In this site you will find tips and ideas on how to handle your credit card right: February 2015

Free Prepaid Credit Cards - Friendly Plastic for the Very Young Pocket

It isn't a riddle, but it sure has the makings of one. You want to give your teenager a little spending power. You know your daughter could use the money to order things online. You believe giving her a plastic will help her learn financial responsibility, too. She can teach herself the finer points of budgeting and being accountable for her purchases. There are, however, two obstacles to your plan. The first is your daughter's age. She is only thirteen. As a minor, she cannot enter into credit card transactions. The second is her self-control. You're not sure how much self-restraint she could exercise, particularly when faced with a tempting array of bikinis, handbags, and dresses. So, what do you do? What do you get your daughter? The answer is made up of four words: free prepaid credit cards.

Prepaid What?

Free prepaid credit cards work in much the same way other prepaid cards do. You deposit a certain amount of money. Then, you get to use the card only to the extent your previously deposited amount allows you to. So you see, your cash balance works exactly like your other plastics' spending limit. Your purchasing power is only as good as your cash balance.

Free prepaid credit cards are the perfect way for you to keep your spending within reasonable limits. While the usual plastic lets you swipe away to your heart's content, free prepaid credit cards are only useful for as long as you do not exceed the prepaid amount loaded onto your card. This makes it the perfect plastic for people with spending problems, students on a budget, or teenagers who are being taught money lessons by their anxious parents.

A Credit Card That Isn't Really a Credit Card

Free prepaid credit cards are classified as credit cards. Many claim, however, that this is a misnomer. A prepaid credit card is not really a credit card. Why? To begin with, no credit is offered by the card issuer. The cardholder spends money that has been stored in the card through a previous deposit. It is precisely for this reason that free prepaid credit cards may be issued to minors. Because there is no credit involved, minors are free to own their personal prepaid credit cards.

So Why Get Free Prepaid Credit Cards?

There are advantages to getting free prepaid credit cards. The most obvious is that they are very easy to qualify for. In fact, they can be bought over the Internet. Additionally, many providers do not run credit checks or investigate your income. Because it's your own money you're putting up, providers do not put you through hell and back just so you could use your card.

Then, too, you do not pay interest charges on your free prepaid credit card like you would with a regular plastic. Why would you? You are, after all, using your own money. Another advantage is that free prepaid credit cards look exactly like regular Visa or Mastercards They are honored everywhere a regular card is. Furthermore, some free prepaid credit cards help you rebuild credit. Each time you use it, you are creating higher credit rating for yourself.

We live in a world where our buying power is largely based on our credit rating. Clearly, credit is good, high credit rating is to die for, and free prepaid credit cards are for all of us who have spending problems, have been remiss with paying off debts, or are below 18 years of age.

Credit Card Goodies with Affinity Credit Cards

By: Reflexiones Facil24 on 12:50 PM

Would you like to do something worthwhile with those cash back and reward points that you're earning on your rebate credit cards? Many major non-profit organizations would be delighted to help you do that. By making an affinity credit card your major credit card, you can donate hundreds of dollars to your favorite charity - just by using your credit card the way that you normally would.

Affinity credit cards have been around since the 1980s, but they've really taken off in the last four to five years. Among the non-profit organizations that have teamed up with major credit card issuers to offer affinity cards are the American Red Cross, the Humane Society of the United States and the Cancer Society. Add in the National Audubon Society and a wide variety of local police organizations, alumni associations, homeless shelters and labor unions.

Affinity cards, like co-branded cards, have both the credit card logo and the emblem of the charity that benefits when you use it on the front. Most affinity cards, however, don't offer special perks to the user, unless you count the knowledge that you're supporting a worthy cause that's important to you - and it's costing you nothing.

Just how much good do affinity credit cards do?

According to MBNA, about 35,000 people use a Humane Society of the United States affinity credit card. Over the last ten years, contributions through the affinity credit card have been 'well into six figures' annually. That's a lot of puppies and kittens being saved through people's credit spending.

That's just the tip of the iceberg. The World Wildlife Federation started issuing an affinity credit card in 1995. In the past ten years they've earned over $8 million in affinity credit card contributions.

Affinity cards work on the same principle as Earned Rewards cards. Whenever a holder of an affinity credit card makes a purchase using that card, they're credited with 1-1.5% back. The difference is that instead of receiving that reward themselves, it's contributed to the company that places its emblem on the card. It's a painless way to contribute to your favorite charity and let your spending habits do some good.

But how many people actually use affinity credit cards?

According to the Nilson Report, affinity credit cards make up almost 29% of all credit cards in use. That's nearly 1/3 of all active credit cards. That's a lot of charity going around for a country that supposedly has a heart of stone.

Should your non-profit agency consider issuing an affinity credit card? According to the experts, the standard rule of thumb is 'can you generate 50,000 credit card users in two years?'

What can you expect if you do decide to market an affinity card in conjunction with a credit card company?

Most companies - and they include local police unions, sports groups and philanthropic groups - get at least $1 per user that signs up for your affinity card, and a percentage of whatever is charged on those cards. Whether you're looking into applying for an affinity credit card or finding a bank that might be interested in sponsorship from your organization, be sure to shop carefully.

The better the deal you get on your affinity card, the more you'll be helping the people that are important to you.

Cash Back Card - Do You Know How They Work?

By: Reflexiones Facil24 on 5:07 AM

There are plenty of credit cards floating around in the credit card universe today, each offering you some level of reward or incentive to choose their credit card over their competitor. Things like frequent flier miles and cash back are often two of the rewards programs you see flashed in front of you on an almost daily basis.

But what are these programs and how do they work? Do they truly give you cash back? Not only can a cash back card deliver on its name, but many people strongly prefer this type of card.

You must first understand, though, that a cash back card is very much dependent on the fine print. To understand this, though, you must first understand what a cash back card is and why it's at your disposal. Credit card companies offer consumers incentives to give them incentive to purchase things on their credit cards instead of their competitors.

When you head out and spend $200 on your next wardrobe refresh, they want you to be conscious of which card you are putting it on. They want you to reach into your wallet and go "I can get cash back if I use this card," then pull that one out instead of their competitors.

So how can they afford to finance the incentives on a cash back card? If we are honest with ourselves, many of us don't pay our credit cards entirely off every month. The money they will rake in off of interest on your purchase far exceeds that small percentage they had to kick back to you to get you to use their cards.

But this is where the small print comes in as well. Many financial institutions have been known to charge massive annual fees or high interest rates that are far above the fair market value.
This is why it becomes extremely important to read everything when shopping for a cash back card. There are plenty of legitimate card issuers out there that may charge you an annual fee or a slightly higher interest rate but that's par for the course.

It's when these annual fees climb into the hundreds of dollars or your APR is 10% higher than their competitors that you need to be concerned. By doing a little homework beforehand, you can rest assured you got the best deal.

Tips on Understanding How Different Reward Credit Cards Work

By: Reflexiones Facil24 on 6:50 AM

Credit cards are ever changing and now from just functioning as plastic money credit cards are offering several incentives. The very first incentive or reward was offered in 1980 by Discover who offered "cash back" on every purchase. Now most cards have different reward schemes in place and generally offer a penny for every dollar spent. The penny as reward on credit card use can be in the form of cash, goods, or services. It is basically a marketing ploy with rewards encouraging credit card owners to spend more and to remain loyal to the company.

With intense competition to get and retain customers, credit card companies are offering a great bouquet of rewards. Today over 58% of credit card companies are offering customer rewards that are in excess of a penny to a dollar.

A reward card is a credit card that offers all the conveniences of a credit card along with great frills like gas at a discount, cash back, discounts on select merchandise, flying miles and more. In fact, today many cards allow customers to opt for reward points or cash back and a customer can change easily from one option to the next.

Whenever you use a card you will earn points based on the value of your purchases. Accumulated points can then be adjusted against card fees, merchandise, or as cash back. Points can be redeemed for airline rewards, cash rebates, movie or concert tickets, or things like tours, electronic goods, or household goods.

An extremely popular marketing scheme people prefer to get cards that offer incentives over cards that offer no frills at all. However, cards that have reward schemes generally have a higher APR or annual percentage rate.

o Always weigh the pros and cons carefully before you select a rewards credit card. Find out whether it will in actuality be beneficial to you.

o Choose the scheme with care. Incase you do not travel very often it is pointless for you to get a card that offers frequent flier miles. Perhaps a card that offers great merchandise will be more useful. According to CNN Money if you spend under USD 10,000 a year on travel then you should set aside all plans to get a card with flyer miles and choose one that gives cash back or other treats like discounts on gasoline.

Experts in finance and credit cards suggest that one should:

1. Opt for a card with many reward choices. This way you will have a greater choice and flexibility.

2. Always spend the points accrued quickly. Never wait to gather a huge number of points. Companies change schemes as well as rewards periodically and you may loose the value of the points.

3. Never sign up for reward credit cards unless you are sure you can pay the bills in full every time you use a card.

4. Avoid the temptation of applying for more than one card. Never increase your financial burden. More is not better.

Used wisely reward cards are useful. But one needs to use any credit card carefully or it can lead to bankruptcy.

Credit Cards Guaranteed Approval - Do They Still Exist?

By: Reflexiones Facil24 on 5:19 PM

Quite a few people across the United States now find themselves dealing with credit issues. It wasn't so long ago that just about anyone and had a pulse could get approved for a credit card. Those days, for better or worse, are over. Now unsecured credit cards guaranteed approval are difficult if not impossible to find.

In order to get an unsecured card nowadays you must have a pretty strong credit history. The qualifications for being granted credit have gone up quite a bit since the recession hit us so hard. Many economists agree that it is the worst shape our economy's been in since the great recession. Having said that there are some definite options available.

Secured Credit Cards

The way secured credit cards work is that basically the cardholder deposits a certain amount of money and they then have access to a line of credit that is equal to or greater to that amount. Basically secured cards are for people that have poor credit and would like to work on improving it and for people that have no credit and would like to establish a strong credit rating.

Be sure that you read all of the terms and conditions of any offer that you may be interested in. You're going to want to identify what the fees are and make sure that you make your payments on time. The money that you initially deposit acts as collateral so as long as you pay on time, that money will not be touched.

Prepaid Credit Cards

Prepaid credit cards and debit cards are one in the same. They are linked to a checking account where you deposit money into. You will then have access to any and all funds that are available in your account. The advantage here is that you will never be charged any interest because you are not being extended credit but are rather using your own money.

While you will not be building up a credit history by using prepaid or debit cards you do enjoy many of the benefits that credit cards have to offer. They are safer than cash and more convenient than writing checks. You can also use them just about any place that processes credit card transactions.

I suspect it will be easier to get credit approval in the years ahead but in the immediate future it is still going to be rather difficult. The banks and financial institutions took a big hit during the recession. Defaults and bankruptcies are at record highs and that is very much digging into the profit margins of the issuers.

Another reason we no longer see unsecured credit cards guaranteed approval is that unemployment is quite high. There is a direct correlation between the employment rate and the credit industry. When times are good credit flows easily and when times are bad it tightens up. When all is said and done it really all comes down to basic supply and demand.

How Secured Credit Cards Work

By: Reflexiones Facil24 on 11:46 AM

Many people are in the unfortunate situation where they have bad credit but they need to have a credit card. The reasons vary, but they're mostly related to being able to pay for stuff. For example, there's no need to stress the fact that if you're out shopping for what you need, it's so much safer to be able to use a credit card than to carry around a wad of cash. It's also more convenient that writing a check.
Furthermore, paying with a credit card provides you with a record of your purchases, which can come in handy when you're trying to keep your spending under control. Finally, credit cards can help you build your credit. So when you look at it, it's not ALL bad when it comes to credit cards. You simply have to use them carefully. That's where a secured credit card can help you get the best of both worlds.
In case you're wondering, a secured credit card works just like any other "normal" credit card out there, and also looks the same; it can bear the Visa, MasterCard, American Express, or Discover logo. So there's no concern over people knowing that you're using a secured credit card, if that's something you'd care about. The major difference with a secured credit card comes into play when you're about to get it. Here's how it works.
You have to open a savings account for a certain amount of money, and then that money will be frozen on that account, meaning that you will not be able to withdraw it. The reason is that this money will be used by the card issuer as collateral for the credit card they're going to issue you. In essence, you deposit that money and allow them to take it if you fail to make your payments.
In most cases, the money that you deposit as a collateral will generate interest, just as any other savings account. Furthermore, many secured card issuers will reconsider your case after a certain amount of time, usually a year. At that time, if your account shows a track record of timely payments and no exceeding of your limit, your account may be upgraded to unsecured status, which means that your credit card will no longer be tied to your deposit, and said deposit will be available for you to use.
A secured credit card also allows you to exercise control of your credit: you can increase or decrease your limit according to your needs. You can choose to make the minimum payment or bigger payments, knowing that no matter what, you can pay off the balance when you choose to. Plus, should something come up and you decide you're better off with no debt at all, you can apply your collateral and then if there's any balance, you can use that at your discretion.
One of the important things to keep in mind is that you will have to pay fees in one way or another. A little online comparison shopping will go a long way towards helping you finding deals that are competitive. Online issuers often offer perks, in a bid to get more customers.
Finally, do make sure that you get a secured credit card, and not a prepaid credit card. The difference is that issuers of prepaid credit cards don't report to the credit bureaus, and since what you're trying to do is improve your credit, they would be of no help in that particular situation.

Do Prepaid Cards Report to Credit Bureaus?

By: Reflexiones Facil24 on 7:52 AM

Are you looking for a prepaid card that reports to a credit bureau? The short answer is that most prepid cards do not help you improve your credit. That's because prepaid cards are not credit cards, and thus they do not extend credit to you. No credit, no credit bureau tie in.

However, there are are some cards that offer a credit reporting feature. Called the iAdvance Line of Credit by MetaBank, this is essentially a way to take out loans on a prepaid card account that when paid back get reported to one or more of the three major credit bureaus: Experian, TransUnion, or Equifax.

What Is a Prepaid Card?

First know how prepaid cards work. They are stand alone cards that look and act like a checking account debit card. They carry the Visa or MasterCard logo (typically) and run on the same debit card networks. They have an embossed 16-digit number on the front. This is your card's account. They have a magnetic strip on the back for card swipe machines to read your card account number. And they have a security code and signature line on the back as well. Unlike traditional debit cards (also known as check cards) prepaid cards are debit cards that are not attached to a checking or savings account.

You simply apply for a prepaid card from any number of prepaid card companies--such as MiCash MasterCard. There are no credit checks. You just have to verify your identity by providing your social security number and birth date (as required under the U.S. Patriot act to avoid terrorists or other criminals from obtaining a card). To use the card, you must "load" your card with money. You can do this through direct deposit, or through reloading networks. (See which networks apply to your prepaid card).

After you do that, you can use the card for purchases, and for each purchase, the purchase amount is deducted from your card's balance. When you reach zero dollars, you either need to put more money onto your card or it will become inactive. With prepaid cards, you'll pay either a monthly fee or a per-transaction fee (usually a dollar a transaction). So while these cards aren't free, for the unbanked (people who can't get a credit card or a checking account) they are an excellent alternative.

More About iAdvance

Here's how iAdvance works. You go to the iadvance website and sign up using your card account. You have to have direct deposit set upon your card as well. With the MiCash Card, you simply download a direct deposit form and, fill it out with your card's account number, and hand it in to your employer's payroll department.

Once you have set up direct deposit, you contact iAdvance online or by phone and take out a loan against your card balance (up to 50% of your balance). iAdvance does not recommend treating this program like a payday loan, and limits the number of iAdvances you can take out in a given calendar year.

Rather, it is meant for you to take out small loans--even as small as $20, which will then be automatically paid back the next time you have a direct deposit. This loan transaction and the fact that you paid it back on time (which happened automatically provided you didn't cancel direct deposit in the interim) is reported to one or more of the three major credit bureaus.

Over time, you will build up a history through iAdvance of paying loans back on time. This should help with your credit score, although iAdvance makes no claims that it will.

Not a Credit Card

So, even though you don't have a credit card, this is a good method for generating some "credit" that will wind up in your credit report. Another method is to pay bills, although bear in mind that most bill pay programs do not report to the major credit bureaus and hence, their value is minimal.

How Does a Cash Back Credit Card Work?

By: Reflexiones Facil24 on 11:14 AM

The popularity of cash back credit cards is increasing with every progressive day. Unlike other credit cards, cash back credit cards help you receive some cash back after making every purchase. Therefore, if you wish to apply for such credit cards or own one, you are sure to gain by reading further.

The working of cash back credit cards depends on the type of cards you are applying. Few credit cards give back more amount of money for purchase of particular items. For instance, some credit cards may give you more amounts of cash on gasoline or grocery purchases. Therefore, you have to decide as to which type of cash back credit card you want. If you are a frequent flier, then you need to consider buying airline credit cards because the more often you use these cards, the more cash or free tickets you get.

Working:

The terms, policies and conditions of cash back credit cards vary from one company to another. However, the process of earning points or rewards is nearly the same. Usually, credit card holders receive one point on every single dollar, which they use to make purchases. Some companies offer two points for every two dollars. These points are later converted into cash, so the name cash back credit cards.

Companies may give cash back from one percent to twenty percent and it depends on the amount of purchase. Therefore, if you are applying for cash back credit cards, you need to read the fine print very carefully and understand the working of your reward system, before you use these cards.

If you are using airline cash back credit cards and you buy tickets worth $800, then the card companies may give you four tickets free. Every ticket is for $400, although this rule is not applicable for all companies. This is just a general idea about how the cash back credit system works. Most of the companies will offer reward points.

Once you have the reward points, you may want to know about what to do with these points. Well, you may use these points to buy some new products or even pay bills. While some card companies require that you use the reward points to buy products from certain selected stores, others provide flexibility to shop from any store.

Few cash back credit card companies impose a limit of cash points. After reaching the speculated limit, the person does not qualify for more reward points. However, ideal cash back firms do not impose such limits.

Using such cash back credit cards, you can earn desirable number of points until you are an active member of that firm.

Competition:

Cash back credit card firms are all striving for attention to get more customers. Some of them are worth while some do not deserve the trust. Therefore, you need to be cautious enough while applying for cash back credit cards.

Cash back credit cards give rewards religiously if one makes the points on time. So, make sure to clear off all the balance every month, to obtain the rewards.

UK Credit Cards

By: Reflexiones Facil24 on 9:01 PM

Guide to Acquiring UK Credit Cards
All credit cards come in many shapes, colors and sizes. They come in different types and brands with their own list of great deals to offer. UK credit cards are not different from these. When you apply for a UK credit card online, there are three easy steps you can follow. First, you can search through the list of UK credit cards you might find while surfing the net. Then, you can compare the rates and the fees of these UK credit cards side by side and prepare for the process of elimination. After you have weighed the pros and cons and the advantage and disadvantages of your top choices, you can now make the final decision, which among the UK credit cards offered would best suit your needs. Then, you may proceed with your UK credit card application by filling out the form online.
Things you should know before getting UK credit cards Indeed, "plastic" has tremendously redefined the way people spend their money. In the US alone, more and more Americans are using credit cards because of the financial convenience it brings. When it comes to the UK, studies show that the Britons owe hundreds of millions in credit card debts. Being a flexible and accessible method of acquiring credit, various UK credit cards are being offered by major lenders to provide ultimate convenience to the consumers.
Applying for UK credit card can be both easy and difficult at the same time. Well, it can be surprisingly easy compared to spending the money itself. Getting a UK credit card is quite as easy like splurging your bucks on shopping spree. But, the difficult part when you have a UK credit card or any other credit card for that matter, is when the monthly bill arrives. Before getting a UK credit card, make sure to visit some guide and glossary so you will have all the information you need. Searching for important tips before you choose your UK credit card will help you become educated in your purchasing decision. Being informed before filling out for a UK credit card application will also help you reduce the possibility of getting stuck up in a credit card debt trap.
Reading some tips will also help you decide for yourself which among the list of UK credit cards would best suit your financing needs. You can choose the right UK credit card by comparing their features, interest rates, and benefits. Among the UK credit cards available, you should find the credit card with 0%, has the best rates and APR for balance transfers or purchases. Most importantly, never forget to look for the UK credit card with lowest rates by reading the descriptions carefully before you apply for a credit card online.
Top UK Credit Cards Since more than half a million pounds are spent on UK credit cards every minute-amounting to tens of billions spent each year-it is very important to choose the best credit card for you. Here are some of the top UK credit cards available. With their own sets of great deals to offer, it's up to you, which among these UK credit cards is best for you. First among the list is Marbles. It offers up to 52 days' interest free credit, 0% balance transfers for the 1st 6 months, and 14.9 % APR. If you're the type of person who wants almost everything customized, this UK credit card lets you choose what your card will look like. It also lets you manage your account online. This UK credit card is designed in one of the safest and secure credit card systems around.
If you are looking for a UK credit card that offers from 0% APR on balance transfers, from 15.9% APR on card purchases, no annual fees, and a free 24-hour help line, then you might want to try Virgin Card. This UK credit card can actually be your exclusive pass to an exclusive online membership online stuffed with great money-off deals. Another is the Egg Card that automatically gives you free purchase in transit protection for items. You can actually pay for all or part of your fare using this UK credit card plus the benefit of free personal travel accident insurance. Apart from that, the customers also get a 10% discount on home and travel insurance policies when they use this UK credit card. The GM platinum card, on the other hand, offers 14.9 % APR, 0% per annum on balance transfers and purchases for 5 months, and online account management. The best thing about this UK credit card is that the holder will receive a 100 free Rebate Points the first time you use it. This unique reward scheme makes this UK credit card more fun compared to others.
After weighing all the pros and cons, advantages and disadvantages, you may now choose the best UK credit card for you.

Can 0 Interest Credit Cards Work For You?

By: Reflexiones Facil24 on 2:38 AM

Many people wonder whether it is worth it to pursue a 0 interest credit card. With all the problems that almost every card holder has ever experienced with credit cards and the budding of unknown and hidden fees, we begin to wonder whether 0 interest credit cards are for real.

Well, 0 interest credit cards are for real, alright, but it is not necessarily what we think of. Some people mistakenly believe that 0 interest cards are those that have no real interest that can last for a lifetime. Others, however, believe that it is just a make-believe card and that it is impossible for any bank to give because the credit card companies wouldn't earn a cent.

At some point, they are true. But let us explain better what 0 interest cards are. This type of card does not have an Annual Percentage Rate during its first few months. The 0 interest rate is just an introductory offer that will last for a limited period of time. This limited period can last for either two months or 36 months, depending on the offer of the card company. After this period, the new APR shall kick in.

However, because the bank gets higher risk and earns nothing during the introductory period, they have set very stiff rules and conditions for a 0 interest card holder to follow. For instance, they may impose a late payment fee that is larger than usual to actually prevent you from sending delayed payments. Sometimes, they would even say that if you pay late, the entire 0 interest offer shall be wiped away. This can be problematic hence you have to make sure that you are prepared for such conditions.

Different credit card companies not only give different introductory period, they also allow different applications for your card. Some would allow balance transfers, which is good news for those who have big balances in their other cards. With 0 interest cards, you can transfer your balance and pay the debt off during the no interest period which accumulates no interest. However, not all 0 interest credit cards allow such transactions. Some would only allow the use of the card for either purchases or cash advance. All you need to do is research for the card that ultimately fits your needs.

Another advantage of the 0 interest cards is that you can get an interest-free loan. Whether you would need it to pay for your student loan, a micro-business loan or just for emergencies, this can definitely come in handy.

One reminder when getting 0 interest cards: never ever assume that this offer would last a long time; else you would be walking towards financial disasters. Either 0 interest credit cards can help you, or they will put you down. It is all up to you. Developing bad paying habits is the usual side effect of this card, but you can refrain from this by scheduling your payments and managing you accounts well. So, do you think 0 interest credit cards can work for you?

How Do Credit Cards Work?

By: Reflexiones Facil24 on 11:33 PM

Credit Card transactions involve a complex network of various entities.

Card Associations

The credit card associations are brands that are well recognized by consumers and merchants and include VISA, MasterCard, Discover, Diners Club and American Express. These associations create and enforce member governing rules, provide authorization and settlement networks, conduct fraud monitoring, and market the association brand. They make their money by charging member financial institutions and credit unions annual membership fees, and they also get paid about a dime in assessment fees for every $100 that they process through their network.

Issuing Financial Institutions

The issuing financial institutions market and provide branded credit and debit cards to consumers. The issuers are well known brands like Chase, Bank of America, and Citigroup, to name a few. The issuers make money from interchange fees when the consumer uses his/her card in a purchase transaction, but most of their money comes from the interest income associated with consumers carrying credit card balances from month to month.

Merchant Card Acquirers

Merchant card acquirers promote and sell card acceptance services to the merchant community. These acquirers charge a discount rate to merchants and billers, and this discount rate is their primary source of income.

Processors

The final link in the chain is the card processor, who provides transaction authorization services, account statement services, and invoicing services. Processors must drive a lot of volume through their network to generate any meaningful revenue.

Interchange

Interchange is the amount of money that is collected by the issuing bank from the acquiring bank for each transaction. These rates vary according to vertical market, and also vary within due to variables like whether the card was physically present during the transaction or not. Merchants will have to pay more for a transaction initiated that was not swiped using a physical terminal.

All of the entities in the credit card transaction process play an important and vital role that contributes to facilitating this convenient and reliable financial network for consumers and merchant businesses. How do credit cards work and Get Rid Of Your Debt, Clean Up Your Credit, And Make Debt Collectors Go Away? And Make Money Doing It! If you want more info just ingress right here.

How Do Credit Cards Operate?

By: Reflexiones Facil24 on 11:35 PM

Credit Cards have changed the way that the world does business. Before credit cards were invented, a person did not buy something until they had all of the money required to purchase it. With the invention of credit cards, it became possible for consumers to purchase goods before they could afford them. The idea of buy now, pay later started to rule the world.

How do credit cards work and how do they make money? The concept behind charge cards is actually fairly simple, but it also can be a little tricky. It is important to know how do credit cards work before acquiring one. Without the knowledge of their process it can be easy to fall into a large amount of debt very quickly.

So how do payment cards work? There are several aspects to the charge card process. The first area of this is the interest rate. Most card companies operates of an annual percentage rate. The rate varies for each customer, due to their credit reports, their ability to pay bills on time, and the economy. The interest rate is the main place that credit card companies make their money. They want their customers to leave large balances on their credit cards so that they are able to collect more money from the interest. The best way to combat this is to try and find credit cards that offer zero percent interest for a period of time. This is helpful when a large balance is present on a card. Paying off the credit card as soon as possible is also important.

You may also charge your finance charges in your credit card. How do they work in this area? Finance charges are the fees that a company places on the credit card for the convenience of being able to purchase the item before the consumer can afford it. Usually these finance charges are a small amount and are charged for processing fees, late payments, and for having a balance on the card. Some companies charge more than others in the area of finance charges. Also there is usually a finance charge when a balance transfer is made from one card to another. To keep finance charges low, a person can maintain a low balance or pay off the credit card every month.

How do they work to the advantage of the consumer? There are many great benefits that using plastic can provide. The main benefit is the ability to receive items much sooner. Many providers also provide rewards points to frequent users of their credit cards. These points allow customers to purchase free items and vacations from a site that the credit cards sponsor. Having credit can also boosts a person's credit score. A benefit to merchants who accept plastic is that a charge card payment is a sure thing for them. Unlike a check, which can often bounce, credit card merchants always pay the merchants. Most companies would prefer credit card payments to almost any other form of payment.

Now the question of "how do credit cards work" has been answered. Through the use of an interest rate on the remaining balance on a credit card to bring in money to the card provider, and through the use of finance charges the credit card company is able to make money. The consumer is happy because he or she was able to purchase something right away without having to wait. The companies are happy because they are sure of receiving payment from a direct bank transaction. All of these processes explain why credit cards are so popular today.

How do credit cards work and Get Rid Of Your Debt, Clean Up Your Credit, And Make Debt Collectors Go Away? And Make Money Doing It! If you want more info just ingress right here.

How Rewards Points Programs Works With Your Credit Card?

By: Reflexiones Facil24 on 10:03 AM

If you have a new credit card that offers rewards points, but you aren't quite sure how the system works, the information presented here will help you. Let's take a look at what credit cards with rewards points programs are, and how you use them.

Rewards points are an incentive to use your credit card. Each time you use your credit card, you receive points based on the amount of money you charged. These points accumulate and can be redeemed for many different rewards, depending upon the credit card you're using. Rewards can include:

Airline miles

Free or discounted gas or groceries

Free or discounted hotel rooms or other travel accommodations

Free tickets to movies or events

Priority alerts and/or admission to events

Cash rebates

Household and entertainment items

Your monthly credit card statement will give you an overview of how many points you've earned, based on how much you've charged. Credit card companies or your bank will provide you with a catalog of rewards, or have a catalog available for viewing online.

The catalog will outline how many points you need to earn for a given item. If you are redeeming points for airline miles you will have a running total of miles earned. Note that when you redeem airline miles, your reward is calculated differently based on the credit card and your airline.

There is a points to miles conversion that happens that can be a bit confusing. Your airline can help you understand how this works. It's important to know that your credit card rewards points most likely have an expiration date, so you must pay close attention to that date or you stand to lose your points.

Most points are easily redeemable through the credit card or bank website, or by completing and order form. There are also customer service phone numbers available for all the major cards if you prefer to talk to someone when going through the process of redeeming rewards points.

Having a credit card that offers rewards points is a great thing! For each dollar you charge, you earn points for stuff - how great is that? If you are aiming at a high point, super reward, remember that you have to use your card to get those points (just be wise about it), and remember that if you don't redeem those points before they expire, you will lose them.

Some people prefer to use their points towards smaller rewards for this reason.
Make certain that you are using your credit card wisely and you will find that using your credit card to earn rewards is definitely a "value added" situation.

How do credit cards work and Get Rid Of Your Debt, Clean Up Your Credit, And Make Debt Collectors Go Away, And Make Money Doing It! If you want more info just ingress right here.

How do Credit Cards Miles Works with Airlines?

By: Reflexiones Facil24 on 1:25 AM

Much confusion has been had by people looking for a new credit card. Everybody is looking for a card with great rewards. A popular reward is airline miles. How it works is for every dollar you spend your credit card company gives you a mile towards your next plane ticket. They coincide with each other based on how far you plan on going. Some companies give you a dollar for that mile but most stay with the actual distance.

All of the major airlines have a mile reward credit card. Continental, Southwest, and Northwest have some of the best programs. For the most part you can accumulate these miles for a couple years and cash them in at one time. Do be aware that some of these airlines only let you travel on odd days and hours. The airlines would rather charge full price for a seat on a plane leaving on a Saturday instead of you taking that seat for free. What they would rather do is have you leave really early on a Tuesday or Thursday which are historically light travel days. They know that they are going to have seats available so you are forced to use these times. If you are flexible then it does not really matter because you are getting a free ticket.

So what credit card should you apply for? Should you apply for an airlines card or go through a bank? It really depends on what kind of traveler you are. If you can be flexible then go with the airline. The only downside is that one particular airline might only go to certain locations. What if you want to go to South America and your airline does not go there. Then you are stuck with unused miles. many people find this out the hard way. They call up their credit card customer service and are told it while they have started planning the trip out.

The best bet would be to apply with a bank. The credit cards will give you miles that can be used to any airline with no blackout dates. You get the most flexibility this way. No getting up at 5 am on a Tuesday to make it for your early flight just because the airline told you this was the only time. The banks will want to keep your business and will be able to provide better customer service also.

When applying for your next mile rewards credit card take a closer look into going with a well known financial institution. This way you can plan where and when you want to go instead of being told when you are going to go.

how do credit cards work and Get Rid Of Your Debt, Clean Up Your Credit, And Make Debt Collectors Go Away? And Make Money Doing It! If you want more info just ingress right here.