Drawbacks Of Not Having A Credit Card

Posted on June 18, 2021 by dayat

There are very few things that are as ubiquitous as the credit card. This little rectangle of plastic can give us so much convenience, but to the unwary can also bring so much misery. Credit cards may be the easiest way to get a standby line of revolving credit, always available when you need it, but it can also be the fastest way to get mired in credit card debt. People may complain about credit card debt but everyone agrees that despite the risks, there are too many drawbacks to not having a credit card.

Credit cards as we know them today are relatively new and are continuously evolving. The major laws protecting consumers’ rights involving credit were passed in the mid-seventies. It may be timely that Congress is currently considering added measures to enhance consumer protection. Yet, for a long time, people were using credit cards as a convenience product rather than as loans. Many people paid their entire balance each month. Credit cards were not as essential then as they are now.

Banks do not make money if people did not carry balances since a grace period for purchases, where no interest is charged for one month, is usually standard. As far as banks are concerned, the best credit card customer is one who carries a balance each month after remitting the minimum payment on time. Credit card issuers got really creative and have managed to make credit cards a necessary part of daily living. They worked to have credit cards accepted in more and more establishments, and to have credit card holders understand the many benefits and conveniences that they stood to gain from using their credit cards.

In our times, credit cards no longer a luxury. If you travel, you need your credit card to book flight reservations and reserve hotel rooms. You also need credit cards to rent cars, to purchase gas, and buy products by telephone or online. Being without credit cards today would make your life as difficult as traveling by horse and buggy. Without our even being aware of it, credit cards have become a business standard.

A credit card is one of the quickest ways to build a credit history. When you apply for a credit card and you still have no history, there are credit card issuers that you can approach. These issuers specialize in providing credit card products to customers who, because they are still attempting to establish or expand their credit history, are generally evaluated as higher credit risks. Many college students, for example, fall into this category, along with those who have limited employment income, or otherwise have poor credit history.

Today, having credit is a necessity. An inexpensive, reliable new car costs thousands of dollars, and although most people may want to pay in cash, the reality is they will need a loan. The rates and terms of that loan will be determined by your credit history, which is easily obtainable from the credit bureaus throughout the country. If you have used credit wisely in the past and repaid previous loans on time, you will be in a favorable position. If not, the result will be a more costly loan with higher interest rates.

The use of the credit card as a source of loans is illustrated by the fact that overall credit card debt now runs several hundred billions of dollars. Credit card debt has risen quickly to unimaginable proportions, and still banks continue to compete heavily for your business. Every year, billions of credit card flyers with invitations to transfer to another card issuer are sent out. The average American credit card holder is now in possession of almost a dozen credit cards, with average debt of $13,000. The credit card has indeed become a cornerstone of everyday living. Other than its necessity in making flight and hotel reservations, credit cards help the credit card holder with:

o “Cashless” transactions that avoid the risk of carrying around too much cash

o An interest-free loan from the time of purchase until the payment is due

o Cash advances from an ATM, in emergency cases

o The ability to shop by telephone or online

o The ability to purchase items when cash is not sufficient

o The ability to withhold payment when dissatisfied with a purchase or to dispute erroneous billings

o An instant source of credit that is available without filling out forms or undergoing further credit checks.

Cash, when it gets lost, is irretrievable; unlike cash, if you lose your credit card you can get a replacement no matter where you are. You also get protection against fraud or unauthorized use, which means you have minimal or even zero liability. Credit cards can be a resource in case of emergencies, such as a large car repair bill or an unforeseen expense.

Credit card companies normally provide the card holders with copies of their monthly statements. These statements list down in detail all charges that have been made against your credit card account. The monthly statements can thus serve as a complete financial record which, to the prudent credit card user, can become a guide for budgeting and controlling expenses. If the card user is a student, the monthly statements can become a tool for learning financial responsibility. Indeed, for personal finances and small businesses, credit cards have become a necessary financial tool.

There is also the prospect of being able to save money on future transactions because the usual credit card offers a number of rewards privileges that include frequent flyer miles, cash rebates, discounts or free telephone calls, points that go towards reduction of the cost of airplane tickets and hotel stays, points that can be redeemed as consumer products or gift certificates. All of the major credit cards — Visa, MasterCard, American Express — offer a multitude of card products with endless permutations on rewards, benefits and privileges that you can enjoy to maximize the value you get from your credit cards.

Ownership of a credit card entails certain responsibilities on your part. If these responsibilities are not exercised dutifully, you could unwittingly put yourself in a difficult situation where you lose your credit card privileges and suffer the drawbacks of not having credit cards. Your primary responsibilities as a credit card holder include the obligation to pay your bills on time, to stay within your pre-set spending limit, and to maintain the worthiness of your credit.

The convenience of having credit cards may tempt you to live beyond your means. You need to remember that excessive credit card debt and late payments will impair your credit rating and make it more difficult and costly to obtain credit in the future. Remember it is very easy to lower your credit ratings, but painfully slow to raise it.

It is now more important than ever to be effective at managing credit card debt. This is particularly true for people living from paycheck-to-paycheck and who must dip into their credit sources to make ends meet. If you are able to plan your credit spending and payments to your account, you will be rewarded with higher lines of credit and better rates. Otherwise, if you’re not efficient and disciplined with your credit card, you’ll have very few options available.

Posted in Uncategorized | Tagged , | Comments Off

The Pros And Cons Of Prepaid Credit Cards

Posted on May 18, 2021 by dayat

Observers in the lending industry have estimated that there may be at least 50 million Americans who are not able to qualify for credit. These consumers are usually young, often members of the minority groups and unbanked…and they are faced with the long-standing dilemma of credit: how can I build my credit record if no one will give me any credit at all?

One of the answers offered by credit card companies is a variety of prepaid credit cards, designed for use by specific segments in the market. The prepaid credit cards are meant for that significant portion of the population that cannot meet the qualification criteria for regular credit cards, or who qualified before but have since lost their credit due to repeated defaults and other reasons.

Advantages of Prepaid Credit Cards For those who do not have enough credit history or have had it blemished, prepaid credit cards are an effective way to build or slowly rebuild credit. That may not happen immediately, but it is something to work on over time. The banks that issue prepaid credit cards are also prepared to extend normal credit the moment you are able to show that you have become a worthy credit risk.

For the moment, you may have to make do with prepaid credit cards. You can use prepaid credit cards as you would any other regular credit card to purchase airline tickets, reserve hotel rooms, or order items online.

Prepaid Credit Card for Students There is a special prepaid Visa credit card for students, which offers a lot of convenience not only for the students but also for their parents. These reloadable prepaid credit cards offer parents several options on how to reload. Parents can add money to reloadable prepaid credit cards by depositing money, by arranging an automatic transfer of funds from their account (a deposit account or their own credit card account), or by online transfer. Using the prepaid Visa credit card is no different from giving the regular allowance to their child, only they do so by electronic means and there is no more cash that changes hands.

The big advantage of the prepaid Visa credit card is that the student is limited to spend only as much money as there is in the card. The parent is thus able to control to some extent the spending behavior of their child. They can use the prepaid credit card anywhere that the credit card brand is accepted.

Prepaid Credit Cards as Gift Certificates Some prepaid credit cards function like gift certificates. You buy the prepaid credit card for a certain amount, and your recipient can purchase items with it at any of the brick-and-mortar stores or online merchants, and also for mail order items, that accept the particular credit card brand. Your recipient can use the prepaid credit card only up to the amount of money that you loaded on it. This particular version of prepaid credit cards is non-reloadable.

Like any gift certificate, recipients of prepaid credit cards can buy whatever it is they want at any time they want. Unlike a gift certificate that, when it gets lost is lost forever to the recipient, prepaid credit cards may be replaced if it gets lost or is stolen.

Prepaid Credit Cards for Travel There is a prepaid credit card designed for travel. These reloadable prepaid credit cards can be purchased in lieu of travelers’ checks or cash. In a way, it combines the best features of a credit card and a traveler’s check because of its convenience and security features. Should you lose the prepaid credit card while you are on travel, you can easily obtain an emergency replacement, both for the prepaid credit card and some cash.

Prepaid credit cards for travel are accepted all over the world, and also allow you to obtain currency from ATM machines. When you need to reload and you are already traveling you can arrange for the reload by phone or online. Apart from the fact that it is a prepaid credit card, you can use it exactly like a regular credit card. That also means you enjoy other benefits just like a regular card — reimbursements for lost luggage of up to $1,000 per cardholder if your luggage is lost; zero liability if your prepaid credit card is used fraudulently after you lose it or have it stolen from you; purchase security up to $500 per claim for any items you buy with prepaid credit cards, which subsequently gets stolen or damaged for certain reasons.

Generally, you can purchase prepaid credit cards of all the major credit card brands at their participating retailers. You don’t have to worry about not having acceptable credit because prepaid credit cards are made available without need of a credit report or a bank account. The only qualifications you need to have are that you have reached 18 years of age and that you must be able to present a valid identification issued by government.

Disadvantages of Prepaid Credit Cards There are a few things about prepaid credit cards that may not be as convenient as the regular credit cards. For one thing, you load only so much money onto it. You will need to keep track of the balance on the prepaid credit card because not all of the merchant terminals where you use the card may be able to help you determine it. However, there are procedures that tell you how to determine your balance, and you will these detailed on the back of the prepaid credit card and in the instructions accompanying it.

The process of reloading your prepaid credit card may be a little inconvenient to some. If you’re using cash, you would have to visit the participating outlet where you bought your reloadable prepaid credit cards. The more convenient way will be reloading online.

There are also the charges. Prepaid credit cards impose an application fee, the amount of which varies with the issuer, and there is also a service charge that you have to pay monthly. You also have to pay for transaction fees, charges when you transfer funds to top up the balance, when you replace your prepaid credit card, and many other fees. To be sure about the fees, you should read closely the fine print on the prepaid credit card account.

Prospects of Prepaid Credit Cards Prepaid credit cards do not provide credit; it is your money that you’re using. You are asked to pay other charges, so it is not for free. You are paying for the convenience and security of carrying plastic instead of large amounts of cash. People with bad credit will be able to act as if they had a regular credit card and enjoy the convenience of one.

Issuers of prepaid credit cards realize that it is a good way to monitor the credit behavior of the cardholder. A prepaid credit card would be a source of information that indicates to the credit bureaus and issuing lenders about how you as the individual cardholder use the card to pay your bills such as utilities. If these consumer data could be formatted in such a way as to provide the basis for a statistical model on probable future behavior in spending, then this could become the foundation for building a credit history.

You would benefit, because by using prepaid credit cards you are rebuilding your credit. The prepaid credit card issuers would benefit, too, because they would be making previously unproven customers bankable. More people could then qualify for regular credit, and that would mean tremendous incremental revenue for the lenders.

Posted in Uncategorized | Tagged , | Comments Off

Credit Cards For People With Bad Credit, No Credit, And Poor Ratings

Posted on May 18, 2021 by dayat

We live in the world of credit. Most of the banking institutions offer different forms of credit from credit card to signature loans.

Majority of people often find themselves in bad credit situations like court judgment, bankruptcy, repossession, foreclosure and loan default,due to lack of enough financial knowledge and discipline which often make it difficult for them to get any credit at all in future. So – what exactly is credit?

Credit means that you are getting a service or cash grant to rent for your own purpose. You are often bound with a contract or agreement to repay in future as agreed with lender or service provider. Credit exists in different forms like loan, mortgage, signature loan, or credit card.

Every financial institution or lending agency, will first check your credit history, before they will consider giving you credit. If you have defaulted on credit or loan before or have bad credit history you will find it almost difficult to get credit any time you apply for it.

However, it’s possible for you to improve your bad credit history or build a new good credit history by repairing your bad credit, thus re-establishing your credit-worthiness. This process is called credit repair. It’s the process in which consumers with unfavorable credit histories attempt to re-establish their credit-worthiness.

Though there are lots of credit repair companies nowadays that promises repairing your bad credit for you, but if you can follow simple guide, it’s very possible for you to do it yourself – after all it’s your credit.

If you repair your bad credit it will make it easy for you to get low interest credit, car or home loans. However, with poor credit rating you may not be able to get loan or be subjected to high interest rates and several other unnecessary conditions. So it’s very important that you repair your credit if you have bad credit. You will get lots of tips on how to do this easily in this book.

Your credits score – how you can improve it.

Your credit score is a very important in any financial transaction that you make or intend making in future. So it’s good you know what exactly your score is, understand its meaning and learn how you can improve it if it’s not good enough.

“Many factors can contribute to a negative rating from the credit reporting agencies. Many factors like are non-payment of an account or late payments over an extended length of time, can contribute to someone getting a “bad credit” rating or poor score. Whether non-payment of an account is willful or due to financial hardship, the result can be the same, a negative rating. … But there is hope to get credit cards for people with bad credit, poor credit or lower credit score”

Credit report – its effect on your personal credit

Credit report is a compilation of your credit history, past financial transactions and personal information possible. This report is usually compiled by accredited agencies known as credit reporting agency.

Credit reporting agencies are organizations that help credit card companies, loan companies, banks, and departmental stores in the country to ascertain the credit worthiness of their would be clients.

Once they have detail information from these sources, they give it to any organizations in need of it when requested. Though they keep on file information concerning you and your credit, they don’t make final judgments as to your credit worthiness. The decision is up to the credit card companies or any lender which you are dealing with.

Credit cards: – types and what you need to know about them.
Nowadays, everybody wants to have at least a credit card. Everywhere you go you see adverts from various banks and other financial institution offering you credit card. However, before you apply for a credit card, there are several factors you need to consider. So it’s very important that you know more about the types of cards available, and one that will work best for you.

Secured credit card: – A secured credit cards for people with bad credit requires a security deposit as collateral before you can get approval. Its type of card that best suit the need of people with no or poor credit who are trying to build their credit history. Your collateral must be equal or greater in value of the credit amount you are applying for.

With a secured card you put up your own money (into a savings account with the bank you are applying for credit card) and that amount (or part of it) is the credit line for your card. Put in $500 and you could have up to a $500 credit line. You can deposit anywhere from two hundred to two thousand dollars into an account, and that will be your spending limit.
This will give you the flexibility of using a credit card and because if you pay off every statement you are letting creditors know that you can handle credit (again) and your bank may soon begin extending your credit line beyond what you have put in. So you are on your way back to healthier credit, to a status where you will no longer need a secured card.

Business credit cards: – These are the card that’s available for business owners, directors and business executives. They come with several features just like any traditional credit cards. You have to consider the terms and condition for these types of cards too before applying.

Student credit cards are another type of credit card specifically for students. These types of cards are made for students because of their lack of credit history, and if given chance they can build their credit history with such card.

Prepaid credit cards: – are set of cards that are just acceptable wherever the traditional credit cards are acceptable, but they are not credit card. You will have to always transfer money to your card before you can make use of the card and you may not be able to spend more than you prepaid for the card.

Presently this is almost the best card for people that want to avoid interest and other fees charged on traditional credit card and also for people with bad credit. However, other little charges like monthly fees, application; over the limit and ATM fees are still applicable, but these gets offset if you pay your bills via money order

Whichever card you decide to choose make sure that you go over the terms applicable very well to avoid putting yourself in financial bondage. In second part of this article we will continue looking at other types of credit card.

Balance credit cards are unsecured standard cards designed to allow consumers to save money in interest charges by transferring higher interest credit card balance onto a lower interest rate credit card.

Low interest credit cards are other types of non secured standard credit card. They offer either low introductory APR that change to a higher rate after a certain period of time or a low fixed rate. You can take advantage of the low introductory APRs to make larger purchases for now and pay them off several months later. It wont be possible to get this credit card for people with bad credit

Air Mile Credit cards are cards that are good for people that travel frequently or planning to go on vacation. It’s a form of reward card that allow you opportunity of obtaining a free airline ticket. You will need to accumulate specified air miles before you can be entitled to free ticket. All accumulated mile points will be based on dollar amount of your credit card purchases over a period of time based on predetermined point level.

Specialty credit cards are other set of standard non-secure cards designed specifically for individual business users and students with unique and special needs.

Make sure that you study the terms of any of the card that you pick very well to avoid risking your credit rating. Also, when you pick any of the reward cards make sure you study the forms and offers very well because credit card issuing companies do offer different reward programs and their promotional offers often change. So make sure you thoroughly look over the card’s terms and conditions of each specific card before applying.

Posted in Uncategorized | Tagged , | Comments Off

How To Deal With Credit Cards – A Definitive Guideline

Posted on May 18, 2021 by dayat

Various types of credit cards are available in the market. They have evolved from their early days into flexible financial tools for most types of spenders and savers. But with so many types of credit cards on offer it can be somewhat overwhelming. Few examples are Airline credit card, Balance transfer credit card, cash rebate credit cards etc.

How to choose the Right Card?
There are literally tens of hundreds of credit cards on offer in the USA, and the list is growing daily. So, which is the best on offer? It very much depends on how each person plans to use their card. The answer lies in asking one simple question; “What do I want to use a credit card for?”
Applying For Credit Cards Online
This option is simple and most convenient. More and more people are applying for credit cards online. Along with online auctions, and shopping, signing up for credit cards, loans and insurance has been one of the fastest growing commercial activities on the net.
How to decide which credit card is suitable for me?
First decide what YOU are looking for then search the web. There are some bigname credit cards that might charge the earth for you to have the privilege of carrying their name in your wallet. Most of them are not worth the extra fees. But what makes a card worth its salt? And what steps should you take in choosing the right card?
Rate Tart Are You One?
Rate tarts are the smart shoppers of the credit card world. They play the system to avoid paying interest on purchases, borrow money for free, and even make money on that borrowed money! The idea is simple. DO NOT leave any balance in your credit card and pay in FULL before the next billing cycle.
Quick Balance Transfer
Balance transfers allow card holders to transfer the money they owe to their existing credit card to another, usually at a special rate of interest. The new credit card company pays off the old credit card debt and transfers it to the new card.
0% Balance Transfers What’s The Buzz?
Balance transfers can be a good way of managing large sums of debt. The idea is simple. You have a large debt, loan, store card balance or credit card balance
Cash Back Credit Card
It seems almost too good to be true; a credit card company giving back money to the user just for spending it in the first place! However, as with all good deals, there are terms and conditions.
The Value Of Having Branded USA Credit Card Loyalty Programs
Anyone who has taken even the briefest of looks at the USA credit card industry will immediately notice that there are well over a thousand credit card providers. However, even in this hugely competitive industry, there are still only two main types of card available – the Visa card and the MasterCard.
Secured or PrePaid Credit Cards
So you need a credit card for emergencies, peace of mind, or for your teenage child but aren’t willing to go into debt for it? The answer might just be a secured or prepaid credit card.
Airmile Credit Cards
These days most major USA credit card providers offer a vast array of reward programs to try and entice potential new customers to apply for a card. Since the inception of reward packages, one of the most popular packages that applicants go for is airmile credit cards.
Business Credit Cards
If you are either the owner or Chief Financial Officer (CFO) of a business and do not have business credit cards, then the following 10 reasons might make you want to rethink your business credit card strategy.
How To Manage Your Store Card
Many major outlets offer store cards. These provide an easy way for consumers to defer payment for purchases. Store cards are promoted over public address systems in shops and by shop assistants at checkouts. So it’s no surprise that there are millions of store cards accounts in the USA.
Identity Theft
Identity theft is a major issue in the USA, and with good reason. It has been estimated that it can take up to sixty hours of work to recover a stolen identity, and in the worst cases, cost up to thousands of dollars to put right. But what can be dome to prevent this?
Payment Protection Cover For Your Credit Card Is It Worth The Cost?
Payment protection cover states quite clearly what it is but what are the ins and outs of the policy and its worth considering taking out payment protection cover on your credit card.
Credit Card Charges
Credit cards appear to have only one cost to a user – the interest charged on purchases, but there are a whole raft of hidden charges just lurking below the surface. So, some cards offer an annual payment option in return for certain benefits. What is the best option, and in what circumstance
Smashing The Credit Rating Myths
It used to be said that there were two certainties in life – death and taxes. Today you can add a third – credit. Today, it is almost certain that at some point during your life you are going to need to apply for credit. This credit may be either be in the form of a credit card, charge card, hire purchase, personal loan, home loan, etc.
Credit Building Tactics
Much is written about credit ratings, the score against an individual’s name, that rates their eligibility for credit.
Credit Reports
Every time a customer applies for a financial product such as a credit card, the credit company will consult that customer’s credit file. This file records all their financial activity in terms of credit applications and banking activity.
Credit Card Options For People With Bad Credit
There are many items that you can only pay for with a credit card. If you want to book a holiday on the Internet, a credit card is a secure way to pay. And if you want to hire a car when you get to your destination or booking a hotel room, a credit card is your only option.
Do You Need To Have More Than One Credit Card?
Deciding whether or not to have more than 1 USA credit card can be a difficult decision to make. On the one hand, you want to keep a careful control on your personal finances and having numerous creditors makes this difficult. On the other hand, it can be convenient to have more than one credit card, for example in an emergency. So, you should have more than 1 credit card.
Credit Card Disadvantages
Credit cards are everywhere; figures show that the average card user has over 4 credit cards in their wallet, and there are more cards always in circulation!
Common Credit Card Mistakes
With credit cards now outnumbering people in the USA you would be right to assume that not everyone in this country uses their credit cards either correctly or wisely. But what are the most common mistakes that credit card holders make when using their credit cards?
Are PreApproved USA Credit Cards A Scam?
Appropriately know as junk mail, every now and then you may find a nice glossy letter on your doormat informing you that you have just been ‘preapproved’ a USA credit card. With your pulse racing, you start to believe then hype of what a wonderful customer you are and how much your custom is valued. Hold on tiger – you may well be falling for one of the biggest credit card scams going!
Visa or Mastercard?
The two main credit card types have battled it out since the mid 1960s, but the credit card revolution was started in earnest by American Express, in 1958. Soon, their card was the choice to pay at hotels, airlines and restaurants.

Posted in Uncategorized | Tagged , | Comments Off

Women’s Credit Card – How To Be One Step Ahead Of Credit Card Companies

Posted on March 18, 2021 by dayat

Women’s Credit Card – Compare Women’s Credit Card and find out what is low APR and balance transfer credit cards.

Have you ever wondered why you get credit card offers in mail when you have not even made a request for it. If your name and address is in public information system than by now you must have received many credit cards offers. Each giving better offer than other competing credit card company.

With so much information to process will lead to confusion and wrong acceptance of credit cards. Choosing a right credit card is a daunting job, it needs careful analysis and close scrutiny of fine points written in small fonts. Special attention should be given to credit card rates, when new higher rates will apply. Give importance to reading terms and conditions of credit cards. You will get new understanding of how credit cards work. Before you start applying credit cards you need to know few important terms used in credit card. By knowing these terms will help you applying for a correct credit card.

Credit Cards

As you know small plastic card known as credit card is in dimension of 85.60 X 53.98 mm. As the name suggest you get moneyon credit or you buy things in market on credit. The credit card differs from Debit card because when you make purchase by using your credit card it doesn’t remove money from your bank account. where as when you do purchase using Debit card it removes money from your bank account after every transaction you make.

When you make transaction using credit card the credit card company lends money to merchant where you did shopping. Usually you get one billing cycle money on credit without any interest being charged to you.

All is required from you is to pay full balance before due date to avoid interest charges. In case you have made big purchase which you can pay in full in one month, try paying off balance as soon you can to avoid more interest charges. In case you are not able to pay money back to credit card company please ensure you pay at least minimum balance required by due date. Usually this amount is little and it helps you to keep your account in good standing. Ideally this option should be avoided as it will pile interest amount on your borrowed amount and in no time your borrowed money will start swelling.

Credit card company issues credit card to user after his/her request for application has been approved.

Every credit card company will set credit limit for each customer based on his/her credit strength
The credit card user will make purchases by using issued credit card.

The credit card on average is in dimension of 85.60 x 53.98 mm

Every credit card has number written on it by which your account is identified.

Some of the known credit card companies: Chase – Bank of America – Citigroup – Wells Fargo – American express – discover etc. Practically every major bank issues its credit card to users.

When you make purchase at any merchant you sign a small receipt acknowledging you will pay same amount to your credit card company.

Few of the transactions can be done over phone, such as airlines and hotel booking, by giving your credit card number and expiration date etc. Please be care full when making such transactions. Ensure you do such transactions with trusted parties.

Almost all merchants or store owners have credit card verification system, while you swipe your card for payment it is checked in background for fraud or missing card status.The credit card payment terminal or Point of Sale (POS) system helps store owners to do verification with issuing credit card company’s system.

The security code of credit card is printed on back of credit card.

Each month credit card company will send monthly statement to credit card users. The statement will include details of transaction made by credit card user. The important details will be visible such as day of transaction, merchant’s name, amount paid etc. This information helps you to cross verify purchases made with amount charged on credit card.

The credit card statement also gives other information such as billing cycle, due date (payment date), total balance and minimum payment you can make.

The grace period is the number of days to make payment back to credit card company from the day he/she made purchase.

The credit card companies form associations and many bank become member of these credit card associations. The known associations are VISA, MASTERCARD,DISCOVER, AMERICAN EXPRESS etc.

Electronic transaction processing network, which allow electronic transaction to work through secure system. Following are few companies which are in this business. NDC Atlanta, Nova, Cardnet, Nabanco, Omaha, Paymentech, Vital, VisaNet and Concord EFSnet.

Secure credit card: Some credit card companies issues secure credit card after applicant has deposited 10% of credit limit into his/her account. This type of account is for new users with very little credit history to show.

Pre-Paid Credit Card: This is not really a credit card, because no amount is borrowed from lender. This type of credit card is used by students when their parents deposit required amount into account for their shopping. This type of credit card comes with VISA/MASTECARD logo thus is called pre-paid credit card

Security of credit card is dependent upon the number on credit card. Few merchants will allow certain types of sale by just getting credit card number. Ensure you don’t compromise security of credit card.

You can also withdraw money through credit card at ATM’s using your secure pin number
Annual percentage rate (APR): Learn what is APR and how it is calculated.The annual percentage rate is the interest you will be paying on borrowed money to lender.

The APR rate applicable to your account will differ from the rate which was given as introductory, partly because of few month introduction rate and other fees get added to final interest calculation.

In simple terms APR is monthly interest multiplied by 12 months will result in annual APR rate. This assumes there is no other fees involved.

Balance transfer: Why would you transfer debit amount in your credit card to other card. the reason could be better interest rate and terms. some of the credit card companies give introductory offers such as no interest on balance transfer for 6 months to 2 years.

These offers are good when you are paying high interest rate or you have high balance on credit cards and you are looking for cooling period to fix your debits.

How important is to protect your Credit Card

This small plastic card which you carry in your wallet is very precious more than your jewelry you wear on your body. The security of credit card should be taken very seriously. Once your credit card is stolen, your account information is known to others, it will take good time before you will get those charged removed from your account.

Meanwhile your credit rating will take hit if there is big charge on your credit card and you are not able to settle those charges. take every effort to safe guard security of your on-line identity and security of credit card.

Few security tips: Always keep your credit card in secure place when not using.

Never reveal your credit card numbers to others.

Try to avoid giving your credit card information on phone.

Any loss of credit card should be immediately informed to issuing credit card company.

If you are using on-line access to check your credit card account, please use secure methods to protect your identity and credit card etails.

Install “fire wall” and good virus and spyware scanner on your computer.

Change your on-line account passwords periodically.

Posted in Uncategorized | Tagged , | Comments Off