Credit Card Lowdown

Is Paying By Credit Cards Online Safe?

Online shopping has come as a relief for many who want to avoid going out to malls or shops for shopping. They can simply log on to the specific sites and can buy things at a click of their mouse. And they get their stuff door delivered. But the question to worry about is; how safe is it to use credit cards online? Well, with todays secure technology it is pretty safe to use credit cards online. The thumb rule is to see an icon at the left hand corner of the screen when you enter credit card information. This particular icon signifies that you are on a secure site. For those of you who are still not convinced with it can open a Paypal account. By doing this you enter your credit card information once only and you get a Paypal account number. Now while purchasing you have to enter your Paypal account number and not the credit card information. Credit-cards-info.com Reports:

You can rest assured that great strides have been made to ensure an online shopper’s security to that it is safer than ever to pay with a credit card for your purchases.

Read More: How safe it is to pay with credit card

Secured Vs Unsecured Credit Cards

Secured credit cards are meant for those who are looking for building their credit history or looking to rebuild their credit history. Due to periodic reporting to the credit bureau, secured cards can help in reestablishing a creditor’s confidence in a borrower. You can get secured credit cards with no fees. Unlike your secured cards, unsecured cards do not require a security deposit amount to be put down on the card upfront. Unsecured cards are famous because of the flexibility and freedom they offer. Getting an unsecured card is an indication that you have a good credit history and a very good credit rating. Credit-cards-info.com Reports:

The difference between secured and unsecured credit cards is really the security deposit required by one and not the other – especially now with the competitive rates and privileges that are offered by both types of card.

Read More: Differences between secured and unsecured credit cards

Geographical Restrictions of a Credit Card

Having a credit card is a real comfort. Especially for those of you, who travel a lot, owning a credit card is a great relief from carrying too much of cash. When you are looking for a versatile and widely accepted card, the best is to go for cards which have no geographical restriction. If you are looking for such a card then go for a Visa or a Master card. These cards are generally accepted every where. Most of the cards are with no geographical restrictions. The ones with geographical restrictions are the retail and the gas credit card. Credit-cards-info.com Reports:

Some other relatively big credit cards such as the Discover Card are still not as widely accepted as the major three so there it also has some has definite geographical restrictions.

Read More: Geographical restrictions of owning a credit card

Precautions to be Taken When a Credit Card is Lost

Losing your wallet can be the worst thing to happen, as there are high chances of someone else using your cards and you becoming responsible for those bills. To avoid a situation like this, the first thing you need to do is to call and inform all your credit card companies. The companies will freeze your credit cards and put an alert and will also warn lenders to inform the company if some one is trying to use the card. You should inform the companies with in 24 hours from the time of losing the cards. Most credit card companies offer fraud protection, which limits the customer liability to 50 dollars. But credit companies admit that they rarely enforce the rule. Credit-cards-info.com Reports:

Once you have reported the stolen or lost credit card the card companies will cancel that old account and issue you another card. Usually this process is very fast and you they can get a replacement credit card to you within the week.

Read More: What to do when you have lost your credit card

How to Build a Good Credit History

To afford most of life’s biggest dreams like owning a house or a car, you need to have a good credit history. The reason is, most people do not have full cash for such expensive dreams and they need loan or mortgage to do so. Now the big question is how to build the credit history? Some times it is discouraging to see that creditors do not give loan to people with no credit history. As a student, taking a student credit card is a good way to start. One of the other options to build credit history is to apply for a gas or retail credit card. By doing this, you get your name on the bills and paying them regularly will help building positive credit history. For people who have good equity built up with their bank can go for small loan with savings as collateral. Start building your credit history as there is no better time than now. All this will take some time but it is a must for your future financial requirements.  Credit-cards-info.com Reports:

Unless you are assured of inheriting your fortune, chances are that at some point in your life you will need to borrow money and when that day comes you will need to have a solid credit history to make creditors feel safe about loaning you the money.

Read More: Building your credit history

Owning a Credit Card - General Requirements

Earlier, to get qualified for a card you had to have an established job, a steady income and a good credit rating. But today the eligibility criterion has been relaxed a lot; even the teenagers can own a credit card. A good credit rating is still taken in consideration for qualifying for a credit card.  Each financial institution has its own admissibility requirements; but in general all companies have the same basic requirements or criteria. Creditors always take calculated risk. They tend to see if you have a steady income, if you can meet your monthly payments, if you have assets to cover your expenses along with a good credit history. They also tend to see if you have some existing debt load and for how long. Credit-cards-info.com Reports:

Although creditors will look at your past financial history, applying to own a credit card is a lot easier than applying for other loans such as a mortgage where the eligibility criteria is much more severe and stringent. With some careful planning and good money-management habits you should not have any trouble applying for and owning credit cards.

Read More: General requirement of owning a credit card

How to Prevent Credit Card Frauds

Credit Cards have become a very important part of life. Proper usage of credit cards will help you by building good credit rating which is very much required in applying for loans etc. Of late, credit card problems are booming because of scams and credit card thefts. All the frauds, mostly involve lost or stolen cards. These frauds can be prevented by being a little cautious. Some of the ways to guard against credit card frauds are, do not carry more than two cards at a time. You should keep the credit cards tool free number always with you. Never ever leave your purse unattended at a public place. Always make sure that you have got the card back after doing the purchases. Always sign at the back of the card and do not leave the card open at obvious places. Never do the mistake of lending the card to somebody. If by chance you do not receive your new or reissued card by due date, immediately inform the credit card company. While shopping online, make sure you are using a secure website. Once you have closed the account, cut your card into smaller pieces. Credit-cards-info.com Reports:

Shred all credit card receipts and pre-approved credit card offers before throwing them away and keep your billing statements in a secure place.

Read More: Ways to prevent credit card frauds

Credit Card History

In the 1800’s the earliest recorded history of credit cards was found. The seller wanted a way through which he can keep track of customer purchases given on credit. Instead of making note of their personal details every time, they were given tokens with numbers on it. The storekeeper had to just make note of the token number, every time a buyer purchases anything from the store. For a long time, nothing new happened on the credit card front. In 1951, the Franklin National Bank thought of doing some thing different by issuing credit cards to their customers. It worked on revolving credit account. The customer could borrow money, repay and then borrow it without getting a loan approval again and again. Seeing this, a lot of other banks started following and started offering revolving lines of credit to customers. Next was the launch of credit cards to make purchases at local merchants followed by moving out of the locality. That’s when the credit cards Visa and Master card was created. Credit-cards-info.com Reports:

Needless to say, that the new credit card system was a great success and took firm hold. Today credit cards are a necessity for being able to function. Without a credit history people will have a hard time getting loans from banks, making hotel reservations, renting cars or buying airline tickets. Credit cards have come a long way from being a local commodity to a global entity.

Read More: History of Credit Cards

The Credit Card Rate Trap Offer

The living standard has gone up with more and more people using the power of credit cards. It is very easy to fall in to a trap of credit card issuers with their very attractive and tempting offers. It looks so easy to avail the cash offer but you regret when you fall into huge debt because of it. It is a must for you to understand the credit card offers properly before taking it. When the offer is made, make sure you are not falling into a trap. They may lure you with no annual fees, low rate and other offers. But before taking all this, understand the full terms and conditions and make sure the company is certified. Ensure that your card is a secured card.  Creditlovers.com Reports:    

Many issuers begin credit card offers, by giving you a card with no annual fee. But the mistake any card buyer would commit is by not understanding the other charges the company might impose on the usage of the card.

Read More: Accepting The Right Credit Card Offer

How To Apply For a Student, Business and Cash Back Credit Cards

There are various special credit cards available which you can apply like, student, business and cash back credit cards online. These cards come with some extra features if compared to normal credit cards. You can apply for Student credit card online. This card caters to the need of students. You, as a student can apply for both secured and unsecured credit card. Like other credit cards, the amount of credit depends on your credit rating. Compare the various aspects like annual fees, processing fees, late fees, rate etc before finalizing on any card.  If you have small business establishments, you can avail for small business credit cards for major companies. You can fill the application online. Select the one which offers, the low interest rate and best of rewards. If your credit rating is not so good, you can get a secured business credit card. If you want more perks, rewards etc you can apply for Cash back credit card online. All the major companies provide you with such a card.  Creditlovers.com Reports:    

With cashback credit cards you can earn rewards from 1% of your purchase to up to 5% in some cases. Always check for the annual percentage rate, annual fees, etc. before submitting an application for cashback credit cards.

Read More: Applications for Student, Business, and CashBack Credit Cards

Credit Card Terms

Credit card issuing companies use various jargons which, if not understood properly can put you in confusion. The commonly used jargons are, Average Daily Balance, it is calculated by adding each day’s balance and dividing the total by total numbers of days in the billing cycle. This is multiplied by the credit cards monthly periodic rate. This method is used to calculate your payment due. The next one is APR, annual percentage rate which is the interest which includes fees and cost paid to get the loan. Balance transfer is the term commonly used. It means the act of transferring unpaid credit card debt from one issuer to another credit card issuer.  Cash advance fees, is nothing but fee charged for obtaining cash through credit card. Floor is the minimum rate on a line of credit after the introductory rate period. Grace period is the interest free time between the transaction and the billing date. Minimum payment is the minimum amount which you need to pay for the account to avoid going into default. There is a fee charged for going over the credit card limit, which is known as over the limit fee. Variable interest rate is the % you pay for using the money, the rate keeps on changing depending on the other interest rates. Creditlovers.com Reports:   

The card holder agreement is the written statement that displays the terms and conditions of the credit card account. This agreement is required by the Federal Reserve regulations. By law, the card holder agreement must include the Annual Percentage Rate (APR), annual fee if applicable, the monthly minimum payment formula, and the customers rights when disputing billing matters.

Read More: 15 Credit card terms you should know

Use your Credit Card Smartly

Be it a holiday, shopping, party or anything else, you will be using a Visa, a Master card, American Express or a Discoverer card. This is the best way to pay, as it is secure and traceable. If the card is stolen, you can cancel it. Your bank will issue a fresh card and cancel the old one. It is the best way to trace your shopping as you can make out where you have spent and on what. While doing all this, you should use your credit card wisely and smartly. You need to see your personal interest as credit card companies are looking to make money. Massachusetts has published a consumer guide, to understand and to select the best credit card. It is very important to know two cycle billing and interest backdating. Try to get the interest rate reduced as much as possible and pay with in time. Study in detail, the annual fee, grace period, interest rate, the credit line etc. before finalizing on a credit card. Study your flyers properly as the terms are subject to change. Creditlovers.com Reports:   

Credit card issuers have two-cycle billing--a means of calculating interest--which results in customers paying two months' worth of interest if they did not pay off the first month's balance in full. Two-cycle billing only occurs when consumers have changed from paying in full to carrying a balance each month.

Read More: Smart Credit Card Use

What is a 0% Credit Card?

As the name suggest, 0% APR credit cards are the ones where 0% interest rate is charged on the outstanding balance. The cards charging low or 0% are the best over a longer period of time. You need to do a comparison and study of various cards and should go for the ones that give low fixed interest rates. Low fixed APR credit cards, levy a fixed low interest rate on the outstanding balance and the rate does not change with financial indices. The companies can change the rate but this needs to be notified 15 days in advance. Mostly all companies give 0% for a limited period. After which they charge a high rate of interest. Take all this into consideration before applying. Not every one qualifies for 0% APR Credit card. You need to have a good credit rating. You need other supporting proofs like proof of residence, employment, identity card, any utility bill etc. Creditlovers.com Reports:   

Most of the 0% APR credit cards also offer 0% balance transfer facility that you should avail and transfer your high interest balances to your 0% APR credit card and save money in interest.

Read More: 0% Percent Credit Cards

How to Get a Low Rate Credit Card?

Using a Low Rate Credit Card will save you lots of money. This is because you save by paying less interest on your balance. Your credit score needs to be very high to get a low rate credit card. You can apply for low rate credit card at anyplace where cards are issued or you can even go to a bank or can even apply online. Finding and applying for a low rate credit card is not a problem, qualifying is. It is a reward for maintaining good credit record. You can increase your credit score to a much higher level because of low rate credit cards. Creditlovers.com Reports:   

You can apply for a low rate credit card online. By going online to apply for a low rate credit card you can shop around and compare all of the different credit cards that are offered. If you go online to apply for a low rate credit card and approved the low rate credit card works the same as a credit card you get from the bank.

Read More: Low Rate Credit Cards

Will a Chase Credit Card Suit You?

Chase Credit Cards are very well recognized in the market. Chase credit card is a very big company and there are people to assist you, if you have any queries. As the name suggests, Chase Credit card is a card given by Chase Bank. It is called so after the name of the financial company issuing the same. Different types of credit cards are offered from Chase credit cards. Some of them are Chase classic, Cash builder, Platinum card for students etc. They have various reward plans for purchases you make. Being a large, well established company, it provides rewards plan, lower interest rate and other benefits which not all credit card companies can provide.  Creditlovers.com Reports: 

If you decide that a chase credit card is the right card for you make sure to make all of your payments on time. If you do this you will establish a good credit score and chase credit card will be able to offer you very low interest rates on your future cards. Having a lower interest rate on your chase credit card will save you a lot of money

Read More: Are Chase Credit Cards Right For You?

Where Do You Get a Credit Card Application?

The application remains the same, no matter which ever credit card you apply to. You need to pass on personal information while applying for a credit card. The information required is, your name, address, phone details, date of birth, your profession, your social security number etc. With all this information, the company gets a credit report and decides on whether to accept or reject your application. You can get your credit card application in many commercial establishments. There are thousands of websites from where you can download application or can apply directly. After doing this, application is sent to the company for approval. If you have applied for a card through mail, it will take a couple of weeks to inform you whether it’s accepted or rejected. If applied online, you are informed with in minutes about the acceptance or rejection. Creditlovers.com Reports: 

Online will get the new credit card to you faster then applying through the mail, but applying through the mail assures you no one is hacking in to your computer and getting your personal information. But then again people do steal mail and trash also to get personal information about you.

Read More: Credit Card Applications

Capital Credit Card

Capital Credit card means huge savings as it can give you the lowest interest rates. There are various kinds of capital cards available like cards for frequent travelers, business purchases etc. You need to look around and if you might find a card customized to your requirements. If by chance you do not qualify for the lower interest rate, once you buy their first card and make regular payments, you will get a lower rate in time to come.  It is worth looking for the best capital credit card as you can have huge savings. If you have a card with low interest rate, it will be easy for you to make your repayments and this will develop your credit and at the same type build your savings. Creditlovers.com Reports:

If you have a low interest rate on your credit card you will save big bucks and build your credit score even higher. This is because by having a lowe interest rate your payments will be lower and it will be easier for you to make all of your payments on time and pay your balances sooner.

Read More: Apply for a Capital Credit Card

Be Careful With Credit Cards

Credit Card Companies target small business owners as these companies know that such a segment is always in need of money either to strut up or for regular running. Never make the mistake of piling up debts on your card and to reach a level of not having the capacity to pay even for minimum payments each month. As per consumer Federation of America, by the year end, banks will mail 3.2 billion offers to potential card customers. Don’t feel happy, the normal invitation says that you have been pre approved for a specified amount of loan at an introductory interest rate. And this interest jumps after couple of months, leaving you in a huge debt crisis. You should take a low interest rate card with the offer of transferring old debts. The moment this rate is going up, switch to another card or you can get an offer from another card and then you can negotiate with your present card holder. Pay your card on time. Even a day’s delay in payment, can cost you a lot. Creditlovers.com Reports:

While a barrage of credit-card offers can drive you deeper into debt, says Detweiler, it can also be used as a tool to reduce card balances systematically so you can get out of debt. It's called "card surfing," and it works along these lines:

Read More: It Pays To Be Careful With Credit Cards

How to Apply for a Credit Card Online?

All you need to apply for a credit card online is internet access. Online credit card applications are very user-friendly. All you need to give is your name, address, phone and social security number. On the basis of this information, credit card companies can approve or reject your application in a short time. If approved, the credit card company will send you the credit card through mail. Online stores also offer credit cards but you may not be allowed to use it any where else. But some stores provide credit cards which can be used any where. Credit card applications are available both online and offline. Online applications are much faster and you can get the acceptance or rejection in a few minutes. But the mail service can take couple of weeks. Creditlovers.com Reports:

The cash back reward program means that with every purchase you will earn cash back toward your balance for that credit card. You may also apply for a travel reward credit card online. A travel reward credit card offers to you points to use for hotels and or flights, or may offer frequent flier miles.

Read More: Apply for a credit card online

Choose the Right Credit Card

Before taking any credit card, we should find out whether that particular card suits our requirement or not. You should make the credit card work for you instead of you running behind piles of debt. Which card suits you best depends on your spending and repayment capacity. If you are using a credit card for day to day expenses like petrol etc and are paying off debts regularly without fail, you should go for zero annual fee and interest free period. Also check whether you want to go for cash back or reward points based card. If you occasionally carry a balance forward, go for a card with low standard rate. If you rarely pay the full outstanding in each month, you should go for introductory purchase rate or ultra low standard rate. If the debt has piled up, go for cards with the option of low interest rates and low balance transfer rates. It is tough to get a credit card if you have no previous history or too many arrears and defaults. You can get a card in such a situation but the interest rate will be decided only after assessing your circumstances. Bytestart.co.uk Reports:

As an example, a person transferring a £2,000 balance from a credit card with a standard APR of 14.9% to a credit card offering 0% for 9 months would reduce their outstanding balance by £630 providing they repaid £70 per month and did not add to their balance. During the nine months they'd also save £202.55 in interest charges, proving that transferring your balance to a 0% credit card really does pay.

Read More: How to chose the right credit card?