Credit Cards - An Explosive Expansion Around the World
Aug 31, 2007 Credit
Whether you are buying a pair of shoes, a coffee, a car or even an exotic holiday, you will be asked how you would like to pay. Conch shells, precious gems and rare metals have all been exchanged in the past for goods and services, but modern man uses money in the form of paper bank notes, non-precious metal coins and increasingly people are opting to pay with a credit-card, a conveniently small piece of plastic kept safe in their wallet or purse. Today there are more credit-cards then ever before and the boom in the industry since its inception in the 1920s has revolutionised the way people pay for their purchases and gain credit.
Credit cards are developments of earlier credit schemes employed by merchants. During the early introduction of the automobile, an American petrol station owner realised that people needed a form of credit to pay for petrol for their cars. The company provided customers with a card credit system, allowing them to pay for their purchase over a period of time to suit their individual circumstances. This service is recognised as the first credit card scheme in the world.
Today credit cards give consumers access to monetary credit. The account holder is issued with a card with which they can make purchases. These purchases are paid for by the credit card company and recorded against the account holders account. The credit card account holder is then sent a balance of their account monthly and they must pay a minimum amount agreed with the lender each month and also have the option to pay more back if they desire. If the account holder does not pay the total balance, an interest payment is accrued and charged to the account.
The explosion in the use of credit cards throughout the UK has been dramatic and is unlikely to change in the future, there are however downsides to the service as credit card providers charge consumers higher rates of interest than many other credit suppliers. As consumers have increasingly used credit-cards, personal debt has risen dramatically in the UK. During the 1990s, credit card debt rose to its highest level in history and it keeps increasing annually. Alternative methods of credit that accrue lower rates of interest are available, such as secured loans which can be more cost effective for consumers making planned purchases.
Bad Credit Repair Yourself - 4 Steps to Repair Bad Credit Yourself
Aug 31, 2007 Credit
Does your bad credit cause you to miss out on sweetheart deals or keep you from getting the things you want now?…on terms you can live with? Let me share a short story with you…A few years ago… I had horribly bad credit. Though it was mostly might own fault for the mess I was in…It deprived me of getting my dream house and all the other things I wanted and deserved. Which lead me on a journey…looking for any and all advice on how to do bad credit repair yourself I could find.
There are lots of ways for you and I to repair bad credit. It’s really quite easy once you know how…and I’m going to share with you some advice to help you repair bad credit yourself.
Step One– Getting your credit reports
Order your credit reports. Do you know whats on your credit reports? If you don’t you really should. Notice…I said “reports”. Why? because there are 3 major credit reporting agencies (Experian, TransUnion and Equifax) and each has it’s own data base. You can get 1 free credit report per year from each agency. Review your reports and make note of any errors, incomplete or false entries that aren’t yours.
Step Two– Know you rights…The Fair Credit Reporting Act
Before you contact the credit reporting agencies to dispute them…visit the federal trade commission website (http://www.ftc.gov/bcp/conline/pubs/credit/freereports.shtm) and learn what your consumer rights are. Would you believe me?…if I told you that you can demand removal of any false or incomplete entries on your credit reports and the credit agencies MUST comply under penalty of federal law.
Step Three– Time to take action…Dispute the Credit Reporting Agencies
Now that you have an idea of whats on your reports…it’s time to challenge any discrepancies. Sit down and write a letter to each credit reporting agency about any erroneous entries…Now, don’t be afraid of the “credit police.” You see…these agencies are nothing more than a clearing houses who’s only purpose is to collect and store credit information on you and I… to sell that information to merchants that we apply to for credit.
They have no special power over us…they’re just in business to make a buck.
Be Credit Wise - Tips For Credit Cards In Australia
Aug 31, 2007 Credit
These days, life without a credit card would be hard to imagine. We have become so used to the convenience of “plastic”, we don’t leave home without it. (Sound familiar?) While you can’t dispute the ease and convenience of not having to pay in cash at the supermarket, petrol pump or pub, here are some handy credit card reminders.
1) Say no to cash advances
Some people just don’t get it, but the bank does. The Interest-free periods offered on credit card accounts never apply to cash advances. In the majority of cases, you will pay interest on the cash right from the second you withdraw it from the ATM or over the counter. The dollar penalty can really add up, so it’s best not to do it. Ever.
2) Watch out for Store Cards. Loyalty can cost you
How often have you been at the cash register and asked if you would like to apply for a store card? Probably plenty of times. Department stores such as David Jones and Myer may offer you the benefits of customer discounts, added warranties and extended credit, but they aren’t cheap. Although you don’t pay an annual fee, the interest rate can be considerably higher (sometimes several percent) than alternative credit cards. It’s fine to use them for store specials and loyalty benefits, but pay the balance in full by the due date. In this way you avoid being whacked with huge interest charges.
3. Choose a card that matches your lifestyle.
Think about your spending habits and patterns. For example: if you use a card for extended credit and don’t pay off the full balance each month, just a basic payment, choose a card with a lower rate. It may not offer any interest-free period, but the lower interest rate should save you more dollars over time.
If you use your card for everyday groceries or filling up the car, go for credit card with maximum interest-free days. Make sure you pay it off in full each month. This way you get the benefit of up to 55 interest-free days on purchases, as well as rewards, discounts and frequent flyer points. But watch the annual fees on rewards cards.
4. Interest-free periods are void unless you pay in full
Don’t let your credit card get out of control. To avoid paying interest on your purchases, you must pay the full balance – that figure in black and white on your statement (not just the minimum payment required) by the due date. If you don’t, be warned. You will be charged interest right back to the date of purchase on each item. In effect, you forfeit the interest-free period on those purchases.
5. Search beyond the local banks
These days, there’s a lot more choice out there - not just the usual local banks. Look at credit unions, building societies, community banks, boutique and online banks. Chances are you may get offered better interest rates or lower fees than the big banks because these new providers are anxious to win business or they are non-profit organisations. We put this theory to the test. We tried HSBC and came up with 5 different types of credit card.
