Secured Credit Cards – the Basic Facts

Credit card is a part and parcel of modern life. The credit card offers us the ease and simplicity to spend money without carrying cash, is versatile and handy to use and provides us the means to establish and recreate our credit rating. The secured credit card is however, not without its disadvantages, the main one being high interest rates charged on it. How would you rate your capacity to purchase a home or the car you want or the loan you simply need? How significant is it for you to have a good credit rating? In order to establish and spruce up your credit score, the best possible option is to have a secured credit card. A secured credit card is in effect the opportunity to regain a sound financial position. Due to the easy accessibility of credit reports through well-established credit bureaus today, credit issuers rely increasingly on these reports to make their final decision on providing you credit. A credit card is often denied to you when you do not have a credit history. This is often in the case of the young adults who have never taken out a loan or have so far used a credit card through a parent. It can also occur in the case of divorced people who have never had a credit card in their name. Secured credit cards [http://www.creditrunner.com/secured-credit-card-offers] thus provide the best means for anyone to establish a credit history. The secured credit card by virtue of being secured by your own money allows the issuer to feel safe, ensuring their money back in case you default. Since the issuer is also holding your money, they persuade you to make your payments regularly instead of losing your security deposit on the secured credit card. Secured Credit Card – A credit card with a security deposit Very often when you rent an apartment, the landlord will ask you to deposit an amount equivalent to a month’s rent into a special account. This amount acts as security and is not used till you move out. When you move, this money along with interest is returned to you. You will not owe the landlord any money if you leave the apartment without any damages. The same rule applies to the secured credit card. In a secured credit card you have to deposit an amount as security equivalent to 50-150% of your credit limit in a special account with the credit card issuer. The credit card issuing company will provide you with a secured credit card which is used like a regular credit card. The only difference being that only you and your credit card issuer know that the secured credit card has attached to it a security deposit. Provided you use your secured credit card wisely, the security deposit will not be used. This means that the secured credit card will be used to make reasonably priced purchases and the monthly bills will be paid regularly and fully as far as possible. To increase the credit available to you on your secured credit card, you can either increase your security deposit or get as many secured credit cards as possible. The credit card issuer will soon increase your credit limit from 50% of your deposit to anywhere between 75% and 100%. The interest rates on secured credit cards are usually quite high. In the even that you have been rejected for credit by some companies you will be thought of as a significant credit risk. The issuing companies are taking a huge risk in lending you money through secured credit cards, and these interest rates are based on these risks. A secured credit card is not suitable for people with a solid and established credit rating as they can avail of credit cards with lower rates, rewards and other benefits. A secured credit card is for people who have had a bad credit or no credit to start with and need to mend their credit scores through a responsible show of credit card handling.

Six terms you should know about your mediclaim health insurance policy

Everyone knows the benefit of having a mediclaim health policy in his or her life. However, a majority of the people in India do not go through the entire mediclaim policy booklet. You should understand every word written in the policy booklet for you to make the perfect claim. Even the best medical policy for family would include certain words that require explanations. Some of the insurance terms can appear like jargons. However, they are not. You should read and understand the same. We shall now look at some of the common terms in an insurance policy that could cause confusions in the minds of the people.

Hospitalization:
You should understand one point very clearly in India. The insurance cover is available only if your medical condition entails hospitalization for a minimum period of twenty-four hours in a network hospital. You may have doubts as to what constitutes a network hospital and what does not. In the past, this used to be an issue. Now, the insurance booklet contains the list of all network hospitals in India. The insurance companies update this list every year and provide you the latest one when you renew your mediclaim policy.

Pre-hospitalization and Post-hospitalization expenses:
This is a very positive aspect of mediclaim policies in India. In case you suffer from a disease that entails hospitalization, you can claim the pre-hospitalization expenses for a period of thirty days prior to your hospitalization. This entails that you should keep all your medical diagnostic test reports, medical prescriptions, as well as the bills ready on hand. At the same time, the insurance policy also covers the post-hospitalization expenses for a period of sixty days as well.

Pre-existing diseases:
This term can be quite confusing for the policyholder. You can see the rejection of many claims due to this factor. Hence, it becomes imperative for you to understand as to what is a pre-existing disease. This could include any disease or symptoms of the disease you might have had or shown prior to purchasing the insurance policy. You have to make a declaration to this effect at the time of purchasing the mediclaim policy.

Exclusions:
You should have a clear idea about what your insurance policy does not cover. This could include certain disease such as cataract, hernia, etc for a minimum period of two years. Subsequently, you may get the cover if you renew your policy on time. The insurance policy document would have listed out these exclusions clearly. Going through the same is to your advantage.

Waiting period:
Many people believe that the insurance policy covers the diseases from the moment you take the policy. It is not so. There is a minimum waiting period of thirty days for any disease. The pre-existing disease could have a four-year waiting period whereas disease such as cataract etc can have a waiting period of at least one year.

Day-care treatment:
Today the medical science has made tremendous advancements. Certain procedures such as eye surgery, chemotherapy, etc require less than twenty-four hours for treatment. The present day mediclaim health insurance policy has provisions to honor such claims as well.

How To Build Your Credit Card Rating

Almost everybody knows the main advantages of owning a credit card. Credit cards are used all over the world and they are the most popular payment system these days. It is easier than ever to pay airline tickets or holidays using it, in almost every country. But the credit card rating is paying a significant role in the cardholder’s life. If the cardholder has a very good credit history, this will help him to gain more advantages in the future. If the credit rate is bad, it can be improved. The user can apply for a credit card, use it and pay off the entire balance on time. In a few years their rating with the issuers (credit agencies) will be very attractive. The cardholder will be considered a borrower who repays on time.

The APR (annual percentage rate) is very important too; it is a periodic rate, the result of the annual amount, used to calculate the finance charge on a balance. A credit bureau is maintaining the customer credit report. This report contains the cardholder’s name, address, credit payment history and the social security number. Banks will report any negative or positive credit payment information. Some reports will come also from the power or telephone companies. This information will be considered when the cardholder is asking for a loan, or a credit card. The credit bureau will decide whether the bank will lend or withhold the money.

Credit cards make it easier for the cardholder to obtain loans for a home or a car. The cardholder must deeply understand the way the credit card works. The credit card balance will also include added interest that has to be paid. It can be an important factor when the cardholder rents an apartment. The only condition in obtaining a good credit card rating is ensuring that all bills are paid on time.

A good credit rating will prepare for a happy future too. Choosing a credit card is sometimes a really difficult decision. The credit cards features such as the APR (annual percentage rate), annual fees, repayment requirements are important things to consider. To establish a reasonable credit rating, all the bills must be paid on time. It is also important to not have larger amounts of outstanding credit. The cardholder must ensure that he can afford to repay what he has borrowed. If a positive credit history is not established, credit card building is a must. Many customers are unable to use the credit cards benefits because they don’t know the issuers conditions and carry a balance from month to month.

The cost of creating and maintaining a credit card account depends on the issuer and on the customer’s behavior. Credit card firms are constantly looking for new modalities to make their rates more attractive.