Online Money Credit Card Transfer

Of all the methods of money transference, one of the best ways is to execute it by doing an online money credit card transfer.

This is a process in which you use your credit card to transfer money to someone around the world. The great thing about this service is that it’s open to anyone that has a credit card. There are lots of online companies that allow this means of payment, such as PayPal and Moneybookers. Using your credit card online requires you to conform to certain simple rules of protocol, or you could end up with having it abused.

With that in mind it’s a great idea to use a company like PayPal and Moneybookers when doing an online money credit card transfer. It’s better to go through a recognized company, that way you are not giving out your credit card number to a recipient who could be corrupt.
There are many other ways to transfer money, but using a credit card proves to be one of the quickest and easiest ways overall.

Credit cards have certain areas in the world where they are more widely accepted than others. When people go on holiday, for example, they should check out any charges their card provider charge. Exchange rates per card company vary dramatically, so paying that restaurant bill in a foreign country could have a 10% swing, either way, dependent on which company you use. Standing charges for usage also fluctuate somewhat. Moreover, a card in foreign countries could command a higher charge rate than one that is more generally accepted. This is one of the reasons why many people own two or more different cards, for example a Visa card and a Master card, so they have the flexibility to use the right one in the right place.

It is a well known fact that because it is so easy and ‘painless’ to buy something with a piece of plastic, many people go over their overdraft limit and go into debt. Statistics, year on year, demonstrate a growing number of people having to resort to debt collection companies to try to find ways of getting out of trouble. It is easily done and one of the curses of modern credit facilities. Used wisely, this form of easy payment is still a very convenient way of getting out and about without the hassle of carrying large amounts of cash and if simple precautions and common sense are used, should not get someone into difficulties. In many cases nowadays, you cannot use cash for some services and therefore the need for some credit payment facility is a must.

Change of Charge Credit Card

Two years ago it was easy. You wanted a credit card that was interest-free and you got one. Millions of consumers became fully fledged "rate tarts" as they rode the wave of 0% deals that swept the country as interest rates sank to historically low levels.

But now rates are climbing again, with some forecasts putting the Bank of England base rate at 6% by the end of the year, and "free" credit cards look like a thing of the past.

Because while 156 cards currently offer some sort of 0% deal on balance transfers, the small print means there is often an upfront or annual fee, as well as a 1%-3% balance-transfer fee, while complicated interest rate deals that confuse consumers have become standard.

Mike Naylor, personal finance expert at price comparison website uSwitch.com, says headline figures often disguise the true nature of the deal: "Credit card providers offer long 0% balance transfer deals - up to 13 months - coupled with much shorter 0% new purchase deals from three months," he says.

"This is a very easy way for them to ensure consumers incur interest on all purchases made at the end of the three month 0% period for the remainder of the balance transfer deal."

NatWest, Mint and Royal Bank of Scotland have all launched such credit cards this month, says Naylor, and warns that any savings could be wiped out if consumers aren't careful in how they use the card.

"If a balance is transferred and purchases are made as well, the interest charged on these new purchases after the three-month 0% deal expires will wipe out the interest saved on the balance transferred."

He said customers need to get even more savvy in how they use their cards. "It makes much more sense to use two cards - one for balance transfers and one for new purchases," he says.

Hidden fees
As well as the cloudy upfront deals, credit card companies have also been criticised for a lack of transparency when it comes to annual fees.

Traditionally, credit card companies have only charged a fee on "premium" accounts. Customers pay an annual fee to secure other services, like cheaper insurance.

According to the financial website MoneyExpert.com, one in eight credit card companies now have at least one card that charges an annual fee. The highest charge is £275, the lowest £24.

But now the industry has started charging customers who keep a card in their wallet but do not use it.

Lloyds TSB became the first bank to charge a "low use" fee when they introduced the £35 charge for dormant cards earlier this year.

The move made the bank £1,785,945 in its first month, according to uSwitch estimates. The bank also attracted criticism for not revealing who would have to pay the fee.

Sean Gardner, MoneyExpert's chief executive, said the move to charging for cards that sit in peoples wallets "in case of emergencies" was because of "the rising tide of bad debt hitting banks and other credit card firms."

Credit card companies also saw a 43% fall in profits last year. This was mainly because of a 2006 clampdown by the Office of Fair Trading against unfair default charges, which cost the industry £300m.

That plus the rise in bad debt is "forcing providers to tighten their belts and think of new ways to make money," says Mr Gardner. And while Lloyds TSB was the first bank to introduce this, it certainly won't be the last. Morgan Stanley, the Cooperative Bank and Barclaycard have announced plans to introduce no-use fees.

A spokesman for Barclaycard, the industry's biggest card provider, said up to one million customers could be affected by a £10-£20 fee by the end of the year.

The move is an attempt by lenders to rid themselves of customers who cost them money. "Customers who don't use their cards cost us a lot in administration," says Barclaycard. "Those charges are currently paid for by the customers who do use their cards. We're trying to make it fair for everybody."

However, critics of no-use fees say there is ambiguity in how they are applied. "Dormant cards are a problem for the industry," admits Tracey North, a personal finance manager at uSwitch.com. "But we want to see clarity from the industry in how they select people they are going to charge."

Avoiding fees
The best way to avoid fees is to be vigilant, says Ms North. "The key is to read and understand any correspondence - make sure you read it." The second thing is to "close down any old cards. Don't have them hanging about in your wallet."

Mike Naylor echoes this view. "We would not be surprised to see more credit card providers introduce fees, in particular monthly or annual fees, before the end of this year," he says.

"As such, consumers should continue to keep a close eye on the small print and seriously think about switching away from those that do introduce fees for no added benefit."

Manage Your Credit Card

  A lot of people don’t really know how to use their credit cards. Nevertheless, it’s very important to learn the rules of handling credit cards for success and ease of mind, encouraging sound spending habits for new and experienced credit card users alike. Here are the three basic laws for success with credit cards:

1. Buy only what you really need. It’s a matter of responsibility. Get to know all of the responsibilities in owning and using a credit card, and please make wise decisions about the items you really need to purchase versus the ones you simply wish to have. It’s important to learng to distinguish between Need to purchase and Wish to have. By using your cards responsibly we mean you should learn to recognize which things you need and which things you just want. If you use your credit card to buy things you can’t afford today, chances are that you won’t be able to afford it tomorrow, or next month, and you will quick and steadily get into debt. Then don’t live a borrowed lifestyle, be true to yourself.

Responsible purchases help to keep lower balances, which are easier to manage and pay off than those that are higher. Further, lower balances helps you maintain a good credit score, as a large part of your credit score takes into account the levels of debt you have raised. Ideally you should stay within 30% of your credit limit.

Responsibility also means remembering your credit card payment. If you cannot make your monthly payment on time, let your creditor know in advance. Call him, explain the problem and ask that any late fees be waived.

2. Rather than seeing your card as debt or emergency funds, see them as liabilities that have to be paid. It’s about focus. Don’t recur to your credit card to make everyday purchases. Goods and items such like clothing, apparel, and gas shouldn’t be purchased with a credit card. If you use your credit card as a substitute for cash you may quickly grow debt. It’s true that some transactions may require credit cards (buying an airline ticket, renting a car or shipping an overnight package), but prefer cash or debit cards when possible.

3. And pay off your cards in full every month (or at most every two months). It’s about being smart. If you pay your card balance in full each payment cycle, you can use the bank’s money interest free for about a month. If you don’t pay your bill in full each month and make further purchases you will soon find yourself clobbered by debt (specially interest payments) on a rocketing balance. This is very, very dangerous to your financial health and can heavily hurt your credit score. Similarly, keep out of the habit of making minimum-only payments. This bad habit increases the amount of time it will take to pay off your credit card debt, and also increases interest payments. In short: to pay your debts off cheaper and quicker, pay as much as you can on your balance each cycle.

Being smart also means that you should negotiate a lower interest rate whenever possible. Remember that interest rate determines how much you pay for carrying a balance on your credit card. Study your interest rate on your credit card periodically to be sure you are getting the best deal possible. And get rid of credit cards with high and hard interest rates (but take into account that closing cards that still have a balance, or cards which make up a significant part oy tour credit history may hurt your credit score.)

Finally, remember that credit cards are essentially high-interest loans. Using them to buy everyday goods (household items, apparel, food, etc) sounds silly, and that’s why credit card holders who don’t pay their bills in full each month are not being smart. Certainly, if you don’t have the money to pay for an item now, chances are you won’t have it after the credit card bill arrives. So be smart.

Credit card interest rates over 13%

Average rate hits 18.9% as card providers worry consumers are increasingly likelt to default on their debt.

Credit card interest rates have hit a 13-year high as providers worry about consumers defaulting on their debt.

The average credit card now charges interest of 18.9%, the highest rate since 1998 and more than percentage points above the trough hit in 2006, according to Moneyfacts.co.uk.

The financial information group said credit card rates had been rising steadily since 2008, as providers priced in the risk that increasing numbers of people were likely to default on their debt in the face of high unemployment.

The increase meant that someone who owed £5,000 on a credit card, and who repaid only the minimum amount each month, would pay an additional £2,360 over the life of their debt, compared with if interest rates had remained at the 14.8% they dropped to in February 2006.

The group added that 18.9% was only the average rate charged to new borrowers, and many existing credit card customers had seen steeper hikes in the interest they had to pay.

Moneyfacts.co.uk said customers who would previously have switched to another provider were finding it more difficult to do so.The rights of consumers borrowing money were strengthened yesterday, as the EU consumer credit directive came into force.

Under the new rules, consumers will have up to 14 days to cancel loan agreements, while they will also be able to make partial early repayments, rather than only being able to clear any outstanding balance in full, as was previously the case.

Lenders will also have to give borrowers standard information before they borrow money, to make it easier for them to shop around, as well as making sure they understand the details of a loan agreement.

Firms will also have to carry out thorough checks on borrowers' creditworthiness before advancing them money.

Consumer minister Ed Davey said: "The implementation of the consumer credit directive will help strengthen a culture of responsible lending.

"With new legal rights for consumers and greater responsibility for lenders, consumers will be better able to take charge of their money."

What I like on Credit Cards

Yummy… a pizza with onion, green pepper, mushrooms, olives, plenty of tofu and a bit of minced fresh garlic. Tasty! Oh, and I have to buy my new laptop. Well, for all these things and little pleasures there’s the credit card. I prefer to pay with my credit cards as I dislike the notion of acting like an ambulant cash dispenser However, using credit cards requires control and knowing well the “policies behind the card” (the rates, the limits, how the credit reporting system works, etc.) Managing and using credit cards is just a matter of applying good sense.

That said, I have some friends that abuse their credit cards usage. They charge a lot! They go nuts because they feel like they work pretty hard and should be able to do that sometimes. The problem is not that they cannot afford the payment or cannot pay it off. The problem is that most of their purchases are frivolous things they really don’t need. Surely, they work hard and they deserve to enjoy the fruits of their work. But they are not enjoying anything by acquiring a bunch of unneeded objects. On the contrary, they’re wasting their money. The only thing that such frantic credit card usage satisfies is the desire of material possession. Do we indeed work so hard only to crumble under such lame desire? When we are going to use our credit card we always should examine the actual reason behind the purchase. Review carefully your financial state… are you paying a house, a car, a small loan? Then try not to acquire more debt. Moreover, if we have a short or troubled credit histories we must try to do things right. Pressure of extreme debt is what leads to desperate and dangerous measures such as payday loans, for example. Really dangerous. Calm. Relax. Think. Good sense, remember? Life is beautiful.

If you cannot control your credit cards, I think it’s best that you turn them over to the issuer. Alternatively, give them to your husband/wife, if he/she is more responsible Don’t be afraid to close a card you don’t want. Though closing cards never helps to improving your credit scores (on the contrary, may hurt them), the damage will be relatively minor if the card has little time with you. Now, if you’ve held the card for many years… think it over, as closing it may seriously hurt your scores.

Credit’s origin delves into ancient history. Thanks to credit, we can be granted a loan. But credit also signals the creation of debt. Thanks to the advances of informatics and communications, we are able to use our credit cards almost anywhere, anytime. That’s nice, I think. Some people argue that credit cards are evil instruments that may easily leave you broke. I disagree about the ‘evil’ part, but certainly they’re not ‘god’ instruments They said that lenders hide several dirty tricks behind the cards (soaring rates, huge fees, poor limits, etc.) That’s why I said we have to know well the terms and conditions. Here we have a few remarks:

• In general, we have to go little by little with credit cards and scores. Credit is a mixture of trust, settlement and reputation.
• If a card does not work for you, turn it over. Try to keep older cards, though.
• Some people recommend that we should not carry credit card balances. I disagree. Pay in parts, but always amortizing the debt. Avoid late payments by agreeing to an automatic debit so at least your minimum balance gets paid every month.
• Instead of accepting a new card, ask for higher credit limits on the cards you have.
• Use your card carefully, and learn to use them. Sometimes credit cards represent an opportunity for going to the restaurant with the family, buying gifts for the loved ones, attending emergencies, harnessing a sudden business chance, and so further.
• Apply good sense. Don’t hurt your self-confidence. Enjoy your cards but take the responsibility

Finally, I like to buy some healthy pizzas and some gadgets with my credit cards. That’s what I like the most about them

Select Credit Cards

In this modern world credit card is known as one of the most convenient way of payment in the transactions. This is due to the fact that using the credit card for payment is very easy and quick since we only slide the credit card on the credit card processing machines then we can make payment to anything possible. Besides credit card is the safest way of payment since we don’t need to use the real money involved in the payment transactions.

Buying Credit Card can be so much tough these days since there are so many options of credit cards to buy. If you’re a person who wants to get the fastest and easiest way to get the Best Credit Cards that match perfectly with your needs then you’re recommended to visit Comparecards.com. This website represents an online company that provides you all information related to the credit cards. When you visit this website then you can also find the tools to search the credit cards much easier and faster.

With the searching tools provided in this website then it’ll be easier for you toCompare Credit Cards so you can find the credit cards that suitable for you. Please kindly visit this website to learn more details.

Credit CARD Act penalizes thrift and entrepreneurship; interchange fee controls would compound harm to consumers

Today, the Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009 goes into effect. While the law, passed last May, is being hailed as a boon for consumers, it’s already causing a slew of unintended consequences.

Congress should carefully consider how the CARD Act will harm consumers and entrepreneurs and revise the law’s flawed provisions. Furthermore, Congress should resist populist proposals that would further distort the credit card market, such as interest rate caps or price controls on payment card interchange fees.

The CARD Act will make it harder for consumers to get credit just as policymakers are trying to get credit flowing. Ironically, the bill will result in higher interest rates for many cardholders, because it limits the ability of banks to properly price the risks associated with cardholders who make late payments. Even responsible credit cardholders who pay off their bills at the end of each month may suffer as banks increase annual fees and cut back on rewards programs to make up for lost revenue stemming from the law. The New York Times speculated last May that the law might create “a penalty for thrift.” CARD Act proponents claim the bill will make credit card marketing more transparent to consumers. Unfortunately, however, the so-called “Credit Card Holder Bill of Rights” goes beyond disclosure rules and imposes paternalistic rules that limit consumer choice and undermine sound risk-based pricing practices that have long been relied upon by credit card-issuing banks and credit unions.

The CARD Act imposes discriminatory restrictions on adults younger than 21 who wish to obtain credit cards. The law prevents low-income young adults – even those who can vote and be drafted into the military – from getting a credit card without the cosigning of a parent or guardian. This purely age-based restriction on credit card eligibility undermines the ability of college students and other young adults to establish good credit and learn how to manage credit wisely. Worse, by cutting off students’ access to credit, the CARD Act may pressure college students to work more hours and compromise on their studies.

Members of Congress wrongly moved up the date of the law’s implementation. Whenever new regulations are codified, firms need a reasonable amount time to adjust their pricing mechanisms to the changes. The Federal Reserve rules that the CARD Act codifies were originally set by the agency to go into effect July 1, 2010. But Congress moved up that date to today. As a result, firms are scrambling to meet these shifting deadlines, and more card holders have had their accounts closed and credit limits reduced than likely otherwise would have. The law also codifies the Federal Reserve’s unwise decision to ban the so-called “universal default.” A universal default occurs when a credit card issuer raises rates on a cardholder who defaults on a different credit card or loan. This is a sensible risk management practice that enables banks to properly gauge the risks associated with cardholders with weakened credit profiles.

Stifling the payment card industry with federal regulation won’t just hurt consumers, it will stifle entrepreneurship, too. Start-ups often have limited collateral, making credit cards one of the only sources of financing for getting off the ground. The Kauffman Foundation has found that almost half of all small businesses rely on personal credit cards for financing. One such entrepreneur is Sergey Brin, who used his personal credit cards as a college student in the 1990s to start the company that today is known as Google.

Fortunately for consumers, Congressional leaders wisely rejected calls from the retailers’ lobby to impose price controls on payment card interchange fees. Instead, Congress ordered the Government Accountability Office to conduct a study of interchange fees. In November, the GAO issued its report, telling Congress what many economists and other researchers have been saying for years: that interchange fee controls amount to a massive subsidy for some of the nation’s biggest retailers at the expense of consumers and the community banks and credit unions that issue credit cards. As the GAO report pointed out, when Australia capped interchange fees, consumers suffered from higher cardholder fees with no corresponding decrease in prices! (For more on interchange fees, see my Issue Analysis, Payment Card Networks Under Assault, with Ryan Radia.)

Credit card rate rise covers lost revenue, says expert

Credit card providers have increased interest rates in an attempt to make up for revenue losses brought on by the OFT's cap on penalty charges and an increase in the number of bad debts, according to a leading financial information provider.

In April, the OFT said that penalty charges imposed when customers defaulted on repayments should be no higher than £12.

Since then, a number of credit card providers have increased their interest rates on purchases, balance transfers and cash withdrawals, said financial database firm Moneyfacts.

Capital One Bank has increased its Classic visa card APR for purchases from 29.9% to 34.94%, and Halifax has increased its APR on balance transfers from 10.5% to 15.9%.

Barclaycard has increased the charge on cash withdrawals using its Simplicity Platinum card from 15.8% to 27.9%, an increase of 12.1%.

Lisa Taylor, an analyst at Moneyfacts, said that even taking into account August's 0.25% interest rate increase, the large rises showed there were "other forces" at play.

"Rising bad debts and the lost fee revenue has left many providers with no choice but to look for alternative avenues for income," she said.

"And it seems raising interest rates is a popular option. For many consumers this rise may go unnoticed, but they should take time to look at the long-term consequences. They could be in for a nasty surprise," she added.

A spokesman at Barclaycard said that while the interest rate for withdrawing cash was 27.9%, the standard purchase rate on its Simplicity Platinum card was the lowest in the market at 6.8%.

He added that the lender also encourages people to repay more each month by lowering the interest rate if they opt to repay a greater proportion of their balance.

"Credit cards are for customers to make purchases using flexible, short-term borrowing. People wanting to access cash could consider using other borrowing options such as an overdraft or personal loan," he said.

About Credit Cards Work

Have you ever stood behind someone in line at the store and watched him shuffle through a stack of what must be at least 10 credit cards? Consumers with this many cards are still in the minority, but experts say that the majority of U.S. citizens have at least one credit card -- and usually two or three. It's true that credit cards have become important sources of identification -- if you want to rent a car, for example, you really need a major credit card. And used wisely, a credit card can provide convenience and allow you to make purchases with nearly a month to pay for them before finance charges kick in.

That sounds good, in theory. But in reality, many consumers are unable to take advantage of these benefits because they carry a balance on their credit card from month to month, paying finance charges that can go up to a whopping 23 percent. Many find it hard to resist using the old "plastic" for impulse purchases or buying things they really can't afford. The numbers are striking: In 1999, American consumers charged about $1.2 trillion on their general-purpose credit cards.

In this article we'll look at the credit card -- how it works both financially and technically -- and we'll offer tips on how to shop for a credit card. (Experts say this should be a project on the scale of shopping for a car loan or mortgage!) We'll also describe the different credit-card plans available, talk about your credit history and how that might affect your card options, and discuss how to avoid credit-card fraud -- both online and in the real world.

Let's start at the beginning. A credit card is a thin plastic card, usually 3-1/8 inches by 2-1/8 inches in size, that contains identification information such as a signature or picture, and authorizes the person named on it to charge purchases or services to his account -- charges for which he will be billed periodically. Today, the information on the card is read by automated teller machines (ATMs), store readers, and bank and Internet computers.

According to Encyclopedia Britannica, the use of credit cards originated in the United States during the 1920s, when individual companies, such as hotel chains and oil companies, began issuing them to customers for purchases made at those businesses. This use increased significantly after World War II.

The first universal credit card -- one that could be used at a variety of stores and businesses -- was introduced by Diners Club, Inc., in 1950. With this system, the credit-card company charged cardholders an annual fee and billed them on a monthly or yearly basis. Another major universal card -- "Don't leave home without it!" -- was established in 1958 by the American Express company.

Later came the bank credit-card system. Under this plan, the bank credits the account of the merchant as sales slips are received (this means merchants are paid quickly -- something they love!) and assembles charges to be billed to the cardholder at the end of the billing period. The cardholder, in turn, pays the bank either the entire balance or in monthly installments with interest (sometimes called carrying charges).

The first national bank plan was BankAmericard, which was started on a statewide basis in 1959 by the Bank of America in California. This system was licensed in other states starting in 1966, and was renamed Visa in 1976.

Other major bank cards followed, including MasterCard, formerly Master Charge. In order to offer expanded services, such as meals and lodging, many smaller banks that earlier offered credit cards on a local or regional basis formed relationships with large national or international banks.

History of Credit Card

The concept of using a card for purchases was described in 1887 by Edward Bellamy in his utopian novel Looking Backward. Bellamy used the term credit card eleven times in this novel.

The modern credit card was the successor of a variety of merchant credit schemes. It was first used in the 1920s, in the United States, specifically to sell fuel to a growing number ofautomobile owners. In 1938 several companies started to accept each other's cards. Western Union had begun issuing charge cards to its frequent customers in 1921. Some charge cards were printed on paper card stock, but were easily counterfeited.

The Charga-Plate, developed in 1928, was an early predecessor to the credit card and used in the U.S. from the 1930s to the late 1950s. It was a 2½ in × 1¼ in rectangle of sheet metal related toAddressograph and military dog tag systems. It was embossed with the customer's name, city and state. It held a small paper card for a signature. In recording a purchase, the plate was laid into a recess in the imprinter, with a paper "charge slip" positioned on top of it. The record of the transaction included an impression of the embossed information, made by the imprinter pressing an inked ribbon against the charge slip.[5] Charga-Plate was a trademark of Farrington Manufacturing Co. Charga-Plates were issued by large-scale merchants to their regular customers, much like department store credit cards of today. In some cases, the plates were kept in the issuing store rather than held by customers. When an authorized user made a purchase, a clerk retrieved the plate from the store's files and then processed the purchase. Charga-Plates speeded back-office bookkeeping that was done manually in paper ledgers in each store, before computers.

In 1934, American Airlines and the Air Transport Association simplified the process even more with the advent of the Air Travel Card.[6] They created a numbering scheme that identified the Issuer of card as well as the Customer account. This is the reason the modern UATP cards still start with the number 1. With an Air Travel Card passengers could "buy now, and pay later" for a ticket against their credit and receive a fifteen percent discount at any of the accepting airlines. By the 1940s, all of the major domestic airlines offered Air Travel Cards that could be used on 17 different airlines. By 1941 about half of the Airlines Revenues came through the Air Travel Card agreement. The Airlines had also started offering installment plans to lure new travelers into the air. In October 1948 the Air Travel Card become the first inter-nationally valid Charge Card within all members of the International Air Transport Association.

The concept of customers paying different merchants using the same card was expanded in 1950 by Ralph Schneider and Frank McNamara, founders of Diners Club, to consolidate multiple cards. The Diners Club, which was created partially through a merger with Dine and Sign, produced the first "general purpose" charge card, and required the entire bill to be paid with each statement. That was followed by Carte Blanche and in 1958 by American Express which created a worldwide credit card network (although these were initially charge cards that acquired credit card features after BankAmericard demonstrated the feasibility of the concept).

However, until 1958, no one had been able to create a working revolving credit financial instrument issued by a third-party bank that was generally accepted by a large number of merchants (as opposed to merchant-issued revolving cards accepted by only a few merchants). A dozen experiments by small American banks had been attempted (and had failed). In September 1958, Bank of America launched the BankAmericard in Fresno, California. BankAmericard became the first successful recognizably modern credit card (although it underwent a troubled gestation during which its creator resigned), and with its overseas affiliates, eventually evolved into the Visa system. In 1966, the ancestor of MasterCard was born when a group of banks established Master Charge to compete with BankAmericard; it received a significant boost whenCitibank merged its proprietary Everything Card (launched in 1967) into Master Charge in 1969.

Early credit cards in the U.S., of which BankAmericard was the most prominent example, were mass produced and mass mailed unsolicited to bank customers who were thought to be good credit risks. But, "They have been mailed off to unemployables, drunks, narcotics addicts and to compulsive debtors, a process President Johnson's Special Assistant Betty Furness found very like 'giving sugar to diabetics'."[7]These mass mailings were known as "drops" in banking terminology, and were outlawed in 1970 due to the financial chaos they caused, but not before 100 million credit cards had been dropped into the U.S. population. After 1970, only credit card applications could be sent unsolicited in mass mailings.

The fractured nature of the U.S. banking system under the Glass–Steagall Act meant that credit cards became an effective way for those who were traveling around the country to move their credit to places where they could not directly use their banking facilities. In 1966 Barclaycardin the UK launched the first credit card outside of the U.S.

There are now countless variations on the basic concept of revolving credit for individuals (as issued by banks and honored by a network of financial institutions), including organization-branded credit cards, corporate-user credit cards, store cards and so on.

Although credit cards reached very high adoption levels in the US, Canada and the UK in the mid twentieth century, many cultures were more cash-oriented, or developed alternative forms of cash-less payments, such as Carte bleue or the Eurocard (Germany, France, Switzerland, and others). In these places, adoption of credit cards was initially much slower. It took until the 1990s to reach anything like the percentage market-penetration levels achieved in the US, Canada, or UK. In some countries, acceptance still remains poor as the use of a credit card system depends on the banking system being perceived as reliable. Japan remains a very cash oriented society, with credit card adoption being limited to only the largest of merchants, although an alternative system based on RFIDs inside cellphones has seen some acceptance. Because of strict regulations regarding banking system overdrafts, some countries, France in particular, were much faster to develop and adopt chip-based credit cards which are now seen as major anti-fraud credit devices. Debit cards and online banking are used more widely than credit cards in some countries.

The design of the credit card itself has become a major selling point in recent years. The value of the card to the issuer is often related to the customer's usage of the card, or to the customer's financial worth. This has led to the rise of Co-Brand and Affinity cards, where the card design is related to the "affinity" (a university or professional society, for example) leading to higher card usage. In most cases a percentage of the value of the card is returned to the affinity group.

7 Tips For Applying for Credit Card Application Approved Quickly

Credit cards are one among the many means of payment used for the payment of e-commerce on the Internet. All can not deny the importance of this credit card payment for online transactions. If you are a first buyer of a business online, such as my example of the open Internet Services Buying Agents on the internet, have a credit card is a mandatory requirement. Because the credit card payment is the most widely used and most popularly used as a means of payment online store (seller) on the internet.

Actually, what makes it difficult to take care of those credit cards? Not knowing what to do? Or is frustrating because it is often rejected?

If the answer to either or both of the above questions is yes, then you need to read my tips. I will be sharing tips you how to take care of credit card applications to be quickly diapprove by the bank. Please use these tips that I have provided below before you apply for credit cards to the bank.

1. Choose a class bank
What I mean is the second-class bank, sorry I can not mention the names of his bank, but the point is not the bank of a row of top banks such as Bank BCA, Mandiri, BNI and BRI. Bank board is mostly very selective in accepting prospective credit card customers. Why? Because of their large bank, which is obviously not looking for quantity but the quality of customer clients is minimal risk of bad credit is sought. Another example, foreign banks have also included a strong selection of candidates in accepting clients. So, so easy to take care of credit card applications, for the first stage of taking care of credit card banks try to avoid it if you want to quickly diapprove.

2. Choose the same bank where you are saving money in the bank
If you are a person who is not a permanent employee, not a civil servant / Armed Forces, or are not professional executives, banks are very strict in giving approval to you. Why is that? Because no party or corporate guarantee to you that most of the bank rejected your application. There's no such matter a great freelance income to thousands of dollars per month even though it still exceeds the employee will be denied. Do not believe it? I have friends who do business online income is far greater than my salary as chief engineer. Until now my friend is still having trouble taking care of credit cards. He was the last petition to the BCA bank until now rejected, there is no news story.

But you do not need to be discouraged, it does not mean there is no room for mensiasatinya that the bank looked at your request application. Indicate if you are the customer's bank where you are saving money. The bank usually will consider mengapprove credit card application if the applicant is the customers themselves. Moreover you have a customer account or a large deposit there. Remember my previous article in this paper.

3. Try to finance cash flow in your account during the last three months and then the balance of the traffic-
Which is disconnected with troubleshooting tips number two. If you are freelance workers, or businessmen (entrepreneurs), generally the bank will ask for the last three months bank statement containing your financial data. So, when you want to try to take care of credit card traffic (cash flow) of your finances. At least in the last three months. Banks usually will look to see your financial capacity into consideration.

4. Find a reference of the credit card holder (card holder)
Credit card issuing bank is not uncommon to frequently conduct a campaign member get member (MGM) to its credit card customers. Well, do not waste such an opportunity if there is to go apply if someone is offering you. Banks generally will consider an applicant if there is a recommended credit cards. Bank to assume you are referenced by other card holders, and so it is worth consideration for the bank to get a credit card.

5. Apply credit card offers in the mall
If you often travel to the mall is not uncommon to see marketing of certain banks that offer credit card applications. Nothing wrong with you try to accept this kind offer. Because the bank provides many facilities and conditions are not complicated. Bank usually just ask for a copy of ID card will suffice. Fairly easy because of the conditions then it would not hurt to try.

6. Mind Your credit card is in the city where you live the same as your ID card
Not all credit card applications rejected requests for financial reasons. Not infrequently the rejection due to domicile bank also be a material consideration. Banks usually reject the request if the application's home address (KTP) prospective credit card applicants are from out of town. Because the bank would not want to take a big risk if the credit crunch continues until there is trouble finding addresses for remote clients. So, menguruslah credit card in your hometown. Do not use the address of the overseas with boarding or your contract.

7. Plug the telephone (PSTN) in the home and office
These seven tips is equally important. Bank before approving your application normally he would crosscheck with a call to your home and office. If your home and office have his phone and easily accessible, it helps the bank decide to approve your application. Why landlines (PSTN)? Because the number of postpaid PSTN generally clear who the owner is listed in Telkom. So the more trust than most cell phones are prepaid numbers. Survey request an application (card) credit, the bank will check by phone first to address in its application data. If your home and office are difficult to contact the bank no longer think straight again will reject the application for your credit card application.

Thus sharing some tips on how to take care of my credit card. May be useful. If you have any questions please feel free to ask in the comment, thank you.

FICO's 5 factors: The components of a FICO credit score

In the land of credit scores, FICO is king. The bulk of banks in the United States use FICO scores to decide whether to offer credit to potential borrowers and at what interest rate. FICO has a major global presence, as well: According to the company'stestimonybefore a House Financial Services subcommittee, FICO scores are used in about 10 billion decisions worldwide each year.

While the inner workings of the FICO scoring system are a closely guarded secret, the company is open about the generalcomponents of a FICO credit score. Using the informfation in a borrofwer's credit report, FICO breaks that information into categories. Those five components each get different weights. "FICO scores give the most attention to how you have paid back lenders in the past and how much you are using of the credit available to you, as shown on your credit report. Those two factors contribute roughly two-thirds of a typical person's FICO score," says FICO spokesman Craig Watts. So how does FICO come up with its widely used score?

Here's a breakdown of the five elements of the FICO score:

1. Payment history: 35 percent of the total credit score is based on a borrower's payment history, making the repayment of past debt the most important factor in calculating credit scores. According to FICO, past long-term behavior is used to forecast future long-term behavior.

FICO keeps an eye on both revolving loans -- such as credit cards -- and installment loans, such as mortgages or student loans. Although the weight of each loan varies between individuals, FICO indicates that defaulting on a larger installment loan like a mortgage will damage a credit score more severely than defaulting on a smaller revolving loan. One of the best ways for borrowers to improve their credit score as a whole is by making consistent, timely payments.

2. Debt amounts: 30 percent of the total credit score is based on a borrower's total outstanding debt. Revolving lines of credit, which allow a consumer to borrow as much or as little as desired up to a limit (versus installment loans where a set amount -- say, $20,000 plus interest for a car -- is determined at the outset), are more heavily weighted. Credit cards are a type of revolving account.

Since FICO views borrowers who habitually max out credit cards -- or who get very close to their credit limits -- as people who cannot handle debt responsibly, a borrower should maintain low credit card balances. Experts recommend that the amount owed should not exceed 30 percent of the individual's credit limits. That 30 percent rule of thumb applies to each individual credit card as well as the overall level of debt.

The final components of a FICO credit score get less weight in the score's calculation. "The remaining one-third of your score is determined by how long you have managed credit, to what degree you have pursued new credit recently and the variety of credit types you have successfully handled," Watts says.

3. Length of credit history: 15 percent of the total credit score is based on the length of time each account has been open and the length of time since the account's most recent action.

As a result, it is impossible for a person who is new to credit to have a perfect credit score. A longer credit history provides more information and offers a better picture of long-term financial behavior. Therefore, to improve their credit scores, individuals without a history should begin using credit, and those with credit should maintain longstanding accounts.

4 and 5. New credit and credit mix: Each comprise 10 percent of the total credit score.

Borrowers, even those new to credit, should avoid opening too many credit lines at the same time, since such behavior could suggest they are in financial trouble and need significant access to lots of credit. FICO suggests that borrowers only take on additional credit when they must have it or when it makes sense financially.

Credit mix, meanwhile, is somewhat of a vague category, but experts say that repaying a variety of debt indicates the borrower can handle all sorts of credit. According to FICO, historical data indicates that borrowers with a good mix of revolving credit and installment loans generally represent less risk for lenders.

Knowing the various weights given to components of a FICO credit score give borrowers a better idea where to focus their attention. "So to get a good score you mostly need a credit history with no reported late payments, as well as low reported balances currently on any credit cards," Watts says.