Mobile Credit Card Processing

  Mobile 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.

  Mobile Credit Card Processing  - Start building positive credit history in 3 simple steps  - Apr 18, 2007  

Credit history, credit score, credit report-- these words will greet you sooner or later when you apply for a loan, mortgage, rent an apartment, apply for a job, or last but not the least apply for a credit card. Efforts towards building a good credit history should begin early, right from the student life. Ironically most of the students are not aware what is needed to build a credit history. In this article we look at three simple steps that can get you a jumpstart towards good credit history.

1. A checking or savings account

Begin with opening a checking account in your name. This is the first step towards acquaintance with banking and financial institutions. The idea is to open a bank account as early as possible, keep it in good standing, and it should reflect financial stability. And yes, the bank account should be in your name. Don't open and close bank accounts too frequently as this is perceived wrongly by credit reporting agencies. If you open a savings account, the money deposited in it can be used for security purpose when you want a loan.

2. Start paying the bills with your name

You need a mobile right? Go ahead and get a connection in your name and pay the bills so that they build credibility to your name. The way you pay your bills matter the most. If you pay everything on time and in full, a good credit history is waiting for you. The converse is also true. If you start faltering on your bill payments it will reflect badly on your credit history and you will definitely face problems while getting good credit cards and loans on cheaper terms.

3. Get a credit card

Students get numerous offers for credit cards when they enter a college. Some of them get carried away and take a few, and then use them to pay for all kind of things, and end up in debt. This is definitely not advisable. Credit cards are essential to building a credit history but too many credit cards do not build credit history faster. The thing that matters most for credit reporting agencies is how well you are able to repay your debts. Remember any credit card money is a loan which has to be repaid. The less the loan the better it is for you. So, try to get one good credit card and start using it wisely.

These three steps though, look pretty simple can go a long way in building strong foundations to a good credit history that will help you all through your life.

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