The Advantages And Disadvantages Of Credit Card

Comparing Cards Features

It is considerably recommended to compare credit cards capabilities before you fill the approval. You have to compare a persons vision rate, credit rating, twelve-monthly fee and discounted offers which are furnished by credit card companies. Different minute card has different profit, so you need to pick the right for you. In order to get appropriate credit card, so you can check out Creditcardsuggestions.com to get techniques regarding precise plastic card according to your needs. Almost all of credit card companies will give no cost annual fee to the first year of membership rights. This benefit enable you to reduce expenses involving credit card. No wonder a lot of card holders are choosing their credit card to the first 11month then close up them before 1st year is end. They’re going to apply the same plastic card again just to stay away from annual fee. Using this method is good, but you could get increasing limit with each coming year if you always close up credit card before 1st year is end. For a few people who still need to continue their plastic card, they can use his or her points reward for you to redeem free twelve-monthly fee (if they have ample points reward for you to redeem it).

The main advantages of Credit Card

Credit card turns into premier need for people. They do not need to change their money too much on the destination country whenever they bring credit cards. Merely swipe credit cards in the desired destination country to purchase merchandise or paying lodge are always possible. A number of credit card companies even supply flexibility for people to get temporary escalating limit during their touring other countries. Let’s point out that you are from Japan and would like to check out Europe for One month, so you can request non permanent increasing limit around 300% from your current restriction. When you are back to your current country, you can get past limit again. Using this method will save your money to spend credit card fee. As an illustration: you hold gold plastic card type then you would love to get temporary escalating limit like us platinum credit card. So you can ask this higher restriction for 1 month through traveling then resume gold credit card restriction when you are back to your individual country. Hence, you continue to pay annual price for gold plastic card type only. Isn’t wonderful? Some credit card companies in addition cooperate with selected merchants to give amazing discount. Therefore, you’ll want to make credit card comparison before proudly owning credit card.

The Negatives of Credit Card

Even if you have abundant plastic card, you have an obligation to them on time. Normally, you will get a blacklist via credit card issuers. Of course, just before final blacklist, you will get lending fee according to the term along with condition from credit card providers. In reality, many people are can not repay credit card by the due date or even can’t pay fully amount. They only contemplate paying minimum volume which is usually all around 10% from total accounts receivable. No wonder, many of them get high interest rate along with financial charge monthly. This condition keeps occurring from month to month. People who have task will be fine using this type of condition, but if you happen to be jobless suddenly then you need to ask yourself “how to spend all of debts throughout credit cards?” That’s why you have to get careful to choose plastic card. Start from filling credit card applications and discover the interest rate, time period and condition, keep information and so on. In that way, you will not shock to view that all of your income will be used just to pay interest along with finance charge of cards. Make sure that you don’t have more when compared with 3 credit cards when you will be confused to deal with them. It will be greater if you have 1 plastic card only with high restriction rather than 3 cards with small restriction. If you have 3 cards then you have to pay Thrice annual fee, appropriate?

Payment of Plastic card

Although credit card is simply thin plastic card, nonetheless it can bring disaster in case you misuse it. Anyone don’t need to follow every single tempted discount similar to easy installment to acquire new gadgets as well as traveling with low interest charge. You have to be strict using your expenses if you don’t need to suffer financial crisis in the foreseeable future. Also, you have to be fearless to leave your cards at home if you know that this limit is almost entire. Don’t force yourself to acquire goods beyond your capacity to repay them. Perhaps you can use credit cards over the limit, nevertheless, you will get bigger lending fee. Make sure that you also shell out credit cards through vehicle debit system so that once you receive earnings, bank will take your salary to spend credit cards automatically. Using this type of system, you don’t ought to circle your appointments to remember due date involving credit cards every month. As a final point, choose Credit Card Firm which is giving substantial security to your data.

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Everything Youve Ever Wanted To Know About The Credit Card Advance

The Credit Card Advance: You hear about it all the time, youve seen advertisements for it online, and you may have even thought about getting one. But do you really know what it is? You think, Well, I know what a credit card is, and I know what advance means, but when you combine the two definitions in attempt to decipher the hidden message, youre still just as bewildered as you were from the start, if not more.

Any enterprising, yet cautious business owner in dire need of business funding, will undoubtedly have many questions about credit card advances before setting out to attain one; How does it work? Who is eligible to receive one? What is the repayment like? In reality, the mechanism of a credit card advance is quite simple, and by the end of this article you will know whether a credit card advance is a right fit for your business.

Definition

A credit card advance is one of the many available means of business financing. It is a loan, a sum of money (that must be repaid), provided by a lender to a merchant for business funding. Traditionally, business owners look to banks for bank loans when attempting to gain additional funds. But there are many factors that make a credit card advance very different than a bank business loan.

Eligibility

One does not need excellent credit to be eligible to receive a credit card advance. Likewise, proposals, collateral, and personal finance statements are unnecessary when applying for a credit card advance, making credit card advances easier to receive than bank loans, especially in todays economy.

Credit card advances are only practical methods of business financing for merchants, or business owners who process credit card sales on a regular basis. With most credit card advance companies, a business owner must complete a short application, and submit specific documents. Most lenders will require the applicant to be a business owner for at least six months and submit documentation of the last four months of his/her business credit card transactions. These monthly transactions must meet a minimum of anywhere from $2,500 to $5,000. After the submission of all required documents, it should only take a few days for a credit card advance to be approved. And after approval, many lenders can have funds in a business owners account in about one week.

Repayment

Once a credit card advance has been funded, the repayment process begins. Cash advance lenders do not require fixed monthly payments. The payback system is one that works with the merchant and his/her credit card sales. Rather than requiring a payment every month, and imposing interest rates, the credit card advance repayment is deducted as a small percentage from the business daily credit card sales. This is where the term credit card advance comes about. The money received is given in advance, in return for a small percentage of a business credit card sales. This leaves the borrower free to go about his/her business as usual and rest assured that the credit card advance payments are being taken care of. This also works as an advantage to business owners because the repayment amounts adjust themselves according to the business sales amount for a particular day. In other words, payments are only made when the business makes money.

Quantity

Lenders determine how much money they can lend based on a business monthly credit card sales. Typically, any amount between $5,000 and $600,000 can be funded, but a business that does not bring in a large volume of monthly credit card sales will not be able to receive a $600,000 credit card advance, because it would require either an unacceptable amount of the business daily credit card sales to be deducted, or an extensive amount of time for the credit card advance to be repaid, neither of which is beneficial for the borrower nor the lender. For a more realistic idea of the amount of money that you can receive, multiply your average monthly credit card sales by 120 to 130 percent.

The citation Card Advance: You hear about it all the time, youve seen advertisements for it online, and you may have even thought about acquiring one. But do you really know what it is? You think, Well, I know what a accredit card is, and I know what raise means, but when you combine the two definitions in attempt to decipher the hidden message, youre still just as bewildered as you were from the start, if not more.

Any enterprising, yet cautious business owner in dire need of business funding, will undoubtedly have many questions about credit card advances before setting out to attain one; How does it work? Who is eligible to experience one? What is the refund like? In reality, the mechanism of a credit card overture is quite simple, and by the end of this article you will know whether a credit card win is a right fit for your business.

Definition

A credit card advance is one of the many available means of business financing. It is a loan, a sum of money (that must be repaid), provided by a lender to a merchandiser for business funding. Traditionally, job owners look to banks for bank loans when attempting to gain extra funds. But there are many factors that make a credit card advance very different than a bank patronage loan.

Eligibility

One does not need excellent credit to be eligible to pick up a credit card advance. Likewise, proposals, collateral, and personal finance statements are unneeded when applying for a accredit card advance, fashioning credit entry card advances easier to receive than bank loans, specially in todays economy.

Credit card advances are only practical methods of business financing for merchants, or business organization owners who process credit card sales on a regular basis. With most credit card advance companies, a business owner must finish a short application, and submit specific documents. Most lenders will require the applicant to be a business concern owner for at least six months and submit corroboration of the last four months of his/her job credit card transactions. These monthly minutes must meet a minimal of anywhere from $2,500 to $5,000. After the submission of all required documents, it should only take a few days for a credit card advance to be approved. And after approval, many lenders can have funds in a business owners account in about one week.

Repayment

Once a reference card advance has been funded, the quittance outgrowth begins. Cash advance lenders do not require fixed monthly payments. The payback system is one that works with the merchant and his/her credit card sales. Rather than requiring a defrayal every month, and imposing involvement rates, the credit card advance repayment is deducted as a small percentage from the patronage daily credit card sales. This is where the term credit card advance comes about. The money received is given in advance, in return for a small percentage of a byplay credit card sales. This leaves the borrower free to go about his/her business as usual and rest assured that the credit card advance payments are being taken care of. This also works as an advantage to business owners because the repayment amounts set themselves according to the job sales amount for a particular day. In other words, payments are only made when the business makes money.

Quantity

Lenders determine how much money they can lend based on a business monthly citation card sales. Typically, any amount of money between $5,000 and $600,000 can be funded, but a business sector that does not bring in a large volume of monthly credit card sales will not be able to receive a $600,000 credit card advance, because it would require either an unacceptable amount of the business daily reference card sales to be deducted, or an extensive quantity of time for the credit card advance to be repaid, neither of which is beneficial for the borrower nor the lender. For a more realistic idea of the amount of money that you can receive, reproduce your mean(a) monthly credit card sales by 120 to 130 percent.

Credit Card Or Prepaid Credit Card?

Most of the banks use different type of bank cards. The most common ones are the credit card, the debit card, the secure credit card, the Prepaid Credit Card and the ATM card. Each f the available cards offered have their advantages and disadvantages. For most of the people the credit card is the best card. However not everybody can get a credit card and to get a credit card with a good interest rate and smaller fees you have to have an excellent credit history. A good idea before getting a credit card is to get a prepaid card or a secured credit card.

To get a world wide known credit card like for example Visa or MasterCard, from a bank with lower interest rates you have to have at least a good credit history. If you have a good credit history you will most probably receive offers from different banks to get a credit card through them. However if your credit history is poor or bad or you do not have a credit history at all it will be more difficult for you to get a credit card. You will have to fill in many credit card applications and wait to see if you are getting approved or not. The good thing about the credit card applications is that they can be done online thus one can find in a matter of seconds if he or she is approved for a certain credit card.

The main question for a lot of people is not related to the type of credit cards available but how they can get a good credit card history or how can they improve or maintain one. Since most of the credit card applications ask you about your credit score and if you have one, you should already know that the better the credit score, the better the terms and conditions that you get with your credit card if you get approved. There are three main companies that asses your credit score and offer history credit reports. The first step towards a good credit score is paying your bills on time, making all the payments on time for a longer period of time is important for your credit score. Also if you get a credit card and use just a small amount of the money available in your credit line rather than a bigger amount, your score will be better. Also the longer your credit history is the better for your score. A fair diversity of credit cards will also help you maintain or increase a good score.

If you do not have a credit history, you should start making one because you need a good credit score not only to apply for credit cards, but also to apply for a loan for a house, a car or any other thing where you need a line of credit. Also once you get a line of credit make sure you make your payments on time and you can do this by setting automatic payments directly from your account. If you got a loan where you have to give back an fairly big amount of money each month a credit card that is prepaid can be a good thing to keep your expenditures in line and thus to avoid lowering your credit score. Also even if you get offers of applying for credit cards without having a credit score or even if you have a bad credit history, remember that in the long run having too many credit cards is not helping you get a good credit score or keep the same credit score you have.

Credit Card Holders Benefit Through Congress’ Pressure

Owning a credit card is fast becoming a better deal for consumers as the credit card industry (banks and other credit card issuers) starts changing their practices and implementing what can only be construed as more lenient practices, under the pressure exerted by Congress. This article offers the whole story.

In economic figures released by the Commerce Department at the end of May 2007, the U.S. first-quarter gross domestic product (GDP) grew by 0.6 percent. This was the weakest quarterly expansion since the fourth quarter of 2002 and was well under the 0.8 percent growth rate projected by Wall Street economists.

Housing continued to be a drag on the economy and was though likely to remain so in the coming months. However, there were positive signs as well, which could signal a healthier rate of growth towards the end of the year. One of these good signs was personal consumption spending which powers two-thirds of the economy increased by about 4.4 percent versus the 3.8 percent figure in April.

In a related report, the Labor Department reported on June 6 that U.S. worker productivity had also increased at a much slower rate than originally estimated. This report raised fears about possible inflationary pressures as labor costs go up.

Most of the performance figures had already been anticipated.

What came as a surprise was that borrowing by U.S. households had expanded by less than half ($2.6 billion) of forecast ($6 billion) as credit card use actually fell for the first time in 13 months. This increase in consumer credit was the smallest monthly increment in seven months, since October.

It seems consumers are pulling back from taking on more debt. Revolving credit, which includes credit cards, declined $403 million in April, the first monthly decline in the 13 months since March 2006. Consumers may be cautious about contracting more debt while housing remains in a slump and economic growth has been so weak. The decline in revolving credit has been interpreted as a sign that consumers are paying off more of their credit card debt.

In the middle of these mixed signals from the various sectors of the economy, legislators have expressed their dismay over practices being followed in the credit card industry. The House Financial Services subcommittee hearings last Thursday, June 7, called for stronger action by the Federal Reserve to control what lawmakers called the deceptive and predatory practices of credit card companies. Lawmakers subjected executives of major credit card issuing banks to intense questioning during the hearing.

Saying that the average American household carries $13,000 in credit card debt and overall credit card debt runs in the hundreds of billions of dollars, the panel chairwoman Rep. Carolyn Maloney, D-N.Y., was reported to have expressed fears that we will see a perfect storm in consumer credit as these pressures converge on Americans, and that the ripple effect will be felt throughout our whole economy.” Maloney cited the success of credit cards in providing for the credit needs of the American consumer but also emphasized that with great success came great responsibility.”

Lawmakers think the Fed needs to do more to protect credit card users, and propose to give other bank regulators the authority to curb industry abuses, including policies that confuse consumers and push them into more debt. The Fed is requiring credit card companies to extend to 45 days the notification period to consumers before they implement any changes in the terms of an account. The present practice is that when banks want to make any changes, for instance, to increase interest rates or to impose a higher penalty rate for missed or late payments, they will give only 15 days notice.

The Fed’s proposed full disclosure requirements would, among other things, allow consumers a longer time to look for another credit card. But legislators feel this is not enough and want regulators to impose an outright ban on abusive practices. They do not want to create new laws, but prefer to see regulators act on the problems.

Legislators are targeting other practices like charging interest on portions of debt that is paid on time during a grace period, and raising interest rates because a customer is late on payments to other creditors (not the credit card issuer) which is termed universal default” in the industry. Legislation is being proposed that would make some of these practices illegal.

These are serious concerns being raised by our lawmakers. Other regulators appear to agree with the lawmakers. The Federal Deposit Insurance Corporation chairman is not fully convinced that problems regarding credit card industry practices will be resolved by full disclosure alone. Other federal regulators who were also called to testify expressed support for legislation that would give their offices the authority to curtail practices that are deemed to be deceptive or unfair.

Because of the close scrutiny by Congress, several major banks have started to temper or remove some of their most criticized practices. Banks may need to do more to allay consumer fears, suspicion, and eventually, resentment.

How banks will respond remains to be seen.

Already one of the major credit card issuers, Chase, has begun to articulate its response. The bank has issued a June 12 statement saying that in their view the complex credit card system that exists today will be able to sustain its success if the two principal parties in the relationship the credit card issuers (banks) and the credit card holders (individual consumers) acknowledge that theirs is a shared responsibility. The credit card holder must use the card in a responsible manner; the bank must strive to meet the credit card holder’s needs.

Overall, the bank says the credit card has broadened access to credit to all consumers. It insists that average interest rates have gone down from close to 20 percent to only 12 percent approximately, and in many cases issuers no longer charge annual fees.

The bank has defined what responsibility should mean for the credit card holder: pay on time; keep within your credit limit; and maintain your creditworthiness. By following this simple equation, the credit card holder gets an interest-free loan for a certain period when they pay off whole balances every month, fraud and loss protection, and other benefits, plus instant and constant availability of credit.

The bank also delineates what it sees as its responsibility: make sure customers understand the terms of their credit card account; show them how to manage their credit cards; give them tools that help them pay promptly time and stay within their credit limits; spot those in trouble and point to avenues for financial solutions; and evaluate more carefully the credit applicant’s capability to manage debt prior to credit card issuance.

The bank has implemented a set of initiatives to promote greater customer understanding of the terms of their credit card account and to provide tools for managing accounts. This program is channeled mainly through the company’s special website, which it says details everything in clear and simple terms. Some of these initiatives involve:

Putting detailed instructions and calculations that clarify the implications of paying only the minimum amounts instead of paying more on the balance, if not paying it off entirely; Outlining procedures that allow customers in the military to keep their credit card accounts current when deployed overseas; Allowing all customers to choose their preferred due date for payments; Providing instructional materials for students and first-time credit card users to guide them in making prompt payments and keeping within credit limits; Installing a system of communications where customers can sign up for timely alerts sent via phone, e-mail and text messages to remind them of payment due dates; Providing for a system of automatic credit card payments; and, Creating an outreach program to reach those who may be having financial difficulties and to determine what assistance and financial programs can best help them.

Individual credit card holders like you have made your opinions heard, to both the legislators and the credit card issuers. By heeding your opinions, and altering the criticized practices, holding a credit card is becoming even better than before.

8 Important Facts Regarding Credit Card Bin Check

Credit card bin check is an all new practice to detect credit card fraud. It is kind of system that makes use of the BIN check process to check the first six digits of a credit card that brings all news about the card. Different credit card bin check service providers make use of the different systems to detect credit card fraud. It has not been a long time that credit card bin check has came to the fore, but with in this short span this service has worked in several ways for business owners. Credit card bin check services can help to detect any kind of fraudulent transaction from anywhere across the world. The BIN system included in credit card bin check helps to find out even the issuer of the card so that merchant can demand compensation from the issuing bank.

Credit card bin check for card types:

Credit card bin check service is the best option to detect what type of card is being used by the client. At present there is not a single financial institution that is issuing the card but they are multiple in number. As different types of card come with individual features, it is important to know about them in detail and credit card bin check services are thus being used rapidly.

Credit card bin check to prevent fraud:

Credit card bin check services are also being used to prevent credit card fraud. When you go for credit card bin check services you can collect necessary information on the card. You can cross check this information with the provided information to decide whether the client is fraud or not.

Credit card bin check and the issuer:

Nowadays credit card bin check up services has been so advanced that it is being used to find out the issuer of the fraudulent credit card as well. This advanced credit card bin check services are really good for any business that involves in huge amount of monitory transaction.

Credit bard bin check and identification number:

Credit card bin check services are being used to decide whether a card has a proper identification number or not. If your credit card bin check result shows that the card has doesn’t have an authentic identification number then be sure that the client who is using the card is not good for your business.

Credit card bin check for smooth transaction:

Credit card bin check services are must need to transact with client in a smooth way. Credit cards are being used to accomplish monitory transaction in lees time. If you go for a kind of credit card bin check you actually commence a smooth deal.

Credit card bin check fir advance services:

It is a competitive world we are living in and if you can deliver advance services you remain forward. Credit card bin check provides you with the opportunity to remain a step ahead from others, in terms of security.

Credit card bin check to save time:

Credit card bin check ease the ways of processing a credit card from every angle. In this way credit card bin check helps you to save time from a transaction.

Credit card bin check to increase revenue:

Credit card bin check always helps you to go for a safe and secure transaction. When you deliver safe credit card using facility to a client, you get maximum buyers. Thus credit card bin check helps you to earn noticeable revenue from online business.

Find Out More About Free Miles Credit Card

Travelling has become very expensive and individuals who travel on a regular basis, be it for business or for pleasure should take advantage of the available frequent flyer programs. Such programs are meant to encourage brand loyalty and certain banks offer free miles credit card. The prices of airline tickets continue to increase and companies have to come up with something to gain the loyalty of their customers. It is useful to know that credit cards points are very popular because of the perks they provide.

To begin with, free miles credit card follows a simple system: you gather miles every time you travel and these miles are transformed into points that can be used either for travelling for free once you have accumulated enough points or for enjoying cheaper prices. The good news is that these miles are valuable and they are designed to help frequent travelers save money in the long run. There are different ways to gather miles; for example some credit card providers enable you to accumulate miles by using your credit cards, by shopping from designated stores. Some companies offer you the possibility to double or triple your miles, while others give you miles for trying their products.

As you can see, gathering miles is not a difficult process and a free miles credit card is an excellent option, as it enables you to enjoy special travelling offers or even a free flight. Airlines do their best to convince travelers to resort to their services again and the free miles concept has spread across the globe. People are informed on how to get their frequent flyer miles and how to use them in an efficient manner and you can be among them. You should make the most of these cards that enable you to save money and the Internet enables you to compare offers and to see what each one is about.

Numerous people turn their attention towards credit cards points for they seem to be exactly what they need. If you travel regularly you should opt for a reward credit card with air miles; in fewer words, your reward points can be used for air miles and the best part is that you can choose any airline you prefer. Another great thing about these cards is that most of them have low interest rates and they are an excellent choice for international travelers. You can gather airline miles within a very short period of time and use them as you please.

To summarize, if you are determined to apply for a miles credit card you should become familiar with credit cards points and see how they work. Review your personal needs and financial situation and choose your card provider wisely, so that you get to use your miles. Reward cards enjoy lots of attention these days and we can see why. People seem to like the idea of getting something in return of their loyalty and traveling.

Shopping For A First Credit Card

Long before we are old enough to carry credit cards ourselves, advertisers make sure we know about the power of plastic: “It’s everywhere you want to be.” “It pays to Discover.” “What’s in your wallet?”

While using an ad campaign to choose a card is a terrible idea, the slogans have one thing right: A credit card can be a powerful thing. For teens and 20-somethings looking to pick a first card, taking the time to choose carefully can save money and offer a boost in establishing and building a credit history.

An excellent credit score will be helpful when you start to think about buying a car or getting a mortgage. Even if you do not plan to take out a large loan in the near future, your credit information can be a factor in renting an apartment, obtaining a membership at a club or getting hired for certain jobs.

Lenders use credit reports to determine how risky it is to give a borrower – that is, you – a loan. All in all, the lender just wants to know if the borrower will be able to pay back the loan. If the borrower has bad credit, then he or she probably made some major or ongoing financial mistakes and is more likely not to repay. On the other hand, if the borrower has good credit, then he or she has a history of paying back debt, and the lender will most likely grant the loan.

Credit cards are effectively short-term loans that need to be paid back within a short grace period. Getting the first credit card can be tricky. Credit card companies do not have any basis for your credit history since you have not borrowed any money in the past. So how are you supposed to establish and build your credit rating without a history?

One way is to apply for a secured credit card. Secured credit cards are backed by a deposit that you make upfront. Usually, the amount you deposit will be the same as the card’s credit limit. Everything else is like a regular unsecured credit card: You use the card to buy things; you make monthly payments; and you incur interest if you fail to pay off the full balance. A secured credit card should be only a temporary step to building credit. Try to pay off the total balance every month to show that you are financially responsible. After all, not only do you want to build a credit history, you want to build a good one.

Another effective way to start your credit history is to become an authorized user on someone else’s card. Many parents will designate their children as authorized users on their credit cards so that the children can build credit without the legal obligation to pay the balance every month. However, if the person whose account you are authorized to use does not handle the account properly, their mistakes could end up hurting rather than helping your credit.

Once you establish your credit history, you can shop for your first unsecured credit card. You will quickly discover that there are many to choose from. A number of factors can help narrow the search.

The most important of these is how you intend to use the card. Are you going to use it only for emergencies? If not, will you pay in full each month, or will you carry a balance on the card? Once you decide how you will use the card, follow your self-imposed rules. It is very easy, and dangerous, to continually swipe the card and tell yourself it is for a good reason. But it is crucial to be stubborn about establishing good spending habits, even – or maybe especially – early in life.

If you plan to carry a balance on your card, you must be aware of the interest rate of each card you are considering. The interest rate used by credit card companies is the annual percentage rate, or APR. There are cards with variable APRs, which are based on a certain index (such as the U.S. prime rate). There are also nonvariable APRs, which are usually fixed-rate credit cards. As a beginner, you will usually want a low-rate, nonvariable APR credit card, because knowing your interest rate will give you a sense of how much money you will need each month to pay at least the minimum amount due. A low-rate, nonvariable APR card will therefore help when you create a monthly budget.

In addition to interest rates, pay attention to penalties and fees. Reading the fine print in a contract can save you from owing avoidable charges. The most common fees include balance transfer fees, cash advance fees, fees for requesting a credit limit increase and online or mobile payment fees. Many cards also impose penalties for not paying your bill on time or going over your credit limit. You should hold out for a card with minimal fees and reasonable penalties. Even if other features of a particular card seem attractive, avoid the potential for exorbitant fees and penalties that could hurt your cash flow and your credit history.

Understanding your spending habits will help you determine which incentives will be important to you. Most cards offer rewards programs to their customers or offer cash back for certain purchases. Many cards offer 0 percent APR for the first six to 18 months that your credit card is open. These cards are great if you plan to carry a balance from month to month. Some cards even offer anywhere from 1 to 5 percent cash back on all or certain types of purchases. If you know how you plan to use your card, then certain cards’ rewards programs can save you a lot of money.

As a first-time cardholder, once you have chosen the card that is right for you, you may find it exciting to be able to swipe the piece of plastic and not have to pay in cash. But while credit cards can be useful tools, it is important to not fall into the black hole of credit card debt, which can be all too easy for an inexperienced user. Make sure to know how your credit score works and how to avoid penalties so that you will be able to make larger purchases and secure loans in the future.

Your payment history, the amount of credit you use and the number of negative marks on your credit history have the highest impact on your overall credit score. If you can, pay off your total balance on time each month, ensuring that you have a 100 percent payment history. Paying off your card every month comes with the added bonus of saving you from being charged any interest on a carried balance.

You will also want to use as low a percentage of your credit limit as you can. This ratio is called credit card utilization, and most experts recommend that you try not to go over 30 percent at any time. Credit card companies want to know that you are responsible with your spending and that you will be able to pay off your balance each month. You can either spend less each month or increase the credit limit on your card to lower the percentage used. You can also pay more than once per month.

Obviously, you should avoid any negative marks on your credit history. These can include collection accounts, bankruptcies, foreclosures, civil judgments or tax liens. Although someone applying for a first credit card typically will not have had time to worry about bankruptcies or foreclosures, keep in mind that such problems can severely damage your ability to secure credit in the future.

As a first-time applicant, you may find that the length of your credit history, the total number of accounts open or closed in your name and the number of credit inquiries also have an adverse rating on your credit score. Your credit history will be short. You will not have many open or closed accounts. Your first credit inquiry will most likely be from the company where you applied for your first credit card. Be patient. Building a credit history takes time, but as a young adult, staying on top of your finances, and especially your credit cards, will help you in the long run.

Credit cards can be both powerful and dangerous, but they are also a convenient part of everyday life for most of us. A first credit card offers a great opportunity to establish positive financial habits that will serve you well for a lifetime.

How Do I Get My First Credit Card?

In the economic environment of today, although you may not need to use it, having good credit is vital to survival. It positions you as a fiscally responsible person and can help ensure that:

You get better rates on your mortgage;
You get better rates on your car loan;
Your security deposit, if your utility company requires it at all, is as low as possible;
Your potential landlord favors you over someone with a bad credit rating; and
Your potential boss favours you over a candidate with a bad credit rating.
That being said, you should always keep in mind that the ability to obtain credit is a privilege not to be abused. It takes a long time to build up a good credit record but your reputation can be destroyed in a very short time. Do not borrow money that you cannot afford to repay.

How do you get your first credit card?

There is a slow way to get your first card fast. (And get a good credit rating)

And there is a quick way to get your first card fast. (You only need some collateral)

My hope is that if you are still young enough you will implement the slow way. If you are not – well keep on reading.

The slow way to get a credit card fast

Open a debit or savings account (having an account demonstrates stability.)
Become an authorized user on a parent’s, siblings or friend’s card (do not use this card and make sure that the primary account holder is financially responsible.)
Get a student credit card.
Consider an auto loan (the interest rate is usually higher but it is a simple way to build good credit.)
Pay all accounts on time (set up debit orders to pay your bills or have a reminder system in place so that you’re never late with a payment. This includes utility bills, cellphone accounts and accounts at stores.)
Keep your employment history clean (your work consistency and stability in holding onto jobs is very important.)
Maintain a stable place of residence for as long as possible (this home address can even be that of your parents. Having a fixed home address greatly affects your credit rating.)
Consider a loan from a peer to peer lending site (individuals who offer these loans compete with each other to offer you the lowest rates. Often lower
than the bank’s rates. Ensure that these sites report to all the credit bureaus.)
Get a copy of your free credit report every year and make sure there are no mistakes.
Building good credit is about proving financial responsibility and that you can reliably repay money you are trusted with. A single missed payment can negatively impact your credit score and take many years to disappear.

If all these things have been taken care of, getting your first card will be quick and painless. Just make sure you are able to pay the balances when they fall due or all of your planning and sacrifice will be for nothing.

The quick way to get a credit card fast

1. Pre-approved Cards

Companies which offer pre-approved cards get information from you through an electronic trail that you leave behind every time you apply for a card. If you have a good credit rating, you would be able to get a loan every time you apply and can prove that paying it back will not be a problem. You would also be able to get the benefits and privileges given to people with a good credit rating.

Everything is also visible online if you happen to have a bad rating. Potential lenders are also able to see that you have been disallowed credit and how often. This is a clear evidence that you are in possession of a bad credit rating. Only those with bad credit ratings get continuously rejected.

As such, they send you invitations so that you will be able to get hold of their pre-approved cards. If you take a good look at what they are offering, especially the conditions, you will see that they are asking higher interest rates. But, given your situation, this is may be a pretty good opportunity to try to bounce back.

2. Instant Approval Card

Search online for offers by banks and credit institutions for instant approval cards. These cards can be approved or denied in as little as 60 seconds.

Compare the benefits and obligations attached to these cards.

Apply for those that suit your needs and re-compare all those that are accepted. Most times, you will only need one card. It is not necessary to get all the cards for which you are approved.

3. Secured Card

With a secured card the credit card company will require a deposit held against the card’s use that will be used if you fail to pay the account. The deposited funds for a secured card are not used to pay for the goods and services as you use the credit card. This deposit will also determine the limit on your card.

Secured card providers report to the credit reporting agencies.

Pay all your bills on time and after six months of ‘good behavior’ you can consider applying to the same lender for an unsecured card. By this time, you will have established yourself as a responsible borrower.

If your application for an unsecured card is turned down, find out the reason. Not all lending institutions are the same. Some may require that you wait a little longer before applying for an unsecured card. Say anything from 12 to 24 months.

Do not re-apply every month. Unsuccessful applications reflect on your credit rating and can leave you with an unfavorable rating.

4. Pre Paid Card

A pre paid card is very similar to a secured card in that it also requires a deposit up front. However, unlike a secured card, the amount available from this deposit is reduced every time you make a purchase. In this way, your card actually functions as a debit card. The details of account behavior on a pre paid card are not normally released to credit bureaus. So, if you are trying to build up a good credit rating, this is not always the best option.

5. Retail Accounts

Some retailers issue cards for use only at its own stores, while gasoline companies offer cards for fuel purchases. Gas and retail cards are more likely to approve consumers with little to no credit history. Retailers and gasoline companies report activity to Experian, Equifax and TransUnion and are useful credit rating builders.

6. Joint Accounts

You can make use of a parent, a spouse, a close relative or a friend with good credit by opening a joint credit card account with that person. The bank approves the application based on the other person’s high credit rating, and the account gets reported in both cardholders’ credit files.

Use your card responsibly and always pay on time or you may damage your joint account holder’s excellent records. Make sure that your joint account holder does the same. You will want to get your own card eventually and a bad credit report will hurt the process.

7. Charge Cards

The providers include Diner’s Club and American Express.

Charge cards are similar to credit cards, but the difference is that the balance of a charge card must be repaid in full every month whereas a credit card balance can be carried over to the following month. Charge cards don’t have credit limits either, so you have to be sure to spend only what you can pay off at the end of the month.

The Pros And Cons Of Prepaid Credit Cards

Observers in the lending industry have estimated that there may be at least 50 million Americans who are not able to qualify for credit. These consumers are usually young, often members of the minority groups and unbanked…and they are faced with the long-standing dilemma of credit: how can I build my credit record if no one will give me any credit at all?

One of the answers offered by credit card companies is a variety of prepaid credit cards, designed for use by specific segments in the market. The prepaid credit cards are meant for that significant portion of the population that cannot meet the qualification criteria for regular credit cards, or who qualified before but have since lost their credit due to repeated defaults and other reasons.

Advantages of Prepaid Credit Cards For those who do not have enough credit history or have had it blemished, prepaid credit cards are an effective way to build or slowly rebuild credit. That may not happen immediately, but it is something to work on over time. The banks that issue prepaid credit cards are also prepared to extend normal credit the moment you are able to show that you have become a worthy credit risk.

For the moment, you may have to make do with prepaid credit cards. You can use prepaid credit cards as you would any other regular credit card to purchase airline tickets, reserve hotel rooms, or order items online.

Prepaid Credit Card for Students There is a special prepaid Visa credit card for students, which offers a lot of convenience not only for the students but also for their parents. These reloadable prepaid credit cards offer parents several options on how to reload. Parents can add money to reloadable prepaid credit cards by depositing money, by arranging an automatic transfer of funds from their account (a deposit account or their own credit card account), or by online transfer. Using the prepaid Visa credit card is no different from giving the regular allowance to their child, only they do so by electronic means and there is no more cash that changes hands.

The big advantage of the prepaid Visa credit card is that the student is limited to spend only as much money as there is in the card. The parent is thus able to control to some extent the spending behavior of their child. They can use the prepaid credit card anywhere that the credit card brand is accepted.

Prepaid Credit Cards as Gift Certificates Some prepaid credit cards function like gift certificates. You buy the prepaid credit card for a certain amount, and your recipient can purchase items with it at any of the brick-and-mortar stores or online merchants, and also for mail order items, that accept the particular credit card brand. Your recipient can use the prepaid credit card only up to the amount of money that you loaded on it. This particular version of prepaid credit cards is non-reloadable.

Like any gift certificate, recipients of prepaid credit cards can buy whatever it is they want at any time they want. Unlike a gift certificate that, when it gets lost is lost forever to the recipient, prepaid credit cards may be replaced if it gets lost or is stolen.

Prepaid Credit Cards for Travel There is a prepaid credit card designed for travel. These reloadable prepaid credit cards can be purchased in lieu of travelers’ checks or cash. In a way, it combines the best features of a credit card and a traveler’s check because of its convenience and security features. Should you lose the prepaid credit card while you are on travel, you can easily obtain an emergency replacement, both for the prepaid credit card and some cash.

Prepaid credit cards for travel are accepted all over the world, and also allow you to obtain currency from ATM machines. When you need to reload and you are already traveling you can arrange for the reload by phone or online. Apart from the fact that it is a prepaid credit card, you can use it exactly like a regular credit card. That also means you enjoy other benefits just like a regular card — reimbursements for lost luggage of up to $1,000 per cardholder if your luggage is lost; zero liability if your prepaid credit card is used fraudulently after you lose it or have it stolen from you; purchase security up to $500 per claim for any items you buy with prepaid credit cards, which subsequently gets stolen or damaged for certain reasons.

Generally, you can purchase prepaid credit cards of all the major credit card brands at their participating retailers. You don’t have to worry about not having acceptable credit because prepaid credit cards are made available without need of a credit report or a bank account. The only qualifications you need to have are that you have reached 18 years of age and that you must be able to present a valid identification issued by government.

Disadvantages of Prepaid Credit Cards There are a few things about prepaid credit cards that may not be as convenient as the regular credit cards. For one thing, you load only so much money onto it. You will need to keep track of the balance on the prepaid credit card because not all of the merchant terminals where you use the card may be able to help you determine it. However, there are procedures that tell you how to determine your balance, and you will these detailed on the back of the prepaid credit card and in the instructions accompanying it.

The process of reloading your prepaid credit card may be a little inconvenient to some. If you’re using cash, you would have to visit the participating outlet where you bought your reloadable prepaid credit cards. The more convenient way will be reloading online.

There are also the charges. Prepaid credit cards impose an application fee, the amount of which varies with the issuer, and there is also a service charge that you have to pay monthly. You also have to pay for transaction fees, charges when you transfer funds to top up the balance, when you replace your prepaid credit card, and many other fees. To be sure about the fees, you should read closely the fine print on the prepaid credit card account.

Prospects of Prepaid Credit Cards Prepaid credit cards do not provide credit; it is your money that you’re using. You are asked to pay other charges, so it is not for free. You are paying for the convenience and security of carrying plastic instead of large amounts of cash. People with bad credit will be able to act as if they had a regular credit card and enjoy the convenience of one.

Issuers of prepaid credit cards realize that it is a good way to monitor the credit behavior of the cardholder. A prepaid credit card would be a source of information that indicates to the credit bureaus and issuing lenders about how you as the individual cardholder use the card to pay your bills such as utilities. If these consumer data could be formatted in such a way as to provide the basis for a statistical model on probable future behavior in spending, then this could become the foundation for building a credit history.

You would benefit, because by using prepaid credit cards you are rebuilding your credit. The prepaid credit card issuers would benefit, too, because they would be making previously unproven customers bankable. More people could then qualify for regular credit, and that would mean tremendous incremental revenue for the lenders.

Select a Debt Consolidation Loan Carefully

If you own a house or condo in Nevada, you can take advantage of Nevada debt consolidation loans. Loans to consolidate your debt can lower your monthly bill payments by consolidating your high interest debt into one easy low interest rate payment. Your credit card bills, car payments, student loans and other debts may have interest rates well over 15%. Some of these interest rates may be so high that the balance keeps growing–even though you pay the minimum payment every month.

Consolidating your debt by taking a loan on your Nevada home can give you relief from high interest rates. This is because lower interest rates are typically given to debt consolidation loans backed by a Nevada property. You can then use the money you get from the consolidation loan to pay off other high interest debt, like credit cards. You then pay one monthly payment at this lower interest rate. Instead of wondering if you will ever catch up to that credit card debt, your monthly consolidation payment begins to erase that debt.

Select Nevada Debt Consolidation Loans Carefully

Finding the right Nevada debt consolidation loan for your situation may be confusing. The pressure of steep monthly bills may prompt you to take the first loan you come across to consolidate debt. But, like any important decision, research can pay off. You need to be aware of the fees and closing cost associated with the home loan and factor in those costs when trying to determine how much the loan may save you over time.

Today the internet provides you a very good resource to find the best available debt consolidation loans for your Nevada property. These online resources will give you offers from multiple lenders in your area that can be used to compare against the rates your get from your local bank. Debt does not have to cause sleepless nights. See if a low interest rate home loan can help you get rid of your high interest debt.