Answering the following questions will help determine whether you are a compulsive spender. Or at least that’s the theory!!!
1. I have not seen my credit statement for over a year and don’t care.
2. I can barely afford the minimum payments on credit card balances - and don’t care.
3. I haven’t checked whether I can get a better credit deal elsewhere for over 2 years.
4. I have an overdraft that runs close to the limit every month.
5. I have been turned down for credit 3 times in the last year.
6. I have no pension, no savings and no assets.
7. I focus on credit card gifts and incentives, not the APR.
8. I have more than twenty credit cards with balances.
9. I have never used a budget to control my spending.
10. I run out of money regularly and have to borrow more on my overdraft.
It’s nothing new but there’s a helpful article over at USAToday about the need to keep a good credit score.
This snippet was particularly poignant:
“In response to a sharp rise in foreclosures, mortgage lenders have tightened their standards, leading to an increase in rejected applications.
In addition, interest rates have been rising in recent weeks, so even if you qualify for a mortgage, you’ll probably pay more for it. That means it’s more important than ever to make sure your credit score is in good shape. A credit score is a mathematical model that analyzes information in your credit report. Lenders use credit scores to gauge the likelihood that you’ll repay your debts. A good credit score can save you thousands of dollars in interest over the life of your loan.”
This is so true, and it doesn’t stop with Mortgages. Hiring cars, personal loans and even business loans can be made more expensive if your credit score doesn’t come up to scratch.
It appears that the ever more competitive credit card market is beginning to tighten it’s belt in the UK.
According to recent research from cardguide.co.uk the number of cards now offering fee free balance transfers with 0% interest free periods is in significant decline.
The mechanism of zero fees on balance transfers has long been used to massage the cost of repaying balances without incurring large amounts of interest.
The problem appears to be that credit card companies are not making enough money and this is therefore resulting in a rethink on fees.
Of the many zero per cent balance transfer credit cards still available on the market, most charge borrowers a fee for transferring other credit card balances onto the card.
Steve Brown, BalanceTransfer.cc and BusinessCreditCards.cc owner, said: “Zero per cent intro APR balance transfer credit cards that don’t charge a fee for transferring balances have been the most popular products recommended at the BalanceTransfer.cc site for many months now.”
(Via Fair Investment)
Bank of America has joined the rush to serve the very wealthy with a high end credit card. It’s a joint venture with American Express called the Accolades Amex Credit Card.
The card is targeted exclusively for the very wealthy customers in their Private Bank arm, Premier Banking & Investments, division of Bank of America. The minimum requirement for customers is $200,000 worth of assets at Bank of America.
Perks of the new card include:
Read more...
Sifting out the wheat from the chaff should become easier in the UK credit market after a new initiative from the Office of Fair Trading.
In a recent announcement the OFT unveiled “a new programmed of work with card providers and consumer groups to make the cost of cards easier to understand.”
Yippee!! This is long overdue in the UK. Congratulations to consumer group Which? who are known to have exerted pressure on this issue stating that “consumers are choosing credit cards without understanding all the issues that affect the cost of the card.”
Interestingly OFT research indicates that most card holders don’t even bother to compare credit card deals. It’s hardly surprising when you see the sheer volume of small print bundled with each deal.
OFT chief executive John Fingleton said: ‘Credit card pricing has become increasingly complex, with many new dimensions such as interest-free periods. While these . . . give additional choice and value to consumers, they can make it harder for consumers to make informed decisions.
‘This work will consider how pricing information might be improved so as to enable better product comparison by consumers, without stifling valuable competition and innovation that benefits consumers.’
