|
|
|
A WiseWeb Publication |
|
Copyright 2005 |
|
Link of the Week |
|
Credit4You |
|
About Credit |
|
Credit Reports |
|
Credit Cards |
|
Western Union |
|
Banking/Stocks |
|
Buy Autos |
|
Apply for Loans |
|
Insurance Needs |
|
Top Picks |
|
A Wiseweb |
|
Publication |
|
Credit Cards |
|
There are basically three types of “credit” cards. The first are “unsecured” credit or charge cards. On these cards your credit limit is based on your credit worthiness. These accounts are for those of us with established credit. When applying, make sure you compare interest rates, annual fees and usage fees. They vary greatly from promotion to promotion. |
|
The second are “secured” charge cards. With them your credit limit is equal to all or part of the funds that you place in deposit with the card issuer. They use your deposit as collateral. These types of accounts report to the credit bureaus. In time, with a record of paying on time, they will increase your credit limit, and in most cases become “unsecured” accounts. These card programs are excellent for establishing or rebuilding credit. |
|
The third type, which are fairly new, are “prepaid” cards. They work like a bank debit card, except their fees for transactions are usually higher than a bank would charge. With these you have a zero credit limit. You can only spend what you have in your account. These prepaid cards are an acceptable alternative for those who can’t open a bank account, but still want the convenience of having a card for such things as online purchases. |
|
We recommend that everyone have at least one type of “charge card.” Despite the talk about “identity theft’ that we hear so much about these days, the use of credit or debit cards is much safer and more convenient than dealing only in cash. Bear this in mind: |
|
* Always protect and keep secret your PINs. |
|
* Check your credit reports routinely to insure that your “identity” hasn’t been stolen. |
|
* Don’t provide personal information unless you KNOW it is going to a secure site. Make sure the businesses that you are giving it to are well known and respected. |
|
* Use your credit responsibly. It will only improve, and, in this age your credit is probably your most valuable asset. |
|
* If you think you have bad credit, you probably do. Take steps to improve it today. |
|
Click here to find a credit card that’s right for you! |
