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 [] 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.

New Credit Card Balance Transfer Alert Service

Who wouldn’t want interest free credit for years and years? In theory that’s possible. You just ensure you sign up for a 0 interest credit card balance transfer every time your 0 interest period expires. But is your bank ever going to actually tell you when the expiry date comes round? Usually not, except in the small print. The 0 balance transfer credit card is not something the banks and credit card companies like reminding people of.

But all that is about to change. Technology can do a lot to simplify the way we handle our interest free balance transfer credit card accounts. If only we could remember exactly when the 0 interest balance transfer credit card period is about to elapse we could ensure 0 interest, free credit card use for a long time.

That’s where the Internet’s new Credit Card Balance Transfer Alert service comes in. Whenever a customer orders a credit card from this site they can send off what is known as an autoresponder. This will then tell the customer when the interest free period is due to expire. An email will arrive a week or so before the zero interest credit card time is up, thus allowing enough time for a 0 interest balance transfer to a fresh account.

This could be a 6 month interest free credit card or a 9 month interest free card. In some cases there also exist 12 month interest free credit cards where the balance transfer can take place over just a few days.

In extreme cases there also exist cards where the interest free period can be as long as 15 or 16 months, but these are very rare.

CEO Gordon Goodfellow says ‘We already have hundreds of very satisfied customers on our credit card balance transfer alert service. Lots of eople seem to like the simplicity of it. Who among us can remember a specific date just like that? In effect it means that our customers never have to pay for even one day’s interest being charged. It’s like having a 0 APR credit card for as many years as there are transfer offers.

‘Our records are updated electronically every time a new credit card with 0 APR offer comes along, so nobody misses out. The website gets data directly from the card providers to our customers. You can transfer your balance to a fresh card within minutes of getting the email alert. It’s that simple to use.’

Best of all, the Credit Card Balance Transfer Alert Service is completely free.

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.