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."