If you have bad credit, you may be under the impression that you are not able to apply for a credit card. While it is true that you may be rejected from getting certain credit cards or loans, there are options available for those who have bad credit. Since a sizeable percentage of the population has bad credit, this has created a market which many banks and credit card companies have tapped into.
Your credit report is a reflection of your credit history, and it is very important when you need to apply for a car or mortgage. There may be situations where you will need a credit card to complete a certain transaction, and if you have bad credit you will run into problems.
There are a number of options available for those with bad credit who want cards. Secured credit cards are one good option. A secured credit card allows you to deposit money into the account which you can then use.
Instead of borrowing money from the credit card company, you use your own money. You will not be allowed to go over the amount you place on the card. Despite this, you may have to pay the credit card company a fee in order to use their cards, and this is how their money is made. A secured credit card can be used to make any of the purchases you can make with a unsecured credit card. A prepaid debit card is another option that is used by people who have less than perfect credit.
If you are a student in college, an option may be available for you called a secured student credit card. These cards will allow students to begin building their credit while they're still in school. Students who use these cards are prevented from going over their limit because they can only spend money which they've placed on the cards. It is important to remember that you won't get the best deals or rates if your credit is poor. However, we live in an electronic age, and it is difficult to conduct many transactions without having either a debit or credit card.
Secured credit cards are a great way to allow you to make transactions while you continue to rebuild your credit. If you work hard to repair your credit, you won't be in debt forever, and using these cards will allow you to easily make electronic transactions.
Joe Kenny writes for Card Guide, offering the latest information on credit cards in the UK, visit them today to transfer your credit card balance and start clearing credit card debt today.
Article Source: http://EzineArticles.com/?expert=Joseph_Kenny
http://www.securedcreditcardsnow.com/bad-credit-applications.htm
Thursday, October 25, 2007
Be credit-wise. Tips for credit cards in Australia.
These days, life without a credit card would be hard to imagine. We have become so used to the convenience of “plastic”, we don’t leave home without it. (Sound familiar?) While you can’t dispute the ease and convenience of not having to pay in cash at the supermarket, petrol pump or pub, here are some handy credit card reminders.
1) Say no to cash advances
Some people just don’t get it, but the bank does. The Interest-free periods offered on credit card accounts never apply to cash advances. In the majority of cases, you will pay interest on the cash right from the second you withdraw it from the ATM or over the counter. The dollar penalty can really add up, so it’s best not to do it. Ever.
2) Watch out for Store Cards. Loyalty can cost you
How often have you been at the cash register and asked if you would like to apply for a store card? Probably plenty of times. Department stores such as David Jones and Myer may offer you the benefits of customer discounts, added warranties and extended credit, but they aren't cheap. Although you don’t pay an annual fee, the interest rate can be considerably higher (sometimes several percent) than alternative credit cards. It’s fine to use them for store specials and loyalty benefits, but pay the balance in full by the due date. In this way you avoid being whacked with huge interest charges.
3. Choose a card that matches your lifestyle.
Think about your spending habits and patterns. For example: if you use a card for extended credit and don't pay off the full balance each month, just a basic payment, choose a card with a lower rate. It may not offer any interest-free period, but the lower interest rate should save you more dollars over time.
If you use your card for everyday groceries or filling up the car, go for credit card with maximum interest-free days. Make sure you pay it off in full each month. This way you get the benefit of up to 55 interest-free days on purchases, as well as rewards, discounts and frequent flyer points. But watch the annual fees on rewards cards.
4. Interest-free periods are void unless you pay in full
Don’t let your credit card get out of control. To avoid paying interest on your purchases, you must pay the full balance – that figure in black and white on your statement (not just the minimum payment required) by the due date. If you don't, be warned. You will be charged interest right back to the date of purchase on each item. In effect, you forfeit the interest-free period on those purchases.
5. Search beyond the local banks
These days, there’s a lot more choice out there - not just the usual local banks. Look at credit unions, building societies, community banks, boutique and online banks. Chances are you may get offered better interest rates or lower fees than the big banks because these new providers are anxious to win business or they are non-profit organisations. We put this theory to the test. We tried HSBC credit cards and came up with 5 different types of credit card.
6. Do you qualify for a “relationship discount”?
If you consolidate your banking business and finances with one lender or bank, you can qualify for a special treatment. Loyalty does have its rewards. You can enjoy home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and of course, credit card annual fee waivers.
7. Do you qualify for annual fee waivers?
If you spend enough on your credit card on an annual basis, some institutions offer to waive the annual fee. For instance: If your card spend is more than $5000-$10,000 a year, you could choose a card with all the benefits you want and avoid the annual fee. However, make sure you use your card to make purchases you were going to make anyway. Spending up big for the sake of reducing fees or earning rewards points is false economy.
8. Sweet deals? Don't be distracted by them.
Introductory discount rates, fabulous reward programmes and special insurance offers. Some lenders offer enticements on credit cards that can make a big impression on first glance. Be practical. Look at the overall, ongoing cost of credit of any card option. Compare the standard interest rate, interest-free period and annual fees - and weigh these up against the real value (if any) of the added extras.
Credit cards are great. But remember that you are the one in control and responsible for your debt. If you can’t resist a bargain or a shopping centre blitz, leave the card at home. Pay cash.
Cathy Howley is Creative Manager and Copywriter at Options Strategy, Melbourne. The digital agency with the strategy edge. www.options-strategy.com. If you’re looking for a credit card, you could try HSBC credit cards.
This article is free for republishing
Source: http://www.articlealley.com/article_208601_19.html
http://www.articlealley.com/article_208601_19.html
1) Say no to cash advances
Some people just don’t get it, but the bank does. The Interest-free periods offered on credit card accounts never apply to cash advances. In the majority of cases, you will pay interest on the cash right from the second you withdraw it from the ATM or over the counter. The dollar penalty can really add up, so it’s best not to do it. Ever.
2) Watch out for Store Cards. Loyalty can cost you
How often have you been at the cash register and asked if you would like to apply for a store card? Probably plenty of times. Department stores such as David Jones and Myer may offer you the benefits of customer discounts, added warranties and extended credit, but they aren't cheap. Although you don’t pay an annual fee, the interest rate can be considerably higher (sometimes several percent) than alternative credit cards. It’s fine to use them for store specials and loyalty benefits, but pay the balance in full by the due date. In this way you avoid being whacked with huge interest charges.
3. Choose a card that matches your lifestyle.
Think about your spending habits and patterns. For example: if you use a card for extended credit and don't pay off the full balance each month, just a basic payment, choose a card with a lower rate. It may not offer any interest-free period, but the lower interest rate should save you more dollars over time.
If you use your card for everyday groceries or filling up the car, go for credit card with maximum interest-free days. Make sure you pay it off in full each month. This way you get the benefit of up to 55 interest-free days on purchases, as well as rewards, discounts and frequent flyer points. But watch the annual fees on rewards cards.
4. Interest-free periods are void unless you pay in full
Don’t let your credit card get out of control. To avoid paying interest on your purchases, you must pay the full balance – that figure in black and white on your statement (not just the minimum payment required) by the due date. If you don't, be warned. You will be charged interest right back to the date of purchase on each item. In effect, you forfeit the interest-free period on those purchases.
5. Search beyond the local banks
These days, there’s a lot more choice out there - not just the usual local banks. Look at credit unions, building societies, community banks, boutique and online banks. Chances are you may get offered better interest rates or lower fees than the big banks because these new providers are anxious to win business or they are non-profit organisations. We put this theory to the test. We tried HSBC credit cards and came up with 5 different types of credit card.
6. Do you qualify for a “relationship discount”?
If you consolidate your banking business and finances with one lender or bank, you can qualify for a special treatment. Loyalty does have its rewards. You can enjoy home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and of course, credit card annual fee waivers.
7. Do you qualify for annual fee waivers?
If you spend enough on your credit card on an annual basis, some institutions offer to waive the annual fee. For instance: If your card spend is more than $5000-$10,000 a year, you could choose a card with all the benefits you want and avoid the annual fee. However, make sure you use your card to make purchases you were going to make anyway. Spending up big for the sake of reducing fees or earning rewards points is false economy.
8. Sweet deals? Don't be distracted by them.
Introductory discount rates, fabulous reward programmes and special insurance offers. Some lenders offer enticements on credit cards that can make a big impression on first glance. Be practical. Look at the overall, ongoing cost of credit of any card option. Compare the standard interest rate, interest-free period and annual fees - and weigh these up against the real value (if any) of the added extras.
Credit cards are great. But remember that you are the one in control and responsible for your debt. If you can’t resist a bargain or a shopping centre blitz, leave the card at home. Pay cash.
Cathy Howley is Creative Manager and Copywriter at Options Strategy, Melbourne. The digital agency with the strategy edge. www.options-strategy.com. If you’re looking for a credit card, you could try HSBC credit cards.
This article is free for republishing
Source: http://www.articlealley.com/article_208601_19.html
http://www.articlealley.com/article_208601_19.html
Compare business credit cards to find the best
Normally, business credit cards are ideal for small business outfits.
To choose the best business card around, it goes without saying that you need to compare business credit cards that are on offer. But before you get down to finding the best business credit cards you have to understand how it differs from a personal credit card.
If you're starting up a business, or have one already, you're obviously incurring all sorts of business expenditure. Maybe you are paying for such expenditure by using your personal credit card. Well, experts advise you not to do that and instead of using your personal credit card you should be getting a business credit cards for business, which you should use only for your business expenses. That way your expenditure reporting will be more organized.
Types of business credit cards
Business cards are of two types: charge cards and credit cards. There is no interest charged on the charge card, but you have to make the entire payment at the end of the month, using direct debit, without any rollovers. A business credit card, on the other hand, gives you the flexibility of paying in installments and these cards may just be right for a start-up. Secured business credit cards can be obtained if you are a start up company.
Advantages of business credit cards
All businessmen want to do their business in an orderly, no-nonsense manner. And the same principle should apply in running a business credit card. If used diligently, business credit cards offer many advantages:
* Maintaining business credit cards helps keep business expenditure separate from personal expenses. If you use just one card for business and personal use, the overlapping of business expenditure with personal expenses can create a problem when it comes to filing your tax statement.
* A business credit card statement keeps full records of all your business expenditure, and these records help you doing your accounts at the end of the year.
* If you run your business credit card expenditure in a disciplined manner, then you will build up a reputable business credit history. This helps when your business grows and you need more funds.
* There is a whole lot of competition between business card companies, and many offer rewards that range from air miles to discounts on software to rebates on phone services. You can take advantage of this and lower your business overheads by making use of these awards offers.
Choosing the best business credit card
Though business cards are just a special type of credit cards, and most of the criteria that are used to pick a regular credit card apply to business cards too, here are some factors you must consider before choosing the best business credit cards:
* If you are going in for a business credit card, evaluate and compare the interest rates charged. There may be offers that shout 0% interest. Such offers blow the interest balloon once the introductory period is over. For example, a card which offers a 0% rate for 6 months that balloons to 28.99% is not as good as a steady rate of 8%.
* If you've decided on a charge card, then compare the annual fees first. Maybe, a charge card that is charging an annual fee a tad higher may not be all that bad if it is offering discounts at stationery stores and airlines.
* Consider the rewards offered by business credit card issuers. Go for business cards that offer rewards that are tailor-made for your business. For example, if your business involves frequent travel then it makes sense to go for a card that offers discounted air tickets, discounted car rentals, etc., as rewards.
Compare business credit cards
Citibank, American Express, Chase, Discover, Advanta are some of the major players in the business credit cards market. You can get plenty of information about them on the Internet. Creditcards.com is an excellent resource where you can compare offers available across different types of cards.
Effectively managing a business credit card
Once you've zeroed in on the card that's just right for you, all that needs to be done is to apply for one and start using it. Here are a few ways that can help you manage it effectively:
* Apply for your business card through your bank or financial institution. Your relationship with your bank can help you get a business card faster and without any hassles.
* Do not sign up for multiple business cards as they might cause you card-related management problems that may end up ruining your credit history.
* Many business cards offer a 20-plus-day grace period. Use credit cards for your business expenditure and use this grace period to float your money. If you pay by check, you will have no money float.
* Don't avail of any cash advances. These involve higher fees and a higher rate of interest.
* Pay the dues on time regularly.
If you treat your business card with the same disciplined approach you adopt to treat your business, your business card will reward you with its advantages. If you misuse it, you will face the consequences associated with bad credit card management and your business can go downhill.
http://www.dreamcreditcards.com/dreamcreditcards-articles/compare-business-credit-cards.php
To choose the best business card around, it goes without saying that you need to compare business credit cards that are on offer. But before you get down to finding the best business credit cards you have to understand how it differs from a personal credit card.
If you're starting up a business, or have one already, you're obviously incurring all sorts of business expenditure. Maybe you are paying for such expenditure by using your personal credit card. Well, experts advise you not to do that and instead of using your personal credit card you should be getting a business credit cards for business, which you should use only for your business expenses. That way your expenditure reporting will be more organized.
Types of business credit cards
Business cards are of two types: charge cards and credit cards. There is no interest charged on the charge card, but you have to make the entire payment at the end of the month, using direct debit, without any rollovers. A business credit card, on the other hand, gives you the flexibility of paying in installments and these cards may just be right for a start-up. Secured business credit cards can be obtained if you are a start up company.
Advantages of business credit cards
All businessmen want to do their business in an orderly, no-nonsense manner. And the same principle should apply in running a business credit card. If used diligently, business credit cards offer many advantages:
* Maintaining business credit cards helps keep business expenditure separate from personal expenses. If you use just one card for business and personal use, the overlapping of business expenditure with personal expenses can create a problem when it comes to filing your tax statement.
* A business credit card statement keeps full records of all your business expenditure, and these records help you doing your accounts at the end of the year.
* If you run your business credit card expenditure in a disciplined manner, then you will build up a reputable business credit history. This helps when your business grows and you need more funds.
* There is a whole lot of competition between business card companies, and many offer rewards that range from air miles to discounts on software to rebates on phone services. You can take advantage of this and lower your business overheads by making use of these awards offers.
Choosing the best business credit card
Though business cards are just a special type of credit cards, and most of the criteria that are used to pick a regular credit card apply to business cards too, here are some factors you must consider before choosing the best business credit cards:
* If you are going in for a business credit card, evaluate and compare the interest rates charged. There may be offers that shout 0% interest. Such offers blow the interest balloon once the introductory period is over. For example, a card which offers a 0% rate for 6 months that balloons to 28.99% is not as good as a steady rate of 8%.
* If you've decided on a charge card, then compare the annual fees first. Maybe, a charge card that is charging an annual fee a tad higher may not be all that bad if it is offering discounts at stationery stores and airlines.
* Consider the rewards offered by business credit card issuers. Go for business cards that offer rewards that are tailor-made for your business. For example, if your business involves frequent travel then it makes sense to go for a card that offers discounted air tickets, discounted car rentals, etc., as rewards.
Compare business credit cards
Citibank, American Express, Chase, Discover, Advanta are some of the major players in the business credit cards market. You can get plenty of information about them on the Internet. Creditcards.com is an excellent resource where you can compare offers available across different types of cards.
Effectively managing a business credit card
Once you've zeroed in on the card that's just right for you, all that needs to be done is to apply for one and start using it. Here are a few ways that can help you manage it effectively:
* Apply for your business card through your bank or financial institution. Your relationship with your bank can help you get a business card faster and without any hassles.
* Do not sign up for multiple business cards as they might cause you card-related management problems that may end up ruining your credit history.
* Many business cards offer a 20-plus-day grace period. Use credit cards for your business expenditure and use this grace period to float your money. If you pay by check, you will have no money float.
* Don't avail of any cash advances. These involve higher fees and a higher rate of interest.
* Pay the dues on time regularly.
If you treat your business card with the same disciplined approach you adopt to treat your business, your business card will reward you with its advantages. If you misuse it, you will face the consequences associated with bad credit card management and your business can go downhill.
http://www.dreamcreditcards.com/dreamcreditcards-articles/compare-business-credit-cards.php
Credit Card Penalties, Fees Bury Debtors
Washington Post Staff Writers
Sunday, March 6, 2005; Page A01
For more than two years, special-education teacher Fatemeh Hosseini worked a second job to keep up with the $2,000 in monthly payments she collectively sent to five banks to try to pay $25,000 in credit card debt.
Even though she had not used the cards to buy anything more, her debt had nearly doubled to $49,574 by the time the Sunnyvale, Calif., resident filed for bankruptcy last June. That is because Hosseini's payments sometimes were tardy, triggering late fees ranging from $25 to $50 and doubling interest rates to nearly 30 percent. When the additional costs pushed her balance over her credit limit, the credit card companies added more penalties.
"I was really trying hard to make minimum payments," said Hosseini, whose financial problems began in the late 1990s when her husband left her and their three children. "All of my salary was going to the credit card companies, but there was no change in the balances because of that interest and those penalties."
Punitive charges -- penalty fees and sharply higher interest rates after a payment is late -- compound the problems of many financially strapped consumers, sometimes making it impossible for them to dig their way out of debt and pushing them into bankruptcy.
The Senate is to vote as soon as this week on a bill that would make it harder for individuals to wipe out debt through bankruptcy. The Senate last week voted down several amendments intended to curb excessive fees and other practices that critics of the industry say are abusive. House leaders say they will act soon after that, and President Bush has said he supports the bill.
Bankruptcy experts say that too often, by the time an individual has filed for bankruptcy or is hauled into court by creditors, he or she has repaid an amount equal to their original credit card debt plus double-digit interest, but still owes hundreds or thousands of dollars because of penalties.
"How is it that the person who wants to do right ends up so worse off?" Cleveland Municipal Judge Robert J. Triozzi said last fall when he ruled against Discover in the company's breach-of-contract suit against another struggling credit cardholder, Ruth M. Owens.
Owens tried for six years to pay off a $1,900 balance on her Discover card, sending the credit company a total of $3,492 in monthly payments from 1997 to 2003. Yet her balance grew to $5,564.28, even though, like Hosseini, she never used the card to buy anything more. Of that total, over-limit penalty fees alone were $1,158.
Triozzi denied Discover's claim, calling its attempt to collect more money from Owens "unconscionable."
The bankruptcy measure now being debated in Congress has been sought for nearly eight years by the credit card industry. Twice in that time, versions of it have passed both the House and Senate. Once, President Bill Clinton refused to sign it, saying it was unfair, and once the House reversed its vote after Democrats attached an amendment that would prevent individuals such as anti-abortion protesters from using bankruptcy as a shield against court-imposed fines.
http://www.washingtonpost.com/wp-dyn/articles/A10361-2005Mar5.html
Sunday, March 6, 2005; Page A01
For more than two years, special-education teacher Fatemeh Hosseini worked a second job to keep up with the $2,000 in monthly payments she collectively sent to five banks to try to pay $25,000 in credit card debt.
Even though she had not used the cards to buy anything more, her debt had nearly doubled to $49,574 by the time the Sunnyvale, Calif., resident filed for bankruptcy last June. That is because Hosseini's payments sometimes were tardy, triggering late fees ranging from $25 to $50 and doubling interest rates to nearly 30 percent. When the additional costs pushed her balance over her credit limit, the credit card companies added more penalties.
"I was really trying hard to make minimum payments," said Hosseini, whose financial problems began in the late 1990s when her husband left her and their three children. "All of my salary was going to the credit card companies, but there was no change in the balances because of that interest and those penalties."
Punitive charges -- penalty fees and sharply higher interest rates after a payment is late -- compound the problems of many financially strapped consumers, sometimes making it impossible for them to dig their way out of debt and pushing them into bankruptcy.
The Senate is to vote as soon as this week on a bill that would make it harder for individuals to wipe out debt through bankruptcy. The Senate last week voted down several amendments intended to curb excessive fees and other practices that critics of the industry say are abusive. House leaders say they will act soon after that, and President Bush has said he supports the bill.
Bankruptcy experts say that too often, by the time an individual has filed for bankruptcy or is hauled into court by creditors, he or she has repaid an amount equal to their original credit card debt plus double-digit interest, but still owes hundreds or thousands of dollars because of penalties.
"How is it that the person who wants to do right ends up so worse off?" Cleveland Municipal Judge Robert J. Triozzi said last fall when he ruled against Discover in the company's breach-of-contract suit against another struggling credit cardholder, Ruth M. Owens.
Owens tried for six years to pay off a $1,900 balance on her Discover card, sending the credit company a total of $3,492 in monthly payments from 1997 to 2003. Yet her balance grew to $5,564.28, even though, like Hosseini, she never used the card to buy anything more. Of that total, over-limit penalty fees alone were $1,158.
Triozzi denied Discover's claim, calling its attempt to collect more money from Owens "unconscionable."
The bankruptcy measure now being debated in Congress has been sought for nearly eight years by the credit card industry. Twice in that time, versions of it have passed both the House and Senate. Once, President Bill Clinton refused to sign it, saying it was unfair, and once the House reversed its vote after Democrats attached an amendment that would prevent individuals such as anti-abortion protesters from using bankruptcy as a shield against court-imposed fines.
http://www.washingtonpost.com/wp-dyn/articles/A10361-2005Mar5.html
Your Resource for Credit Card Information Online
My name is Scott and I have worked in the credit card industry for over 8 years. I've answered thousands of customer questions about credit cards and assisted in resolving customer problems. I want to share the helpful knowledge I have gained with you. With this knowledge, you will get the most out of the cards you possess and understand the concepts of credit for all future cards you may apply for.
If you're like me, I got my very first card as soon as I turned 18. I had no credit at the time, therefore I assumed a secured card would be my only option. At the time, I had no idea where I could get a secured card. Only through a friend did I find a bank that offered one. Excitement raged after receiving the card. It thrilled me that I could buy now and pay later. Little did I know at that time!
The credit card industry grows daily with many banks offering new ways to entice customers into applying for their cards. Banks may offer incentives such as rewards which may include:
# Frequent Flyer Miles
# Cash Back
# Travel Rewards
# Points Redeemable for Merchandise and Gift Cards
With many of these reward cards, you'll receive bonuses for just signing up and making your first purchase. Banks may also solicit customers with low rate balance transfer offers. A balance transfer offer allows you to move outstanding balances from your current credit accounts to the brand new card at a very low, if not 0% APR. Consumer beware!
That's just the beginning. Do you own a business? Are you a student? Do you have bad credit? Card companies also cater to you in each of these circumstances.
Confused yet? It's easy to get frustrated with all these options. I want to supply you with information you may or may not already have regarding credit cards. Let me guide you through the process of understanding a card, how to use it, and what to expect in return. Don't take after myself when I was 18 and get left in the dark about credit cards.
http://www.credit-card-customer-care.com/
If you're like me, I got my very first card as soon as I turned 18. I had no credit at the time, therefore I assumed a secured card would be my only option. At the time, I had no idea where I could get a secured card. Only through a friend did I find a bank that offered one. Excitement raged after receiving the card. It thrilled me that I could buy now and pay later. Little did I know at that time!
The credit card industry grows daily with many banks offering new ways to entice customers into applying for their cards. Banks may offer incentives such as rewards which may include:
# Frequent Flyer Miles
# Cash Back
# Travel Rewards
# Points Redeemable for Merchandise and Gift Cards
With many of these reward cards, you'll receive bonuses for just signing up and making your first purchase. Banks may also solicit customers with low rate balance transfer offers. A balance transfer offer allows you to move outstanding balances from your current credit accounts to the brand new card at a very low, if not 0% APR. Consumer beware!
That's just the beginning. Do you own a business? Are you a student? Do you have bad credit? Card companies also cater to you in each of these circumstances.
Confused yet? It's easy to get frustrated with all these options. I want to supply you with information you may or may not already have regarding credit cards. Let me guide you through the process of understanding a card, how to use it, and what to expect in return. Don't take after myself when I was 18 and get left in the dark about credit cards.
http://www.credit-card-customer-care.com/
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