Please use caution when you use a 'credit' card on the
internet. There are 'criminal elements' every-where, and online
is no exception. I will actually go as far as to say that you
should NEVER use a 'credit' card online AT ALL. Hear me out! I
have a PayPal account and it can be quite useful for ebay or
other places that accept it. To get a PayPal account you need
some sort of credit card, right? WRONG! There are two main
types of 'plastic card', the first is a 'CREDIT' card (
potentially very dangerous when used online ). The second card
is a 'DEBIT' card - very SAFE to use online, if you go about it
the right way.
You do not need a credit card to establish a PayPal account. (
or for lots of other online services..) A 'debit' card is much,
much safer and I will explain why. Firstly, if you use a credit
card online and you are unlucky enough to have your card
details stolen or intercepted, then ALL the money that is
available to that card can be lost - permanently. Can you
afford that?? Even if you can afford to lose that money ( lucky
you!! ) do you really want to hand it over to a criminal? My
guess would be no. So don't risk it happening! I don't have a
credit card at all, and that is largely irrelevant, but I can
purchase things online.
What I use is a VISA enabled DEBIT card instead, and this is
how it works. I have two bank accounts, one with all my money
in it, the other is nearly always completely EMPTY. The empty
account has the VISA debit card attached to it. How does that
work if it is empty most of the time? Very easily. The first
account has an online banking facility and I simply transfer
money into the VISA account whenever I need to use it. I only
transfer about ten dollars more than I think I will need to
make a purchase, so that if my VISA card details are
intercepted or used by any criminal organization, they can't
get at ALL my money.
Yes, online banking has potential risks as well, but with the
added layers of security that a bank provides, the risk is much
reduced. Also you can directly visit your bank to sort out any
problems should they occur, but it is much ( very much ) harder
to do that if you are dealing with an online organization that
may be based a different country altogether. So, I hope you
aren't using a credit card online. (!?#!!)
Note 1 : The reason I transfer about 10 dollars more than I
think I will need for any given transaction is to cover
currency conversion variations and un-noticed packaging,
postage, or insurance costs. I also like to leave a balance of
about 20 dollars to feed my online insurance policy. ( see the
paragraph below note 2. )
Note 2 : Most online banking facilities allow an unlimited
number of transactions, with no transaction fees. So you can
use it as much as you want to and it costs you nothing. Now
that's how much I like to pay!! Don't forget that in some cases
you can do direct bank deposits to make a purchase online. That
means even less risk to you because the vendor doesn't even
have the chance to get at your card at all. They only get the
money, and that's just fine by them. If you need to set up
recurring payments for a membership or subscription service,
the best way is by direct bank deposit. You set it up, you
control it, and 'they' can't change what they charge you or add
extra charges without you knowing about them :-)
There is a cost involved with having a second bank account and
that cost is usually thought of as dead money, but if you look
at that monthly ( or annual ) cost as a form of 'pay as you go'
insurance, then it is a lot more acceptable. What I mean by pay
as you go insurance is the charges ( account keeping fees ) for
the usually empty second account are your insurance policy
against losing the contents of your main account to an online
criminal. When you look at it that way, it is really rather
cheap. You also get insurance against financial loss from VISA
if your card is lost or stolen in the 'real world'- not that
there would be a substantial amount available to that card if
you operate it the way I have outlined above. You can use
either type of plastic card on the internet, and the vendor of
whatever you purchase will never know what type you are using,
but I know what type of card I will always use. The debit card.
Footnote : No, I don't have a 'credit' card at all, so without
the services of a debit card I wouldn't be able to purchase
much online. But I wouldn't have a credit card even if I could
'afford' one. I personally think that credit cards are just too
big a temptation for the average person. If you have thousands
of dollars available to be spent as credit, that is just what
most people do, they spend it. Why is that a problem? Well if
you don't have the money to buy whatever you have bought using
your credit card, where are you going to find the money to pay
that credit back?? Oh, and what about the rude amount of
interest that a lot of people end up paying on their credit
cards? Sometimes for years.. I may be old fashioned in this
regard, but saving your money by having a budget, and buying
something when you can afford to do so, really does save you a
lot of money in the long run.
About The Author: Colin Visser is the owner of
http://webdziner.gotdns.com/ and offers web site design &
english proof reading services. Proof reading for web sites,
software, help files, email and news-letters. Free quotes.
Please send comments using
http://webdziner.gotdns.com/email.html
Monday, October 31, 2005
Sunday, October 30, 2005
Managing Credit Cards Effectively
Credit cards are almost a necessity in today's society. It has
become harder and harder to get through life without plastic.
If you want to make purchases over the Internet, guarantee a
hotel room, or perform a wide variety of other financial
transactions, a credit card is essential. And, the truth is,
credit cards can be a valuable financial tool, provided you
manage them effectively.
All credit cards are definitely not created equally and the
first step to effective credit card management is shopping
around for the right card in the first place. The factors to
take into consideration are interest rates, annual fees, other
fees, grace periods and aspects like cash back or other rewards
for using the card.
Interest Rates
One of the incentives credit card companies use to try to get
customers to choose their card over all the others floating
around is to offer a special introductory interest rate. An
introductory rate sounds good, but can be a trap for the
unwary. Generally, the customer opts for the low introductory
rate, runs up the charges on the card, and is not able to pay
the card off by the end of the introductory period. That's when
the 'after-introductory' rate kicks in, and you find yourself
paying from 12-20% on your credit card debt. When you are
interest rate shopping, you also need to make sure that the
interest rate won't take a substantial jump if you are late
with a payment. Some companies bump the interest rate if your
payment is even a day late, and the change is permanent. You
don't ever go back to the lower rate.
Fees
Be sure to read the fine print. Credit card issuers have gotten
fairly ingenious about hiding a variety of fees that the casual
consumer, who doesn't bother to read all of the credit card
details, may end up paying and not even be aware. Annual fees
are fairly straightforward. There are cards that charge annual
fees just for the privilege of carrying the card, and there are
others that don't charge annual fees at all. An annual fee is
not necessarily bad, depending on the perks that go along with
it. If there are none, don't bother with cards that charge an
annual fee. On the other hand, if you have no credit history or
a bad credit history, you may have to get a card with an annual
fee, and use it until you can qualify for a different one. In
most cases the annual fee can be rolled into the monthly
payments and doesn't have to be paid up front, although that is
not always the case.
Watch out for hidden fees like closure fees. Some companies
actually charge you for closing your account. The only way to
avoid closure fees are to carefully read all of the credit
card's terms and conditions before accepting it and make sure
that no such fee is attached.
Late fees can be charged when your payment is late, sometimes
even as little as one day late. These fees can vary, but again
are disclosed in the credit card terms, so at least you are
aware and can avoid them by keeping your payments current.
If you travel, beware of overseas transaction fees. Some card
issuers have begun to charge a 1-2% fee off the top for using
the credit card overseas.
Grace Periods
If you plan on paying off your balance in full each month to
avoid incurring any interest fees, make sure your card has a
grace period that allows you to do so. Some cards begin
charging interest at the time of purchase. In that case, even
if you pay off your balance every month, you will still end up
paying interest to the credit card company. Make sure there is
a grace period on your card - that's the amount of time you
have before you start incurring interest charges and it's
usually something like 25-30 days. Be sure to read the card
disclosures carefully so you will know if there is a grace
period during which you pay no interest, or not. If you don't
pay off the balance of your account each month, grace periods
really don't make too much difference because you will be
paying interest anyway.
Other Benefits
Some credit cards offer additional benefits for using their
card - things like airline miles or a percentage of cash back
on all your purchases. If you travel a great deal or routinely
use your credit card for all purchases and then pay them off
before the end of the month, these can be valuable additions.
However, be sure to read all of the fine print and make sure
the perks aren't costing you more in fees and interest than
they are worth.
If you can't get by without a credit card, and very few of us
can in this day and age, at least be aware of all the different
types of offers that exist and choose the one that will benefit
you most in the long run.
About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Payday loan
or any type of faxless loans please visit us at
http://www.PaydayLoanChoice.com
become harder and harder to get through life without plastic.
If you want to make purchases over the Internet, guarantee a
hotel room, or perform a wide variety of other financial
transactions, a credit card is essential. And, the truth is,
credit cards can be a valuable financial tool, provided you
manage them effectively.
All credit cards are definitely not created equally and the
first step to effective credit card management is shopping
around for the right card in the first place. The factors to
take into consideration are interest rates, annual fees, other
fees, grace periods and aspects like cash back or other rewards
for using the card.
Interest Rates
One of the incentives credit card companies use to try to get
customers to choose their card over all the others floating
around is to offer a special introductory interest rate. An
introductory rate sounds good, but can be a trap for the
unwary. Generally, the customer opts for the low introductory
rate, runs up the charges on the card, and is not able to pay
the card off by the end of the introductory period. That's when
the 'after-introductory' rate kicks in, and you find yourself
paying from 12-20% on your credit card debt. When you are
interest rate shopping, you also need to make sure that the
interest rate won't take a substantial jump if you are late
with a payment. Some companies bump the interest rate if your
payment is even a day late, and the change is permanent. You
don't ever go back to the lower rate.
Fees
Be sure to read the fine print. Credit card issuers have gotten
fairly ingenious about hiding a variety of fees that the casual
consumer, who doesn't bother to read all of the credit card
details, may end up paying and not even be aware. Annual fees
are fairly straightforward. There are cards that charge annual
fees just for the privilege of carrying the card, and there are
others that don't charge annual fees at all. An annual fee is
not necessarily bad, depending on the perks that go along with
it. If there are none, don't bother with cards that charge an
annual fee. On the other hand, if you have no credit history or
a bad credit history, you may have to get a card with an annual
fee, and use it until you can qualify for a different one. In
most cases the annual fee can be rolled into the monthly
payments and doesn't have to be paid up front, although that is
not always the case.
Watch out for hidden fees like closure fees. Some companies
actually charge you for closing your account. The only way to
avoid closure fees are to carefully read all of the credit
card's terms and conditions before accepting it and make sure
that no such fee is attached.
Late fees can be charged when your payment is late, sometimes
even as little as one day late. These fees can vary, but again
are disclosed in the credit card terms, so at least you are
aware and can avoid them by keeping your payments current.
If you travel, beware of overseas transaction fees. Some card
issuers have begun to charge a 1-2% fee off the top for using
the credit card overseas.
Grace Periods
If you plan on paying off your balance in full each month to
avoid incurring any interest fees, make sure your card has a
grace period that allows you to do so. Some cards begin
charging interest at the time of purchase. In that case, even
if you pay off your balance every month, you will still end up
paying interest to the credit card company. Make sure there is
a grace period on your card - that's the amount of time you
have before you start incurring interest charges and it's
usually something like 25-30 days. Be sure to read the card
disclosures carefully so you will know if there is a grace
period during which you pay no interest, or not. If you don't
pay off the balance of your account each month, grace periods
really don't make too much difference because you will be
paying interest anyway.
Other Benefits
Some credit cards offer additional benefits for using their
card - things like airline miles or a percentage of cash back
on all your purchases. If you travel a great deal or routinely
use your credit card for all purchases and then pay them off
before the end of the month, these can be valuable additions.
However, be sure to read all of the fine print and make sure
the perks aren't costing you more in fees and interest than
they are worth.
If you can't get by without a credit card, and very few of us
can in this day and age, at least be aware of all the different
types of offers that exist and choose the one that will benefit
you most in the long run.
About The Author: Max Hunter is the author of many credit
related articles. If you are looking for help with Payday loan
or any type of faxless loans please visit us at
http://www.PaydayLoanChoice.com
Saturday, October 29, 2005
How To: Avoid Foreclosure
In order to avoid foreclosure, you need to find the companies
and the services that are able to provide you with high quality
information. You do not need someone to come in and try to sell
you yet another deal. For honest to goodness help in getting
out of this debt and mess, you need high quality advice. While
it is not easy, you can avoid foreclosure.
First of all, make sure that avoiding foreclosure is the right
thing for you. If you can not make the payments and you cannot
find a way to get around it, letting it go will ruin your
credit, but until it is over it can't get any better. While
this is not news you want to hear, it can be helpful to some.
But, when you do have a shot, you need to take it. To avoid
foreclosure, you need many options. For example, you may want
to actually call the bank and ask them if there is a way you
can work with them to end the problems. Maybe they can extend
your payments so that you can get back up.
You may be able to get a loan that will cover the amount that
you owe as well as any other money that you need. This can then
be paid off in installments. Although hard to find, this is one
method to avoid foreclosure.
You should take the time to speak with the creditors that you
owe money to and see if you can work something out with them.
Be honest and tell them what has happened, what you plan to do
to get out of it, and see if they can help you. If it does come
down to selling the house, do your best to get through it before
it is too late. You can avoid foreclosure by taking the time to
find all the options that you have and then choosing the best
possible answer for you.
About The Author: For more information please see
http://www.avoid-foreclosure-info.co.uk
and the services that are able to provide you with high quality
information. You do not need someone to come in and try to sell
you yet another deal. For honest to goodness help in getting
out of this debt and mess, you need high quality advice. While
it is not easy, you can avoid foreclosure.
First of all, make sure that avoiding foreclosure is the right
thing for you. If you can not make the payments and you cannot
find a way to get around it, letting it go will ruin your
credit, but until it is over it can't get any better. While
this is not news you want to hear, it can be helpful to some.
But, when you do have a shot, you need to take it. To avoid
foreclosure, you need many options. For example, you may want
to actually call the bank and ask them if there is a way you
can work with them to end the problems. Maybe they can extend
your payments so that you can get back up.
You may be able to get a loan that will cover the amount that
you owe as well as any other money that you need. This can then
be paid off in installments. Although hard to find, this is one
method to avoid foreclosure.
You should take the time to speak with the creditors that you
owe money to and see if you can work something out with them.
Be honest and tell them what has happened, what you plan to do
to get out of it, and see if they can help you. If it does come
down to selling the house, do your best to get through it before
it is too late. You can avoid foreclosure by taking the time to
find all the options that you have and then choosing the best
possible answer for you.
About The Author: For more information please see
http://www.avoid-foreclosure-info.co.uk
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