Credit Cards Review

Applying for a Credit Card Online

Applying for a credit card online is quick, easy, and safe. With todays technology you can obtain instant credit approval by applying for your new credit card via the Internet. No more waiting for snail mail credit card applications to arrive on your door step. No more filling out long and lengthy credit applications and no more stamps! Applying for a credit card through the internet allows you to research several different credit card companies and make your own decision about which credit card is right for you. No longer do you have to bother with tons of paperwork and excrutiating long wait times. When applying for a credit card over the internet, your application is received immediately and your credit approval begins! It is not uncommon for credit seekers to naturally be concerned about the safety and security of online websites and worry that they might be handing their personal information over to the wrong person. With todays security technology this problem becomes less and less of an issue. Make sure that the website that you are applying on is well known and a secure websites. Most online websites that require personal information will have certain features that notify web browsers of their legitimacy. Also make sure that your home computer is armed with the latest and most up-to-date spyware and and anti-virus protections. Online credit applications, these days, are just as safe if not safer than mailing your personal information through regular snail-mail where… your application will be passed amongst an uncountable number of hands. On-line credit card approval is definitely a convenience because it is fast and easy. However, it’s also very important to remember to carefully review all of the terms and conditions of the credit offer prior to applying for and accepting it. Reading the fine print can save you money and hassle!

Every credit card regardless of their main lending bank has additional fees that are added onto every dollar amount that a consumer borrows. This is, indeed, how the banks make their money by lending you money to purchase items on credit. So here are some additional fees to keep a watchful eye out for.

One of the first things to look for when applying for a credit card is does the card have an annual credit card fee? Annual credit card fees are a minimal fee that the lending bank will charge the costumer to even open to charge account. Not every credit card charges an annual fee and if you have good credit as opposed to poor credit, it is highly likely that you can easily find a credit card right for you that does not charge this annual fee.

A second fee that one will find on their bill is a fee called a cash advance fee. This is a fee that is typically charged to cards when a borrower takes borrowed cash on a credit card. These charges may be a flat fee or they might be a % of the cash advance.

If one wishes to transfer a balance from one credit card to another then a Balance-transfer feen is charged. Many people will move a balance from one credit card to another credit card if a balance remains on a credit card that has a higher interest rate than another. Say you owed a certain balance on a card that you acquired as a college student under a college rewards credit card that had a higher interest rate than a card you just opened today that has a much lower APR. The lender that you are tranferring from will then charge an additonal fee that will make up for a certain % of the money they might be losing in finance charges due to the balance transfer.

Late-payment fees are typically applied if you make a payment late on your cards.

Every creditor hates bounced checks and be sure that if a payment check is returned or bounces your account will acquire additional charges.

Over-the-credit-limit fees are charged if you attempt to borrow more money on your credit card than allowed.

An additional charge, in some cases, will be applied to your card if you request a limit increase.

Every credit card application is required by LAW to disclose any and all “additional” fees. That is why it is important for you to read the ENTIRE application and all of the fine print to make sure that you do not overlook something that might cost you additional money in the long run. There is a credit card out there for everyone and that is why it is important to not jump at the first offer that might come your way.

The Student Credit Card

If you have been thinking that you can’t get a credit card in your name before you complete your education and get into job, you are wrong. There is a breed of credit cards which is available especially for students. These are called Student Credit Cards.

Student credit cards are the same as other credit cards except for the fact that they have additional restrictions and higher charges. Most of the student credit card applications will need the parent to co-sign it as a guarantee. Moreover, the credit limit on student cards is really low ($500-1000 per month). This is based on the typical spending needs of a student and also to cover the credit card company’s risk in issuing a credit card to someone who has never used it before. Also, since most of the students applying for a credit card have no history (or credit rating), this being their first credit card, the APR on student credit cards is generally higher than that on the other credit cards. This is again from the perspective of reducing the risk associated with issuing a credit card to someone who’s paying capabilities and habits are not clear yet.

Student credit cards are a great opportunity for students for developing good spending habits and a responsible behavior towards financial transactions early in their lives. In fact, things like lower credit limit act as good controllers and besides being a risk mitigation mechanism for the financial institution it is also favorable for students. The student credit cards act as good training ground for students by helping them in learning more about credit cards so that they have the knowledge and capability to select a good credit card later on in their lives.

All credit card companies also include instructions about protection against fraud, the fee structures, reporting credit card loss etc at the time of credit card delivery. It’s important that the student goes through all of these instructions so as to increase his knowledge of credit cards and also to be able to take advantage of the benefits associated with them.

As with any credit card, student credit card can also lead one into a debt trap. Considering that this is your first credit card as a student, there is a very easy way to ensure that you don’t get into debt trap which many are fighting today. Just refrain from getting another credit card, come what may. One credit card is more than enough for a student. Also, do not overspend on your credit card. Try to remain within 60% of your credit card limit. Remember that this is a learning ground for you and good habits learnt now will go a long way in helping you in future.

A very important benefit from a student credit card is the fact that it can help you in building a credit rating. The credit rating is basically the credibility earned by you when you use your credit card over a period of time. You get good rating if you have been paying your dues in time and if you have not been overspending. This rating is built at independent credit bureaus and is used by banks and financial institutions for determining your credibility before they actually sanction a loan or a mortgage or a credit card that you have applied for.

So, not only do the student credit cards allow you enjoy the benefits of the credit cards early in your life but also help develop spending habits and credit ratings for future.

Most Americans over the age of 25 at least have one credit card to their names if not more. The average American household has an average of 14 credit cards in their household. Because of popular credit card horror stories, alot of people believe that having credit cards is a bad thing but in reality credit can be beneficial for a number of reasons. Credit is a big resource for most consumers and can allow you to cover cover expected and even unexpected expenses in a simple and easy way.

The secret to making credit your friend is to maintain good credit history which can easily be done. Simply make your payments on time and do not get in over your head when purchasing items on your cards. If you know that you cant afford a significant purchase then know that you also cant afford to pay off the money borrowed on a credit card for that very same purchase.

Maintaining excellent credit can aid you in future investments for you and your family down the road. Your credit will reflect and either aid you or hinder you from future things such as purchasing cars, boats, and even home mortgages.

Some of the issues that most credit grantors take into consideration before approving a credit application are:

Income and savings which will reflect your ability to pay and how much to allot for your line of credit.
The willingness to borrow money from their bank and they will then review your credit report in order to see how you have fullfilled your past credit obligations.

Credit card companies use a mix of several aspects to determine if you qualify for credit or not. They will use your credit score or your FICO and will then factor in how long you have been at your present job, the amount of pay you get montly, how long you have resided in your current home, and how much other debt you currently have out in your name.

It is crucial for you to maintain good credit because then future lenders will be more apt to issue you credit for larger purchases. If you have good credit you can then obtain car loans and home mortgages. On the other hand if you do not have good credit or any credit theres a good chance that you will be turned down for large scale purchases because lenders will have nothing to go on and can not judge your credit accordingly or they will set you up with the loans you seek but at a much higher interest rate.

With all of the new advancements in technology the credit card industry is making changes towards stopping credit card fraud.

How are they doing this?

One such innovative way is with the new “smart” credit card. This smart card uses aspects that deal with cryptography. The average American citizen might not be too familiar with cryptology but it is the use of secret codes. They not only use authentication but a smart card has a microprocessor built into the actual credit card itself.

How is cryptology making advancements in credit card protection?

It is essential to the functioning of these cards in several ways:

With the use of cryptology the credit card user must prove their identity to the card each time a transaction is made almost in the same means an ATM pin number is used.

With the smartcard the card holder and the card itself must engage is executing a sequence of encrypted sign/countersign-like exchanges These cryptic messages are used to make sure that each side of the transaction is dealing with a legitimate counterpart.

Then the transaction itself takes place. Not even the card holder is privy to the information that is transcribed. This prevents anyone from obtaining the cardholders personal information. This allows for no later impersonating from any party involved in the transaction. Not even from the establishment where the transaction takes place.

The only information that the card holder must surrender in order to begin the transaction is entering their PIN.

Being a credit card holder can have numerous advantages and disadvantages. It depends highly on each individual card holder as to whether or not credit cards are friend or foe.

Advantages:
Credit cards eliminate having to carry large amounts of cash on hand.
In times of need such as sudden illness, unemployment, or family deaths you can borrow money from a creditor.
Credit cards allow for larger purchases to become a reality for those that are not the best at saving their money.
In todays world credit cards are an end to a means. Nowdays due to accident, vandals, and irresponsible people and crime most car rental company or hotel chains will not allow you to even book a reservation without a credit card.
Credit cards are accepted worldwide.
Credit card bills summarize all of your monthy purchases so it is easier to maintain records of where all your money is going. Where with cash this is not the case.

Disadvantages:

Finance charges. If you dont pay off your monthly balance every month added fees are tacked on.
Most consumers will spend twice as much money on a purchase when they know that the money is not coming directly from their pockets at that very moment.
Credit card fraud. Criminals can rack of thousands of dollars in your name on credit cards where with cash they can not.
Psychologically, people can find themselves caught in the buy-now, pay-later cycle.
There’s the tendency to spend more money when charging items rather than just paying cash.

Here are some simple and easy to follow rules for limiting the chances of credit card fraud happening to you.

As soon as you receive your new credit card in the mail SIGN IT. And also add SEE ID to the strip with your signature.

When taking money out of an ATM or using your debit card for purchases enter your PIN in such a way that no one can see it and so noone can chart the strokes of your keys.

NEVER EVER walk away from an ATM with your money but without your receipt.

Never discard your credit card statments without shredding first. This is another reason why on-line bill pay is great. No paper trail.

Never tell someone your credit card information over the phone unless you are the one making the call. If it is an incoming call DO NOT disclose any personal information.

Even if you initiated a call in which you disclosed your information be careful of common scams. One such scam is when after you hang up with your phone call someone immediately calls you “back” claiming to be from the merchant and says something along the lines of there being a problem with your credit card number and asks you to repeat the number. Hang up. And call the merchant back again to establish if this claim is legitimate or not.

Never leave your credit card behind. Stay focused when making purchases and never take your eyes off of your card. Doing too many things at once or being distracted is a good way to end up leaving behind a crucial bit of personal information that could cost you thousands.

Always know how many cards you have, their card numbers and how much of a balance you owe.

Always review your monthly statements in order to make sure that no surprise charges occur and that you have actually made all of the charges that you are being billed for. If you do not recognize even one charge- call your credit card company immediately for this could be the start of many more to come!

Some fees that one might find on their credit cards regardless of which creditor they are working with are:

Annual credit card fees (sometimes billed monthly). Charges for simply owning the card. Many credit card companies will wave this feature either depending on the card themselves or the borrowers credit. The better credit the more likely you are to not have an annual fee.

Cash advance fees are typically charges to cards when taking out cash on the credit card. These charges may be a flat fee or they might be a % of the cash advance.

Balance-transfer fees are charged when you transfer a balance from another credit card to pay off the other card.

Late-payment fees are typically applied if you make a payment late on your cards.

Over-the-credit-limit fees are charged if you go over your credit limit and attempt to borrow more money than allowed on the card.

Credit-limit-increase fees are attached if you ask to increase your limit.

Set-up fees are applied, sometimes, when a new credit card account is opened.

Return-item fees are charged if you pay your bill by check and you check is returned or bounces.

Some other fees that are sometimes applied are- fees that might be charged if you pay bill by phone or if they have to report you to the credit bureaus, if they need to spend extensive time reviewing your account for whatever reason, or if they provide you with other forms of customer service.

However if one shops around enough for a credit card they are likely to find the card right for them that waves many of these fees, especially the added additional fees from above. Most card companies will be glad to assist you in whatever forms of customer service you might need without tacking on added charges.