cashback credit card, check which purchases will pay you cash back. If they'll pay you to buy on plastic at the stores you already shop, it's a card you want in your wallet.

When looking for a credit card it is important to understand the various terms related to credit cards. Below are some of the most common terms you will come across when searching for a credit card. By understanding these terms you can better compare credit card offers and determine which is the better offer.

Annual Fee: Many banks or card issuers may charge a annual membership fee for their credit cards. The fee may range from $25 to over a $100 depending on the card. There are also many cards out there that no have no annual fee!

Annual Percentage Rate: Often referred as the "APR", this shows how much credit will cost you on a yearly basis. The lower the rate the less you will pay on interest charges. There are two types of APR:

1. Variable APR: A variable annual percentage rate allows credit card issuers to change your APR based on fluctuations in indexes such as the prime rate.

2. Fixed APR: A fixed annual percentage rate is not subject to adjustment based on indexes like the variable rate. But beware that credit card issuers reserve the right to change the your rate at anytime.

Were you recently denied for a loan or a credit card? When you apply for a loan, there are only a few factors that actually impact whether you get approved not. A part of the decision is based on the information you submit to the organization, however a much larger portion of the decision is based on your credit score.

So, if you were declined for a loan, it is very likely simply because you have a bad credit score. The main way to get a bad credit score is to have a lot of open credit or to have had a lot of late payments (in some cases, no payments made at all).

Financial institutions such as banks, car companies, lending agencies, credit cards and many others use your credit score as a wage of your ability to pay off the credit card. Not only can having bad credit work against you, but also NOT having any credit can be bad.

You would think that not having debt would be a positive thing, however, if you have no debt, no credit card, then there is no way for the credit reporting agencies to track your ability to pay - so that is why it can actually be recommended to get a credit card with your name on it when you're young (just make sure the limits are very low and that you pay off every penny on time).

Were you recently denied for a loan or a credit card? When you apply for a loan, there are only a few factors that actually impact whether you get approved not. A part of the decision is based on the information you submit to the organization, however a much larger portion of the decision is based on your credit score.

So, if you were declined for a loan, it is very likely simply because you have a bad credit score. The main way to get a bad credit score is to have a lot of open credit or to have had a lot of late payments (in some cases, no payments made at all).

Financial institutions such as banks, car companies, lending agencies, credit cards and many others use your credit score as a wage of your ability to pay off the credit card. Not only can having bad credit work against you, but also NOT having any credit can be bad.

You would think that not having debt would be a positive thing, however, if you have no debt, no credit card, then there is no way for the credit reporting agencies to track your ability to pay - so that is why it can actually be recommended to get a credit card with your name on it when you're young (just make sure the limits are very low and that you pay off every penny on time).

I recently saw on CNBC that a new credit bureau called VantageScore is trying to update and levelize the way that credit scores are tabulated for creditors. Their "leveled credit characteristics" across the three credit agencies, Equifax, Experian and TransUnion will try to ensure that any credit score differences for the same consumer are attributable to what is in each agency's database, not the scoring algorithm itself.

It is a little known fact that credit scores from the different credit bureaus can differ markedly in the score they give the consumer. Each may have different credit card and mortgage loan histories, and one or all of them could have erroneous or incomplete data that can affect the credit score. Most lenders will report to one or two, but not every one of the lenders report to them all. FairIssac, the developer of the original credit scoring system, has always been the "gold standard" of credit score numbers. VantageScore may change that.

VantageScore is unique as the first credit scoring model to be developed jointly by the national credit reporting agencies. That way, VantageScore can enjoy the expertise of industry specialists to lessen score variability and increase consistency in the consumer's credit score. This can eliminate confusion for you and your lender.

To start with, VantageScore uses a different score range than the FICO Score model. The VantageScore range is 501-990. Using multiple scorecard technology, VantageScore seeks to give the lenders superior risk prediction. This results in a stronger separation of good and bad performing accounts. The new scoring system returns more predictable scores on "thin-file" consumers, which are those with little credit history to score. So, even if you have limited credit history, lenders can use VantageScore to best assist you under varied circumstances.

So you want a credit card but have a bad (or no) credit record? Don't despair! With secured credit cards, no credit checks will be made against your name when you apply. As long as your age, residence and social security number all check out, acceptance is guaranteed!

Here's how secured credit cards work. You apply just like any other credit card, but with secured credit cards you also deposit a sum of money in a linked, interest-paying account. Initially at least, the amount of money in your savings account then becomes your credit line.

Clearly this means that, to start with at least, you can't use a secured credit card to borrow money you don't have - so it's not a method for getting yourself into more debt.

However, the big advantage is that your card can be used just like any other credit card to buy things, whether on-line, over the phone or in person. There is nothing on the card to reveal that it is a secured card. The only people who will know this are you and your card issuer. So if you need a credit card and can't otherwise get one, a secured credit card could be the ideal solution for you.

Not only that, the best cards report to the three main credit reference agencies (Experian, Equifax and TransUnion) every month. As long as you use your credit card responsibly and pay off at least the minimum balance each month, your actions will help to repair your credit record, or to establish one for yourself.

Within a few months, if you have shown that you can use your card responsibly, you are likely to be offered a bigger credit line by your card issuer. With your ever-improving credit history, you may also be able to apply successfully for a standard credit card or other forms of credit (such as a bank loan).

One drawback with secured credit cards is that, unlike ordinary credit cards, you may be asked to pay a processing fee when you apply. This is in addition to the money you will have to deposit with the issuer as security. If you regard this as a stepping stone to establishing a good credit record, however, this one-off fee is literally a small price to pay.

Secured credit cards are available from a growing number of issuers. One example is the New Millennium Bank, which offers a secured Platinum Visa® or Mastercard®. As well as the benefits mentioned above, the NMB card offers $100,000 travel accident insurance, extended warranty protection, and a special high introductory savings rate on your deposit.

As with all credit cards, however, it is important to shop around and not simply apply for the first secured card you see. Different cards offer different combinations of terms and incentives, and the best card for one person may not be the same as for his or her neighbor. Credit card comparison sites such as http://www.finest-credit-cards.com make this easier for you by listing all the best current credit card offers, and also have a range of articles offering independent advice and information.

The credit score was invented about 40 years ago by Fair Isaac Corporation. A FICO reference on your credit report alludes to that score. It is considered the standard in the financial services industry and is used by all three of the major credit bureaus. FICO scores consider a wide range of information on your credit report, primarily your credit history, your payment history, the number of credit accounts you have and how much you owe.

Personal and Sensitive Information

However, Personal information is not considered or included in your credit score. You can rest assured that sensitive information is protected by law and that by no means is included within your credit score calculation or your credit report for that matter. Data that is not considered includes many personal information protected by several statutes.

Race, religion, national origin, sexual orientation or marital status is not part of the credit score formula. It is against the law in the United States to consider any of this information in credit scoring. Including information on receipts of public assistance, or the exercise of any consumer right under the Consumer Credit Protection Act is also illegal.

Your age is not considered in a FICO score nor is your salary, occupation, job title, employer, and employment date or employment history. Although lenders consider this information, it is not included in your credit score where you personal life is not an issue. Some of this information may be included however in your credit report but will not be used to calculate your credit score.

Financial Information Left Aside

The interest rate being charged on a particular credit card or account or Child/family support obligations or rental agreements won’t be included in your credit score either. All this information can be requested by a lender when you apply for a loan of a significant amount but won’t be part of your credit score as only basic items are components of the credit score formula.

Obtaining an annual free credit report can keep you on top of your credit and allows you to check if there are any errors on your credit report. By receiving a credit report annually you can keep one step ahead in making sure there are no problems with your credit score.

There are three big firms that are nationally operated which you can receive an annual free credit report The “big three” are: Equifax, TRW, and Trans Union Corporation. You can contact any of these credit bureaus to receive an annual free credit report. You can also check your local agencies as well but they generally charge a fee for this service.

The free credit reports will not automatically be sent out to you as the consumers need to request getting a report one of the following ways. You can go to www.annualcreditreport.com and obtain a credit report. This is the only authorized source for credit reports where customers can access their information online. This service is free of charge. You can also call 877-322-8228 to receive a free credit report. The last thing you can do is fill out completely the form on the back of the Annual Credit Report Request brochure and then mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281. Make sure that you go through the centralized agency as by obtaining your report from other agencies you will not receive an annual free credit report but you will be charged for their credit services.

It does not take much time or effort to receive an annual free credit report. It is an important document as it could have ramifications to your employment, loan applications, and benefits. Considering the service is free there is no reason not to check up on your credit score to see if it can be improved or there are errors which need to be addressed. Checking on your credit should be an annual ritual as it is more important to know the status of your credit that the score that it holds.

It started out innocent enough; Pricilla had refinanced her mortgage many times in the past. First, when she bought her small two bedroom one bath bungalow in an up-trending neighborhood, with a local sponsored low down payment program. As a single woman it was a challenge with her income level at the time. It was an excellent value with an extremely motivated seller offering many seller incentives such as paying for all her closing costs and prepaids. Three years later, with a new promotion and higher pay, Pricilla decided to add an additional bedroom, bath and a pool. This was a special program, which refinanced the first mortgage and escrowed sufficient monies to put on the addition and add the pool all in one new loan. As it mimicked a construction/perm type loan which carries a little more risk and a higher interest rate in this case. After five years with current interest rates below what Pricilla was paying on her construction/perm type home improvement loan she decided to shop for a loan. Pricilla had always utilized the same mortgage broker who worked so hard to get her credit straightened out and position her to buy with the special subsidized program on her original purchase of the bungalow. Now married, with three young children, Pricilla never forgot the incredible lengths which Emily, the mortgage broker, had taken to get her into the house. Emily had kept in touch though out the years and Pricilla was quick to pass along many referrals of friends and family to Emily who had always done an outstanding job of getting a good market rate and reasonable closing costs. Many of the referrals had challenged credit and Emily systematically worked to get them on track and over a few months time were able to buy their own home. Pricilla and Emily had become friends and shared many family experiences over their time from the first meeting. Emily had acted as a matchmaker resulting in Pricilla marrying her husband. In Pricilla’s mind, Emily was more than a mortgage broker, she was indeed a close friend

When you go check your mail how many credit cards are there in the box? Most people get a credit card offer in the mail every week; one credit card company or another is trying to get you to get their card. Before you make your choice of cards, you may want to check a few things to make sure you are getting a good card.

One thing you will need to look at is bank in which the card comes from. If you like to travel you will want a card that is accepted all over the world. You don't want to be on vacation and find out that your card is not accepted. You will want to check and see where your card is accepted, as some are more widely accepted than others, if you do not travel much this will not be as big of a concern for you.

Next you will want to look at interest rates. If you are a person who pays their card off at the end of every month this will not be as big of a concern to you. If you pay the full balance you will not get charged any interest. For those that cannot pay the whole balance every month, you will want to know what your interest rate is. The lower your rate is the better. The less money you have to waste on interest the better off you will be. Make sure you read all the information about the interest rate. Usually you start out with one interest rate, and if you make late payments they will up your interest rate. You will want to know what the default rate will be on your card just in case they try to do this. Make sure you read the fine print to make sure you know everything you need to know.

Another thing you will want to check is if there is an annual fee. Some cards will charge you a fee every year just for having your card. Other cards may only charge you an annual fee if you don't have a certain balance, or a balance for a certain amount of time. Other cards will not charge you an annual fee at all. Make sure you look into this too before you choose your card.

Most people get credit card offers in the mail all the time. Each card offers you something a little different in order to get your business. Now credit card companies are using reward systems to get people to sign up for their card. For the consumer this is great. You can now get rewarded just for using your credit card that you were going to use anyway. There are a few things to look for when you choose your card.

First you will want to know which card is offering what. If you travel you will want to get a card that is widely accepted, if you do not travel you may not care as much. Each credit card will offer you something different to try and get your business. They will always be trying to give you a better deal so you will choose them.

Next you will want to know what kind of reward system your credit card uses. If you travel a lot you may want to choose a card that rewards you with frequent flyer miles. This is a good way to get some free miles just from using your card on a regular basis.

You will want to see how many miles you have to have before you can cash them in. If you have to have a huge number of miles if may be very hard to reach the amount. You will also want to know how much money you have to spend to earn a mile. Another thing you will want to know is when and where your miles can be redeemed. You will want some flexibility with when you can take your vacation, and where you get to go.

Other rewards may be in the form of points. You may be rewarded points for the dollars you spend on your credit card. Again you will want to know how many points you get for every dollar you spend. You may also want to know what you can use your points for. Some cards are more flexible with what your points can be used on. Some cards let you convert the points into dollars that can be subtracted form your balance. Some have some great things you can buy with your points.

Cash back is another reward that is very popular. You can earn a certain percentage cash back on all you purchases. This is a great way to earn a little cash. You will want to know what percentage you are earning, and when you can get your cash that you've earned. Some companies will only let you use this cash at certain retailers, while others will let you use it towards your balance, or use it for gifts they have available, while others may send you an actual check for the amount. You will want to know how much flexibility your card offers before you choose.

For several years now, one of the most sought after features on a credit card has been a long 0% balance transfer deal, almost to the exclusion of any other feature except maybe the headline interest rate of the card. More recently though, balance transfers have become less popular, not least because of the introduction of transfer handling fees, and there's now a new feature that more and more customers are considering to be of higher importance, namely cashback.

According to recent research, over a fifth of us now use a card that offers cashback or a rewards scheme, and the number has recently overtaken that of balance transfer users for the first time. So why has a seemingly simple feature such as cashback displaced the once mighty balance transfer deal in our priorities?

Credit cards have always suffered from the perception that they are expensive to use, with high interest charges and penalty fees - a reputation, it has to be said, that isn't altogether undeserved. Cashback cards give us the opportunity to turn that on its head, and actually come out on top financially by using our cards for everyday purchases.

For every purchase you make, a cashback card will effectively give you a refund of a small percentage of the purchase price. In the early days of cashback, this percentage was so small it was hardly worth considering - a 0.25% rebate was virtually worthless to most people with moderate spending habits. These days however, the figures are much more attractive, with a 3% rate not uncommon as an introductory offer. This kind of rebate is definitely worth having, and if you use your cashback card for all of your day to day shopping, the numbers can mount up surprisingly quickly.

Minimize Credit Card Spending During the Holidays

The holiday shopping season is a much-anticipated time of year for both the retail industry and consumers. For the retail industry, the largest percentage of their sales are earned during the holidays by consumers who have failed to plan and are easily lured to make impulse purchases for shiny new gadgets. Consumers on the other hand make a dash for the mall, credit card in hand, in search of a thrill from the fancy decorations and Christmas music, the sale signs, and the crowds. At the end of the day, or shall I say in January after things have calmed down, consumers are weeping because of their huge credit card bills wondering where all the money went and retailers are laughing all the way to the bank or the board room. While, its not such a bad thing for the retail industry, how can we as consumers make sure that we are not weeping but celebrating along with the industry? It is simple. We can develop a plan and a budget, which includes shopping year round for gifts and doing some comparison-shopping.

Christmas comes the same time every year. We have approximately 12 months to develop a plan and to execute it if we desire to save money and keep our credit card balances low. Why wait until December 1 or Black Friday to begin our Christmas shopping? For the adults and even some of the children on our list we can shop for gifts year round.

Your credit score is a mathematical calculation done by the credit bureaus to determine your credit worthiness. A high credit score means you are a good credit risk; a low score means a lender will only lend to you if they charge you a high interest rate, or if you provide outside security, such as a car or a house.

A good credit score is important, because the better your score, the easier and cheaper it is to borrow. Even a one percent reduction in the interest rate on a mortgage can save you thousands of dollars in interest payments over the life of the mortgage.

How do you establish a good credit score? Follow these steps.

First, pay all of your bills on time. Never pay your hydro, phone or rent late, because that may significantly lower your credit score.

Second, if you are starting with bad or no credit, apply for a secured credit card. Since you are, in effect, prepaying for your purchases by putting up a security deposit, it is relatively easy to qualify for a secured credit card, and it is a good way to build towards a good credit score.

Third, check your credit report regularly. Errors happen, and if your credit report has inaccurate information, your credit score will be harmed, even though it is not your fault. Experts recommend that you check your credit report at least once each year, and before every major purchase.

If your credit score is not good, consider asking a trusted family member or friend to co-sign a loan for you (but be sure you can pay it back, or else your co-signor is liable for all of the payments).

According to statistics in a recent survey, less than half of those who apply for a credit card shop around at all. They either accept the credit card offered by their bank or another organization, or they fall prey to a credit card advert that lands in their post box. Is that any way to find the best credit card deal?

The question is rhetorical, obviously - but what's not rhetorical is the need to do a bit of homework before you apply for a credit card. The wrong choice can cost you thousands of pounds over the course of a few years.

Some wrong choices jump right out at you. If you can qualify for a low interest credit card, you'd be a plumb fool to apply for one with an APR of 34%. Keeping your eye on the average typical interest rates can help you avoid applying for credit cards that offer outrageously high interest rates.

Other times, though, it's not so easy to recognize which credit cards to avoid. As often as not, it's a matter of using a perfectly good credit card for the wrong purpose. Low interest balance transfer cards are a good example. Most people are drawn to low interest balance transfer cards because of the low APR on transferred balances. They usually carry a higher rate of interest on new charges to your card. They also usually apply your payments to the balance transfer first. That means that until your transferred balance is paid off in full, any new purchases that you put on the card will sit and accumulate interest - on which you'll pay interest.

There's been a lot of press lately about the demise of balance transfer credit cards. The reports of their death, to use an old quote, have been greatly exaggerated. Balance transfer credit cards have changed considerably, but they're far from gone and not likely to be going anywhere anytime soon. If you've been considering cutting your interest payments by transferring the balances on your high interest credit cards to one with a special balance transfer deal, here's what's going on in the world of balance transfer credit cards.

For years, credit card companies were able to build their business by enticing new customers from the ranks of those who'd never held plastic before. But with the numbers of credit cards in circulation rising and the average Brit carrying four different cards in his or her wallet, they've had to get competitive with each other. Thus was born the marketing tactic of offering 0% interest for any balance transferred from a competitor's credit card to a new card.

Those 0% balance transfer deals were greeted enthusiastically by the public – a bit more enthusiastically than the issuers of those cards expected. They missed a vital point in their calculations – customers who switch cards for a better rate of interest have already given up brand loyalty in the interest of getting the best deal. When the 0% interest ran out, they simply moved their remaining balances to another card. To counter that, the big credit card companies started modifying their offers with restrictions designed to keep people from jumping from card to card following the best rate.

Start by choosing the right credit cards when you apply for a credit card. Compare credit cards that you're considering at a site like moneyeverything.com and only apply for those that offer low or no annual membership fees. Watch the APR when you compare credit cards, but look beyond it to find out how interest charges are calculated, how long your interest free period is and how many days leeway you have before your payment is judged to be late.

How to Beat the Interest Charges
A large part of the high cost of using credit cards comes from the interest that you pay. You can avoid ever paying a jot of interest by paying your account in full each month. Of course, that's not always an option - after all, one of the reasons to use a credit card is to afford things you can't pay for all at once. In that case, make long term purchases on the credit card with the lowest interest rate and pay it off as quickly as you can. Don't use that credit card for anything other than long-term purchases and pay more than the minimum every month.

How to Beat the Minimum Payment Trap
It's easy to stay in debt forever with credit cards. Just pay the minimum payment every month. If you have an account balance of £1000 on a 14% APR credit card, and pay the standard minimum balance of 2.5% each month, it will take you 52 months to clear the balance, and you'll pay £300 in interest. That's over four years. Pay twice the minimum - just another £25 per month - and you'll have the balance cleared in less than two years, and save £150 in interest charges.