The credit card companies are making the use of the social networking media sites as a modern tool to engage with their current customers & subsequently can get connected to the prospective customer through this form of promotion.

Among these companies who are making these moves in order to advertise & promote their credit card policies & usage there are certain reputed companies. This list would include names like the American Express, J.P. Morgan Chase, Capital One Financial, Discover Financial Services, Citigroup & other top players of the credit card providing industry. The social networking sites such as Facebook, Twitter, etc. are coming largely to the use of these companies. The companies have also got their noses into the social games such as the Farm Ville, City Ville, Pioneer, etc. where their presence make it easy for them to get connected with their customers.

The social networking websites provide the customers with certain discounts on buying particular merchandise issuing their cards. Also there are deals that are automatically uploaded to their card account based on their performances in a particular game or on a particular type of review they provided in the social networking sites. There are some reports which confirm the criticisms of these trade & promotion policies by experts & consumer advocates as they feel this virtual online mode could take its place in the college campuses & involve the youngsters into the business or promotion. However the online promotion of these card lending companies via social media sites do not violate the Credit CARD Act which included the protection of young people from any unfair marketing, debts due to overpriced credit cards, etc.

There have been issues regarding the extensive amount of space provided by the social media sites to the card lending companies which the critics feel can harm the youngsters. However no legal action can still be taken under these circumstances as the companies abide the terms & conditions of the Credit CARD Act. The Consumer Financial Protection Bureau (CFPB) responsible for monitoring of practices made by the credit card companies is looking into the matter & would review the lenders’ use of the social media to promote the trade.

But you should always remember that a credit card is money you borrow and must pay back. The more you spend with your credit cards, the bigger is your debt. And debts, as you know, are not something you should accumulate. So, try to pay off your credit cards on time and in full (if possible).

It is advised to think twice every time you want to swipe your credit card. Do not use it to make purchases you cannot afford. Speaking about your credit score, maxing out credit cards is also not a very good idea. It is okay if you spend 30% or less of your credit limit.

So, as you can see, it is not enough to have a credit card, it is very important to handle it carefully and responsibly.

The website NextAdvisor issued a report in which it investigated which travel cards programs are honestly worth your time, as well as money. Their findings may come as something of a surprise.

“We found out there’s a pretty big difference in the value of points for these airlines and hotels,” said Erik Larson, NextAdvisor president, according to an article appearing on the Marketwatch website.

They cited the card Starwood Preferred Guest card from American Express as an example (coincidentally, it was the card that came out the most favorable in the study).

This card has its points for any stay at any hotel worth “two cents” and its flight redemption lies something below an actual cent. That may not seem like a whole lot, but keep in mind here that other airline-reward cards don’t leave their users faring much better.

Furthermore, the card user has the option of collecting nearly five points per $1 spent at any of the hotel’s brands they choose. The Starwood brand consists of names such as Sheraton, for starters.

Yes, the rewards that come paired up with these cards are rather nice to think about, especially if you’re of a wanderlustful nature. However, Marketwatch advised people to think most carefully about the real benefits of such a program, like a free room or flight. And who can resist free things, especially when the average flight or hotel is worth hundreds of dollars?

“You’ll get highest value for the actual travel rewards. The cost to provide the airline flight or hotel room is going to be less for United or Starwood than other rewards would cost them,” added Larson to Marketwatch.

He also was careful to make special note that an user should be careful to pay these cards on time every month, as not to risk any adverse effects to their programs, as well as be on the lookout for added fees.

The eight cards NextAdvisor ended up selecting as the “best buys” were as follows:  1. Starwood Preferred Guest Card from American Express, 2. Southwest Airlines Rapid Rewards, 3. United MileagePlus, 4. Citi Gold/AAdvantage World MasterCard 5. Platinum Delta Skymiles from American Express 6. Continental Airlines OnePass Plus card 7. Marriott Rewards Credit Card from Chase and last not but not least. 8. Hilton HHonors.

First thing to compare is the interest rates, since interest rates can pile up high if the bills are not paid on time. Low interest credit cards tend to have limited offers, or no reward schemes, or may charge a monthly fee in return. Finding a free card that has low interest rates may take some time, but the user must trade off some other feature that is not required. Next thing to compare is the reward scheme, since reward schemes can be beneficial in many ways. For frequent shoppers, reward schemes are particularly important since they can save huge amounts of money through discounts. Credit cards with great reward schemes that promise benefits may charge monthly fees. Only if the reward schemes are great, and will pay back the money spent on monthly fees, it is advisable to buy the card.

Credit cards should also be compared in terms of what they are used for. This helps in classifying the reward scheme and choosing the one that makes most sense. If the credit cards are used for general purpose spending like grocery stores or departmental stores, then point scheme would be a good reward system. If it is used for purely business purchases, then choosing a business credit card which offers discounts on office purchases, and has cash back reward schemes is a good idea. Categorizing the purchases will help in choosing the best credit card suitable for the spending pattern of the individual. Credit cards are an asset if the money is spent with careful planning. It is readily available for emergency spending, and it gives plenty of time to repay the money used.  Another area of comparison can be the repayment time without the penalty, when choosing the best credit card that works for individual needs.

A number of small business owners do the mistake of combining their personal and business expenditure, a move they are bound to regret at a later stage. The CARD Act that offered protection to the consumer cards against arbitrary change of interest and other charges and fees does not extend its protection to the business cards. Hence, an increasing number of business owners use their personal card for business expenses to keep costs low. Some owners also believe that using the same card for all expenses makes book keeping an easy task, but this is far from the truth.

If you are serious about building a business credit history, the best way to do it is by using a good small business credit card for all business related expenses. One of the banks that does extend the rules and regulations of the CARD Act to even the business cards it issues is Bank of America. It is worth applying for a small business credit card from this bank to use it exclusively for business purposes. In addition to avoiding any kind of confusion while filing taxes, this type of credit card also makes you an organized entrepreneur who takes their business seriously.

Most of the card holders are unaware of the transaction charges on the card when they use them overseas. This charge can range from 0 percent to 3 percent per transaction based on the issuer. Though most of the cards have foreign transaction charges on their card, a few of them don’t. Of the cards that don’t have any foreign transaction charges, the Chase Sapphire Preferred card is the most preferred. This card is loaded with favorable features and waives off the annual fee for the first 12 months.

Travel rewards cards are the best ones to take along when you plan long trips. If you don’t have one yet, it could be worth signing up for the American Express Starwood Preferred Guest card that offers a sign up bonus that can easily get you a complimentary stay in a hotel for one night. Booking a two night stay in one of the Sheraton hotels or resorts they have a tie up with will entitle you to a free third night. The purchases made using this card will add points to you card that can be redeemed for travel rewards anytime in the future.

The first rule is not to get lured into some of the teaser bonuses that are offered by these cards. You must ensure that you have a closer look at how the point conversions might work for you.

If you wish to carry forward a balance, then skip these travel rewards cards. If you are have to pay higher interest rates as well as annual fees then, the rewards you get would be negated.

When you apply for a new card, you may end up losing some of the point on your credit score. So, if you have to apply for a car loan or mortgage sometime in the near future, then you have to wait until you finish with that, to obtain a new card.

The fine print will always state that the terms on your card are subject to change at any time.

One of the surveys conducted in 2009 by the Board of Governors of the Federal Reserve System reveals that close to 83% of the business owners own business credit cards. Of these card holders, 64% of them used these small business cards for business transactions while 47% used their personal cards.

If you are a small business owner, then this may perhaps be the best time to sign up for business credit cards. With the competition in the credit card industry heating up, there is no dearth of offers for credit cards in this segment. Businesses can take a pick from two types of cards – the regular small business card or the corporate credit cards. The size of the business and the person responsible for credit card debts are the two factors to take into consideration before making your choice.

While small business credit cards are best for small time entrepreneurs and work at home professionals, the corporate cards are best suited for big businesses that make over $2 billion in revenue each year.

Credit card companies most often consider requests for revision in rate of interest, but just a handful of customers go ahead to negotiate the rates. A survey done by Lending Club reveals that 93% of the population that was surveyed was aware about cardholder’s option talk to their credit card companies about lower interest rates. Just 29% of the population went ahead to contact the credit card companies of which a majority of them got their interest rates modified.

A customer who has been wise with the credit card usage and earned a good credit score is more likely to enjoy lower interest rates from the companies. This credit card company will show resistance to those who have faltered in their credit card usage.

Since customers with good credit score have an edge over the others, begin by taking stalk of your credit score so it can work to your benefit. Sandy Shore, a senior counselor with Novadebt says, “Your credit card issuer won’t be interested in lowering your rate unless you have good credit”. People suffering from a bad credit history must get working on it at the earliest.

It is also good to find the best rates you can ask for when talking to the credit card company. A search on the internet will reveal the best rates offered to any person having the same credit score as yours. This can be used to start negotiating with the company.

The credit card companies, on the other hand, were not a happy lot since it impacted the revenue to a great extent. However, there was a loophole in the CARD Act that the banks realized could be used to regain the lost revenue. This particular act was drafted to offer protection to consumer credit cards alone. The small business credit cards were left out of this. Hence, the cards under this segment do not enjoy the protection that other cards have. This has given credit card lenders a free hand in varying the interest rates, late payment fees and other charges on the card without informing the customers beforehand.

Bank of America is the only bank in the United States that has extended the regulations of the CARD Act to cover the small business cards issued by them. The other banks are yet to consider this move and till such time, small business owners are left with no choice but to be careful and updated about the various charges they are paying for on their card.