Credit Card Processing Service

  Credit Card Processing Service  - 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.

  Credit Card Processing Service  - How does a credit card company use your private data?  - Jun 28, 2007  

The credit card companies have good access to a wide ranging information about us. They already collect all the personal information such as name, age, address, phone numbers from us. While the vital financial details are acquired by the credit card company by accessing our credit reports. This information is very vital for the credit card companies and even more for us. How do the credit card companies use this information, and what more do they collect from our day to day activities. This article takes a look at all such things.

Whenever we make a purchase or borrow from our credit card the credit card companies gets the required information about the card, date of purchase, amount of purchase and place of purchase. It is good to have a receipt of every purchase one makes using his/her credit card since it is very useful to dispute any fraud claims.

The credit card employees who address who get all the formalities done like getting your application filled, scrutinizing your application, getting thins verified, entering the application in computers and processing them -- all can go through your financial and personal details. It is all bare before them, but all these employees are bound by the company regulations and must respect the company's privacy policy.

The customer service representatives, to whom you refer your complaints and other things also have access to all your private information. They need this to verify your identity and provide prompt and relevant customer services.

Whenever there is a claim for lost or stolen credit cards, the credit card companies do have to share your vital information with the security authorities.

Credit card companies use the information you provide, and your spending habits by recording your day-to-day credit card activities for research and analysis purposes. They also use this information to develop marketing programs that give them more leverage to get new customers.

Credit card companies do share information with their partner networks on a mutual basis for things that benefit each other. In addition to mutual benefits if a credit card company employs some other agency to do marketing or customer service on its behalf, the company also gets to know your personal and financial details.

Whenever, during a legal proceeding, a subpoena is issued, the credit card company must present your private details to the necessary authority.

These things may alarm you as how many people know everything about you! But, wait there is little to worry because the credit card issuing companies have to maintain physical, electronic and procedural security measures that comply with federal regulations to safeguard the information about every cardholder. There are very low incidences where actually the company which has issued the credit card has committed any fraud.

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