Do all credit cards charge fees for international transactions?

When using credit cards outside of the U.S., a credit card user is likely to incur transaction fees for any purchases made while out of the country. Purchases made by cardholders in foreign countries can be subject to various transaction fees.

Unfortunately, there is no standard international transaction fee. The amounts of these foreign transaction fees vary between different credit card issuers. Also, as with many rates associated with credit cards, these fees are subject to change.

We recently published an article — Credit Cards And Foreign Transaction Fees — that discussed this topic in detail. Despite the overall fee variances between different credit card issuers, there are commonalities as to how these foreign transaction fees are charged. It can be helpful to understand the basics of how these fees are charged before inquiring with your current credit card company.

So, which credit card company currently has the lowest transaction fees for purchases made overseas? Finding the answer to this question takes a bit of research, but if you are planning to use your card overseas it is time well spent.

As of today (July 11, 2008) some Capital One credit cards do not charge a transaction fee for using your credit card for foreign currency transactions (read the official FAQ here). But rate policies with all credit card issuers are always subject to change, so be sure to read over the most current terms and conditions of a specific credit card offers before applying.

Do you have another question regarding the subtleties of credit cards or topics associated with using credit cards? Visit our credit card tips and advice center for tons of information presented in a simple question-and-answer format.

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What elements factor into the calculation of a credit score?

Your credit score is based on the various information that is present in your individual credit report. The score is based on the different categories, which vary amongst different scoring models. In addtition, how much weight each category holds in a specfic scoring model also varies.

However, there are a handful of core elements that most likely factor into any type of credit scoring model. These are important components to keep in mind when attempting to get a better understand of and/or improve your credit score.

Elements of your credit score include:
- Payment history
- Amounts owed
- New credit
- Types of credit used
- Length of credit history

A clean payment history without missed or late payments is something to strive for. In addition, paying attention to total amounts owed versus total available credit is recommended. It is generally a good idea to not utilize a large portion of your available credit if at all possible.

Closing accounts is a complicated topic. Closing an account can reduce your length of credit history and can also reduce the ratio of credit used versus credit available. But in some cases, closing an account can be beneficial. It is important to examine each account carefully to determine whether closing it or keeping it open is the right choice.

For more detailed information on the topic of credit scores and what factors into the credit scoring equation, be sure to read our recent article, How a Credit Score is Calculated.

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How do introductory APRs differ from regular, or ongoing, APRs?

When comparing different credit card offers, it is important to be aware of some of the common terminology that is used on credit card applications and in the terms and conditions of each credit card offer. Two terms that show up often are “introductory APR” and “regular APR,” which is also sometimes referred to as “ongoing APR.”

An introductory annual percentage rate (APR) is a temporary, low APR that lasts for a specified amount of time and is attached to a specified type of transaction. For example, a credit card may offer a 0% introductory APR on balance transfers for the first 6 months.

A regular, or ongoing, APR is a non-introductory interest rate that is applied to balances on a credit card. All balances attached to an introductory APR eventually become subject to the regular APR of the card once the intro period expires. Regular APRs are usually listed as either fixed or variable.

More information: What is the difference between an Introductory APR and a Regular APR?

Still have unanswered questions? Visit our credit card tips and advice center for detailed information about dozens of topics related to applying for and using credit cards. Make your next credit card decision a knowledgeable one.

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Pay off your credit card debt faster

Chances are that if you have credit card debt, your main goal is to pay off this credit card debt in its entirety as quickly as possible. Easier said than done, right? As with most personal finance matters, formulating a basic plan and strategy is one key to success. The plan can be altered if new needs arise, but it is almost always beneficial to try to follow a thought-out, structured path.

Our Credit Card Roll-down Calculator applies two principles to paying off your credit card debt:
- Pay off your highest interest rate first.
- When that balance is paid, move on to the next highest interest rate.

These principles are simple but the process can get a little more complicated once you factor in multiple credit cards, each with it’s own balance, interest rate and required minimum payment. This calculator can help to simplify the entire payoff process and help you to formulate a structured repayment plan.

Try it now: Credit Card Roll-Down Calculator

This calculator is one of more than 25 financial calculators available online for your use. Make you next personal finance decision a knowledgeable one. Fully understanding your current situation and analyzing your available options can lead to many benefits down the road.

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What is a balance transfer fee?

When transferring an existing balance from one credit card to another credit card, a balance transfer fee is sometimes charged at the time of the balance transfer transaction. This balance transfer fee is a separate charge and is not connected to the finance charges that you may incur on that balance in the coming months.

Not all credit cards issuers charge balance transfer fees. And those that do charge this type of fee often differ in the way that it is calculated. Some credit card base the fee on the total amount transferred (i.e. 3% of the total amount transferred) while other credit cards have a standing transfer fee (i.e. $25 for each transfer), regardless of the amount transferred.

Tip: What is a a balance transfer fee and when am I charged this fee?

Before conducting a balance transfer with an existing credit card account or signing up for a new credit card in order to transfer a balance, it is important to fully understand the terms and conditions of all card involved. Be aware of any balance transfer fees that may be involved beforehand, so as to avoid any surprises.

For more information about credit card balance transfers, visit our balance transfer tips and advice page. You can also analyze potential savings easily with our balance transfer calculator.

See also: Credit card offers with no balance transfer fee

Posted in Credit Cards, Personal Finance | Permalink

Home Budget Analysis Calculator

Managing your monthly budget can be a frustrating experience. And if you don’t currently have a monthly budget, creating one can be difficult and time consuming. Yes, these tasks can be difficult and frustrating, but they don’t have to be. Our home budget calculator can make budgeting a much easier process.

One of the most important aspects of controlling your home budget is to determine exactly where your money is being spent each and every month. The budget calculator can help you do just that and more.

By entering your income details and typical monthly expenditures, you can easily see where your money is being spent and you can also calculate how much money you may have left to save, on average, at the end of each month.

In addition, you can alter the net monthly pay amounts and other miscellaneous income that you currently receive or may receive in the future. Once this information is entered, you are able to view your income breakdown alongside your monthly expenditures breakdown.

This calculator is one of more than 25 financial calculators available on e-wisdom.com to help you save time and money. Make your next financial decision a knowledgeable one, visit our knowledge center for tips, advice, tools, resources and more.

Posted in Site Updates, Credit Cards, Loans, Miscellaneous, Insurance, Personal Finance | Permalink

The Fed Proposes New Restrictions for Credit Cards

The Federal Reserve, acting in conjunction with the National Credit Union Administration and the Office of Thrift Supervision, recently proposed new rules and restrictions that target what they consider to be “unfair” practices currently in use in the credit card industry.

Aspects targeted by the proposed rules include:
- The length of repayment periods
- The allocation of payments
- Methods for computing balances
- Reasons for adding new fees
- Reasons for increasing annual percentage rates

Full article: Government moves to rein in unfair credit card practices

Reaction to the proposals is mixed, as it remains to be seen how many of the proposed rules and restrictions will become a reality. The changes could be finalized by the end of the year, at which time it will be easier to predict how the typical credit card user will be affected.

Make your next financial decision a knowledgeable one. Be sure to utilize the tools and resources available in our knowledge center to stay on top of your personal finances. Analyze your credit card situation with our credit card calculators or visit our credit card tips and advice center for answers to common questions related to credit cards.

Posted in News, Credit Cards, Personal Finance | Permalink

Protect Your Identity with an ID Theft Prevention Service

We’ve all heard the reports about the growing threat of identity theft and fraud. If your personal information is compromised, any fraudulent financial activity that happens as a result can negatively affect your credit score and ability to borrow for years. Not many can deny that the threat of ID theft should be taken seriously. But when is it time to consider signing up for an identity theft protection or prevention service?

The answer to that question varies from person to person. If you feel that your personal information either is or was vulnerable in the recent past, the answer should be easy. On the other hand, if you don’t have reason to believe that your personal information has been compromised, the answer depends more on your overall comfort level and how closely you wish to monitor your personal financial situation.

One thing that is certain, however, is the fact that identity protection and prevention services are beginning to offer more and more useful products to help individuals actively monitor their credit and also protect themselves from potential fraud.

We recently compiled a list of ID theft protection services for comparison purposes. You can easily compare the various products and services offered by each company to find a good fit for your specific situation, whatever it may be at this point in time.

Compare identity theft protection and prevention services now

For more information about credit monitoring and identity theft protection, see about credit monitoring, which is a subtopic within our credit tips and advice area. And be sure to visit our knowledge center for more information about any topic found on e-wisdom.com.

Posted in Site Updates, Credit Cards, Loans, Miscellaneous, Personal Finance | Permalink

Updated Credit Card Comparison Chart

We recently updated our credit card comparison chart to a more detailed format that can help make the credit card comparison process much quicker and easier.

The new and improved comparison chart now allows you to sort the top 15 consumer credit card offers and the top eight business credit card offers by the following features:

Introductory APR on Purchases
Sort credit card offers by the introductory annual percentage rate (APR) associated with purchases made with the card.

Introductory APR on Balance Transfers
Sort card offers by the introductory annual percentage rate (APR) associated with balance transfers made with the card.

Regular (Ongoing) APR
Sort offers by the regular (ongoing) annual percentage rate (APR) that will apply to all purchases and balance transfers after the introductory period ends (if applicable).

Annual Fee
Sort by the annual fee associated with the card.

In addition to browsing the latest deals on comparison chart, you can also compare credit card offers by feature, by bank/issuer, or by credit rating. We provide multiple search options to help you find the card that best fits your individual needs.

If any questions arise in the search process, visit our knowledge center for helpful tips, advice, answers, resources and tools.

Posted in Site Updates, Credit Cards, Small Business, Personal Finance | Permalink

What does the lowering of interest rates mean for borrowers?

The Federal Reserve lowered interest rates once again on March 18, 2008. This marked the sixth time since September 2007 that interest rates have been lowered by the Fed. So, what does this mean for borrowers?

According to a Wall Street Journal Online article, the new, lower interest rates will only help with certain kinds of borrowing. According to the article, rates on many auto loans, credit card accounts and home equity lines of credit and adjustable rate mortgages have fallen. But borrowers looking for a new mortgage or looking to refinance a current mortgage may not see the benefits.

See full article: Why Only Some See Benefit From Fed’s Cuts

The article goes into great detail about different perspectives and strategies for homeowners who are either seeking a new mortgage loan or are looking to refine their current home loan situation. There are a lot of factors to consider before making any major financial decision right now, and understanding how the current interest rates affect your specific situation can be beneficial in many different ways.

Make your next financial decision a knowledgeable one. Learn more about any of our financial topics at our knowledge center and be sure to utilize our financial calculators to assess your current situation before deciding on your next move.

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