Given all the turmoil in the credit card market this year, finding the best credit card applications has become a significantly more difficult process.  For starters, many credit card companies have shortened 0% interest rate periods and, despite an historically low Prime Rate, continue to increase long term interest rates.  Because of these two factors, it is more important than ever to closely look at the terms offered on any credit card applications you are considering.

The most important factor to look at is the long term interest rate.  (more…)

After months of 0% rate decreases and interest rate increases, major credit card companies are beginning to advertise good credit card offers again.  For many of us, its hard to trust any credit card company.  Loyal customers of 20 or more years recently saw their Citibank interest rates increased to 29.99% and just about everyone has endured a credit limit decrease or interest rate increase over the past twelve months.

Fortunately, credit card companies are looking to replace the customers they chased away with rate hikes and credit limit cuts and replace them with new customers.  Unfortunately, getting approved for the best credit card offers will require much better credit than it did a year ago.  Nevertheless, consumers seeking to take advantage of 0% APR credit card offers will find more than a few credit cards offering these rates on purchases and balance transfers for up to 12 months. (more…)

A recent post on high limit credit cards has led to a lot of questions, so we though a clarification would be helpful.  As stated in the original article, no company we are aware of offers even the slightest insight into what your credit limit will be until you have submitted a credit card application.  Whether you apply online or by phone, the situation is the same.  We called three major credit card companies and asked if an estimate of credit limit could be given.  The response was the same from every company:  no.

If you’re looking for a credit card that offers a high credit limit, your search may not be as easy as it seems.  While many credit cards advertise credit limits of up to $25,000, the actual credit limit you receive will vary based on a number of factors, none of which will be made known to you. 

Determining credit limits is an internal process that varies substantially from one credit card company to another.  In fact, the only thing credit card companies have in common when it comes to determining credit limits is that none of them can provide you with as little as an estimate of your limit until you have submitted a completed application.

In a nutshell, this means that you will not find out your credit limit until your application is processed and approved.  This can take anywhere from a few business days to a few weeks, based on the issuer, your credit, and a multitude of other factors.

Finding a credit card with a high limit is a lot like playing three card monty.  You select a card and wait to see if its the right one.  However, there are steps you can take to get the credit limit you desire.

First, apply for credit cards that advertise high credit limits.  (We have made a list of these high limit credit offers at Smart Credit Choices for easy review.)

Second, consider applying for more than one credit card.  This strategy provides a number of benefits.  First, it can provide you a combined credit limit that meets your needs.  Second, it increases the chances of a credit card showing up in your mailbox quickly.  Most importantly, however, it gives you the option of reviewing the final offers of multiple credit cards and using the one that works best for you.

For more information, please visit the high limit credit card section of SmartCreditChoices.com$

There are a number of ways to pay taxes with a credit card.  However, there are two expensive consequences of doing this.  Here, we will explore the hidden fees attached to paying taxes with a credit card.  At the end of this article, there will be a list of 0% APR cash advance credit cards that can help you save hundreds of dollars if you choose to pay your taxes with a credit card.

THE PROBLEM:  The most straightforward hidden fee you will incur by paying your taxes by credit card is a 3% cash advance fee.  This fee, which has no dollar limit, will cost you $30 for every $1000 you pay in taxes.  Unfortunately, there is no way around this fee.  All credit cards charge a 3% cash advance fee.  It is, however, important to keep this in mind.

Now, the complicated part.  As someone who has spent way too much of his life reading credit card fine print, I consider myself privvy to all of the nasty tricks credit card companies play.  And the trick I am about to explain is by far the worst.  Here’s the basic deal:  all payments you make to your credit card apply to the balance with the lowest interest rate.  So let’s say you have a $3000 balance on your credit card from purchases being charged a 12% interest rate and you take a $3000 cash advance.  A typical cash advance interest rate is between 22% to 27%.  Therefore, if you send in $3000 to pay your bill, you will pay off the low rate balance and be stuck paying 20% interest on the cash advance you took to pay your taxes.

The Solution:  While the number of these offers is limited, there are a handful of credit cards that offer a 0% interest rate on cash advances.  This rate lasts for up to 1 year.  With a 0% APR cash advance credit card, you can easily save over $600 on interest, plus prevent the headache that comes from using your previous credit card.

Here are credit cards that currently offer 0% Cash Advances:

1. Bank of America Cash Rewards Platinum Plus® MasterCard® Credit Card
2. Bank of America World MasterCard® with WorldPoints^TM
3. Bank of America Visa Signature® WorldPoints^TM Rewards

If you’ve already used a credit card for a cash advance and are paying astronomical cash advance interest rates, you may want to consider a credit card that offers 0% APR balance transfers.  With one of these credit cards, you can also save hundreds of dollars on interest.  You can compare all balance transfer credit cards in the balance transfers section of Smart Credit Choices.  Also, below is a list of the top three offers:

1. Discover® More Card
2. Citi® Professional^SM Cash Card
3. Bank of America® Platinum Plus® Visa® Card
4. Chase Free Cash Rewards^SM Visa® Card