Credit Galaxy

2011-03-24T03:34:00.000-07:00

Credit Cards: Friend of yours or an opponent?

Credit Cards are the financial tools which should be used properly. By mistake if you are not aware of your tool you may hurt yourself badly.This is the reason i have shown one picture on the title page showing Credit Card as a monster.Still it is the greatest possible way for you to establish credit in the early part of your career. They also offer you liquidity and if managed properly they can make you responsible and they can show your responsibility level to others as well.

Mostly you get in trouble when you are unable to manage them properly and then problems rise for you. Always keep in mind that Credit Cards are a loan, a legal liability which has to be returned. Most of us forget about planning to pay back our loans and when we get aware of it or we just wake up its too late. While using your Cards get yourself prepared for following four things.

Do you really need it?
Can you afford the purchases you are making?
Do the terms of loan comply with my financial strength?
How will the purchases affect my monthly budget and savings?
Will I be willing to pay back loan after using the products?

These were some of the points which you must focus before you go out for shopping with your credit card or while paying online.It makes your life easier and simpler but it can also lead you to trouble therefore stay focused.

Thanks for reading this article on Credit Cards, keep reading our posts for further guidance it will help you a lot to manage your credits.

Is Student Credit Card an option for you?

2011-03-24T03:10:00.000-07:00

Is Student Credit Card an option for you?

Student Credit card is offered for young people who are under 21 and it could be an option for you because it carries following advantages.

It is the best options to plan out your life. Many Credit providers give you a large variety of tools beyond just credit to make sure you maintain the best quality life possible for you.

They are a way more cheaper than any of the payday loan services.

They can provide you extra convenience and extra liquidity when you need it.

If you use it in a right way you can establish extra rating before you turn 21.

At young age you need the credit option most but you are actually denied because of risk in your financial status.

The credit companies will go for you because they would need you to be their long lasting customer so you can get it very easily.

Mostly credit companies offer special packages just to make you sign up for their services.

0% APR (Annual Percentage Rate), 5% cash back plus discounts on books is also offered.

This post is not sponsored by any Service provider and it is not affiliated or related to any Service provider. These are some of the general answers for People under 21 who want to apply for a credit card.

2011-03-22T02:52:00.000-07:00

How to buy on-line without a Credit Card:-

Identity theft is a major problem for the online shopping and internet is the hub of identity theft. You can’t even imagine that a scripted code is waiting for you put in your information so it may copy it and send it to the hacker who has sent it. So do we have any other option for online shopping? Yes through temporary credit cards you can use them solely for online shopping; through this you can separate your information and your bank accounts sensitive information. For instance if a scammer or the hacker gets your temporary cards information, the information available would have been already expired or used by you for buying stuff online.

Following the service provider of Temporary Credit Cards their procedures are simple and user friendly.

PayPal Virtual Master Card

www.paypal.com

PayPal offers the user a Virtual MasterCard where you can use your PayPal funds to purchase online temporarily for the time. This feature can be acquired by downloading the PayPal Debit Bar; it is actually a bar at the top of your display screen where your numbers will generate. It can be used as a Virtual MasterCard on the websites that accepts your account. Virtual MasterCard is free with your PayPal account. I am using it for online shopping and it works perfectly well for me.

Second option for online shopping would be Visa Gift Card

http://usa.visa.com

Visa Gift Card can be used where ever Visa is accepted. More the amount you add to the card more you can spend it means that limit is in your hands. It also gives the same protections as offered by Visa Card like if your card is stolen or lost it can be replaced but the only drawback of this card is it is not re-loadable. I have never used it but many of my friends have told that it is a very good option that’s why I would recommend you to make payments through it.

Third option could be of MasterCard Gift card

WWW.thegiftcard.com

It is accepted where ever you will see MasterCard sign and logo. This gift card can be minimum of $5 and maximum of $ 2500. So you can charge any amount within that.

There are many other options also available in different regions and different websites but as I had an experience of a couple of the above mentioned cards so I would recommend them. At the same time these companies are worldly known and accepted.

Checkout for more information on blog and subscribe to the blog as soon we are going to give you recommendations on different products whether they should be shopped online from the Computer by sitting relaxed on the couch or you should enjoy a walk or a ride of train to catch your stuff.. Stay connected.

How to go for a secure Credit Card

2011-03-20T00:52:00.000-07:00

Build your life by a secure credit card:-

These are closely related to your personal checking or saving accounts. They are also pretty much same as those of unsecured credit cards with only a few differences. In place of the creditor giving you a prefixed line of credit, you can identify your own credit line with accordance of your savings account or checking list. Your bank account also used as collateral. If you fail to pay your bill on time the minimum amount will be deducted straight away from your account.

You might be thinking how does this help you. So if by any reason you are not able to pay your bill on time than banks and creditors are not going to give you credit. At the same time if you get a secured card, you will be proving you trust worthy and eventually the bank or creditor offer you the same traditional credit cards.

You don’t have to worry about the debt while dealing with such cards. The credit line would depend and available to you on what you have into the special savings account. Keeping the bill paid will ensure that the credit line remains at the same point and at a comfortable range for your budget.

Everything has disadvantage so the secured credit cards have as well. Suppose if you fail to make timely payments you will have to deal with their high rates of interests and other many late fees as well. The result would be the interest would continue to rise and finally leaving you with no option but to fall back on. So it is clear that every credit card’s fate is in ultimately final bill payment on time.

This can be a best option for the ones who are looking to repair their credit and build their credit. These cards are the first step to financial freedom and eventually a credit worthy life.

How to protect Credit Card Information

2011-03-20T00:47:00.000-07:00

Protect your Credit Card Information:-

In the past many things take a long time and effort to be increased but with the technological development we have seen difference in accomplishing such things without or a minute Work. In old days you either go all the way to your bank or call a credit card issuer about getting a card or you may fill out the random applications in the mail. You wait for about 6 weeks and if lucky you’d get the eagerly awaited response. And all the suspense which was build up burst as you open your envelop. Even I had a similar sort of experience while I applied for my Credit Card. My experience was a little bad , I couldn’t receive it at my home that’s why I had to go to my Bank to collect my parcel.

Those days were filled with a lot more excitement but nowadays the days are more convenient. You not only receive response from you authority and verdicts very Quick, at the same time you have now a lot of different card options to look into.

Some of our friends who do find it difficult to acquire it, there is a large variety of prepaid cards available which works just as same credit cards, and help the user to be used online whatever their equivalent real version is accepted. It may be used for the things to be shopped online or through other means, it can also help you to develop credit rating that can help you in getting a credit card with line of credit down the line.These cards have made our lives easy as you don’t have to find a company which is willing to accept you , no matter how weak you may feel your financial and credit reports are

Before getting for the credit card company you should first look around for low APR card rates. Credit Card companies not only have high interest rates but also other hidden fees are accompanied by them as well.

All of us are a little skeptical while using online shopping option that is loss/ exposure of your financial information. As identity theft and hackers getting cleverer day by day your online financial information may put you at a risk of identity theft. First thing you should remember while shopping online is that the company (website) you are dealing with is working on a secure web server, categories of URL starting with HTTPS and opposite to HTTP. A security certificate on their site also verifies whether they are protected or not.

Finally if you have a credit card in your wallet or purse and you are just ready to do online shopping and imagining what to buy online, you should be sure of your computer is with a updated and latest security soft’s, and also you should full scan on your system to ensure no key-loggers, Trojans or other viruses are on board with you and just waiting for you to put your credit card update and here they copy and send it to their respective thief who wants to steal your financial information, personal passwords. etc..

Soon in my new sections I will talk about different products which you can buy on-line and which are really worth to be bought online. And whether that product has charm in online shopping or you must roam through your city to a distant market to make the purchase keep reading and supporting by your comments and regular visits. Stay updated by our Rss feeds/ Posts and do register.

Are there any Hidden Costs in Credit Card

2011-03-19T23:58:00.000-07:00

Hidden Costs in Credit Card:-
There are a lot of hidden costs in the credit card and it depends on the provider of the credit card. It would be a lot better for you to understand the hidden costs of the credit card before you go for it.

Grace Period:-

The grace period is the extra time in which you have to pay/clear your bills you receive it. Usually you have three weeks in which which you are neither charged any fees or interest on your latest buyings through Credit Card. Although it is great to clear the remaining bills at the last dates but it can quickly lead to some pitfall if you let it go on and on. To avoid such situation you should clear your bills on time not as soon as it arrives but withing the given date when you feel easy. Usually I go for the last week because till that date that money is in your hands and you can use it for other emergency needs which may occur during the period. But don’t forget to clear your bills on time.

Late Fee:-

Another factor which could lead you to a terrible state is the cost of using credit cards that is usually overthrown by credit card users as a garbage. They don’t even pay attention to it. These costs are not much but it can multiply to a large amount in no time leading you to further problems.Late fees can raise up to $40 for each occurrence, which will be added to your balance, and it will be also charged by interest. Sometimes if your payment is one day late the issuer of credit card can raise your interest rate by 30 percent or more. It will also affect your other cards or account credit score which can cause you to pay a very high interest rate on future loans like a car loan for your brand new model of 2011-12 or whichever you apply in future.

The only and easiest way to escape these costs is to pay your bills on time as you receive them because once you are in this you will end up in nothing but disgrace of yourself and you will try to avoid the benefits which you may get from using the Credit Cards.

In U.K, merchants have the right to charge customers with different prices according to payment methods. In 2007 U.K Credit Card industry was at boom by 2.4 credit cards per customer, as by the U.K payments Administration Ltd.

In 2006 United States was nearly at the top of World for ratio of credit cards per capita, at 984 million bank-issued Visa and Master Card credit card and debit cards for adults of nearly 220 million people.

What is a Credit Card

2011-03-19T23:40:00.000-07:00

Credit Card:-

Since the Human has started evolving with the system of Payments and transactions, whole new systems have evolved which totally revolutionized the Procedures over time. One of the major achievements is the credit card.

Before applying for a credit card let me give you some of the insight about credit card so it may help you to decide whether you need it or not.

It is a small plastic card which is issued to the users as a system of transactions. It allows the user to buy goods and services on the card providers promise to pay for every service and good. The card issuer provides the a revolving account and grants a line of credit to the user for which he/she can use it to borrow money to buy anything from a merchant.

A credit card is different from a charge card: a charge card requires the balance to be paid in full each month. In contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being charged. A credit card also differs from a cash card, which can be used like currency by the owner of the card. Mostly such cards are issued by Banks and credit Union with a size specified by the ISO/IEC 7810 standard as ID-1. This is defined as 85.60 × 53.98 mm (3.370 × 2.125 in) (33/8 × 21/8 in) in size.

Benefits to customers:-

It provides convenience to the Customer or user of the card.
Compared to debit cards it provides the users to get short loans without any prior security or payment of Cash and it is very easy.
It gives fraud protection to the user as in many banks the Bank is equally responsible for the default product as a Customer is.
Many credit cards provide the opportunity to gain gifts and prizes for the customer in form of cash free shopping excess, recreational packages, enhanced warranties and air tickets.
It also removes the worry of carrying cash with you as it may get robbed or stolen but credit card are far more easy to carry in wallets and very little chances of being stolen.

My Opinion:-

Simply if you don't have the above problems than simply don't go for the card but if you think it is really hectic for you to carry Money along with you then definitely go for the credit card. I think soon our Currency systems will be obsolete and credit cards and such stuff would replace Money.

What is Debt

2011-03-19T23:34:00.000-07:00

Debt:-

Any thing which you owe is debit, mostly it refers to the assets which you are owed by you, but it may also cover the moral obligations and other activities which dont involve money at all. Debt also means to have a future purchasing power at present before a summation has been earned.Debt also play an important role in Corporate finance Strategy of Companies.
When a creditor agree to lend some Money to the debtor than debt is created. It is usually expected with a repayment just as a interest charged by the creditor to debtor.

Types of Debt:-

A company can generate various kind of debt for financing its operations. Following are some types:-

Secured and Unsecured
Private and public debt
Syndicated and bilateral debt
Other types of debt which don’t exhibit above characteristics

Debt obligations are considered secured when creditors have recourse to the assets of the company on a proprietary basis while Unsecured debt consist of financial obligations where the creditors still have not recourse to assets of the borrowers to satisfy the claims.

Private debts are the bank-loan form of obligations. It also means a public debt which covers all financial instruments that can be easily purchased and sold on a public exchange. They are very liquid in nature.

The simplest form of debt is the loan. It contains a fixed session of time in which the principal sum of the lender is to be repaid. Sometimes the Principal sum paid to the debtor is less the principal sum to be paid back. It means there is an interest on the principal sum which has to be paid by the debtor.

A syndicate loan is paid to the companies who want to borrow millions of dollars

In this type of loan more than one bank agrees to pay the loan.

A bond is the debt security which can be issued by the companies or by the government itself. A bond has a interest rate which is paid on the Principal amount at the end of every year. A bond may have a life of few years and or it may end up forever. It means that generations can enjoy the benefits if the company sustained.

What is Credit?

2011-03-19T23:30:00.000-07:00

Credit:-

Credit is the trust of one entity on the other in order to acquire some sources from each other. One party gets the required resouces but the other party does not charge at the same time or immediately to the first party( thereby generates a debt), but at that time arranges either to repay or return those same resources or of same worth at some other date. The resources provided could be in a financial form of loans, or it may contain goods or services(e.g Consumer credit). Credit is produced and extended by an entity known as creditor or lender to a debtor or we may say borrower.

Consumer Credit:-

Simply debt can be defined as money , goods or any sort of services provided to an individual instead of payment. Some of the Common forms of Consumer Credit includes the following:-

Credit Cards
Store Cards
Motor Finance
Personal Loans
Retail Loans
Mortgages

Many people around the World classify Mortgage as an independent entity and a different category of personal borrowing and even some of the residential morgages are excluded from some definitions of consumer credits and one such as that one is being applied by the Federal Reserve in the U.S.

Additional amount on the Credit, paid by the borrower is the cost of the credit and it is mandatory for the borrower to pay. It may include interest, arrangement fees and other charges by the debtor. Some of the charges like the credit insurance are optional. The borrower can opt rather to choose them or not.

Interest and Credit charges are shown in a variety of ways but under many legislative regimes debtor must quote all mandatory charges in the form of annual percentage rate. It promotes truth and gives the borrower a clear idea of cost of borrowing so that he/she may compare between the products of different lenders..