Categories
Business Money & Finance

Credit Card Charges & Fees: The Complete Beginner’s Guide to Identifying “The Devil”

Have You Heard About These 9 Credit Card Charges And Fees?

In our society, credit card users can be considered financially up and coming. Used in the proper way credit cards can be a great tool to create wealth, establish a financial reputation, and live the lifestyle that most people want, one of leisure and luxury. Credit cards can boost your finances with rewards and give you the convenience of not having to carry cash with you when you travel and eat out. If your credit card is missing, a simple call will put a freeze on it, and you won’t even be responsible for fraudulent charges made without your consent. Most credit cards are unsecured, and 1 out of 2  Americans will pay their total balance monthly avoiding interest charges.

However, credit cards have an adverse effect on your credit score if you max them out and if you are careless and skip payments, or pay the minimum due. They can also be a source of unplanned for and hidden charges, penalties, and high-interest rates that will have users paying a steep price for every dollar in credit. For some users, it will take several years to pay off balances and be debt free.

Don’t pay more than you have to, beware of hidden credit card charges that can be avoided beforehand if you know about them. Being a smart credit card user means that those pesky penalties and additional charges are not compounded with your balance and interest rate. However, the big question mark is how do you identify some of these credit card charges, and what are the steps to take in avoiding them.

Have you heard about these nine not so uncommon credit card charges and fees under-listed below? And, what do you know about each of them?

9 Credit Card Charges And Fees You Should Be Familiar With

Have you heard about these 4 credit card charges
Have you heard about the nine most common credit card charges and fees that has disrupted the financial world lately? We believe this article would guide you on how to identify these credit card charges and avoid them for a frugal and prosperous you!

1. Annual Maintenance Fee

Just like video streaming services, credit card issuers have a joining fee that you pay as an annual fee. Make sure you know whether there is an annual maintenance fee associated with your card before you sign up. Ask the credit card issuer to remove this fee, or to give you an exemption for a year. Many will do so just for the asking. It doesn’t hurt to try. Credit cards with great rewards and point systems tend to have annual fees.

Research cards that are free to join. Shopping around for the right credit card for you may take a while but is worth the wait when you don’t have to pay extra fees.

2. Interest And Finance Charges

Did you know that most credit cards waive the first 50 days of interest? While this is a great benefit to take advantage of if your credit card issuer offers it, some premium cards will enforce finance charges regardless of where or when the card is used. Once the interest-free period is over, an interest and finance charge will be made to the customer unless full payment is made on time.

3. Cash Withdrawal Charges

Cash advances from ATMs are allowed by most credit card issuers. However, getting cash withdrawals from credit cards should be reserved only for emergency situations. The interest-free period that credit cards offer for all other transactions does not apply to cash withdrawals. Avoid the hefty interest rate and repay the cash withdrawal as soon as possible.

4. Over The Limit Charges

When users exceed their credit limits and cash withdrawal limits, a percentage of the excess spend is charged as a penalty. Expect to pay an additional char for exceeding your limits. Avoid having to pay an exorbitant penalty charge for exceeding your credit and cash limits by tracking your purchases, balances, and due dates.

5. Late Payment Charges

Late payment charges are not a right way of managing your credit card. Late payments affect your credit score and the fees, well, they compound your interest. Some banks charge over and beyond the standard late fee most banks charge. Ask your credit card issuer about late fee and make sure to avoid them. If you don’t have the funds to pay the total balance on your card, pay at least the minimum due.

6. Foreign Transaction Charges

If you travel abroad or know friends and relatives that do, be prepared to pay a foreign markup fee. Whether you are at a point of sale or online, international transactions are subject to a fee by most credit cards. Even cash withdrawal fees are higher abroad. Expect charges anywhere between 1.5 and 5 percent depending on the bank when you’re making a foreign transaction. When traveling abroad, a travel card can keep you from having extra charges on your credit card bill.

7. Balance Transfer Charges

When you consolidate credit cards and pay off the balance in one by making a balance transfer to another credit card you might be charged for doing so. The amount of the charge is usually a percent of the balance that was transferred.  Many reputable cards allow this free of charge, but high-interest cards with high balances typically charge a fee.

Note This:

“They’re in business for the charges.”

If you pay off the balances on your cards, you can avoid this expensive way of moving debt from one account to another altogether.

8. Card Replacement Charges

If traveling or during their daily routine, some people lose or misplace their cards only to be stolen and used fraudulently. Report your card stolen or missing as soon as you notice whether you find it right away or not. The card issuer will freeze the card and avoid responsibility for any fraudulent activity. You may not know that some credit cards will charge a fee for replacing old or stolen cards.

9. Interest Costs

If you have a balance on your credit card and fail to pay it in full by the due date, an interest rate charge will ensue. This monthly interest rate is annualized at an annual percentage rate or AP which can be as high as 36-38 percent. For further information, please make sure to check out any credit card relief programs.

Do you have any question or addition to this post? Please share them below.

Categories
Money & Finance

4 Simple Ways to Build Your Budget & Get Out of Debt Legitimately

It feels good to get that first credit card. You can finally get anything you want. However, it’s too easy to use cards like cash and before we know it, the limit is reached. Then comes the offer to roll that balance into another card with a larger limit. This frees up the first one, plus you now have room on the second one. But then, before you know it…

If this sounds all too familiar, don’t worry; it can be reversed. Here are some simple ways to build your budget and get out of debt.

Wanna Stay Out Of Debt? Here’s How to Build Your Budget To Do ‘Just’ That

How to stay out of credit card debt
Do you intend to be financially free this year by owing nobody? If that’s your dream, you have to do yourself a favor! You need to master the art of using your credit card appropriately in order to build your budget accordingly.

Start with a List

It’s easier to create a plan when everything is in front of you. Make a list of all of your debts, specifically noting the monthly payments and the outstanding balances.

Lower Your Interest Rates

If your credit score is good, you might be able to get a consolidation loan. This has the advantage of rolling everything into one payment at a lower interest rate. If this won’t work, get in touch with your card issuers and ask for a rate reduction. This will make the money you have go farther toward clearing your debt.

Assess Your Situation

Once you’ve listed of all your debts and gotten your interest rates reduced as much as possible, total up the monthly amount you’ll need to pay everything off in three years. Add to this figure your rent, utilities, phone, internet and all other recurring expenses. If the total is less than your monthly income, you’re in good shape.

If it’s more than you make, you’re going to need to figure out how to earn additional money. If this isn’t feasible, you’ll need to work with a credit-counseling agency, debt relief program, or declare bankruptcy. Each of these has advantages and disadvantages. Ultimately though, your choice here will depend upon your specific situation.

If you owe less than you make, you can use the snowball method of debt elimination. List all of your debts in order from highest to lowest. Calculate the minimum payment on all of them. If you’ve been paying more than the minimum amount on each one, stop doing so on all but the one with the lowest balance. Make minimum payments on all of the others and add the difference to the payment you were previously making on the one with the lowest balance. Continue until it is paid off and apply the strategy to the next smallest one. Keep working your way up until you’ve paid them all.

Once you’ve cleared up the debts, save the money you were using to pay them off, rather than going out and buying more stuff. Create a buffer fund, so if an emergency arises you can deal with it in cash rather than going into debt.

Wanna Stay Out Of Debt Right? Here's How to Build Your Budget To Do Just That
Do you want to stay out of debt? We have some helpful finance tip and techniques for you. Here is how to build your budget to avail you the opportunity of staying off negative financial record books legitimately.

Enact a Spending Freeze

While you’re paying off the cards, or working through the credit counseling or settlement plan, limit purchases only to the necessities; rent, food, fuel, utilities, and etc. No new clothes, no dinners out, no new toys nor treats whatsoever. Let the dwindling balances be your reward. And, whatever you do, don’t use the cards again as you pay them off—you’ll only dig a new hole for yourself.

These simple ways to build your budget and get out of debt will help you get your financial situation back on the straight and narrow. If you find debt settlement is the way to go, do your research to help you decide which company to use.

Yes, it isn’t simple and it does take some time to do. But with diligence and careful planning you can get your finances back on track within three years. Though, it may cost you some sleepless night filled with calculations, or you may have to fork out some cash to get professional help. But at the end of the day, if you decide to build your budget, it would all be worth the sacrifice than not to.

Categories
Business

8 Amazing Credit Card Processors for Your Business Success

We all need to try to keep up the pace with these modern advancements if we want to be successful at what we do. One of those things we need to include in the improvement we seek is enabling our customers to purchase our goods or services via the internet, and to do just that, there is a need for payment processors and credit/debit card processors. It is hard to determine which one is the best because there are so many of them. Also, if you’re considered to be a high-risk merchant, then it’s even harder. Here are some examples of credit card processors which you should have in mind when you’re looking for the right solution.

Choosing the right credit card processors out of countless numbers out there

Best Credit Card Processors for Your Business
Best Credit Card Processors: It is hard to determine which one is the best credit card processors, but you should have these in mind if you’re looking for right solution.

Best High-Volume Credit Card Processor: Flagship Merchant Services

The Flagship Merchant Services is the best possible solution for those who own small businesses. There is a certain problem when it comes to leading a small business because many of that credit card processor forces you to get the rates they think are the best, and those in most cases are not something you want or need. Flagship Merchant Services offer you the opportunity to choose the rate which you think suits you the best, and by doing so, they’re the ones you should trust and choose. The focus here is on the “high-volume” part because they offer the best rates for those kinds of small businesses.

Best Credit Card Processor for Small Business: Payline Data

This is yet another credit card processor for small businesses that can quickly boost up the level of your income. It is ideal for small businesses because the lower rates are also available to smaller business just as same as to larger corporations and companies. Another great thing about this credit card processor is that every single piece of information about the rates is available on their website, unlike many of other processors.

Best Low-Volume Credit Card Processor: PayPal

If you have any doubt about any of credit card processors, you can always seek out those who are the most famous ones, such as PayPal for instance. One of the reasons why this processor is an excellent choice especially for small businesses is that it’s too easy to set up an account and start using their services right away. Plug-and-play service is imperative here, and that’s the best choice for you if you’re new in this field of work.

ALSO READ: 10 Best PayPal Alternatives You That’s Worth Checking Out

Best Online Credit Card Processing: Stripe

Stripe is one of the top credit card processors, and you should consider using their services if you want to improve your business. The phrase that will completely describe why this processor is the best for business is “ease of use”. Minimalistic design and simple use will allow your customers to purchase anything they want from you with much ease. All they need to do is just select what they want and click on buy button after which they only need to enter their credit card number, and that’s it. It’s as simple as that. If you’re on the list of high-risk merchants, you will have to search for high-risk credit card processing services.

Best Mobile Credit Card Processor: Square

Since there is a demand for enabling your customers to conduct payment via their smartphones or tablets, you will need the help of Square – credit card processor. You won’t have to set up a merchant account, as it is required by other processors. Also, the pricing is the same for everything, and you can find every single piece of information about it on the internet. The square account is automatically linked to your bank account, and that makes everything easier regarding deposits.

Best Credit Card Processor for Medical Practices: TSYS Merchant Solutions

If you’re one of those businesses which focus is on medicine, then you will need the services of TSYS Merchant Solutions. The rate of 1.7 percent plus 20 cents per transaction is one of the best you can get in this field of work. You will be able to accept credit cards, and this will significantly increase your profit. This credit card processor also includes free credit card reader. As a medical practitioner, you can hardly get any other reasonable credit card processor that’d fit in into your business category than TSYS merchant solutions.

Best payment gateway provider: Authorize.net

One of greatest ways for you to expand your business is to engage with Authorize.net. The reason for you to do so is that you will be able to offer everything you got via the internet, and allow your customers to pay for everything on the spot. Just one click and they’ve purchased something from you. This is all-inclusive sort of thing, and the security of your business, as well as your customers, is something you don’t have to be worried about.

Best Credit Card Processor: Fattmerchant

This is one of those subscription-based credit card processing companies, which are quite handy if you’re new to this system. Fattmerchant is using National Processing Company as its primary processor, and this shouldn’t concern you because Fattmerchant has taken care of this for you. Again, as for the other credit card processors mentioned earlier, the part which is more appealing is the rates which are quite affordable. The service you get in return is also admirable.

To Conclude

These are just some suggestions, and all of those are the best of the best. You should conduct research on your own because these things aren’t something that should be taken lightly. The less informed you are, the worse situation you’re in.