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FAQ

 This article is based to improve your general knowledge on frequently asked question's regarding to loans and credit card's, and other valid information. We have tried to explain the basic's and also give you tips on having a credit card; furthermore we have included alot of valid information what will help you make up your mind if a credit card is for you. If you would like to know anything else just simply contact us via our contact page.

To help build up our FAQ Page, please contact us if we have missed anything out or you would like to input more information into a certain categorie or more.


What is a good first card?

What is APR?

Advantages of Credit Cards

How Credit Cards are Billed

Top 10 Credit Card Tips.

What is a credit card?

Why Will I need a Travel Card?

 

What is APR?

APR is rather known as Annual Percentage Rate of charge. APR can be used to compare various credit loans and offers. The lower APR the better for yourself. APR includes the following:

  • interest rate you will have to pay.
  • how and when you repay the loan, such terms on how long you have to pay, frequency and timing of installment payments; how ever this does include amount of each payment.
  • fee's included when you take the loan out.
  • premiums for payment protection insurance that the lender chooses to make compulsory.

Here is a Example:

If you borrow £2,000 for a one year at 20% interest, furthermore at the end of that year you repay a lump sum of £2.400.

you will be paying a interest rate of 20% furthermore this makes the APR 20%

 

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What is a good first card?

There are various banks that specialize in extending Visa and MasterCard credit cards to users who are just establishing a credit history. Pick a bank/firm and see how you do when applying, try not to apply to more than one because credit applications show up on your credit report and multiple rejections will make you look very desperate for credit.

If you get denied and don't get your credit card, there a various other approaches to this situation. The first is to try start with department store's credit cards or oil company credit cards and try build a credit history using the cards, this will impress your future bank. Obviously these cards are alot easier to obtain than Visa or Mastercard cards.

Creating your payment history will help you qualify down the road for the major credit cards companies today. Try apply to one, meaning either a department store or oil company, and check to see if you get approved. Wait a few months before applying to another card.

The second appropriate option is to get a secured credit card. When you get a secured card, you place a certain deposit with the credit card company and they provide you with a credit card. The credit limit is typically equal to the deposit. But remember you have to be careful with certain secure cards that you choose. Some of these cards carry very high fees - so high that you could end up spending most of your deposit in fees.

It's always good to carry a small balance on the department store of secured card because it shows that you can handle a outstanding balance. It's highly recommended that you stay current of all your bills. Late payments, missed payments or other payment problems can result in undo-in all your efforts to build a positive credit history.

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Advantages of Credit Cards

Like various loans, credit cards can help you build a nice positive credit history. This is a huge advantage when coming to buy things such as, houses, car's and even looking for a job.

  • Security in emergencies;
  • Reduced need to carry cash or checks.
  • Enhanced personal responsibility and independence.

Furthermore, only various companies such as VISA or MasterCard do offer these benefits.


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How Credit Cards are Billed

Unlike various other loans, such as student or car loan, credit cards do not allow you to spread the amount you owe over a fixed period of time. Instead you are required to make a minimum monthly payment to the person/companies who has lent you the payment. Furthermore the minimum payment is the smallest mouth you can pay and still meet your cardholders agreement (the terms you agree to when signing up for a credit card).

Usually the minimum payment is 2 percent of your outstanding balance. furthermore, be paying only the minimum each month instead off your entire balance, your debt will grow increasingly. Many credit card companies will charge late fees, in these certain cases it's usually 2 percent of the outstanding balance, and higher interest rates on cash advances.

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Top 10 Credit Card Tips

  1. Can you afford it? Before you commit your self to signing up to a credit card, can you afford the repayments? If so don't take more than you can. Alot of people try talking you into taking more than you can actually repay.
  2. Shop around for Credit It's highly recommend that you shop around first, the internet is a big place, try searching online for review's like our website. It's best to get a much knowledge possible then commit your self. It's possible the first card you might get offered isn't the best deal. There are many types of credit and numerous rates on bank loans, credit cards, hire purchase agreements and so on. Don't pay more than you need to.
  3. Reading Some of the biggest mistakes people make today is not reading the terms and conditions; if you don't understand them get help from a trading advisor, such as trading standards office or Citizen's Advice Bureau. furthermore once you have signed you can't change your mind. No matter what happens, once you have signed your 're signed for a period of time. Unless you sign at home or at some other non-business premises.
  4. Broker's / arrangement fees I once read a book on how a multi-millionaire signed up to a contract with a broker and ended up wanting to hurt the guy after hearing the words "It's normal practice" Reason for this is broker's tend to add alot of additional charges. Look out for these.
  5. Traveling abroad I strongly recommend checking the charges your credit card firm will make when you use your card aboard, you may find it makes alot of sense to take a card out that doesn't apply any overseas loading charge. Alternately you can check our website for more information on this!
  6. How much will I pay back?Make sure you check how much you will have to pay back, make sure you check interest and charges and decide weather it's good value or not.
  7. Minimum Balance It's recommended to pay more than the minimum the firm offers to pay back otherwise you will end up paying the payment back over a huge time scale.
  8. Fraud It's highly recommended to check and re-check your bank statements to make sure you know how much is going in and how much is going out. Make sure you know your balance to the penny, furthermore if you suspect fraud contact your card issuer immediately.
  9. Extras Some firm's do take up payment protection insurance even though you may not have asked for it. You don't have to this this up, furthermore this may not interact with you if you are self-employed or on a short term contract.
  10. Spending Make sure you keep a close eye on what you are spending, because you could find yourself in a tight situation where you need to pay the most important things first such as bills, house, food. If you find your self short make sure you cut back and review your financial situation.

 

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What is a Credit Card?


A Credit card is a plastic card with a magnetic strip on the back of the card. Many people carry these card's in their wallets or purses instead of cash / checks. Holders of credit cards have the authorization to purchase various goods on credit and services up to a predetermined amount also known as credit limit. The bank issuing the card actually reimburses the vendor, and eventually the cardholder repays the bank through various payments (regular payments) such as monthly payments. If the entire balance is not paid in full, the credit card issuer can be legally charged interest fees on the certain amount what is unpaid.

Many individual banking firms have there own terms when it comes to credit application, customers may seek either a secured or unsecured credit card. Depending on their individual repayment histories. A secured credit card requires the applicant to deposit a certain amount of cash. The certain amount tends to be equivalent to the credit limit desired. A unsecured credit card, on the other hand, is generally issued to those who have a good credit history such people who have shown evidence of positive credit history. Also it can be determined on the ability to repay the accrued debt on time. Credit limits are determined on alot on the individual, this can be raised or lowered based on individual performance.

Credit card use often becomes problematic to various owner's of credit cards, when the holder becomes into debt. Meaning accruing more debt than the regular monthly payment can cover. The bank does allow users to carry out "over" balances monthly. When doing so significant interest rates are applied. When missing a scheduled payment the bank can raise the interest rates legally. If a credit card holder can only afford to pay the minimal amount due every month, the user will not be reducing the actually debt amount This is a financial example on what can happen if the user doesn't have spending restrictions.

Credit cards do give the user a immediate credibility for such services such as hotel reservations, car rentals, renting a flat and airline ticket reservations. The user's without a credit card do often find them self having to guarantee their reservations with a cash deposit or several forms of dedication. A lot of credit card plans also include insurance coverage for fraud or theft. If a credit card is reported stolen or illegally used, the cardholder would not be held responsible for unauthorized charges. A Credit Card holder can authorize the other people to use the card for purchases or services, furthermore; the primary cardholder is responsible for all charges placed on his or her account.

Many people try to avoid credit card's but many people do tend to take out credit card's; credit cards is not required for a successful living, but even those who pay for goods or services available cash often find a credit card to be convenient form of identification and instant credibility. In order to ovid excessive credit card debt, the holder must decide if the goods or services are worth the increasing of expenses.


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Why Will I need a Travel Card?

It's a great advantage to take a travel card on holiday, having a massively accepted form of currency is a something every traveler without a doubt should have. Travel credit cards can have alot of features such as book reservations, make purchases and withdraw cash at any ATM machine around the world today.

The best credit cards for travel would ideally have a Visa or Mastercard Logo, as American Express is not accepted everywhere unlike Visa and Mastercard who are highly cop orated firms. Most ATM machines in the world today either have a Visa or Mastercard logo on them, it's a wide advantage to be able to get cash from a ATM machine anywhere you like from your credit or debit card.

Currency exchanges also honor the major credit cards as well, furthermore this is a wide advantage on your favor so that you don't have to look around for a ATM machine. When you are in a place you've never been before, it is easy to miss a ATM machine even if you've walked by it. With travel card's you can use the internet to quickly locate ATM machines in your current area or else where.

Travel credit cards or prepaid travel credit card are products that most credit card firms/companies offer today, the travel credit card allows you to earn points when you use your card to buy a product. This makes the best for travel credit card, you can then redeem these points for airline miles or cash! This can be the best credit cards for travel because of the larger purchases you may be making when using your travel credit cards, and the frequency with which you will be using them. With a prepaid travel credit card, it may be smart to load the card with "emergency funs" for the just in case moments!

This is a very smart way to use the rewards offered by travel credit cards, you can use the miles you earn to even book another trip! Or you can keep gaining these points to use on your next trip.

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