Sooner or later every credit card charges interest, regardless of the promotional benefits offered during the introductory period. However, if the card balances are repaid in full before the end of the grace period, then it is possible to avoid interest altogether. Nonetheless, the majority of cardholders only repay a percentage of their outstanding balance, and some even choose to pay the minimum amount due, which can actually have a negative effect on their credit score. Unfortunately, every credit card issuer utilizes a different APR calculation method, the most common of which are explained below.
The annual percentage rate (APR) must be divided by the number of billing periods within a year (usually one for every month) to determine the periodic rate, which actually dictates the amount of interest charged each month. Thus, a 12% APR would have a periodic rate of 1%, (12% APR divided by 12 billing periods equals 1% periodic rate).
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With credit card debt being at an all-time high, it is not surprising that many cardholders are choosing to cancel some of their cards to avoid debt and simplify the management of multiple credit accounts. Repaying a large amount of debt and repairing the credit score after being a victim of credit card debt can be a process that takes years to complete. Thus, many cardholders choose to simply close their credit accounts, rather than risk accumulating even more debt in the near future. Although this may seem to be the wisest decision, there are several factors that need to be considered before a credit card account is canceled.
Current Interest Rates
While low interest rates may seem useless to an individual who is in debt and cannot afford to make credit card repayments, they are an increasing rarity in today’s credit card market. It seems as if credit card interest rates are continuing to rise year after year, despite various policy reforms designed to protect consumers from unfair fees and rates. R
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With the 2011 Oscars fast approaching, the glamorous lives of Hollywood celebrities are on the forefront of American consciousness. Why does this have anything to do with the credit card industry? Because celebrities have always been the go-to spokespersons for credit cards over the years.
Allow us to conduct our own form of the Academy Awards. Without further ado, here are the top 5 credit card ads featuring celebrities OF ALL TIME!
5. Pierce Brosnan- VISA
Not only does this commercial feature a dapper Pierce Brosnan in his James Bond days, but also a surprise appearance by Mad Men star Christina Hendricks before she made it big.
4. Ellen Degeneres- American Express
Rarely are commercials charming and hilarious at the same time, but Ellen Degeneres makes it look easy in this awesome ad.
3. Conan O’Brien- American Express
In this ad, Conan looks hilariously out of place as he browses around India for the perfect silk curtains. T
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Visa, MasterCard and Discover fill your mailbox with credit card offers. You can’t log onto the Internet without pop-up ads encouraging you to apply for the latest cash-back or rewards credit cards. You’d think, then, that all you’d need is decent credit to qualify for consumer credit cards today.
Maybe … but not if you’re applying for many of American Express’ premium credit cards.
Try applying for the American Express Platinum or Gold Card. You might find that even if you do have a solid credit record, that American Express will send you a “No Thanks” after you submit your application.
Desirable Cards
These top-of-the-line credit cards are desirable. The American Ex
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Some MBNA customers are about to have their credit card cancelled after their details fell into the hands of fraudsters.
Cards will become inactive on February 17, but customers may have to wait up to 11 days for a replacement card and Pin.
MBNA, which has five million British customers and is part of Bank of America, refuses to say how many customers are affected, but has written to cardholders this week.
Experts point out the move could be particularly inconvenient if the customer is on holiday and does not realise their card is about to be cancelled.
In a further headache, those affected must re-register their new card for online banking and notify any companies that take payments from their card.
MBNA insists that only card numbers not personal information such as names and addresses may have been compromised and the replacement cards are being issued as a precautionary measure.
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