Credit Card Comparison Blog

What You Need to Know About First Premier Bank

What You Need to Know About First Premier Bank

I have had the First Premier Bank MasterCard for about six months now. Overall, I am glad that I went with this credit card. But, here is what you need to know before you sign up for a credit card from First Premier Bank.

One of the reasons I signed up for the First Premier Bank MasterCard is because of its low APR and its monthly reporting to the credit agencies. My credit wasn’t necessarily “bad”, but it wasn’t perfect either. I figured that if I was careful and responsible, this monthly reporting could really be advantageous to me and my credit report.

It turned out that I was right. My credit has gone up considerably and the only thing that I have done different is have this credit card. Having First Premier Bank report my account status to each of the four credit bureaus each month has made a huge difference for my credit. It makes me wonder how much lower my credit would be today if I hadn’t signed up for a credit card that reported each month.

I have also loved the low APR. My APR is a variable rate currently set at 9.9%. It has been set at 9.9% since I opened the account. It is nice because if I can’t pay off the entire balance each month (which is something that I really try to do), it won’t end up costing me an arm and a leg.

The customer service department has also been great to work with. I can call them up any time and they are happy to answer my questions. Since I am paranoid about the smallest things, I have actually called the customer service department quite regularly. They have always been a pleasure to work with. It makes me feel even more confident and pleased with my choice to get the First Premier Bank MasterCard.

However, just like every credit card company, First Premier Bank loves to send notices and it is so important to read the fine print. Credit card companies are notorious for “fine print” notices. You can’t afford not to read these notices. If you don’t, you could be stuck with extra fees or rate increases. First Premier Bank is no different from all of the other credit card companies out there when it comes to delivering these lovely notices.

Overall, I have been pleased with my choice to sign up for the First Premier Bank MasterCard. If I wasn’t so paranoid and hadn’t been reading the fine print, my experience might have been different. But, that will be the same no matter which credit card company you choose to go with. First Premier Bank is a good choice for its customer service department, its low interest rates and its monthly reporting to the credit bureaus.

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3 Main Reasons Why I Rely So Heavily On Credit Cards

I love credit cards; I have loved using credit cards for as long as I can remember. I need to be clear however, that I do not ignorantly spend or run up debt that I cannot pay off at the end of the month. There are three main reasons why I rely so heavily on credit cards and I have outlined them below:

1. Ease of use. I never carry cash, ever!

2. Year end financials are pre-organized by card provider

3. Travel perks

I would like to spend some time today focusing on perk #3. Let me just be frank, I have not paid for an airline ticket in at least 5 years. Yes 5 years. Now mind you that from time to time when the airlines have slashed prices or had promotions, I may have decided to save my miles and purchase a ticket, but my usage of my American Express Delta Sky Miles card has allowed me to travel as I please. I am a small business owner, hoping to one day be a large business owner, but have used the AMEX for almost all of my day to day purchases for office supplies and equipment.

In my business I can be found buying anything from a new fax machine, reams of paper, to lunch for the entire office. Why would I want to write checks or pay cash when I can get miles for using my card? I must remind you that more than just the miles for my card and travel perks, I love how my purchases are itemized monthly and again at year end.

Perhaps one of the most exciting trips I have taken almost completely on travel award points from my American Express Delta Sky Miles card, has been our family trip to Greece! If you have never been to Greece, I strongly suggest getting an AMEX, charging it up and making plans to hang out on the cliffs of Santorini, overlooking the Mediterranean Sea.

Eric Kandell

Owner

LowVARates.com

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Credit Cards With No Annual Fees

Does it really make sense to pay an annual fee to your credit card company? Absolutely not. Annual fees usually guarantee that the cardholder qualify for exclusive benefits and offers. However, there are plenty of credit cards out there that offer incredible benefits without an annual fee.

Here are just a few.

Citi Platinum Select MasterCard
What’s so great about the Citi Platinum Select card? Well, for starters, there is no annual fee associated with this great credit card. You will also earn 0% interest on all of your balance transfers and purchases for the first year. You will be protected against fraud through Citi’s Identity Theft Solutions program. This means that you won’t be held responsible for any unauthorized purchases. You can take also take advantage of Citi’s free online account management center which helps you take complete control of your account. Lastly, you’ll get some added incentives from Citi. These incentives include: exclusive discounts and savings on travel purchases, merchandise, gift cards, etc. You don’t have to pay an annual fee to get exclusive benefits with the Citi Platinum Select MasterCard.

TrueEarnings Card from Costco and American Express
You’ll get the best of both world with the TrueEarnings card from Costco and American Express. You don’t have to pay an annual fee for your credit card when you simply pay the low Costco membership each year. Each time you use the TrueEarnings card, you will automatically earn cash back. You’ll get…

-3% cash back for all of your gasoline purchases per year up to $3,000
-1% cash back for all gas purchases over $3,000 per year
-3% cash back for all of your restaurant purchases
-2% cash back for all of your travel purchases
-1% cash back for all other purchases

There is no limit to the amount of cash you can earn with the TrueEarnings card from Costco and American Express. Instead of having two different cards (one American Express card and one Costco membership card), the TrueEarnings card serves as both. Therefore, you’ll have more room in your wallet and more cash in your account from all of the cash you will earn.

It simply doesn’t make sense to pay an annual fee. Paying an annual fee really doesn’t ensure that you will receive any better rewards than other reward credit cards. Check out the Citi Platinum Select MasterCard or the TrueEarnings Card from Costco and American Express to take advantage of incredible deals without paying an annual fee.

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Are You Using Your Credit Card Rewards Program Correctly?

Are You Using Your Credit Card Rewards Program Correctly?

There are countless credit card rewards programs out there. These programs have become extremely popular in the past several years. Consumers like the fact that they can get “paid” for using a credit card. However, there is one important thing to consider. Are you using your credit card rewards program correctly?

In order to use this program correctly, you must be using your credit card correctly. Afterall, does it really makes sense to accumulate reward points if you are paying outrageous amounts in interest? Absolutely not.

Similarly, the points you cash in don’t mean a thing if you aren’t using your rewards program correctly. Follow these easy steps to get the most out of your rewards program.

1. Stick to your budget. What good does it do to your finances if you are consistently overspending every month? Sure, it can really pay off to use your credit card to make everyday purchases, but you need to keep those purchases in check. Don’t spend more than you make. If you do, you will have an easy time getting into credit card debt. The rewards points you accumulate won’t go very far in helping you get out of credit card debt. So, make sure you stick to your budget.

2. Are you paying off the balance every month? Do you pay off your credit card balance every month or do you let the balance roll over? Your balance shouldn’t be accumulating…your points should be. By not paying off your balance every month, you end up paying interest to those lovely credit card companies. The interest you end up paying completely negates the rewards points you accumulate.

3. Fees. Anytime you pay a credit card fee, you are wasting your money. These fees range from $15 per fee to almost $100 per fee. Trust me, the points you earn by avoiding whatever you were avoiding are not worth it. It is more worth it to keep that “fee money” in your wallet.

Millions of credit cardholders use rewards programs. In order to get the most out of your rewards program, you need to be using your credit card correctly. While it is important to earn and accumulate points, it is more important to stick to your budget, pay off the entire balance every month and avoid paying any fees at all costs.

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Another Economic Recovery Plan?

Another Economic Recovery Plan?

The federal government is planning on spending another $19.904 trillion of your money and my money. What is the justification of such spending? Why, to save the economy of course.

According to the Economic Times, here is a breakdown of the plan:

-The Obama Fiscal Stimulus Program-$787 billion will be spent on infrastructure, unemployment, state aid, etc

-Housing Support-The Federal Housing Administration will be will $300 billion to refinance troubled mortgages. $25 billion will be spent in modification costs of the mortgages. $6 billion will be spent on grants to local communities that will help each of them stabilize their communities. $1.5 billion will be used as relocation aid for people who are renting because they have been forced out of their homes due to foreclosures

-Mortgage, Consumer and Credit Markets-approximately $1.6 trillion will go to supporting these markets

-Insurance Corporation Guarantees-approximately $1.9 trillion will go to the FDIC

-Fannie Mae/Freddie Mac Support-almost $400 billion will be given to Fannie Mae and Freddie Mac

-Commercial Paper Funding Facility-almost $1.8 trillion will be spent to buy “U.S. dollar commercial paper”

-Currency Swap Lines-an unlimited amount will be set aside to facilitate currency swaps between the Federal Reserve and the European Central Bank, as well as with the central banks of Japan, Switzerland and Great Britain

-Money Market Investory Funding Facility (MMIFF)-the Fed plans on spending nearly $600 billion to be placed in a MMIFF

-Discount Window Lending Commitments-an unlimited amount of money has been committed to lend money to banks through discount window lenders

-Bear Stearns Sale Support-$29 billion will be given to JPMorgan Chase to finalize the buyout of Bear Stearns and Co.

-Auction Facility Loans-Federal Term Auction Facility Loans will be offered at bi-monthly auctions

-Term Securities Lending Facility-loans of about $200 billion will be given to primary securities dealers

-Treasury Troubled Asset Program-$700 billion will go to the United States Treasury to back up the U.S. financial system

-AIG-an original $70 billion will be given to AIG through capital investments. Another government credit line of $60 billion will be given to AIG, as well as $52 billion in loan assets

-Treasury-Led Public-Private Investment Fund-a public/private investment fund will be established by the Treasury. The fund would purchase troubled assets from banks and would also establish “benchmark” prices

-Money Market Fund Guarantees-Almost $50 billion will be spent to boost confidence in money market mutual funds. The money will come from The Great Depression-era Exchange Stabilization Fund

As you can see, an extensive amount of taxpayer money will be spent on “saving the economy.” Most taxpayers don’t realize the true extent of this economic recovery plan. This is not just a $787 billion economic recovery plan that was signed into legislation. This is a major $10.9 trillion project that the government has undertaken. And, it most definitely, affects your finances and mine.

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2009 Credit Card Forecast

Banks and credit card companies have begun to realize how dangerously close to the edge they got when it comes to credit cards. These companies offered too many sneaky practices and consumers took advantage of the opportunity to have too many credit cards.

Over the past few years, the country’s economic state has been sliding into oblivion. What has been the main culprit? The misuse of credit cards.

Let me first say that credit cards CAN be a very beneficial asset when used correctly. When consumers use their credit cards responsibly, and practice money management their credit score can be increased drastically and quickly. However, too many people have gotten too used to misusing their credit cards.

Financial experts have predicted that the number of credit card defaults will increase by more than 10 percent in 2009. This huge increase in defaults proves to have a major affect on lenders’ annual profit. In fact, these defaults could demolish annual profits by more than 55 percent.

As people continue to face job layoffs, they continue to use their credit cards unwisely. Gas, groceries and other necessities are purchased with plastic. When it comes time to pay the minimum balance (let alone pay off the entire balance), consumers can’t come up with the cash.

Credit card charge-offs are looking even worse for 2009. A charge-off is when a lender deems the debt to be completely uncollectable. The number of charge-offs that are expected in 2009 is an extremely alarming number. The percentage of 2009 credit card charge-offs could reach more than 15-16%.

Credit card companies are trying to raise interest rates in order to combat the rising number of defaults and charge-offs. They can’t keep this up for long though. The U.S. Federal Government has signed new legislation that prevents these practices. However, the legislation won’t take affect until 2010.

The entire credit card situation does not look very promising for 2009. However, you can reduce the number of defaults and charge-offs by using your credit card responsibly.

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The Housing Market

The Housing Market

The U.S. housing market needs some serious TLC. It has been really struggling for quite some time now. Homeowners, who once depended on the equity in their home, are now left with virtually nothing.

At the same time, some buyers are hopeful about this market. These individuals hope to get “screaming deals” on incredible homes. If you fall into this category, you need to consider the housing market in the area where you want to buy.

Here are the best and worst housing markets in America today.

Worst
San Francisco
Detroit
Minneapolis
Phoenix
Las Vegas

Best
San Diego
Charlotte, N.C.
New York
Portland, Oregon
Washington, D.C.

It will be extremely beneficial to consider the shape your area’s housing market is in. Obviously, some areas are doing better than others. For instance, Las Vegas has always been known for its high property values. But, did you know that homes in Las Vegas haven’t been worth any more than the average home since August of 2003?

While some areas seem to be doing better than others, the overall U.S. housing market is in a complete slump. Each individual housing market, and the national housing market, has the potential to be a complete roller-coaster.

At times when employment is better, the housing market seems to do better because more people can afford homes. When unemployment is on the rise, the housing market, often times, takes a complete nose dive.

If you are considering buying a home in this market, it is so vital that you do your homework. Look at your individual area and health of the housing market there. If it is experiencing slow growth, carefully examine the time period that it has been down. Another helpful yardstick is to examine how many months of equity individual homeowners have lost. Many areas have county websites that should provide this information.

Although the U.S. housing market is in an overall slump, there are still areas that appear promising. If you are considering buying a home this year, take this into consideration.

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Practically Using Plastic - 5 Tips

Practically Using Plastic

Do you know of anyone who let their credit card purchases get a little out of hand? You probably do. In fact, with all of the instant approval credit cards these days - too many people have let their credit card situation get way out of hand.

Did you know that there are ways to use your plastic practically? It isn’t hard and it can certainly save you a great deal of money and headache. Here are a few ways to use your plastic practically.

1. Keep it simple. A common credit card misconception is that the more credit cards you have, the better. Although it is beneficial to have “a few” credit cards, it can hurt your credit to have too many credit cards. Not to mention the fact that it is hard to stay on top of that many credit lines. Start out with just one credit card. Use this credit card for small purchases. Get into the habit of paying off one credit card each and every month. After you have used this card responsibly for a while, you can add one or two credit cards to your wallet.

2. Stay informed. Not many consumers realize that there are many warning against having too many credit cards. The average consumer has anywhere between 8-10 credit cards. Common sense should tell you that that is too many. Each time you sign up for a credit card, you need to know vital information. Be sure to know exactly what all of the terms of the card are. What is the interest rate? What is the due date? Is the interest rate fixed? Is there an annual fee and how much is it? Are there any extra/hidden fees? Don’t enter into a credit card contract without knowing absolutely everything about the terms and conditions.

3. Be smart. Many consumers are completely smitten when they hear, “0% Interest for the first 12 months.” What they don’t realize is that the entire balance needs to be paid off by the time the first 12 months is over. If it isn’t, you could be nailed by extra fees and interest charges. These charges and fees could completely negate the benefit of having 0% interest for an entire year. Be smart with those interest payments and introductory offers.

4. Pay your bills…on time. There is no excuse to pay your credit card bill late-ever. Late payments can really bury you. If you have to remind yourself everyday for an entire month, do it. The extra hassle of staying on top of your bills will outweigh the cost of late payments.

5. Pay off the entire balance. Credit card companies thrive off of interest payments. Think back to the interest payments you’ve paid your credit card company over the past year. Is it enough for a small fortune? What would you do with that money if it hadn’t left your pocket? Pay off the entire balance every single month—no excuses.

It is time for Americans to start using their credit cards wisely. I can’t help but think how different the country’s situation would be if Americans were smarter with their purchases and finances. It’s time to start using your plastic practically.

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4 Things You Need to Know About Prepaid and Secured Credit Cards

Are unsecured credit cards in high demand right now? Unsurprisingly…no. On the other hand, a different kind of credit card are in high demand. Prepaid credit cards and secured credit cards.

Why? Banks, credit unions and credit card companies are much more resistant to lend to to less-than-perfect consumers. Spending on a prepaid credit card is limited because the consumer can only spend as much as has been “loaded” onto the card. A secured credit card is one that has an asset tied to it which can be repossessed by the creditor in the event of nonpayment.

These different category of credit cards have generally been marketed to people with a limited or poor credit history - especially instant approval credit cards. However, more and more consumers are considering prepaid and secured credit cards to combat the danger of skyrocketing credit card debt.

However, there are many things to consider.

1. Protection. There aren’t any prepaid cards that offer any protection against unauthorized charges, fraud and/or theft. Some secured credit cards limit the cardholder’s liability to only $50, but the charges must be disputed within 2 business days. After 2 business days, the cardholder’s liability increases to $500. After 60 days, the secured credit card offers no protection whatsoever.

2. Reporting to Major Credit Bureaus. If you prefer your credit card activity to be reported to all of the major credit card bureaus often, a secured credit card is a good choice. Responsible usage of secured credit cards are an excellent way to rebuild or build a solid credit history. While secured credit cards do report to TransUnion, Equifax and Experian…prepaid credit cards do not report to any of these credit bureaus.

3. Fees. Prepaid and secured credit card companies do not make their money in the traditional way. They do not make money off of interest payments because the consumer can only spend “so much.” They have to make a profit another way. This often includes monthly fees, transaction fees, ATM withdrawals, etc.

4. Costs. Hidden costs might be more prevalent with prepaid and secured credit cards than with unsecured credit cards because the credit card company cannot make money off of carried balances and interest payments.

More and more consumers are becoming aware of secured credit cards and prepaid credit cards. They are a good choice if you are looking to keep credit card debt to a minimum, yet still build your credit history.

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The Number One Secret to Drastically Reducing Credit Card Debt

The Secret to Drastically Reducing Credit Card Debt

Americans all over the country are extremely interested in drastically reducing credit card debt these days. Our country has spiraled out of control, as far as the economy goes. Millions of American families have recently found themselves unemployed or in the middle of a nasty foreclosure.

The amount of credit card debt that the majority of our citizens have accumulated certainly isn’t helping anything. Everyone is looking to reduce credit card debt. Even those consumers who are relatively stable, financially, are coming up with ways to reduce the amount of credit card debt attached to their name.

There are many ways to reduce credit card debt. They include…

1. Recalculating your budget to make increased credit card payments.
2. Becoming extremely self-disciplined and determined to pay off the “plastic.”
3. Researching debt consolidation companies and hiring a reputable company.
4. Using a debt elimination company.
5. Etc.

What most people don’t realize is that you can drastically reduce your credit card debt all by yourself. It takes a certain level of determination and will-power, but it can be done. You don’t necessarily need to hire a company to help you get rid of unnecessary credit card debt.

The secret to drastically reducing your credit card debt is to stop using your cards. Seems too easy doesn’t it? If you stop using your credit cards and continue making increased payments, you are bound to free yourself from credit card debt.

The problem is that many people get over their heads in credit card debt. They keep making payments, but they also keep using their cards. Instead of the credit card balance going down, it stays the same or increases.

Some consumers refuse to put away their credit cards because they say that the use of these cards is necessary for their credit score. If this is the case, try using a prepaid credit card. Your credit score will continue to go up, but you will be protected from spending more money than you have.

If you are looking to get out of credit card debt, try stop using your credit cards. Keep making your payments or even pay extra each month. You will be quite surprised how easily your credit card debt will be eliminated.

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