Credit card security is a big issue in the world today. We hear of a number of frauds taking place involving huge sums of money being swiped away by technology thieves and it is virtually impossible to apprehend the miscreants. Online safety is a huge issue today. Apart from shopping physically at various establishments and stores, you can also enjoy a variety of online shopping from across the world. Whether it is clothes, books, music, furniture, jewels, or even tickets, they can all be bought at the mere click of a button on your computer even as you sit in the comfort of your home.
But how secure is this transaction? Skepticism is keeping a vast majority away from making purchases online. That is because of the security issue of giving out your credit card number on the Internet. This has dampened the spirit of all the e-retailers and they now even offer a phone number so that you can call in with your order. Hackers are a huge threat to online shopping and we find security features often being tampered with in the credit card frauds.
However, the flip side to the deal is that in case on an online credit card scam, you need to pay only a maximum of $50 whatever is the amount stolen from your credit card transaction. There are a number of ways being adopted to prevent miscreants from seeing your details and misusing them. We even have a Direct Marketing Association to track consumers who would rather not encourage soliciting for various products and serviced by mail or even by phone. You can ensure total privacy and protection as soon as you receive your card.
There are several companies that will remove your name from the mailing list if you write to them with your name, mailing address and social security number. In fact in the United States we even have reporting bureaus that will connect with bureaus across the nation and ensure that you do not receive any junk mail and unnecessary soliciting.
You could even get in touch with your credit card companies and request them to remove you from their mailing list. All this will enable you to enjoy a secure credit facility with a scam free shopping environment.
Tuesday, July 2, 2013
Can I Use My Credit Card Abroad?
Can I use my credit card abroad? You know that credit card are vastly used across the United States and nearly all merchant establishments accept credit cards. However, if you are traveling abroad, you need to check out the place before going. You might be in for some surprises.
In many countries the Visa and MasterCard networks have merged so you can use either one of the cards in those countries. However you may not be able to enjoy the same service when you want to withdraw currency from the ATM. You might be able to withdraw on the Visa but not necessarily on the MasterCard. So you might want to carry both your cards while traveling.
There are certain countries that accept both the cards but they have not merged services no you will be required to use both as the case may be, according to the establishment. The Visa and MasterCard are by far the best accepted throughout the world and they are best used while traveling abroad. AmEx and Diners Club are popular in the United States but not so in several countries elsewhere.
Ensure that you check out with your contacts in that country as to what the situation is or you could even go online and garner all the information you need on the credit card acceptance across the world. Beware, there are even some countries that do not accept any credit cards! Yes indeed. So the only way out there would perhaps be to carry cash or travelers checks, if that is accepted that is. However, credit cards are used in most parts of the world today and those places where you cannot use credit cards are not so many.
There are certain countries, which are notorious for credit card fraud. So you have to exercise extreme caution while traveling to those countries and you must try to avoid credit card payments as far as possible. You are bound to get tricked into parting with several dollars if you are not careful or even if your credit card company is not watchful. You might find yourself saddled with a bill that never saw you making the purchase.
When you are traveling abroad, always leave the credit card numbers and a photocopy of the cards along with their phone numbers at home. This will enable you to lodge a complaint in case of fraud or a theft of your cards while you are traveling. It is a precaution well worth taking.
In many countries the Visa and MasterCard networks have merged so you can use either one of the cards in those countries. However you may not be able to enjoy the same service when you want to withdraw currency from the ATM. You might be able to withdraw on the Visa but not necessarily on the MasterCard. So you might want to carry both your cards while traveling.
There are certain countries that accept both the cards but they have not merged services no you will be required to use both as the case may be, according to the establishment. The Visa and MasterCard are by far the best accepted throughout the world and they are best used while traveling abroad. AmEx and Diners Club are popular in the United States but not so in several countries elsewhere.
Ensure that you check out with your contacts in that country as to what the situation is or you could even go online and garner all the information you need on the credit card acceptance across the world. Beware, there are even some countries that do not accept any credit cards! Yes indeed. So the only way out there would perhaps be to carry cash or travelers checks, if that is accepted that is. However, credit cards are used in most parts of the world today and those places where you cannot use credit cards are not so many.
There are certain countries, which are notorious for credit card fraud. So you have to exercise extreme caution while traveling to those countries and you must try to avoid credit card payments as far as possible. You are bound to get tricked into parting with several dollars if you are not careful or even if your credit card company is not watchful. You might find yourself saddled with a bill that never saw you making the purchase.
When you are traveling abroad, always leave the credit card numbers and a photocopy of the cards along with their phone numbers at home. This will enable you to lodge a complaint in case of fraud or a theft of your cards while you are traveling. It is a precaution well worth taking.
How to Decide on the Best Rewards Credit Card
The collective battle cry in the market to 'Serve the Customer' in times of intense competition can be quite overwhelming. Subliminal persuasion by the companies and the myriad rewards credit cards available to the consumers can make the choice of one an onerous task. Essentially, the rewards credit cards attracts consumers motivates spending by providing loyalty rewards. To find the best rewards card from those on offer, you need to introspect on your lifestyle, spending habits and the various benefits promised by the companies offering rewards credit cards.
Lifestyle
Lifestyle is a major determinant in choosing the best rewards credit card. It is better to select a rewards credit card, which rewards you for the purchases you make most frequently, so that you can easily accumulate bonus points. Also, make sure that the rewards offered are the ones you are interested in and not something of any use for you.
Spending Habits
Consider your spending habits before deciding on the best rewards credit card. Typically, the more you spend in a year, more are the reward points you earn. Most rewards cards have a monetary limit beyond which you cannot avail of rewards. The solution, in such an eventuality, may be to find a new rewards card. Other rewards cards have an expiration date, so that if you do not earn enough points in this time frame, then no reward points are earned. Do consider the expiration date and the trade-off points, when deciding on your card. Also, rewards credit cards carry a higher rate of interest than traditional cards. It is imperative that you pay the balance due each month in due time to avoid paying higher finance charges. If you do not intend to do so, select a rewards card with low interest rates.
Benefits Of The Rewards Card
In addition to the rewards programs, a good rewards credit card also offers benefits such as, purchase protection, extended warranty coverage, travel insurance, auto rental insurance, lost luggage insurance, gift certificates or discount coupons, and even discounts in airline tickets. It pays to take these into account in addition to your lifestyle and spending habits while deciding on the rewards card best suited for you.
Lifestyle
Lifestyle is a major determinant in choosing the best rewards credit card. It is better to select a rewards credit card, which rewards you for the purchases you make most frequently, so that you can easily accumulate bonus points. Also, make sure that the rewards offered are the ones you are interested in and not something of any use for you.
Spending Habits
Consider your spending habits before deciding on the best rewards credit card. Typically, the more you spend in a year, more are the reward points you earn. Most rewards cards have a monetary limit beyond which you cannot avail of rewards. The solution, in such an eventuality, may be to find a new rewards card. Other rewards cards have an expiration date, so that if you do not earn enough points in this time frame, then no reward points are earned. Do consider the expiration date and the trade-off points, when deciding on your card. Also, rewards credit cards carry a higher rate of interest than traditional cards. It is imperative that you pay the balance due each month in due time to avoid paying higher finance charges. If you do not intend to do so, select a rewards card with low interest rates.
Benefits Of The Rewards Card
In addition to the rewards programs, a good rewards credit card also offers benefits such as, purchase protection, extended warranty coverage, travel insurance, auto rental insurance, lost luggage insurance, gift certificates or discount coupons, and even discounts in airline tickets. It pays to take these into account in addition to your lifestyle and spending habits while deciding on the rewards card best suited for you.
How To Consolidate Credit Card Debt With Bad Credit
There are a lot of advertisements for credit card consolidation, but the biggest problem is that your credit must be good in order to get approved. Unfortunately, most people that have struggled to make the minimum payment on their card each month, have also occasionally made a late payment, tainting their credit in the process. What is a person with bad credit to do if they are interested in consolidating their credit card debt into one low interest, easy to pay loan?
Use the Equity in Your Home
One of the easiest ways to secure a credit card consolidation loan when you have less than perfect credit is by putting up the equity in your home as collateral. If your home's value has increased since you purchased it, you can borrow money against that amount. A lender isn't as concerned with your credit when you take out a home equity loan to pay off your debts. For the lender the risk is minimal. You don't want to lose your house, so chances are that you are going to do everything in your power to see that the home equity loan payment is your first budget priority. If for some reason you can't pay the loan back, the lender doesn't lose out, because the company can recoup its investment by acquiring your house.
Expect Higher Rates
If you have bad credit and you are not a homeowner, there are still ways for you to get a consolidation loan. However, you have to expect a higher rate of interest than you would have if you had the collateral of a home or better credit. Doing your research and comparing debt consolidation loan companies will ensure you get the lowest rate possible for your credit situation.
Use a Credit Management Service
Credit management services that negotiate with credit card companies to lower your debt often have programs in which they pay your monthly payments to all of the companies that you owe, using money from the one check that you write to them each week. While it isn't exactly a consolidation loan, because your creditors aren't paid off all at once but instead receive monthly payments, it functions the same way that a consolidation loan does. It lowers your interest and allows you to make one monthly payment instead of several.
Use the Equity in Your Home
One of the easiest ways to secure a credit card consolidation loan when you have less than perfect credit is by putting up the equity in your home as collateral. If your home's value has increased since you purchased it, you can borrow money against that amount. A lender isn't as concerned with your credit when you take out a home equity loan to pay off your debts. For the lender the risk is minimal. You don't want to lose your house, so chances are that you are going to do everything in your power to see that the home equity loan payment is your first budget priority. If for some reason you can't pay the loan back, the lender doesn't lose out, because the company can recoup its investment by acquiring your house.
Expect Higher Rates
If you have bad credit and you are not a homeowner, there are still ways for you to get a consolidation loan. However, you have to expect a higher rate of interest than you would have if you had the collateral of a home or better credit. Doing your research and comparing debt consolidation loan companies will ensure you get the lowest rate possible for your credit situation.
Use a Credit Management Service
Credit management services that negotiate with credit card companies to lower your debt often have programs in which they pay your monthly payments to all of the companies that you owe, using money from the one check that you write to them each week. While it isn't exactly a consolidation loan, because your creditors aren't paid off all at once but instead receive monthly payments, it functions the same way that a consolidation loan does. It lowers your interest and allows you to make one monthly payment instead of several.
Credit Card Danger
What I call the, "I want it NOW" syndrome, is something that we expect from children. The problem being that many adults never mature enough to grow out of this syndrome. People should get credit counseling at a very young age - it should be a required curriculum in our school system.
There are many theories as to why people feel such a strong need to go deeply into debt in order to fill their lives with material things. Credit cards are a required necessity in today's modern world; however without responsible use of these credit cards, a consumer can soon find themselves choking in debt. Consumers find themselves in a vicious cycle: first they start by only making the minimum payment required (which often does not even cover the accumulating interest), next the consumer finds it necessary to make a payment late, or skip a payment. This strategy causes a boomerang effect as it usually triggers a huge jump in the interest rate you are paying. Credit card companies are really smiling when you miss a payment, the late fees seem to be getting bigger and bigger, the fee alone may be $35, $50, or even $75 or more - that fee is pure profit for the credit card company. To add insult to injury, on top of that fee, you will find your interest rate has doubled or tripled.
Most credit card owners probably get several letters in the mail offering them a cash advance "to use in any way you want", it usually mentions some dream vacation, or other expensive item that we all dream about. The letter will mention an extremely attractive interest rate, sometimes even zero interest for a specified period of time. How many people read the find print on the back of these offers - where it explains that if you violate any terms of the agreement - your interest rate will soar to the highest allowable by law.
The stress of dealing with debt collectors, and other consequences related to poor credit can take its toll on your family life and can lead to more serious issues like divorce and many turn to drugs or alcohol to ease the stress.
Consumers often need credit counseling and should reach out to professionals to help them improve their credit rating and repair bad credit. Credit card interest rates along with late fee penalties can get out of control; thereby creating a deadly trap where making even the minimum payments won't be enough to get your head above the water. An experienced consumer credit counselor can help you find a solution, and perhaps reduce your debt significantly. Consumer credit counseling services can help negotiate reduced payment amounts with lower interest and monthly payments by standing behind you and reinforcing your commitment to paying off your debts.
The first step is to recognize that you have a problem. The next step is to seek out an experienced professional credit counselor. Check out several potential credit counselors. Get references and ask for recommendations from friends. Choose your credit counselor wisely and ALWAYS read the fine print. Don't be embarrassed to seek help; you are not the only person who has found themselves deep in debt, the sooner you acknowledge and deal with the problem the sooner you can move on with your life
There are many theories as to why people feel such a strong need to go deeply into debt in order to fill their lives with material things. Credit cards are a required necessity in today's modern world; however without responsible use of these credit cards, a consumer can soon find themselves choking in debt. Consumers find themselves in a vicious cycle: first they start by only making the minimum payment required (which often does not even cover the accumulating interest), next the consumer finds it necessary to make a payment late, or skip a payment. This strategy causes a boomerang effect as it usually triggers a huge jump in the interest rate you are paying. Credit card companies are really smiling when you miss a payment, the late fees seem to be getting bigger and bigger, the fee alone may be $35, $50, or even $75 or more - that fee is pure profit for the credit card company. To add insult to injury, on top of that fee, you will find your interest rate has doubled or tripled.
Most credit card owners probably get several letters in the mail offering them a cash advance "to use in any way you want", it usually mentions some dream vacation, or other expensive item that we all dream about. The letter will mention an extremely attractive interest rate, sometimes even zero interest for a specified period of time. How many people read the find print on the back of these offers - where it explains that if you violate any terms of the agreement - your interest rate will soar to the highest allowable by law.
The stress of dealing with debt collectors, and other consequences related to poor credit can take its toll on your family life and can lead to more serious issues like divorce and many turn to drugs or alcohol to ease the stress.
Consumers often need credit counseling and should reach out to professionals to help them improve their credit rating and repair bad credit. Credit card interest rates along with late fee penalties can get out of control; thereby creating a deadly trap where making even the minimum payments won't be enough to get your head above the water. An experienced consumer credit counselor can help you find a solution, and perhaps reduce your debt significantly. Consumer credit counseling services can help negotiate reduced payment amounts with lower interest and monthly payments by standing behind you and reinforcing your commitment to paying off your debts.
The first step is to recognize that you have a problem. The next step is to seek out an experienced professional credit counselor. Check out several potential credit counselors. Get references and ask for recommendations from friends. Choose your credit counselor wisely and ALWAYS read the fine print. Don't be embarrassed to seek help; you are not the only person who has found themselves deep in debt, the sooner you acknowledge and deal with the problem the sooner you can move on with your life
Choosing Your Next Credit Card
Many people who were once wary about using credit cards are now rushing to get credit from their company of choice. One reason for this is that many credit card companies nowadays are willing to give credit cards to almost everybody, even to people with bad credit. The companies are reasoning that they will make money from people who do not pay their bills on time as well as more responsible consumers, since the former tend to pay higher interest rates and late fees. There are very few people who simply do not pay off their credit cards at all and attempt to disappear. Therefore, there is little risk of extending credit to people who will absolutely not pay off their credit cards.
Therefore, one should be cautious before obtaining credit cards. It might be tempting to sign up if there is a claim of absolutely no rejection, but if you do not use the card or cannot pay off your bills, your credit cards might end up costing you a fortune in the long run. It is a good idea to be selective concerning which credit cards you wish to obtain and to think carefully before signing up.
There are many different types of credit cards on the market these days, including:
- Cards for those with good credit
- Cards for those with bad credit
- Smart cards
- Reward cards
- Credit cards for minors
Significant benefits are given to those who have good credit. Many companies offer premium gold or platinum credit cards with no annual fees, 0% APR and a higher credit limit. This means that you can make more purchases with few or no restrictions. Therefore, it is important to keep your gold and platinum credit cards under close watch, since a thief can make significant charges to your account.
Many more credit card companies are offering credit cards to people with bad credit. They are willing to take this risk in exchange for an annual fee and a low APR. Many companies will check employment history, but many more nowadays will rely on the fee rather than past records. Instead of avoiding credit cards completely, it is a good idea for those with a flawed credit history to apply for these kinds of credit cards, to make modest, regular purchases with their cards, and to make payments on time. This will help repair their credit, which is a gradual process.
With identity theft occurring more frequently, smart credit cards are becoming more popular among security conscious consumers. Smart cards are embedded with microprocessor chips, which hold more information than traditional magnetic strips. These smart chips encrypt information to prevent cloning and fraud. If your chip is disabled, the company is automatically notified.
Reward cards are a popular way of earning air miles, hotel points or free gas as you use your credit card in the supermarket or the shopping mall. Many consumers enjoy accumulating points for these items as they make their ordinary purchases. It usually takes some time before you will be able to receive free items, and it is not such a good idea to make extraneous purchases just to earn more points, but many feel that the regular shopping they do will eventually pay off in the form of rewards.
Many parents are understandably leery of trusting their teenagers with credit cards. However, they would like their kids to learn early on about how to use credit responsibly, pay bills on time. A good compromise solution is to get a special credit card for your teenager that can be monitored. These credit cards have limits on them stipulated by the parents and allow parents to be informed of each transaction. Therefore, it is impossible for a teenager to spend more money than the parents will allow.
Therefore, one should be cautious before obtaining credit cards. It might be tempting to sign up if there is a claim of absolutely no rejection, but if you do not use the card or cannot pay off your bills, your credit cards might end up costing you a fortune in the long run. It is a good idea to be selective concerning which credit cards you wish to obtain and to think carefully before signing up.
There are many different types of credit cards on the market these days, including:
- Cards for those with good credit
- Cards for those with bad credit
- Smart cards
- Reward cards
- Credit cards for minors
Significant benefits are given to those who have good credit. Many companies offer premium gold or platinum credit cards with no annual fees, 0% APR and a higher credit limit. This means that you can make more purchases with few or no restrictions. Therefore, it is important to keep your gold and platinum credit cards under close watch, since a thief can make significant charges to your account.
Many more credit card companies are offering credit cards to people with bad credit. They are willing to take this risk in exchange for an annual fee and a low APR. Many companies will check employment history, but many more nowadays will rely on the fee rather than past records. Instead of avoiding credit cards completely, it is a good idea for those with a flawed credit history to apply for these kinds of credit cards, to make modest, regular purchases with their cards, and to make payments on time. This will help repair their credit, which is a gradual process.
With identity theft occurring more frequently, smart credit cards are becoming more popular among security conscious consumers. Smart cards are embedded with microprocessor chips, which hold more information than traditional magnetic strips. These smart chips encrypt information to prevent cloning and fraud. If your chip is disabled, the company is automatically notified.
Reward cards are a popular way of earning air miles, hotel points or free gas as you use your credit card in the supermarket or the shopping mall. Many consumers enjoy accumulating points for these items as they make their ordinary purchases. It usually takes some time before you will be able to receive free items, and it is not such a good idea to make extraneous purchases just to earn more points, but many feel that the regular shopping they do will eventually pay off in the form of rewards.
Many parents are understandably leery of trusting their teenagers with credit cards. However, they would like their kids to learn early on about how to use credit responsibly, pay bills on time. A good compromise solution is to get a special credit card for your teenager that can be monitored. These credit cards have limits on them stipulated by the parents and allow parents to be informed of each transaction. Therefore, it is impossible for a teenager to spend more money than the parents will allow.
Choosing Your Credit Card Based On APR
If you expect to always pay your monthly bill in full--and other features such as frequent flyer miles don't interest you--your best choice may be a card that has no annual fee and offers a longer grace period.
If you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).
If you expect to use your card to get cash advances, you'll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards charge a higher APR for cash advances than for purchases.
What are the APRs?
The annual percentage rate--APR--is the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest rate as a yearly rate.
Multiple APRs
A single credit card may have several APRs:
One APR for purchases, another for cash advances, and yet another for balance transfers. The APRs for cash advances and balance transfers often are higher than the APR for purchases (for example, 14% for purchases, 18% for cash advances, and 19% for balance transfers).
Tiered APRs. Different rates are applied to different levels of the outstanding balance (for example, 16% on balances of $1-$500 and 17% on balances above $500).
A penalty APR. The APR may increase if you are late in making payments. For example, your card agreement may say, "If your payment arrives more than ten days late two times within a six-month period, the penalty rate will apply."
An introductory APR. A different rate will apply after the introductory rate expires.
A delayed APR. A different rate will apply in the future. For example, a card may advertise that there is "no interest until next March." Look for the APR that will be in effect after March.
If you carry over a part of your balance from month to month, even a small difference in the APR can make a big difference in how much you will pay over a year.
Fixed vs. variable APR
Some credit cards are "fixed rate"--the APR doesn't change, or at least doesn't change often. Even the APR on a "fixed rate" credit card can change over time. However, the credit card company must tell you before increasing the fixed APR.
Other credit cards are "variable rate"--the APR changes from time to time. The rate is usually tied to another interest rate, such as the prime rate or the Treasury bill rate. If the other rate changes, the rate on your card may change, too. Look for information on the credit card application and in the credit card agreement to see how often your card's APR may change (the agreement is like a contract--it lists the terms and conditions for using your credit card).
If you sometimes carry over a balance from month to month, you may be more interested in a card that carries a lower interest rate (stated as an annual percentage rate, or APR).
If you expect to use your card to get cash advances, you'll want to look for a card that carries a lower APR and lower fees on cash advances. Some cards charge a higher APR for cash advances than for purchases.
What are the APRs?
The annual percentage rate--APR--is the way of stating the interest rate you will pay if you carry over a balance, take out a cash advance, or transfer a balance from another card. The APR states the interest rate as a yearly rate.
Multiple APRs
A single credit card may have several APRs:
One APR for purchases, another for cash advances, and yet another for balance transfers. The APRs for cash advances and balance transfers often are higher than the APR for purchases (for example, 14% for purchases, 18% for cash advances, and 19% for balance transfers).
Tiered APRs. Different rates are applied to different levels of the outstanding balance (for example, 16% on balances of $1-$500 and 17% on balances above $500).
A penalty APR. The APR may increase if you are late in making payments. For example, your card agreement may say, "If your payment arrives more than ten days late two times within a six-month period, the penalty rate will apply."
An introductory APR. A different rate will apply after the introductory rate expires.
A delayed APR. A different rate will apply in the future. For example, a card may advertise that there is "no interest until next March." Look for the APR that will be in effect after March.
If you carry over a part of your balance from month to month, even a small difference in the APR can make a big difference in how much you will pay over a year.
Fixed vs. variable APR
Some credit cards are "fixed rate"--the APR doesn't change, or at least doesn't change often. Even the APR on a "fixed rate" credit card can change over time. However, the credit card company must tell you before increasing the fixed APR.
Other credit cards are "variable rate"--the APR changes from time to time. The rate is usually tied to another interest rate, such as the prime rate or the Treasury bill rate. If the other rate changes, the rate on your card may change, too. Look for information on the credit card application and in the credit card agreement to see how often your card's APR may change (the agreement is like a contract--it lists the terms and conditions for using your credit card).
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