CreditCardReview.ca Launches a FAQ Video to Help Customers Master the ABCs of Credit Cards

A new credit card FAQ video by CreditCardReview.ca helps customers to choose a card and keep track of their credit expenditure.

 (PRWEB) January 28, 2014
A new credit card FAQ video (http://www.creditcardreview.ca/) was released today to help visitors to choose the right credit card and rack up rewards.

The video was created by the content and video development team at CreditCardReview.ca to offer answers to some frequently asked questions and help customers to pick a card that best suits their shopping and travel needs. Being a valuable addition to CreditCardReview.ca, which presents in-depth reviews of popular credit cards, the new video offers a lot of information in an engaging way, saving users valuable time and helping them become information-rich and educated customers. The ultimate goal is to make credit card decision making easier.

“The goal of CreditCardReview.ca has always been empowering Canadian consumers, by giving them the right tools and information so that they can choose a credit card that meets their needs. Our new credit card FAQ video will hopefully save many hours of research and substantially improve the credit card shopping experience of our users,” said John Williams, marketing consultant at CreditCardReview.ca.

Customers are involved in different financial transactions on a daily basis and even the choice of a credit card requires an educated decision. The new FAQ video presents different types of credit cards that feature perks such as cashback, bonus points and rewards programs, car and travel insurance, and many others.

Today, consumers are faced with important but complex decisions, from managing credit card debt to buying a home and saving for retirement. Credit card literacy affects financial behaviour and helps customers to make good decisions. The problem is that many people use credit cards to fund a lifestyle that is beyond their means and pile excessive debt. It is difficult to balance a large debt load without the skills and knowledge necessary to make educated decisions. Credit cards offer many beneficial features and make shopping easier if used responsibly and within boundaries. Yet, many accounts go into arrears each year, showing that consumers lack basic credit card skills. The new FAQ video is designed to simplify decision making, help customers to pick a credit card that suits their needs, and avoid the debt trap. Given that the financial markets offer a wide array of financial services and products, it is important to gain basic knowledge of finance and credit cards.

About CreditCardReview.ca: CreditCardReview.ca is a Canadian credit card directory offering information on the major banks and credit cards in Canada, along with many useful credit card related articles and guides.

New Calculator From CanadaBanks.net Helps Consumers to Avoid a Post-Holiday Debt Hangover

CanadaBanks.net presents a credit card payment calculator that helps Canadians to make good financial decisions and spend Christmas in a merry fashion.

Toronto, Ontario (PRWEB) December 19, 2012

Art Branch, Inc., the parent company of CanadaBanks.net today announces the re-launch of a credit card payment calculator (http://www.canadabanks.net/Credit-Card-Payment-Calculator.aspx), targeted at Canadian cardholders who are interested in budgeting and controlling credit card debt.

Created by the content development team at Art Branch Inc., the calculator was tested internally and by a group of external users. The idea behind the new calculator is to show Canadians how long it takes to repay credit card debt. This is a relevant issue given that people are constantly bombarded with attractive offers, encouraging them to switch from checks and cash to credit cards with perks and sign-up bonuses. The new calculator helps borrowers to understand the real cost of borrowing on a credit card so that they can decide whether to turn to other, less expensive financial products.

“With Christmas around the corner, Canadians might be tempted to borrow on their credit cards to pay their holiday expenses. People should be aware of the ultimate high costs of credit card borrowing,” said John Williams, marketing consultant at Art Branch, Inc.

The new calculator is a free financial tool that uses the borrower’s monthly payment, amount of credit card debt, and annual percentage rate to determine how long it will take to repay debt. According to Statistics Canada, big Canadian banks such as BMO, TD Bank, and CIBC have recently reported hefty profits while consumer mortgage and credit card debt has increased.

The holidays are just around the corner, and Canadians are spending a fortune on gifts, entertainment, and food. Holiday spending soars, and many people will be left with a post-holiday debt hangover. Shoppers have a lengthy list of gifts to buy and are charging purchases to their credit cards. In times of job insecurity, layoffs, and stagnant wages, some 600,000 households in Canada have a very high level of debt. Household debt has increased by 71 percent while income is up by 12 percent. Christmas is about spending time with family and loved ones and sharing the joyous spirit of the season. With debt piling up, many Canadians are already stressed and emotionally exhausted. The goal of the new financial calculator is to help consumers to make better financial decisions and spend within their means.

About CanadaBanks.net: CanadaBanks.net is an informational resource created by Art Branch, Inc., focused on the Canadian banking industry.

About Art Branch: Art Branch, Inc., located in Toronto, Ontario, is the parent company of CanadaBanks.net and has produced many consumer oriented websites targeting Canadian and international audience. The goal of Art Branch is to provide visitors to company sites with free, practical guides, helping consumers to make educated choices.

CreditCardReview.ca New Infographic Addresses the Prevalence of Credit Card Fraud

The Canadian banking industry suffers huge losses due to fraudulent activities in the underground marketplace.

Art Branch, Inc., the parent company of CreditCardReview.ca announced today the publication of a new infographic (http://www.creditcardreview.ca/credit_card_fraud_canada_infographic.php), targeted at credit card holders in Canada.

Developed by the web design and content development teams at Art Branch, Inc., the infographic uses data by the Canadian Bankers Association. It is a valuable addition to CreditCardReview.ca, which helps Canadians to make wise credit card choices.

“Credit card fraud is a serious problem, which affects many Canadians. Not many people know this, but the Canadian banking industry loses hundreds of millions of dollars to credit card fraud each year.” said Peter Todorov, President of Art Branch, Inc.

The infographic gives a snapshot of credit card fraud in Canada, along with total annual losses and average loss per account. It provides data on the yearly losses of the banking industry due to cross border and domestic fraudulent transactions, account takeovers, fraudulent applications, and other fraud. In addition to highlighting the most common forms of fraud, the infographic helps Canadians to get an idea of the costs associated with credit card fraud. Many people are not aware of these crimes, the prevalence and forms of fraud encountered, and the financial impact of fraud on Canadians and the banking industry.

The targets of fraudsters are processors, merchants, hotels and restaurants, and individual cardholders. Criminals and crime groups are organized, operate across borders, and use sophisticated software and tools. What is more, criminal organizations are quick to respond to fraud prevention measures and initiatives. They use a variety of methods for data theft such as malware attacks, ATM skimming, virtual criminal markets, SMSishing and whaling, and many others. Credit card fraud and cybercrime have gained momentum and should be given serious consideration. Being aware of the prevalence and forms of credit card fraud is important as it helps Canadians to avoid becoming a victim of fraudulent transactions.

About CreditCardReview.ca: CreditCardReview.ca is a Canadian credit card directory offering information on the major banks and credit cards in Canada, along with many useful credit card related articles and guides.

How to chose a credit card

The choice of a credit card depends on the borrower’s requirements, credit history, income level, and other factors. Credit card companies, banks, and other financial institutions offer different types of credit cards, including student credit cards, rewards credit cards, airmiles credit cards, cashback credit cards, and other types. The applicant’s credit score is an important factor which credit card companies take into account. Persons with a limited credit history or poor credit score may want to apply for a prepaid card or a secured credit card. Those with a high or very good credit score and high income may apply for rewards credit cards, cashback credit cards, and other specialty cards, offered with many beneficial features. Among these are hotel points for upgrades and complimentary nights, shopping discounts, concierge service, and many others. Cardholders enjoy other benefits as well, including emergency cash disbursement, stolen or lost card reporting, cardholder inquiry service, etc.

Students are offered student credit cards, and these are usually available to full-time students. Student credit cards go with lower interest rates than other cards. Persons who want to save on interest charges may want to look into low interest credit cards as well.

Obviously, credit cards are not the best solution in each case. For example, persons who plan to make big-ticket purchases may apply for a personal loan. Those who seek funds to purchase a vehicle usually apply for auto loans. Persons with excessive debt, on the other hand, may have limited access to standard loans, and they resort to bad credit loans and payday loans. Those who have multiple, high-interest debts and find it difficult to keep up with repayments often apply for consolidation loans. Generally, credit cards are a good choice for borrowers who charge everyday purchases, seek to meet their short-term cash needs, and pay the balance on time. Credit cards are not intended to be used as a long-term borrowing solution.

Tips to Consolidate Debts

Borrowers who are looking into debt consolidation usually have high-interest debts and pay a lot of money in interest charges. Consolidating multiple debts helps borrowers avoid interest rate hikes and late payments, making payments more reasonable.

The first step to consolidating multiple debts is to list all loans on paper. Include cashback credit cards, rewards credit cards, standard credit cards, car loans, mortgages, and other personal debts. Then write down the monthly payment amount, interest rate, and outstanding balance for each debt. This will help you decide which debts to consolidate.

There are two ways to go about consolidation – one is to refinance your mortgage, and the other is to take out a second mortgage. If you choose the first option, make sure you find a reputable company that offers debt consolidation loans with reasonable interest rates. Refinancing your mortgage is a second option, but you have to consider how much home equity will be left.

If you have multiple high-interest department store and other credit cards, you can transfer the balances to a low-interest card. You may apply for a credit card with a low introductory interest rate and make a balance transfer.

Before you try to consolidate, however, it is important to check your credit score. If your credit score is poor, you may not qualify for a debt consolidation loan with a reasonable interest rate. Be honest and think of whether you will be able to repay the new loan. The majority of borrowers who opt for a home equity loan or another type of debt instrument end up with a higher or the same debt load within 2 years.

What types of debt to include in a debt consolidation loan? This depends on interest rates, but you can include credit cards, unsecured auto loans, and other types of unsecured debt. In most cases, you will be offered a secured loan meaning that the loan will be secured against some valuable asset.

Using Secured Credit Cards To Build Credit Pros And Cons

If you have poor or no credit, having a secured credit card will help you establish or improve your credit score. You can get secured credit cards in Toronto from most Canadian banks or other credit card providers. If you are a union member, you may want to check with your institution as well. Secured credit cards are not offered by all institutions and in fact, most credit card issuers prefer the unsecured variety. The latter are offered with higher fees and interest rates. You should not give up though, and an unsecured credit card is not always an option. Young persons who are just starting out or those who are rebuilding their credit score after some major event (serious illness, job loss, or divorce), may find this card a good option.

When it comes to Toronto secured credit card application, which one is a better deal? You can choose from various types, including secured MasterCard and secured Visa. You can check the offer of Toronto Dominion, for example - the secured TD Canada Trust Credit Card is a type of card secured by money you deposit into the card account. The amount deposited becomes your credit limit. The funds deposited into the account may be held by the bank up to three years, depending on the card of choice. Apart from establishing credit history, this card allows holders to take care of emergency purchases, car rentals, and hotel reservations.

The Capital One Guaranteed Secured MasterCard is another secured credit card you can check. It is offered with zero fraud liability, 19.8 percent interest rate, and annual fee of $59. This card is a good option for persons who seek to establish credit and are able to cover at least the minimum balance. The card is featured with a number of perks, including MasterRoad Assist Service, MasterCard Global Service, and 24/7 assistance. With the MasterCard Global Service, clients are entitled to emergency card replacement, emergency cash advances, 24/7 telephone access, and more.

The Bank of Montreal also offers to its Vancouver clients secured cards. You can check the Prepaid Travel MasterCard, going with a $9.95 purchase fee, zero dollar liability, purchase protection, worldwide acceptance, and extended warranty. The IDefense service offers identity theft assistance while safe internet shopping is possible thanks to the MasterCard SecureCode. A major benefit is that cardholders do not pay interest.They can load the credit card as a bill payment, using a bank account in a number of financial institutions. It is easy to load and reload this credit card. It is up to you how much to load provided that the card is prepaid and re-loadable. The Prepaid Travel MasterCard is a convenient and secure alternative to other products such as traveler's cheques.

If you apply for this card, you should present your personal information, employer's name, employment status, occupation, and other information.

Get that Vancouver secured credit card now, find what you are looking for here.

Consumer Credit Guide

Consumer debt or consumer credit includes store cards, credit cards, personal loans, car loans, lines of credit, retail loans, and mortgages. The scope of different credit types is large, even if thinking globally rather than limiting it to the Canadian market. We will proceed to give an overview of the best credit card offers on the Canadian market and explain what types of unsecured personal loan you can choose from.

With credit cards, you can choose from a variety of options, including low interest credit cards, balance transfer credit cards, rewards and Personal back credit cards, as well as auto/ gas and business credit cards. Which one you choose will depend on your individual needs. The Aspire Gold MasterCard is one option. The benefits are many - you earn reward miles (one mile for every dollar charged to the card), 1,000 anniversary bonus points a year, 5,000 bonus points with the first purchase you make, and no annual fee. You can redeem your bonus points for Personal, travel, gift cards, merchandize, and many other items. A major drawback is the interest rate on balance transfers and purchases, which is 19.80 percent. The Platinum Plus MasterCard credit card goes with a lower interest rate of 17.99 percent, which is zero percent during the first ten months. Again, there is no annual fee, if you choose this card.

Another option is the Smart Personal MasterCard credit card, which is also featured with no annual fee, but the interest rate is set at almost 20 percent. Cardholders earn up to 5 percent Personal back if purchasing gas and groceries during the first 6 months and up to 3 percent on buying gas and groceries thereafter. Holders also receive up to 1 percent for other purchases charged to the card. The Smart Personal MasterCard credit card goes with an interest rate of 1.99 percent on Personal advances and balance transfers.

Another type of consumer credit is unsecured personal loan. When it comes to personal loans, you can choose between fixed or variable interest rates and fixed monthly payments. If you have trouble deciding, a fixed rate loan is one that sets your interest rate for the term of the personal loan. This can be beneficial because you are shielded against increases in rates. With variable rate loans, borrowers benefit when the interest rate is low. While the monthly payments remain the same, more of your payment goes toward the principal amount if the interest rates go down, and you can pay back the loan faster. On the other hand, if the interest rates go up, you can switch to a fixed rate loan and pay it over the remainder of your term. If you have poor credit, you can also look into a variety of bad credit loans.

Finally, mortgages are another type of consumer credit. Different mortgages are offered, including endowment mortgages, repayment mortgages, and interest only mortgages. The most common variety is the repayment mortgage while endowment mortgages are not commonly offered in Canada. Finding the right secured personal loans can be challenging, find out more here.

Pros And Cons Of Applying For Prepaid Credit Card With No Credit

If you want to apply for a prepaid credit card but have no credit history, you should know that your chances of being approved for one are higher than if applying for an unsecured credit card. With no credit history, the issuing company will have a hard time assessing your reliability and creditworthiness. With unsecured credit cards, persons with no credit history are regarded risky borrowers. Issuers of prepaid credit cards require that cardholders deposit certain amount of money in the account, which becomes the credit card's line of credit. Obviously, this does not involve the same risk credit card companies take with unsecured credit cards.

If you want to apply for a prepaid card, you should first look at the fees credit card companies charge for offering this type of cards. While you will not be charged late payment fees or interest when using the card, some companies require an initial set up fee. You may also be charged a fee every time you want to deposit funds. Make sure you ask your bank or credit card company if you can use the card to make hotel and airline reservations, purchase items online, etc. Some companies do not support these types of transactions.

You may want to get a credit card that you can load from one location, then using it in others. 'Home and away cards' are offered by some credit card companies. Keep in mind that these cards are intended for parents of college students. Do not apply for this credit card if your child is aged 13.

If you get approved for a Canadian prepaid credit card (prepaid Visa or prepaid MasterCard), you should know that the card is used much like the unsecured varieties. The main difference is that these cards are offered with a lower credit limit which will be based on your security deposit. There is a difference between a prepaid debit card and a prepaid credit card. You shop on credit with a prepaid credit card.

The good news is that you cannot accumulate excessive debt by using a secured credit card. You pay money upfront, and your purchasing power will be limited to the amount of money deposited. Applying for a prepaid credit card is also a good idea if you are a parent and want to give your child a card while limiting his/ her purchasing power. However, if you want to pay for an item, for which recurring payments are made, you will find out that you cannot do this. The same is true for monthly internet subscriptions. Prepaid credit cards are not accepted by most businesses, and there is a good reason. Companies have no guarantees that money will be available in the account each month. This means that money may not be available to pay for the subscription or bill. Learn more about credit cards at RBC credit cards.

About Secured Credit Cards

Many times in life, we face such situations where we desperately want a specific object, but have no cash available for it. Other than that, sometimes we also get into useless debt crisis, due to silly expenditure. Credit cards are no wonder extremely beneficial for us, but they also have great capacity of creating problems particularly for those who are a bit of a spendthrift. Once you run into debts owing to a particular credit card you are most likely to get another one to clear up the bills of the previous one. It gradually becomes a vicious cycle. But a new credit card cannot be granted if you have a poor credit history. Getting a hold of one would have been very hard if it weren't for secured credit cards.

Secured credit card is basically a card which is secured by a specific amount of credit which is usually kept in your account. Secured credit card functions just like your regular account, but offers a lot more ease as you are not required to get your money via bank or ATM. Moreover, you can never run into debt as long as you use this credit card since it allows you to use that amount which you already have deposited.

This amount depends on the money in your deposit account and is usually between 50% and 100% of the total money. For example if you have 20,000 dollars in your account, your credit will range anywhere between 10,000 dollars to 20,000 dollars. However, the precise figure relies largely upon the financial institution you are getting your card from and also on the kind of your card as well. Sometimes you may also find various enticements given to cardholders. The one which is really eye catching is the offer which allows you to have an access to a much higher credit even with a small credit in your account; this often is up to 1000% of your entire money.

Like all the other types of credit cards, this card also needs you to clear up all your monthly bills in time. Your deposit account is only kept as collateral and only used if you fail to pay the required amount. This helps you maintain and even improve credit records as you are not negatively reported for the times you fail to pay the whole sum.

Actually, even if you have kept the deposit account as the insurance and the bank has access to it, it is not touched right away. Even if you fail to pay the entire sum for a couple of times, the banks neither takes the amount from your deposits nor does it report you negatively; rather they generally wait till the closure of account and inform you about the debt. If you don't pay up even after 5-6 months, they cease your deposit account, and by then your debt amount may actually add up to be more than your deposits. This is partly because of the extra interest quotient for the delayed period.

Looking for card for bad credit and getting frustrated? Don't be, just visit credit cards.

Do You Need Cashback Credit Card

With cashback credit cards, cardholders get back a percentage of the amount spent on purchases, and the cashback is in the form of refund or check. The amount of cashback is small compared to the total spending on the card. The more the cardholder spends on the card, the more money he gets back. Cashback credit cards are a good option for cardholders who pay the balance in full, avoiding interest payments. The interest on the outstanding balance can outweigh the amount of rewards if the bill is not cleared in full. A cashback credit card is also a good option for those who charge purchases rather than make balance transfers and cash advances. Some credit cards are further limited to some locations only.

An obvious advantage of having a cashback credit card is that the cardholder gets a discount on all items purchased. Cashback credit cards with higher credit limits can be used to purchase kitchen appliances, furniture, and other big items as to get a larger discount.

Those who consider applying for a cashback credit card should know that it usually comes with a higher interest rate. If there is outstanding balance on the card, the holder ends up paying more than if carrying a balance on a low interest credit card. The terms and conditions can change any time as well. This means that the categories of expenses that qualify for cashback may change as well. Certain limitations may apply to the amount of rebates, as the card may come with a ceiling amount. Even if money is spent only on approved cashback categories, the amount of earnings may be limited to a specified amount.

While many prefer cashback credit cards as a payment option, the terms and conditions should be read carefully. For instance, the credit issuer may require that certain amount is spent in one month to be eligible to get cash back. Alternatively, the qualifying amount may be limited to the first $1000 spent on the card. The cashback is not deposited into the cardholder's account immediately. The money will be credited within a period of 7 to 21 days. If the money is not credited, the cardholder has to claim it within a specified period of time.

Given that credit cards come with different terms and conditions, you need a cash back credit card only if you understand what is in the fine print and keep track of the accumulated cash back. Finally, keep in mind that while the credit card issuer may offer cash back, there are some limitations. Cash back is typically offered when you pay for dining, travel tickets, entertainment, groceries, and apparel.

Tips To Use Your Credit Card Smart

Cardholders who want to use their credit cards smart should consider their spending habits, lifestyle, and the purchases charged to the card. For instance, low interest credit cards are recommended to those who carry a balance as to avoid paying high interest charges. Cardholders who travel often may opt for an airline credit card and earn rewards points or frequent flyer miles. Persons who drive frequently can opt for a gas credit card as to benefit from the rebates that go with them, thus saving on fuel.

It is not recommended to carry a balance if you have a high interest credit card because you will pay more in interest. One strategy is to use the balance transfer options offered by various credit card issuers. Some credit cards come with up to ninety interest-free days. Some cards are also featured with very low introductory interest rates in the range 0 - 1.99 percent. Making a balance transfer to such a card is also a good option if you have a high interest credit card.

If you have a rewards cards should redeem the collected points before the expiration date. Interestingly, the majority of cardholders never redeem their rewards points. You may want to check how much points you have accumulated and ask the bank's customers service about the options to redeem them.

It is very important to learn your PIN number and never carry it with you. If you carry the card and PIN number in your purse and it is stolen or lost, someone can take advantage of your credit card. In that case, you should call your issuer immediately.

It is not a good idea to withdraw cash from your card. The card issuer will charge a high fee for that and in some cases, a minimum charge applies regardless of the amount. You can use your debit card or carry some cash with you as to avoid making cash advances.

It is best to pay the full amount each month rather than carry a balance. If you don't have enough money, you may pay the minimum amount, but you should try to pay the balance in full, if possible. Remember that banks charge late payment fees if you miss the payment date. On top of that, your credit rating is likely to suffer. Your application for a car loan, mortgage, or personal loan may be rejected later on. Banks and other crediting institutions favor trustworthy clients who pay on time over those who are unable to manage their personal finances. Finally, don't use multiple credit cards as you may lose track of your spending.

How To Protect Your Credit Card Information

Internet thieves are a real concern when you are shopping online. Before giving your credit details to any online merchant, check whether the website is secure. If you shop frequently online, choose only websites that have a secure padlock icon. This icon verifies that your credit card number will be encrypted and therefore safe.

Another way to protect your credit card details is to use the Verified by Visa service. You have a password that is known to you only. If you enroll in the Verified by Visa service, you can shop at all online merchants that participate in this program. An authentication page will appear before checkout, and you will be required to enter your password. You can activate the service at participating online stores or at Visa International.

MasterCard offers a similar service by providing clients with a unique secret code. This password will protect you against unauthorized use of your card details. Except for your bank, you are the only person who knows this code. Whenever you decide to shop from an online merchant, check whether it participates in the program. You will have to enter your code as to prove card ownership.

The Discover Card service differs from what MasterCard and Visa offer. When you shop online, your credit card number will appear encrypted so that you do not disclose your card information.

It is a good idea to take additional safety measures. When you shop over the Internet, look at the privacy policy of the merchant. Look at the information they store and how it can be used. Find out whether they share this information with partnering organizations and if they have a policy that is explicitly against selling information.

Look for an email and phone number of the company's customer service. Check the working hours of their customer service and whether you can contact them on weekends. You should be able to resolve disputes as they arise. To this purpose, look for a policy which specifies how quickly they respond to customers' requests.

Avoid shopping at websites with an http connection. The information is encrypted when you use the https protocol.

If you use more two or more credit card, choose one for making online purchases. This will simplify the tracking of transactions. While debit cards can be used for shopping online, credit cards come with additional protection. Look at your credit card limit too. If you are worried that someone can take advantage of your card details, choose a credit card with a low limit.

Cashback Credit Cards Secrets

Credit cards operate such that when merchants accept a payment by credit card they pay a percentage of the transaction money to their bank or money provider as commission. It is customary for renowned banks to share this back with their customers to make loyal customers and attract more with their rewarding credit card service. Banks very successful catch customer's attention by offering various deals and services on use of their cashback credit cards.

Credit card commission can be shared in the form of points like purchase discounts, package deals, gas filling etc, AirMiles, or a monetary amount. The money however that is given out has a special name, cashback credit cards. Banks then use from 0.5% to 2% of this money as service offers on cashback credit cards. This rebate is not done weekly or monthly, but annually to make sure that the customer doesn't take and use the credit card for a full year service. Reimbursements given out by the banks to customers is either in the form of credit or individual checks. Canadian cashback credit cards also have extended guarantee dates, theft insurance, baggage delay insurance and car rental insurance as part of their offers.

The advantages of cashback credit cards include the usage of free money where buying things is necessity, want, and even fun for some elite groups, hence they benefit most from their refund on luxury items. Now it depends on you if you want to search for cash back rewards on your own, or get it from your bank, that is ever ready to grab you up as their potential new customer.It has been noted that some banks offer an all time high cashback of 5%. Good customers who pay off their credit bills in full by the end of the month get selected for better credit ratings that earn them bonus points. A particular mastercard in Canada offers 'price protection' by making you a refund of equal to $100 on price difference if you get a reduce price inside 60 days of your purchase.

Now, cashback credit cards are not all good, as they do have some bad points too. Firstly, the lure of rewards encourages customers to make unnecessary purchases making it difficult to settle the balance. Secondly, some banks charge a high rate of APR that just adds to the customer debt. Thirdly, customers should make sure to read the terms and conditions before signing up. One thing to be aware of is that the rates that banks charge initially, is just for 6 months, with a gradual drop to 1% when customers go for purchases.

Canadian financial institutes offer a number of seminars each year to educate customers, so make sure you attend some for your knowledge and always be ready to deal with all the pros and cons when you have been hit by the sales pitch of a credit card seller.

How to Apply for Secured Credit Card

Credit cards have literally made it easier for us to spend money as we like, despite being tight on budget. As credit cards relieve us of paying in cash for the services we acquire on daily basis like in a restaurant, shopping mall, gas station etc. What we need to do is simply clear our bills at the end of the month. However, many credit cards cannot be availed by Canadians with bad credit history, students and immigrants in Canada.

However, there is still a ray of hope for all these Canadians who fall in any of the above mentioned categories. Well, if you want to get any benefits from credit cards, apply for secured credit cards. These secured credit cards have a number of advantages. But before discussing the advantages, let’s have a look what exactly does this term ‘secured CC’ mean.

Secured credit cards basically are a form of credit cards which work like any other credit cards, but what distinguishes them form others is the fact that they have a fixed amount deposited on them. This means that you can deposit an amount according to your needs with the bank or financial institution that you are getting this credit card issued from, and you can spend only that much amount. It may sound rather inconvenient; however, it is helpful for a lot of purposes

First of all, these types of credit cards are inevitable in case you are serious about rebuilding your credit score. If you have a bad credit history or no credit history, the lenders will not give you credit, and banks will also not issue you credit cards. So in such a situation, if you get a credit card which could help you in redeeming your credit history, you should go for it. These credit cards will actually start reporting to Equifax Canada and TransUnion right after you get such a card issued. Now since these cards are unlikely to get you into a debt you will be getting good ratings from these authorities.

Moreover, for immigrants in Canada, it often gets difficult to get a credit card and unless you get a credit card, you can not apply for different types of loans, which seems really necessary in these tough times. Immigrants in Canada need to start afresh, which means they have to build their credit score from scratch and for this purpose the credit cards which are secured seems most appropriate.

Apart from this, nearly anyone can avail these cards without much hassle. However, be sure to read the fine print of the company you are getting this card from. Plus, see if the interest rates are reasonable or not and ensure there are no extra fees and charges.

Get Rid of Credit Card Debt Once and for All

People are getting tired of the downturn in the economy the credit card debt, but it is not improving. If you have credit card debt and can’t see the light at the end of the tunnel then these tips should help you get back on the right track. You just have to be honest with yourself and the people within your family.

1.Asses your credit card debt honestly. It’s not good thinking “it’s ok, I’ll pay this off in a few more months...” Get down to raw figures and actually look at how much you owe in total. It might blow your head off, but at least you’ll know. Now you can manage it realistically. The next step is to find out what your biggest financial drains are a month. If there is anything you can cut out, great, do it. If it means drinking “Rola Cola” for a year instead of Coca Cola it isn’t the end of the world.

2.Next you must do a budget that doesn’t rely solely on more credit. Paying off credit cards and loans with more credit cards and loansmeans you’ll die in debt. You have to determine where the problem is and change it, instead of rolling everything over every month. You don’t lose weight by continuing to eat cake. You don’t get out of debt by continuing to spend the same amount of money.

3.Start saving. I know saving seems crazy when you need to pay off debt, but money that is saved is your money and can get you out of problems in the future. Put a small percentage of your wage each week in to a savings account.

4.Pay off the most expensive credit cards first. You can’t take baby steps here. What’s the use paying off the easy cards? You’ll still have a black cloud over you.

5.Don’t spend more than you earn. Stay in a few weekends a month. Don’t buy anymore clothes for this year. If you need brand name clothing, fair enough, but why brand name food? You’re eating it not wearing it. Turn off all the lights when you leave a room, unplug electrical equipment on standby, use public transport. When you think about it, there is a lot you can do to cut your monthly spending and it doesn’t always have to be that way. When you are out of debt you can up your lifestyle a little.

6.Seek professional help or credit counseling, they can guide you on the best way to take action and put everything in a clear and easy to understand manner.

7.To fight the temptation, once you have paid off any credit cards, cancel them and dance on their grave. The ideal is to end up with one credit card that you only use when you have to and use your debit card for everything else. The key to getting out of credit card debt is to be honest with yourself and make a plan. You need to understand your situation and have a plan of action before it can change.

8.If it all seems too much to manage seek debt consolidation services where your debts are taken on by an organization and you are left with one big loan or card. It doesn’t necessarily make it cheaper, but it is a damn sight easier to manage.


Disclaimer: The information contained in this website is provided as an information service only and does not constitute financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs. You must determine whether the information is appropriate in terms of your particular circumstances. For financial product advice which takes account of your particular objectives, financial situation or needs, you should consider seeking independent financial advice from a Financial Services Licensee.