The credit card fees battle has been won! Or has it? Credit card bills now have 'honesty boxes'. Credit card providers are now required to spell out to us how much interest we're being charged and their fees for late payment, etc., have been limited to no more than £12 a time. In practice that means no less than £12 as well but it's still comfortably less than half what many credit cards used to charge.
But if the battle's been won, how come so many of us are still paying so much in late payment charges? One recent survey suggested that one in four of us have incurred a penalty fee on our credit cards in the past year, paying a cumulative total of some £230 million in charges. That’s a lot of £12 fees; more than 19 million of them in fact!
Are you among those who've paid these charges when you didn't need to? What you may have been aware of in the wake of that cap on charges are a couple of things happening. First, the interest rates on several credit cards went up and quite a number of the more attractive introductory offers disappeared. Second, if the grace period between receiving your credit card bill and payment being required seems a little shorter than it used to be, then it probably is.
* Compare credit card rates
An expensive £12 penalty
But how serious is landing yourself with a £12 penalty payment? An irritant perhaps, you may think, but not the end of the world. It might not be the end of the world but it could be the end of your special rate period. Check the small print. Many credit card issuers reserve the right to bounce you out of a zero or low per cent deal into a standard charging deal if you break the terms and conditions. Making a late payment will break those terms and conditions. So £12 could turn into a very expensive penalty indeed.
The easy way to make sure your credit card bill is always paid on time is to set up a direct debit to make the minimum payment. This is not a recommendation to make only the minimum payment! If you only make the minimum payment it will take you much longer to clear your credit card debt and you'll end up paying far more in interest than is good for you. What it does mean is that you'll never be hit by a late payment charge ever again (assuming there's money in your bank account to cover the bill).
Once your direct debit is in place you still need to make a payment when your credit card statement arrives - but simply pay whatever extra above and beyond the minimum that makes financial sense to you.
If your credit card bill comes at the 'wrong' time of the month for you - out of sync with your pay, for example - then you may be able to request a different statement date from your credit card provider which could make life easier for you.
Benevolent Barclaycard
In fact, just to prove that credit card issuers are not all in league with the devil, Barclaycard announced today that it is waiving monthly minimum payments for customers in flood-affected areas.
Amer Sajed, Barclaycard Managing Director for UK Cards, said, "Where customers have been hit by floods and power cuts, I imagine making a credit card payment is the last thing on their mind. Waiving the monthly payment means there is one less thing for our customers to worry about."
Barclaycard minimum payments have been waived for customers in all affected areas for the next 30 days. Interest will not be payable on the minimum amount due and no late fee will be charged. Just remember to make the payment on time next month!
http://money.uk.msn.com/creditcards/articles/article.aspx?cp-documentid=5769763
Wednesday, October 31, 2007
Which Are The Best Services on The Net That Offer Online Credit Card Processing?
The expansion of businesses today onto the Internet means that companies need to be able to do online credit card processing - or they will lose business. Since no one wants to lose business unnecessarily,
there needs to be a way to be able to have credit card processing online - especially since so many people use them. This article will show you some of the processing services that are available, and a little information about them to help you decide which one is best for you.
Business owners will understand what it means when it is possible that by being able to process credit cards online securely, that you could see an increase in your profits anywhere from 50% to 400%. After seeing that, why would any business owner not want to add some kind of online credit card processing power to their online business?
Why You Need Credit Card Online Processing
Your business suffers if you cannot take payments from customers that are ready to buy. Here are three reasons why your business needs this capability:
* Because your customers want secure transactions
* Because transactions can be made from just about anywhere
* Because it can accept just about any kind of payment
The Top Providers of Card Processing Services.
There is quite a number of ecommerce credit card processing companies, but we will select some of the top ones that have been around for a little while. This information will allow you to compare credit card processing companies.
Card Service
This company has received the best reviews of them all - it has been given an approval rate of 98%, from its users. One feature that stands out is the time they take to get your business ready to use credit cards. They only take one day, whereas other companies may take up to 5 or 6.
Merchant Warehouse
This one is right next to the top in its ratings. With an approval rating that is actually at 99%, it has the highest. One problem, though, which may be remedied soon, is that they take 4 to 5 days to get you ready for business.
Merchant Accounts Express
This company comes in third in ratings. Its advantage, even though it does charge a set-up fee, is that it has the lowest monthly rates, as well as a 98% approval rate.
Other online credit card processing companies that are in the top ten, in their order of ranking, include:
* Electronic Transactions, Inc.
* Charge.com
* Merchant Credit Card
* FreeAuthNet.com
* Total Merchant Service
* AmeriMerchant
* Int. Media Solutions
These are just a few of the many companies that offer to enable your business to do online transactions.
The History of Credit Card Processing
The first of the electronic processing systems was offered in 1997. Some of the first companies that offered this service were First Virtual Inc., Cybercash Inc., and Digicash. These later were not able to make a sufficient profit. Later Verisign bought out Cybercash.
Recently, however, Ebay has come to an agreement that permitted Paypal (owned by Ebay) to get control of Verisign's e-commerce business. Paypal now controls Verisign.
http://www.transactmoney.com/transaction-articles/online-credit-card-processing.htm
there needs to be a way to be able to have credit card processing online - especially since so many people use them. This article will show you some of the processing services that are available, and a little information about them to help you decide which one is best for you.
Business owners will understand what it means when it is possible that by being able to process credit cards online securely, that you could see an increase in your profits anywhere from 50% to 400%. After seeing that, why would any business owner not want to add some kind of online credit card processing power to their online business?
Why You Need Credit Card Online Processing
Your business suffers if you cannot take payments from customers that are ready to buy. Here are three reasons why your business needs this capability:
* Because your customers want secure transactions
* Because transactions can be made from just about anywhere
* Because it can accept just about any kind of payment
The Top Providers of Card Processing Services.
There is quite a number of ecommerce credit card processing companies, but we will select some of the top ones that have been around for a little while. This information will allow you to compare credit card processing companies.
Card Service
This company has received the best reviews of them all - it has been given an approval rate of 98%, from its users. One feature that stands out is the time they take to get your business ready to use credit cards. They only take one day, whereas other companies may take up to 5 or 6.
Merchant Warehouse
This one is right next to the top in its ratings. With an approval rating that is actually at 99%, it has the highest. One problem, though, which may be remedied soon, is that they take 4 to 5 days to get you ready for business.
Merchant Accounts Express
This company comes in third in ratings. Its advantage, even though it does charge a set-up fee, is that it has the lowest monthly rates, as well as a 98% approval rate.
Other online credit card processing companies that are in the top ten, in their order of ranking, include:
* Electronic Transactions, Inc.
* Charge.com
* Merchant Credit Card
* FreeAuthNet.com
* Total Merchant Service
* AmeriMerchant
* Int. Media Solutions
These are just a few of the many companies that offer to enable your business to do online transactions.
The History of Credit Card Processing
The first of the electronic processing systems was offered in 1997. Some of the first companies that offered this service were First Virtual Inc., Cybercash Inc., and Digicash. These later were not able to make a sufficient profit. Later Verisign bought out Cybercash.
Recently, however, Ebay has come to an agreement that permitted Paypal (owned by Ebay) to get control of Verisign's e-commerce business. Paypal now controls Verisign.
http://www.transactmoney.com/transaction-articles/online-credit-card-processing.htm
Pros and Cons of Secured Student Credit Cards
Many college, and even high school, students have a need for carrying a credit card. Often, however, these students are not yet financially responsible for themselves and still rely on their parents to help take care of their financial responsibilities. Therefore, secured student credit cards may be a great option for parents with children who are still in school. Nonetheless, the pros and cons of secured student credit cards need to weighed in order to determine if they are the right choice for you.
Pro: Secured Student Credit Cards Allow You to Monitor Spending
Secured credit cards are different from traditional credit cards in that you put funds on the credit card ahead of time.
Therefore, the only money that is spent with the card is the money that is put on to it. In other words, a line of credit is not extended. Therefore, you don't have to worry about your child creating a humongous debt that you have to pay for.
In addition to preventing your child from going into debt, a secured student credit card also allows you to set your child up with an allowance.
You can determine how much money you want to give your child to spend each month and you deposit the money onto the card. Depositing money onto these cards is easy. You can set it up so that a portion of your check is deposited onto the credit card each payday. Or, you can send money to the credit card company or deposit the money at select locations.
This makes it much easier to get money to your child quickly if needed.
Con: Secured Student Credit Cards have a Number of Associated Fees
Although secured student credit cards allow you to monitor your child's spending habits, there are a number of fees associated with these guards. Generally, there is a fee to set the account up in the first place. Often, there are also annual fees and even monthly fees. In addition, each time you deposit money onto the card, you are usually assessed a small fee. All of these fees add up and can make the student credit card quite costly.
Of course, these costs are still less then paying late fees or paying a large debt incurred with a line of credit.
Pro: Secured Student Credit Cards Provide Freedom and Flexibility
One of the best pros of credit cards for college students or high school students is that they allow your child to have the freedom and flexibility that is part of being a credit card holder. These cards do not look any different from traditional credit cards and are accepted at all of the same places.
Therefore, your child can use the secured student credit card to purchases necessary items without having to ask you for it or making you have to go out and buy the item.
This is particularly helpful for college students when it comes to purchasing books and other school supplies, as the college may be located pretty far away from home. This makes it highly impractical for you to come to the school to make purchases for your child. Similarly, sending checks can take too long and can make your college student late in purchasing items he or she needs for school.
Pro: Secured Student Credit Cards Teach your Child Financial Responsibility
One of the best perks of a secured student credit card is that it starts your child down the road of financial responsibility.
When you deposit money onto the card, your child has to learn how to responsibly use the money provided. In addition, most secured student credit cards report to credit bureaus, and the report will be in your child's name. This helps to build a credit history for your child, which will make it easier for him or her to acquire loans or other credit cards in the future.
Before applying for a card, however, make sure it does report to these bureaus in order to receive this added benefit.
Pro: Secured Student Credit Cards Allow You to Monitor Spending
Secured credit cards are different from traditional credit cards in that you put funds on the credit card ahead of time.
Therefore, the only money that is spent with the card is the money that is put on to it. In other words, a line of credit is not extended. Therefore, you don't have to worry about your child creating a humongous debt that you have to pay for.
In addition to preventing your child from going into debt, a secured student credit card also allows you to set your child up with an allowance.
You can determine how much money you want to give your child to spend each month and you deposit the money onto the card. Depositing money onto these cards is easy. You can set it up so that a portion of your check is deposited onto the credit card each payday. Or, you can send money to the credit card company or deposit the money at select locations.
This makes it much easier to get money to your child quickly if needed.
Con: Secured Student Credit Cards have a Number of Associated Fees
Although secured student credit cards allow you to monitor your child's spending habits, there are a number of fees associated with these guards. Generally, there is a fee to set the account up in the first place. Often, there are also annual fees and even monthly fees. In addition, each time you deposit money onto the card, you are usually assessed a small fee. All of these fees add up and can make the student credit card quite costly.
Of course, these costs are still less then paying late fees or paying a large debt incurred with a line of credit.
Pro: Secured Student Credit Cards Provide Freedom and Flexibility
One of the best pros of credit cards for college students or high school students is that they allow your child to have the freedom and flexibility that is part of being a credit card holder. These cards do not look any different from traditional credit cards and are accepted at all of the same places.
Therefore, your child can use the secured student credit card to purchases necessary items without having to ask you for it or making you have to go out and buy the item.
This is particularly helpful for college students when it comes to purchasing books and other school supplies, as the college may be located pretty far away from home. This makes it highly impractical for you to come to the school to make purchases for your child. Similarly, sending checks can take too long and can make your college student late in purchasing items he or she needs for school.
Pro: Secured Student Credit Cards Teach your Child Financial Responsibility
One of the best perks of a secured student credit card is that it starts your child down the road of financial responsibility.
When you deposit money onto the card, your child has to learn how to responsibly use the money provided. In addition, most secured student credit cards report to credit bureaus, and the report will be in your child's name. This helps to build a credit history for your child, which will make it easier for him or her to acquire loans or other credit cards in the future.
Before applying for a card, however, make sure it does report to these bureaus in order to receive this added benefit.
About the Author
For more information on Student credit cards, Kim Stevens recommends that you visit CreditCardAssist.com.
Article Source: GoArticles.com
Secured Credit Cards are Easy to Get and
As we have pointed out before, establishing credit can be tricky if you do not already have credit. The first thing any lender wants to do when you apply for an account is to check your credit report. And if you have no credit, there will not be anything on the report that suggests that you are worthy of any. It's a classic "Catch 22" situation. What can you do?
There are several solutions, but the best of them is for you to establish an account with a company that offers a secured credit card. Like the name suggests, such a card is "secured' by cash collateral. When you open your account, you will provide the lender with a cash deposit. This money will be placed into an interest bearing account in your name and as long as you have the card, the money will be held there.
Your card will be issued to you with an available limit that does not exceed the amount of the deposit. In some cases, the limit will be as little as half of the deposit amount, but more often than not, you will be granted a limit of close to the total deposit amount.
These cards differ from prepaid credit cards, where there is no bank account that secures the card. With prepaid cards, the money is actually "loaded" onto the card itself.
Your card has a limit of however much cash you gave them when you purchased the card. These cards may be "reloaded" for repeated use, but they are generally considered to be debit cards and do not help you establish a credit history, although there are some exceptions to this.
Having applied and put up a deposit to secure the account, you will have a credit card that you may use just as anyone else might use one. The card is otherwise indistinguishable from any other "normal" credit card. You will receive monthly bills, and as long as you pay them on time, you will be earning credit in your name and building your FICO credit score. You may continue to use this card for as long as you like, but at some point you will probably want to try to obtain an unsecured credit card.
Unsecured credit cards tend to have lower interest rates than do secured cards. Plus they are less likely to include an annual fee for their use. And of course, they don't tie up some of your cash in a bank account that you cannot touch. For anyone who needs to establish credit, a secured card is the way to go, but you do not want to keep using one any longer than is absolutely necessary. They are just too expensive.
There are several solutions, but the best of them is for you to establish an account with a company that offers a secured credit card. Like the name suggests, such a card is "secured' by cash collateral. When you open your account, you will provide the lender with a cash deposit. This money will be placed into an interest bearing account in your name and as long as you have the card, the money will be held there.
Your card will be issued to you with an available limit that does not exceed the amount of the deposit. In some cases, the limit will be as little as half of the deposit amount, but more often than not, you will be granted a limit of close to the total deposit amount.
These cards differ from prepaid credit cards, where there is no bank account that secures the card. With prepaid cards, the money is actually "loaded" onto the card itself.
Your card has a limit of however much cash you gave them when you purchased the card. These cards may be "reloaded" for repeated use, but they are generally considered to be debit cards and do not help you establish a credit history, although there are some exceptions to this.
Having applied and put up a deposit to secure the account, you will have a credit card that you may use just as anyone else might use one. The card is otherwise indistinguishable from any other "normal" credit card. You will receive monthly bills, and as long as you pay them on time, you will be earning credit in your name and building your FICO credit score. You may continue to use this card for as long as you like, but at some point you will probably want to try to obtain an unsecured credit card.
Unsecured credit cards tend to have lower interest rates than do secured cards. Plus they are less likely to include an annual fee for their use. And of course, they don't tie up some of your cash in a bank account that you cannot touch. For anyone who needs to establish credit, a secured card is the way to go, but you do not want to keep using one any longer than is absolutely necessary. They are just too expensive.
About the Author
Talbert Williams offers debt consolidation referrals and advice. For more information, articles, news, tools and valuable resources on debt solutions, visit this site: http://www.1debtfreedom.com
Article Source: GoArticles.com
Third party credit card processors comparison
90% of all Internet payments are made by credit card, you should get yourself set up with this payment option as quickly as possible. Online businesses can increase sales by as much as 400% right after they gave their buyers this convenient way to pay.
You have two options to accept credit card payment:
1.
Acquire your own Merchant Account
2.
Use a third party credit card processor
You may want to use third party credit card processors if:
*
You sell a limited number of products
*
Your product/service or credit history are not qualified for a merchant account
*
You live outside of US
*
You have little cash on hand
*
You want to get it done with little effort
Instead of waiting for replies, paying setup fees, transaction fees, statement fees, discount fees and the like, you can simply sign up for a third party credit card processor and pay 10-15% of the sale price of each product.
These services are getting more and more popular with small online businesses, especially those just starting out. The transaction fees are usually higher than owning a merchant account, but there is no minimum monthly charge and no hefty deposit requirement so you are only charged on sales you have made.
Also, third party processors often provide some extras such as check payments option, free affiliate program, etc.
Some webmasters just want to do it in the simplest way: sign up with a third party processor, insert several lines of HTML code, and that's it! The service provider will take care of the rest.
The third party credit card processor handles payment by credit card, and sends the vendor a monthly (typically) check, minus various processing fees, which vary from service to service.
You may need some extra features sometimes such as download facilities or sending registration codes. If you ask around, many webmasters will suggest ClickBank which is a good service with large and free affiliates base. But if you need to send buyers unique usernames and passwords, like I do with eBook How to Create A Fortune on the Internet in just 4 Simple Steps, it would be difficult with ClickBank.
Below, I present the calculated processing fees for popular services, for a variety of product prices. Following that is a brief summary of the transaction and other associated fees for each service and extra features. Please note that some services have "setup fees", and most, but not all, charge the vendor each time a customer requests a refund.
http://www.working-at-home-business.com/articles/thirdparty.shtml
You have two options to accept credit card payment:
1.
Acquire your own Merchant Account
2.
Use a third party credit card processor
You may want to use third party credit card processors if:
*
You sell a limited number of products
*
Your product/service or credit history are not qualified for a merchant account
*
You live outside of US
*
You have little cash on hand
*
You want to get it done with little effort
Instead of waiting for replies, paying setup fees, transaction fees, statement fees, discount fees and the like, you can simply sign up for a third party credit card processor and pay 10-15% of the sale price of each product.
These services are getting more and more popular with small online businesses, especially those just starting out. The transaction fees are usually higher than owning a merchant account, but there is no minimum monthly charge and no hefty deposit requirement so you are only charged on sales you have made.
Also, third party processors often provide some extras such as check payments option, free affiliate program, etc.
Some webmasters just want to do it in the simplest way: sign up with a third party processor, insert several lines of HTML code, and that's it! The service provider will take care of the rest.
The third party credit card processor handles payment by credit card, and sends the vendor a monthly (typically) check, minus various processing fees, which vary from service to service.
You may need some extra features sometimes such as download facilities or sending registration codes. If you ask around, many webmasters will suggest ClickBank which is a good service with large and free affiliates base. But if you need to send buyers unique usernames and passwords, like I do with eBook How to Create A Fortune on the Internet in just 4 Simple Steps, it would be difficult with ClickBank.
Below, I present the calculated processing fees for popular services, for a variety of product prices. Following that is a brief summary of the transaction and other associated fees for each service and extra features. Please note that some services have "setup fees", and most, but not all, charge the vendor each time a customer requests a refund.
http://www.working-at-home-business.com/articles/thirdparty.shtml
Credit Cards For Bad Credit Applications
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
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
Best Credit Card After Bankruptcy - How to Find One
Finding the best credit card after bankruptcy is not that difficult, if you know where to look and what to look for.
Let’s start by talking about secured and unsecured credit cards. When it comes to applying for a credit card after bankruptcy one question that a lot of people seem to have is: Should I apply for a secured credit card or unsecured credit card?
In case you don’t know the difference, a secured credit card is “secured” by a special savings account you establish with the credit card issuer which acts as collateral for your credit limit.
For example, you deposit $500 in a special savings account and then have a $500 credit limit. If you default, the credit card issuer simply takes the money in your special savings account.
Unsecured credit cards are just that – unsecured. Meaning the person fills out a credit application and, based on their credit report, income, etc. are approved for a certain credit limit. Of course, they could also be declined depending
on the credit card issuer’s guidelines.
So which is best? It depends on your credit history. However, if you apply for a secured credit card you have a higher chance of getting approved versus an unsecured credit card.
But be careful. Not all secured cards are created equal. And to make matters worse, there are tons of banks out there pushing secured credit cards!
So how do you find the best credit card after bankruptcy? Come up with a list of criteria that the secured card needs to meet in order for you to consider it. When I’m researching secured cards, I apply eight criteria. Not many meet these criteria so I’m able to narrow down the choices quickly.
What are the some of the eight criteria? For example, a low interest rate is important. While researching some secured credit cards I ran across one with an interest rate of 23.99% and another with an interest rate of only 9.25%.
This is just one of the criteria I use to find the best credit card after bankruptcy – and look at the potential savings! Over several years you could save hundreds or even thousands of dollars in interest depending on the balance you maintain.
Okay, here’s another criteria: application fees. Again, I found some secured credit cards that have no application fees and one that had a… are you ready for this… $120 application fee! Sadly, people have paid it!
Let me give you one more criteria you can use to find the best credit card after bankruptcy: You want to make sure the secured card issuer reports to all three credit bureaus. But you also want to make sure they report it a certain way.
I don’t have room here for all eight criteria, but hopefully this gives you an idea of some of the things you need to look at when it comes to finding the best credit card after bankruptcy.
By the way, don’t apply for too many credit cards at once. If you do, it can hurt your credit score. That’s why if you’re uncertain as to whether or not you’d be approved for an unsecured credit card it may be better to apply for a secured credit card.
Now you know some steps you can take toward finding the best credit card after bankruptcy!
=====================================================
DISCLAIMER:
This information is designed to provide only a general overview of the subject matter herein.
This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.
Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.
About the Author:
R. Lawrence Anderson is author of After Bankruptcy Credit Solutions, which shows individuals how to qualify for credit and loans after bankruptcy. For details visit: http://www.bankruptcy-credit-solutions.com
Article Source: http://EzineArticles.com/?expert=R._Lawrence_Anderson your credit score. For more credit repair advices, please visit Credit Repair Advices
Let’s start by talking about secured and unsecured credit cards. When it comes to applying for a credit card after bankruptcy one question that a lot of people seem to have is: Should I apply for a secured credit card or unsecured credit card?
In case you don’t know the difference, a secured credit card is “secured” by a special savings account you establish with the credit card issuer which acts as collateral for your credit limit.
For example, you deposit $500 in a special savings account and then have a $500 credit limit. If you default, the credit card issuer simply takes the money in your special savings account.
Unsecured credit cards are just that – unsecured. Meaning the person fills out a credit application and, based on their credit report, income, etc. are approved for a certain credit limit. Of course, they could also be declined depending
on the credit card issuer’s guidelines.
So which is best? It depends on your credit history. However, if you apply for a secured credit card you have a higher chance of getting approved versus an unsecured credit card.
But be careful. Not all secured cards are created equal. And to make matters worse, there are tons of banks out there pushing secured credit cards!
So how do you find the best credit card after bankruptcy? Come up with a list of criteria that the secured card needs to meet in order for you to consider it. When I’m researching secured cards, I apply eight criteria. Not many meet these criteria so I’m able to narrow down the choices quickly.
What are the some of the eight criteria? For example, a low interest rate is important. While researching some secured credit cards I ran across one with an interest rate of 23.99% and another with an interest rate of only 9.25%.
This is just one of the criteria I use to find the best credit card after bankruptcy – and look at the potential savings! Over several years you could save hundreds or even thousands of dollars in interest depending on the balance you maintain.
Okay, here’s another criteria: application fees. Again, I found some secured credit cards that have no application fees and one that had a… are you ready for this… $120 application fee! Sadly, people have paid it!
Let me give you one more criteria you can use to find the best credit card after bankruptcy: You want to make sure the secured card issuer reports to all three credit bureaus. But you also want to make sure they report it a certain way.
I don’t have room here for all eight criteria, but hopefully this gives you an idea of some of the things you need to look at when it comes to finding the best credit card after bankruptcy.
By the way, don’t apply for too many credit cards at once. If you do, it can hurt your credit score. That’s why if you’re uncertain as to whether or not you’d be approved for an unsecured credit card it may be better to apply for a secured credit card.
Now you know some steps you can take toward finding the best credit card after bankruptcy!
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DISCLAIMER:
This information is designed to provide only a general overview of the subject matter herein.
This information is provided with the understanding that neither the publisher nor author is engaged in rendering legal, accounting or other professional advice. If legal or other expert assistance is required, the services of a professional should be sought.
Neither the publisher nor author shall be liable for any loss or damages, including but not limited to special, consequential, incidental or other damages, caused by the information contained herein.
About the Author:
R. Lawrence Anderson is author of After Bankruptcy Credit Solutions, which shows individuals how to qualify for credit and loans after bankruptcy. For details visit: http://www.bankruptcy-credit-solutions.com
Article Source: http://EzineArticles.com/?expert=R._Lawrence_Anderson your credit score. For more credit repair advices, please visit Credit Repair Advices
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