Thursday, May 28, 2009

When Will Companies Apply Credit Card Bill Rules?

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There has been much rejoicing everywhere as President Barack Obama finally signed the new senate cardholder’s bill of rights. The millions of cardholders who were roused to anger are finally appeased. The anger was brought on by how companies apply credit card scams by creating confusing terms and conditions that seem inaccessible to the common layman. The next question in every one’s mind is: when and how will this new list of rules get implemented?

Unfortunately the answer is a big disappointment. The bill won’t take full effect until February next year 2010. Now this might seem like no big deal, but think of the ramifications and the trend we are now seeing.

Since the bill was being processed, credit card companies have all been increasing their interest rates, lowering credit limits, and generally tightening their belts. Of course this is partly due to the fact that the banking industry needs to secure their lending. In short, they purport that lending cannot continue if they don’t get the same amount of income they used to have. Although it is debatable whether they really have vested interest in the continuance of their good service or of their own personal gain (especially since this so called “good service” has not been seen for a long time).

It seems that lenders have been scrambling to disobey the new rules while they still can. Considering the state of the economy, the timing could not have been worse. Now more than ever, their services is at the utmost importance. Families and businesses need credit for flexibility of transactions since the cash flow is getting thinner and thinner.

Hopefully, the bill will be approved in time. Hopefully, the economy can still handle this one year.

Thursday, May 21, 2009

The Credit Card Puzzle

How many good credit card deals are out there in the market?

With more than two hundred major credit card companies in existence (not counting those that have only several credit card packages) there is a myriad of credit card deals available to anyone with income and a social security number.

The economy is in shambles. People need their credit cards now more than ever since so many need flexible payment. Studies show that people who are now paying their groceries with their credit card. This is a sign of just how heavily they rely on it. But this is also a time when interest rates are at an all time high. This leads many to think that credit card companies are using this economic crisis as an opportunity to get more profit at the expense of the already burdened consumer.

What is the government doing about this?

The Government is trying to nip this problem right away before it grows out of proportion. The cumulative credit card debt in America is going up to such heights (2.5 trillion dollars this March). The Credit Card bill is scheduled to be signed by President Barack Obama in less than a week. This bill seeks to put an end to all the tricks some card companies use to dupe consumers. Hiding surprise fees in hard to understand terms and fine print, utilizing arbitrary rate increases, giving out credit cards to those under twenty one years old, failure to give proper notice before any rate increase – all of these are subject to banning. After this bill is passed, surely there should be a lot more credit cards with clear terms. Now whether these are good credit card deals or not is uncertain. There are fears that basic rates and fees might be increased, but at least they won’t be hidden anymore.

Monday, May 4, 2009

Credit Card Processing Have a Lot of Benefits

There is a lot of online credit card processing being done everyday. It’s not a surprise --- more and more people are opting for credit cards as their mode of payment these days.

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What are the benefits of using online credit cards? Here are some of them.

First, it encourages a faster and safer processing of payments. When you use online credit cards, it reaches the vendor much more quickly because it does not take time for the money to go through different channels, thereby eliminating wasted time.

Second, online credit payment can save manpower and valuable resources, such as paper, ink, and etc. Personal transactions like these require people to do the job. And they won’t do their job if they will not be paid for it. Aside from additional manpower, there is also the issue of environmental wastage. Usually, personal transactions require supplies, such as paper, ink, pencils, etc. These can be avoided if you use online credit. Think of how many trees are saved just by doing this.

Third, these cards help in paying the amount that you give in the currency of your country. So if you buy a product in the United States and you live in Africa, then the payment that your vendor receives will be in dollars. This way, it saves time from having to convert different currencies from each other.

Fourth, you won’t have to arrange for the whole money in one instant when you are going to use your credit card. You can just pay for the whole amount and then pay it later after some time. For instance, you can buy a classy bag worth $450 by using your credit card. It doesn’t matter if you have $20 in your wallet. You can still buy it, as long as you are sure that you can pay the monthly payments consistently (if not, you will have to depend on another credit card processing to give you another credit card).

Sunday, May 3, 2009

Repair a Bad Credit in a Smarter Way

Let me tell you a story. Once upon a time, there was this girl who needed to repair a bad credit due to an emotional splurging she had after her break up with her boyfriend. What she did was simple, so simple it was kind of embarrassing already -- she didn't ask for help.

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So one day, she just went to this sleazy company who looked like a company. She got to know it through a flier that she picked up while walking along Sunset boulevard. At first glance, she thought it might be a good one because it had a very cool signboard in front of its building. Aside from that, she thought the receptionist looked very well-educated, judging from the intelligent way she answered the girl's questions and the cool way she carried herself.

When she got to the credit service representative, she was greeted by a charming, handsome, and smart-looking man. He said he was happy to see her, and asked what the problem she had with her credit card was. The girl asked what she needed to do to repair the damage. The man said that he will give the girl a new credit identity, and he will be the one to handle all the details, including her work details and financial details.

The girl, with all her naivete and equal stupidity, believed in the man, and allowed him to do as he pleased.

After a couple of months, the girl was in jail. Her offense? Fraud.

Make this a lesson for you. Don't just fall for any credit service because they have the right "package." Research more about them, and make sure that you ask a lot of people -- not just one.

Do this, and you won't have to experience what the girl did when she tried to repair a bad credit without studying it first. By the way, that girl who went to jail for fraud is me.