A Guide to Gas Credit Cards

A Gas credit card, which is also referred to as a Gas rebate card, is a card that gets rebates and discounts on gas purchases. Gas cards can be issued by credit card companies or gas companies. The card works by getting card holders a rebate when they fill up gas using the card, and though the amount of money saved is small per transaction, it adds up to a significant savings after a few months. These are times of high oil prices and so, every consumer must exercise financial prudence and use his gas card while tanking up.

Gas cards can be of 2 types -

1. It can be issued by a gas company in collaboration with a card company like Visa or Discover. Such cards can be used by the card holder to make purchases anywhere, but they are allowed to save on gas only when they buy it from outlets affiliated with the card issuing company, i.e., the gas company. A gas card can be issued by a particular gas station as well, and in such cases, you must fill up gas from that particular station if you want a rebate.

2. Another kind of gas credit card is issued by credit card companies, and such cards allow card holders to get rebates when they buy gas from any gas station.

It makes sense to take the 2nd type of card because it gives you the freedom to choose a gas station. If you are bound to a particular gas station, then, though you will get a rebate, you may lose out on gas prices (because the card-issuing gas station may not offer a lower gas pricing as compared to other gas stations).

A gas credit card gets a rebate on gas purchases ranging between 3% and 5%. General rebate cards offer discounts on gas, grocery and other purchases as well. When you fill in gas, you swipe your card at the station and the credit card company calculates the rebate and records it in your account. You can redeem this credit (when it builds up to a sizable amount) against your regular credit card monthly payments. Some credit card companies reimburse the rebate credit by check or by way of a direct deposit.

You can get a gas credit card at an attractive APR (Annual Percentage Rate) if you have a good credit history and score. If your credit history is average or below, then the credit card company will charge a high APR, assuming you manage to qualify for the card.

Check for the following before choosing a gas credit card:

1. What is the rebate rate, and does it drop after a certain period.

2. Can the card’s terms be changed by the issuing company? If yes, then ask the issuing company what they will offer in place of the altered terms.

3. Do you have to spend a minimum amount per year to qualify for the rebate?

4. Are all gas stations eligible? Or, are you allowed to fill up from selected stations?

5. How is the rebate reimbursed? Does the card holder have to ask for it? Does it lapse after some time if the card holder does not ask for it?

The guide above will help you avail the right gas card. Remember to pay your dues on time and do not exceed your credit limit.

{ 0 comments }

How to Use Credit Cards to Rebuild Credit

A bad credit history can be a real financial nightmare. You are refused loans, or given loans that carry abnormally high interest rates, and you feel low-down and bad about your condition. So, it makes sense to raise your credit score and get some financial normalcy back into your life. One way you can raise your score is by taking and efficiently using a new credit card. Yes, you heard that right – you can actually use a credit card to rebuild credit, and here’s how:

1. Get a new credit card. You may have had a bad experience with your previous credit cards and may have vowed to stay away from credit cards, but that’s not how you should approach your problem.

2. If your credit history is way below average and if you are unable to get a regular credit card, then go ahead and get one from your local department store or get a secured credit card. A secured credit card works best because your credit limit is based on a deposit that you have to make. You cannot use more credit than this, and you must pay the credit card bills on time, else the card company will forfeit your deposit. Secured cards help you spend wisely and their APR is very low as well. Some card companies offer credit cards for people with a bad credit history. But such cards carry a high APR and high fees. Our suggestion is to go with a secured credit card or a department store credit card.

3. Here’s a tip: Don’t take a prepaid card because its transactions are not reported to credit bureaus, and so, such cards are of no help.

4. While applying for a new credit card, ensure that you do not paint the town red by making too many applications. If you do, your credit score will be negatively impacted. Apply only when you are reasonably sure you will get the card.

5. The next step is to start using your brand new credit card. However, remember that you got into trouble in the first place because you did not pay on time, and so now you must ensure that you develop financial discipline by following good financial practices. If you’re serious about improving your credit card score, pay on time and pay in full. If you make minimum payments, you will be charged interest and your credit score will not improve. So learn to spend what you can afford and make the full payment in time.

6. Ensure that every payment is on time because if a debt collector is appointed to go after you, a note will be made in your credit report and this sticky, ugly note will stay for 7 whole years.

7. Over time, you credit score will start improving along with your financial habits. Remember not to expect results overnight. You must persevere in your effort to boost your credit.

So, once your credit score starts improving, lending companies will start looking at you in a new, positive light and the smile will return to your face. One last thing before you get ready to start: Do not take many credit cards for rebuilding credit – just go with one or two cards, and good luck.

{ 0 comments }

Pros and Cons of Credit Cards for College Students

As the name suggests, a students’ credit card is a credit card for college students. It helps the student learn financial concepts and become more responsible. It also helps parents control their children’s spending. Here are the pros and cons of credit cards for college students:

Advantages

1. Students learn financial responsibility. All they have to survive in the world is a credit card, and so, they realize that they must use it judiciously and always keep it active by making payments on time. If they don’t, they will not be able to spend until the outstanding is paid, or, unless their parents are ready to bail them out. College students realise the importance of paying on time and maintaining good credit and understand what it’s like to be without money. They get introduced to how it’s like in the real world, and such financial training makes them tougher and ready to face financial challenges in the real world.

2. A students’ credit card helps college students build up a credit history. Students get a head start on building credit scores because they start building from a relatively young age. Every time they swipe their card and build a small balance, it goes into their credit history. Year after year, the credit history accumulates and by the time they are out of the college and into a job, they can easily get loans to rent out an apartment, buy a car, avail loans, and do much more. They become financially independent as soon as they graduate.

3. A credit card helps students become financially independent. By the time they become adults, they are already hardened veterans who have spent a lot of time deep in the trenches. A credit card makes matured adults out of students. It’s a whole game changer!

4. A card can help students in times of need. Let’s face it – all students are short of cash most of the time. If an emergency occurs, they may not have enough cash for help. But a credit card will help them get out of a car accident or buy expensive reference books, and more.

Disadvantages

1. As parents support the children’s spending by paying their card dues, the child does not actually learn fiscal responsibility.

2. If the college student misuses the credit card, then there can be hell to pay. This is because his credit history starts getting scarred from a young age and at a later stage, while reviewing his credit report, lenders may get the impression that the borrower is a financially reckless person.

3. Instead of using his credit card on necessities, a student may spend it on unwanted luxuries like partying with friends, holidaying, etc. His parents will end up paying the credit card debt, but the student will learn nothing and instead become a spend thrift.

So there are two sides to a credit card for college student – good and bad. That said, the advantages of a student owning a credit card are far greater than not owning one. Even if the student slips up, he gets to learn the second time, and it’s easy to get up and pick up the pieces when you’re young. So, the argument closes in favor of college students owning a credit card.

{ 0 comments }

How to Get Approval for Instant Credit Cards

Instant credit cards, also referred to as instant approval credit cards, are cards that you can apply for online and get approved in a matter of minutes. We live in a fast-paced world and have no time to fill in paper forms, submit these and wait for a credit card company to mail us our status. Everything’s online now, and so are credit card applications. However, though you may get instant approval, the physical card takes several days to arrive.

Instant credit cards are available for people with different credit scores. People with excellent credit, fair credit, or bad credit – anyone can apply online for a credit card and get instant approval (or, disapproval). Though people with excellent or fair credit will not face any issues getting instant credit cards, folks with bad credit must be careful before applying. So, what should these folks with bad credit do to ensure that they are approved? Here’s a guide that can help:

1. The first thing to do is to choose a credit card that is available for people with a bad credit score and then reconcile the credit card with your card usage habits. For example, if you want to use the credit card to buy groceries or gas, then choose from rebate cards that are available for folks with a bad credit score, and so on. Credit card sites provide you with a variety of credit cards and all you have to do is filter through to the ones that are applicable, compare these, and choose a card that works best for you.

2. Do not apply for multiple credit cards over a short period of time. That will lower your credit score, thereby ruining whatever approval chances you just had.

3. Choose carefully and apply for a credit card that you are likely to get. If your application is denied, your credit score goes down.

4. Know your credit score before applying for instant credit cards. The credit score is a reflection of your creditworthiness. Obtain your credit history from all the 3 major credit bureaus – Equifax, Experian and TransUnion. Check these and get errors rectified, if any. Remember, the credit card company will pull your account history from any of these bureaus, so it’s better that all errors are eliminated from all the 3 reports.

5. Next, use an online calculator to double-check your credit score before applying. Online credit score calculators can also help you manage your credit card repayments by conducting a what-if analysis.

6. Finally, know that if you have bad credit, you may be offered credit cards that have a high APR (Annual Percentage Rate) and high fees. There’s no escaping this.

Follow the steps outline above to apply for instant credit cards. You can get approval within 60 seconds if you do things right. And, once you get your credit card, remember to pay all your dues on time and never ever exceed your credit limit.

{ 0 comments }

What are the Best Credit Card Rewards?

A rewards credit card is one that rewards you every time you use it. There are many different types of rewards – cash back cards give you cash back based on the number of points or rewards you have collected, gas cards get you rebates on filling gas, airline miles credit cards help you accumulate air mile points that can be redeemed for air tickets, and so on. Best credit card rewards are the rewards most suited for your lifestyle. These rewards cards can be issued by credit card companies or individual companies in partnership with a financial institution or a credit card company.

Let’s say for example that you have to travel to different companies on business purposes. You can buy air tickets and spend abroad using an airline miles credit card or frequent flier credit card. These spends will help you accumulate points (rewards) and you can later redeem these points for air tickets, thereby reducing the cost of your air travel. Likewise, there are different cards for different purposes and you must choose a card that is suited to your lifestyle.

As mentioned earlier, there are many types of rewards credit cards available in the market. The most popular of these are:

Cash back cards, that send you a check after you have accumulated the minimum stipulated reward points;

Airline miles or frequent flyer credit cards, that allow you to redeem accumulated rewards points for air tickets;

Gas credit cards, that get you a discount on gas or get you cash back after you have earned enough rewards points;

Shopping cards, that reward you every time you shop by getting you discounts from retail outlets.

Choosing the best rewards credit card

Choosing the right rewards card is not easy even though you have identified the type of card that’s best suited for your lifestyle. You must research online and compare which company’s rewards card is offering the best terms. Read consumer reviews as well and research the negative comments. Here are the terms that you must look for:

1. Annual fees (choose a card with low or no annual fees);

2. APR (Annual Percentage Rate) – a high APR can take away all your rewards benefits (assuming that you do not pay your bills in full and on time).

3. Is there an expiry date on redeeming the accumulated rewards? Many companies stipulate that the rewards must be redeemed within a certain period. Check whether an expiry date exists and if it does, does it reconcile with your credit card planning.

4. Look for the words “up to.” Up to 50% can even mean 1%. So, clarify all doubts while choosing your best rewards credit card.

5. Check if you have to spend a minimum stipulated amount before cashing rewards.

6. If your spending is not much, choose a rewards card that offers quick rewards.

7. Look for caps on rewards. Ensure that there are none, or if there are caps, then these should be liberal enough.

These were the different types of rewards cards and the strategies you must employ in choosing one. The best rewards card for you will be one that suits your lifestyle, is highly affordable, has no annual fees, carries a low APR and does not hamper your spending with its fine print.

{ 0 comments }

← Previous Entries