Posts Tagged ‘Credit History’

The Rise of Prepaid Credit Cards

American consumers look for ways to lesson the pain of a credit crunch and deep debt, especially during economic downturns. Many consumers may find that credit cards have moved beyond their reach. Prepaid cards may be the solution to much needed relief. Typically marketed to students and those with poor credit, prepaid cards offer the advantages of standard credit cards without the fear of accumulating more debt.

Unlike debit cards, which require a checking account, both prepaid and secured cards are not tied to your bank account. There are no monthly payments because the card, similar to a gift card, has money deposited into an account specifically for this purpose. The spending limit is equal to the amount on deposit. Network-branded cards bearing the American Express, Visa or MasterCard logo can be used anywhere that traditional credit cards are accepted.

If you’re interested in a prepaid or secured card, there are a few things to consider:

Research comparisons of top credit card deals and apply online. Fill out applications for Visa, MasterCard, American Express, and Discover. Choose the right card for your specific financial needs.

Prepaid Business Credit Card Benefits

As businesses seek to streamline operations and maximize efficiency, credit cards have become a virtual necessity. Businesses use credit cards for everything from purchasing office supplies and paying large invoices to managing cash flow and earning incentives.

However, not all businesses have access to a traditional credit card. In these cases, a great solution is for the business to obtain a prepaid business credit card. These cards have numerous benefits and uses, and are easier to obtain than a traditional credit card.

Not all businesses have sufficient credit histories to qualify for a regular credit card, in which a line of credit is extended to the buyer. In addition, some businesses wish to avoid the possibility of falling into debt altogether. Prepaid cards offer a great solution for these situations.

The prepaid card allows the professionalism and convenience of using a major credit card without the potential for high interest payments, overspending, and a resulting debt problem. Other businesses use a prepaid business credit card to provide employee incentives (such as contest prizes), gifts, and bonuses.

Even with all the benefits that using a prepaid card provides, it is not always the best option for every business in every stage. Businesses that are just starting out and that are able to qualify for a traditional credit card, may wish to take advantage of the opportunity to build a credit history.

A solid credit history will come in handy when making larger purchases that require loans, such as vehicles, machinery, and even real estate. Furthermore, since a prepaid business credit card is not actually a line of credit, the start-up business owners would still need to part with cash upfront in order to use the card. Cash flow is often one of the biggest challenges that young companies face, and prepaid cards don’t help in this area.

With the exception of the potential pitfalls that new businesses can experience with prepaid cards, the cards have a place in businesses of nearly any size. Established small businesses can enjoy the freedom from debt that a prepaid business card provides.

Medium to larger companies can take advantage of the streamlined operations, especially in the area of payables, receivables, and corporate spending. Businesses of any size can provide prepaid cards as employee gifts and incentives, as well.

Article by Louis, CardKudos.com

Tips to Get Your Credit Card’s Annual Fee Waived

Why do credit card companies charge an annual fee?  Sure, you could ask them and I’m sure they have a script to read to you with a reason that is flimsy at best.  Maybe something about making sure everybody with an account actually uses the card as if America has a problem with using credit cards.

Do you have a card with an annual fee?
If you have more than one card in your wallet and one of them is a rewards card, you probably do. I have good news.  You may be able to get out of paying your annual fee.

First, let’s be clear.  If you can’t get your annual fee waived without lying, then you should pay it.  America is upset when businesses don’t tell the truth so we should hold ourselves to the same standards.

Make Sure Your Got This in Place
With that in mind, two facts must be true in your life:  First, you must have good or excellent credit history with all of your credit card bills paid on time and no over the limit charges.  In short, your record with that company must be spotless.

Next, you have to have more than one credit card.  If you’re not willing to cancel your card and have no card to fall back on if it does come to that, then find another card before calling.

Contact Your Credit Card Company Now
If both of these facts are true of you, give your credit card company a call.  Remember the words of Dale Carnegie.  You will always get further if you don’t make somebody defensive so when you call, be well spoken, confident, and friendly.

Tell the representative that you noticed an annual fee on your statement and you wanted to know why.  After the scripted answer, providing you have another card without an annual fee, ask them why your (fill in the blank) card has no annual fee. You might even mention that you were online and noticed that cards similar to theirs had no annual fee.

Next, tell them that you have to make sure that you are getting the best rates and that somebody with your excellent credit can qualify for other cards without an annual fee and unless they can waive it, you feel you will need to cancel the card.

One of two things will happen
Either they will say something about noticing that you have a flawless credit history and for this year they will waive the fee or they will ask if you would like to be sent to the ‘cancellation department’. Tell them yes.  This is often a bluff on their part.

Once you get a representative, they will either tell you that there is nothing they can do or, more often, they will waive the fee.  If they say that you are a valued customer but there is nothing they can do, your only option left is to cancel the card.

Most people report that this works most of the time so if you are fed up with your annual fee, call them and give it a try.  There is no reason to pay this fee, if you ask me.