Posted on
September 10, 2009
at
3:14 am
Since the credit card is part of the American way of life - let's try to get to know it a little bit more. This thread is called Everything you need to know about credit cards and I'll start the ball rolling:What is a credit card? A credit card is part small plastic card issued by a bank with a predetermined amount (credit limit) that's always available until it runs out.
Posted on
September 10, 2009
at
3:24 am
My contribution to the everything you need to know about credit cards topic:Types of cards:Bank cards - VISA, Master Card, Discover, etc.Petroleum Cards- SUN Oil, Exxon, etc.Travel and Entertainment (T&E) cards - American Express, Diners' Club, Carte Blanche)Private Label cards - department store cards, telephone cards, etc.
Posted on
September 10, 2009
at
3:39 am
Everything you need to know about credit cards: How credit card companies bill their clients:Credit cards - the cardholder pays according to the agreed upon terms and conditions in a contract. There are penalties and charges for its violation.Just to add to the type of cards, there's also the charge card and the debit card. Debit cards are not exactly billed, the amount used is taken from the consumer's account.
Posted on
September 10, 2009
at
3:58 am
Everything you need to know about credit cards: How do credit card issuers make money?They make money from the regular fees and interest paid on outstanding balances. Many consumers hate the interest part as it keeps on adding without out them getting to the principle amount. Lowering the interest rates (with the help of a credit counseling agency) is the main goal of consumers who are having a hard time keeping up with the minimum monthly payments-
Posted on
September 10, 2009
at
4:03 am
Everything you need to know about credit cards: The account holderThe one who signed the terms and conditions in the application. The one with the sole responsibility for that account - that when he/she dies, the family is not going to be held liable for his/her debt, but the estate. Unless there's a joint holder.
Posted on
September 10, 2009
at
4:15 am
Everything you need to know about credit cards: What's the difference between a secured credit card and an unsecured credit card?
Posted on
September 10, 2009
at
4:28 am
A secured credit card requires the consumer to deposit an amount that's equivalent to the credit limit desired. If the consumer fails to make payments on time, that money will be used to satisfy the credit card debt.An unsecured credit card is like a pre-approved loan and for it to be approved, the consumer must have a good credit history and ability to repay. The credit limit is based on performance.
Posted on
September 10, 2009
at
4:29 am
Everything you need to know about credit cards: When does credit card become a problem?
Posted on
September 10, 2009
at
4:47 am
It's when the consumer charges more than what his/her regular monthly payments can cover. When a consumer carries over balances every month - those balances accrue significant interest rates. Another way that interest rates affect the consumer is when he/she misses payments on an already delinquent account.
Posted on
September 10, 2009
at
4:49 am
I agree, that is also the reason why consumers with debt amounts lower than $10,000 seek the help of a credit counseling agency. The idea is to negotiate the interest rates so the consumer could get to the principle amount and therefore pay the debts much faster. The only problem is that, many creditors don't want to work with credit counseling agencies.
