All About Credit Cards

The benefits of cash back credit cards are easy to see. You spend some money and then you get some of it back just for using your credit card. But, is it really that easy? Can this be something that just is a good choice to have? Sometimes, good things are out there. Other times, there are plenty of drawbacks. Yet, when it comes to cash back credit cards, there are more good than bad if you take the time to do your homework, use the card wisely and choose the best card available.

How They Work

The cash back credit card works in a number of ways. Just as there are the many different types of merchants and retailers that accept this type of card, there are just as many if not more differences among the credit cards themselves. If you are looking for the ideal opportunity, then you should carefully consider each of the available options and determine which fits the best.

The cash back card works quite simply. You spend your credit card funds any way that you would like to. As you use your credit card, you will find benefits along the way. Some retailers will provide for higher rewards than others. Or, you may have the ability to earn cash back on virtually any purchase. As you use your cash back credit card, you benefit by having some of the funds that you spend refunded to you. Yet, what is important to know is how that actually occurs.

Some cash back credit cards will reward you with a simple credit on your outstanding credit balance. Others will send you a certificate or some other form of rebate. Before you sign up for a cash back card, however, make sure that you understand how you will get your cash back. If the method in which they do this is not one that fits your needs, obviously, you should not bother with the offer. Yet, most cash back cards offer the rebates to be rewarded simply and easily to cardholders.

Another Consideration

The cash back credit card is like any other credit card in how it is set up. Therefore, when you are considering it, determine if, in fact, the value of the cash back reward that you get is inline with the cost of using the credit card. A higher interest rate or a higher annual fee really can negate the overall benefit of the card substantially and might even be more expensive to maintain than your existing cards. Therefore, it is up to you to investigate at least several offers and definitively decide which one seems to fit. In doing so, compare the interest rate, any fees that including annual fees, cash advance fees or over-the-limit fees, and be sure to weigh those costs against how much that you anticipate the rewards will pay you back.

A cash back card is, quite simply, an outstanding financial opportunity if used properly. It is more beneficial to individuals that use their credit cards judiciously (i.e., consistently paying off the monthly card balance) and have a good credit history as these things can help to lower the interest rate that you are paying. Yet, if you are to truly benefit from them, you should invest some time in comparing the options that you have in various card offers.

If you are looking at owning a new credit card then obviously 0 interest credit cards hold a lot of appeal for you. Anything with 0 interest does grab attention, for that matter! But in the name of 0 interest credit cards, there is a lot of subtle dodging that credit card companies are playing with,to ensure you catch the bait. The question is will you?

Admit it. You are hooked on the 0 APR credit card ad that you just saw in the morning newspaper,and your interest is piqued. Are these 0 interest credit cards a reality or are they just a myth?

The truth is, they are and they are not! They are for real because there are cards that live up to the promise to a certain degree, but the truth is also that this 0% interest does not last long. It might just be an initial gimmick to get you to apply and once you’re a cardholder, you will only have the 0 APR credit card for just a short time (3 months, 6 months, or if you’re very lucky 12 months) before they start charging you a higher rate of interest. Truly, this credit card game is an interesting one to watch, if you are the suffering player. Read on to know what you can do to make sure you are not the sufferer.

Understanding 0 APR Credit Cards

Admittedly, 0 APR credit cards hold a lot of enticement. But here’s what you’ve got to do when you find that a 0 APR card that has piqued your attention. Pay attention to how long the no-interest period will last, whether you can transfer other balances at the 0% rate, and, most important of all of these, what the APR rate will be when the offer ends! When you are done assessing these parameters you can properly finalize from the card options available.

The Luxuries of Owning a 0 APR Credit Card

If you’ve already accumulated a huge debt on your previous credit cards, there’s good news for you. A 0 APR credit card is known to benefit users with large outstanding card balances in a big way. Not only are these users able to cut down the amount of interest incurred upon their debt, but with the help of a 0 APR credit card they can also gain access to competitively priced cash advances, which can help consolidate outstanding high APR debt. There are fees and APR's attached to these cash advances, however.

Pitfalls of 0 Interest Credit Cards

*Most (in fact all) 0 interest credit cards offer 0% interest or no interest only for a limited amount of time, which varies between 6 to 12 months.

*If you’re thinking of transferring balances from high interest credit cards, some of these cards might not even allow you to do so during the introductory 0% offer period.

*Certain 0 APR credit cards might also charge expensive balance transfer fees.

*Some of these 0 interest credit cards also carry very high penalties for late payments and automatically switch you to a variable APR rate for a late payment.

*Certain 0 APR credit cards charge a very high interest rate after the introductory (read honeymoon) period expires.

Yes, the picture is definitely not all rosy, even though you can undoubtedly save money through the use of some 0 interest credit cards, not using them judiciously can be an expensive proposition. So choose and use them wisely.

posted by Medical Information @ 1:38 AM

Airline miles credits cards offer you the opportunity to fly and save money while you are doing it. If you are someone that flies quite a bit, there is no doubt that you have benefits here. If you are someone that seldom flies, the right airline credit cards can actually help you as well. To understand how they work in detail, you will need to compare the ptions in credit cards out there. Although they are all quite different, they have the same basic foundations.

What Airline Miles Credit Cards Provide

The benefit that airline credit cards have is that they can provide you with the ability to bank miles. Miles are literally flying miles. If you purchase an airline ticket today using the credit card, you are likely to bank miles for your next trip. After awhile of banking these miles, you may be able to accumulate a free trip or at least a discounted one. Someone that flies more often will obvious have more of an opportunity to achieve this. Yet, anyone that moves from place to place at least sometimes can use these credit cards to help them to save some money.

What To Know

First off, there is a wide variety of airline credit cards on the market. Each of these credit card companies offers a different annual percentage rate, annual fee, and credit limit, just like your standard credit card would. If you are looking to find an opportunity to save money here, which you should do, compare the various credit offers you have on these features. Determine which offers you the best overall cost on those airline purchases.

Secondly, there is more to the airline miles credit card than appears on the surface. Those aspects are the most important financially speaking, but from the stand point of the airline miles, there are more things for you to think about. For example, you should take note of how many miles you get per purchase. One credit card may provide a fraction higher amount than the other. On the same token, one provider may limit you considerably on when you can actually use your miles, how you can use them and on which airline or flights you select to use them on. This can be rather restricting and a waste of your time if you do not have the opportunity to benefit from this reward. It pays to spend an extra five minutes comparing these features.

If you do not fly very often, airline credit cards are obviously less beneficial. Nevertheless, they can be beneficial to infrequent travelers as well and are well worth the consideration in any case.

When it all comes down to it, airline miles credit cards are a rewarding option to have among credit card options. Some offer you the ability to bank miles for an indefinite period of time, so why not use them? Make sure that you determine which credit card is the best overall option for your particular needs, considering all other fees, interest rates and card features. Then, make sure that they fit your needs with respect to the mile rewards offered. When these two things coincide and you subsequently qualify for the card, you can benefit substantially from the very best airline miles credit cards.

Business credit cards are something that most business owners need to have. There are business trips and expenses to pay for. There are meals to cover and costs for rewards for good employees. To handle all of these needs, the right credit card should be in hand. Yet, if you are choosing credit cards simply based upon advertisements that you receive in the mail you may be missing out on some of the best card options out there. For large and small businesses, there are plenty of opportunities for success to consider with the right business credit card.

To gain the right benefits with these credit cards, you do need to consider all that they can offer you. Each and every one of them is quite different. To help you to sort through all of the benefits, take into consideration your needs as well as your needs when considering how to beef up the strength of your credit standing. Here are some tips to help you in your search:

* Determine flexibility in spending -- In many business credit card accounts, the goal is to have an open spending limit so that you and your employees can have the available credit necessary without worrying about hitting an over limit. Take some time to consider what opportunities either a charge card or a credit card can provide in terms of their charging limitations.

* Determine the Ongoing APR -- Even though this is a business credit card, you still should pay some attention to the APR that is being offered to you. In many cases, the slightest difference either way can make a huge difference if the balance is not paid for in full each month. Taking the time necessary to determine which card has the best ongoing APR is very important for your long-term success.

* Multiple Card Option -- Having the ability to give your employees the credit cards they need is also important. It is likely that you will want all of these cards managed under one plan. Yet, you may want to put restrictions on how much credit will be extended to each individual employee. That being the case, special consideration should be given to the card options that provide flexibility with multiple cards and customizable credit limits for individual employees.

* Fraud Protection -- Something that is being offered most card issuers is fraud protection. If someone should use a credit card in your name without your authorization, simply report the disputed charge and they will mark the disputed charges for further investigation, offering significant protection against fraudulent use.

* Access to Credit -- In the case of a small business, the right business credit cards will provide you with access to additional credit, and in some cases, substantial additional credit. Take some time to determine what it is that you need then apply for a credit card to help in making that happen. In many cases, these credit cards actually provide the means for getting over hurdles.

Business credit cards, like any credit card, should never be chosen without careful consideration. If you are looking for a means to securing the funds that you need to make things happen in your company, then consider this tool. You are sure to find several business credit card opportunities to call on to help you to do just that.

For a student, it can be difficult to get a credit card that saves money on gas. The best credit cards require a minimum annual income. The average college student does not have the time for classes and a job. Those who do work after class still do not earn enough to qualify for most rewards credit cards. A student usually only qualifies for basic credit card. For a student who drives there are some student gas credit cards available.

Citi Upromise Card - save 2% at Exxon & Mobil Gas Stations

The Citi Upromise Card is the number one rewards card for college savings as rated by CNN/Money. This credit card can earn you cash back on every purchase. There are tens of thousands of stores that you can save at. As a Upromise member, you can open a Upromise College Fund savings plan through Upromise Investments by saving as little as $50 a month (that’s less than $2 a day). Friends of families can automatically contribute to the college savings when they use their credit card.

•College savings on purchases, everywhere you shop!
•Plus 10% EXTRA college savings on 7000+ grocery and drug store items
•0% APR on balance transfers for 12 months
•No annual fee

The Citi Upromise Card earns 2% cash back at Exxon and Mobil gas stations, plus 1% on all other purchases. When you use this credit card at select stores, you also earn additional cash back. Best of all, there is no limit to how much you can save. Excellent credit is required.

Citi Driver's Edge Card for College Students - 3% Cash Back on Gas

Another great rewards credit card is the Citi Driver's Edge Card for College Students. This student credit card earns 3% cash back at supermarkets, drug stores and gas stations. On other purchases, you earn 1% rebates. You can also earn Drive Rebates based on how many miles you drive. For driving 10,000 miles, you can earn $100 in rebates. Here are some other features:

•0% APR for 6 months on purchases, cash advances, and balance transfers
•Earn rebates towards any car, new or used
•Build your credit history
•Free online account management
•$0 liability on unauthorized purchases
•No annual fee

There is an annual limit for the rebates you can earn. Each year you can earn up to $1000 in rebates. It is easy to qualify for the Citi Driver's Edge for College Students. They do not ask for a minimum annual income or a co-signer.

Discover Student Clear Card - 5% on 'Get More' purchases

The Discover Student Clear Card offers up to 5% cash back on select purchases such as gas stations, restaurants, book stores, theaters, clothing stores and more. Plus get 1% cash back on other purchases. There is no limit to how much cash you can earn each year. Turn your rebates into gift certificates at select stores and double your cash back. They do ask for your employment information. So you may get declined if you are not currently employeed.

•0% Intro APR on Purchases for 6 Months
•No Annual Fee
•Easiest Online Account Management Options
•Full 5% Cashback Bonus® on Get More Program purchases throughout the year
•Up to 1% Cashback Bonus® on all your other purchases
•Build Your Credit History
•Unlimited cash rewards that never expire as long as you use your Card.
•DOUBLE your Cashback Bonus® (turn $20 into $40) when you redeem for gift cards or certificates from many of our 60 brand name partners

A drawback of the Discover Student Clear Card is that throughout the year you can only earn 5% cash back on certain category purchases. Four times a year these categories change. So you might only get 5% cash back at gas stations for part of each year. If your shopping habits vary, this could work to your advantage.

Student Gas Credit Card Comparison Results

If you have excellent credit, the Citi Upromise Card would be the best choice as it offers the most savings. If you have a job but do not have sufficient credit for the Upromise Card, the Discover Student Clear Card can earn you high cash back rates. It is at the cost of a rotating rewards program. For students without a job, the Citi Driver's Edge for College Students might be right for you. It is easy to qualify for and still earns rebates everywhere you shop. Any of these credit cards would be a great way for a student to save money.

Balance transfer credit cards are an appealing aspect of the credit card business. They allow many people to find just what they need in getting a lower interest rate. On top of that, they allow for some of the best choices when it comes to lowering your debt to credit ratio. In short, if you choose these credit cards wisely, they can work very effectively for prospective cardholders. If a balance transfer is right for you, take the time necessary to determine what the right move is.

Learning If It’s Right For You

Balance transfers can be beneficial to virtually anyone that has a balance on a credit card that is costing them money in finance charges. If you can apply for and get a lower interest rate on a credit card, then it could be a plus to consider it. This would mean that you could move your existing credit card balance to that one and end up paying much less on the card balance that you currently owe.

Another time that it can be beneficial to you to use balance transfer credit cards is when and if you select to get rid of some of your highly costly debt to keep yourself out of collections. To use this method, you should consider what you will do after the balance transfer happens. If you can invest some time in getting this new account open and restarting your credit with them, you may be able to get a lower interest rate, get a larger credit limit and improve your credit score as well. But, you can get into real trouble if and when you do not cancel or stop using the first credit card. If you continue to use the card with the large balance on it, you could find yourself in serious trouble overall.How To Get Balance Transfer Credit Cards

If you are looking to benefit from the prospect of balance transfers, you will, of course, need to find and apply for these credit cards. In most cases, virtually any credit card you apply for can be used as a balance transfer credit card. During your application process, the company will ask if you would like to use their credit card for this need. If so, then they will instruct you on how to do so right then and there. It can be that simple.

Yet, it does take some time and concentration to make it happen. To get a good quality balance transfer credit card, you should invest some time researching the best available opportunities. Luckily, you can easily do this right on the web. Take some time to look at several offers as they are all likely to be a bit different. Of course, you will also need to qualify for the credit cards in order to use this service. Here, they will likely look at your credit score and your income range to determine this need. Telling them up front that you would like to use balance transfers can be a great way to entice them into approving you for the amount that you need.

When it comes down to it, balance transfer credit cards allow people to find solutions to debt problems that they didn’t have before. If used properly, these credit cards can save a person signficiantly over time. Yet, it is necessary to find the best product at the best price for that to become a reality.

For a period of almost four years, your author worked as a mortgage adviser in the UK. As you might imagine, over time all sorts of people walk through the office door.

However, there was one phenomenon that never ceased to amaze me or my colleagues and it is surprisingly common. This amazing sight?

Simply the number of people who treat their significant other poorly when it comes to money and debts.

Here is a typical scenario... A female wishes to buy a house. She has been renting or currently lives with her parents and needs to change. However, she is paying a debt each month, usually on a credit card, for a few thousand. Whilst discussing her income and expenditures, she mentions the card and that it was to pay for something (often a holiday but sometimes a rental deposit, car purchase, etc) for an ex boyfriend.

The ex boyfriend has either refused to pay anything or his share of the debt. Sometimes, he even refuses to admit that the debt exists. Fir the girl, it is easier and less painful to just put it all behind her and pay it herself.

At first, I used to think that it was just that the lady was having difficulty getting over the relationship and some poor treatment. However, as time passed and I saw this situation, or some variant, again and again, I started to realise that it probably was the ex.

What causes it, who can say? Perhaps it is purely selfish, or acts of desperation. Whatever is to blame, it certainly speaks volumes about the relationship and the person involved.

It always amazed me and my colleagues how someone, usually a man, could have such little regard or respect for a person that they had dated and obviously been close to. Of course, the post divorce finances of many are far worse. But marriage is meant to be a full partnership, till death do us part. It almost seems that some relationships are 'till debt do us part'.

Giving advice on such a delicate matter is often difficult. How do you tell someone not to spend money or help someone that they obviously love or care for? Whatever advice is given will seem mean spirited and negative. Yet, unfortunately, that is sometimes what is required. Suggesting that they 'dump' the other half is hardly likely to win you any friends!

Unfortunately, it seems that there is a small part of the population who is amoral when it comes to money and responsibility. The vast majority of us, if we owe money will work and pay it off. We are responsible and honest and keep our end of a deal.

Being categorized under bad credit due to inevitable circumstances lands you in serious trouble .It further perforates that you are an intentional defaulter which restricts the banks from providing loan .Being confronted by some unwanted situations such as late payments, CCJ’S etc you are termed as defaulter. Though these problems are highly avoidable in nature they invite high interest rates and stringent options. Thus to fulfill your dreams and to fulfill your desires you must go for bad credit secured loan.

With continuous increase in such masses it’s no longer a common scene. So giving it a separate status bad credit secured loans are being offered at low interest rates convenient to borrower. But the mandatory part is that loans are being secured against Collateral.

Bad credit secured loans –prerequisite

To get bad credit secured loan borrowers have to put their property as collateral against the loan amount .For availing apt bad credit secured loan a small market survey is essential. Surfing various websites and collecting information’s about the best loans offered gives you a better idea. Bad credit secured loans being one of the most flexible loans of the UK finance world provides loans in various cases such as- if a person is self employed or insolvent or is being declared or have received individual voluntary judgments. Also people with country court judgments or who have failed to pay arrears on mortgage or loans are being considered.

Bad credit secured loans –advantages

Since the lenders find it risky to give loans to bad creditor and hence chances of approval become higher as the number of lenders are high who attract customers to make huge profit. Since they don’t hold any prejudice against people they offer people loans at much attractive rates. Moreover customers have the opportunity to decide the monthly repayments with advices from experts. To get the best out of the lenders and financial institutions have their representatives available to clear your doubts. Though interest rates are high but still competitive with flexibility in repayment options. By just filling of a form online you can apply for it .You can improve your credit score which will also put positive impact on the lenders in case you require another loan in future.

Bad credit secured loans-features

Your financial status and collateral value must convince the lender that you have the caliber to pay the loan back. You need to submit income tax return, bank statements stress on credit checks you can borrow amount £5000 to £100000 with repayment period of 5-25 years. Generally the rates vary from 7.9% variable APR to 19.9% variable APR. A lender to compensate for the guarantee charges a high rate of interest and is reluctant to give loan to bad credit. Though this thought is no more prevalent as being untapped for a large time, moreover customers are willing to offer a high rate of interest. After taking your credit rating in account it offers you loan.

You must be very sure of paying your payments regularly otherwise your possession will be seized. Going for small amounts and offering high value collateral is a good option. While repaying loan you get loan approved by co-signers credentials. If you are having a good valued property, use it to improve bad credit score.

The amount of air travelers is growing every year. As this trend continues there is growing interest in airlines to earn the business and trust of these travelers. Most airlines today offer some type of frequent flyer benefits.

American express and Southwest Airlines were the first companies to offer such packages. Customer loyalty was rewarded with free trips after a threshold of flight miles were logged and use of the American Express credit card counted also.

Today there are lots of choices of banking institutions from which you can obtain frequent flyer type benefits. With the growing number of banks offering these rewards, many have diversified into different types of programs and offers. The frequent flyer model has morphed into an array of ways you can use your benefits. This diversity allows us to better fit the rewards programs to our own lifestyle.

Programs that are available today range from gas stations, drugstores, supermarkets, department stores and of course the airlines themselves. The cards today can also be used at ATM all over the world to access cash when it is needed.

If you are willing to do your home work you can really benefit greatly from the use of these cards. The key is to find cards with rewards that fit your personal lifestyle.

The internet has ushered in a period that has the credit card industry fiercely competitive now. Card companies are fighting to not only gain new customers but also trying to maintain their existing customer base. This high demand market has caused the consumers to be put in a very strong position. As these companies are trying to entice anyone possible to apply for their credit card, the offers keep getting better.

Some of the offers that can be had are waived annual fees. Card companies are also offering different reward programs. Rewards can be airline miles, shopping points, free gas promotions, mileage points, cash back and several others. One great promotion is the ATT Universal Credit Card that has 0% APR on balance transfers.

Before you start applying for cards you should research your options closely. By matching the reward offers to your lifestyle you will reap the greatest benefits possible. In the past this was a tedious task that involved speaking with many banks to compile a list. The internet has completely changed that. You can now do research in one evening at home that would possibly taken weeks before.

When doing your comparisons be sure you are comparing apples to apples. You can find comparison sites that have already been filled in for you that will allow you to see the benefits of Credit cards at a glance. You should not only use one site for this comparison, but instead get an average rating from several sites.

Choosing a credit card is not a simple task. You need to consider what you are going to use the credit card for and only then you’ll be able to make up your mind. A credit card is a complex financial contract that provides the applicant with several different services you but not all of them have to necessarily be used.

Rate or Fees?

If you plan to pay off the balance each month and thus won't incur in any finance charges, a low interest rate is less important than finding a card with no annual fee, no or small transaction fees and any rewards program that you can use to your advantage (miles if you travel a lot, gas if you use your car often, etc.)

If you’ll carry part of the balance to the next month or you need to finance purchases due to not having a steady income, a long grace period, a low interest rate and a balance calculation method that minimizes your finance charges is what you need. There are many credit cards that offer this kind of services, you just need to look for them.

Reducing Costs

All credit cards will cost you money to use, but depending on the terms and conditions, some are more expensive than others. When considering a credit card offer, check these factors:

It's important to know how an interest rate is calculated. A fixed rate will stay the same over time, but a variable interest will rise with the prime rate. It can be low today but rise every month. Be sure to determine what the interest rates are for different charges, such as balance transfers, cash advances and purchases.

You’ll also need to understand how the outstanding balance is calculated to determine the finance charge. Make sure to know how many days in the billing cycle you have to pay off the balance before you are hit with a finance charge. This varies from one credit card to another and can really make a difference.

Some cards charge an annual fee, which you may or may not be willing to pay. If the card has a lower interest than other others, it may be worth it. Otherwise, try to get the credit card with the lowest annual fee or no annual fee at all if possible. It makes no sense paying for something that you can get for free.

Even if you always pay your bills on time, be sure to find out about the card's late fees, over-limit fees and any other penalties you may incur when using the card. You never know what may happen in the future and such fees can raise your debt significantly if they are too excessive. Be sure to read the fine print. Credit card companies must disclose interest rates and fees, but some fees are buried deep in your user agreement.

Interest-only home equity loans are second mortgages that you pay only interest for the first 3, 5, or 10 years of the loan, significantly lowering mortgage payments during the first few years. Home equity lines of credit have been increasing in popularity because the mortgage lender only requires the borrower to make an interest only payment that tends to be less than the standard principal and interest payment.

Interest-only second mortgage loans:

• Increased cash flow with reduced mortgage payments during the first few years than conventional mortgages, because initially you're only paying interest.

• Increased purchase power to buy a higher-priced home than you could otherwise afford.

• Can help you in an emergency.

• Lower monthly payments with debt consolidation.

• Enable you to access funds for investing in a rising real estate market.

Interest only equity loans are not just for purchase loans. Many people refinance with interest-only loans to lower payments and consolidate debt.. There are also several varieties of interest-only home equity loans or second mortgages. These work in a similar way as those offered for first mortgages, including lower payments for affordability during the first few years of the loan.

Interest-only loans can be good for people whose income is sporadic, either because they are self-employed, are paid on commission or because they receive annual bonuses. This allows them to pay only interest during lean months, and make higher payments against the principal later on when they get their bonuses or commissions.

"These loans can be of value for people who want to save or invest the money they would have paid in principal," said Keith Gumbinger, vice president of HSH Associates, a publisher of loan information in Butler, N.J. Thus, interest-only loans also make sense for investors who invest the money they save into their stock portfolios. Additionally, they could work well for real estate speculators who buy property only to sell it later on when the property appreciates in value.

According to Brendon Daly, of BD Nationwide, "there is usually no prepayment penalty on interest-only loans, but look out for early termination fees."

In short, interest-only loans are for those who are more interested in freeing up immediate cash flow than in building equity in the home.

When you go to a gas station, you have two choices. You can either walk up and hand the teller some cash or you can use a credit card. Besides just the convenience of using a credit card and being able to get out of there much faster, a credit card can actually save you a lot of money!

Most cash back or rewards credit cards, especially those that are linked to gas companies will actually give you 5% back on whatever money you spend with them on gas. So, yes, if you bought that same gas with cash, you would be spending 5% more.

Let me just put it this way, would you save spend $100 for something of $105. Of course you would chose the lower number.

Let's just, for a second, assume that you spend about $50 a week on gas (given the way the prices are raising, most spend even more)! This means that you are spending about $200 a month and $2,400 a year.

Well, if all you do is charge that gas to a credit card and delay paying it until the end of the month with 1 easy payment, you can instantly save $120/year.

It may not seem like a lot of money right now, but think about it:

- All you have to do is switch the method of payment.
- Credit card payment is actually easier
- Credit card payment is faster
- And, credit card payments help you build your credit score (as long as you make the payments on time).

But here's the kick! Most of these same cards will not only give you 5% on gas, but also on other places like groceries. The rest of the places they give you 1% back.

So, all you need to do is switch your method of payment and you can instantly start saving money on everything you buy, no matter what. Just make sure to stay within reason when you are using your credit card and only charge that that you know you can easily pay off.

ENTREPRENEURS HAIL FROM HUNDREDS of disparate cities, industries and backgrounds, but one thing they have in common is an appreciation for plastic. Paying by credit card is convenient, it allows business owners to maximize their cash flow, and it offers the accumulation of rewards or points that can add up to thousands in free services each year. For regularly recurring bills, however, nothing beats the convenience of automatic bill payment, the kind typically offered online through consumer and business checking accounts.

Now, paying recurring bills automatically by credit card, which offers the best of both worlds, is catching on big with small businesses. Over the past two years, New York City-based American Express has seen its charge volume for automatic bill pay for small-business customers grow by 30 percent per year, says Karen Rosenberg, vice president of OPEN from American Express, the company's small-business trait. She sees it as a way to replace check-writing, with added benefits. "It helps [business owners] consolidate spending on the card and lets them better track and manage cash flow," she says.

American Express and its rivals, MasterCard and Visa, have all developed sophisticated online reporting tools to enable users to keep track of expenses and slice and dice them for budget purposes. Looking at a monthly or quarterly statement, business owners can see how much they're spending on utilities or subscriptions, or on overnight deliveries, says Doreen Amano, vice president of global product development at MasterCard International in Purchase, New York. "That can potentially help with negotiation with vendors when it comes to rate reduction," she notes.

For Ava Seavey, president of Avalanche Creative Services, an advertising firm based in New York City, convenience and the consolidation of expenses were key reasons to sign up for automated bill payment with half a dozen recurring vendors. Seavey's company employs only four full-time people but boasts several high-profile clients, and she only has part-time financial help from her controller and bookkeeper. "So anything I can do to save my time is worthwhile," says Seavey, who uses American Express for most business expenses. "I find that this minimizes the paperwork. Time is money, and writing checks costs money."

Then again, credit can cost money, too, if balances are allowed to slide. One finance charge or late penalty can erase a month's benefits of card use, so it's only worth doing if the balance is paid in full each month. In an effort to minimize debt, many entrepreneurs are turning to debit or check cards instead, which offer a lot of the same benefits.

"There's an overall concern about accumulated debt among small-business owners," says Diana Knox, senior vice president of Visa USA in San Francisco. She notes that business credit spending is up, but Visa has seen both business credit and debit growing by double digits over the past few years. Business owners can sign up for automatic bill pay with Visa and earn points or rewards through the Visa check card, just as they would with a credit card. And through its online reporting tool, Visa Information Source Select, launched this past summer, entrepreneurs can view all their credit and signature-based debit transaction information in one place.

As the technology barriers to e-commerce fall, more and more small businesses are looking to take their sales online, eager to tap into a pool of online consumers that IDS projects will reach 128 million by 2002. E-commerce application and hosting service providers make it relatively simple and inexpensive for Web-enabled businesses to turn their home pages into full-fledged online stores, opening up the e-commerce arena to even the smallest businesses. However, there's a hidden danger that many newly minted e-business owners fail to take into consideration: the problem of credit card fraud.

While conventional wisdom holds that merchant fraud is the main form of credit card abuse, the reality in the e-commerce world is that the merchants are far more frequently the ones defrauded, whether through credit card theft or so-called "friendly fraud," in which customers dispute the charges but nevertheless keep the merchandise. A survey conducted by the Gartner Group this year of major online retailers has shown an average of 2.64 percent of Internet transactions are charged back, compared with 1.24 percent among bricks-and-mortar retailers. Gartner research also shows that credit card fraud is at least 10 times as prevalent online as in the physical world, accounting for 1 percent of all e-commerce transactions.

The issue may not even occur to many business owners as a potential problem. After all, in the world of the physical store-front, credit card companies typically shoulder the risk in the case of fraudulent or disputed charges. So long as the merchant can provide a receipt with a customer signature, that merchant cannot be held responsible for charges that have been approved by the card issuer.

In the online world, things are very different. Merchants are frequently surprised to discover that they are held responsible for the entire cost of charge-backs, whether due to disputed charges, credit card theft, or any other cause. This is because, more often than not in a disputed online transaction, the merchant cannot produce a customer signature, and thus cannot definitively prove that the goods or services were provided to the customer. Merchants may also be liable for "investigation" fees to the credit card company that can amount to $25,000 a month if their charge-backs are consistently over a pre-defined percentage, which in many cases is as low as 1 percent. Merchants with high charge-back rates also risk having their accounts shut down entirely.

Since as many as 98 percent of e-commerce transactions are currently conducted via credit card, online retailers have no choice but to expose themselves to these risks if they want to succeed. Other payment options, such as Internet cash, e-checks, and other mechanisms have not achieved anything like the prevalence they would need to offer a viable alternative, and, in any case, credit card transactions are preferable to other methods of payment because they provide better customer information and instant approval.

Unfortunately, no simple technology solution to the problem of card-not-present credit card transactions is on the horizon, but credit card companies have made some efforts to enhance security. Visa/MasterCard offered a scheme called security-embedded transactions (SET) two years ago, but the program proved too complicated to administer, requiring customers to download software and certificates. American Express recently debuted a feature that allows customers to create one-time-use credit card numbers. And Visa/MasterCard has begun adding a three-digit number to the back of a credit card (called CVV2) that can offer an additional level of proof-of-ownership. The problem is that customers have little incentive to participate in these programs since they're indemnified against losses by the credit card companies anyway. And neither credit card companies nor merchants are interested in making life more difficult for the online consumer.

At present, the only effective method for merchants to reduce their exposure to charge-backs is by taking steps to control fraud prior to processing the transaction. Fortunately, there are some common-sense techniques that have proven effective in significantly reducing charge-backs:

1. Employ Real-Time Processing: Small businesses typically pay significantly higher fees (as much as 66 percent higher than for physical transactions) for the ability to process card-not-present transactions; nevertheless, real-time processing is invaluable, not only for making the customer happy but also for reducing fraud. Real-time authorization from a clearinghouse such as FDR provides a first line of defense against credit card fraud, instantly notifying the merchant in the case of a stolen card or credit problem.

SOME $36 billion is likely to be spent at Web "e-tail" stores this year, up 145 percent from 1998. That estimate comes from shop.org, a trade association for online retailers.

Stressed-out workers are learning the value of e-shopping during their lunch breaks, or at midnight from their computer at home. And for the first time, you're seeing an explosion of Internet credit cards.

"Some of the very best and very worst cards are now offered on the Web," says Robert McKinley, president of CardWeb, a credit-card tracking service (www.cardWeb.com)

With a Web card, you apply online, get statements electronically or by mail, monitor your account online and pay by computer, too. Old-fashioned folk can still opt to pay by check.

For people seeking more credit this Christmas, the special appeal of Web cards is their speed. You give the same information you would in a mailed application. Approval (assuming you qualify) might come in just half a minute. From that moment, you can make purchases online.

At Citibank, however, plastic has become uncool. Instead, Citibank is offering ClickCredit, a virtual card (www.clickcredit.com). It works like a credit card but exists only in Citi's computer. You use it solely for making purchases on the Web.

ClickCredit offers the usual credit-card bells and whistles, such as frequent-flier miles or cash-back rewards for frequent shoppers. The most desirable customers pay no annual fee and a 9.9 percent variable interest rate on unpaid balances. (Poorer credit risks pay 18.55 percent and perhaps a $50 annual fee.)

Here are McKinley's two favorite cards on the Web, plus the low rates they offer their better customers. Each has an introductory program, with low or zero rates for the first few months. Neither charges an annual fee.

(Who's a "better customer?" People who make payments on time and carry unpaid balances, or at least use their cards a lot. If you don't qualify, these issuers will charge you more.)

Wingspan Platinum Visa (www.wingspan.com) is issued by BankOne at a fixed 9.99 percent. With Wingspan, you get 5 percent off the cost of online purchases from 28 merchants.

NextCard Visa (www.nextcard.com) is issued by NextBank. You apply for a standard card with a fixed 15.9 percent rate. Once approved, you could be offered a rate as low as 9.9 percent, depending on your credit profile.

"That's fuzzy pricing," McKinley concedes, but he likes NextCard's rich rewards program. You get more frequent-flier miles per dollar spent than on any other card. But to get them free, you have to carry unpaid balances.

When checking a card's Web site, always click on the phrase "terms and conditions," to see what else the issuer may charge. For example, both of these cards punish people who pay late, pay less than the minimum or go over their credit limit.

Transgressors lose their low fixed rates. NextCard currently charges as much as 23.2 percent on unpaid balances, for those who pay less than the minimum. Wingspan goes to 22.99 percent for certain late payers.

Web credit cards provide the same fraud protection you'd get from any other credit card. Officially, you're liable for the first $50 in fraudulent charges. Most issuers, however, cover even that.

As for the bad apples, McKinley names three: Future Card Visa, First National Credit Card Visa and Global 1 Visa or MasterCard. They charge big fees up-front, substantial monthly fees and high interest rates.

Global 1, for example, charges $348 in setup fees, against a minimum credit limit of just $375 - which wouldn't leave you much to spend. First National charges $169, against a credit limit as small as $250. Even if your limit is higher, you're starting out in debt to the bank.

Global and Future didn't return calls. First National's Molly Fleming calls high fees the natural result of accepting people with poor credit.

Please, if you have poor credit, skip these cheesy offers and use a secured card, instead. With secured cards, you also pay money up-front, but it goes into your own interest-paying savings account. The bank taps that money only if you don't pay your bills.