Credit Card ’s Talk

Whether you have no credit or damaged credit, secured credit cards are a good tool for building a good credit history.

Several months ago Tom, a member of CreditBoards.com, filed for a Chapter 7 Bankruptcy. Now he is in the process of rebuilding his credit history. It?s a task that is not easy, but with patient persistence he is seeing progress already. Daily he checks his credit score and is slowly seeing improvement.

1 - In addition to correcting every mistake, even the smallest ones, on his credit report, he is using a secured credit card.

2 - This secured card is an important tool in the overall process of building or rebuilding credit.

Who should consider a secured credit card?

Someone who has no credit history.

Someone with a damaged credit history.

What is a secured credit card?

Secured cards are credit cards opened with a deposit into a savings account, money market or certificate of deposit. The amount of deposit required varies from card to card, but generally minimum amounts range from $250 - $500. These funds are considered your security and will even earn a little interest since they are being held in a savings account. Your credit limit is determined by the amount you deposit into the savings account. Sometimes the limit will be for the full amount of the deposit; other times it will be a percentage of the total.

It is important to keep in mind that a secured card is a credit card, not a debit card. If full payments are not made each month, then interest is charged on the outstanding balance. And the lending institution uses the security money to pay off the debt only as a last resort. Even though the card is secured, it is still possible to damage credit.

What are the benefits of a secured credit card?

Establishing credit. If you have never had a credit card, a good first step in establishing good credit is applying for a secured credit card. Assistant Professor of Economics at Austin Peay State University in Clarksville, TN, Jerry Plummer says, ?A secured card is most useful for the person starting out on their credit history, since it says that the person is willing to take the extra step to establish credit.?

Reestablishing credit. If your credit history is damaged, you may only be able to qualify for a secured credit card. Using this secured card appropriately and within the set parameters will help rebuild your credit and qualify you for an unsecured card. If you have had to file for bankruptcy, however, you may not qualify until it has been discharged.

Preset limit cannot be exceeded. If poor spending habits were part of the cause for bad credit, then a secured credit card will help keep spending in check.

Useful for transactions that require a credit card. Hotels and car rentals require the use of a credit card. If you don?t qualify for an unsecured card but you do for a secured card, then you are still able to make the transaction.

What should I look for or avoid when shopping for a secured credit card?

Fees. This is the area you will really want to research when shopping for a secured credit card. Some cards will come with fees that run into the hundreds of dollars, eating away much of the credit you secured with the savings account. Professor Plummer says a card with no fee is the best, but a small one-time fee can be okay. Annual fees for attractive secured cards typically range from $20-$35. Be sure to watch out for hidden fees such as ?registration charges? and ?setup fees.?

Interest Rate. Just because you have no or poor credit doesn?t mean you have to settle for the highest interest rate. Interest rates for attractive secured cards should not exceed 19%. Shop around and get the most competitive rate available.

Read the fine print. Linda Tucker, Director of Education for Consumer Credit Counseling Service for Arkansas and Memphis, TN, stresses the importance of reading the fine print. Doing so will let you know your exact obligations to the issuing company: for example, the grace period, what happens if you don?t make a full payment, and what fees are attached if you don?t make the full payment. Understanding these details will help make sure you are not further damaging your credit.

Fraudulent Offers. As with unsecured cards you need to watch out for fraudulent offers.The Federal Trade Commission gives the following advice to protect yourself from credit card fraud:

• Offers of easy credit. No one can guarantee to get you credit. Before deciding whether to give you a credit card, legitimate credit providers examine your credit report.

• A call to a ‘900′ number for a credit card. You pay for calls with a ‘900′ prefix — and you may never receive a credit card.

• Credit cards offered by credit repair companies or credit clinics. These businesses also may offer to clean up your credit history for a fee. However, you can correct genuine mistakes or outdated information yourself by contacting credit bureaus directly. Remember that only time and good credit habits will restore your credit worthiness.

When will I qualify for an unsecured credit card?

It can take several months to see an improvement in your credit history. Bankrate says it?s a good indicator when you start receiving flyers in the mail for unsecured cards that your credit is improving. However, it?s a good idea to continue taking things slowly. Using a secured card will help you learn healthy habits so that when you do get an unsecured credit card you remain in control of your spending and credit.

Where can I find a secured credit card?

Most companies don?t advertise secured cards. But you can visit the Card Reports section of http://www.CardRatings.com to find out where and how to apply. Click on the link entitled ?Cards for Consumers with Poor or No Credit?.

Other tips

Tom recommends sticking with only one or two cards and keeping spending to a minimum. The goal is to pay the card off each month.

Tucker emphasizes the importance of paying the amount due each month; otherwise late fees can be charged, interest rates raised, privileges lost, and credit history negatively affected.

Make sure you are getting a credit card as opposed to a gas card or a department store card.

Make sure a reputable bank or credit union, even a local one, is issuing the card. And, don?t automatically assume a bank is issuing the card.

Not all issuers report to the three major credit agencies (Experian, Equifax, and TransUnion). It?s important to get a card that does report to all three agencies; otherwise you will be wasting your time. Fortunately, secured cards normally report to the credit agencies just like unsecured cards (you should verify this before applying).

If you have filed for bankruptcy, you may need to wait until it has been discharged before qualifying for a secured card.

Get one only if you cannot get credit, since you have no credit record; or if you have poor credit. Plummer says, ?Many companies will not even count them as credit, such as automobile F&I (Finance and Insurance) people, although they will not admit it.? So, if you don?t really need a secured card, you will be doing more harm than good.

Finally, whatever situation you are in, no credit or poor credit, the best way to build good credit is to set up a budget and then stick with it.

1 You can pay membership fees to any one of the three credit bureaus ? Experian, TransUnion, and Equifax- to be able to check your credit score online daily. Visit our Credit Information section for more details. Tom recommends purchasing Microsoft Money 2004, which comes with a one-year membership to Experian (value of $99.00).

2 To find out more about correcting errors on your credit report, read our article How to Correct Mixed or Split Credit Reports.

About The Author

Amy Cooper-Arnold is a staff writer for http://www.CardRatings.com. Amy has been employed in various accounting-related positions. She will graduate this December from Austin Peay State University with a degree in English.

For many people, bring up the term, ?credit card,? and they?ll roll their eyes. Most of us understand the powerful pull that pulling out the plastic has on us. It?s almost addictive, the ability to pull out your credit card and use it to charge anything, anywhere, anytime. Many money counselors will advise you to lock your credit card up and go on a cash basis if you?re having a hard time with your debt.

But what many people don?t realize is that carrying credit can be a lot better than carrying their cash and here?s why: the Fair Credit Billing Act (FCBA). If you?re carrying your plastic and lose your wallet, you?ll never have to pay more than $50 of unauthorized charges to your credit card. Depending on how much cash you carry along in your wallet, this can save you some money in the unfortunate event that your wallet or purse is lost or stolen.

According to the FCBA, if you report that you?re credit card is lost or stolen before it?s used again, you?re not responsible for any of the unauthorized charges. Otherwise, the maximum amount that you?re legally responsible for is $50. Something else to consider, if only the number was stolen and not the card, then you?re not liable for any of the charges that the ?number? thief puts on your credit card account.

Keep a list of your credit card numbers along with contact information for the credit card company some where handy but separate from your actual credit card. This way in the event that your card is stolen or lost, you can more easily take care of reporting your loss. Hurry, those minutes saved might save you $50!

For more information on what to do if your credit card is lost or stolen, take a look at what the FTC has to say at http://www.ftc.gov/bcp/conline/pubs/credit/atmcard.htm.

Apply Online Free For A Credit Card. We have the a variety of Chase Credit Cards and Discover Credit Cards to choose from! Each one of our Credit Card Offers accepts Online Applications which makes it fast for you.

Do you know your credit score? If not, you should check it out before you make any more loan applications or credit card requests. Credit scores range from approximately 350 to 850. Provided yours is over 680 you are considered a prime borrower and so will be offered the lowest interest rates on your loan. Below this figure and down to 560 you fall into the sub-prime group and have to pay a considerably higher rate. Below 560 you will have difficulty in getting any loan and, even if you do, it will be at an exceptionally high rate of interest.

Your credit score is calculated using the FICO rating system which is named after Fair Isaacs and Co, the firm that devised the method. Five factors are considered in calculating the score, but some of these are more important than others. I have listed these below in order of importance.

35% Payment History. This is your record of payments where any late instalments or missed payments are recorded. As you can see this is the most important of the five factors making up your credit score so you need to make every effort to pay on time.

30% Amount Owed. This factor looks at the total outstanding balances on all your loans and cards and also the proportion of your approved credit that you are actually using. Someone who has several cards which are all near their limit will clearly have a lower score than a person whose outstanding balance is only (say) 30% of the approved credit figure.

15% Length of Credit History. Generally speaking the longer credit history you have, the higher your score. For this reason you should always think twice before closing an old account.

10% Type of Credit. Your score will be boosted if you have a variety of borrowings, eg mortgage, student loan, car loan, credit card, rather than just one or two.

10% New Credit. This factor looks at your recent credit history. This is where making a large number of applications can have a detrimental effect. However since this factor only has a 10% weighting, it is less important than sometimes thought.

Awareness of the five factors that are considered in arriving at your credit score will enable you to make sensible decisions in handling your credit.

Hugh Harris-Evans is an author and the webmaster of CreditCardCleanup.com where you will learn all you need to know about credit cards and how to keep out of trouble. http://www.creditcardcleanup.com

There are a variety of ways that thieves can get your information and use your cards to make purchases. Here are a few of the more common ways:

You pay for dinner at the restaurant with your credit card. Your waitress takes the card to the register, processes the transaction and returns it. What you didn’t see was the copy of your card details that she made, and later used it to make purchases online and by phone!

You can’t believe your luck when you get a mailing that says you’ve won a free trip and all you need to do is join a travel club to get the free trip. After providing your credit card details to join the club, you never get the free trip and you start seeing charges on your statement that you didn’t make!

A thief finds copies or receipts of items containing your credit card details in the trash and then uses the information to make purchases.

Fraud like these examples cost cardholders and credit lenders several hundred million dollars every year. While you cannot prevent all fraud from occurring, there are reasonable things that you can do to help prevent and protect against credit fraud.

When using your credit card to pay for dinner at a restaurant, draw a line through all the lines above your signature that do not contain money amounts. So if you have left a cash tip on the table for th server, draw a line through the tip line on the receipt, or even write left on table in the space to make sure that the server doesn’t add a tip in after you leave! Try to keep an eye on the server when he or she takes the card to the register, processes it and returns to your table.

When you get a new credit card, sign the back as soon as you receive it. Carry credit cards in a different place from the rest of your cash, and even someplace other than your wallet if possible. Save all of your receipts so that you can compare amounts to your actual billing statements, and open the bills when they come in and verify that they are correct each month. Reconcile the account in the same way you would a checking account to make sure everything is correct.

When you are moving, notify your credit card companies immediately with the new address so your statements are not finding their way into someone else’s hands at the old address.

Don’t ever write your account number on the outside of an envelope, or on a postcard. Anyone could notice it and write the information down.

When shopping online, make sure the websites that you are shopping from are secure. They should have an SSL certificate displayed, or at least have a domain starting with https, where the s indicates it is a secure page and it’s okay to enter your card information.

If you must provide your credit card information by phone, be sure the company you are giving the information to is reputable.

Open your statements each month even if you know you did not make a purchase. Make sure that there are no purchases on the account that you didn’t make. If a purchase shows up on your billing statement that you are unsure of, call the company and find out who it is, and what they sell and see if you did make the charge and simply forgot. If you still don’t know who the company is, or know you did not make a purchase- get on the phone and call the card company as it is most likely a fraud case.

If you still find yourself a victim of credit fraud, you need to immediately call the credit lender. Once reported, the law protects you against any liability for unauthorized credit charges, and you will only be liable for up to $50, which is the maximum liability according to federal law.

This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for a credit card online.

Simply put, a credit card rebate is a cash reward a credit card company gives you for using their card. In terms of how the card actually works, the company that issues the rebate credit card charges the vendor from whom you make the purchase. You make the purchase from that vendor because you are getting cash back through your rebate credit card. The credit card company shares its earnings from vendor tie-ups with you, and thus attracts more customers. So everyone benefits.

Types of Rebate Credit Cards

There are a number of different rebate credit cards that cater to different types of people. The credit card rebate that works for Jack may not work for Jill. Or in starker terms, one mans meat is another mans poison. Some rebate credit cards are tailored for businessmen. Some credit cards give very high rebates up to 5% through certain programs. If you find that you fit into that program, and the purchases you normally make are in line with those offered by that program, you stand to save a lot of money

Again if you are a doting mother who just can?t get enough toys for her kids, you can find a credit card that gives you rebates every time you do that. A certain rebate credit card would be perfect for someone who couriers frequently. Such a person should find a credit card that gives him rebates on payments to a courier company.

Some rebate credit cards can give you up to 10% in credit card rebates on certain purchases for a specified period. If you fit in there, you stand to save a bundle!

But how do you find the card that fits in with your needs? The Internet is a good place to start with some of the best rebate credit cards available with a few clicks of the mouse. A little homework can save you money where you never imagined it could.

Credit card rebates offer an advantage to frequent flier miles. You can use the rebates as you want. The rebate credit card can also be an important money management tool which will benefit you for years to come. To benefit the most, take your long term needs into account when choosing your rebate credit card. Be specific to your financial needs. If necessary you can even use two rebate credit cards to take advantage of two bundles of offerings.

Check the Details

Always remember to check for the APR offered by the credit card, as well as the annual fee. There are numerous offers available for rebate credit cards at 0% APR for 12 months and no annual fee for clients with very good credit. Also read the fine print, including the method of calculation. Some methods of calculation prove more expensive at the same interest rate. Remember, your rebate credit card is a tool to use your money wisely. By first choosing the correct tool and then using it well, you can save hundreds and sometimes thousands of dollars in credit card rebates.

For more information on credit card rebates, Robert Alan recommends that you visit CreditCardAssist.com

Credit cards are an indispensible part of our financial life. We are using them increasingly for our financial transaction. Gone are the days when there would be strenuous visits to banks and running around banking officials to get a credit card. Now the whole process is available online and is very hassle free. Be it Discover, Chase, American express or Advanta all the major players have their credit card websites and offer online application facilities.
Getting a credit card online is very easy even for the newbie. If you are unaware of the process these 5 simple steps will help you obtain the desired credit card of your choice entirely online and without hassles. So let?s start.

Step 1: Search for the term credit card
Open any search engine preferably google and type in the term credit cards or the type of credit card you prefer. Then press enter. You will soon have a list of hundreds of possible credit cards companies that you may wish to use.

Step 2: Find a credit card comparison site
Pick an online website that offers a comparison chart for you to choose from. You can then start comparing the different credit cards online.

Step 3: Choose your comparison criteria
On the credit card comparison form, choose the parameters according to your needs and then submit the form. The credit card comparison site uses a database which has the latest credit card offers classified according to various criteria. The form you submit generates a query and matches results from database.

Step 4: Choose your card
The comparison site will show you the best matching results from its database choose the one that suits you, and click on the apply link for the credit card.

Step 5: Fill up the form
Clicking the link will take you to the credit card issuer?s page. Here you will have to fill up a form which will ask about your personal and financial details. Before filling up the form make sure that you understand the finer points and read the terms and conditions mentioned with the credit card offer.

That?s it…was it hard? These simple steps will help you in applying online for a credit card.

Mitchell Wright offers expert advice and super saver tips regarding all aspects concerning Credit Cards. Find more advice and great tips to save more on American Express Credit Cards.

Would you like to accept credit card small business payments at your company or Website? More and more entrepreneurs are taking this route on the road to riches as they learn how to grow their business. Entering the technology age is neither difficult nor expensive, but you have to learn how to navigate the system by following a series of key steps that can put you ahead of the competition.

Becoming eligible to accept credit card small business dealings is as simple as opening a merchant services account. You just have to find a financial broker, often a bank or credit union, who will underwrite your account to make it secure. Many financial institutions are searching for small business owners that they can help to get started in this lucrative process. Do an Internet search to find the top few with reputable names or backgrounds. Compare their prices, options, and terms before choosing the one that seems best able to serve your company?s interests and help you grow. Then apply online or by telephone to get the ball rolling. In a very short time you could be accepting credit payments while building undreamed of profitability.

After opening a merchant account, you will need to purchase or lease the right equipment that will let you accept credit card small business payments at your company or Internet site. For a physical location, you can buy a credit card processor or perhaps an e-check or debit processor for a few hundred dollars. Of course, you will need to consider set-up fees, maintenance fees, and any supplies (like electricity or printing paper) to support this equipment. Working with your underwriter, the fees may cost just 25 cents per transaction or 2% overall. It pays to shop for the best deal that works within your company budget. A wireless credit processor works great for employees who deliver goods to residential or business customers. You also might want to invest in a pager or a digital system.

Experts believe the most lucrative step of a merchant account is to set up a company Website to accept credit card small business transactions. A well-designed site that offers clear-cut information about your company and its services will keep customers coming back and through word of mouth or search engines, bring others along as well. Find out how to register a domain name and find a host site. Then your online ?store? will be open to customers all over the world 24/7, ensuring that sales and profits trickle in on a regular basis. It may take some time to get the word out via the Internet, but in a matter of months with a little bit of promotion you could see significant returns on your investment.

Don?t let this excellent opportunity pass you buy. Find out more about how you can open a merchant services account, start accepting credit payments, and perhaps set up a business Website to make your presence known throughout cyberspace. Your income may multiply when you learn how to accept credit card small business payments.

Shane Penrod is the founder of http://www.merchant-account-quotes.com Specializing in allowing merchants the ability to shop and compare multiple quotes from national merchant account providers. For free quotes on merchant account rates and fees, please go to http://www.merchant-account-quotes.com.