Secured Credit Card

A bank secured credit card is where you pay a deposit into the card as collateral. Normally, anyone who has bad credit or no credit history will be given this option and not a regular unsecured option. For example, if you pay $500 into the card, it means you can spend up to $500, but the deposit will not be used to pay the amount back. The banks usually need a minimum of $300 to open such a credit card.

Many people exist without having to use credit cards at all in their lives. Sometimes a person needs a one to book a hotel, or rent a car, even if you are going to pay cash. The problem comes in when you don’t have a credit history, or your credit history is bad.

The benefits of this type of card will be felt for someone who thus has bad credit, or no credit history, allowing that person to improve their credit rating or to begin their credit history, for a person who has a good FICO score, this type of card should not even be an option!

If you can only be approved for this type of card, make sure it has a conversion option attached to it. This will allow you to convert to a regular unsecured card once your FICO score has improved, or has been established within a number of months or possibly up to a year. If you use your card responsibly and pay off your debt regularly and on time, your credit limit may be increased. Rather use this card to make small purchases that can be paid off either fully or quickly to improve your chances of attaining an unsecured card.

The problems with this type of card are as follows:

o There is generally an annual card fee

o Expensive application and processing fees

o The interest rate is high (roughly 22%)

o You only earn 2 to 3% on money you deposit into your account

o Interest starts from the day you use your card (no grace period)

It is always good to look at a number of different secured credit card options. You can find the best option for you in this way. Make sure to read the terms and conditions of each card you look at. Ask the card company if they report to the 3 major credit bureaus, as this will help your FICO score in the future. Often the smaller companies don’t report to the 3 major bureaus, but the bigger banks definitely do, making them a better choice of company to work through.

Always do your homework on the different secured credit card options. Some of the offers can really take you for a ride. Go for a card that will have the least fees to pay, otherwise you may be paying money back without having made your first purchase. Remember to read the terms and conditions and be responsible with your money!

Related to : www.walmartcreditcard.com www.NetFirstPlatinum.com

When used correctly, secured credit cards can be very useful tools in establishing creditworthiness. You can use them to prove your ability to make timely payments, and ultimately get the benefits of being credit worthy. Here are 5 frequently asked questions:

What is a secured credit card? A secured card is a regular credit card, except that you have to give a “deposit” in order to be approved to make purchases. The amount of your deposit is your credit limit. Up to that limit you can make store purchases, online purchases, rent cars, book hotels, or do anything else that a credit card will allow you to do. You are also assigned an interest rate. When you make purchases, your minimum monthly payments will be based on that interest rate. You must make your monthly payments on time. If you do not make your payments, your card will be denied from making any other purchases. Your payment history may be reported to the credit bureaus, so make sure you establish a good payment record.

What will my credit limit be, and what fees will I have to pay? The deposit that you make will be kept in a savings account by the secured card issuer. Whatever amount you put into this account will determine your credit limit. Most times, your limit will be equal to your deposit, but over time if you make establish a good payment history, your limit may be increased without the need for another deposit. There are also other fees that you may be responsible for such as application fees, annual fees, and processing fees. All secured card issuers do not charge all fees at all times so be sure to read the fine print of your application before you apply.

Are there any benefits to my credit score? If you have never had a credit card, or have been denied one, a good first step in establishing creditworthiness with 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.’ And since it is recognized that you are taking that extra step, many secured card issuers will report your monthly payments to the credit bureaus. This could be a good thing or a bad thing depending on how you make your payments. If you make sure to make all your payments on time, there could be great benefits to your credit score.

Can my credit limit be extended beyond my deposit amount? Most times, in the beginning your limit will be equal to your deposit amount. However, over time and with an excellent repayment history, your limit may be extended beyond your deposit amount. The length of excellent repayment history and the credit limit increase amount will depend on your card issuer.

Can I use my secured card to rent a car or book a hotel? Yes. Secured cards are very useful for transactions like these that require a credit card. Many hotels and car rental companies will not accept a debit or check card to make reservations, even if you intend to pay cash in full upon the completion of your trip or stay. Your secured card can be very handy as you are able to complete these kinds of transactions with it.

The formula for using secured credit cards as useful tools in building or rebuilding your credit is pretty basic. If you use your card in moderation, carry a balance less than your limit, make consecutive timely payments, and your card issuer reports your payment history to the credit bureaus, you can take advantage of acquiring a secured credit card. Building a good credit history when you have no credit now will put you on your way to showing creditworthiness in the future. For those that have bad credit as a result of poor payment habits in the past, secured cards help you demonstrate improved habits. It can be a win, win situation – if you make it so.

-Ken S.

© 2009

Related to : www.wachoviabank.com www.wellsfargobank.com www.smithbarney.com

The surge in applications for instant approval business credit cards has caused a dramatic increase in credit card usage among small business owners according to the 2009 Small Business Credit Card Survey.

Since April, the top TARP recipients cut their small business loan balances by $8 billion dollars. While traditional loans have dried up and lines of credit get cut, banks have decided to funnel more of their small business lending with business credit cards.

Even though some leading credit card companies like Advanta left the card business entirely it’s refreshing to see that banks like J.P. Morgan Chase card services launched four more cards specifically targeted at small-business owners. As these instant approval credit card offers enter the market to compete for your business it’s important for you to consider all the business credit card options and compare the costs to the benefits before you apply.

Here are just a few to take into consideration:

Cash Back – Many cards now offer cash back rewards. For example Chase’s new InkSM Cash has unlimited cash back and accelerated earnings on its card. This is a great perk because it rewards you for spending on everyday business purchases that you do already. Make sure you understand what the card’s limitations are and read the fine print before you apply.
Frequent Flyer Mileage – Getting frequent flyer or airline miles cards is a very popular perk for business travelers. Once you accumulate enough points you can redeem them for airline discounts or free nights at participating hotels. Make sure you know if there are any limitations prior to applying.
No Annual Fees – Many cards now waive the annual fees. Keep in mind that your credit score needs to be strong to get these types of cards. However, if your business pays its balance in full every month then this is definitely the way to go if you can. In effect, if you pay your balances, you get the card for free.
Zero Percent Balance Transfers – This can help you reduce your high interest debt. Be sure to never miss a payment or you’ll immediately lose your interest free terms and have to pay the full rate.
Payment Reporting – Traditionally, the majority of the easy approval business credit cards in the marketplace report your payment history and revolving debt to your personal credit files and not to the business bureaus.

However, some companies have started to catch on to the new world of business cards like CSI MasterCard, JP Morgan Chase and American Express. They understand that it should be used for business purchases and any debt incurred should only report to business credit reports not your personal one. When you apply for instant approval credit card offers they check your personal credit report, but your payment history and debt report to the business bureaus. This is what every small business owner like you should demand from a business credit card.

One important catch is if your accounts become delinquent then these companies will report the delinquency to your consumer credit bureaus as well.

Finally, keeping liability strictly tied to your business can be accomplished with no personal guarantee business credit cards. There are less than forty of these types of cards available and you will need to have a strong business file in order to qualify.

With the growth in business bureaus, data suppliers, and business files across the country more and more companies will have to supply an ever growing demand of new cards that will have to measure up to the needs of today’s small business owner.

I encourage you to choose cards that will best serve the needs of your business while supporting the growth of your business credit file and limiting personal liability.

Related to : www.myeasypayment.com

Like most banks and financial institutions around the world, Barclays offers a myriad of financial services to its clients. Barclays services are not at all limited. It is the second biggest bank in the UK and is one of biggest financial institutions in the world. When it comes to financial institutions, it is one of the best, ranking high in the 2010 Forbes Global 2000 list. It offers institutional advice for those interested in investing the market. It offers lending services to those in need of more cash. And of course, it helps people keep and grow savings through their personal banking services. Barclays is also big in the card scene. They offer clients many types of credit cards. You may apply for one depending on your financial status. Entry-level applicants can try out for a Classic card, while more credit-experienced people can apply for the Platinum services. One special type of Barclay card is called the GoldFish credit card.

Around 2 million people in market today hold a GoldFish credit card. It is a special Barclay card especially released for individuals without credit experience. It offers very low interest rates, no annual fee and online services. The GoldFish card is perfect for young people who want to have their own card. The GoldFish credit card offers a lot of benefits on top of the regular benefits offered with every Barclay card. Although they were reduced a few years ago, GoldFish benefits are still substantial; most of the benefits you get from it, you cannot get from other entry-level cards. The average APR for the GoldFish card is 17.9%. This rate can vary depending on your application’s assessment.

The GoldFish credit card is perfect for any credit starter-upper. With it, risk is minimal, but at the same time, you still get benefits. Barclays, of course, offers great services to its customers. However, a GoldFish cardholder shouldn’t expect to get the same level of service as a Platinum cardholder. Of course, once you’re ready, transitioning to a higher level card will be easy.

Related to : www.myhomedepotaccount.com

I am delighted to say that I am a credit card deadbeat! In fact, some of you might already be credit card deadbeats too, if so, I commend you for your excellent work! Now, as for those who don’t know what a credit card deadbeat is, before you start thinking I have a screw loose, you may want to continue reading!

When I say that I am a credit card deadbeat, I don’t mean that I avoid my credit card bills. To the contrary, a credit card deadbeat is the insider term used by credit card company executives and refers to all of the credit card users who pay off their bill each month promptly; in doing so, such customers pay no interest and prevent the creditor from making any profit! That’s me! I love being a credit card deadbeat!

The alternative to being a credit card deadbeat is what credit card executives call a revolver. A revolver is a credit card user that constantly carries a balance and is charged regular, monthly interest on their charges. Credit card companies love revolvers because they, in essence, increase the bottom line for the credit card company and make them a nice profit. Further, from an insider perspective, the best customers not only carry a balance, but also make their payments late, triggering extra fees and a higher interest rate.

Okay, so I’ve been a credit card deadbeat for awhile now, but last year I went even further in improved my deadbeat ways. Not only did I hang onto my hard earned cash by refusing to line the wallets of the credit card companies, but I also happily lined my own wallet with their money, to the tune of $1,402. Yes, that’s right, they paid me $1,402 to use their cards; continue reading to find out how!

Cash Back Credit Card

First, I applied online for a Cash Back Credit Card and I was instantly approved. My new cash back credit card arrived to my house the following week ready for me to use. This card offered me 0% APR for 12 months and carried no annual fee; With it, I made all of my gas purchases, as well as grocery and drugstore purchases and earned 5% back cash back on the gas purchases and 1% back on all other purchases. I have a family of four and the gas purchases included gas for my spouse’s car as well. My average monthly purchases and cash back earnings were as follows:

Monthly Gas Purchases $325 x .05 = $16.25

Monthly Grocery Bill $1,200 x .01 =$12.00

Monthly Drugstore Purchases $160 x .01 = 1.60

Total Cash Back Earnings From Credit Card $ 29.85 x 12 = $358.20

Airline Rewards Credit Card

I also applied for an airline rewards credit card and again was instantly approved online. Like the cash back credit card, my new airline rewards credit card arrived the following week, came with a 0% introductory APR for 12 months and had no annual fee. This credit card earns 1 frequent flyer mile for every $1 charged.

I charged many of my miscellaneous expenses, including major purchases and business expenses, on my new Airline Rewards Credit Card. As a result, the qualified expenses came to an average of $2,250 monthly or $27,000 for the year, earning 27,000 frequent flyer miles, more than enough for an airline ticket to Hawaii: a $500 value!

0% Introductory APR for 12 Months

Now here’s the kicker. Since both credit cards came with a 0% introductory APR for 12 months, I paid only the minimum payments on each card and placed the money for my purchases into a savings account earning 2.5% (rates have gone up since). Using averages for simplicity, I made 12 monthly deposits of $3,935 into a savings account earning 2.5% interest compounded monthly. By the end of the year, I earned $544 in interest!

My Total Credit Card Earnings for the Year

So here is my total earnings from the cash back credit card, airline rewards card, and interest earned.

Cash Back 12 x 29.85 = $358

Free Airline Ticket $500

Savings Account Interest $544

Total Earned $1,402

Just to make sure I maintain my deadbeat ways, now that the 0% introductory rate has expired, I’ve paid off my balance from the money I deposited into my savings account during the year. To be a credit card deadbeat you need persistence, determination, and discipline. I did it, and so can you!

Related to : www.myeasypayment.com www.mycokerewards.com