If you don’t have a savings or checking account, you should start one. Credit card issuers often require that you have a bank account before they will issue you a credit card. There are “no bank account” cards that are pre-funded. That means that you re-load the card with money in order to use it. These are good for people who want to control their spending and don’t want the temptation of having an open credit line, this is the easiest way to apply for a credit card.

Some issuers will issue a guaranteed credit card in which you must start an account with the same amount of money as your card’s spending limit. For example, if you want a card with a £500 credit limit, then you have to open up a savings account and put £500 in it. With this type of card, called a “secured” credit card, you can use a good payment history to establish or re-establish your credit history. After several months of paying on time, you can improve your credit standing.

If you aren’t happy with the credit cards you can apply for from your local bank, there are dozens of credit cards you can apply for online. The website creditcards.com has several methods of comparing different credit cards based on a number of factors. For example, you can make a comparison of credit cards based on interest rates, annual fees, cash back, reward programs, or just about any other variable.

In many cases, you can go to an issuing bank’s website and apply online. Sometimes – particularly if you have very good to excellent credit – you can get an acceptance within minutes. If you don’t get instantly accepted, it doesn’t necessarily mean you were rejected. Some issuers don’t give out instant acceptance. And in some cases, if your credit history is borderline, they may want to review it more closely before giving you an answer.

There are more places than ever that you can apply for a Visa credit card. You have more options than ever in terms of rewards, interest rates, and fees. The better your credit, the more choices you will have.

The first thing you should do is read the fine print. Find out what the company’s really offering. Are they offering an initial special that will soon expire? What kind of interest rate are they offering? These are major questions you need to consider before you sign up for any credit card. If you do your homework, however, and you really examine each card offer that comes in, you’ll soon find the credit card deal that suits you best.
Introductory Rates and Specials
Most of the credit card offers you get in the mail have introductory rates and other specials designed to lure you into signing up. What most people don’t realize is that those offers will expire at some future date. That’s why you must read the fine print. Too many people get into trouble because they sign up for the cards without knowing that their interest rate is going to double or even triple in a few months. Don’t get into this trap. Read the fine print and make sure the introductory rates and specials last for as long as possible. And if they do end, make sure the new rates are such that you’ll be able to afford them.

Do Your Homework
The best way to find the best credit card offers for you is to do your homework. Get online and start searching the various credit card companies and offers. You don’t have to rely on the card offers you get in the mail; you can find your own card by doing a little searching. One good way to go about finding the best credit card deals for you is to check with your bank. Your bank will usually have credit card offers just for you, and applying through your bank is a great way to get a good interest rate; provided you’ve been a good customer.
If you do your homework and remain picky about the credit card offers that come your way, and you read all the fine print, you should be able to find a credit card deal that’s perfect for you. Once you have that card, be careful to only use it when you need it. Use it and then pay it off. Don’t get in over your head like so many tend to do these days.
There’s no point in finding the best credit card deal for you if you’re only going to rack up a bunch of debt. If you choose a good deal, and you use the card only when you have to, you’ll be able to responsibly manage your cards; which is advice everyone should heed if they ever hope to remain debt free.

Tip #1: Decide on Rewards vs. Cash Back

My personal favorite type of credit card is the cash back credit card. If you were to break down the benefit structures of most credit cards then they would likely fall into either the cash back category or the rewards category. The rewards category encompasses airline points, retail shopping rewards, etc. while the beauty of cash back credit cards is that it is fairly easy to calculate how much the value of each purchase will earn you in cash back.

Top #2: Choose an Issuer

The major worldwide credit card issuers include Visa, MasterCard, American Express, and Discover. Visa and MasterCard are accepted pretty much everywhere that credit cards are accepted while American Express and Discover are not accepted at nearly as many places. If you find an American Express credit card or a Discover credit card that fits exactly what you are looking for in a credit card then just keep in mind that it would probably be smart to also carry a Visa or MasterCard backed credit card as well in the event that you need a backup card to make a purchase somewhere that only accepts Visa or MasterCard credit cards.

Tip #3: Compare Cards Online

Sure, it may be tempting to just fill out credit card applications left and right when you receive credit card promotions and marketing offers in your mailbox but there are likely many other credit card offers online that you will never receive a marketing letter from and who is to say that the cards that market the best are the cards with the best benefits?

This is a guest post from Joel, who is the founder of a car insurance comparison website and a website for comparing online insurance quotes.

The CARD Act in the US has cleaned up a lot of bad practices that credit card issuers used to practice. But that does not mean that consumers are off the hook. When you are applying for a credit card or already have one, you still have to be careful of the following things.

Balance Transfer Deals – In the good old days of easy credit, credit card issuers were falling all over themselves offering 0% balance transfer credit cards for 12 months and they waived their balance transfer fees. But when the carpet got pulled from underneath, they started charging balance transfer fees and reduced their introductory period.

But the good old times seems to be back. Credit Card issuers are offering balance transfer deals again for longer periods. But now, consumers have to be aware of how they are offering them. There are basically two types of offers. The first type will offer you for a set introductory period – for example, 0% for 12 months. Such deals are clear in the sense that if you get approved, you get the 0% rate for 12 months.

But there is another type of balance transfer deal. And that is issuers offering 0% balance transfer deals for up to a certain time period. Using this language, credit card issuers entice consumers with what appears to be an attracting teaser deal. But for those who do not have stellar credit, they are likely to get an introductory period that is less than what is advertised. They did not do anything wrong. It is just that consumers tend not to really read and question a deal when they see one and ask if there is any catch. The reason this can be frustrating for consumers is that whether they get a balance transfer deal for 6 months or 12 months, they still have to pay a fixed balance transfer fee. Hence, in most cases, a longer introductory period always works out better.

Gas Rewards Changes – There have been changes in the way gas credit cards offer their rewards as well. When oil prices skyrocketed in, gas rewards started changing. Rather than paying a flat percentage (like 3% rebates for gas purchases), some cards have instead started to pay rebates in the form of getting a couple of cents rebates per gallon of gasoline purchased! This was to protect themselves from escalating oil prices.

Meanwhile, many gas credit cards started reducing their payouts on gas rebates. While many offered 5% rebates in the past, many have now reduced them to about 3%.

These changes are something that folks who are thinking of getting gas rewards should consider.

Subprime Issuers Get Hit – The new CARD Act has reined in on the fees that sub prime credit card issuers are allowed to charge consumers. They are now limited to charging only 25% of the credit limits given. As a result, we have actually seen many sub prime issuers stop issuing cards altogether! This is probably a great thing for the public as a whole as many of these cards should have never been issued in the first place.

More Focus on People with Good Credit – As the sub prime market becomes less profitable due to higher defaults and the CARD Act, credit card issuers are increasingly coming up with new credit cards for people with excellent credit. Chase has revamped their reward cards with a new Chase Sapphire Card. American Express has introduced a new Premier Rewards Gold card that lets you earn triple points when you buy airline tickets. So while may folks who carry a balance may have their credit limits slashed, those who pay in full every month have more rewards cards to choose from!

To sum up – I think the CARD Act has changed many practices of credit card issuers. The economic environment has also changed the behavior of credit card issuers and the types of cards they offer. These are just some of the changes we have seen. There will be many more and perhaps I’ll highlight them in another post.

Lower Interest Rate

Interest rates on credit cards have been fluctuating some lately, which means that if you look around you could probably get a better deal than what you have now.

There are actually two ways you can get a low APR credit card deal. The first one would be to get a new card that offers a better rate. The second way is to call your credit card company and ask them for a better one – they will often do this.

Before you apply for a new credit card looking for a better rate, however, you want to make sure your credit report is correct. Get a copy of your credit report and look it over for errors. If there are any, get them corrected if possible. Having as high a credit score as possible will give you the best interest rates available.

0% Interest Rate on Balance Transfers

If you already have some credit card debt, then it only makes a lot of sense to transfer them to a credit card where you can get 0% interest for up to one year. This will enable you to reduce your debt faster. In a time when money is tight, why should you waste it on interest? Look for a credit card that offers balance transfers without any fees attached to it.

If you want to be able to save thousands of pounds over a couple of years – this is the way to do it. By not putting other debt on the credit card, you can have your debt paid off much quicker. Just remember to get a new credit card with balance transfer options before your new one expires.

Lots of Rebates

Credit cards come in many types but are usually directed toward a particular area. This could be a gasoline credit card, and airline credit card, and many more. These credit card offers will give rebates of up to 5% for purchases that are related to its focus, and lower percentages for other things.

This means that you could reduce some of your largest expenses each month by charging those purchases. This allows you to save money in more than one way.

No Interest If Bill Paid in Full Each Month

A great benefit of any credit card is that you do not pay any interest at all if you pay it in full when the bill is due. Care must be taken to pay the bill on time each month, though, or you could lose whatever interest rate you had – with any credit card.

For starters, go in for a card that offers maximum rewards and points. Some cards offer petrol miles. Others offer air miles whenever you use the card. If you do not travel a lot, you can go in for card that fetches points redeemable for goodies or great discounts in popular stores. You just have to use that particular credit card to get the points from your purchases. Once you reach a certain level, you can redeem the points for the type of reward you selected when you applied.

Secondly, your credit card can be a very useful financial tool. People can be afraid of relying too heavily on credit cards to manage their personal finances. However, you can put your money to better use by using your credit card wisely. Only use your credit card if you know you have enough money to cover you at the end of the month when it comes time to pay the bill.

If you feel that you incur a lot of unnecessary expenditure, you can make all your monthly purchase at once using your credit card. Do this irrespective of whether you have sufficient cash in hand or not. This will help you streamline expenses and you can repay your credit card in full once you get your monthly income. But make sure you apply for a low APR credit card like the one from MBNA.ie, this way if you cannot make the full payment at the end of the month, at least you are not paying a lot more in interest!

Thirdly, you should compare all the credit card offers from your provider before you decide which one is best for you.  This will help you save money that otherwise would have been wasted. These are small points but intelligent use of credit cards will help you get good gifts for your friends and relatives at affordable prices on special occasions and during the next holiday season.

Finally, if you are facing financial problems and if you are finding it difficult to keep your credit card balance under control, make sure you have a credit card with a low APR, if not find one and transfer you balance free of charge across. This will help you save money on interest and manage your expenses properly without any fear of defaulting on your card debt.

Americans love to carry credit cards or plastic money in their wallets. On average almost 14% of Americans carry 10 or more cards. Some may argue this is not sensible as having that many credit cards can be detrimental to your finances.

It is reported an average Joe blogs American carries around $4,000 of credit card debt equating to 1 trillion dollars for the entire country! This has been an upward trend over the past 10 years. Unfortunately, Americans still can’t live without their cards.

Credit card debt consolidation

The new way to get help is by credit card debt consolidation. When you have multiple cards with various interest rates and are facing difficulties to keep up with the monthly payments, you can easily combine all your balances into one manageable monthly payment with a reduced interest rate. The idea seems right for you when you’re desperately seeking a way out to manage your high-interest credit card balances. Now what are the ways of credit card debt consolidation?

Ways of credit card debt consolidation

Given below are the ways in which you can consolidate your cards:

1) Using a balance transfer card or teaser card

The teaser card or balance transfer card comes with an introductory rate which is well below the existing rates of all your cards. You don’t need to pay any annual fee for this card. You can transfer all the balances of your other cards to this card and pay them off with ease. However, you might be asked to pay a transaction fee for transferring your balances.

2) Home equity loan

If you have built up considerable equity in your home, you can use it to borrow a home equity loan and pay off all your cards with the loan proceeds. The interest rates for these loans are fixed and affordable. Moreover, the interest is tax-deductible and the loan allows you to borrow a big amount that is sufficient to clear all your outstanding balances. However, the shortcoming of this type of a loan is that you can lose your home if there is a payment default.

3) Personal loan

You can take out a personal loan from a bank or credit union at an affordable rate and pay off your cards. However, this is also a loan that you need to pay off afterwards.

The new credit card rules came into existence on August 20, 2009. These legislations have modified the manner in which credit card issuers can make gains from people by lowering the interest rate hikes and late fees. This is something really encouraging but you should remember that if you want to be debt free, you must try to stop using your cards and cut down on your spending.

1. 1.Call Your Credit Card Company - While this may seem like common sense, many consumers fail to take this important step. Ask for a customer service representative or department manager and let them know that you are currently shopping for lower credit card offers. Ask what their current, best interest rate offer for you is. Once they provide you with a number, let them know that you will be back in touch with them. You will often be surprised at how much lower your current credit card company will go with your interest rate just with a simple phone call.
2. 2. Shop Interest Rates - Now that you know what your current credit card companies are willing to offer you in terms of interest rates, begin to shop around with other companies to see what they will offer. Search for 0% introductory interest rate offers, begin to collect any promotional credit card offers in the mail and even speak with your current banking professional to see what kind of credit card interest rate offer they may be able to offer you. Compare the interest rate offers that you have collected to determine whether or not they are lower than what your current credit card companies are willing to offer you. But, before you make a switch, also consider a consolidation loan.
3. 3. Consider a Consolidation Loan - The next step in the process is to review your options for a consolidation loan. These loans are often offered through your current financial institution. Set aside some time to speak with your current bank officer and communicate your desire to consolidate your current credit cards into a single loan at a lower interest rate, in order to pay off the consumer debt off quicker.
4. 4. Compare and Contrast - Now that you have collected information about all of your available options, you can compare and contrast the interest rates and the offers. In addition to the interest rates, you also want to take time to review how long the promotional or lower interest rates are offered. Also review whether new purchases will qualify for the reduced interest rates or whether they only apply to balance transfers. With all of this information, you can make the best financial decision regarding your current credit card interest rates.

Working through these steps will not only help you to lower your current credit card interest rates, but will also lower your monthly minimum payment amounts and the total amount of time it takes you to repay your consumer debts.

Bank of America is the third-largest credit card company in the US.

Why annual fees?

The goal of the proposed annual fee charges is to reduce risk and increase profitability. Therefore customers who pay promptly and hence never attracted default interest charges would be those who will be taken in the pilot.

The annual fee charge was also adopted to show BofA commitment not to raise interest rates on credit cards before the coming into force of the new credit-card laws in February 2010.

The pledge was made in response to US Congress resolution to shift  the implementation date of the law to December 2009 when some credit card companies began raising interest rates and reducing credit amounts and access in the middle of this year after the credit card law was passed.  

It had been envisaged that banks would be tempted to charge annual fees in response to market forces and the new credit card law on basis avoiding cost and risk.

Consumer rights violated?

Card users have up to December 16 to accept or reject the annual fees. However, they risk having their accounts closed if they refuse the fees.

Closing a credit card account comes with it serious consequences to a card user. The most crucial being the loss of personal credit score, hence a lower the amount of credit available to a person.

The BofA has already started the annual fees on its airline rewards cards.

Consumer protection

A balanced consumer protection is crucially needed to ensure that it is a win-win solution for both consumers and credit card companies like BofA.