Like every other financial industry out there, the credit industry is highly competitive. These companies fight an everyday battle to attract customers. And this battle is raged with their credit cards.
There is absolutely no reason to pay for a credit card. Almost all, if not all, of your cards should have no annual fee attached to them. Why people pay an annual fee for a credit card is beyond me.
What is the best way to get a free credit card? The best way to receive these offers is to have a good credit score. You see, your credit information is being accessed all the time by credit companies looking for new customers. Almost everyone gets credit card applications. But the people with the best credit scores get the best offers.
When I was first building my credit I would get the standard credit card offers in the mail. These of course had annual fees and unimpressive perks. After a time of being financially responsible with my credit the offers began to improve.
Over the month I noticed:
- the annual fees dropping
- the credit limits being offered increasing
- the perks increasing
Eventually I all but stopped receiving applications with annual fees. The offers I was receiving were far better than the previous ones. There is no secret here. The terms you are offered are based on your credit profile.
Now if you have a good credit history and are really interested in more than a free credit card, you should do some searching for good offers. There are many financial websites out there that frequently post good credit card deals. All you have to do is check the forum everyday and wait for a deal to pop up.
The two main forums I check on for good credit card deals are fatwallet.com and slickdeals.com. Here great offers pop up often. What kind of deal can you get? Well my last card I got has no annual fee, 0% interest for 6 months and I received $250 in rewards money for signing up for it.
I’d do a lot for $250. Checking up on a forum is nothing.
Written by admin on July 31st, 2007 with no comments.
Read more articles on Thinking About Money.
I’m getting ready to make an offer on my first house in a couple days. In preparation for that I’ve been looking into my financing options. Anyone who is in the mortgage business can tell you, financing more often than not is a tricky process in home purchases.
My case is no different. I have to do a no documentation loan because I am having documentation issues. You see, I’m self employed and have been so for less than 2 years, so I don’t have 2 years of tax returns for the lenders to look at.
A no doc is not really an issue for me as I’m not as concerned about the interest rate on the loan as others might be. Take a look at http://www.myquo.com/my-plan-to-buy-a-house-in-6-years/. Since I will be aggressively paying off the mortgage, a higher interest rate will not cost me as much money as a 30 year loan would. Plus, I always have the option of refinancing at a lower interest rate in the future.
I was stressing myself out about my ability to get a mortgage however. I was afraid that lenders would not want to loan out money to me and that I wouldn’t be able to buy the house. Fortunately, a friend of mine fixed my view on the matter.
It is important for everyone who is seeking a loan to realize that: banks want to loan you money. In fact, loaning people money is what their whole business model is based on. Once you get it in your head that the bank wants to sign you to a loan, you will be realize that you are in the drivers seat.
I originally was going to do my mortgage through Navy Federal. I was looking for a 100% financing, no documentation loan. The best they could offer me was a 80/10/10 loan. That means that I would have to come up with a 10% down payment. This was something that would be very hard for me to do.
The solution was simple, go work with another bank. You see, just like many sectors of our economy, the banking industry is very competitive. Just because one bank is not willing to give you a loan, does not mean that another won’t also. The reality is that most loans can be done. It all comes down to how much you are willing to pay for it.
My buyer’s agent has recommended a couple of lenders to me. Both of which are willing to offer me a 80/15/5 loan. Although I was hoping to get a loan with 0% down, I have no problems with a 5% down loan. I’ll probably end up with a better interest rate with a 5% down loan anyhow, so I should be better off in the long run.
Realizing that I was in the driver’s seat in the loan application process has helped me greatly. Once you realize you are in the driver’s seat also, you will find that the process is a little less stressful.
Written by admin on September 14th, 2006 with no comments.
Read more articles on Thinking About Money.