About the Author
For more resources about merchant account services or about credit card processing terminals or even about merchant account provider please review these links.
Friday, October 26, 2007
Credit card terminals
A credit card terminal is a small machine designed with the purpose of authenticating credit cards that customers use when paying for goods or services. This device is of great use to business owners who specialize in retail sales. The credit card terminal checks the validity of the card and whether there is a block or hold on it or not. It does this by communicating with the card issuer. Many of the terminal manufacturers cooperate with banking services so that businesses are provided with appropriate machines when they open an account to process the credit cards that customers use. A credit card terminal is needed where the sale takes place. Every credit card has a magnetic strip embedded in it. The customer will swipe the card through the terminal and so the information on the magnetic strip will be read. Communication is ensured between the terminal and a central computer that approves the transaction if the credit card is valid and the customer has enough credit to make that transaction. If a problem occurs, it will be signaled by an error code. Possible reasons for this to happen are the invalidity of the card, the impossibility for it to be read or the fact that it might be stolen. Two basic styles are used when it comes to the design of a credit card terminal. There are terminals that are only operated by the clerk and others operated by the customer. In the first case the terminal may be integrated into a point of sale system and data regarding the transaction are transmitted to the computer in an instant. In the second case, the supermarket check stands are an example. A credit card terminal with debit card abilities is designed to be used by the customer, who will enter his/her personal identification number (PIN) when asked to.
Credit card companies' evil tricks
Some of the worst offenses: Huge fees exceed card issuers' costs and risks. Interest rates aren't disclosed to card applicants. Rates get jacked up even if you pay just hours late.
Parents spend the first several years of children's lives teaching them how to play fair. By the time we hit elementary school, most of us are pretty good at knowing what's just and what's not.
That sense of fair versus foul, though, tends to get tangled up in the world of credit cards. Some practices that seem egregious at first glance actually make sense when you understand their rationale. Other policies don't hold up so well to scrutiny, even though they're widely accepted in the industry.
What makes matters more complicated is that a few credit card issuers are bad to the bone. Some of the companies that have the most consumer-friendly practices in one area turn around and punish their customers unfairly in another.
After many years of covering this industry, fielding reader complaints, talking to the issuers and listening to consumer advocates, I've drawn up the following list of what I consider fair and foul play, plus what you can do about it.
Mystery interest rates
Fair play: charging different customers different interest rates or offering different terms, based on their credit histories.
Foul play: not telling folks upfront what interest rates or terms they'll get.
If you have a good credit history, you should get a good rate, not one that's been inflated to cover the risks of others who haven't been as responsible.
But no one should have to play Russian roulette when applying for a card. Though some issuers, including Citibank and Capital One, usually tell you in advance what rate you'll get if approved, others -- including Chase, Discover, American Express, HSBC and Bank of America -- typically only offer a range of possible rates. You might get a rate that's in the single digits or one that's over 20%.
"In the best of all worlds, you would fill out an application, be told what interest rate you are approved for, then be given the chance to OK that rate or decline the offer. It rarely works that way," said Justin McHenry, the research director for IndexCreditCards.com. "Oftentimes you won't even know what rate you've been approved for until the card shows up in the mail."
Many times the terms are variable as well. A card may offer 0% for "up to" a year, for example, but once you've applied, you may get the touted rate for as little as three months, said Jeffrey Weber of SmartCreditChoices.com.
Credit limits are almost never disclosed in advance, either. This can be a serious issue for people transferring balances because shifting debt from a high-limit card to a lower-limit card can damage their credit scores.
* Video on MSN Money: How's your credit?
Your best move: Don't hang on to a card you don't want. Though closing cards can never help your FICO credit scores and may hurt them, the damage isn't likely to be as serious with a newly issued card as it might be with one you've held for many years.
But you shouldn't apply willy-nilly for cards, either, because each application can potentially ding your scores. Also, some lenders may look askance at a borrower who rapidly opens and closes accounts, McHenry said, thinking such customers will be unprofitable.
If you're looking for a lower rate, first contact your existing issuer and negotiate for one. Read "Get a better deal . . . with a threat" for tips. If you plan to apply for a new card, know your FICO scores so you have an idea of what interest rates you're likely to get. You can get a ballpark idea of your scores from MSN Money's credit score estimator; generally, folks with FICOs above 720 get the best credit card rates and terms.
Slanted reports
Fair play: reporting your missteps to credit bureaus.
Foul play: reporting half-truths.
The credit reporting system in the United States has some serious flaws. Creditors wield too much power, and it's too hard for consumers to fix mistakes.
But overall, the system has succeeded in making credit more widely available, which is a boon to savvy consumers. If you get credit and use it responsibly, you can build a credit history that allows you to get the loans you need to buy a home, build a business or accomplish other goals.
What irks me, though, are lenders that deliberately make their customers look like worse credit risks than they are. Some of the worst offenders are issuers that don't report their customers' on-time payment records at all. Next on the list are those that don't report their customers' credit limits, like Capital One.
When a lender doesn't report a customer's credit limit, the bureaus typically use the "highest balance charged" as a proxy for the limit. The problem comes when borrowers charge about the same amount each month.
Here's how it works: If you use $300 of a $1,000 limit that's properly reported, the all-important credit-scoring formulas figure your "credit utilization" at 30%, and that's good. If your limit isn't reported and the highest balance you ever had was $300, it looks like you're using 100% of your available credit -- and that's bad.
It makes sense not to report a credit limit when a card has no preset spending limit, as is the case with many American Express cards. But folks that have those types of cards tend to have pretty good credit to begin with, so the lack of an accurate credit limit on one account isn't likely to hurt much. The people who really get crunched are the people with short or troubled credit histories who are trying to do things right but are unknowingly being penalized by their credit issuers' practices.
Your best moves: If your issuer isn't properly listing your credit limits, you can request that they do so. If your issuer is Capital One, though, you're out of luck. You can either charge up a big balance to reset your "highest balance charged" or switch to another card issuer.
http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/CreditCardCompaniesEvilTricks.aspx
Parents spend the first several years of children's lives teaching them how to play fair. By the time we hit elementary school, most of us are pretty good at knowing what's just and what's not.
That sense of fair versus foul, though, tends to get tangled up in the world of credit cards. Some practices that seem egregious at first glance actually make sense when you understand their rationale. Other policies don't hold up so well to scrutiny, even though they're widely accepted in the industry.
What makes matters more complicated is that a few credit card issuers are bad to the bone. Some of the companies that have the most consumer-friendly practices in one area turn around and punish their customers unfairly in another.
After many years of covering this industry, fielding reader complaints, talking to the issuers and listening to consumer advocates, I've drawn up the following list of what I consider fair and foul play, plus what you can do about it.
Mystery interest rates
Fair play: charging different customers different interest rates or offering different terms, based on their credit histories.
Foul play: not telling folks upfront what interest rates or terms they'll get.
If you have a good credit history, you should get a good rate, not one that's been inflated to cover the risks of others who haven't been as responsible.
But no one should have to play Russian roulette when applying for a card. Though some issuers, including Citibank and Capital One, usually tell you in advance what rate you'll get if approved, others -- including Chase, Discover, American Express, HSBC and Bank of America -- typically only offer a range of possible rates. You might get a rate that's in the single digits or one that's over 20%.
"In the best of all worlds, you would fill out an application, be told what interest rate you are approved for, then be given the chance to OK that rate or decline the offer. It rarely works that way," said Justin McHenry, the research director for IndexCreditCards.com. "Oftentimes you won't even know what rate you've been approved for until the card shows up in the mail."
Many times the terms are variable as well. A card may offer 0% for "up to" a year, for example, but once you've applied, you may get the touted rate for as little as three months, said Jeffrey Weber of SmartCreditChoices.com.
Credit limits are almost never disclosed in advance, either. This can be a serious issue for people transferring balances because shifting debt from a high-limit card to a lower-limit card can damage their credit scores.
* Video on MSN Money: How's your credit?
Your best move: Don't hang on to a card you don't want. Though closing cards can never help your FICO credit scores and may hurt them, the damage isn't likely to be as serious with a newly issued card as it might be with one you've held for many years.
But you shouldn't apply willy-nilly for cards, either, because each application can potentially ding your scores. Also, some lenders may look askance at a borrower who rapidly opens and closes accounts, McHenry said, thinking such customers will be unprofitable.
If you're looking for a lower rate, first contact your existing issuer and negotiate for one. Read "Get a better deal . . . with a threat" for tips. If you plan to apply for a new card, know your FICO scores so you have an idea of what interest rates you're likely to get. You can get a ballpark idea of your scores from MSN Money's credit score estimator; generally, folks with FICOs above 720 get the best credit card rates and terms.
Slanted reports
Fair play: reporting your missteps to credit bureaus.
Foul play: reporting half-truths.
The credit reporting system in the United States has some serious flaws. Creditors wield too much power, and it's too hard for consumers to fix mistakes.
But overall, the system has succeeded in making credit more widely available, which is a boon to savvy consumers. If you get credit and use it responsibly, you can build a credit history that allows you to get the loans you need to buy a home, build a business or accomplish other goals.
What irks me, though, are lenders that deliberately make their customers look like worse credit risks than they are. Some of the worst offenders are issuers that don't report their customers' on-time payment records at all. Next on the list are those that don't report their customers' credit limits, like Capital One.
When a lender doesn't report a customer's credit limit, the bureaus typically use the "highest balance charged" as a proxy for the limit. The problem comes when borrowers charge about the same amount each month.
Here's how it works: If you use $300 of a $1,000 limit that's properly reported, the all-important credit-scoring formulas figure your "credit utilization" at 30%, and that's good. If your limit isn't reported and the highest balance you ever had was $300, it looks like you're using 100% of your available credit -- and that's bad.
It makes sense not to report a credit limit when a card has no preset spending limit, as is the case with many American Express cards. But folks that have those types of cards tend to have pretty good credit to begin with, so the lack of an accurate credit limit on one account isn't likely to hurt much. The people who really get crunched are the people with short or troubled credit histories who are trying to do things right but are unknowingly being penalized by their credit issuers' practices.
Your best moves: If your issuer isn't properly listing your credit limits, you can request that they do so. If your issuer is Capital One, though, you're out of luck. You can either charge up a big balance to reset your "highest balance charged" or switch to another card issuer.
http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/CreditCardCompaniesEvilTricks.aspx
Factors That Trigger Credit Card Rate Hikes
Are credit card companies trying to scam you? On the one hand, they provide a valuable service that gives you the added convenience of being able to purchase items and services you need and sometimes don't need and to pay them off in a manner that best suits you.
On the other hand, some credit card issuers are trying to scam you and they do everything in their power - legal or otherwise to do it. Legal or not, many of the practices they follow are clearly unethical and unless you are a contract lawyer you couldn't determine how they planned on scamming you anyway because they hide everything in the countless pages of fine print that comes with every cardholder agreement.
According to Harvard Law Professor Elizabeth Warren, the credit card companies are misleading consumers and making up their own rules. "These guys have figured out the best way to compete is to put a smiley face in your commercials, a low introductory rate, and hire a team of MBAs to lay traps in the fine print."
The problem is that the industry is operating without fear of penalty. There's no regulator or customer who can bring this industry to task.
Deadbeat or Revolver
In the credit card industry there are two types of customers - the deadbeat and the revolver. Don't take this the wrong way but hopefully you're a deadbeat because in the lingo of the industry a deadbeat is someone who uses their credit cards the way they are suppose to.
As in they pay-off their balances each month and therefore incur no interest charges. No profit in that scenario and thus, if you pay-off your balances each month (about one-third of Americans do) then you should be proud to be called a deadbeat because you are using your credit cards wisely.
On the other hand, the majority of Americans are called "revolvers". A revolver is someone who carries over a balance and is considered to be "the sweet spot" of the banking industry. This "sweet spot" continues to expand as the average credit card debt among American households has grown to about $8,000 -- which is more than double what it was just ten years ago. This debt has helped generate record profits for the credit card industry in 2004, an estimated $30 billion before taxes.
The 0% Interest Offer
The game today is the "0% interest for 6 months" offer. Once again, this can be a legitimate and great deal if you know how to play the game ("deadbeat") but if you don't ("revolver") it will end up costing you more money in the long run because after the initial 6 months the rate will usually jump up to a much higher rate than the normal purchase rate.
Rate Hike Triggers
The industry provides many reasons to justify rate hikes and in all fairness, some are actually valid. However, many are not and are just flat-out deceptive. One Banking Association spokesman said that, "Because the credit card business is unsecured lending, the risks associated with the business must be offset."
Industry critics say that an ever growing share of the industry's revenues come from deceptive tactics. One example is how the "default" terms are spelled out in the fine print of the cardholder agreements. The terms and conditions can be changed at any time, for any reason with only a 15 day notice.
Here are just some of things that can trigger late fees, penalties or rate hikes.
Late Payments
If you don't pay your bill on time, the company seems quite justified in taking away your good rate. After all, you've broken the rules of your contract. The problem lies in the fact that penalty fees and rates are sometimes triggered by a single lapse or a payment that arrives just a few days, even a few hours late or a charge that exceeds the credit line by a few dollars or a loan from another creditor which renders the cardholder "overextended" as defined by the three all-powerful credit bureaus - Experian, Equifax and TransUnion.
In addition, the industry is raising interest rates, adding new fees and generating payment due dates on holidays and Sundays with their only motive being of tripping you up and hoping it will result in you making a payment late. The industry has become a very anti-consumer marketplace.
Spending on Other Cards
If you think that one card issuer doesn't know with whom and how much you spend on other cards then think again. As a result, if you exceed your credit limit or make a late payment on another card it can trigger what's called a "universal default clause" and result in higher rates on other cards - cards that you may have had for years and never had a late payment.
Defaulting on Non Credit Card Bills
Defaulting on any bill (utilities, cell phone, mortgage, etc) can trigger higher interest rates on your credit cards. Every bill you have is tracked by the 3 primary credit bureaus and with the emergence of technology your information is readily available to any card issuer. So if you default or pay late on anything, they'll spot it and it could result in higher rates on some or all of your credit cards.
Some experts say the profitability of credit cards began twenty-five years ago when the banking industry successfully eliminated a critical restriction: the limit on the interest rate a lender can charge a borrower. Deregulation, coupled with a revolution in technology that enables the almost real-time tracking of personal financial information and the emergence of nationwide banking, has facilitated the widening availability of credit cards across the economic spectrum. But for some, the cost of credit is often far greater than it appears.
If your rate is suddenly increased, the first thing you should do is cancel the card and move the balance somewhere else. If you can't do that for whatever reason, then contact your local consumer protection agency and if all else fails you may need to contact a lawyer.
This article may be reproduced only in its entirety.
Article Source: http://www.a1-optimization.com/articles
Kevin Erickson is an entrepreneur and writer. To read other articles he's written visit: Consolidate Debt | Eliminate Credit Card Debt | Managing Debt
http://www.a1-optimization.com/articles/Article/Factors-That-Trigger-Credit-Card-Rate-Hikes/349
On the other hand, some credit card issuers are trying to scam you and they do everything in their power - legal or otherwise to do it. Legal or not, many of the practices they follow are clearly unethical and unless you are a contract lawyer you couldn't determine how they planned on scamming you anyway because they hide everything in the countless pages of fine print that comes with every cardholder agreement.
According to Harvard Law Professor Elizabeth Warren, the credit card companies are misleading consumers and making up their own rules. "These guys have figured out the best way to compete is to put a smiley face in your commercials, a low introductory rate, and hire a team of MBAs to lay traps in the fine print."
The problem is that the industry is operating without fear of penalty. There's no regulator or customer who can bring this industry to task.
Deadbeat or Revolver
In the credit card industry there are two types of customers - the deadbeat and the revolver. Don't take this the wrong way but hopefully you're a deadbeat because in the lingo of the industry a deadbeat is someone who uses their credit cards the way they are suppose to.
As in they pay-off their balances each month and therefore incur no interest charges. No profit in that scenario and thus, if you pay-off your balances each month (about one-third of Americans do) then you should be proud to be called a deadbeat because you are using your credit cards wisely.
On the other hand, the majority of Americans are called "revolvers". A revolver is someone who carries over a balance and is considered to be "the sweet spot" of the banking industry. This "sweet spot" continues to expand as the average credit card debt among American households has grown to about $8,000 -- which is more than double what it was just ten years ago. This debt has helped generate record profits for the credit card industry in 2004, an estimated $30 billion before taxes.
The 0% Interest Offer
The game today is the "0% interest for 6 months" offer. Once again, this can be a legitimate and great deal if you know how to play the game ("deadbeat") but if you don't ("revolver") it will end up costing you more money in the long run because after the initial 6 months the rate will usually jump up to a much higher rate than the normal purchase rate.
Rate Hike Triggers
The industry provides many reasons to justify rate hikes and in all fairness, some are actually valid. However, many are not and are just flat-out deceptive. One Banking Association spokesman said that, "Because the credit card business is unsecured lending, the risks associated with the business must be offset."
Industry critics say that an ever growing share of the industry's revenues come from deceptive tactics. One example is how the "default" terms are spelled out in the fine print of the cardholder agreements. The terms and conditions can be changed at any time, for any reason with only a 15 day notice.
Here are just some of things that can trigger late fees, penalties or rate hikes.
Late Payments
If you don't pay your bill on time, the company seems quite justified in taking away your good rate. After all, you've broken the rules of your contract. The problem lies in the fact that penalty fees and rates are sometimes triggered by a single lapse or a payment that arrives just a few days, even a few hours late or a charge that exceeds the credit line by a few dollars or a loan from another creditor which renders the cardholder "overextended" as defined by the three all-powerful credit bureaus - Experian, Equifax and TransUnion.
In addition, the industry is raising interest rates, adding new fees and generating payment due dates on holidays and Sundays with their only motive being of tripping you up and hoping it will result in you making a payment late. The industry has become a very anti-consumer marketplace.
Spending on Other Cards
If you think that one card issuer doesn't know with whom and how much you spend on other cards then think again. As a result, if you exceed your credit limit or make a late payment on another card it can trigger what's called a "universal default clause" and result in higher rates on other cards - cards that you may have had for years and never had a late payment.
Defaulting on Non Credit Card Bills
Defaulting on any bill (utilities, cell phone, mortgage, etc) can trigger higher interest rates on your credit cards. Every bill you have is tracked by the 3 primary credit bureaus and with the emergence of technology your information is readily available to any card issuer. So if you default or pay late on anything, they'll spot it and it could result in higher rates on some or all of your credit cards.
Some experts say the profitability of credit cards began twenty-five years ago when the banking industry successfully eliminated a critical restriction: the limit on the interest rate a lender can charge a borrower. Deregulation, coupled with a revolution in technology that enables the almost real-time tracking of personal financial information and the emergence of nationwide banking, has facilitated the widening availability of credit cards across the economic spectrum. But for some, the cost of credit is often far greater than it appears.
If your rate is suddenly increased, the first thing you should do is cancel the card and move the balance somewhere else. If you can't do that for whatever reason, then contact your local consumer protection agency and if all else fails you may need to contact a lawyer.
This article may be reproduced only in its entirety.
Article Source: http://www.a1-optimization.com/articles
Kevin Erickson is an entrepreneur and writer. To read other articles he's written visit: Consolidate Debt | Eliminate Credit Card Debt | Managing Debt
http://www.a1-optimization.com/articles/Article/Factors-That-Trigger-Credit-Card-Rate-Hikes/349
Credit Cards with Rewards
Some credit cards offer more than just a low interest rate. That's right. Some credit cards offer great rewards just for using them. For example, lets take a look at Blue from American Express.
With American Express's Blue credit card, you earn one point for almost every dollar you charge with the card whether you are purchasing gas or having dinner with friends. Points can then be exchanged for entertainment, retail, and travel rewards.
Credit card companies also have speciality reward credit cards. These types of credit cards allow you to earn points or rewards when buying a specific item or category of items. For example, there are gas (earn rewards or points for gasoline purchases) and travel (earn rewards or points for hotel stays and plane flights) speciality reward credit cards. These two examples of speciality reward credit cards would be ideal for someone who does a lot of driving or traveling.
So, when looking for a credit card why not choose one that offers you rewards or points just for using it? If you are comparing credit cards with almost the same interest rate, choose the one that offers you points or rewards for what you purchase or for what you purchase most.
Article Source: http://www.a1-optimization.com/articles
Find personal credit cards and business credit cards that offer rewards at The Credit Card Offer.
http://www.a1-optimization.com/articles/Article/Credit-Cards-with-Rewards/872
With American Express's Blue credit card, you earn one point for almost every dollar you charge with the card whether you are purchasing gas or having dinner with friends. Points can then be exchanged for entertainment, retail, and travel rewards.
Credit card companies also have speciality reward credit cards. These types of credit cards allow you to earn points or rewards when buying a specific item or category of items. For example, there are gas (earn rewards or points for gasoline purchases) and travel (earn rewards or points for hotel stays and plane flights) speciality reward credit cards. These two examples of speciality reward credit cards would be ideal for someone who does a lot of driving or traveling.
So, when looking for a credit card why not choose one that offers you rewards or points just for using it? If you are comparing credit cards with almost the same interest rate, choose the one that offers you points or rewards for what you purchase or for what you purchase most.
Article Source: http://www.a1-optimization.com/articles
Find personal credit cards and business credit cards that offer rewards at The Credit Card Offer.
http://www.a1-optimization.com/articles/Article/Credit-Cards-with-Rewards/872
Choosing the right credit card, without getting burned - By: The Rich Dude
Choosing the right credit card can be a difficult task. There are so many to choose from. It seems that I get a new credit card offer nearly every week. So in an effort to help determine which card is for me, I start by sorting out the facts.
First off, the selection begins with the type of offering. Choosing the right card is critical to getting the best deal. There are Airline Cards, No Annual Fee Cards, Balance Transfer Cards, Cash Back Cards, Business Cards, Student Cards, Reward Cards, Bad/Damaged Credit and 0% APR Cards.
As you can see the list is long. To begin, you must evaluate your use of the card. If you travel, the Airline Card is a natural choice. You will receive "Miles" for every dollar you spend. No Annual Fee Cards offer no fees. Just sign up and you are ready to go. This can save anywhere from $25.00 $200.00 anually, depending on the card. Balance Transfer Cards are great if you want to move from one card company to another. Say your current card offered a very low APR for a "honeymoon" period. Now they have bumped the rate to the current market rate, often UP TO 29%! Just transfer the balance to a new card and start the honeymoon all over. Cash Back Cards are great if you spen d a LOT of money. Often you can get a rebate of up to 5%! A nice savings over the long term. Business Cards often have very HIGH limits of over $100,000. This is nice for those short term purchases or bridging a loan until permanent finance can be located. This works great for purchasing equipment or goods on a short term notice. Student Cards are great for establishing credit for new borrowers. The limits are often low to avoid running up high balances while your income is limited. Reward Cards often have a catalog of goods associated with them. While you spend money, you gain points good for future "rewards". Bad Credit/Damaged Credit cards are great if you need to establish credit after a bankruptcy or if your credit report contains "knicks". Establishing new credit and properly using it, can often lead to getting a fresh start. Finally the best are 0% APR cards. These are reserved for those with the best credit. It is like FREE money, that you don't have to pay pack right away. GREAT. It allows you to purchase items today, just like cash and defer payment for a time down the road.
Whatever you do, beware of "hidden fees". Those nasty fees usually escallate when you "violate" a policy in your credit card terms. Like missing a payment, paying late or going over the limit. ALL nasty little events that can void your credit card and turn it into a FEE generating, 29% per year monster.
Manage your credit. Choose wisely!
-The Rich Dude.
http://creditcardselections.info
Article Source: http://www.a1-optimization.com/articles
-The Rich Dude. creditcardselections.info
Article Submission done by: www.articles-submit.com
Courtesy of:Affilliate Name
http://www.a1-optimization.com/articles/Article/Choosing-the-right-credit-card--without-getting-burned---By--The-Rich-Dude/931
First off, the selection begins with the type of offering. Choosing the right card is critical to getting the best deal. There are Airline Cards, No Annual Fee Cards, Balance Transfer Cards, Cash Back Cards, Business Cards, Student Cards, Reward Cards, Bad/Damaged Credit and 0% APR Cards.
As you can see the list is long. To begin, you must evaluate your use of the card. If you travel, the Airline Card is a natural choice. You will receive "Miles" for every dollar you spend. No Annual Fee Cards offer no fees. Just sign up and you are ready to go. This can save anywhere from $25.00 $200.00 anually, depending on the card. Balance Transfer Cards are great if you want to move from one card company to another. Say your current card offered a very low APR for a "honeymoon" period. Now they have bumped the rate to the current market rate, often UP TO 29%! Just transfer the balance to a new card and start the honeymoon all over. Cash Back Cards are great if you spen d a LOT of money. Often you can get a rebate of up to 5%! A nice savings over the long term. Business Cards often have very HIGH limits of over $100,000. This is nice for those short term purchases or bridging a loan until permanent finance can be located. This works great for purchasing equipment or goods on a short term notice. Student Cards are great for establishing credit for new borrowers. The limits are often low to avoid running up high balances while your income is limited. Reward Cards often have a catalog of goods associated with them. While you spend money, you gain points good for future "rewards". Bad Credit/Damaged Credit cards are great if you need to establish credit after a bankruptcy or if your credit report contains "knicks". Establishing new credit and properly using it, can often lead to getting a fresh start. Finally the best are 0% APR cards. These are reserved for those with the best credit. It is like FREE money, that you don't have to pay pack right away. GREAT. It allows you to purchase items today, just like cash and defer payment for a time down the road.
Whatever you do, beware of "hidden fees". Those nasty fees usually escallate when you "violate" a policy in your credit card terms. Like missing a payment, paying late or going over the limit. ALL nasty little events that can void your credit card and turn it into a FEE generating, 29% per year monster.
Manage your credit. Choose wisely!
-The Rich Dude.
http://creditcardselections.info
Article Source: http://www.a1-optimization.com/articles
-The Rich Dude. creditcardselections.info
Article Submission done by: www.articles-submit.com
Courtesy of:Affilliate Name
http://www.a1-optimization.com/articles/Article/Choosing-the-right-credit-card--without-getting-burned---By--The-Rich-Dude/931
The Proper Use of Student Credit Cards
With the dawn of the 'cashless' era, student credit cards have become a fact of college life. Students can no longer do without a credit card. Many credit card companies set up stalls within the college campus during the first semester to lure students. Just like the ordinary card, student credit cards carry a credit limit, a grace period, an annual fee and overdue charges.
When applying for a credit card, every student must remember that he or she is laying the foundation of his creditworthiness. The financial reputation thus established will influence future transactions, like an apartment rental, insurance, car loans etc. Any future cards you acquire will be offered on the basis of your reliability as ascertained by these records.
Before you apply for a student credit card, check out the annual fee, the interest charge, the transaction fee and any other charges levied. Credit terms vary according to the issuer. Consider whether you will be paying off your dues monthly or whether you will pay off purchases over time. To protect your student credit record, take care to use the card properly by:
Keep track of all charges
Pay dues monthly
Never exceed credit limit
Avoid over-limit fee
If you default and do not pay off your charges, a credit report statement that contains details of your delinquency will be issued by a credit-reporting agency. Any legitimate business can access this credit report in the future. But without your prior approval, student credit card creditors, employers and insurers cannot get these reports. Negative information can stay on in your report for 7 years and bankruptcy can stay till 10 years. If ever the debt against your student credit card gets out of control, contact the issuer and work out a modified payment plan whereby you will be able to pay manageable and reduced amounts.
A majority of students use their student credit cards to 'swipe' almost anything without forethought, and thereby end up still paying off their credit card debts well into their 30s. Undoubtedly, student credit cards make life easy for the cautious student who shops intelligently and manages money carefully.
Article Source: http://www.a1-optimization.com/articles
Randy Savage is the webmaster of www.the-best-of-credit-cards.com where consumers can compare credit card features and benefits. Students can compare student credit cards at www.the-best-of-credit-cards.com/student-credit-cards.html
http://www.a1-optimization.com/articles/Article/The-Proper-Use-of-Student-Credit-Cards/1029
When applying for a credit card, every student must remember that he or she is laying the foundation of his creditworthiness. The financial reputation thus established will influence future transactions, like an apartment rental, insurance, car loans etc. Any future cards you acquire will be offered on the basis of your reliability as ascertained by these records.
Before you apply for a student credit card, check out the annual fee, the interest charge, the transaction fee and any other charges levied. Credit terms vary according to the issuer. Consider whether you will be paying off your dues monthly or whether you will pay off purchases over time. To protect your student credit record, take care to use the card properly by:
Keep track of all charges
Pay dues monthly
Never exceed credit limit
Avoid over-limit fee
If you default and do not pay off your charges, a credit report statement that contains details of your delinquency will be issued by a credit-reporting agency. Any legitimate business can access this credit report in the future. But without your prior approval, student credit card creditors, employers and insurers cannot get these reports. Negative information can stay on in your report for 7 years and bankruptcy can stay till 10 years. If ever the debt against your student credit card gets out of control, contact the issuer and work out a modified payment plan whereby you will be able to pay manageable and reduced amounts.
A majority of students use their student credit cards to 'swipe' almost anything without forethought, and thereby end up still paying off their credit card debts well into their 30s. Undoubtedly, student credit cards make life easy for the cautious student who shops intelligently and manages money carefully.
Article Source: http://www.a1-optimization.com/articles
Randy Savage is the webmaster of www.the-best-of-credit-cards.com where consumers can compare credit card features and benefits. Students can compare student credit cards at www.the-best-of-credit-cards.com/student-credit-cards.html
http://www.a1-optimization.com/articles/Article/The-Proper-Use-of-Student-Credit-Cards/1029
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