Well, having a credit card is becoming popular these days. So, whether you are a college student or you seem to be just fed up of using your debit card and are keen to grab a first credit card for yourself, we will explain you ways to get your first credit card.

Do you really need a credit card or not?—You need to know clearly whether you are really interested to have a credit card. What is it needed for? If you feel you need it, then make sure to use it in the best manner and not just overuse it for making purchases. A point worth notable in this regard is that most people hold their credit cards and make payments in full every month. So, good financial habits are needed for using a credit card to our advantage.

Choosing your first credit card—Steps—

• Credit card with benefits—Go for a credit card offering good advantages in the form of no annual fee, air travel bonus miles, promotional interest rates, low interest, credit points for gasoline or credit points for long distance call.

• Ensure about charges—Before choosing any credit card, always ensure about various costs and fees like a late-payment fee, application fee, over-limit fee and so on. Always make a comparison of such costs with other credit cards as well.

• Interest rates—Interest rates charged by various credit card companies tend to differ. So, the need is to check such interest rates before picking up any credit card. And once you make a decision to get a particular credit card, always pay the bills timely to save yourself from any overpayments or penalty.

• Promotional interest rate—Know the various payment terms as well as the time of expiry of such rates.

• Pick a credit card for limited credit—Those having a limited credit history or a fair credit score should go for credit cards accepting people with moderate credit for improving your probability of getting a nod for a credit card. Don’t apply for a credit card that asks excellent credit since chances are that you will be rejected.

• Standard monthly billing—Does the credit card has a standard monthly billing cycle or not? And is there any fine for not using your credit card? Make sure you get to know these facts.

Smartphones add to credit card skimming

A new Credit Card challenge seems to be cropping up for the Canadians. Smartphones, a revolution in technology, is another mean to decode the information on credit cards, even while they are kept in a wallet or purse.

All these days, most of the Canadians must be feeling secured to understand that they have safely kept the gadget in a secured place. But, now they can’t afford to think so.

The Smartphone adding to the problem

Smartphone Galaxy S3 has the capacity to read RFID chip on the credit card. And this way the name of the credit card holder, the number of the same and even the expiry date can be read by this gadget. This has been confirmed by a CBC Investigation.

The significance of RFID Chip

This chip helps to store information like card number, the name of the beholder and even the expiry date. The credit card companies find RFID to be safe enough though. The chip works similar as a magnetic strip on a credit card, unfortunately, it works wirelessly, which if the major cause of information stealing.

The challenge

The experts inform that, the information can be read in the periphery of a few inches though, yet, a smartphone can also be made in use to read the information within a few feet too.

So, someone who is standing next to a card holder can retrieve information and make use of the same without the actual holder of the card coming to know about it.

And the easiest part of the skimming is that one need not buy a high end technology gadget rather, by downloading an app he can easily retrieve the required information.

The wrong utilization

The technology which is developed to establish a smoother communication between two phones is being used to commit more crimes on credit card. It can help a skimmer make a purchase from a dollar to even hundreds, merely by retrieving the information on the card. And for this the skimmer need not try hard as they did before.

Better the technology more the crime

Galaxy 4 is all set to make the task of skimmers even easier. And this is because this new version has more enhanced NFC antenna which would help the cheater reach the credit card even from a longer distance. In fact, the latest version would be more helpful in retrieving the information on driver’s license and other such important possessions.

Any advancement will have its own set of challenges and this gadget is no different. Although there is no confirmation of any such happenings in the last few days, yet, the credit card companies are assured of their security as well as they suggests the customers to be more careful than they have been. In order to enjoy the development one has to be responsible enough to ensure that skimmers don’t play up fast. The users have to get smarter than the fraudsters to combat any kind of challenge.

Cash Backs and rewards on Credit Cards

Credit Cards are much in use these days. And the trend is more out of need than fashion. The conveniences one gets by using them, the advantages one feels while carrying these cards are the reasons behind their much popularity.

The Issues faced by the Credit card companies

The credit card companies are surely running their business out of the users, but, at the same time, there are many of the users who find it difficult to remember paying their bills on time. On one hand there are more 60% people who make it a point to clear their dues and bills well within the time limit, but, the business of a credit card company is made by the entire 100%. And almost 40% of the consumers offer a troubling time to the companies while paying back.

The policy adopted by credit Card Companies

The Credit Card companies come up with a constructive approach and hence, instead of thinking of punishments more they emphasize upon “positive reinforcement.”

And hence the concept of “rewards” and “cash back” is quite popular amongst the customers.

This doesn’t only pat the back of a customer paying the bills and clearing the dues on time, but, also, is an effort to attract those customers who rarely remember to pay the bills on time.

The operations

• There are cash back credit cards, which offer you a cash back facility on everyday purchases you make.
• The other facility on your credit card is to get a “reward”. Various companies come with various offers. In one such example, every time you make a purchase, you get a rebate of 1% of the amount you make the purchase for. This means, more you use the card for purchasing, more you save.
• And not to be forgotten, there are limits for you to get a “cash reward”. There are some cards which help you get a “cash reward” of 0.55 on the net annual purchase of $3,000 made through your credit card. It goes without saying, that more you sue the card, more you enjoy the cash reward.

The other side of the story

In the excitement of getting cash backs and rewards, you must not forget to note that these will never come to you in cash, even though the name suggests so. When you receive your statement, the cash backs and rewards will be reflected in the same and you may see a deduction there itself. Effectively, it is the amount of money which you will be liable to pay is getting reduced.

Credit Cards are certainly a revolution in managing personal finances in the sense that they give freedom from carrying a lot of cash in your pocket. And you also shop around without the fear of your money being theft. It gives you the freedom from counting correctly at the cash counter and then paying the retailer. Now with cash backs and rewards, you even can make the most of it, but, remember to pay the dues in time so that you don’t land up paying more for less.

Credit Card defaults

Holding a credit card is not a matter of “luxury” but “necessity” these days. And while using them, one may come to a stage wherein he becomes a defaulter due to non-payment or delayed payment for quite some time. Under given circumstances the Credit Card Companies are liable to take actions against such defaulters. But, the laws have been changed to protect the rights of those get into such a situation.

Certain facts about managing Credit Card defaults

Grace period: A credit Card holder should remember that every credit card company is supposed to give a “grace period” for clearing the due payments. Only when a person is not able to pay the dues within this grace period does the card is sent to the status of “defaulter”.

Closure of account: When a card is updated to the status of “defaulter” then many companies have the provision of closing that account.

Universal Default: when a card holder misses upon making payment for even other credit cards and or bills, then such a card is regarded as a “Universal Defaulter”. And under these conditions a card holder company can raise the interest rate on the card.

What happens when you are a defaulter?

• Adverse impact on credit Report: In case the credit card company decides to file a case against the card holder then it would be done under “civil law”. Also, such a step would be reflected in your credit report for another ten years. Consequently you can be prepared to receive a low credit score. Now, everyone knows the significance of this, whenever you intend to apply for a home loan or any other loan you would be asked to submit a copy of your current credit report and this kind of a report would adversely affect the decision of the financer.
• The restriction son Credit Card Collections: Amid all this pain, you can be rest assured that a credit card collector is not allowed to call you up whenever he wants to do so. They are not allowed to disturb you during specific hours and they cannot reach at your work place too. Aloes, no calls can be made to harass you; they can certainly call you up to remind you about the “default”.
• Interest rates cannot be hiked without a prior announcement: You can be rest assured that the credit card company cannot raise the interest rate on the dues, without informing you in advance and giving you prior notice about the same. This way your rights are protected against any kind of uncertainties.

Managing a credit card is as difficult as managing a financial plan. And if the card is due to make a lot many payments for some reason or the other, then one is likely to face more music than otherwise. The best is to learn the rights so that no one harasses you to make payments and on the other side, one can keep his preparations on for making the payment as soon as possible.

Credit Card increases debt

Interest rates on any of the commodities are more pinching than the principal itself. And the agony is added to the story when you hold a credit card.

Yes, holding a credit card could lead you to many problems apart from giving you the benefits, it does.

The growing concern over credit card

In the last decade, Canada has seen a rise in the number of rise in Credit Card holders and it has become 74 million. Another aspect of this statistics says that the debt on credit card is increasing to the extent that many of the students are graduating with a debt of $25,000 or even more.

In fact, the debt on the consumers hides their income. And in turn it means, that more the debt, higher the interest rate as per the terms agreed with Credit Card Company.

The challenges associated with credit card

The pot hole of debt: With growing number of credit card holders across various age groups the debt due to this credit card increases rapidly in the country. Even if one intends to clear the debt, he or she mostly land up being left with a part of the same. To pay it, they may have to take another loan and this means “piling of debt”.

In this regard, Douglas Hoyes, a bankruptcy trustee says, “if you dotn pay off your balance every month, a credit card another form of debt.”

The pinch of interest rates

There are people who are quite particular about paying their balance every month, but, they are caught in another way.

Yes, they are trapped in the high interest rate to be paid against the usage of credit cards they hold. Paying 20% to 30% on credit cards issued by the banks and also on department store cards, a card holder finds it quite a large amount and indeed it is.

In fact, there are experts who have studied the interest arte on credit cards, and they have not noticed any change from the rate which persisted last year.

The larger impact

Due to above mentioned reasons, credit card has largely destabilized the economy of the nation. And the bigger impact is on the youth who is getting into the habit of using credit card for every single thing.

In a study conducted, when the comparisons were made, it was analysed that the debt on credit card rose only at a difference of a year.

Also credit card is nothing but an unsecured loan, which keeps on increasing you debt pot day by day.

A data shows that many cards have put through “substantial penalties” due to the delay in the payment made by the holders.

People do relax a little by making a small amount of payment in the beginning though, but it is certainly not the requirement of the hour, both for the holders and the debt scenario.

To conclude, we can say that credit card is one of the major reasons behind the increasing debt of the country.

Retirement Days and Credit Card

When you hold a credit card, it gives you many benefits like you don’t have to carry a huge cash in your wallet, you don’t have to count and pay at the Billing counter every time you make a transaction. And you don’t have to make a not after every transaction the money you are left with in your wallet.

However, all good things have flip side too; likewise, even credit card also has its own baggage of questions with itself.

The questions stand taller before you when are about to get retirement.

Some of the pros and cons of holding and using a credit card could be as follows:

• When you use a credit card, somehow you tend to lose control and tab over your expenditure. This makes your budget a little shaky as you would be required to pay the bill at the end of every month and this would be nothing but an additional burden for you even though you have spent on your own needs only.
• If you forget to pay the bills or do not have the accessibility to pay it then you will be charged with huge penalties and again, in the absence of a recurring income you may tend to take it as a burden.
• As there is no certain income after you retire but the “daily expenditures” would go on the way they have been, to pay a credit card bill in one go would only add to the feeling of “inadequacy”.
• If you are left with a huge bill and you have met all other expenditures coming your way, make it a point that you clear your pending bills before it is too late. Otherwise, your retirement may get melancholic to think of paying the credit card bill and the penalty on the same.
• Try and make most of your expenditures through cash so that you can control and have an instant count of the money lying with you and the amount you have spent.

Credit Card is a good weapon for those who are still earning and are far away from retirement, but, those who are very close to it should get disciplined about using a card which could turn out to be a pain rather than a help.

Credit Card

Credit Cards are one commonly used tool by many of us today. In fact, there is hardly anyone who does not use such a card because of its luring facilities and to a great extent the easy usage for those who want instant credit facility.

However, timely evaluation is needed to check if you are vulnerable to get cheated through your credit card or not.

There are following “Credit Card Security tips” to prevent your card getting cheated:

• Master Card Zero Liability

When you use such a card, the purchases cannot be made over the phone or even without the signature of the card holder. So the card automatically gets protected when only the account holder is able to make the transaction.

• Card Verification Card (CVC)

There is a CVC associated with every card, while you make a purchase you will basked to enter this code for verification.

• Personal Identification Number (PIN)

There is a PIN associated with most foot he credit cards which is unique for every card. While making a transaction, you will be asked to emerge this number which ideally should be known by the card holder only.

Some of the other security tips are

• Use only a secured system for making any transaction, in fact, a cyber café or any such public place should be avoided for using the credit card.
• Respond to emails from a trustworthy source and not to all of them, there could be a hoax mail asking for your personal details by luring you with some other benefit.
• Use Anti-virus and spyware software on your system so that your information is not decoded through your gadget.
• Always set an alert on your mobile for the transactions you make through your credit card.
• Check the credit card statement quite frequently so that you know the exact number and amount of transition you have made through your card.
• Every credit card company has a toll free number which works round the clock. The minute you realize that your card has been cheated, make sure that you inform the concerned department immediately. Take down the “service number” of the conversation you have made with the customer care executive of the company. This would be needed for future reference.

Credit Card is an essential necessity as it saves us from the cumbersome task of carrying cash, yet one has to be careful in the present era wherein frauds seem to be technically sounder than the protectors.

The Reasons For Saying No To The Retail Credit Cards:

 They come with high interest rate: When compared with average credit card, retail credit cards more often are heavy on interest rates, actually much higher than any on the market. The latest information on Forbes reveals that the average interest rate of retail card in the market hovers around 24 percent with both bad and good credit consumers getting even deal.

In comparison, the average rate of interest on regular credit card for a consumer with good credit was closer to around 15 percent. So, it’s quite evident that the good consumers who sign up on spot for the retail credit cards have compulsorily to pay around 9 percent more in the form of interest which certainly cannot be a wise decision.

No advantage of intro periods: It’s an understood thing in the credit card market that the best time to buy and use a card is when it is being introduced for the first time. This way, the consumer gets lot of good offers from 0 percent APR for a year or more for purchasing and transferring of balance, valid all through the introductory period.  With retail credit cards, no such offers are attached and hence they come across far less benefiting. This is because in case of retail credit cards, the introductory period offer is limited to only the first purchase that is made immediately after buying the card on spot, which can gain you an overall net saving of 15 to 20 percent (depending upon scheme of the retailer this may vary).

From then on, as a consumer you have to gear up to pay high interest (more than 20 percent) in case the bills are not paid on time.

Limited rewards: Regular credit cards come with various other offers whereas with retail credit cards such rewards are extremely less.

All these reasons are enough to sideline the request for retail credit card on offer this festive season.

Charge Back Credit Cards

Credit Cards have always proven to be protectors in the time of crisis. They support you when you have no other option to fall back upon. They make you continue with your story without any interruption.

However, there are moments a dispute may arise with the merchant whom you have made the payment through credit card. You have every option of charging back the money without disturbing your credit score.

Ways to charge back

• If you find your transaction not to be reciprocating enough and you find that the order is not the same for what you made the payment then you can charge a refund back from the retailer.
• The investigator looking into the matter, will judge the case and if he finds your side to be strong enough, you will be refunded your money back.
• Generally on such occasions the money is removed from the account of the retailer and is deposited in the buyer’s account.  
• This facility never gives you the scope of placing disputes every now and then.
• When you don’t receive the order placed or receive the same in a deformed manner, then you must fist approach the customer care service of the retailer or the brand and then you should move to any such investigator who will look into the details of your case.
• If the merchant refunds your money in good spirit then you need not take such a step.
• Your case will be tried under “Fair Credit Billing Act”.
• In case, you don’t like the product and hence you want your money back, then you have no grounds to lodge your complaint. In such a situation you cannot claim any charge back.
• For resolving any dispute you must report the matter to the concerned authority within 60 days of the issue.
• Remember to retain documents like “sales slips, contracts and any other document” related to the transaction made between you and the retailer.
• A claim without any support of document will not be entertained by any of the investigators. Rather, the case will go against you.

Claiming any pay back will not have any impact on your credit score, yet, you need to collect all possible documents to prove your point and get the money back after the investigation turns in your favor.

Credit Card Fraud

When you’re victimized of credit card fraud, the first and foremost reaction is “loss of control”. Whether you have lost your card or someone has taken it away from you and has also used it for his own benefit, irrespective of these points the loss has to be borne by you till the time you find a way out. TO prevent further damages to yourself you have to calm down and get composed. You can never reach the bottom of the issue unless you’re cool from within.

After you’ve composed yourself, follow the given steps

• Get back your inner balance

It is very important that you first get back your mental balance which is required to proceed ahead with the rest of the steps. It is difficult to suggest so but with a disbalanced attitude you’re likely to make more mistakes. So, get composed, take a couple of deep breathes and sat thinking in the right direction.

• Inform the Credit Card company

The next immediate step should be to inform the credit card company about being victimized. The information can be sent both orally first and then in writing. You can either personally visit the nearest office or you can also send them an email. You must request them to deactivate the card as of now, so that the cheat cannot victimize you even further.

• Inform the bank

You must communicate your problem to the bank you have an account with, so that they don’t make any ECS payments pertaining to your credit card. Also, caution them in writing for not making any payments to any unknown person without your permission.

• Inform the cops

This is another nag step. You should take the initiative of informing the cops and letting them know the way you’ve been victimized. If someone cheated you on fact and took your credit card then doesn’t hesitate to narrate the whole story or else you can be transparent with the cops about the ways you’ve been victimized.

• Get a credit Report

Immediately request your credit card company to get you a credit report so that you know your scores in black and white. You can submit a copy of the statement to the bank and even to the cops.

These are a few steps you should take immediately after you realize that you’ve been a victim of Credit card scam.