As a society we have made changes due to increases in technology. Less Americans are carrying cash today, all because of the now highly used debit cards that are issued with nearly every bank account we open. Prior to this, we had ATM cards which were great in the sense that we were able to always take money out of our bank accounts or deposit money into our accounts from multiple locations at any hour of the day. Now with the increased reliance on Debit Cards, we may be forgetting about the risks we take in using it over our traditional ATM cards.
Think of it this way. When you use an ATM card, you have to know the pin number. When you use a Debit Card you merely swipe, sign and go. This convenience is not only good for us but also anyone that get a hold of our debit cards! If we had ATM cards, there ability to hack into our account would be greatly reduced merely because of that pin number.
Banks offering Debit Cards through the Visa or MasterCard name are also upholding the “zero liability” rule on them. Basically stating that as long as your report your card stolen within 2 days, you will not be held liable for money lost do to fraudulent usage. But you also have to go through a lengthy process and it can be up to 20 days until the banks refund the money into your bank account that was lost. This is something to keep in mind when choosing between an ATM card and a Debit card.
Debit Cards are an obvious good choice for those individuals with damaged credit who are unable to get typical credit cards. The Debit Card will allow them the same buying conveniences as a credit card. For those who already have credit cards, the ATM may be a better option. Cash availability without the worries of someone else getting a hold of it and hacking into your bank account.
With the high rate of increase of identity theft throughout the world, we need to take any steps we can to try to protect ourselves from becoming victims of this faceless crime. When faced with the choice of a traditional ATM card and a debit card I urge you to truly consider what is best for your situation. Convenience may have its setbacks.
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The majority of the population is not in a position to pay cash for
home and automobiles. Hence, when making a large purchase, most people
must take advantage of financing options. Financing, or obtaining credit,
makes it possible to comfortably afford a home, automobile, etc.
However, financing does come with limitations. If you have good credit, your
finance options are many. On the other hand, if your credit needs
improving, you may be unable to obtain good rates when choosing to finance
merchandise.
Advantages of Maintaining a Good Credit
Sadly, many consumers underestimate the importance of maintaining good
credit. Secondly, some people fail to regularly monitor their credit
reports and credit scores. Credit is very important. While it is feasible
to obtain financing with bad credit, you will likely receive higher
rates and undesirable loan terms.
Before applying for any type of credit, take time to review your
personal credit report online. This way, you are knowledgeable of your credit
standing. In addition, you can take steps to improve rating. Here are
three tips on how to improve credit rating and boost your credit score.
Pay Creditors on Time
Paying bills late is extremely damaging to your credit report. If a
creditor receives your payments one day past the due date, they have the
right to increase your interest rate. Moreover, other creditors may also
increase your credit card interest rates if you pay another account
late.
Making timely payments will add points to your credit score. The higher
your score, the better your credit. On the flip side, continually
paying bills late will be revealed on your report, and decrease your overall
credit score.
Reduce Debt to Income Ratio
Your online credit report will include all pertinent information,
including how much debt you owe. Having an excessive amount of debts will
also lower your credit score. Rule of thumb: the more available credit
you have, the better. This indicates self-control and the ability to use
credit wisely. On the other hand, if you have several maxed out credit
cards, future lenders may be less willing to grant you additional
credit.
Keep Old Credit Accounts Open
Many assume that closing old or paid accounts will increase their
credit score. However, this maneuver does the opposite. Again, available
credit is good for your credit score. If you pay off a credit card, and
close the account, the credit is no longer available. Instead, keep paid
off accounts opened. If you are determined to get rid of a few credit
cards, cancel newer or recently opened accounts.
Get a
Free
Credit Report online.
View our recommended sources for
Credit Repair. ABC Loan Guide is a resource for Bad Credit Loans.
Commerce and technology, combined as a one package - this is what online credit cards are. With the advent of internet, the knowledge and communication barriers were broken. Also, with internet, came the concept of e-shops or virtual shops that existed only on the internet. You could shop at these shops by making use of their online credit card payment-acceptance ability. Once the online credit card payments were verified and approved, the goods got delivered to your door. This is what we call convenience at its best.
With more and more e-shops getting setup everyday, online credit card usage is becoming even more popular. The possibility of receiving online credit card payments has given a totally new dimension to shopping. Now, you can not only shop from the comfort of your home, you can even get discounts on these products. This is really amazing. No need to bother about the weather, no need to worry about the traffic jams or any other thing. Just go to an e-shop, select a product, make use of their online credit card payment-acceptance facility to make the payment and be ready to receive the goods at your doorstep.
With online credit card processing facility, starting a business (an online business) has become just unbelievably easy.
However, there is nothing without pitfalls. One of the pitfalls of online credit card usage is the possibility of online credit card fraud. This online credit card fraud can happen in two ways. The first one is related to the company, on whose website you made online credit card payment for purchase of goods; this company itself could be fraudulent i.e. it could take the online credit card payment from you but not deliver the goods to you. Moreover, they could use the details of your credit card (received through the filling up of online credit card payment form by you) for fraudulent purposes. The second type of fraud is committed by fraudsters who use various softwares/devices to capture the details of online credit card payments (as you enter them on the online credit card payment form of a website). These softwares are popularly known as spyware and these fraudsters as online spies. The spyware works by capturing keystrokes or taking screenshots of whatever you do on your computer and then passes it on to the spy. However, there are anti-spyware softwares available which can be used to counter such spyware.
So, the advent of online credit card usage facility is a boon to us. However, you must exercise caution when making online credit card payments e.g. don’t access your bank accounts or make online credit card payments from internet cafes (unless you are absolutely sure about the credentials of the internet caf©).
Sandra Stammberger is the owner of Money Management Center. A guide to credit cards, budgeting, and credit use. For more information visit www.money-management-center.com/