Consumer Retail Debt

Looking for a Credit Card for Christmas Shopping? Before you submit a credit card application, first review the main points which will help you choose the right credit card for your needs.

What Charges You'll Make - If you're going to use the credit card mainly for booking airline reservations and hotels, it might be best for you to get a travel credit card that offers sky miles and hotel points or cashback. If this will be an emergency credit card only, then your main concern may be for a low interest rate credit card with low fees.

When You'll Repay Charges - Will you pay off credit card charges in full every month, or will you carry a balance month to month? If you're going to carry a balance, you want the lowest possible interest rate as well as a low introductory rate. But if you'll payoff balances in full every month, then interest rate really doesn't matter so no annual fee and/or a long grace period would be a bigger concern. If you're going to carry a balance, be concerned about how the finance charge is calculated. The most common method is the Average Daily Balance, which means that the daily balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that compute the balance using two billing cycles, as this method costs more money in financing fees.

What Amount You'll Charge - If you're going to use the credit card for all your monthly expenses, then you need a card that has a high credit limit and a high cashback percentage.

More info about Interest Rates, Credit Limits, Incentives, Fees and Penalties

Interest Rates - The interest rate (Annual Percentage Rate) APR can either be a fixed rate or a variable rate that is tied to another financial indicator, most commonly the prime rate. With a fixed rate credit card you know what the interest rate will be every month, whereas a card with a variable rate can fluctuate. Of course, even the interest of a fixed rate card can change based on certain events, such as paying your credit card bill late, exceeding your limit, or simply because the credit card issuer decides to change it after providing you ample advance notice.

Credit Limit - This is the amount of money the credit card company will let you charge to the card. This amount varies depending upon the card offer and your credit history. Be sure to get a credit card with an ample limit, because getting close to your max can hurt your credit score. Just remember that you don't have to max out your limit just because it's available.

Incentives - To compete for and to gain customers, many credit card companies offer rewards. Even if you normally use cash, why not use your credit card and then use the cash to make the payment during the grace period? You still won't pay interest and meanwhile you'll rack-up rewards. A credit card with 5% cashback will earn you $5 for every $100 charged. If your total bills come to $2,000 per month, you'll earn a free $100 every month. Look for a rewards program that you'll use and which offers flexibility, such as cashback or travel.

Fees and Penalties - Compare common charges such as late fees, overlimit fees, balance transfers, cash advances, and for making payments by telephone. Regarding balance transfers, look for credit card offers with no transaction fees and zero percent interest for at least 12 months.

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Consumer Retail Debt

By Credit Federal | Published 09/15/2006

Consumers are still spending and accruing debt at retail stores, which indicates the economy is withstanding the housing market slump.

According to a Commerce Department report and its findings, consumer spending reinforces the forecast that the economy will slowly cool enough to tame inflation. While a separate report showed a greater-than-expected increase in import prices, rising incomes and a drop in gasoline costs may give consumers enough cash to keep spending.

Get personal finances under control and pay bills timely. Use our free personal budget software to track expenses so you can stop wasteful spending, and use our free bill reminder calendar so you send in your payments on time.

Free desktop software to balance checkbook entries, or use the software as a computer checkbook register.

According to the Labor Department, prices of goods imported into the USA rose higher than expected, led by increases in oil, natural gas and metals.

Sales of motor vehicles and parts, which make up about a fifth of total retail sales, rose 0.4%.

The National Association of Realtors said a slump in housing may also be holding down sales at other retailers. The median price of existing homes may rise 2.8% this year after jumping 10.5% last year. For now, higher mortgage rates and smaller gains in home prices may be dissuading homeowners from tapping home equity. Applications to refinance mortgages are at about a sixth of their peak in mid-2003, according to the Mortgage Bankers Association.

Some retailers are feeling the pinch. Home Depot restated last month's forecast that sales and profit for the year ending in early 2007 would be at the low end of its earlier forecast.

According to the median forecast of economists surveyed by Bloomberg News, economic growth will slow to an average 2.7% annual rate in the second half of the year, from a 4.25% pace in January through June.

Service station sales decreased 1%, the biggest drop since February. While near-record gasoline prices in July and early August may have contributed to the slowdown in spending, economists say the recent drop suggests the outlook may not be as dreary.

The AAA motor club said the price of regular-grade gasoline at the pump dropped to $2.575 a gallon after reaching as high as $3.04 a gallon last month.

Building-material and garden-supply stores showed a 0.1% increase in sales last month, after a 0.3% increase in July. Sales of electronics and appliances rose 0.1% after a 0.7% gain the prior month.

Purchases at non-store retailers, which include online and catalog sales, increased 0.3% after a 2.1% gain. Sales at general merchandise stores gained 0.4% after rising 0.2%.

Consider credit counseling or a debt consolidation loan.

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Consumer Retail Debt - by <a href=http://creditfederal.com>CreditFederal.com</a> Consumers are still spending and accruing debt at retail stores, which indicates the economy is withstanding the housing market slump. According to a Commerce Department report and its findings, consumer spending reinforces the forecast that the economy will slowly cool enough to tame inflation. While a separate report showed a greater-than-expected increase in import prices, rising incomes and a drop in gasoline costs may give consumers enough cash to keep spending. Get personal finances under control and pay bills timely. Use our free <a href="http://creditfederal.com/personal-budget.html">personal budget</a> software to <a href="http://creditfederal.com/track-expenses.html">track expenses</a> so you can stop wasteful spending, and use our free <a href="http://creditfederal.com/reminder-pay-bills.html">bill reminder calendar</a> so you send in your payments on time. Free desktop software to <a href="http://creditfederal.com/balance-checkbook.html">balance checkbook</a> entries, or use the software as a computer <a href="http://creditfederal.com/checkbook-register.html">checkbook register</a>. According to the Labor Department, prices of goods imported into the USA rose higher than expected, led by increases in oil, natural gas and metals. Sales of motor vehicles and parts, which make up about a fifth of total retail sales, rose 0.4%. The National Association of Realtors said a slump in housing may also be holding down sales at other retailers. The median price of existing homes may rise 2.8% this year after jumping 10.5% last year. For now, higher mortgage rates and smaller gains in home prices may be dissuading homeowners from tapping home equity. Applications to refinance mortgages are at about a sixth of their peak in mid-2003, according to the Mortgage Bankers Association. Some retailers are feeling the pinch. Home Depot restated last month's forecast that sales and profit for the year ending in early 2007 would be at the low end of its earlier forecast. According to the median forecast of economists surveyed by Bloomberg News, economic growth will slow to an average 2.7% annual rate in the second half of the year, from a 4.25% pace in January through June. Service station sales decreased 1%, the biggest drop since February. While near-record gasoline prices in July and early August may have contributed to the slowdown in spending, economists say the recent drop suggests the outlook may not be as dreary. The AAA motor club said the price of regular-grade gasoline at the pump dropped to $2.575 a gallon after reaching as high as $3.04 a gallon last month. Building-material and garden-supply stores showed a 0.1% increase in sales last month, after a 0.3% increase in July. Sales of electronics and appliances rose 0.1% after a 0.7% gain the prior month. Purchases at non-store retailers, which include online and catalog sales, increased 0.3% after a 2.1% gain. Sales at general merchandise stores gained 0.4% after rising 0.2%. Consider <a href="http://creditfederal.com/credit-counseling.html">credit counseling</A> or a <a href="http://creditfederal.com/debt-consolidation-loan.html">debt consolidation loan</A>. This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.