Batch Credit Card Processing

  Batch Credit Card Processing  - 5 major drawbacks of bad credit credit card  - May 7, 2007  

With a bad credit and less than perfect credit history, getting a credit card with competitive features is not that easy. In this article we take a look at the 5 major drawbacks that come with a bad credit credit card.

1. High APR

With a bad credit credit card the interest rates are reasonably higher. Forget those 0% intro APRs- they rarely come with a bad credit credit card. So, keep your credit card balances low, to stop this high APR from burning a hole in your pocket.

2. One time processing fee

Some credit card companies charge a processing fee for people with bad credit who apply for credit card. This is generally charged by credit card companies due to the credit checks, other formalities and risk involved in providing a credit card to bad credit people. If you are going for a secured bad credit credit card then this fees can be waived, otherwise it has to be paid. The catch here is that credit card companies demand upfront payment of processing fee. But, a wise credit card consumer will find a credit card company which charges the fees to the credit card not demands cash in advance.

3. High annual fee

Keeping the bad credit credit card is definitely going to cost a lot in terms of annual fees depending on the credit report it can go in hundreds of dollars per annum. Bad credit credit cards with 0 annual fees offer is very difficult to find.

4. High late payment fee

Late payment with a bad credit credit card is severely penalized. The credit card companies charge heavy late payment penalties on repayment default and are very quick in reporting the default to credit rating agencies with a bad credit credit card.

5. Lower credit limits

Since, the credit card companies face increased risk in providing credit card to bad credit people, therefore the credit limits are lower. The credit limits can be increased with secured bad credit credit card and proper repayment of credit card balances.

These 5 factors related with bad credit credit cards increase the cost of owning one. Comparing various credit card offers, especially, when you have a bad credit will help you lower the interest and fees burden of a bad credit credit card.

  Batch Credit Card Processing  - Finance charges on credit cards: Simple ways for credit card companies to increase your bill  - Jul 2, 2007  

Simply speaking finance charges are all those charges that the borrower pays for the use of funds including interest, fees and other charges paid directly for the use of credit, or indirectly as a condition for the extension of credit. The importance of finance charges in credit cards is simply too big to overlook. Finance charges form a major part of our credit card bills and it is in the interest of every credit card user to know them fully. This article takes a look at various types of finance charges that credit card companies levy on credit cards.

Every credit card is subjected to some finances charges and these are charged to the credit card in their monthly bill.

Periodic Finance Charges. These are imposed on Purchases beginning on the date a purchase is posted to the credit card account. Periodic finance charges for both purchases and cash advances are calculated at a daily rate which is equivalent to the APR or Annual Percentage Rate of your credit card. With most of the credit cards, there is no minimum periodic finance charge, if any, it is mentioned in the credit card terms and conditions.

The cash advance fee is also considered as the finance charge by credit cards. This fee is levied whenever a credit card holder uses his credit card to withdraw cash. This cash advance fee is usually 3%-5% of the total cash amount withdrawn.

If your credit card charges an account processing fee it will be billed under the finance charge category.

Similarly if there is a program participation fee, which is charged for enrolment for the credit card, it will also be included as a finance charge.

If you want to add another user to your credit card account and the credit card company charges any authorized user fee, it comes under finance charge.

If you want to increase your credit limit and the credit card company charges you a credit limit increase fee, it will be put under the finance charge section.

Likewise, the card replacement fees, foreign currency transaction fees, and any other fees that credit card company want to levy on your credit card can be clubbed under the finance charges.

It is good to know all the applicable finance charges in advance and if you find anything which looks fishy, it's time to contact the credit card company and ask about it.

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