Credit Card Debt Management

Are you looking to add a new credit card to your wallet? If so, this is not something that you should recklessly jump into. As you probably know, there are many different credit cards to choose from. They come from companies such as Visa, MasterCard, and many others. And while you may know that you want a Visa, the company offers a wide range of credit cards.

First things first, what is most important to you? Many people search for the credit card that offers the lowest interest rate. After all, there is a big difference between a card with a 7 percent APR and one with a 15 percent APR. If you carry balances from one month to the next, you definitely want to shop for the card with the lowest interest rate.

Moving on, are you interested in a rewards program? This may not suit your needs if you only use your credit card once in a blue moon, but for others, this is a perfect fit. If you are going to spend money, why not get something in return? There are many great rewards programs out there including those that offer airline miles, cash back, and much more.

Your credit score will have a lot to do with what credit card and corresponding interest rate you qualify for. Do you have a great credit score? Quite possibly 775 or above? If so, you should find it pretty easy to obtain a credit card with good terms. That being said, consumers with bad credit may struggle to find a company that is willing to extend them credit. And if they do, the interest rate may be astronomical.

Use the above tips, as well as your own personal situation, as a guide when shopping for the right credit card. Remember, there are many options to choose from. There is no reason to rush into a decision that does not suit your needs.

In the interests of protecting against fraudulent credit card usage, many banks are getting proactive. Overseas, where the crime has apparently run rampant, banks are now blocking legitimate cards at even a hint of suspicious activity, according to an interesting new article on British financial site ThisIsMoney.

International credit card fraud has been a tremendous problem, and it’s not getting better anytime soon. Reports say the problem seems most significant in the United Kingdom — we’re talking about hundreds of millions of dollars. There are entire crime rings dedicated to this around the world, and international enforcement is difficult, to say the least. Hopefully, by the banks taking matters into their own hands, it will deter criminals somewhat. However, it can also create serious headaches for travelers.

The following steps can provide smooth overseas financial transactions:

Talk to your credit card issuer. Let them know you will be traveling and making purchases overseas. This way, they won’t be caught off guard and become unreasonably suspicious.

Mix it up. Pack a variety of debit and credit cards, and mix it up with cash for a backup plan. You might even consider a prepaid card loaded with the currency of the country in which you will be traveling, ThisIsMoney advises.

Write down phone numbers. Just in case you and your credit/debit cards become separated, write down the customer service phone numbers and keep them in a safe place. These numbers can be found on the backs of the cards or on your monthly bill. You might also want to write down the three-digit security code found on the back of your card for verification purposes, should you need to call customer service. Most should be okay with just hearing your social security number, however.

Research your company. Make sure you know your credit card issuer’s policies on card replacement and other fraud issues. It’s certainly nice to have 24-hour emergency card replacement, in the event your card is stolen or swallowed by an ATM machine.

Credit cards could be the new tobacco, according to MediaPost’s Marketing Daily. Not in the sense that we’re addicted to them, per se – more in the sense that we’re becoming ever more afraid of them. Looking 10 or 15 years down the road, it is possible that credit cards, once a socially accepted symbol of affluence and convenience, will be just another black mark in the pages of American history books.

For instance, certain cards in certain colors signify that you have a “really” good credit score or a “really” high income, just as Virginia Slims once signified that you were a “really” fashion-conscious smoker. Now, cigarettes are generally banned from most restaurants and public perception has tanked to the point where they are most associated with bad breath and a hacking cough. Could it be that credit cards too will someday be banned from restaurants (doubtful) and they will be most associated with “Sucker”? It is indeed possible, according to the Marketing Daily article, citing a vast study by more than 60 reputable organizations:

“And the anxiety consumers feel about debt is intense: More than one-third (36%) of Americans say they have felt at some point that their financial situation was out of control. People ages 30-49 are more likely than others to have felt this way (45%). Parents with kids under age 18 are also vulnerable (41%), as are African-Americans (46%).”

Will consumers get mad and cry foul at the big credit card companies like they have with big oil companies? Probably not, the article says. There is a familiarity and comfort with these brands and they are still strongly associated with convenience, by and large. And it is dangerous to paint the entire industry with a broad brush when some consumers (i.e. the responsible spenders) are not “over a barrel” with their credit cards, so to speak. However, I am of the mindset that consumers do have room for a little indignance at misleading and vague marketing, interest rates that skyrocket at the drop of a hat, and spending limits that fluctuate with whichever way the breeze blows. These practices fly under the radar with many folks because they haven’t been told or are too preoccupied to investigate how it might affect them.

Will the credit card industry be the new tobacco? No, probably not, and I doubt we’ll see Visa-sponsored Get Out Of Debt commercials anytime soon. But even if the industry can protect its public image, it should be subject to at least some regulation.