Archive for January, 2010

Secured Credit Cards

Tuesday, January 26th, 2010
The CreditLawGroup recently asked:


What is a secured credit card and how does it differ from regular credit cards and prepaid cards?

A secured credit card is an option for a person to build or rebuild his or her credit. Furthermore, a secured credit card provides the opportunity for consumers to gain access to certain services such as renting a car or hotel room. Secured credit cards differ from traditional credit cards in that a deposit is required to serve as the consumer’s credit line whereas with traditional credit cards, the consumer’s credit line is collateral free and based partly upon their credit and payment history. Secured credit cards differ from prepaid credit cards as well.  With prepaid cards, there is no required credit history check and the consumer’s credit line is limited to what the consumer has previously paid, or loaded, on the credit card. On the other hand, a secured credit card requires its user to open a savings account which will serve as his or her credit line. The consumer will then continue utilizing the secured credit card as a traditional credit card; in the event the secured credit card user defaults on his or her credit card payment, the user’s savings account will be used as collateral. 

What are the benefits of a secured credit card?

-  Access to a credit card = Obtaining a secured credit card may benefit some people who have a tarnished credit history and therefore, have been denied by traditional credit card providers such as Visa®, MasterCard®, and American Express®. By gaining access to a secured credit card, a consumer has a whole variety of purchasing opportunities available to him or her, such as making online purchases, reservations, and features such as automatic bill pay.

- Improve your credit history= Once a secured credit card has been procured, a consumer now has the opportunity to make consistent, on-time payments. Just as important as making timely, in full payments, it is imperative to confirm with the secured credit card provider, prior to opening the secured credit card, that it reports to the 3 major credit bureaus (Equifax, Experian, and TransUnion) and that it does not mark the reports as a secured credit card. Having the secured credit card provider report positive payments to the bureaus without flagging the reports as a secured credit card is the main way that secured credit cards can improve your credit history and probably improve your credit score.

- Save and or earn money= A secured credit card requires its users to open a savings account that serves as collateral in the event the user defaults on his or her payments. If the user makes timely and consistent payments on his or her secured credit card, this savings account will not and cannot be touched. This is beneficial to the user because for the time that their secured credit card account is open and in good standing they will be saving the money. Furthermore, more than likely the money in that savings account will be earning interest, a net gain.

What are the disadvantages of a secured credit card?

-  Upfront costs= In order to obtain a secured credit card, one must open a savings account to serve as collateral in case the user defaults on his or her payments. Therefore, funds are required to be available prior to procuring a secured credit card. The amount of money that is required depends on the bank or credit union with which the savings account is opened and the amount of money the secured credit card provider requires to be in the savings account. Additionally, some secured credit card providers have application fees.

-  Hidden fees= While secured credit cards offer many benefits, there are fees associated with the usage of secured credit cards such as annual fees. Moreover, secured credit cards almost always have much higher interest rates than traditional credit cards, and thus, it is suggested to utilize them only for as long as needed or until one’s credit has improved. Additionally, some secured credit card providers hold on to the funds in the user’s savings account for a designated period of time after the secured credit card has been cancelled to safeguard themselves against any possible lingering charges. Therefore, it is extremely important to shop around numerous providers for a secured credit card.

- Hinder your credit history= Although secured credit cards may be beneficial to some people, if a user defaults on payments, especially past the amount being held as collateral in his or her savings account, it can tarnish their credit history and consequently lower his or her credit score.

In summary, secured credit cards may be very beneficial to its users by opening doors to new purchasing opportunities, improving credit histories, and saving and/or earning money if used appropriately. However, if a user cannot meet the payments of what they charge on the secured credit card, he or she may be worse off than in the beginning. Finally, if a consumer has decided to use a secured credit card it is imperative to shop around for the best deal, including but not limited to: non-flagged reporting to the 3 major credit bureaus, lower interest rates, lower annual fees, and inexpensive or no application fees.

If your serious about improving your credit score Contact CreditlawGroup at (800) 508-0041 our competent legal representation can help protect your rights and remove inaccurate, outdated, unverifiable, incorrect and other erroneous items from your credit report.





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Benefits of Online Phone Cards

Friday, January 22nd, 2010
Euro Calling Cards recently asked:


The sales of online phone cards are increasing day-by-day. Now, calling a friend or to make an international call has been made so easy, that you can use any phone and make an international call – be it your cell phone, your office phone, your neighbor’s phone or a telephone booth. Use any phone and the phone card and you can make calls.

The basic benefits of these phone cards are

You do not have to switch your long distance carrier. You can purchase the best phone card that suits your need and use it. You receive ease of mobility. You can use your cell phone and the phone card to make the international calls. If you are a frequent traveler, carrying phone cards is much economical to make calls. You have a wide range of phone cards available to choose from. Check the best ones and go ahead buy them online. You get the PIN instantaneously and you can start calling immediately. Payments are accepted online. You have the ability to auto-recharge the card, when the card balance reaches certain amount or minutes. So, you do not have to buy again and again to recharge your card. Moreover, auto-recharge mostly comes with certain discounts or added features. Certain phone cards providers also provide PINLESS dialing. Which is much easy to use.

If you are buying these prepaid cards for the first time, then you need to closely make comparisons on each calling card providers’ services by clearly and properly understanding the fine print that is provided along with the calling card, and make decisions on which one are the best ones that suits your needs and requirements.





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How to Select a Good Prepaid Phone Calling Card for Your Long-distance Calling Need

Wednesday, January 20th, 2010
Euro Calling Cards recently asked:


International phone calling cards and long-distance prepaid phone cards have become more important than beneficial to us. These plastic cards can makes us easy and simple to contact our family and friends, especially if we are very far from them in a different country. One does not need to carry a mobile phone or search for a service provider for the SIM. These prepaid calling cards can be utilized from any standard landline, mobile phone and pay phone, to quickly make calls anytime and anywhere. And there are no anxious moments for hefty or wrong bills. You will know the call charges as soon as you have completed the call.

If you are buying these prepaid cards for the first time, then you need to closely make comparisons on each calling card providers’ services by clearly and properly understanding the fine print that is provided along with the calling card, and make decisions on which one are the best ones that suits your needs and requirements.

Compare Each Calling Card’s Connection Fees

Prior to buying a calling card, find out if there is a connection fee being charged. These fees are generally charged every time you make a successful call using that calling card. Successful call here also includes connecting to a voice mail, answering machine or pager. These types of fees generally vary between different calling card providers, and if you generally use the calling card to make short-distance calls then you may end up paying more as connection fees rather than the cost of actual call made. For consumers who make only short calls on a regular basis, be sure to check the ‘per minute rate’ and the connection fee to ensure that these would not be too excessive, as it would be no good paying low per minute rates and higher connection fees for a quick call. There’s usually a trade-off between per-call charges (connection fee) and per-minute charges. The higher the per-call charge is, the lower the per-minute charge usually is. If you make a lot of long calls, go with the higher per-call rate. If you make short calls, the higher per-minute cards are probably better for you. Presently, many prepaid phone cards providers have cheaper per minute charges, however have high connection fees.

Learn More About Rechargeable Cards And Expiry Dates

Prepaid phone calling cards do expire after a certain period. Check for the expiry dates provided by the calling cards providers. The usual expiration dates range from 3 to 6 months from the date of purchase or from the initial use of the calling card. If the calling card expires with a considerable amount of time as credit, you will surely lose that out after the expiry date. Some prepaid calling cards are rechargeable, and all you need to do is to simply add more minutes by contacting the calling card provider’s toll-free hotline numbers or support numbers.

Gain Valuable Product Info Before Buying One

It is needless to say that considering only the above two points can help you find a good calling card. You need to also clarify if these prepaid calling card communication devices can offer high-quality connections and are easy to of use. Search on internet for the reviews of providers. You can also contact their customer support for questions or concerns regarding the quality of the phone calling card and judge from their response and feedback.

Get Cheap Calling Cards





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How Prepaid Cards Make You Money

Monday, January 11th, 2010
Tom Tessin recently asked:


Many credit card companies have started using the cardholders as a part of their marketing plan by offering them the opportunity to earn cash back or referring a friend. There are several credit card companies that offer you a referral fee when you have someone sign up and start using the credit card. You should check out the different opportunities offered by these credit card companies. Many of the companies offer you a lifetime commission and tiered commissions. You are interested in earning money from your prepaid credit card check out where you are getting your card and the company that is offering you this card. You can contact them and find out if they have the marketing plan in place where they pay you to refer customers to the company. You should also find out what percentage they are offering as this can differ from company to company.

Many companies offer you rewards or cash back even if they do not offer you referral fees. You can earn cash rewards towards other purchases or point rewards to be used for the purchase of products that they designate in their catalog. These point rewards are valuable and can help you to get many things that you want without having to pay out cash money. The rewards programs can be used with airline miles and gas miles. You need to check out how your company handles their rewards and cash back programs. The opportunity to make money is just another way the credit card companies have to gain new customers but it can be your means of earning cash.

When you’re in the market to find the perfect prepaid card, there are a lot of things that you need to look out for to ensure you that you’re getting the card that works great for your wallet. Since prepaid cards may differ than regular cards, a credit card company may want to look into tagging on fees elsewhere so that they can make money off you.

This is why you need to look out for particular fees when you’re applying. Every application that you look at online will show you exactly what they are going to charge when it comes to fees. If there’s an annual fee, monthly fee or activation fee, I would recommend that you look elsewhere because there are so many cards on the market that are great that have next to no fees. You have to think about it this way and that if a card has a fee; you’re going to be paying money to hold a card in your wallet. Does this sound like it’s worth it? Absolutely not.

When it’s time to apply for a card, make sure you do your homework. There are so many resources online that enable you to find the card that you need. Look at the fees, look for the major logo and make sure that the card fits your needs when you want to put money on it. If you find yourself with a complicated card, you may be regretting it in the long haul.





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Prepaid Cards

Tuesday, January 5th, 2010
Greendot recently asked:


Prepaid cards are a type debit cards that draws down a balance that is already loaded or deposited on the card. Prepaid cards are commonly called prepaid credit cards. There are different types of Prepaid cards based on the function they serve including gift cards, travel cards, payroll cards, and general purpose prepaid cards. Unlike debit cards, Prepaid cards typically do not require opening of checking account at a bank. The companies that issued the card and allow customer to access their funds by using it to purchase goods and services wherever a visa or MasterCard debit is accepted maintains the card balances. Cardholders can also use the Prepaid Card like a check card by withdrawing cash from their balance at ATM locations worldwide. These cards are designed for long term use and generally FDIC (Federal Deposit Insurance Corporation) insured, which means that if the issue of the card has financial troubles you can get your money back.

· These Signatures based prepaid cards will allow reloading to the card. Like the other prepaid cards, it can be connected to a bank account, and in some cases may allow you to have your payroll check directly deposited into the account.

There are three ways to use a Prepaid Card

· Use it with Signature Purchase: - A prepaid card can be used anywhere Visa or MasterCard is accepted. (E.g. restaurants, movie theaters, clothing stores, drugstores, supermarkets, etc). Like a regular credit card, cardholders simply sign the receipt after swiping the card

There are numerous benefits from Prepaid cards. These include:

· Accessibility – There are no credit checks and no Check System checks to get a Prepaid Card. and can get transaction history. Anyone can get a Prepaid card. Certain state and federal laws does require government issued ID to get a Prepaid Card.

·Easy Reloading. It’s easy to add more money to the card so the card can be used over and over again. Prepaid cards allow direct deposit of Payroll Checks, Commission Checks, Expense Reimbursement, Government Checks (Social Security, IRS, Medicare, Unemployment, Disability, Welfare, Military, etc.). Save on check cashing fee. Save a trip to cash to the check. And get paycheck even if not in the office. Certain Prepaid Cards allow you to add more money at drug stores and grocery stores so you can have 24/7 accesses to your money.

·Safety - If you are buying online or on the phone and your card is used fraudulently you can get your money back. If you lost your card, Visa and MasterCard has lost/stolen protection.

·Control - Prepaid cards are an ideal way to control the spending of children and employees as it gives transaction history and don’t let people spend more than what they have on the card.

·No debt risk: - With a prepaid card there is no chance of spending too much as it is limited to the amount put on the card. There is usually no way to overdraft a prepaid card like a bank account thus customers can avoid overdraft fees that can go up to $40 per overdraft.

·The card for travel: - As well as being able to top up the card, depending on the specific provider, it can be used in ATMs worldwide. If lost, a new prepaid can be issued from the card provider. Some providers even offer 0% foreign exchange fees.

Prepaid Cards are suitable for those who do not have a bank account and who regularly face inconvenience in cashing their paycheck and making routine payments like for utilities and phone bills. This Card is not a credit card. It is prepaid. Because no credit is granted and no payments are required, this Card does not build credit history.



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What Is A Prepaid Credit Card?

Sunday, January 3rd, 2010
Ken Charnly recently asked:


In this high-tech era of computers and machines, the purchasing power of people is mostly based on credit. Nowadays, credit cards are almost indispensable in almost any business transaction. For one, nobody can purchase anything online without a credit card.

People who have a poor credit history though, will have a hard time getting or renewing their credit cards. This is where prepaid credit becomes useful.

There are lenders that offer prepaid MasterCards and/or prepaid Visa Cards. Both these cards can be used like a regular credit card. It is even hard to distinguish which card is prepaid or not, by simply looking at it or even using it.

This is basically how prepaid credit cards work. When an account is opened, the card should be “pre-loaded” with cash up-front. This is like paying for a pre-paid calling card.

Prepaid MasterCards or Visas can be used anywhere as long as these cards are accepted.

The prepaid credit card advantage:

1.      Prepaid credit card can be easily obtained. It can be purchased online or in local retail stores. It does not require any credit check or proof of income.

The only thing to do is to fill out an application, pay a small fee for setting-up the account and load the card with cash. The amount of cash loaded will be the “credit limit”

2. No interest charges.

When a prepaid MasterCard or prepaid Visa is used, there is no interest charge unlike the regular credit card. The reason for this is that the money used is the owner’s actual money therefore no interest is needed.

3. Prepaid credit cards are free from financial or credit problems.

4. Prepaid cards can be used almost anywhere. Prepaid MasterCards and Visa cards are almost accepted anywhere in the world.

Disadvantages of Prepaid Credit Cards:

1.      Usually a set-up fee of 5 to 50 dollars is needed when an account is opened. Then another fee of $5 or more is paid every time more money is loaded onto the card.

Regular credit cards usually do not charge a set-up fee or annual fees.

2.      Cash up front is needed before any purchase could be made with the prepaid card.

This could be an advantage since compulsive spending can be avoided.

3.      There are some prepaid credit cards that cannot be used to pay regular payments such as monthly electric consumption or online services.

The Conclusion:

The prepaid credit card is a definite help for people who have past credit problems. It is just a matter of choosing the right prepaid credit card that suits ones’ needs.

 





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