Credit Cards
Secured Credit Cards - Unsecured Credit Cards
Secured Credit Cards - Ways to Restore Credit Ratings
Author: Beurace DaresToday, all secured credit cards are actually products for persons with poor or absolutely no credit. A secured bank card account is secured from the cash you've got within a savings account and can have a higher rate of interest than standard charge cards. This is really a excellent way to re-establish consumer credit.
A secured charge card works just like a normal bank card with a major distinction, a secured card takes a security advance payment and your credit limit matches the amount of the deposit you set down. The smallest amount deposit is 200 dollars, but you'll be able to easily increase your borrowing limit by adding to the initial amount you deposited anytime. This way, you take control of your borrowing limit by deciding how a lot or how little you want to deposit.. Your deposit quantity is your borrowing limit and secures your charge card. Secured bank card purchases will be charged to the secured MasterCard account. Use your secured credit card to purchase goods and services or get cash from an ATM machine. Just like a typical credit card. You should pay the minimum balance on the secured charge card prior to the payment deadline.
You can obtain a secured bank card by visiting your bank or credit union and requesting an application. Nevertheless, not every banks and credit unions provide secured cards. You are able to also compare secured charge cards on the net and make application for one according to your cost comparisons. This really is recommended due to the fact it will offer you a chance to see what various credit card organizations need to offer. Most secured credit cards come with an annual fee, and several have additional fees such as a fee to set-up the credit account. The annual fees, set-up fees, and Apr interest rates range between card to card, so it's crucial to shop around to acquire the very best deal.
Your limit for a secured credit card limits vary from 50% to 100% of your deposit account. Some pre-paid debit cards state they make it happen, but this is certainly hard to fathom, considering that credit agencies take a look at the ratio of the account balance versus available credit, and pre-paid debit cards don't have a personal line of credit.
The cardholder of the secured credit card remains to be expected to make normal payments, as with a typical credit card, but must they go into default on the payment, the credit card issuer has the choice of recovering the cost of the products and services paid to the vendors out of the deposit. The benefit of your secured card for an particular person with unfavorable or no credit standing is the fact most businesses report frequently to the main credit agencies. This makes it possible for for building of positive history of credit.
This way, you will appreciate the rights that your unsecured cardholders enjoy of like lower Interest rates, the more expensive borrowing limit, too as less restriction. Once you've set you your secured debit card account, be sure to test your credit report each year to find out how your credit is developing.
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Keys to Unsecured Credit Cards
By Jeremy Thompson
Like thousands of other people across the country, your weekly mail is probably littered with envelopes stating, "You have been pre-approved" or "Apply now and receive 3 months interest free." Whatever the catch phrase on the envelope, credit card companies are constantly advertising and competing to get you to fill out an application for their little plastic card.
Well before you dive into the world of credit, interest rates, APR's and monthly statements, you will want to do your research. Credit cards are as common as sports in America and each comes with its own rules and regulations. Before you start filling out the latest credit card application you will need to find the one that will best fit your financial needs, and yes, even your personality.
The basic function of a credit card is the same for nearly every credit card company. They give you the capability of having instant money when you do not actually have cash to spend. However, when choosing a credit card there is a lot of fine print you will want to read so you do not get roped into spending more or being charged for a service you do not need.
To begin your credit card search you will want to compare credit cards and find the one that is best for you financially. This can be a daunting task because there are countless numbers of companies and types of cards available. You can begin your search with the basic question, Do I need a secured credit card or an unsecured credit card? Every type of credit card available is either classified as an unsecured or secured credit card.
The difference between a secured and unsecured credit card is based on previous credit history. Each type has its advantages and disadvantages depending on that history. We're here to help you understand that difference and help you make a choice before filling out the next credit card application that shows up in your mailbox.
The difference between secured and unsecured credit cards is really quite simple. Once you understand the difference you will be on your way to choosing the card that is right for you.
A secured credit card can be defined as one that is secured by collateral, usually in a monetary form. When using a secured credit card the credit card company will be assured payment by seizing your collateral if you fail to pay your monthly bill. Other forms of secure credit include a house mortgage or a car loan. If you default on a payment on a car our house the loaner will repossess them. If you default on a secured credit card, the company repossesses your cash.
An unsecured credit card on the other hand does not require collateral to be held against your credit. Instead credit card companies rely only on your promise that you will make the payments on your monthly statement. With an unsecured credit card there is nothing for the company to take from you other then more money that they gain in the form of high interest rates and late fees. Generally, people with a poor credit history will not be approved for unsecured credit cards as there is not assurance that the credit card company will receive payments.
The majority of credit cards today are classified as unsecured credit cards. However, if you have a history of bad credit whether in the form of a loan or have failed to pay credit card debt in the past, a secured credit card may better fit your needs.
Jeremy Thompson is the author of UnsecuredCreditCardApplication.net your online resource to unsecured credit cards [http://www.unsecuredcreditcardapplication.net] and unsecured credit card applications [http://www.unsecuredcreditcardapplication.net]. His informational site also covers other types of credit cards as well. Check it out at [http://www.unsecuredcreditcardapplication.net]
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Drawbacks Of Not Having A Credit Card
By Richard Gilliland
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.
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How To Deal With Credit Cards - A Definitive Guideline
By Vikas Aditya
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?
- Applying For Credit Cards Online
- How to decide which credit card is suitable for me?
- Rate Tart Are You One?
- Quick Balance Transfer
- 0% Balance Transfers What's The Buzz?
- Cash Back Credit Card
- The Value Of Having Branded USA Credit Card Loyalty Programs
- Secured or PrePaid Credit Cards
- Airmile Credit Cards
- Business Credit Cards
- How To Manage Your Store Card
- Identity Theft
- Payment Protection Cover For Your Credit Card Is It Worth The Cost?
- Credit Card Charges
- Smashing The Credit Rating Myths
- Credit Building Tactics
- Credit Reports
- Credit Card Options For People With Bad Credit
- Do You Need To Have More Than One Credit Card?
- Credit Card Disadvantages
- Common Credit Card Mistakes
- Are PreApproved USA Credit Cards A Scam?
- Visa or Mastercard?
Author has done significant research in the credit card industry and edits Best Credit Card Deals Online! [http://onlinecreditcards.ecreditdirectory.com]
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Credit Cards For People With Bad Credit, No Credit, And Poor Ratings
By Sunny Kesh
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.
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