You Should Know Your Thieving Credit Card Companies

For a number of credit card consumers, lending options are widely available. However for individuals with bad credit, the options are few and far between. With this in mind, lenders may take advantage of individuals who have problems repaying debt. These organizations typically target people with tarnished credit, elderly, or low-income individuals. Predatory lending for credit cards companies are becoming rampant thanks to the ease of targeting certain demographics and markets.

Predatory lending is a practice that provides unreasonable rates and fees for bad credit consumers. They offer high interest rates and, often, high fees for each credit that they sell to the borrower. By doing so, the repayment amount becomes too steep - or fees become unusually high for the average cardholder.

For people with tarnished credit scores, careful consideration should be taken for “bargain loans.” Bargain loans are programs that promise that an individual’s tarnished credit isn’t a problem. The offers are often labeled as a “limited time” offer and consumers are enticed to quickly apply. In many instances, the lenders offer instant approval or even guaranteed approval for their card application.

Interestingly, it’s illegal for lenders to require payment of fees before a loan is actualized. If this happens, the borrower should immediately report this to the proper agencies. There are plenty of scam operations that charge a huge fee and then not offer the loan to the applicant.

Before applying for such a loan, the applicant should check to see the terms of the credit card before signing the dotting line. One should verify that the terms of agreement is the same as what was discussed with a sale representative.

Individuals with bad credit should try to determine if the lender is a trustworthy company. One can simply ask for references from the lender, or contact the Better Business Bureau for any complaints. Sometimes information about the lender can be found by a simple search in a search engine like Google. News or complaints by customers on popular websites such as ripoff.com can raise red flags. There are even forums for credit cards that have opinions and complaints from cardholders.

Card applicants should shop around as well. The consumer should look at the rates and fees for each credit card and assess which one is right. Sometimes customer service is an important factor. Ask for the customer service hours and service quality.

Credit cards can also come in the form of a secured card. In other words, you would need to provide collateral such as cash to get the credit card. For example, a $300 credit card limit will require you to upfront $300. However, if the credit card company requires that the collateral amount should be over the card limit, then it may be best to walk away from the program.

Predatory lenders also take advantage of the grace period. In fact, the lending company could issue the bill with a payment due date of the mail issue date. This means that by the time the recipient receives the bill, the bill will be already past due. The lender now has means to raise the rates and fees.

Consumers need to be aware of Credit Card companies that are involved in predatory practices, especially consumers with bad credit. As more of these practices become apparent, consumers now have the means to arm themselves from such lenders.
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How Credit Cards Lowering Your Interest Rates

Is your credit card interest too high? Do you carry large balances on your credit cards? Do you want to apply for a new credit card? Many people struggle with these issues everyday. However, there may be a light at the end of the tunnel. Interest rates can be lowered, or eliminated, and a higher percentage of each monthly payment can go to the principal amount on your credit card. This can be accomplished by adhering to the following process.

First, gather all of your credit card bills together. List them in order of the highest percentage rate to the lowest percentage rate you are paying. Once you have this list compiled, you can see how much money is wasted on interest every month. You might now be asking, “What can I do about this?” You are now going to call the customer service number from the card that was first on your list (the highest percentage rate you are paying). Ask to be connected to a customer account representative. When connected, ask the representative if your interest rate could be lowered. Tell the representative how long you have been a customer, you always pay your bills on time, and you never are late with your payments. (If you have been late or missed a payment in the past, your bargaining power is reduced somewhat, but still ask for the interest rate reduction anyway – The answer is always “No” unless you ask.) The representative will most likely put you on hold and come back in a few minutes with an answer. If that answer is “Yes,” then congratulations! You have just saved money. If the answer is “No,” thank the representative for their time and end the telephone call.

After you have called all of your credit cards and had your interest rates lowered, we now want to call them back and ask for a balance transfer. (This is assuming you have more than one credit card. You should wait at least two weeks from the time you made your first call.) A balance transfer will transfer the balance from one credit card to another. The advantage of this is that a balance transfer normally receives a lower interest rate. You may be able to get as low as 2.9%. When you speak to the account representative, ask if you qualify for a balance transfer, what the interest rate would be and the length of time the balance transfer rate will last. It is also important to ask what the balance transfer fee will be.

It can be as much as $75 if you don’t ask for it to be waived. Negotiate with the representative to lower or eliminate the transfer fee. (It still might be worth transferring your balance if you have to pay the fee.) If you qualify, you can transfer the balance from your higher interest card over the phone. If you don’t want to transfer the balance over the phone, ask the representative for balance transfer checks to be sent to you in the mail. You may then use the balance transfer checks to transfer the balance to the lower interest rate card.

The last phase of lowering your credit card interest rates might be to apply for new credit cards. We all get numerous credit card applications in the mail everyday. Don’t just blindly throw these away. Many new cards offer 0% interest on balance transfers. What this means is that you will be paying zero interest. Each payment you make will go directly to pay off the principal amount on your card. You should be aware of the following before you apply for a new card. Do not apply for a card with an annual fee. The credit card company makes too much money as it is and they don’t need an extra annual fee payment from you. As mentioned earlier, try to avoid paying balance transfer fees. Sometimes this is unavoidable, but if you negotiate, you may eliminate the fee altogether.

Credit card debt can be a huge burden. You can, however lighten your debt and pay less interest (or none at all) if you follow the steps in this article. Good luck on your interest-lowering journey.
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Let's See What Secrets Credit Card Companies Hides

Nowadays, almost everyone can get a credit card. Most people get offerings in the mail to apply for them all of the time! Many of these credit cards have very low introductory rates, but then shoot up later, often without you even realizing it! After all, who is going to read all of the fine print on the back of the application? Not many people! In a way, it almost seems deceiving.

The most favorable credit card rates can be found in mid-size regional banks. If a person has a decent credit card history, he or she can apply for a "better rate" card - even if the bank is out of state. They won't come to you though; you have to go to them to apply.

Start by looking at the mid-size banks in your area. If their rates are all too high, you can explore other banks in other low interest states. To find these states you can go to your bank and check out the "American Financial Services Association's Annual Summary of State Consumer Credit Laws and Rates". Or you can go online to explore. One thing to keep in mind when doing your research for low interest states; don't assume that every bank in these states will give you a low credit card rate. Sometimes banks will move their credit card operations to higher rate states that have less restrictive interest regulations. Make sure you find out the credit card rates after you've located a lower rate bank!
Another "secret" that the credit card people don't want you to know is that many of the high-fee, high interest banks try to entice and sign up potential credit card holders by offering special credit card enhancements. These extra services can be almost anything; ranging from insurance and catalog shopping discounts to travel services and rental car discounts. They will also offer "deals" on anything that you can think of, from new cars to pest control!

The reality of these offerings is that you can find just as good or better prices in the city where you live. People living in rural areas might like the idea. But these folks generally can drive to the nearest large city, or shop online for the same savings. These credit card enhancements are usually not worthwhile, and you're still paying those high interest rates!

Remember when using your credit card, that the costliest cash is when you use your card for a cash advance. You will get no "float" or grace period (during which your cash advance or loan is effectively interest-free), and an extra fee will be tacked on to your usual interest charge! If you really need the money it would be cheaper in the long run to take out a collateralized bank loan, even if it will probably be more trouble to arrange.

Use these tips to look around for a lower interest rate credit card from a low interest bank. Don't just sign up for any credit card, especially from the offers you receive in the mail, without first learning what the interest rates will be. If you are careful, and shop around, you should be able to secure a credit card with a rate that you can live with.
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