Choosing Between Credit and Debit Cards

Knowing the principle differences between credit and debit cards can help you make wiser financial decisions, thus saving you money. Unfortunately, too many consumers seem to mix up these two types of payment tools, especially when it comes to using credit cards and meeting payment obligations on them. Both, credit and debit cards have their advantages and drawbacks.

If you want to avoid common pitfalls and stay away from financial troubles that strip most vulnerable Americans of their homes and happiness, it is time to get some education.
Trying to understand what you really need, a credit or a debit card, you should look into your priorities, spending habits and special needs. The basic and crucial difference between the two lies in the”working mechanism”. For example, when you pay with a debit card, it is the same as if you were paying with your own hard cash. Except that the cash is in the form of a small plastic and is actually kept in a special checking account with your bank.

How do you get the money in your checking account? There are several ways you can do it. You can make direct cash deposits, arrange transfers from other bank accounts or have your employer transfer your paycheck to the account. You can load the account any time and each time you need more funds available. Remember, using a debit card, you spend your own money without owing anything like interest to your bank. There are some fees though associated with debit card servicing but they are not significant.

A credit card works as a loan. You don’t own the money on the card – you borrow it from a bank. Hence, there come all these APRs (the price for using a credit line), fees and other charges that cover card service, as well as your borrowing risk. As it is kind of a loan, you do not have to pay the purchase price back immediately. Usually, you have up to 30 days before your first minimum payment is due.

At this point cardholders begin to abuse the basic credit card rule – the rule to pay each monthly bill before the due date with more than the minimum required.

The different “working mechanisms” of credit and debit cards determine their pricing and risk. Those who do not make timely payments on credit cards are likely to dig a hole of debt that’s impossible to get out of. And people do make late payments and even miss them.

When default APRs and penalty fees apply to already great balances, your financial wellbeing becomes dependent on external factors such as consumer debt counseling services and various debt management programs.

With all this, the advantages of credit cards are evident. You can easily purchase an item or a service which you were not able to afford before. Plus, you can benefit from various kinds of rewards which accumulate with each card purchase and build up into a value redeemable for brand name merchandize and free services.

Credit Card Fees and How You Can Avoid Them

Whether you are planning to get your first credit card or just switch to a new one, be ready to face loads of fees. Just like interest rates, credit card fees come in a variety of types and are charged for the card usage, as well as for all common operations with your account. Knowing all types of fees and cases when they typically apply can help you choose a better credit card or avoid unnecessary fees on it.

Let’s start with the type of fee that should be the first to look at when applying for a credit card. Annual fee, or card maintenance fee, is charged for using a credit card on a yearly basis. Depending on whether or not your bank requires the fee, you may save or overpay up to $300 a year. The majority of cards for good and excellent credit, as well as a number of subprime card offers require no annual fees.

So, if you’re looking for a less expensive bank card, it’s worth your time to search for what fee free cards are currently available. If you find a really tempting offer but it has an annual fee, you may ask the bank to waive it. If it does not work, just get one of the numerous cards without a fee.

Then there is an application fee that may be charged on any card regardless of its type and credit requirement. Most often, however, an application fee, also called set up fee, is found on prepaid and secured card types.

As you start using your card account, the number of fees charged triples. Most common of them are cash advance fees, finance charges, balance transfer fees, as well as a whole range of penalty fees that you pay for being delinquent on your account. While these fees are obligatory, it does not mean you cannot avoid them.

For example, a cash advance fee is charged when you withdraw cash from your credit account. What you need is to create a cash fund which you could use in emergencies instead of making a cash advance.

As to a finance charge, it is impossible to avoid as long as you carry a balance beyond a 0% introductory rate and a grace period. A finance charge applies once a billing cycle and depends on your card’s APR, the balance you’re carrying and the method of calculating the charge. One simple way to avoid it is pay your balance in full before the end of the grace period.
Making a balance transfer from your current card, it’s very likely you’ll pay a transfer fee. The fee is a percentage of the money amount transferred and is charged by almost all balance transfer cards available on the market.

The highest and most painful fees to beware of are charged as a penalty when you are late on your monthly payment or exceed your spending limit. Whether or not you pay these fees depends on how responsible and disciplined you are using your credit card.
Obviously, most of the fees mentioned can be avoided by simply following the rules of rationalism and principles of wise credit card use.

Bad Credit: Clearing Your Credit Report

Your bad credit prevents you from getting the most attractive and beneficial credit card offers available. So, you need to be able to improve your rating as soon as possible. Remember, bad payment records stay in your credit report for years, keeping you fromlowest interest rates and rewards.

Basically, there are 3 ways you can clear your credit report and boost your score rating. The first one is to obtain a special credit card with built in credit repair services. Today, individuals with bad score ratings have a great variety of ways to obtain such a credit card and use its benefits and flexibility for making purchases. However, it is not only the convenience that you should look for when using this credit card. Make sure that the card issuer provides free online access to your account and sends monthly reports to all the three credit reporting agencies. Then all you need to do to improve your score and clear your consumer report is pay your bills on time every month. Eventually, the negatives in your credit report will be replaced with positives. To speed up the process of credit repair you can also do the following:

• 
  Keep a decent debt-to-income ratio.
• 
  If you have other credit card accounts and they are not delinquent, keep them open. This way, you’ll grow your credit history and show stability with credit.
• 
  Try to finance your everyday “wants” with cash and use your card for emergencies only.
• 
  Consider getting a second or part-time job to earn money to pay for past due debts.
• 
  Remember, your ability to get a card with poor credit depends on how bad your score really is.

If your credit is hopeless and you have unmanageable debt, you’d better consider the other two ways of clearing your credit report.

One of them is credit debt consolidation. There are lots of organizations out there that claim they can settle your debts with the creditor and clear your report. However, many of them a scammers looking to rob you blind. So before you rush to sign a deal with the first company you see, talk to an attorney. It may help you find a legitimate and reputable company to help consolidate your debt. Anyway, you should be aware that you credit report will not get clean right away. All the debts that were settled through a debt consolidation service are recorded as “not paid as agreed” and remain in your credit file for 7 years from the date the account first became delinquent.
And the last thing you can do to make your credit better is to file bankruptcy. It may seem nonsense because bankruptcy remains in your report for 10 years. But on the other hand you get a clean slate, and in the subsequent 10 years you can rely on a cosigner to get a credit card to help you rebuild your payment history and clear your credit report.

Terms and Conditions of Loan

Terms and conditions have yet to be discussed with the new Government and specific 'payback' stipulations have yet to be determined. The following are a few conditions that the WB insists upon:1. The new government will pariticapte in leadership and economic sustainability training coordinated by the World Bank Institute.2. The borrower country must initiate and undertake an anti-corruption program3. Private sector development will be fostered through the privatization of SOE's over the long run4. Greater transparency in budget processes and execution at all levels of government by creating a Keep it Clear, Keep it Clean (KicKic) this will be overseen by Kieran Shah of the (WB) and Jessica Prince (ECHO). If they don't' abide we will kick kick you to the cub of the road we just built.5. The government must allow WB and EU auditors and monitors to review projects and budgets at any time.6. The goods and works to be procured must be: 1) of satisfactory quality and are compatible with the balance of the project 2) delivered or completed in timely fashion; and 3) are priced so as not to affected

Improve your credit score during a financial hardship

Step1

Gather all of your bills.Take a good look at them without crying.learn these simple rules of importance.

Step2

Do not pay the bills that nag you and call you more just because they are nagging and calling. Those are usually the bills that have no collateral and cant take anything back from you. an example would be like a gym membership or credit card...First only focus on what can hurt you more. Those are your mortgage, car loans...

Step3

make sure you call all your loan companies and explain to them your situation. Not picking up the phone and avoiding them is the easiest thing to do but the worst. (believe me I know). No one wants to admit they are struggling, but honestly what is the worst they can say to you? Tough luck, Pay up? No.. Believe me, they appreciate you letting them know because it seems you are concerned about paying it and you are not avoiding it.

Step4

Sometimes, when you talk to credit card companies after missing a payment or two, you can speak to them and ask them to lower your interest rate for you and maybe set up a payment plan that is much less than your minimum until you get on your feet. That may be documented on your credit, but it is better that non payment being documented.

Step5

Any monies you have, ration them out so you have some for daily life and some for your bills. Do not give up responsibility just because you have a small set back. Dont be afraid to ask for help as well, need be your family, the government or what ever. keep in search of a job to get you back in gear.

Step6

Downgrade the service in your cable, phone, cell phone, internet, or any other luxury. try to save anywhere you can.

Consolidate Federal Student Loans

Step1

Contact Your Lender: Although as a general rule the traditional lenders are not consolidating student loans, it still doesn't hurt to try. Call your lender today and ask about low annual percentage personal loans or even low interest credit cards. With low credit card annual percentage rates (APR) you might even get a similar rate.

Step2

Federal Direct Consolidation Loans: If you google search "Federal Student Loan Consolidation" one of the first sites you will find is www.loanconsolidation.ed.gov - the federal website for federal student aid. If you select "Borrower Services" it will take you to the federal consolidation website. It takes about a month to get a response from the FSA, but it is the only agency that is currently consolidation the loans.

Step3

What if I can't get the loans consolidated?: In a few instances it may be impossible to consolidate your loans, so what can you do if you just can't afford the payments at this time. First you should contact your lender and simply tell them it is too much to repay at this time (cite your reasons). Many times they will reduce your payment or extend the life of the loan. A second option is to place the loans in forbearance, which allows you to defer payment for a set amount of time until your financial situation improves. A third option is to return to school at least part-time (6 units). This can be done at a junior college or a local university, and is not dependent on what courses you take. This option will allow you to defer your loans without penalty, as long as you are in school.

Credit card

A credit card is part of a system of payments named after the small plastic card issued to users of the system. The issuer of the card grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. A credit card is different from a charge card, which requires the balance to be paid in full each month. In contrast, credit cards allow the consumers to 'revolve' their balance, at the cost of having interest charged. Most credit cards are issued by local banks or credit unions, and are the same shape and size, as specified by the ISO 7810 standard.

Credit cards in ATMs

Many credit cards can also be used in an ATM to withdraw money against the credit limit extended to the card, but many card issuers charge interest on cash advances before they do so on purchases. The interest on cash advances is commonly charged from the date the withdrawal is made, rather than the monthly billing date. Many card issuers levy a commission for cash withdrawals, even if the ATM belongs to the same bank as the card issuer. Merchants do not offer cashback on credit card transactions because they would pay a percentage commission of the additional cash amount to their bank or merchant services provider, thereby making it uneconomical.
Many credit card companies will also, when applying payments to a card, do so at the end of a billing cycle, and apply those payments to everything before cash advances. For this reason, many consumers have large cash balances, which have no grace period and incur interest at a rate that is (usually) higher than the purchase rate, and will carry those balance for years, even if they pay off their statement balance each month.

Avoid Using Credit Cards

Step1

Remember that every time you swipe a credit card, you're borrowing money you don't have, and digging yourself further into debt. Look at your credit card and repeat it to yourself, over and over again, until it's the first thing that comes to your mind whenever you see that card in your hand.

Step2

Scale back to one card. Close all the other accounts, and cut up the cards. Yes, closing several accounts at once may ding your credit score a bit, but if you're going to be living a debt-free lifestyle from now on, that little ding isn't going to make a difference. Credit scores only matter when you try to borrow money you don't have!

Step3
Leave your one credit card at home. It's too tempting to use it if it's immediately available in your wallet. Your credit card should only be used when you need to make an immediate purchase (like an airline ticket), but need time to transfer the money to your checking account (from a savings or other account). It should NOT be used to purchase items you don't have the money for! After using your card, immediately transfer the money you need and pay it off. Don't wait for interest to accrue.

Step4
Manage your money with an online tool such as Mvelopes, where you can see all of your accounts in one place. Log on every day to balance your checking account transactions and schedule bill payments, so you know exactly how much money you have available for each category (gas, groceries, clothes) at any given moment. See my article "How to Manage Your Money Online" for more info.

Step5
Use cash or debit card only. Now that you know exactly how much money is available, you'll be more likely to stay under that limit. You know what this means, though. When the money runs out, STOP SPENDING! If you use cash or debit only, you'll have no choice but to be more careful and deliberate about your spending.

Step6
If you're having trouble learning how to curb your spending, put cash into designated envelopes in your wallet or purse, and leave your debit card at home (to prevent overdraw and impulse purchases). When your grocery money envelope is empty, you have to stop, period. Studies have shown that the action of counting out dollar bills and handing them over is psychologically more painful than swiping a card, which is why you tend to spend less when using cash.

Step7
Attend a personal money management class like Dave Ramsey's Financial Peace University to give you a practical plan for eliminating debt and building wealth, and help keep you inspired, educated and accountable.

Step8
Get rid of tempting credit card offers in the mail. Log on to www.optoutprescreen.com and follow the directions to opt out of unwanted credit card offers and other financial junk mail.

Step9
Ask for help. If you still cannot seem to control your spending and impulse purchases, get whatever help you need, whether from a financial advisor or even a therapist who specializes in compulsive behaviors.

China Said To Be Leaning Away From Capitalism

UK Economy Teeters On Brink Of Deflation

Read Mervyn King's Letter To The Chancellor

Investors Flock To Barclays' IShares

Interest In The Company's ETF Business Widens.

London Stocks Edge Ahead On US Rescue Proposal

The London Stock Market Opened Higher This Morning But The FTSE 100 Index Failed To Surmount The Psychologically Significant 4,000 Barrier. London Opened About 40 Points Higher On The FTSE, Hovering Around The 3,900 Mark.

Europe Stocks Extend Declines

European Shares Ended Lower, With Energy Producers Pacing The Declines On The Fall In Oil Prices. London's FTSE Fell 0.7%.

Student Credit Cards

Today, having a credit card is a luxury. Credit cards are a great convenience meaning that we don’t have to be worried about cash when buying something. Credit cards are now not only for businessmen or women, small business owner but also for high school and college students. Both high school and college students have chances to have credit cards now. Not so different with normal credit cards, student credit cards can be used with certain restrictions and limitations.
Many companies, banks and also site offer student credit cards and because it is a student credit card. From many sites that offer student credit cards, studentcreditcards.com is the best place to have it. They do not only take profit by offering student credit card but also giving valuable information about the benefit or advantages and disadvantages of having student credit cards.
To fulfill the needs of student credit cards, they provide some choices of student credit cards. When you are applying here, you will not have to pay annual fee, have no minimum income or cosigner required. Another specialties are 0% APR on everything for 6 months, discount and many others. So, whenever you need to apply a credit card for your children, studentcreditcard.com is the right and best place for us.

Instant Approval Unsecured Cards For Bad Credit

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Platinum Rewards Visa Credit Card

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Did I uncover your credit card details on the web today!

Today I accidentally uncovered a huge list of people’s names, addresses and credit card details online. No kidding.
I found more than that: login details to people’s web hosting accounts and e-commerce site memberships as well. It was really freaky to think it was all just staring at me, thanks to a flukey Google search. Nothing more complicated than that. (And no, don’t email me for the search details!)
For whatever reason, a hacker has broken into a number of sites and stored the resulting DB dumps into text files that Google came along and indexed, all because this guy’s site’s directories were set to display their contents when no default file is present.
I have emailed Victoria Police with all the details. But after thinking about it some more, I have a simple observation and a suggestion…
First the observation that if a hacker is dumb enough to have your private login or credit card details online and indexable by Google, then they’re likely to be in a text file and unencrypted. If your credit card is listed, it’s probably had the spaces removed, since that’s how it will be stored (by idiots who don’t use a salted hash).

Apply for a Credit Card

One needs to apply for a credit card to have financial flexibility. Credit Card has become a part and parcel of the modern day life. Credit Card comes in varieties and making the right choice is very difficult. Generally, consumers apply for a credit card without going through its details and end up with a huge bill hanging over them. Thus it is very important for a credit card customer to research on the details of the credit cards available in the market.

The procedures that should be followed by a customer to apply for a credit card are :-

Firstly , they have to compare the different credit cards, research their past records, know the interest rates, hidden costs and every details associated with them.

Secondly , they have to choose the right credit card matching their personal or business needs.
Thirdly , they either have to apply for a credit card online or have to call up the company representative and apply for the same.

Generally, the call-center executives call the prospective customers and give a brief detail on the different credit cards offered by the concerned credit company. If the customer gives time then the sales executive visits him/her and aggressively promotes his company's card. Then the convinced customer has to fill up an application form in front of the executive. If the application form gets company's nod then he receives it within a very short period of time.

The details that a credit card application form generally seek are :-

• 
  Name and Details (Address, Social Security Number, Date of Birth, Telephone and mobile number, annual income, e-mail address) of the applicant,
  Name of the Authorized User (if any) who are entitled to make purchases on the same credit card account number as that of the primary card holder,
  Signature of the Primary applicant of the credit card accepting all the terms and conditions of the company, Name of the scheme of the card chosen and Other details like driver's license.

The application form required to apply for a credit card also contains details of the schemes offered by the card issuing company. These detail contains :-

• 
  Computation Method for calculating the Outstanding amounts
  Grace Period for payment of outstanding balances
  Annual Percentage Rate for Purchases
  Delinquency Rate
  Annual fee
  Over-limit fee
  Other Annual Percentage Rates,
  Information on the Variable Rates
  Penalty amount on late payments
  All types of transaction fees (including Cash Advances, Convenience cheques and Balance Transfers)

Thus a consumer could apply for a credit card any time time he wants with a door-to-door facility given by the card issuing companies. But before applying for a credit card a customer should be cautious about the consequences of continuous non-payment of outstanding payments where the interest rates increase in a cumulative manner. Hence, a credit card applicant should be conversant with the payment structure of the principal and interest rate because many a times it has been observed that non-payment of outstanding has led to bankruptcy of the customer.

But it is needless to mention that credit cards give financial flexibility to the consumers and the meticulous payment of the principal amount(in part or full) within the grace period and interest payment thereafter helps a consumer to be financially healthy and at the same time reallocate his resources according to the needs. Thus, a customer can always apply for a credit card but at the same time should try to make timely payments of outstanding in a specified time limit for avoiding excess burden.

What is Credit Card?

A credit card is part of a system of payments named after the small plastic card issued to users of the system. It is a card entitling its holder to buy goods and services based on the holders promise to pay for these goods and services.[1] The issuer of the card grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. A credit card is different from a charge card, where a charge card requires the balance to be paid in full each month. In contrast, credit cards allow the consumers to 'revolve' their balance, at the cost of having interest charged. Most credit cards are issued by local banks or credit unions, and are the same shape and size as specified by the ISO 7810 standard.