Secured Credit Cards – the Basic Facts

Credit card is a part and parcel of modern life. The credit card offers us the ease and simplicity to spend money without carrying cash, is versatile and handy to use and provides us the means to establish and recreate our credit rating. The secured credit card is however, not without its disadvantages, the main one being high interest rates charged on it. How would you rate your capacity to purchase a home or the car you want or the loan you simply need? How significant is it for you to have a good credit rating? In order to establish and spruce up your credit score, the best possible option is to have a secured credit card. A secured credit card is in effect the opportunity to regain a sound financial position. Due to the easy accessibility of credit reports through well-established credit bureaus today, credit issuers rely increasingly on these reports to make their final decision on providing you credit. A credit card is often denied to you when you do not have a credit history. This is often in the case of the young adults who have never taken out a loan or have so far used a credit card through a parent. It can also occur in the case of divorced people who have never had a credit card in their name. Secured credit cards [http://www.creditrunner.com/secured-credit-card-offers] thus provide the best means for anyone to establish a credit history. The secured credit card by virtue of being secured by your own money allows the issuer to feel safe, ensuring their money back in case you default. Since the issuer is also holding your money, they persuade you to make your payments regularly instead of losing your security deposit on the secured credit card. Secured Credit Card – A credit card with a security deposit Very often when you rent an apartment, the landlord will ask you to deposit an amount equivalent to a month’s rent into a special account. This amount acts as security and is not used till you move out. When you move, this money along with interest is returned to you. You will not owe the landlord any money if you leave the apartment without any damages. The same rule applies to the secured credit card. In a secured credit card you have to deposit an amount as security equivalent to 50-150% of your credit limit in a special account with the credit card issuer. The credit card issuing company will provide you with a secured credit card which is used like a regular credit card. The only difference being that only you and your credit card issuer know that the secured credit card has attached to it a security deposit. Provided you use your secured credit card wisely, the security deposit will not be used. This means that the secured credit card will be used to make reasonably priced purchases and the monthly bills will be paid regularly and fully as far as possible. To increase the credit available to you on your secured credit card, you can either increase your security deposit or get as many secured credit cards as possible. The credit card issuer will soon increase your credit limit from 50% of your deposit to anywhere between 75% and 100%. The interest rates on secured credit cards are usually quite high. In the even that you have been rejected for credit by some companies you will be thought of as a significant credit risk. The issuing companies are taking a huge risk in lending you money through secured credit cards, and these interest rates are based on these risks. A secured credit card is not suitable for people with a solid and established credit rating as they can avail of credit cards with lower rates, rewards and other benefits. A secured credit card is for people who have had a bad credit or no credit to start with and need to mend their credit scores through a responsible show of credit card handling.

Understanding the Process of Mortgage Lending For Preventing the Future Issues

Mortgage funds are very effective to make an investment when you do not have the money of valued property. The preference of mortgage lending is because of no restriction for getting the money. It is an excellent method to approve the money without crossing the formalities. Mortgage funding is easy to choose through reputed companies in Miami, Florida, etc. The companies are very cooperative and understand the necessity of client.

There might be many reasons for applying the fund such as buying the home, shop, commercial property, etc. As you expect the fast approval and supportive service, most companies also effort to fulfill your expectations. But many things are required to cross-check and verify during the process on behalf of the client. It is a most important factor to know some precious structures like interest rates, EMI dates, the period in approving, way of formalities, and role of a client during the process, etc.

Here the structures mean the basic knowledge but precious:

1.    Interest rates:

Most customers do not compare the prices from a couple of funding that might cause lose. Some companies take advantages of customer’s faith and apply the high-interest charge during the deal. And in most case, it also seems that interest rates are changed at the time of documentation after taking the quotation. It means the companies give the different quote but applying the various interest rates which is not favor of the client. Therefore client should be alert and also cross check the quotation while proceeding.

2.    EMI dates:

When we go for a loan that time, we do not realize the importance of date as that time we were excited. But the turns come for paying the EMI that time date matters a lot. For an example you are an employee and applied funding for a lending mortgage, your salary date is 5th, but EMI date is before the salary date then it might be difficult to manage. Many people think to adjust money after getting salary so the client must check the EMI date if it is not suitable then request to change. The date could be modified in the starting but after all process, it can never change.

3.    Read the agreement:

Many hidden policies are not described in the beginning while customer comes for the loan. But during the document formalities, many policies come appear which can make surprise the client. Some borrowers do not read the agreement and face the problem after all process. That’s why it is vital to read all agreements to make prepare and get the best deal.

4.    Role of client:

Here the role of client is meant the necessity of borrowers for the whole process. In actual, most companies understand the value of customer’s time and do not disturb them much for fulfilling the documentations work. However, it is the client responsibility to cross verification the requirement of client and how many times they will have to visit their offices.

What You Need To Know About Credit Cards

What is a credit card? A credit card is a card that allows you to borrow money to pay for things. There will be a limit to how much you can spend called your credit limit. At the end of each month you can either pay off the whole of the amount you owe or make a minimum repayment. Other kinds of cards include: 1) A cheque guarantee card, issued by your bank, that you can use to ensure that your cheque will be honoured up to a certain limit.

2) A chargecard where you have to repay the full amount at the end of each month.

3) A debit card, issued by your bank, where whatever you spend is immediately deducted from your bank account Do you need a credit card? Using a credit card is a useful way of making purchases: a) A credit card means you don’t need to carry huge amounts of cash around and risk losing it.

b) A credit card means you can buy items over the internet.

c) A credit card means you can make purchases abroad without having to worry about local currency.

d) A credit card gives the opportunity to spread the cost of a large payment over several months.

e) A credit card is useful in an emergency. For example, an unexpected repair to your house or car.How do you choose a credit card? The main two UK credit card issuers are Visa and Mastercard. These are accepted in most places and in 130 countries worldwide. Beware of less well known brands that may not be accepted everywhere. Before you choose which credit card is the best for you, remember to read the terms and conditions carefully. Never sign up for a credit card without fully understanding what you are agreeing to. Remember that all the plus factors will be prominently displayed in large print. You may have to study the small print carefully to discover if there are any negative factors.
A list of the current cards on offer in summary is available on this credit card summary page. What You Need To Consider:1) APR (Annual Percentage Rate)

This is the rate of interest that you will pay on any outstanding balance. 2) Special Introductory Rates

You may be offered a low or 0% rate of interest for a limited time (Up to 6 months) when you sign up for a new card. A higher rate of interest may be charged for cash withdrawals. 3) Balance Transfer Rate

Card issuers may offer you a lower rate of interest if your swap your balance from another credit card to theirs. 4) Interest Free period

Remember to check when interest payments will begin. Will you pay interest from the day of the purchase? Or will you have a number of days interest free before you begin to pay? There is usually no interest free period for cash withdrawals. 5) Cashback and Rewards

Some cards over points or rewards for every pound spent on the credit card. Make sure that these are appropriate for you. For example, there&’s no use collecting airmiles if you never fly. 6) Minimum Repayment

Remember to check what the minimum monthly repayment will be. If you borrow £1000 on your credit card the monthly minimum repayment will probably be in the region of £25. But if you only pay this amount each month it will take a long time to pay off the balance and cost a lot in total when you include the interest payments. 7) Annual Fees

This is the fee that the issuer will charge you every year for using their credit card. Not all credit cards have an annual fee, so remember to consider this when you are choosing which one is right for you. 8) Late Payments

There will be an extra charge, as well as the interest owed, if your payment is late. This charge may even be more than the amount you owe so be very careful to check what the charge is, and to ensure that all your payments are made on time. A good way of doing this is to set up a direct debit from your current account. 9) Exceeding Your Limit

You may also be charged a fee if you exceed your credit limit. Will Your Application Be Accepted? Whether or not your application is successful will depend on your credit rating. Your credit rating depends on your credit history (a record of your use of credit) and is based on the record of your ability to repay debt. You can obtain a copy of your credit file by contacting a credit reference agency. There may be a small fee for this service. When you application has been accepted you will be given a credit limit. The credit limit will be fixed when you first apply for your card (although you can ask for it to be increased or decreased later) and the limit, including the amount you have left available to spend, will be shown on your monthly statement. Insurances and Protection. What You Can Do: 1) Take good care of your credit card to ensure that it isn’t lost or stolen. 2) To prevent misuse of your card you must report any loss or theft of your card to the issuer immediately. Many issuers allow you to register all your cards with them so that in the event of you losing a purse, handbag or wallet they can all be cancelled with just one phone call. 3) You must keep all your receipts and also check your statement carefully and report any suspicious transactions. For example payments that you have no record of making. 4) Credit card companies are now issuing cards with PIN (Personal identification numbers) which are known as Chip and PIN cards. Rather than signing your name you will be asked to enter your PIN onto a keypad. You must ensure that you keep this number secret. What The Issuer Will Do 1) The issuer should insure you against loss, misuse or theft of your card. 2) The issuer may also insure your purchases for up to 100 days. 3) Your issuer may also provide protection against you being sold unsuitable or shoddy goods. Important Points To Remember:a) Credit cards can be a very useful tool to help you to manage your finances.

b) Choose your card carefully, remembering to read and understand all the terms and conditions before you sign up.

c) Remember to set yourself a budget and decide how much you will pay off each month.

d) Check your statements carefully each month.

e) Look after your card to prevent it being lost or stolen.For a glossary of the terms mentioned in this article please visit the credit card glossary page.