The Internet Makes Managing Your Debt Easier Than Ever
Finding the Best Credit Card Online
At Card-Trak, you can search a database of thousands of credit cards to find one with the features that are most important to you, such as:
- Best rate
- Consolidate debts
- High limit/good rate
- Poor or no credit
- No fee/high limit
- Grace period
- Rebates/rewards
The search results include the interest rate, geographical area the card is available in, annual fee, the issuer's name, and a link to their Web site if they have one. Card-Trak also includes articles about new credit card deals, changes to existing credit card terms, and other consumer-oriented topics.
Bank Rate Monitor is another site that provides information on the best credit card deals available, in addition to information on a variety of other bank-related rates, from checking account fees to ATM fees, plus consumer-oriented articles. Like the Card-Trak site, Bank Rate Monitor allows you to search for the credit card features that are most important to you, but in somewhat different categories than those found at Card-Trak, including:
- Best rate
- Best overall card
- Frequent flier points
- Lowest introductory rate
- Lowest rate after introductory rate expires
- Best platinum cards
- Best gold cards
- Rebates/rewards
- Secured credit cards
Search results include the name and location of the issuer, an 800 number, the interest rate, annual fee, and number of days before interest begins to accrue.
Applying for Credit Online
Not only can you thoroughly and quickly search through thousands of credit cards to find the one that best suits your needs, but some issuers allow you to apply for credit online. NextCard Visa, for instance, offers instant online credit approval and allows you to transfer existing balances from other cards with just a click of the mouse. The interest rate varies depending on your credit history, with the best rates being reserved for those with very clean credit. Be sure to check the rate being offered you before finalizing your application online. To qualify, you must be an Internet user, a resident of the US, at least 18 years old, and have a verifiable annual income of at least $15,000.
The Investor Guide site lists several other credit card companies that offer online credit application and approval.
Ordering Your Credit Report Online
If you're considering buying a home or car, or applying for a new credit card, it's a good idea to check your credit history first. Now you can order your credit history online from any of the three major credit reporting companies: Equifax, Trans Union, and Experian (TRW), for $9 plus tax. The Experian site also contains informative articles about the basics of credit reports, what lenders consider when granting you credit, risk scores, and your legal rights.
Risk scores are calculated by a program that reads your credit history file, assigns numerical values to certain information in the credit report, and uses these values to perform a series of mathematical calculations that result in a single number called a risk score (or credit score).
Using Online Credit Tools
Personal Finance Center offers several online tools to help you manage your debt, such as how interest rate changes will affect your balance, whether the lower rate is worth the annual fee, whether you should consolidate debts, and more.
Other helpful online tools include the Credit Card Payoff Calculator, which calculates what it will take to pay off your balance at your current interest rate, and Money.com's Debt Calculator, which tells you if you're in over your head by calculating the percentage of your take home pay that goes towards paying off debt.
Managing Your Credit Card Debt
Ideally, we would all pay off our credit card debt each month, but not all of us do. Here are some tips for managing your credit card debt: if you carry a balance, make sure it's on the lowest rate card you qualify for. If you have more than one credit card, pay the minimum amount on the cards with the lowest rates and apply as much of your monthly payments as possible to the card with the highest rate. Once the higher rate card is paid off, cancel it and start paying as much as you can on the remaining card with the highest rate. It's best to carry no more than one or two bank credit cards, a department store card, and a gasoline credit card. Having many credit cards may result in being turned down for credit when you really need it (when buying a new car or home, for instance), and will place credit inquiries and refusals in your credit history, which lenders frown on.
