Kevin Nelson asked:




Having a credit card is almost a requirement nowadays. From purchasing plane tickets, to renting a car or making hotel reservations, there are simply some things you cannot do without having access to a credit card. One good thing is that a lot of bank accounts not have “check cards” that allow you to make credit-like purchases that come right out of your account. But even with that added convenience, sometimes you simply need a “plain old credit card” and if you have bad credit, that can present a real problem when it comes time to fill out the application.

The most common option, and one that most people are familiar with, is the secured credit card. This type of card usually requires some form of collateral to be made available before qualifying for the card. The most common means for doing this is to open a savings account with the bank issuing the card and depositing a sum of money into that account. Then, a portion of the balance of the savings account becomes the credit line you have available on the credit card.

This is almost like a pre-pay type of arrangement and makes things easier for the borrower and the bank. The borrower gets quick and easy access to a true credit card that can be used anywhere and the bank knows that if the borrower defaults for some reason, they can still recoup the money they’re owed by pulling from the funds in the savings account.

Another option is an unsecured credit card specifically for people with bad credit. They’re hard to come by but are definitely out there. Usually, you’ll find these offered by smaller banks that are more willing to take risks with people with bad credit in order to get new customers and earn their business. With an unsecured card, you don’t have to worry about having to pre-pay with any sort of collateral and the bank essentially trusts you to do the right thing, use your card responsibly and pay them back on time.

With either of these options, you have to be fully aware of the fees involved. The bad news is that either way you go, you’re probably going to be paying higher fees and interest rates than someone with excellent credit. This is just one of the ways the banks minimize their risk. But not to worry though because if you pay your balance off each month (or at the most, every other month) then the impact that the interest rate will have on you will be negligible since you’re not carrying a balance.

In addition, once you establish a good payment history over a period of months or perhaps up to a year, you should see a boost in your credit score. Depending on how much that changes your score, you might be able to qualify for a better card with better rates. So essentially, the bad credit charge card can be used as sort of a springboard to help get you up to a higher credit score and qualified for better rates (if managed responsibly).

If you’re ready to explore your options for bad credit charge cards and help boost your credit score by responsibly managing your new credit account, start researching your options today to see which offers might meet your needs.

Virginia

Jack M Patterson asked:




Prepaid debit cards have advantages over credit cards, as well as some limitations. Both kinds of “plastic” let you make purchases safely and conveniently without having to carry cash. Both are widely accepted by stores, restaurants, and other bricks-and-mortar and online merchants. The main difference between the two is that spending using a credit card is a form borrowing while with a debit card you are spending your own cash that you have already deposited to your card’s account. Thus you have “prepaid” for your purchase.

What Debit Cards Can Do that Credit Cards Can’t

Debit cards let you deposit your money into an account and spend it as you see fit. In contrast, you can’t deposit money on a credit card; you can only use credit that you then have to pay back. Even a “secured credit card”-for instance where you have to put $500 down as collateral to cover your charges-does not allow you to add your own money and withdraw it interest free. Rather, your deposit is only securing your line of credit and is not accessible to you until you close the credit card. Your line of credit could be increased beyond your initial collateral deposit as you develop a good payment history.

You have many ways to add money to a prepaid card, such as using a money transfer agent or purchasing a Greendot MoneyPak at a broad swath of participating retailers nationwide. You can even set up a direct deposit to your debit card for all or part of your payroll or benefits payments.

Debit cards can curb your impulse spending. The reason for this is simple psychology. It’s your money, and you can only make purchases on the card if you have enough funds in your card account to cover your purchases. Unlike writing a check which might bounce, you can’t get overdrawn. And unlike paying with a credit card that only limits your spending, based on the spending limit of the card, you can’t borrow money that you don’t have. You don’t have to worry about going further into debt and having to make monthly installment payments to pay back the charges. Odds are you will think twice about every purchase and will be more mindful of your budget.

Some debit cards let you check your purchase history and balance online, by calling a customer service number, by using an ATM machine, or even using text messaging on your mobile phone. In today’s economy, more and more people are finding it harder to get a credit card. But it is easy to get a prepaid debit card with a Visa or MasterCard logo on it. All you have to do is pass an identity check which helps prevent fraud. An identity check basically establishes your name, birth date, and address matches your official identity usually matched against your social security number. With a debit card, you’ll have the flexibility of a credit card yet peace of mind that you will not be going into debt.

What Debit Cards Can Do that Checks Can’t

If a retailer does not accept personal checks, it likely will accept a debit card as a form of payment for products or services. Just ask or look for a sign that reads that MasterCard or Visa cards are accepted. While debit card purchases technically run on a different network than credit cards, these networks are still run by MasterCard or Visa. If you write a check and don’t have enough funds in your bank account to cover the amount of the check, you can get overdrawn. This can mean hefty overdraft fees for every bounced check, sometimes as much as $30 per check. A check card (a debit card that is tied to your checking account) can still put you at overdraft risk depending on the bank. Most reloadable prepaid cards, however, will not allow you to become overdrawn and thus can’t hit you with an overdraft fee.

Writing checks, or even using a check card, does not help you build credit. That is also the case with prepaid cards, unless they are tied to credit building program like the iAdvance(R) Line of Credit from MetaBank. This program lets you take out small loans on your card, for example $20, and every time you pay them back that fact gets reported to one or more of the major credit bureaus.

Debit Card Limitations

Credit card consumers generally speaking have more leverage against merchants than debit card consumers in disputes over charges, given current Federal regulations. MasterCard offers a zero liability coverage for unauthorized use of a Prepaid MasterCard, which do not apply for PIN transactions (which is why it is important to protect your PIN number).

Perhaps one of the biggest limitations is the consequences of not reporting a lost or stolen card to the bank issuing your card within 48 hours. The level of protection differs from state to state. If the lost card is never found, or the cardholder reports the theft within 48 hours, the FDIC-backed funds will remain safe, and can be moved to a new account when the original account is closed. But a cardholder who fails to report the lost or stolen card in a timely fashion could wave goodbye to his or her money that was once on the card but spent by the thief. The amount of liability will depend upon the policies of the bank issuing the card as well as the state laws governing any such limits.

Wesley

Mario R. Churchill asked:


Choosing the best credit cards offers on the internet is like finding a needle in a haystack—a difficult task, but not totally impossible.

So, if you are planning to apply with any of the internet’s credit card offers, it is suggested that you run first a credit report and study the entire parameters of the presented offer.

Try to compare the all of the online credit card offers available, and then select the best one that will perfectly fit your needs.

There are several sites in the internet where you can just simply apply and start a credit either for business or for personal use. Look for the site where you can compare the online credit card offers easily and immediately. Select the one which has a variety of selection in major companies of credit cards and banks in America.

Pick the sites where you will be given knowledge regarding the best online credit cards. Likewise, the sites where there is prompt services and preserve customer satisfaction. In this process you will be assured that you will get familiar with the leading credit card offers before you finally apply for an online credit card.

Take note that excellent credit card offers are those that assure immediate online approval; give off rewards like cash rebates, point rewards, hotel rewards, air miles rewards, and gasoline rewards.

However, the approvals do not directly mean each one will be approved. The offers are continually changing, each day, new credit card offers emerge.

Moreover, paying for the credit card bill on time is very important, if you don’t, you will reap a bad credit. But if you have done this already, and you think you will no longer qualify for these online credit card offers, do not fret. There are still unsecured credit cards or secured credit card offers that will give you chance to have a good start.

The following will acquaint you on the usual kinds of credit card offers:

The Cash Back Cards: these cards are becoming very common. Here you will get five percent back on definite purchases. Numerous cards are focusing on thorough types of spending practices like entertainment; daily purchases; etc. Establish a plan regarding your expenses to make the most of your returns on these great cards.

Air Miles Cards: Though these cards were already present in the 1990s, they remain popular until these days. The flyer cards’ offers are quite alike to the back card offers, though the rewards are tallied as reward miles. Be sure to be able to understand the fine print as this will uncover the flight restrictions including the bonus plans.

Balance Transfer or Low APR Cards: if you are money-wise, these cards are preferable to you. These cards are suited to those who tend to hold a balance on their card. Getting a good balance transfer or small APR card can radically lessen your monthly costs. This will give you a chance to lessen the amount you are paying for in your debts without adding the burdens of interests on your shoulders.

Instant Approval Offers: these cards will give you the chance to start easily and instantly. The process is only simple; you can apply through the internet and get a decision right after a few seconds of filing your credit card application. Several banks are now offering the instant approval method.

These are the four usual kinds of credit card offers. Although, there are still numerous available credit card offers, take your time on shopping around for the right one for you.



JEAN