Credit Cards: Frequently Asked Questions

A secured card is a credit card that a cardholder "secures" with a deposit to ensure payment of the outstanding balance if the cardholder defaults on payment. Secured credit cards are targeted to customers with imperfect or limited credit histories who do not qualify for a traditional unsecured credit card. An unsecured credit card is not guaranteed by the pledge of any collateral. Most credit cards are unsecured debt and, therefore, have higher interest rates than other forms of lending such as mortgages that hold property as collateral.

Is Obtaining An Unsecured Credit Card Easy?

Criteria used to determine eligibility varies from card issuer to card issuer. Most banks and financial institutions will grant you credit if you meet the following requirements:

You must be a resident of the United States.

You must be at least 18 years of age.

You must make at least $95 a week.

You must have a valid Social Security number.

You must be employed for at least 6 months.

Are All Credit Cards The Same?

Credit terms vary among issuers. When shopping for a card, think about how you plan to use it. Do you expect to pay your bills in full each month or do you plan to pay off your purchases over time? Consider the annual fee, finance charges, interest computation method, whether or not there is a grace period for purchases and cash advances or balance transfers. It is also a good idea to look at the credit limit, how widely the card is accepted, additional services and features, and the Annual Percentage Rate (APR) and finance charges.

NOTE: Most credit card plans allow the issuer to "reprice" your current APR if the account falls into poor standing or becomes delinquent. Repricing is the act of increasing the APR.

What Is An Annual Fee?

Some issuers charge an annual membership fee or participation fees. These range from $25 to as much as $100.

"Gold" or "Platinum" cards sometimes reach as much as several hundred dollars. These fees may be charged whether or not you use the card.

Are There Transaction Fees And Other Charges?

A card may include other costs. Some issuers charge fees if you use the card to get a Cash Advances, make a late payment, or you exceed your Credit Limit. Often an issuer will charge a fee to transfer a balance from another creditor's account to their account. Fees are disclosed to you in your Terms and Conditions as well as in your Account Agreement. It is important that you read these documents in order to understand your responsibilities as an account holder.

What Is Credit Card Fraud?

One way to keep fraud under control is to closely monitor your credit report. A great way to do this is with a credit monitoring service. The cost of this service can range from $20-$50 per year. They give you unlimited free copies of your credit report so you can check it whenever you need to, online Monthly Monitoring Alerts to inform you of changes, black marks, inquiries and possible credit fraud signs on your report, information to help you deal with inaccuracies in your credit report, a newsletter with tips for managing your good credit, and articles to help you stay on top of your credit.

Is It Safe To Use Credit Cards Online?

It is much safer to use your credit cards on the Internet with a secure server than calling someone and giving your credit card numbers over the phone. However, people are still somewhat leery about using their credit cards on the Internet. When you use a secure server over the Internet, the data gets scrambled or encrypted and then put back together again once it reaches its intended destination. If you give your credit card numbers over the phone it is not in cryptic form. Furthermore, most credit card companies guarantee safe shopping on the Internet so you really have nothing to lose.

Article Source: http://www.moneyarticlelibrary.com

We have been assisting people with their debt consolidation and management needs for over a decade, and our reputation as a full service credit counseling company is unsurpassed in the industry. We can assist with debt consolidation of unsecured debts such as unsecured loans, credit cards and past due bills by consolidating them into one, low, affordable monthly payment.

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated

Click the XML Icon Above to Receive - Applying for a Credit Card Online Articles Via RSS!

Additional Articles From - Home | Credit | - Applying For A Credit Card Online

• The Security Of Online Credit Card Applications - By : Angel Estrella
  
• Apply Online For A Credit Card For A Fast Response - By : Daniel N.
  
• Real Price of a Credit Card - By : Peter J Kenny
  
• Instant Online Credit Card Applications Have Changed - By : Jeff Weber
  
• Online Credit Cards – Finding Best Deals Available Online - By : Joseph Kenny
  
• Applying For Credit Cards Online - By : Joseph Kenny
  
• Instant Approval Credit Cards Online - By : Will Roberts
  

Related Articles:

• 15 Effective Niche Marketing Strategies.
• Debt Consolidation or Debt Management?
• Get Paid To Raise Your Credit Score, Part I
• Just Say NO To Filing Bankruptcy
• Smart and easy steps to debt free life
• Buying Leads On-Line: The Cheap And Easy Way To Success
• The Downsides to Debt Consolidation
• Cure Your Debt with Debt Consolidation Loans
• Smart and easy steps to debt free life
• How To Reduce Your Credit Card Debt