Sunday, November 29, 2009
Credit cards are widely used for both online and offline transactions due to convenience offered. For online transactions, they offer a degree of protection against fraud as the credit card owner can dispute a transaction, if he or she is wrongly charged. However, if the credit card owner delays payment of the amount due , the interest to be paid on the credit card is very high as the interest rates charged by credit card companies are significantly higher than those charged by banks for loans since the amount is not secured.
So it is important to carefully evaluate the positive and negative features of the credit cards offered by the various credit card companies in great detail before taking a final decision and selecting a particular credit card. An online credit card comparison offers information on the different credit cards based on criteria like balance transfers, interest to be paid on purchases and average APR to be paid. The APR is variable and depends on a number of factors. 0% interest is charged for balance transfers for periods which could vary from 12 months to 16 months. Interest on purchases is 0% for 3 months. The APR varies from 15.9% to 16.9%. The credit cards compared are those from Virgin, HSBC, MBNA rewards, Egg and World Wildlife Fund. You can apply for these credit cards online.
If you do have a credit history, it is advisable to get prepaid credit cards . These can be obtained easily and do not require much paper work. Some of these credit cards have an activation fee, but in other credit cards, this fee is waived off. Prepaid credit cards are ideal for students. However, a monthly maintenance fee is usually charged for these cards by the issuer.
At times, the limit on the credit card is not adequate and gets exhausted before the month end. You can get the credit card limit increased or use another credit card for making purchases for the rest of the month.
If a credit card holder wants the credit card limit increased, he or she will be asked by the bank to fill up a form requesting a limit increase and also provide additional documents like recent payslips and bank statement. If you have a good repayment history on your credit card, your application for an increased limit will be approved.
The credit card issuer will check your credit records before approving your application. However, this enquiry will not usually show on your credit file as your bank is an existing creditor.
You authorize them when you open the account, so they cannot penalize you because an existing creditor wants to make some inquiries each time.
Credit history is major factor in many life decisions, and knowing your credit score is important when planning for the future. Visit freecredittrio.com to receive your free credit score from all three major credit bureaus just for trying our credit monitoring service free for 7 days. Prepare yourself with the info you need to buy or rent a home, get a loan or get a job.