Posts Tagged ‘instant credit card’

Balance Transfer Credit Cards

Balance Transfer Credit Cards or Transfer Credit Cards offer to the cardholder the facility of balance transfer. By this facility,an outstanding debt balance on your one credit card can be transferred to another that is newer or less used.  But the credit limit of the latter will have a reduction to the extent of the transferred sum.For instance,suppose you transfer your outstanding debt of Rs. 20,000 on your card A to card B which has a credit limit of Rs. 50,000. By this, the credit limit of card B is reduced to Rs. 30,000.  Again, the balance transfer amount should not exceed 80% of the credit limit.For example,if the credit limit of your card is Rs. 50000, you can transfer to it only an amount up to Rs. 40000. Balance Transfer Credit Cards may offer zero interest balance transfer.In order to induce potential customers to change from other cards to theirs, banks often offer low or zero interest balance transfer.But this is only for the introductory period of 3-6 months.  After that the transferred amount acquires its original rate of interest.   If you want to avail a balance transfer credit card, as a first step,you have to apply to the credit card issuer for the facility of transferring your credit amount.Then on approval, your outstanding debt will be paid off by the card issuer and the due amount will be transferred to your new credit card.It may take 1-2 weeks to get the amount transferred.If you are not wary, your payment date may fall in between and you may not notice it. This will adversely affect you credit report.  Hence, make it a point to pay the minimum due amount till the transfer is made.  Credit card companies may offer free balance transfers to woo customers.They may offer you two, one or zero percent interest.But this may be only for an initial grace period.But this opportunity can be used to reduce your credit card debt.Before applying for a balance transfer, you need to look into the terms to know if there are some hidden costs.There may be some initial fee or annual fee.  Zero percent Balance Transfer Credit Cards gives you the facility of paying off debt along with saving money.You can save the 16 to 18% interest that you are supposed to pay otherwise.  Balance transfer credit cards can get you cash on emergency.You can even transfer money to your bank account or you can transfer through cheque.  Balance transfer credit cards can change your habit of delaying payments.As you are pushed into paying off purchases, you can save interest otherwise payable.

Transfer Credit Cards

Transfer credit cards or balance transfer credit cards are a recent development in the history of credit cards.Suppose you are a credit card holder with a balance debt of $ 7000.Now you decide to switch to a new card.But you have a liability outstanding on the first card, your debt balance.The new company allows you to transfer your outstanding balance on the existing card to the new card.The new one is a balance transfer credit card.Suppose the credit limit of your new card is $ 25,000.Your balance with the old card is $ 7000.Now the credit limit will have a reduction to the extent of the balance amount.The credit limit of the new card will be $ 18,000. Transfer credit cards are advantageous in many ways.Most of the cards allow you a very low or nil interest for the balance. Hence it will be beneficial for you in your debt management.As a matter of fact,these companies offer you a 0% transfer facility as means to woo you to leave your first card and take theirs.But this low or nil interest will be only for an introductory period of 3-6 months.Also, there may be some hidden costs.Hence it makes sense you look in to the terms and conditions if any hidden costs lurk behind the rosy face.Some companies charge some introductory fee or annual fee.But it is an advantage that you can save the interest of 16-18.If you opt for a Balance Transfer Credit Cards, first you have to apply to the card issuer stating your need of a balance transfer.Along with, you should obtain the credit statement from your card issuer and produce it to the new company.On due approval of your transfer application, the new card issuer will pay off the balance amount payable to the old card issuer. Then the amount paid by the new card issuer will be added to the debit of your new card. After your submitting of application for balance transfer,it may take a couple of weeks for the transfer to take effect. During this intervening period your payment date may fall due which you may not take notice of.This lapse will have an adverse effect on your credit report.As such, you should ensure the remittance of the due sum by the stipulated time until the transfer is effected.

Bad Credit Credit Cards

Bad credit credit cards can cause you worries.But that problem can be solved if you plan your financial dealings properly.Usually, a credit card is issued with a limit, beyond which one cannot purchase anything.As per the agreement, you would have to make a minimum monthly payment and if you fail to make the minimum payment, interest will be charged for the amount unpaid.  

If it is a prepaid credit card,you can make purchases with it and you can add the credit value by furthering your deposit any time and the bad credit status of your credit card can be improved. In that case, there may not be any interest, but there may be fee for activation, transactions, etc.If it is a secured credit card, you have to make an advance deposit and your payments can be adjusted against this initial deposit.There may be an annual fee for the service and that may be higher than the usual interest.In unsecured credit cards, there is no initial deposit and you will have a second chance and the limit can be increased if it is satisfied that you are reliable.

Your bad credit may limit the scope of your credit card. Most of the financial institutions are offering credit card facilities to their clients. Even though your credit status is low they may offer you a credit card with very low limit.If your credit status is very low,you may have to wait for 6 months to accumulate credit value.Some shopping and commercial establishments offer credit card facility.But such cards can be used only at such stores.Also such establishments charge a higher rate of interest.

Bad credit credit card holders can sign up with another person to increase his credit value.If the credit value of the other party is good,you will be easily accepted. This is because the liability under the card collectively and individually rests upon both the parties.If your credit value is below the limit, your co-signer is liable to pay the amount.Thus the service provider liability is minimized.In a secured credit card,credit accounts are guaranteed by the deposit of the holders.In most countries, your application for a credit card will be referred to the credit bureaus.Hence, too many credit applications to different agencies will adversely affect your chance of getting a credit facility because that will decrease your credit score.

Bad credit credit card holders may face many inconveniences and complications.A bad credit score will adversely affect your financial reputation.That will affect your future rating of a financial credit application with any financial institution.  Therefore,it is better to control your expenditures and ensure a flawless credit score.If you plan your income and expenditure properly, and discipline your spending nature, you can perfectly maintain a good credit score and you will not have to bother about any bad credit credit card. 

Prepaid Gift Credit Card

Prepaid gift credit cards are very convenient modes of gifts that you can give to your dear ones.  But, in fact, they are different from the conventional credit cards.  With a conventional credit card, the holder can purchase goods and services on credit and the bill can be paid later when it falls due. A gift credit card is analogous to a debit card.  A pre-paid value is put in to the card and the holder can have purchase only up to that sum.  Some gift cards allow refilling when the limit of the paid amount expires.  It is analogous to the paper gift certificates. These gift credit cards are usually in the brand names of American Express, Visa, Mastercard and of other credit card service providers. Before purchasing a gift card, you need to know the terms and conditions.  It is because, unlike credit cards, gift cards have certain limitations of use.  Then the legatee may not be able to make use of the card for the purpose for which it was purchased. For example,American Express does not issue gift cards to persons belonging to some US states owing to statutory restrictions.  Visa and master card have restrictions with respect to purchase of certain items.   Some companies allow prepaid gift credit cards to be used as ATM cards.But if the card is store-specific, this facility cannot be availed. You need to take notice of the expiry date.  In some cards,if some balance amount remains as on the expiry date, that amount is lost with the expiry.Some others charge an extra fee for the remaining period which may make the balance amount nil.Again some others, may repay the balance by cheque after deducting cheque charges which can again make your balance nil. If the gift credit card you have chosen is a right one, you can donate  it as cash. But if you are the receiver, you need to read the instructions lest you may face some inconvenience while using it. You can purchase gift cards from banks and other vending points.  There are online facilities also for purchasing them.  These cards are of different denominations.  

Using a prepaid gift credit card is a convenient form of transaction. It is a best form of expressing your regard for your dear and near ones in the form of a gift. It is equal to a gift of cash. But as already mentioned, a little care and caution should be exercised in the purchase of a Prepaid Gift Credit Card. You need to read the terms and conditions beforehand purchasing one.  Also, be conscious about the date of expiry because in most cases your balance amount may be forfeited after the date of expiry.