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Credit Cards Explained

Are you relatively new to the credit card world, and wondering how they all work? There are many types of credit cards out there. In addition to brand names such as Visa and Mastercard, there are many different categories credit cards can fall into.

The first is ’secured’ or ‘unsecured’. Secured credit cards are cards that are secured by putting a deposit in escrow between you and the bank. If you stop paying on your card, they repossess the deposit and so they don’t have to try to get the money out of you.

Unsecured cards are cards that the bank issues when they believe they can trust you with credit without a deposit. These are harder to get. There are also pre-paid credit cards, which pretty much work as glorified gift cards that are accepted in all the same places credit cards are. These can be given out as gifts, company incentives, or purchased for yourself for uses such as travel.

There are also business credit cards. These cards typically offer incentives for company travel, office supplies, and the like, so businesses will want to place expense accounts on their cards. These can make life a lot easier for a small business when they are trying to separate their accounts so that they can accurately determine expenses.

Many small businesses use these types of credit cards to pay for the costs of running the company then they can use the statements for the end of year tax bill to relive tax bills.

With all these types of credit cards, it can be tough to make a decision. But I’m sure after reading this article you have a bit of a clearer idea on where to go when searching for credit cards. Best of luck!

John Collins manages Credit tips. A site dedicated to helping people with credit cards.

Tags: credit cards, debt, loanscredit cards, debt, loans

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September 25, 2008 | Credit_Card | No Comments »

Credit Cards for Bad Credit

Having a bad credit history will make it more difficult for you to get another card, but not necessarily prevent you from getting one. This is because many banks, if they feel that an individual with a bad credit history has good intentions to pay bills, will offer bad credit credit cards to re-establish a good credit rating.

Credit cards for bad credit fall under two catogeries - Secured and Unsecured credit card for bad credit.

With secured credit cards for bad credit, you will be required by the bank to deposit a certain amount of money that may range from a few hundred to several thousand dollars, into your savings account as security for your line of credit. Your credit line is a percentage of your deposit, somewhere between 50 to 100 percent. The bank will then issue you a card with a spending limit equal to your credit line, which will serve as collateral for use of the credit card for bad credit. The money in the savings account, or the collateral, will be used to pay the balance if you fail to pay your credit balance. It is also probable that you’ll be paid interest for your deposit but you may also have to pay application and processing fees.

As for unsecured credit cards for bad credit, the bank will not require you to deposit an amount as security or collateral. However, you will be issued a credit card for bad credit with a low spending limit that may range from a few hundred dollars to one or two thousand dollars, and very high fees. Your spending limit will also be increased if you continue to prove your ability, and good intentions of making payments in time. Make sure that the issuer reports to a credit bureau if you’re applying for a secured card to build or re-establish a bad credit record, so that a proper credit history can be built by the bureau.

When looking to apply for a credit card for bad credit, watch out for scams and deceptive ads. The Federal Trade Commission (FTC) has launched a campaign and taken action against such misleading companies and agencies. Learn to identify frauds and scams by studying telltale signs such as those offering credit card without examining your credit report, a call to a “900″ number for which you are billed (without you knowing how much), and cards offered by credit repair companies.

When applying for a credit card to rebuild credit, most of the major credit card companies such as Bank of America, Bank One, Capital one etc will be able to assist you in getting a secured credit card. This will ensure improvement in your credit history because ever payment made in time will be reported to one or two credit bureaus. You may also eventually receive an offer for an unsecured card with a significant spending limit if you continue to follow rules and pay your credit card bills and other payments in time.

http://badcredit-hq.com/ Bad Credit HQ: helping you to get your finances back under control.

Tags: bad credit, credit cards, credit repair, finance, loansbad credit, credit cards, credit repair, finance, loans

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September 13, 2008 | Credit_Card | No Comments »

Credit Cards Online

Finding credit cards online are one of the easiest ways of obtaining the power of plastic. You can get credit cards from a multitude of banks in a matter of a few mouse clicks.

Almost every major bank features an online application system, and some are even willing to approve cards in 30 seconds or less! These sites often take some of your key information and email you the result of your application within a few minutes.

This can be a major advantage of getting credit cards online, since applying for them through the mail could result in weeks of waiting.

To see the types of cards offered by various banks, a simple Google search can result in plenty of options for getting credit cards online. By law, credit card companies are forced to put the full terms and conditions on their website for every individual credit card, so make sure you find these and thoroughly review them before you make any final decisions about the type of credit card you want to get.

The good thing about applying for credit cards online is you normally get an instant decision. For example, say you have a decent credit rating it is not uncommon for you to be conditionally accepted while the company does some final checks to see if everything matches up. However, even if you have a bad credit rating, you can still be accepted at many places now. Some companies even have special cards for this circumstance.

Capital one have a card which is designed for the person with card, it has a high apr and limits the credit you can get. However, pay your bills on time for 6 months to a year and your credit will improve faster than you think. You can now move on to much better credits with much lesser annual interest.

Some cards will stick you with an annual fee without explicitly stating it on their website, so buyers beware. Best of luck on your online credit card hunt!

You can find more guides and advice on credit cards at http://www.credit-guidance.info.

John Collins manages Credit tips. A site dedicated to helping people with credit cards.

Tags: credit cards, debt, loanscredit cards, debt, loans

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September 1, 2008 | Credit_Card | No Comments »