Posts Tagged ‘Credit Cards’

Discover Rewards Credit Cards

Monday, February 16th, 2009

The Discover® Motiva Card from Discover, is meant for people with very good credit and who want to earn cash rewards by making timely payments and purchases. It is certainly one of the excellent choices from amongst the various cards due to its great credit card rewards program.

The reward program offers cardholders who spend up to $1,500 on general purchases a .25% rebate, $1,500- $3,000 attracts a .5% rebate, and over $3,000 earns a 1% rebate. You can also earn .25% for purchases made at certain warehouse clubs and discount stores.

For those who love online shopping, it is great. Shop for anything on Discover’s exclusive online shopping site, and you can get anywhere from 5-20% cash back. If you don’t want to utilize this benefit immediately, don’t worry because any points or cash back rebates on your card are valid as long as the card is active. Besides there is no limit on the amount you can earn in total rebate value.

If you pay by due date, you will get a pay-on-time bonus. If you manage to make 6 on-time payments consecutively, you get a credit for the payment of your next month’s interest. You can get pay-on-time bonus, 2 times a year.

Apart from the reward program, the card also comes with many cardholder benefits like travel accident insurance of up to $500,000, auto rental insurance, and different fraud and security protection services.

The introductory APR is a nominal .9% for the initial 10 months and is applicable even for balance transfers. After that, the APR is comparatively low for those eligible for the card, so ensure your credit score is completely perfect.

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Difference Between Debit And Credit Cards

Monday, February 16th, 2009

Debit cards have eliminated the need for a person to write a check to withdraw cash, or carry cash while shopping. In the old days, they carried the bank logo on them, your account number and your name. But today they resemble the credit cards. They carry credit card logos, and can be used anywhere to buy goods including on the internet.

A debit card lets you use your own money to buy goods. The money used in conjunction with that card is your money. On the other hand, when using a credit card you’re using borrowed money that you agree to repay later on. This money is borrowed from the credit card issuer, which is normally a banking institution. Both cards resemble and function similarly, but there are some subtle differences in case of consumer protection. If someone steals your credit card you are held liable to the initial $50 of theft unless you report the loss before it is used by the thief. Then you are not liable for any fraudulent charges.

MasterCard and Visa provide zero liability protection where you don’t pay any charges if someone makes fraudulent purchases on your credit card. The similar fraud protection is applicable for a debit card, with some exceptions. Your liability is still $50, provided you inform your financial institution within 2 business days of losing your card. Failure to report a lost or stolen card, can increase your liability to $500. Also check your bank statement frequently. Don’t just glance over it, but go through it carefully. If you notice any fraudulent charges on it and don’t report it within 60 days, you are held completely liable.

In many instances, you can avail of extra protection against unauthorized use of your cards through homeowners or renters insurance. You can find out more about this by going through your policy or contacting your agent.

By now you must be wondering which cards you should use when. Most experts recommend you should use your debit card wherever you use cash e.g. groceries. An important thing to remember while using your debit card is that you must have adequate funds in your account to pay for your purchases.

For online transactions, a credit card is the best bet. This is because it is easier to dispute unauthorized purchases made on a credit card. Besides, if your purchase arrives damaged the credit card company will not levy any charges till the matter is sorted.

Remember, both cards are essential but you need to know when to use the correct one. Every card has an important use. The faster you learn how to use both cards your life will be simpler.

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How to Select Bad Credit Credit Cards

Monday, February 16th, 2009

Bad credit credit cards have been developed for people with poor credit and want to improve their credit rating. There are two types of credit cards: secured and unsecured credit cards. You have to choose between these two, based on various factors with the stable income being the crucial one.

A secured credit card is obtained after making a deposit to the card company. You get the card with lower limit than the money you have deposited. An unsecured credit card does not need you to give any deposit. But the catch is that the bank may charge either higher interest or fees if you have bad credit. Hence find out the terms and condition before taking these types of cards.

Compare the bad credit credit cards based on various factors like APR, annual or monthly finance charges and if it is possible for you to get an increase in credit limit periodically.

Find out if your credit card issuer sends your credit reports each month to the various credit bureaus. By doing that, your credit card issuer is helping you to improve your credit standing. Most credit card issuers report to 3 credit bureaus but a few of them report to at least 4 credit bureaus.

Some of these credit cards also let you withdraw cash in case of emergencies. Others offer you rewards. But having a 24 hours customer service is one of the most important factors. This is more helpful to you if you are not careful in recording your spending. Find out if the credit card issuer allows you online access to track your account. These two important features let you keep track of your spending regularly.

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