30th September 2008
Have you looked at your credit card statement lately? If so, you might have received a nasty shock. Credit limits are falling and interest rates are rising as a result of the credit crunch. If you enjoyed low interest rates before, don’t be surprised if they double in the future.
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Many card holders have protested the changes made to their accounts. Before the credit crisis, card companies were sympathetic to the occasional late payment. They would extend the grace period on purchases or waive late fees and penalty interest.
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Not anymore. Now, card holders who miss a payment by one or two days find themselves choking on 30% interest rates. Pleading calls to card companies are largely unsuccessful; customer service agents apologize, but claim that they are simply unable to waive any fees at this time. That’s because banks and other lenders, scared silly – and justifiably so – by the current economic climate, are tightening their purse strings and their standards. To maintain good relations last year, card holders simply needed to pay in a timely manner and communicate with their lenders when a late payment was unavoidable.
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Now, minor payment infractions are enough to make card companies drop your limit like a hot potato. And you might notice your limit shrinking even if you’ve always paid on time. If your credit cards are almost maxed out, companies will reduce your limit as a precautionary measure. The less you can charge, the less they risk if you default on your debt.
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Credit limits aren’t the only casualty of recent days. Approval for credit is also low. Whereas a credit score of 720 was considered excellent a year ago, lenders now want to see a 740 or higher before they’re comfortable offering a loan with good terms. And if you work in a shaky industry, like home building or mortgage brokering, expect even more hurdles when you’re applying for new credit. Card companies know what you do for a living, and they’ll clamp down on your credit if they think your job could be at risk.
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So what can you do if you need credit? Get serious about timely payments, and keep your card balances low. To keep your accounts from getting closed due to inactivity, use each card at least once every three months. Open new accounts with better lenders, but don’t close your old accounts; doing so decreases your debt to credit ratio and, in turn, your credit score. Finally, ask your bank if they’ll work with you. If you’ve been a good customer, they won’t want you to take your business elsewhere.
<p><br><br>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 href="http://www.creditorweb.com/">credit cards</a> online.
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28th September 2008
There’s a lot of talk about the safety (or lack of safety) when purchasing items with your credit card online – but what about the application process used to get the card in the first place? How safe is it to provide your personal details through an online credit card application?
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Secure e-commerce technology is actually considered safer than mailing your paper application through the United States Postal Service! Think about it for a minute: when you place something into the mail, you probably drop it in your mailbox and carry on with your day. Maybe you drop it in a big blue mailbox on the corner of the busy intersection you walk by on your way to work each morning. How difficult would it be for someone to stick their hand in and pull the envelope out of a home mailbox? Not difficult at all. It would be a little harder to take mail from the public mailboxes, but it’s still possible by an enterprising criminal!
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If your mail makes it into the post office, it is then handled by a number of postal workers. True, there are cameras and laws regarding how the mail is handled – but we know that there are dishonest people in the world and it’s possible that one may be working in your local post office. Slipping a piece of mail into their pocket would not be completely out of the question – and it just might be your credit card application, containing all of your personal data.
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The security used for online credit card applications include:
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<b>Secure Sockets Layer (SSL) Technology:</b> This encrypts the information sent between your computer and the bank’s computer via the internet. So the personal information you type into an online credit card application form is sent in a jumbled mess that the bank computer knows how to unjumble and put back together for human readers to understand. If someone tried to intercept the transmission of your credit card application, they would receive the encrypted, jumbled version.
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<b>What Is Encryption?</b>
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For math-lovers out there, encryption is actually a mathematical process that camoflouges the information to 128-bits. Remember when you were a kid, and you would create secret languages with your friends so no one else could read your notes? You maybe reversed the alphabet, so A would actually be Z and Z would become A…. or you shifted everything over three letters and then wrote your note using your new alphabet. This is elementary level encryption. When a computer encrypts your personal data, it takes each character you enter and transforms it into another character, in any one of 2 to the 128th power ways. The code would take 20,000 years to break using todays’ computers.
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<b>Two Key Algorithms:</b> Additionally, the encryption method uses a two-key algorithm. This means there is a public and private key that have to be used to “unlock” the encrypted data. These keys are required by the computer sending the information (the computer you use to fill out and submit your online credit card application), and the computer receiving the information (the bank’s computer) in order to unscramble and read the 128-bit encrypted personal data of your credit card application. A criminal intercepting an encrypted message not only has the impossible mathematical encryption to deal with; but he or she would also then need to have the public and private keys to “unlock” it.
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It is true that identity theft is a real concern, especially as we’re dealing with more of our personal information being stored online. Your concern should be more regarding non-banking websites that store personal data – since online credit card applications and banking systems use strong security and encryption methods that make them safer than mailing your information through the US Postal Service.<br><br>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 href="http://www.creditorweb.com/">credit cards</a> online.
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14th September 2008
When you make purchases, it’s easy to swipe your credit card for the sake of convenience. But convenience isn’t the only benefit that credit cards offer. Did you know that when you buy goods and services with your credit cards, you’re actually using one of the most secure payment methods available? Let’s take a look at some of the safety benefits of buying with plastic.
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First, credit cards offer fraud protection. If identity thieves came into possession of your credit card number and used it to make fraudulent purchases, you’ll be taken care of. The credit card company will refund the unauthorized charges.
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Have you ever been disheartened because you purchased an item that went on sale the very next day? Some credit cards offer price protection. If you purchased your item with a credit card and see it on sale for a lower price, just provide proof of the new price to your credit card company. If they offer price protection, they’ll refund you the difference. Most Chase and Citi credit cards come with price protection.
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When you shop with credit cards, you’ll never have to spend money on extended warranties again. Just buy an item with a regular warranty, and your credit card company might allow you to extend that warranty for a year – for free. American Express and World Visa offer this service.
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What if you buy something that’s not quite right and you need to return it? If you paid in cash, you’ll have to show a receipt in order to get a refund. But if you bought the item with your credit card, all you need to do is show the merchant your credit card statement. Then they will have documented proof that you made the purchase at their store, and your refund will be forthcoming.
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Online shopping has surged in popularity. Unfortunately, when we buy things online, we can’t test out the merchandise before we make the purchase. If you end up with a defective product from a seller who doesn’t offer refunds, don’t despair; your credit card company’s got your back. They’ll reimburse you for the transaction if you report the faulty goods within 30 days.
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What if someone steals or damages an item that you purchased with your credit card? No worries. Besides the protection they extend for fraudulent purchases, credit cards also offer item insurance. Their coverage can extend into the tens of thousands of dollars. Gold and Platinum cards offer more insurance than regular credit cards. Just be sure that you have proof of your purchase as well as a well-documented account of the theft or damage incident. Include dates, details, and witness statements if applicable.
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Many travel credit cards also guarantee your reservations for hotel rooms or airplane tickets. If something happens and the airline goes bankrupt, you’ll be refunded the cost of your tickets.
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Credit cards vary, so be sure to read the fine print contained in your agreement. It will spell out the details of the safety benefits you can expect.
<p><br><br>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 href="http://www.creditorweb.com/">credit cards</a> online.
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12th September 2008
Have you received credit card offers in the mail? If so, you might have wondered which cards really offered good deals. Credit cards can be helpful budgeting tools, or sinkholes of debt. The difference is in the details: some cards have high rates and fees that make it difficult to keep your debt in check. Take a moment to compare credit cards before you decide to carry one in your wallet.
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Credit card offers list the terms and conditions of various cards. When you compare credit cards, look at the interest rate, also known as the APR. It might be listed as 0%. If so, you can bet that it will be much higher in six months to a year. 0% interest cards have introductory phases. After that phase has ended, they are subject to regular interest rates. Most cards offer 12-24% interest rates. The lower the rate, the faster you’ll be able to pay off your debt.
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Also make note of the type of interest rates on your credit card offers. Some rates might be “fixed”, and some might be “variable”. Choose fixed-rate interest whenever possible. Variable interest rates can change with little warning from the card issuer. If you do choose a credit card with a variable interest rate, make sure you know when and how much that rate can change.
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When you compare credit cards, you’ll notice that some of them come with quite a lot of fees. There can be application fees, processing fees, annual fees, late fees, and fees for going over your credit limit. Fees can also apply when you close your account or make a balance transfer to another card. The credit card industry is competitive, so don’t waste your time on credit card offers that indicate exorbitant fees.
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Your next step when you compare credit cards is to look at the credit limit each one is willing to give you. Some might offer low limits, while others might offer you thousands of dollars. Higher credit limits can improve your credit score, but they can also tempt you to spend money on things you can’t really afford.
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Always check the small print on credit card offers. Companies should tell you their policies regarding interest-free grace periods, late payments, and how you will be informed if changes are made to the terms of your contract. If you have questions about specific policies, call the card’s customer service division and ask to speak with a representative. Most card companies are only required to give 14 days’ written notice when making changes to your account. There is pending legislation that seeks to compel card issuers to give more notice before such changes are made.
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Don’t just accept the first credit card offers that come along. Take the time to compare credit cards. They can be great for building up your credit, but they can also leave you with a heap of debt if you don’t use them wisely. Look for good deals with low fees and interest rates. The research you do in the beginning can save you a lot of financial heartache down the road.
<p><br><br>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 href="http://www.creditorweb.com/">credit cards</a> online.
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12th September 2008
Cardholders make a lot of choices. First they must choose whether or not to apply for a card. Then they have to decide which card they want. Their choices include 0% interest cards, reward cards, charity cards, and so forth. But now there’s another choice for cardholders to make: debit or credit? Which card suits your needs better? Is one payment method superior to the other?
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Debit Cards
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Debit cards are a convenient choice for everyday purchases. You swipe them at cash registers and gas pumps just as you would a credit card. Debit cards pull money straight from your bank account. There is no interest involved, and no monthly payments to worry about. If you tend to carry a balance on your credit cards from month to month, debit cards might be a good alternative.
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Still, buyers should pay careful attention to their bank balances when using debit cards. Most debit cards won’t be declined until you’re overdrawn by hundreds of dollars, and each overdrawn transaction will cost you big.
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Also, debit card users aren’t subject to the same amount of purchaser protection that credit card users enjoy. For example, purchases made with credit cards can be reimbursed if the merchandise turns out to be shoddy. When you buy something with a debit card, you’re pretty much stuck with the purchase unless you can get an old-fashioned refund from the seller.
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Credit Cards
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Credit cards offer variety, perks, and consumer protection. They also come with the temptation to make purchases now and pay for them months later. If you’re not careful, it could even take years to pay off that family vacation or Christmas shopping spree! The number one rule for credit cards is this: Pay your balance in full every month. If you don’t, interest rates and finance fees will inflate the cost of your purchases.
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For those who pay off their monthly balances, credit cards are good financial tools that offer benefits not found with debit cards. For instance, some credit cards offer cash rebates for daily purchases like groceries and gas. Others help frequent travelers rack up free airline miles. Special-interest credit cards put money toward a variety of good causes, from college funds for children to veterinary care for pets. Still others donate a portion of all purchases to the charity of your choice.
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Credit cards offer other bonuses as well. Many provide rental car insurance and roadside assistance. Their greatest benefit is the protection they offer against fraud. If someone uses your credit cards to make unauthorized purchases, you won’t be liable for the costs. Also, if you purchase an item that turns out to be faulty, you can receive a reimbursement from the credit card company.
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Are credit cards superior to debit cards, or vice versa? The answer depends on what kind of buyer you are, and what kind of perks you want. If you’d rather not deal with monthly payments, debit cards are a good choice. But if you want to build up your credit score and enjoy some rewards along the way, credit cards are your best bet.
<p><br><br>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 href="http://www.creditorweb.com/">credit cards</a> online.
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