Cash Back Card information Blog

Credit cards have greatly enhanced middle class America’s access to credit over the past 20 years, increasing the standard of living for millions of families. And yet, credit card usage is often demonized in the popular press. While irresponsible use of credit has led to the financial ruin of many lives, the fact is that it is virtually impossible to function in modern society without at least one credit card, and when used responsibly, credit cards can have a tremendously positive impact on our lives. This is why a solid understanding of credit card basics is so important.

What is a Credit Card?

A credit card is a revolving credit account for which a plastic card is issued. The reason the account is considered to be “revolving” is that your credit limit rolls over from month to month. For example, when you are accepted for a credit card, you are given an initial credit limit – $500, for example. If after using the card for one month you had charged $200 worth of purchases on it, you would be sent a bill for $200 and your “available credit” would be $300. You could choose to pay the full $200, or pay less than the full amount. If you elected to pay less than the full amount, then interest would be charged on your outstanding balance.

Finance Charges

Say for example you paid $50 of your $200 outstanding balance. Once your payment was received, your new available credit limit would be $350, less finance charges. The “finance charges” would be based on the annual interest rate of your unpaid balance. If your annual interest rate were 19 percent, for example, then the monthly equivalent of a 19 percent annual rate would be applied to the outstanding balance. In this case, your outstanding balance was $150, 19 percent of which is $28.50. This doesn’t mean you have a finance charge of $28.50 – that would be if 19 percent monthly interest were charged. To find the monthly equivalent of 19 percent annual interest, divide by 12, which gives the result of $2.38.

It’s important to note that you can avoid finance charges altogether if you pay your balance each month, in full. This is the equivalent of giving yourself an interest free loan every month. For example, if you charged $250 on the 28th, and you didn’t receive your next bill until the 15th of the following month, no interest would be applied. In this case, the due date of your next bill might not be for another 10 to 20 days, allowing you to use your credit card company’s money, interest free.

What to Consider When Applying for a Credit Card

First and foremost, you should consider the annual fee. If you plan to pay off your balance in full each month, then the interest rate is less important, but the annual fee is charged no matter what. Many credit cards have no annual fees, however, most “starter cards” (for people with little or no credit) have annual fees ranging from $19 to more than $50.

Secondarily, you should consider the interest rate. Many cards offer low introductory rates that become much higher after three months to a year. Again, this is of little relevance if you plan to pay off your balance each month, however, you may find it necessary to carry a balance from time to time. If you can qualify for a low rate, then carrying a balance can actually be a smart financial decision.

Third, you should make sure you’re fully aware of the various fees and charges associated with the card. For example, what is the charge for exceeding your credit limit? What fees are applied to your account if your payment is late or missed? Nobody ever plans on incurring these charges, but things happen.

Credit card ownership can open up many doors, but many people have seen their lives ruined by making poor credit choices. In order to be an intelligent consumer, you must be an informed consumer. Stay tuned for more information on responsible credit usage, as this series of articles will navigate you through the basics of credit card ownership and into advanced strategies for getting the most out of your credit.

Stay safe.

Sincerely,

James

http://www.CC-YES.com

An international debit card is a globally recognized plastic card that provides an alterative payment method to cash and checks in making purchases. Functionally, a debit card can be called an electronic check, as funds are directly debited from the holder’s related bank account. The use of international debit cards have gained great popularity over almost all countries of the world and in many of these countries have almost replaced the check and even cash on some instances for voluminous trade transactions.

International debit cards are also known as convenient ways of instant cash withdrawal, serving as the ATM card for withdrawing cash and at the same time a check guarantee card. Many merchants now offer cashback or cashout facilities to customers where the customer can withdraw cash together with their purchase through his debit card. International debit cards are now also means of protecting oneself from frozen bank accounts as offshore bank accounts under Panaman Laws are protected from the legislation of one’s state.

Credit or Debit?

For card holders, the difference between a debit card and a credit card is that the debit card deducts the balance from the holder’s deposit account while the credit card allows the consumer to spend on credit to the issuing bank. Stated differently, the debit card spends the money the holder has while the credit card spends money the issuing bank has. There are also combined credit+debit cards in which a debit card linked directly to a checking account serves as a debit card and credit card at the same time. The holder has the option whether the purchase he makes will be under a debit card or credit card system. If the holder uses it as a debit card the cost of purchase will be deducted from his bank account while if he opts to use it as a credit card the cost will be debited on the credit balance.

The debit networks usually require that a personal identification number be supplied while the credit networks typically require that purchases be made in person and often allow cards to be charged with only a signature, and/or picture ID.

An example of the front of a typical debit card:

1. Issuing bank logo

2. EMV chip

3. Hologram

4. Card number

5. Card brand logo

6. Expiry date

7. Cardholder’s name

An example of the reverse side of a typical debit card:

1. Magnetic stripe

2. Signature strip

3. Card Security Code

Although many international debit cards are of the Visa or MasterCard brand, there are many other types of debit card, each accepted only within a particular country or region, for example Maestro and Solo in the United Kingdom, Interac in Canada, Carte Bleue in France, Laser in Ireland, EC Electronic Cash in Germany and EFTPOS cards in Australia and New Zealand. The need for cross-border compatibility and the advent of the euro recently led to many of these card networks (such as Switzerland’s “EC direkt”, Austria’s “Bankomatkasse” and Switch in the United Kingdom) being re-branded with the internationally recognized Maestro logo, which is part of the MasterCard brand. Some debit cards are dual branded with the logo of the (former) national card as well as Maestro (e.g. EC cards in Germany, Laser cards in Ireland, Switch and Solo in the UK, Pinpas cards in the Netherlands, Bancontact cards in Belgium, etc.). The use of a debit card system allows operators to package their product more effectively while monitoring customer spending. An example of one of these systems is ECS by Embed International.

2-GetCash offers the same reliable and convenient international debit card without hidden, extra, annual, cash conversion or cash transaction charges. The only time you will be paying is when you buy the card and have your offshore bank account set up.

How Lenders Operate – And How They’ll Make a Tidy Fortune from the Unknowing

Credit card companies might seem like immensely clever, money making enterprises that exploit every loophole to maximize the interest payments – and profits – they are taking from you every month. Nothing, however, could be further from the truth. These financial institutions operate on simple principles and exploit the fact that consumer demand and their customer’s naivety will keep business turning endlessly over.

It doesn’t have to be that way, however. Know what to look out for and you can cut your overheads and stop these businesses from making a dime more than they have to.

Lenders exploit the fact that people use one card for many purchases. For example, if you use a balance transfer special card rate for spending in the supermarket or mall, they deliberately structure repayments in such a way that you’ll pay a fortune on the entire balance. To properly play your plastic you need to deploy an army of cards as weapons in the war against consumer debt. Using the right tool for the right job will smash your credit card costs.

If you already have hefty credit card bills, transferring the balance will usually substantially cut your interest costs. What this means is that your new provider pays off the debts on your current credit or store cards for you.

You then owe the money at a (hopefully) lower interest rate for a fixed – or sometimes indefinite – period of time. The key to making this work is by not using this card for spending. What this can mean is that credit card providers will then revert the interest rate for the WHOLE of the balance up to a higher rate.

Consumers who spend on a card, but don’t clear the debt each month should focus on minimizing the interest cost. Search the market for the lowest purchase rate available, but also keep in mind the day when you’ll clear the balance in full (e.g. Bonus time; when your bonds mature, etc.) and don’t let the balance spiral beyond your means.

If you pay off your balance in full each month then the interest rate is irrelevant. Focus instead on the gains available from using the card for spending. The key to this is the reward scheme offered. Many credit cards offer points schemes or even cash-back. There’s a huge array of different schemes, but by picking the right one you can benefit substantially. It’s often simpler just to go for a Cashback card, where the benefits are more apparent, but sometimes reward schemes offer great inducements – particularly when they offer double points to new customers, and so on.

If you’re one of those lucky people to be debt free you can take REVENGE on the credit card companies and make free dollars from their products. The schemes are simple to manipulate. If they lend you money at 0%, you can bank the cash and earn interest on it. There are a variety of mechanisms that allow you to get money into your savings account quickly and easily. Once its in, just let it sit there for the duration of the interest free period and pay it back in full when it’s at an end. Substantial amounts can be made from this, but it’s a strategy that should only ever be used by consumers with a good credit history, no debts and are prepared to make a little effort.

Store cards should be avoided under almost all circumstances. They charge the highest rates of interest, and by being offered at a department store counter are an easy lure into a mine of consumer debt. You should never use them to borrow money on, and if they offer any perks and benefits make sure they work for you. For instance, some offer a 10 per cent discount on first purchases. If they do so – make sure you take them up on it when buying something big, thus maximizing your saving. As a rule, however, avoid these expensive options like a plague. Stick to a credit card that charges low interest on purchases and you’ll be fine.

Some people, however, simply can’t get new credit cards. Sometimes there are quite valid reasons for this, but on other occasions it can be due to incorrect information held on your credit reference file. Apply to a credit reference company, like Experian, and check that there are no erroneous black marks on your record. Beyond that, there are a variety of simple strategies you can apply that will boost your credit score and help enable you to get the best credit cards for your needs. In a position of strength, you can then make credit cards work for you.