Tag Archive | “Credit Line”

First premier raised Credit Card Interest rates up to 79.9%

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First premier raised credit card interest rates up to 79.9%. No, don’t think that you have read wrong.


By this huge increase in interest rates First Premier Bank, a subprime credit card issuer, found away around new regulations. These regulations have intention to control abusive practices in the industry.

Usually, the First Premier card for a credit line of $250 charge a $256 minimum fee in the first year.

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Should I Choose a Secured Credit Card or an Unsecured Credit Card?

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Whether you believe it or not, but I must tell you that there are a variety of credit cards and alternatives to the traditional credit card that we mostly use. Here I have explained you few forms of secured credit cards. It is better that you understand these options and choose any appropriate secured credit card for your particular needs.


If everything else is equal, I suggest you that you should always choose an unsecured card rather than a secured card. On secured cards interest rates are almost always as high as the interest rates of unsecured credit cards. There is no reason to choose the secured option over an unsecured credit card.

4 Secured Credit Cards to Watch out for

Here I have mentioned few secured credit cards which you should avoid choosing for your financial needs:

Credit Cards Secured By Your Purchases

Retails stores also issue few credit cards. For instance, Sears card, take collateral in the items that is purchased by you using the Sears credit card. What it means is that if you are unable to make your credit card payments, then the lenders might decide to repossess the property that has been bought by you using that card.

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How Does a Reverse Mortgage Work?

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There are several people, who do not understand the word reverse in reverse mortgage. So, here I will explain you that what does the word reverse in reverse mortgage refers to.

A reverse mortgage is that type of mortgage in which a borrower pays to the lender monthly, the reverse mortgage lender pays to the borrower. And the most important thing is that in reverse mortgage there is no monthly back payments. That is how does a reverse mortgage work!


4 Facts regarding how does a reverse mortgage works

Here in this article I will explain you few facts about reverse mortgage.

1. Are you eligible for it?

Yes, you are if you fulfill all the qualifications required for it. First of all, you must be an American, age 62 or over and you must own a home, where you should have equity left.

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Costs and Fees: Hefty Cost of Going Over the Limit

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In this article I have explained that what will be the consequences if you exceed from credit card limit.

What happens when I charge my credit card over the limit?

If you charge your card over the limit then you will be socked with a hefty penalty fee. Commonly the over-the-limit fees charged by card company is of $29 and $35.

I know a person who was charged a $25 late fee and $25 over-the-limit fee on a Capital One card having a limit of $300.


It has been pointed out by the issuers that in the credit-card agreement fees are spelled out and credit limit, balance information and due dates are listed in the monthly statements. But still there are several people who are shocked by over-the-limit fees. In fact, most of the people don’t even know that there is any card’s over-the-limit penalty but they learn about that  after they get charged one.

When You’re Charged

There are two choices that credit card issuers have when a customer makes a purchase that exceeds a credit limit. They can either refuse the transaction or they may approve it and charge a fee.

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Costs and Fees: FAQs About Credit Card Fees – Part 2

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Question: Usually I pay all my credit card bills on time, but occasionally it happens that due to some reason I miss the due date by a day or two. So my question is that are these exorbitant $35 late fees fair practice?

Answer: For this question I’m going to start out on the bank’s side. A credit card in its real sense is a line of credit. The bank has made a commitment with you that it will continue to lend you money up to your credit line, and so you have also made a commitment with your bank that you will pay them back. When you don’t pay your bill on time, the bank begins to wonder if you’re going to pay it at all. So by penalizing cardholders for late payment by them, two things are done simultaneously by the bank one is that it trains you to make timely payments and the other is that doing this it gets periodic affirmation of your commitment to repay them. OK, so negative reinforcement is not liked by anyone, and $35 is a quite expensive reminder. Particularly when the banks use a couple of late payments as an excuse to raise the interest rate on your credit card.

credit card fees 2

So what you should do now? First of all, you should make a call to the credit card company. Tell them that you have decided to move the account if they don’t revoke the late fee. That thing will work the first time, but if it is your second time then it won’t work. Then you should ask yourself that why you are late with these bills. In order to fit your monthly budget flow you may need to organize the due dates .

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Congress Aims to Change Credit Card Rules for people Under 21

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Congress wants that it should be harder for the people under-21 to accumulate a mountain of credit card debt.

Credit card holders shall be affected by a new federal law and it will also affect people of all ages who want to have credit cards. But due to the reason that several provisions don’t take effect until February, so for many college students this could be the last semester of truly easy credit.


A recent survey that has been conducted by student loan manager Sallie Mae elaborates that the average amount of debt that is being carried by undergraduate cardholders is $3,173 which has increased up to 46% from five years ago. And the average number of credit cards that are being carried by these students is five.

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Check List for Getting a Home Equity Credit Line.

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This checklist does not tell you the procedure to get home equity loan, It is designed to help you to protect yourself when you’re getting a home equity credit line. The purpose behind writing this article is to educate people out there about common pitfalls of home equity credit lines, so that they can protect themselves, when they take this important decision of their life.

1. Check your credit line for a pre-payment penalty clause.

If you are getting a “NO FEE” credit line, chances are it has a pre-payment penalty clause.  This can be very important plus expensive, especially if you are planning to refinance or sell your home in the next two to five years.


2. Never apply for too large a credit line.

If you get too large a credit line, you can be turned down for other loans.  Some lenders calculate your credit line payments based on the available credit, even when your credit line has a zero balance. Having a large credit line indicates a large potential payment, which makes it difficult to qualify for loans.

3. Understand the difference between an equity loan and a credit line.

An equity loan is closed–i.e., you get all your money up front, then make payments on that fixed loan amount until the loan is paid.  An equity credit line is open–i.e., you can get an initial advance against the line, then reuse the line as often as you want during the period the line is open.  Most credit lines are accessed through a checkbook or a credit card.  Credit line payments are based upon the outstanding balance.

  • Use an equity loan when you need all the money up front–e.g. home improvements or debt consolidation.
  • Use a credit line if you have an ongoing need for money or need the money for a future event–e.g., you need to pay for your child’s college tuition in three years.

4. Check life cap on your equity line.

Many credit lines have life caps of 18%.  Be prepared to make high interest payments if rates move upwards.

5. Shop around.

Many consumers get their credit line from the bank with which they have their checking account.  Shop around before deciding to use your bank.

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Understanding Credit Card Terms (Glossary)

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It is a good way to understand credit card terms so that you may stay one step ahead. If you are able to read a credit card application and completely understand all the terms of agreement on your card you’ll be in better form to use your cards with whole responsibility and you may also avoid falling into the credit card debt trap.


Here in this article we are presenting you a glossary of the most common credit card terms that could really help you with your credit card education:

Adjusted Balance Method

Adjusted Balance method is a formula that many card issuers use for the purpose of calculating the amount of your monthly payment. During the month the payments that you made to the credit card account is subtracted from the balance, and finance charges are added on to get the adjusted balance.

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4 Easy Steps To Transfer a Credit Card Balance

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It is usually a good way to reduce the amount of money you pay back on your existing debt by transferring a high interest credit card balance to one with a better interest rate and/or better overall terms and features.

You may also be able to benefit from a rewards program or it might be possible that you may gain other features you didn’t already have but this depends on the “better” credit card you select.

balance transfer

These features might include travel accident insurance coverage or an extended warranty program for new purchases that you made with the card. Sometimes you may encounter such situations when at first glance balance transfer does not look the great deal, so before moving your accounts around, it’s important to do your research.

If you have decided to take advantage of a balance transfer offer, then here we are presenting you a guide for a smooth transition from one card to the other, so use it to avoid costly or time consuming mistakes:


June 2011
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