| Credit Cards: Answers to the Approval Process |
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Tuesday, November 20, 2007
This is where companies have already looked at your credit history before they have offered you a credit card. This means that you are in a position to accept their offer without having to go through the process. Does this alter from an Instant Feedback Decision? The fundamental difference between this and instant approval is that with instant approval they have already enquired about your credit history. With an instant decision this means they will get a decision out to you quickly. How does instant credit relate to Instant Approval? Instant credit means that you are able to go away and start making purchases straight away because the credit card has provided you with temporary account details. This is no longer a popular choice and the main reason for this is that it puts banks and credit card companies in a position where by they are vulnerable to credit card theft. Are instant approvals safe? Instant Approvals are safe because if you are visiting the website of a company that you have heard of, and the data being sent is encrypted then the risks are similar or less to using a postal service, however it is worthy of note that they are fundamentally different. To check if data is encrypted look in the address bar, and should this read https:// rather than http:// then your data will get to the intended recipient. After instant approval, how long will it take to get my credit card? On average this will be around one week or even less in some cases. We recommend that you visit the concerned website for more specific information from the provider that you have chosen to work with. How should I use my credit card? You should use your credit card as you deem appropriate, however we recommend that you follow a few basic ground rules. Firstly, never use your credit card for a purchase if you are not able to envisage where the money is going to come from to finance it. If for example, you are not able to increase your income or decrease your expenditure then you should probably consider alternative means of financing a purchase. Should I use my credit card online? Shopping with a credit card is probably the safest way to shop online. The reason for this is that when you shop with a debit card your bank will not cover any losses that you incur as a result of fraud or a lack of integrity on the part of the merchant. This is why you should always ensure that should you intend to complete a large scale online purchase or offline purchase for that matter, use a credit card rather than a debit card. This article is written by Devin Gilliland publisher for credit-wisdom and jetclient.com Credit Card v Debit Card With the rise in popularity of credit cards and debit cards, over 40% of offline transactions are now conducted using plastic over cash. With this set to rise to over 2/3 thirds by 2012, the question remains – should I be using a credit card or debit card? For most, the answer is far from simple, and comes as a result of a number of factors, such as the size of a transaction, the transaction type and your current liquidity. With so much to consider, we have prepared this guide to ensure that you are aware of the factors that influence the fundamental choice – debit card v credit card. Credit Cards Advantages 1. Should you complete a purchase with your credit card, your credit card company will provide a dispute resolution service should things go wrong. They will actually refund you in the interim until they are able to find evidence to suggest either party was correct. 2. Strapped for cash? If you are unable to finance a purchase, but will have the capital in around 1-8 weeks, then a credit card could be for you, if you are aware of the costs that you will incur for borrowing. Credit Card Disadvantages 1. The inherent disadvantage in credit cards is that it is all too easy to get yourself in a mountain of debt. To avoid this, you must only spend with a credit card, what you know that you can afford. 2. Credit card theft and issues relating to this are on the rise. Although you may be covered for a large amount of the transaction, this can cause worry and stress to credit card users. Debit Card Advantages 1. You can only spend money you have. With a debit card, you will not be able to spend money that is not available in your bank account, this means that you will never be in red, and therefore the risk of debt spiraling out of control, is less of a worry to you. Debit Card Disadvantages 1. Should you complete a purchase online and things go wrong, you will have nowhere to go apart from the merchant. That is why it is strongly recommended that a credit card is used for large scale, online purchases. 2. If you do not have the cash upfront for a purchase then you may find yourself unable to finance a transaction. If you had a credit card then you would be able to do this. This article is written by Devin Gilliland publisher for credit-wisdom and jetclient.com Choosing a Credit Card Credit Cards are becoming an increasingly popular method of financing purchases. However, this has brought much negative press to accompany the inherent advantages. Why is this? First and foremost many are failing to comprehend the best-practice use of a credit card. This means only using it to finance purchases that you can afford to pay off in the short term. For those that follow this rule, credit cards work great. If you wish to complete a purchase that you cannot afford in the short to medium term then consider financing in the way of a bank loan which may offer a fairer rate, yet provide less flexibility in terms of repayment compared to a credit card provider. Think Big With a credit card provider bigger is almost always better. Why? Should you go with a bigger brand then they will be accepted in more countries, more shops and have a reputation to protect. Terms Terms and conditions provide a framework to your future relationship with your credit card provider. Through reading these carefully you can be sure that you do not breach these terms, you have a fair understanding of what to expect from your relationship, and you also know when your credit card provider is failing to follow the rules that they set. Comparison Something that is free for six months and then costs twice as much for the duration of the contract may not be a great option. That is why you have to sit down and think things through in real terms. In Real terms simply means thinking things through by comparison and calculation. Sit down, and consider how you intend to use your credit card, and calculate the charges you will incur with at least 3 options. You may be surprised by the results! What does it all come down to? When choosing a credit card it all boils down to, how much you are going to have to pay in the long-term for your level of spend and projected repayment periods. Why is the cheapest credit card different for different people? This is because when choosing a credit card there are different factors that have different weights depending on your usage habits. As with all forms of financing credit cards can cause real worry and stress through those who fail to plan and consider how they are going to finance the money that they borrowed. That is why, before you complete a credit card purchase, always consider where the money is going to come from to pay it back. This article is written by Devin Gilliland publisher for credit-wisdom and jetclient.com |
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