Banks, Credit card and loans - Secured and Unsecured

Should I consolidate my credit card debt?

2009-02-18T10:22:00.000-08:00

If they all have the same interest rate, there's no real need to consolidate these balances. Think about it. If you have $2,000 outstanding on two credit cards at 16.9 percent, what's the savings in having the balance on one card at the same interest rate?

Most credit card agreements have higher interest rates for cash advances and will also charge a fee for the transaction, too, so it's not going to be a less-expensive approach to paying down your credit card debt.

People typically look to debt consolidation to reduce their interest rate or extend the term of the loan. Credit card debt is open-ended or revolving credit, so shifting balances from one card to another isn't going to extend the loan term. You've stated that all of the credit cards are at the same interest rate, so that's not a reason to move balances.

About the only reason for you to consolidate these balances is if one credit card calculated the minimum payment as a lower percentage of the outstanding balance then the other and you were trying to free up some funds in your monthly budget. You're trying to pay things off, so you should be paying more than the minimum payment.

A balance transfer to another credit card at a lower interest rate could help you pay down your balances faster because more of your monthly payment would be going toward principal instead of finance charges.

But the credit card companies are getting pretty sophisticated in putting up barriers so cardholders don't keep moving on to the next teaser rate, so make sure you understand the credit terms and balance transfer charges if you decide to take this approach. Bankrate.com has a feature that can help you decide if moving balances is the right decision for you.

(http://www.theweb-loans.com/)

List of common student credit cards

2009-02-12T08:17:00.000-08:00

The credit terms for student credit cards, such as amount of past credit required to qualify, are lenient. Which gives new credit seeker like undergrade students, room to build credit.

But if you know you have limited credit, and its bad credit, I would suggest not to explore these cards. These cards are designed specifically with the college student in mind.

List of the student credit cards:-
- Citi® Dividend Platinum Select® Card for College Students
- Discover® Student Tropical Beach Card
- Citi® Platinum Select® Card for College Students
- Citi® mtvU™ Platinum Select® Visa® Card for College Students
- Citi® Driver's Edge® Card for College Students
- Discover® Student Clear Card
- Discover® Student Platinum Card
- Citi® Bronze® AAdvantage® MasterCard® for College Students
- Discover® Student Monogram Card
- Chase Student Flexible Rewards Card
- Universal Entertainment Student MasterCard®
- Capital One® Platinum
- Bank of America Student Visa® Platinum Plus® Credit Card
- Prepaid Debit Cards for Students
- All-Access Visa Prepaid Card
- Wired Plastic Prepaid Visa
- Baby Phat Prepaid Visa® RushCard
- Eufora® Pre-Paid MasterCard®
- Prepaid Visa® RushCard
- Opt One Prepaid MasterCard®
- Western Union® Prepaid MasterCard® Card

CREDIT CARDS FOR PEOPLE WITH BAD CREDIT

2008-03-18T16:28:00.000-07:00

Recently turned down for an unsecured credit card? Bad credit is no problem for the unsecred credit card companies on this page.

Imagine Card
Imagine® the Possibilities with an Unsecured Gold MasterCard® Credit Card even if your credit is less than perfect!.

Total Visa® Card
No Credit? Bad Credit? Denied Credit? - There is hope! Apply now for the Total Visa® Credit Card! This credit card provides you with an instant On-Line Decision!

Centennial Gold MasterCard® INSTANT CREDIT DECISION!
The Centennial Gold Mastercard offers a Low APR on Purchases, access to online credit education to help you improve your credit, and 24 hour account access by phone. Apply for a Centennial Gold credit card now!.

Tribute® MasterCard® Gold
Have bad credit? Apply for an unsecured Tribute® MasterCard® Card and receive a 30-second online response - no fee to apply

Continental Finance MasterCard®
This credit card will give you results in seconds , Credit bureau reporting , No security deposit (completely unsecured), Credit limit increases , No minimum monthly income requirements , Upon approval free benefits with automatic enrollment in the Go For the GOLD Program

Orchard Bank MasterCard® rebuilds your Credit
The Orchard Bank MasterCards are designed for those with little or damaged (bad) credit and those ready to move up to Gold. We've helped millions of people obtain credit who may not have traditionally qualified for an unsecured credit card. Let us help you get approved for your own unsecured credit card

Rewards 660 Visa® Card
Bad Credit? Bankruptcy? No Credit? No Problem! The Power of a Visa® Card can be yours!

Orchard Bank Platinum MasterCard Rebuilds Your Credit The Orchard Bank Platinum MasterCard® is designed for those with little or damaged credit. We've helped millions of people obtain credit – Let us help you too.

Orchard Bank Silver MasterCard rebuilds your Credit If you have little or damaged credit, apply now for an Orchard Bank Silver MasterCard®!

CreditSoup® Program
CreditSoup is a free service designed to connect you with a lender that best fits your credit needs. Whether you have no credit, bad credit, or excellent credit, CreditSoup® makes finding you an unsecured credit card as easy as 1-2-3!

First PREMIER Bank MasterCard/ Visa INSTANT CREDIT DECISION!
Less than Perfect Credit? Then we have the card for you! Accepted where you see the MasterCard or Visa logo. Enjoy a Low APR on purchases

Free credit Search
Free Credit Search- Good Credit and Bad Credit Credit Cards Available. Secured & Unsecured Credit cards offered along with home loans. Easy customized application process. They also have a nice section with tips about applying for unsecured credit cards & loans even if you have bad credit.

USA Platinum Catalog Card
Unsecured credit line up to $7,500! Great for establishing credit. Bad Credit O.K *See website for terms & conditions

Get $5000 with an Unsecured Gold Card!
Now you can get *Guaranteed instant online Approval for an unsecured Gold Credit Card with a $5,000 credit line. That's right!! As long as you are at least 18, a US resident with at least $800 in monthly household income and no undischarged bankruptcies, your APPROVAL IS *GUARANTEED! Enjoy great merchandise while establishing your credit because the USA GOLD CARD reports your credit to a major credit bureau. Apply today for your Unsecured Gold Credit Line! *See website for terms & conditions

$7500 Unsecured Credit Line! Platinum Plus Card
$7500 Unsecured Platinum Credit Line. No Credit Checks and No Credit Turndowns. *See website for terms & conditions

America One Unsecured
If you are seeking money in the form of an unsecured small business or personal loan, you have located a useful source to assist with your financing needs. At America One, we know just how frustrating it is to borrow in today’s economic environment. Fortunately, in the past year alone, we’ve helped our clients receive millions in approvals.

How do I dispute a credit card purchase?

2007-08-19T22:23:00.000-07:00

Don't you just hate it when you buy a product and bring it home, only to discover the product is damaged or poorly made?

To make matters worse, the merchant refuses to replace it or give you a refund.

If you made the purchase with a credit card, your card company may be able to help. Credit card purchases are protected under the Fair Credit Billing Act. This law gives the consumer the right to withhold payment on poor-quality or damaged merchandise purchased with a credit card.

Under the law, you do need to make a real effort at resolving the dispute with the merchant before you can ask your issuer to "charge back" the merchant and credit your account. There are a few other catches as well.

The sale must be for more than $50 and have taken place in your home state or within 100 miles of your home address. Few issuers enforce the $50 or 100-mile rule on purchases, but all are free to do so.

So there's a chance that you'll be able to dispute credit card charges on shoddy merchandise purchased outside your home state, over the Internet, by mail order or phone order.

"Many credit card companies will let you dispute that," says Jeanne M. Hogarth, a program manager in consumer policies at the Federal Reserve Board. "Technically, they don't have to."
Because card companies are eager to hang on to their customers, especially good ones, they'll often go above and beyond what's required of them by law when a customer is unhappy with a card purchase.

For example, Capital One issues a temporary credit to a customer's account when a purchase is in dispute.

"If a customer sends a dispute letter, we'll issue a temporary credit so they won't have to pay for it," says Diana Don, a spokeswoman for Capital One. "We're giving the benefit of the doubt to the customer."

Capital One then contacts the merchant. If Capital One agrees with the customer, the refund stands. If Capital One sides with the merchant, the customer must pay for the item, plus finance charges.

Some card companies may be less generous when a big-ticket item is in dispute or if you made the purchase while traveling overseas. It all depends on the card company and how much they value you as a customer. They can point to the limits spelled out in the Fair Credit Billing Act whenever they want to."This is goodwill and that's all it is," Hogarth says. "At any time a credit card company can fall back on what's required by law."

To get the Fair Credit Billing Act to work for you, here's what you need to do:

First off, try to resolve the problem with the merchant.

"Give them the chance to fix it. Sometimes they do," says Cary L. Flitter, a consumer attorney in Narberth, Pa.

"If you use common sense and courtesy, it usually gets the problem solved before it becomes a Fair Credit Billing problem."

If possible, take the defective merchandise back to the store. Otherwise, call the store and ask for a manager or supervisor. Keep records of each conversation.

"You always want to have a paper trail," says Deborah McNaughton, author of The Insider's Guide to Managing Your Credit. "Make notes of dates and times and who you talked to."

If the merchant won't budge, put your complaint in writing. Outline the dispute in a short, detailed letter to the merchant and send it certified mail.

Be sure to make copies of the complaint letter sent to the merchant. One copy will be sent to your credit card company as proof that you tried to resolve the dispute with the merchant and one copy will be kept in your records.

The next step is contacting your credit card company and alerting them of the disputed purchase amount. To be protected under the Fair Credit Billing Act you'll need to do this in writing and within 60 days after the bill with the disputed charge was sent to you.

In your letter, be sure to include your credit card account number, the closing date of the bill on which the disputed charge appears, a description of the disputed item and why you're withholding payment. Enclose a copy of your complaint letter to the merchant and any other documentation you may have supporting your position.

Send your letter by certified mail, return receipt requested, to the credit card company at the address for "billing inquiries" and not the address for payments.

A credit card company cannot charge you finance charges on a disputed charge. But you will still be charged interest on any other purchases you may have made. Be sure to include a payment for these purchases with your letter.

Don't delay in the mailing of your dispute letter, especially if it includes a payment. Under the Fair Credit Billing Act, an issuer can take as many as five days to credit a payment not sent to the payment address.

Your issuer will then contact the merchant and hear its side of the story. Two things can happen. If the card company sides with the merchant, you'll have to pay for the disputed item, plus any finance charges. If the card company sides with you, you don't have to pay a penny.

To dispute a bill, it's best to move quickly. You'll want to inform your card issuer of the disputed charge before it's due for payment. You can't withhold a payment once a bill is paid.(http://www.theweb-loans.com/)

How do I get the best credit card deal?

2007-04-17T10:21:00.000-07:00

When considering a particular offer, make sure you know ALL the details of how your card will work. Be sure to study its terms and costs before signing on. Here are some key questions to ask.

Does the card have an annual fee?If you're looking for a no-frills, low-rate card offer, there's no reason to pay an annual fee. Avoid cards that charge them. Many rewards cards, such as the wildly popular air-mile credit cards, and some super high-end prestige cards charge annual fees in exchange for rewards or perks and services. Weigh these offers carefully.

What is the card's APR?The lower the interest rate, the less money you'll pay when you carry a balance. Does the card come with a super-low introductory rate? How long does the teaser-rate last? Will you be able to pay off your card balance before the teaser rate expires?

Is the APR fixed or variable?About 70 percent of all credit cards have variable rates. The interest rate on a variable-rate credit card fluctuates with an index. When the index shoots up, so does the card rate. When the index slips down, down goes the card rate. Be aware that the slide down happens much slower than the rate increase.

Some variable-rate card accounts are re-priced each month. Others are re-priced each quarter. Most issuers use The Wall Street Journal prime rate as an index. To check which way the major indexes are moving, check out this rate table.

Unlike variable-rate cards, the interest rate on a fixed-rate card does not fluctuate each month or each quarter. If you sign on for a card with a fixed 12.99 percent rate, there's a good chance you'll be paying 12.99 percent for quite awhile.

But it's important to realize that a fixed-rate card deal could change at any time. According to federal law, issuers must give written notice of rate increases to fixed-rate cardholders a mere 15 days before the new rate takes effect.

Does a variable-rate card offer have a floor?Some variable-rate credit cards come with floors, also called minimum APRs. Once your card hits its floor, that's as low as it goes. Your interest rate won't drop any lower, regardless of future Fed cuts.

Twenty-four percent of variable-rate credit cards surveyed by Bankrate.com have floors. Seventy-five percent of those cards had hit their minimum APRs as of October 2001. The only direction the rate on these cards can go is up. Be sure to check for a minimum APR before signing on for a variable-rate card offer.

How long is the card's grace period?Most cards offer grace periods to customers who pay off their balances each month. A grace period is the period from the statement date to the payment-due date. If payment is made in full by the end of the grace period, no interest is charged. But if only a partial payment is made, interest kicks in at the end of the grace period. Many issuers have whittled down the interest-free grace periods on credit cards from 25 days to 20. Some credit cards have no grace periods whatsoever. Avoid them.

What are the card's penalty policies?While nobody plans on missing a credit card payment or going over the limit, it's important to realize what will happen if you do.

Penalty rates and fees are on the rise. Some card issuer's policies are quite severe -- as high as $35. Be sure to check. Pay careful attention to what will happen if you pay late during a card's introductory period. Will that super-low teaser rate disappear after one little mistake?

Found the card you want? Ready to transfer a balance? Before you do, check for fees.

Some cards charge you a fee for every balance you transfer to the card. Both First USA and Citibank charge a fee equal to 3 percent of the balance being transferred. First USA caps its fee at $35. Citibank's fee is capped at $50. It's best to avoid offers with hefty transfer fees.

Continue making minimum payments on your old card while waiting for a balance transfer to take effect, which could take four weeks. If you don't, your old issuer could slap you with a late fee. This Bankrate.com worksheet will guide you through the balance transfer process.

(http://www.theweb-loans.com/)

What is a good first credit card?

2007-04-15T20:39:00.000-07:00

There are banks that specialize in extending Visa and MasterCard credit cards to applicants who are just establishing a credit history. Pick a bank, and see how you do. Don't apply to more than one because credit applications show up on your credit report, and multiple rejections make you look desperate for credit.

If that application doesn't get you a credit card, there are two basic approaches. The first is to start with department store credit cards or oil company credit cards and build a credit history using the cards. These cards are easier to obtain than Visa or MasterCard charge cards.

Establishing a payment history will help you qualify down the road for the major credit cards. Apply to one, meaning either a department store or oil company, and see if you are approved. Wait a few months before applying for another card.

A second approach is to get a secured credit card. With a secured card, you place a deposit with the credit card company and they provide you with a credit card. The credit limit is typically equal to the deposit. But, be careful which secured card you choose. Some of these cards carry extremely high fees -- so high that you could end up spending most of your deposit in fees.

Carrying a small balance on the department store cards or secured card isn't a bad idea because it shows that you can handle an outstanding balance. I don't think it makes as much sense to carry a balance on an oil company card because it conveys a message that you can't keep current on your gasoline purchases.

It's critical that you stay current on all of your bills. Late payments, missed payments or other payment problems will undo all your efforts to build a credit history to the point where you have ready access to credit.(http://www.theweb-loans.com)

Sample personal credit card terms and condition (Part 3: more disclosures...)

2007-04-12T09:57:00.000-07:00

I am applying to Capital One Bank (Capital One®) for a credit card account. Everything that I have stated in this application is correct to the best of my knowledge. I understand that approval is based upon satisfying Capital One's credit standards and that I may be ineligible if I have responded to a previous offer for a credit card issued by Capital One within the last 45 days or if I have been approved for a previous Capital One offer.

Capital One maintains the right not to open my account if:

(a) the information provided on or with my application is incomplete, inaccurate or unverifiable, or I no longer meet Capital One's standards for creditworthiness;

(b) my name and/or mailing address has been altered;

(c) Capital One receives my application after it has expired. I understand that I must be at least 18 years of age and have a valid social security number, unless otherwise specified to qualify for this offer.

I understand that, unless the offer discloses a specific credit line, the exact amount of my credit line will be determined by Capital One after review of my application and other information. I understand that you will retain my application whether or not it is approved. You are authorized to answer questions about your credit experience with me. If I am applying for a Transfer Request, I authorize Capital One to bill my approved Capital One credit card account for the amount(s) listed for transfers.

I understand that I am applying for a transfer amount up to the total amount listed on my Transfer Request. I understand Capital One will advise me if it is unable to process my payment request for any reason. In addition, Capital One will not be responsible for any charges billed to me for the account(s) requested for transfers and Capital One will process only those Transfer Requests that can be transferred under my assigned credit line.

Arbitration:
I understand that the Customer Agreement contains an Arbitration Provision that may limit my legal rights, including my right to go to court, to have a jury trial, and to participate in class actions. I will receive the Capital One Customer Agreement and am bound by its terms and future revisions thereof. This offer is nontransferable and is void to residents of the dependent areas of the U.S. An applicant, if married, may apply for a separate account. This is not a business account. © 2007 Capital One Services, Inc. Capital One is a federally registered service mark. All rights reserved. Capital One supports information privacy protection: see our website

STATE SPECIFIC INFORMATION

California Residents:
Applicants:

1) may, after credit approval, use the credit card account up to its credit limit;

2) may be liable for amounts extended under the plan to any joint applicant. As required by law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations.

Ohio Residents:
Ohio anti-discrimination laws require creditors to make credit equally available to all creditworthy customers and that credit reporting agencies maintain separate credit histories on individuals upon request. The Ohio Civil Rights Commission administers these laws.

New York and Vermont Residents:
Capital One may obtain at any time your credit reports for any legitimate purpose associated with the account or the application or request for an account, including but not limited to reviewing, modifying, renewing and collecting on your account. On your request you will be informed if such a report was ordered. If so, you will be given the name and address of the consumer reporting agency furnishing the report. New York residents may contact the New York State Banking Department (1-800-518-8866) for a comparative list of credit card rates, fees, and grace periods.

Married Wisconsin Applicants:
No provision of any marital property agreement, unilateral statement, or court order applying to marital property will adversely affect a creditor's interests unless prior to the time credit is granted, the creditor is furnished with a copy of the agreement, statement or court order, or has actual knowledge of the provision.

YOUR BILLING RIGHTS KEEP THIS NOTICE FOR FUTURE USE. This notice contains important information about your rights and our responsibilities under the Fair Credit Billing Act.

NOTIFY US IN CASE OF ERRORS OR QUESTIONS ABOUT YOUR BILL. If you think your bill is wrong, or if you need more information about a transaction on your bill, write to us on a separate sheet as soon as possible at the address listed on your bill. We must hear from you no later than 60 days after we sent you the first bill on which the error or problem appeared. You can telephone us, but doing so will not preserve your rights. In your letter, please provide the following information:

Your name and account number. The dollar amount of the suspected error. Describe the error and explain, if you can, why you believe there is an error. If you need more information, describe the item you are not sure about. If you have authorized us to pay your credit card bill automatically from your savings or checking account, you can stop the payment on any amount you think is wrong. To stop the payment, your letter must reach us three business days before the automatic payment is scheduled to occur.

YOUR RIGHTS AND OUR RESPONSIBILITIES AFTER WE RECEIVE YOUR WRITTEN NOTICE. We must acknowledge your letter within 30 days, unless we have corrected the error by then. Within 90 days, we must either correct the error or explain why we believe the bill was correct.

After we receive your letter, we cannot try to collect any amount you question, or report you as delinquent. We can continue to bill you for the amount you question, including finance charges, and we can apply any unpaid amount against your credit limit. You do not have to pay any questioned amount while we are investigating, but you are still obligated to pay the parts of your bill that are not in question.

If we find that we made a mistake on your bill, you will not have to pay any finance charges related to any questioned amount. If we didn't make a mistake, you may have to pay finance charges, and you will have to make up any missed payments on the questioned amount. In either case, we will send you a statement of the amount you owe and the date that it is due. If you fail to pay the amount that we think you owe, we may report you as delinquent.

However, if our explanation does not satisfy you and you write to us within ten days telling us that you still refuse to pay, we must tell anyone we report you to that you have a question about your bill. And, we must tell you the name of anyone we reported you to. We must tell anyone we report you to that the matter has been settled between us when it finally is. If we don't follow these rules, we can't collect the first $50 of the questioned amount, even if your bill was correct.

SPECIAL RULE FOR CREDIT CARD PURCHASES. If you have a problem with the quality of property or services that you purchased with a credit card and you have tried in good faith to correct the problem with the merchant, you may have the right not to pay the remaining amount due on the property or services. There are two limitations on this right:

You must have made the purchase in your home state or, if not within your home state, within 100 miles of your current mailing address; and The purchase price must have been more than $50. These limitations do not apply if we own or operate the merchant, or if we mailed you the advertisement for the property or services.

IMPORTANT INFORMATION ABOUT YOUR CREDIT CARD ACCOUNT FINANCE CHARGE.
Transactions which are not subject to a grace period are assessed finance charges-

1) from the date of the transaction or

2) from the date the transaction is processed to your account or

3) from the first calendar day of the current billing period. Additionally, if you did not pay the "New Balance" from the previous billing period in full, finance charges continue to accrue to your unpaid balance until the unpaid balance is paid in full.

This means that you may still owe finance charges, even if you pay the entire New Balance indicated on the front of your statement by the next statement closing date, but did not do so for the previous month. Unpaid finance charges are added to the applicable segment of your account. Cash advances (the cash advance segment) and special transfers (if your account includes a special transfer segment) may not avoid finance charges.

Cash Advance, Purchase/Balance Transfer/Other Charges and Special Transfer or Special Purchase Segments (If Your Account Includes a Special Transfer or Special Purchase Segment).

Finance charge is calculated by multiplying the daily balance of each segment of your account (e.g., cash advance, purchase, special transfer, and special purchase) by the corresponding daily periodic rate(s) that has been previously disclosed to you.

At the end of each day during the billing period, we apply the daily periodic rate for each segment of your account to the daily balance of each segment. Then at the end of the billing period, we add up the results of these daily calculations to arrive at your periodic finance charge for each segment. We add up the results from each segment to arrive at the total periodic finance charge for your account. To get the daily balance for each segment of your account, we take the beginning balance for each segment and add any new transactions and any periodic finance charge calculated on the previous day's balance for that segment.

We then subtract any payments or credits posted as of that day that are allocated to that segment. This gives us the separate daily balance for each segment of your account. However, if you paid the New Balance shown on your previous statement in full (or if your new balance was zero or a credit amount), new transactions which post to your purchase or special purchase segments are not added to the daily balances.

To calculate your total finance charge, multiply your average daily balance by the daily periodic rate and by the number of days in the billing period. Due to rounding on a daily basis, there may be a slight variance between this calculation and the amount of finance charge actually assessed.

Determining Daily Periodic Rates. Divide the corresponding Annual Percentage Rate by 365 and round up to the nearest 1/100,000th of 1%, not to exceed the maximum allowed by applicable law. If the daily periodic rates and corresponding Annual Percentage Rates increase, the Finance Charge will increase and your minimum payment may be greater.

Refer to the IMPORTANT DISCLOSURES for daily periodic rates and Annual Percentage Rates. OTHER CHARGES: Copying Charge: $3.00 for a copy of a Periodic Statement and $2.00 for a copy of a transaction (fee imposed per copy).

IMPORTANT INFORMATION ABOUT PROCEDURES FOR APPLYING FOR OR OPENING A NEW ACCOUNT. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. What this means for you: When you apply for or open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you.

(courtesy CapitalOne personal credit card)

Sample personal credit card terms and condition (Part 2: Things You Should Know About This Card)

2007-04-07T09:52:00.000-07:00

Can You Increase My APRs?
Your variable APRs can go up or down each quarter as the LIBOR goes up or down. Your APRs can increase to the Default APR if your payment is received late (3 or more days after your payment due date) twice within any 12 billing periods. If we increase your APRs for late payments, we will return you to your prior APRs if you make at least the minimum payment on time for 12 consecutive billing periods. If you have an introductory APR that has expired, we will not return you to that APR. If we change your APRs for reasons other than when LIBOR changes or you paid late as disclosed above, we will notify you in writing of your options in advance, including the right to opt out of certain changes.

What About Any Other Terms Of My Account?

We may change any other terms of your account, other than APRs, at any time. If we change any of these terms, we will notify you in advance of your options in writing, including the right to opt out of certain changes.

Do You Engage In Universal Default?
We do not engage in a practice known as "universal default." Universal default permits a credit card company to increase your APRs simply because you fail to make a payment on a loan with another lender or your credit history contains other negative information.

How Do You Calculate My Variable Rate?
We calculate your variable rate by adding a percentage to the LIBOR published in the "Money Rates" section of The Wall Street Journal on the 25th day of December, March, June and September. If the Journal is not published on that day, then see the immediately preceding edition. If LIBOR changes, your new rate will take effect on the first day of your January, April, July and October billing periods.

What About Future Offers?
We may offer you new products and services in the future, including new opportunities to transfer balances. These new products and services may have different APRs, fees and other terms, which we will explain in the offer.

How Do You Determine My Credit Line?

We determine your credit line based on the strength of your credit history and the information you provide in your application. You may submit a transfer request of up to $20,000 with this application. If you submit a transfer request, you may increase your potential to receive the highest credit line. The minimum credit line is $500.

How Do You Apply My Payment?
We will apply your payment to pay off lower-rate balances before paying off higher-rate balances.

How Do You Calculate My Minimum Payment?
Your minimum payment will be the greater of 3% of your outstanding balance or $10. If your balance is less than $10, your minimum payment will equal your balance. Please remember that APR increases and fees, including late, overlimit and returned payment fees, may increase your minimum payment.

Is There A Minimum Income Requirement For This Card?
Yes. The minimum gross annual income required for an account is $10,000.
Things You Should Know About This Rewards Program
* How Do I Earn Cash? Every time you use the card, you'll earn 1% cash back on your net purchases (purchases minus any credits or returns). The following items will not earn cash or bonus cash: cash advances, transferred balances, any checks used to access your account, finance charges, fees of any kind, service charges, unauthorized charges and ATM transactions.

How Does My Annual Bonus Work?
You will be awarded an annual bonus equal to 25% of your prior year's rewards earnings through October 31st. The bonus will be applied to your rewards balance each year during the month of November and will appear on your statement within two billing cycles.

Will My Cash Ever Expire?
Your cash is yours for the life of the account—it won't expire. But if your account is closed, you'll lose any cash you haven't redeemed.

Is There A Limit To The Amount Of Cash I Can Earn?

There's no cap to the amount of cash you can earn on purchases.

How Do I Get My Cash?
You can get your cash any time you want by calling the Rewards Center toll free. To redeem your cash, your account must be open and in good standing, which means it isn't past due, overlimit, fraudulent, restricted, part of a consumer credit counseling program or in a bankruptcy settlement.

Can I Redeem For Something Other Than Cash?
You can also redeem for gift cards starting at $20. Rates for this redemption option vary and are subject to change without notice. To register your account and see a complete description of current redemption offers.

(courtesy CapitalOne personal credit card)

Sample personal credit card terms and condition (Part 1: Fees and charges)

2007-04-07T09:45:00.000-07:00

ANNUAL PERCENTAGE RATE (APR) for purchases‡ 13.88% (0.03803% daily periodic rate). Other APRs Balance transfer APR: Same as for purchases. Cash advance APR: 19.78% (0.05419% daily periodic rate). Default APR: 19.9% (0.05452% daily periodic rate).

See explanation below.‡ Variable Rate Information Your purchase APR may vary quarterly. The rate will be determined by adding 8.53% to the LIBOR. Your cash APR may vary quarterly. The rate will be determined by adding 14.43% to the LIBOR. Rates in effect 04/01/07.

Grace period for repayment of the balance for purchases. 25 days from the date of the periodic statement on new purchases (provided you have paid your previous balance in full by the due date).

Method of computing the balance for purchases. Average daily balance (including new purchases).

Membership Fee None.

Minimum finance charge For each billing period that your account is subject to a finance charge, a minimum total FINANCE CHARGE of $0.50 will be imposed. Miscellaneous Fees Cash advance fee: 3% of amount of the cash advance, but not less than $5.

Late payment fee: $29 if your balance at the time the late payment fee is assessed is less than $1,000. If your balance at that time is greater than or equal to $1,000, fees for late payments will be $35. Over-the-credit-limit fee: $29. Balance transfer fee: None.

Returned payment fee: $29. Foreign transaction fee: None.

(Courtesy CapitalOne Credit Card )

Credit Card - The Universal Default Clause

2007-03-14T13:24:00.000-07:00

The Universal Default Clause - this is something that most of the people do not digg much during credit application. People are finding once they victimised.

If you own a credit card, you know by now that if you're late with a payment the credit card company will charge you a late fee in addition to raising your interest rate. But did you know that they can raise your interest rate if you've made a late payment on any of your other cards, including those issued by other companies?

Not only that, but your interest rates can skyrocket to 30 percent or more if you make a late payment on your car loan, mortgage, or even your phone bill!

"How can that be legal?" you may ask. The answer is found in the fine print of your credit card agreement, and it's called a universal default clause. According to the Institute of Consumer Financial Education, currently almost 40 percent of credit card issuers apply this policy to their customers.

Some steps that will keep you from these Clause and Rake hikes:

1. Stay away from credit cards with a universal default clause.
2. Know your current obligations.
3. Run your credit report.
4. Pay your bills on time.
5. Be proactive and call your lender for relief.
6. Fight back for your money

Indian govt ready to take more measures to curb inflation

2007-03-14T11:03:00.000-07:00

Indian Finance Minister P Chidambaram expects interest rates to moderate once the current inflation level declines and made it clear yesterday that the government was ready to take further fiscal, monetary and supply side steps to curb inflation.

Bill Gates still top on the list but rising billionaires catching up

2007-03-09T10:42:00.000-08:00

Microsoft co-founder Bill Gates is still the richest man in the world, but his lead over other entrepreneurs is narrowing, according to Forbes magazine's list of billionaires published Thursday.

Despite Gates leading the rich list for a 13th straight year with a tidy nest egg of 56 billion dollars, US investment guru Warren Buffett's personal fortune climbed to 52 billion, halving the software mogul's lead.

There were now a record 946 billionaires in the world, up more than 150 from last year, with Forbes attributing the increase to a commodities boom, the march of technology and the relative weakness of the US dollar.

The list's total net worth grew 35 percent from last year to a staggering 3.5 trillion dollars, with Mexican telecoms mogul Carlos Slim Helu jumping into third place with a massive 19 billion dollar increase in his net worth.

(based on Forbes survey)

Industry being revitalised in Iraq: US official

2007-03-09T00:10:00.000-08:00

Industry is being revitalised in Iraq, despite the raging violence, and creating lucrative openings for entrepreneurs brave enough to do business here, a top US official insists. Paul Brinkley, the Pentagon's deputy under secretary for business, has been touring Iraq for the past week with some 45 US business executives.

He told the news agency in Baghdad that many dormant state-owned factories would start firing up again "within months." Already a plant producing vehicles has reopened in Iskandiriyah, about 40 kilometres south of Baghdad, providing valuable job opportunities for locals. "Others will soon follow," he promised. Brinkley told journalists, who donned helmets and bullet-proof vests to make the trip out of Baghdad to the US military's Camp Victory Saturday, that economic growth could help quell the city's chronic sectarian violence.

"There is a recognition that security and economic prosperity go hand in hand, and that unemployment in Iraq is contributing to the frustrations of people and creating sympathy for insurgents," Brinkley said.

Since a US-led coalition invaded Iraq in 2003 to topple the regime of Saddam Hussein, most factories have been lying idle or operating at very low rates of production, he said. Many of these possess modern equipment, while others have machinery at least as good as many enterprises operating efficiently in India and China. "They can quickly be revitalised," Brinkley said. "The factories served as the engine for the Iraqi economy and must be restarted."

The US government, he added, is working with the ministries of finance and industry as well as with Deputy Prime Minister Barham Saleh "to get this economic engine running again so that thousands ... can regain employment." Enterprises that could be restarted fairly easily, he said, included upstream and downstream oil activities, textiles, heavy machinery, chemicals, minerals and electronics, among others.

8% growth target China sets for 2007

2007-03-06T21:29:00.000-08:00

China plans to gear down its economic hike to eight percent, a level lower than the staggering 10.7-percent GDP (gross domestic product) growth rate in 2006, said Premier Wen Jiabao in a government work report on Monday.

"The most important task for us is to promote sound and fast economic growth," said the premier to 2,890 lawmakers from around the country at the opening meeting of the Fifth Session of the Tenth National People's Congress (NPC), China's top legislature.

"We need to greatly improve the quality and efficiency of economic growth," Wen said.
The economy on a fast track was not shadowed by "significant inflation" last year, noted the premier.

US economy suddenly appears vulnerable

2007-03-05T10:53:00.000-08:00

WASHINGTON, Mar 4 (AFP): The US economic expansion suddenly seems more fragile than thought just weeks earlier, after a sharp downward revision to the past quarter's growth and renewed fears about the slump in real estate.

The latest revision to US gross domestic product (GDP) showed the world's largest economy expanded at a tepid 2.2 per cent pace in the fourth quarter, instead of the 3.5 per cent growth spurt in the official estimate a month earlier.

That was the sharpest downward revision in a decade, and was attributed to weak business spending and a drawdown of inventories from cautious firms. Still, most forecasters say the economy will muddle through 2007 at a sluggish pace, in line with Federal Reserve forecasts.
But some say the picture is more shaky than it appeared a few weeks ago. And many are renewing forecasts for interest rate cuts by the Federal Reserve sometime this year to help pick up the pace of economic activity.

Manufacturing has been sluggish, highlighted by the 7.8 per cent drop in durable goods orders last month. And some say the US has yet to see the full effect of the housing downturn, reflected in the 19.1 per cent slide in residential investment in the fourth quarter.

The end of the real estate boom has resulted in high failure rates among risky or "subprime" mortgages, given to borrowers with below-average credit ratings, and some say this crisis could spill over.

"We are seeing cracks in this easy-money-now-not-so-easy environment," said Andrew Busch, analyst at BMO Nesbitt Burns. He said 20 subprime lenders "have either shut down or been forced to shut down" and more failures are expected. While most major banks are not in the sector, a wave of failures could spread throughout the financial system, some warn.

Stephen Gallagher, economist at Societe Generale in New York, said the sub-prime lending pullback "is a mini crisis that raises questions about complacency in general." "It has become a case of extreme illiquidity that tends to shake out weaker hands," he said. Another concern is the rise in the Japanese yen, which could hurt the so-called "carry trade" that provides liquidity to the US and other markets.

These concerns have whipsawed global equity markets, which saw one of the worst weeks in years, sparked by a nine percent plunge in Shanghai's stock market Tuesday. "Hedge funds borrow yen at very low interest rates to fund US investments. When the yen strengthens, it makes the repayment of those loans more expensive," said Dick Green, analyst at Briefing.com.

Cash for honours paper trail leads to Blair

2007-03-04T11:40:00.000-08:00

Detectives have discovered a hand-written note from Tony Blair among new evidence that has widened significantly the cash-for-honours investigation.

It is the first time that the "paper trail" uncovered by Scotland Yard has led directly to the Prime Minister. The note is understood to acknowledge the efforts of Labour's 12 secret lenders who provided £14 million to help the party fight the 2005 election.

The disclosures are deeply embarrassing for Mr Blair, whose problems escalated when Ruth Turner, one of his closest aides, was arrested nine days ago. Labour officials and the lenders deny acting illegally, although the loans were so secret that not even Jack Dromey, the party treasurer, knew about them.

Until now, it was believed that only four of the 12 lenders had been in line for peerages. But detectives are convinced that at one point the Prime Minister intended to put forward Sir Christopher, along with - among others - Sir Gulam Noon, Sir David Garrard, Dr Chai Patel and Barry Townsley.

Tourism fuelling credit card boom in China

2007-03-02T14:17:00.000-08:00

A rapidly increasing Chinese tourism industry is giving a boost to the country's credit card industry. According to a report by Visa International, China is expected to become the world's leading tourist destination by 2020.

'From 2006 to 2010, overseas tourists' Visa card spending is expected to soar to US 250 billion dollars on the Chinese mainland.

With more and more visitors to China, credit cards such as Visa are becoming increasingly common," China Daily quoted Li Sheng, vice-president of Visa Information System (Shanghai) Co Ltd. as saying. According to the report, last year, overseas tourists spent 239 billion yuan (US 29 billion dollars) on the Chinese mainland, up 13 per cent year-on-year. "Of last year's total, 22 billion yuan (US 2.75 billion dollars) was spent using Visa cards.

In the first half of 2006, the amount spent using Visa cards reached 11.76 billion yuan (US 1.38 dollars), up 4.1 per cent year-on-year. The credit card market in China is growing fast mainly because of increased spending," said Sheng. He said most of the inbound tourists to China are from the Asia-Pacific, Europe and the United States.

He said the 2008 Olympics was expected to give a massive boost to tourism in the country, and bring a 30 per cent increase in the Chinese mainland's foreign exchange income, with the figure reaching US 60 billion dollars.

(By ANI)

Rupee seen lower as dollar gains

2007-03-01T20:48:00.000-08:00

The rupee should ease on Thursday after the dollar recovered from a 10-week low against the yen, and traders said more fund outflows from the local stock market could put pressure on the Indian unit.

Foreign funds pulled out $225 million from local equities on Monday and Tuesday, in line with a sell-off in global markets, official data showed on Wednesday.

Indian shares fell 4.01 per cent on Wednesday to their lowest close in four months, dragged down by a global stocks slide and a budget that raised levies on some cement and widened the tax net for software services.
The rupee ended weaker at 44.27/28 per dollar on Wednesday, off an intraday low of 44.37, its weakest level since Jan. 15. It had ended at 44.2200/2275 on Tuesday.

[From Reuters report]

Credit Cards in Bangladesh

2007-03-01T16:34:00.000-08:00

The 'credit card', though a new phenomenon in business and transaction arena which had already won the hearts of millions across the globe, has set its foot in this part of the world with its magical power and becoming a way of life here by offering its handy feature and usefulness. In the advent of Information Technology and globalisation, now shoppers need not worry about money, all they need is willingness and a credit card to buy anything they want at any places across the 'Global Village'.

Worldwide access, acceptability and popularity as well of credit cards have rose to such an extent that it is now posing a threat to theory of old 'hard-cash' possession of currencies amid growing sense of insecurity worldwide. The forward march of 'plastic money', the other name of the credit card, is so rapid that the whole concept of monetary system needs immediate review as it has put a question mark in the very existence of paper money. Physical Feature The credit card is rectangular and looks like a phone card.

It is a layered piece of hard plastic with holograms and security features. It also carries a strip of magnetic tape on the back which is loaded with electronic data including the cardholders details. The strip is read electronically by specialized machines called Point of Sale (POS) Terminals at merchants or Automatic Teller Machines (ATM).Kinds of CardsThere are mainly two kinds of cards-credit card and debit card. By credit card one can purchase from stores called merchants, the price of which is payable at the end of the month through the affiliated banks as per notification. On the other hand, debit card is based on immediate payment system whereby one has to insert card into the ATM (Automatic Teller Machine) located at the key spots in the city. And so it is often called electronic purse.

For debit card one has to have an account in a bank while credit card does not necessitate any such provision. Why it's important?A credit card is a great financial tool. It can be more convenient to use and carry than cash, and they offer valuable consumer protections. Paper money and coin are risky and burdensome for carrying. One can avoid the toll of finger-counting changes in this system. Dollars, Pounds or Taka can be plundered, lost or stolen. But there is no such fear for card. The cardholder is given a code number called PIN (Personal Identification Number) without which the card cannot be used at sales or services points where the PIN is required.

Only the owner of the card will be entitled to use it. In case the card is stolen or lost the clients' bank will issue a fresh card. Brief History The card facility was first introduced in the United States in the beginning of the 20th century. Western Union, a US money transfer company, started issuing an embossed metal plate to its preferred customers in 1914. The cardholder had to pay an annual subscription to join the club. This was the beginning of the charge card. In the 1920s, a shopper's plate - a "buy now, pay later" system - was introduced in the USA.

It could only be used in the shops which issued it. In 1950, Diners Club and American Express launched their charge cards in the USA, the first "plastic money". In 1951, Diners Club issued the first credit card to 200 customers who could use it at 27 restaurants in New York. But it was only until the establishment of standards for the magnetic strip in 1970 that the credit card became part of the information age. 1958 American Express Bank, like Dinner Club, started card on travel and entertainment. By 1959 the system evolved in great magnitude.

A cardholder was allowed to pay off the full amount at the end of the month or to spread payment to suit his or her requirements. The customer's monthly payment included a finance charge on the unpaid balance. In 1960 Bank of America introduced its own card, the Bank Americacard and offered license to other banks in 1966 that brought this system into world arena. A good number of banks across the world bought the license and marketed credit cards.On the other hand, in 1967 four California banks changed their name from the California Bankcard Association to Western State Bankcard Association (WSBA). WSBA opened its license to other financial institutions.

Its bankcard product was known as Master Charge. Numerous financial institutions became Master Charge members to compete with Bank Americard. In 1977 Bank Americard was renamed as Visa USA/Visa International and in 1979 master Charge changed its name to Master Card maintaining the lofty standard to meet up the customers' expanded needs. Criteria to be a cardholderA person has to fulfill some criteria to be a cardholder. Every bank has its own array of criteria by which the qualification of an applicant is assessed. The criteria may range over such factors as income range, social status, place of living, education, designation etc. It's quite natural that if the selection criteria for members are more flexible then their clients would be more.

On the other hand, if the selection criteria is more conditional and harsh then its operation would be limited. Credit card of Standard Chartered Grildlays BankFormer ANZ Grindlays Bank, now Standard Chartered Grindlays Bank, took a pioneering role in introducing credit card in Bangladesh. It started acquiring Visa and Mastercard nearly 10 years back. In the first few years, its operational area was very limited and concentrated only on the large hotels and restaurants. In 1997 the bank decided to launch full-scale card operation and very realistically brought a wide range of people under its service system. It is now giving a wide range of card services through multifarious quality facilities.

The bank has Visa Silver, Mastercard Silver and Mastercard Gold card. MasterCard Gold is targeted to high-end customer base who have a higher income. Silver cards have lower credit limits. The minimum income requirement for Silver is Tk. 10,000 per month and for Gold is Tk. 55,000 per month. The income of the applicant along with other financial data is the preliminary consideration in deciding the limit of credit. Standard Chartered Grindlays Bank offers air travel accidental insurance to its cardholders and this is maximum of Tk. 1,00,000 for Silver and a maximum of Tk. 5,00,000 for Gold. The bank has ATM machines in Dhaka, Chittagong and khulna.Several more new machines will be installed in phases.

Standard Chartered Grindlays Bank has initiated for the cardholders' benefit that a cardholder can withdraw maximum 50% of his card's limit in cash on 30% interest. Earlier a cardholder could withdraw only 20% of his card limit on the same interest. National BankNational Bank burst into the world of credit card in October 1997. Like Prime Bank it has Gold International and Gold Local and Silver International and Silver Local.

For Silver Card one must have a income of minimum Taka 12,000 and for Gold Card a person must have an earning of Taka 50,000 per month. But in some cases it is relaxed, for example, a high-ranking government official may achieve a Gold Card though he does not fulfill the condition of income. It is now dealing with more than 6,000 clients. Kazi Mainuddin Chistia, senior officer, has supported the credit card adding that it's something that can enhance the holder's social status like the possession of a magnificent house, a car and a position give a person identity and standing in society. In response to question about decreasing the existing condition of income to be a cardholder Md. Rezwanul Huq, officer, has said 'the cards are for a section of people, not for the commoners'.

However, the issuance of credit cards is on the rise. Prime BankPrime Bank opened its business of credit card in November 1999. The bank has Gold International and Gold Local, and Silver International and Silver Local. For a Silver Card one must have income range over Taka 10,000 and for a Gold Card a person is to have earning minimum Taka 55,000. Prime Bank inserts the client's photograph on the credit card.

When a cardholder receives his monthly statement, he can either choose to pay in full or just the minimum due amount shown on the statement. No interest is charged if he pays in full within the payment due date. There are many sorts of service charges like - annual fee, additional fee, replacement fee, late payment fee, excess limit penalty, return cheque fee etc. If a cardholder accumulates 20,000 Prime Bank Bonus Points for his Gold Card or 10,000 Bonus Points for his Silver Card in a year then he will enjoy card facilities without fee ($ 1 purchase equivalent to 1 Bonus Point). If a cardholder accumulates 10,000 Prime Bank Bonus points for Gold Card or 8,000 Bonus Points for Silver Card in a year then he will enjoy Card facilities without fee. (Tk. 50- purchase equivalent to 1 Bonus point). The highest Prime Bank Bonus Point Holder can enjoy free air ticket of Dhaka-Bangkok-Dhaka (Business Class). The bank has already listed about 3,500 members for their cards. An official of the bank preferring anonymity said introduction of any good thing like credit card is better but its practical use in our market places invites a lot of troubles because of malpractices. VanikVANIK, a Sri Lanka-Bangladesh joint venture financial institution, has been rendering credit card services in Bangladesh since 1998. It has already crossed the mark of issuing 6,000 credit cards within a couple of years.

Now it is covering only Dhaka city and it has a plan to spread its services to different parts of Bangladesh. VANIK issues two-type of credit cards - Gold and Classic. The minimum income requirement for Classic is Tk. 10,000 per month and for Gold is 50,000. For the Gold Card Taka 3,000 is to be paid as annual fee while Taka 1,500 for the Classic. Interest per month is 2.5% on carried forward amount for both the cards. Depending on the requirement of a client, one could either settle his outstanding balance in full by the date given in his statement or has the flexibility of paying only 1/12th of the outstanding balance in installment.

Whatever method he chooses he can enjoy an interest free credit period of maximum 45 days. The validity of both cards is one year from the date of issuance. Ishtiaque Ahmed, working with VANIK in credit card evaluation division has said, many a time some subscribers seem to be reluctant to pay the bill and so they give the wrong addresses of their residences and offices and when the time for payment comes they could not be traced. To handle the problems, a team has been constituted to check the applicants' addresses and other information whether these are true or false.

Asked about the prospect of credit card in a poor country like Bangladesh, he responded positively adding that when an attempt was first made to market mineral water and tissue paper it was apprehended that they would not get good results, but the reality is quite opposite.Ready Cash Card of Janata BankThe Ready Cash Card (debit card) was introduced in Bangladesh by Janata Bank in October 1999. Its operation has not expanded well yet. The Ready Cash cards will be used as an alternate to cash transaction. The bills of telephone, electricity, WASA will be brought under the card payment system. People can pay the gas bill by Ready Cash Card. The water and sewerage bills in the capital and Narayanganj can now be paid by 'Ready Cash' card through one stop service from July 1, 2001. An agreement to this effect was signed between WASA and American International (Bangladesh) Limited on May 16, 2001. The cardholders will be able to pay the bills, including the utility bills easily and without any risk. Arrangements will be made soon for payment of telephone and electricity bills by using the Ready Cash cards. The Mercantile Bank and Dhaka Bank have introduced Ready Cash Card in limited scope.

Smart Card of Grameen Bank The Grameen Bank is set to introduce its own version of credit cards for rural people. The Bank has taken up initiatives to bring the country's rural masses, initially its members, under its IT network to facilitate their daily transactions and other business activities smoothly and bring about a qualitative change in their lifestyle through its 'smart card' project. The 'smart card' will provide facilities like banking, utility and insurance to members of the Bank's micro-credit programme. At the initial stage, a point of sale (POS) terminal device will be installed at various sites across the country, where Grameen members live. The users will be able to use 'smart card' to facilitate their business and other needs what usually the credit card users enjoy in cities. Grameen Software Limited (GSL) signed a memorandum of understanding (MoU) with Information Technology Consultants Ltd. (ITC) on May 5,2001 to implement the project. At every POS terminal, there will be a smart card that will preserve data of all off-line transactions. The card is expected to be introduced this year in greater Dhaka zone of Grameen network. Later, different villages across the country will be brought under the network of the smart card services Limitations There are many business centres which do not give card facilities causing troubles to the cardholders.

The most disadvantage of the card is that all the people wishing to be cardholders cannot enjoy card facilities because of ceiling-touch income bracket along with other criteria, only a certain section of people fulfilling criteria can be cardholders. DefaulterThere is a number of credit cardholders who do not give the money to the bank after finishing the card limit. In this case, the banks have to fall in troubles and expansion of credit cards is naturally discouraged. Again, there are some people who try to take illegal advantage over credit cards.A person was arrested on charge of possessing fake credit cards. The person is the owner of a departmental store providing with credit card facilities to the customers. It is expected that credit cards will be used in a fair way in our country and credit cardholders having ill motive should be prosecuted to check the malpractice.

Provided By Mohammad Farukh Ahmad

Algerian Banking System

2007-02-27T13:10:00.000-08:00

The Algerian Banking System consists of the Bank Of Algeria which is the Central Bank, five state-owned banks, one development bank, one national savings bank(C.N.E.P)and one private bank owned jointly by the Algerian banks and the Saudi El Baraka Group.

Algeria is currently modernizing its banking system as part of its developing plans to reform the whole public sector enterprises. In this context, Algeria has already set-up some financial institutions to boost the private initiative in the economic sector.

Albania World Bank supports improving business climate in Albania

2007-02-26T04:56:00.000-08:00

The World Bank approved a 7.3m-euro loan last month to help Albania attract investment and promote an export-led private sector. Together with funding from the Albanian government, the loan will boost efforts to narrow the import-export gap and improve the business climate, currently hampered by unfair competition and regulatory practices as well as bureaucratic and administrative barriers.
The authorities have acknowledged that Albania's long-term economic growth requires a business environment conducive to export-led private sector growth. Currently, Albania's imports continue to increase, while exports are low.

"This operation will assist the government in facilitating business entry and operations in the formal economy and to strengthen the enterprise sector's capability to increase exports to the region and the EU," said Silvia Minotti, the head of the World Bank team designing the project.

Specific goals include reducing costs, time and the number of steps necessary for businesses to comply with regulations affecting business entry and operations.
Since Albania joined the World Bank in 1991, the institution's commitments to the country have exceeded 690m euros, going towards 61 projects.

The Bank says the relative political stability and commitment to reforms since 1998 have led to robust growth in private sector activity. However, to sustain private sector growth leading to poverty reduction, it is necessary to improve the business environment and complete the structural reform agenda -- especially enterprise and financial sector privatisation. A Foreign Investment Advisory Sector study identified poor governance and weak institutions as the chief problem discouraging foreign direct investments.

Albania's economic performance during the 1990s has been something of a roller coaster. After an output collapse in 1991-92, the country enjoyed strong growth between 1993 and 1996. In 1997, however, the country entered a period of extreme social and political instability following the collapse of a number of fraudulent pyramid schemes, and real output plummeted. Since that time the economy has recovered dramatically.

Published @ http://www.setimes.com/cocoon/setimes/xhtml/en_GB/features/setimes/features/2006/11/15/feature-03/

10 banks presented their requests -to open branches in Algeria

2007-02-21T08:27:00.000-08:00

Ten foreign banks, amongst them Credit Lyonnais and Lebanese banks have presented their demands to the Bank of Algeria in order to have an agreement during this year.

In the time when the international Arab Tunisian bank, which is considered as the first private bank in Tunisia that showed his intentions to open branches in Algeria in a context to enlarge its activities to include Libya and morocco too.

The announcement of the opening of the Tunisian branch was made on the specialised site Web Manager Centre. The Moroccan bank for exterior commerce showed its readiness for the enlargement of its activities to Algeria, so the bank adopted private projects with the national bank of Paris Paribas and Society Générale a project that is to be materialised before the end of the year, and it tends to link agencies of the French banks branches in morocco with the branches working in Algeria.

The Tunisian bank that will open a branch in Algeria according to the Algerian law, and with the majority of the shares with the capital of 50 millions DA, is considered the most important private bank.

According to the information given on the bank’s site, this company was built in 1976 after the merger between the company Marseilles for Credits, and the British bank of the Middle East. This bank owns more than 104 agencies. In the same context, the French bank Credits Lyonnais that is waiting the agreement from the Bank of Algeria during the coming days, declared that it is preparing a wide programme for investment of 80 millions Euro. The Lyonnais bank is considered amongst the banks that showed interest in the project of the opening of the capital of Algerian popular Credits.

The Credits Lyonnais had opened a representative bank in Algeria before and now is trying to enlarge its activities alongside with the popular gathering bank that is present in Algeria through its branch Natiksis Bank and the agriculture credits that is present through its branch Kaylone.

S. Hafid — El-Khabar

Afghanistan to become tariff-free zone; pipeline discussed

2007-02-19T16:47:00.000-08:00

KABUL, Afghanistan — The Afghan government, desperate to lure foreign investment and development, plans to declare the entire nation a tariff-free zone and ease rules for foreigners wanting to start, buy and run businesses.

In conjunction with that plan, to be implemented today, officials hope to reignite their long-shot plans for an oil pipeline from the Caspian Sea across Afghanistan.
Afghanistan, Turkmenistan and Pakistan officials will announce today in Kabul details of a plan to get the stalled pipeline process moving again, said Juma Mohammad Mohammadi, Afghan's Minister for Mines and Industry.

"You will find all the answers to the skeptics then," Mohammadi said.
But the oil pipeline, and possibly a natural gas pipeline, depend largely on the willingness of foreign companies to come in and build.

Ministers say the new rules will help the economy. They expect 470 business proposals the first week, with 20% from foreign firms. The projects would range from $5,000 to $115 million, they said.

Yet, both announcements are expected to meet with some skepticism. Continued instability and violence in the country are likely to keep investors and entrepreneurs away, says Margaret Venzke, a Middle East specialist and professor at Stetson University.

"It's certainly pie-in-the-sky at this point," Venzke says. "It's forward, progressive thinking and wholly positive, but at this time, it's just not credible."
Pipelines, for example, pose huge financial and political challenges. The route would go through some of the most rugged territory in the world. The remote location would make repair and maintenance tough. Also, any pipelines would go through territory ruled by local warlords, whose alliances can shift suddenly for a variety of reasons.

Adding to the challenges: The terminus would be in southwestern Pakistan, an area that is home to anti-Western hard-line Muslims.
The changes in business rules and the pipeline gambit grew from weekly meetings of a special commission of six Afghan ministers, who were charged to develop the country's almost non-existent trade and business base. As part of that effort, on Oct. 7, Afghanistan will launch a new currency that aims to end inflation and provide stability for trade.

Currently, corporate investors have little hope of making money in Afghanistan unless they are involved in a government-sanctioned project paid for with donor dollars or guaranteed by the World Bank or some other international organization. Afghanistan has few natural resources, a poor educational base, almost no consumer market, limited skilled labor and a destroyed infrastructure. Primarily an agrarian country, it is now in its fifth year of a drought. Its major exports are hashish and opium.

Also, Afghanistan has not re-established the ability to accept and send money transfers from its central bank, a key to foreign investment. It is also unable to handle credit card transactions.

But proponents say the changes could resurrect Afghanistan's historic Silk Road location as the manufacturing, transportation and distribution hub for Central and South Asia. Ministers say the expected long-term presence of U.S. troops would provide more stability and a friendlier atmosphere than in Pakistan or Iran.
"We tried our best to make it easy for the businesses to invest their money," said Sayed Mustafa Kazimi, the Afghan Commerce minister. "The previous rules and regulations had a lot of limits. It was too complicated. We made the process shorter."

Changes include:

Ending tariffs on imports and exports and eliminating taxes on purchases and sales. Afghanistan would be one of the few nations in the world with no tariffs.
Ending a requirement of a $50,000 deposit as collateral for foreign businesses. For Afghan investors, a requirement that their house or half the business be put up for collateral is ended.

Requiring only a simple letter of credit from a recognized bank in the home nation instead of numerous other details.

Requiring a full-time office and staff in the country.

But the most dramatic — and perhaps desperate — bid for foreign cash is the pipeline plan. On May 30, Afghan President Hamid Karzai quietly signed a memorandum of understanding with Pakistan and Turkmenistan leaders regarding plans for a pipeline.
A 918-mile natural gas pipeline and a 1,040-mile oil pipeline would snake across western Afghanistan's rugged mountains, carrying the precious resources from southeastern Turkmenistan to a tanker-loading terminal in the Pakistan port city of Gwadar. Afghanistan's projected pipeline royalties would be $25 million a year.
Unocal, located in the USA, and Bridas Petroleum of Argentina vied for a $1.9 billion project in the 1990s. But Unocal says it is no longer interested and has closed many of its Central Asian offices.

There might be better options. The most direct route to take Caspian oil to the Arabian Sea is through Iran. But U.S. firms can't participate in such a project because of restrictions on doing business with Iran. Despite those restrictions, many businessmen believe any Caspian pipeline will eventually go through Iran.
The U.S. alternative has been to push for a pipeline going west, from Azerbaijan on the Caspian Sea through Georgia and Turkey to the Black Sea, where oil would go through the Bosporus into the Mediterranean.

Kazimi, the Afghan Commerce Minister, said the pipeline symbolizes the determination of the Afghan government to reinvent the nation's economic base. But he also said he expects to handle 1,400 proposals for investment once the new rules are announced to provide more immediate benefits.

The 470 proposals expected the first week range from import/export firms to reconstruction, light industries and social services. Proposals are expected from companies in Saudi Arabia, Turkey, Iran, Russia, the USA, Pakistan, Tajikistan and the United Arab Emirates.

One will be Cukorova Construction Company and Associates, a joint Turkish-Pakistani venture whose owners say they have been waiting three months to meet the old Afghan rules for a new business. Under the new rules, company officials say, they will be in business by the end of the week.

Published usatoday.com
By Tom Squitieri, USA TODAY

Credit Card Reward Offers

2007-02-10T10:42:00.000-08:00

Having good credit has it rewards! Here are some credit card offers that will provide you with cash back, travel, discounts towards your next car, etc. You MUST have good credit to get approved for these cards.

Credit Card Reward Programs

Credit Cards with Cash Rewards

Credit Cards offering rebates on Gas or Car purchase

Credit Cards offering Rewards for Travel, Airline Miles & Hotel

Airline Rewards Cards
Citi® Bronze® / AAdvantage® MasterCard® No blackout dates for AAdvantage® award travel on American Airlines, American Eagle & AmericanConnection® carriers.* *See Card Terms and Conditions

Chase Continental Airlines World MasterCard
Travel Twice as Fast with the Continental Airlines World MasterCard from Chase!

AT&T Universal Rewards Card
What can you do with the all-new AT&T Universal Rewards Card? A whole lot, actually. Rewards, Connection, Protection, Convenience. Plus, 0% APR* on balance transfers for 12 months. Balance transfer fee applies with this offer.

The GM Card
Get the GM Card and get 5% in Earnings from every credit card purchase toward a new GM car, truck or SUV. With 5% Earnings and No Annual Fee, the GM Card may well be the richest rewards card out there. Apply online and get an instant decision.

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Credit Repairs (The law and dispute)

2007-02-08T09:55:00.000-08:00

By law, credit repair organizations must give you a copy of the “Consumer Credit File Rights Under State and Federal Law” before you sign a contract. They also must give you a written contract that spells out your rights and obligations. Read these documents before you sign anything. The law contains specific protections for you.

For example, a credit repair company cannot:

make false claims about their services
charge you until they have completed the promised services
perform any services until they have your signature on a written contract and have completed a three-day waiting period. During this time, you can cancel the contract without paying any fees

Your contract must specify:

the payment terms for services, including their total cost
a detailed description of the services to be performed
how long it will take to achieve the results
any guarantees they offer
the company’s name and business address

Have You Been Victimized?

Many states have laws regulating credit repair companies. State law enforcement officials may be helpful if you’ve lost money to credit repair scams.

If you’ve had a problem with a credit repair company, don’t be embarrassed to report it. While you may fear that contacting the government will only make your problems worse, remember that laws are in place to protect you. Contact your local consumer affairs office or your state Attorney General (AGs). Many AGs have toll-free consumer hotlines. Check the Blue Pages of your telephone directory for the phone number or check http://www.naag.org/ for a list of state Attorneys General.

Need Help? Don’t Despair
Just because you have a poor credit report doesn’t mean you won’t be able to get credit. Creditors set their own credit-granting standards and not all of them look at your credit history the same way. Some may look only at more recent years to evaluate you for credit, and they may grant credit if your bill-paying history has improved. It may be worthwhile to contact creditors informally to discuss their credit standards.

If you’re not disciplined enough to create a workable budget and stick to it, work out a repayment plan with your creditors, or keep track of mounting bills, consider contacting a credit counseling organization. Many credit counseling organizations are nonprofit and work with you to solve your financial problems. But not all are reputable. For example, just because an organization says it’s “nonprofit,” there’s no guarantee that its services are free, affordable, or even legitimate. In fact, some credit counseling organizations charge high fees, or hide their fees by pressuring consumers to make “voluntary” contributions that only cause more debt. Most credit counselors offer services through local offices, the Internet, or on the telephone. If possible, find an organization that offers in-person counseling. Many universities, military bases, credit unions, housing authorities, and branches of the U.S. Cooperative Extension Service operate nonprofit credit counseling programs. Your financial institution, local consumer protection agency, and friends and family also may be good sources of information and referrals.

If you are considering filing for bankruptcy, you should know about one major change to the bankruptcy laws: As of October 17, 2005, you must get credit counseling from a government-approved organization within six months before you file for bankruptcy relief. You can find a state-by-state list of government-approved organizations at www.usdoj.gov/ust. That is the website of the U.S. Trustee Program, the organization within the U.S. Department of Justice that supervises bankruptcy cases and trustees.

Reputable credit counseling organizations can advise you on managing your money and debts, help you develop a budget, and offer free educational materials and workshops. Their counselors are certified and trained in the areas of consumer credit, money and debt management, and budgeting. Counselors discuss your entire financial situation with you, and help you develop a personalized plan to solve your money problems. An initial counseling session typically lasts an hour, with an offer of follow-up sessions.

[Courtesy Federal Trade Commission]

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Credit Repairs (The Scam and The Truth)

2007-02-06T09:16:00.000-08:00

You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims: “Credit problems? No problem!” “We can erase your bad credit — 100% guaranteed.” “Create a new credit identity — legally.” “We can remove bankruptcies, judgments, liens, and bad loans from your credit file forever!”

Do yourself a favor and save some money, too. Don’t believe these statements. Only time, a conscious effort, and a personal debt repayment plan will improve your credit report.This brochure explains how you can improve your creditworthiness and gives legitimate resources for low or no-cost help.

The Scam
Everyday, companies nationwide appeal to consumers with poor credit histories. They promise, for a fee, to clean up your credit report so you can get a car loan, a home mortgage, insurance, or even a job. The truth is, they can’t deliver. After you pay them hundreds or thousands of dollars in fees, these companies do nothing to improve your credit report; most simply vanish with your money. The Warning Signs
If you decide to respond to a credit repair offer, look for these tell-tale signs of a scam:

companies that want you to pay for credit repair services before they provide any services.

companies that do not tell you your legal rights and what you can do for yourself for free.

companies that recommend that you not contact a credit reporting company directly.

companies that suggest that you try to invent a “new” credit identity — and then, a new credit report — by applying for an Employer Identification Number to use instead of your Social Security number.

companies that advise you to dispute all information in your credit report or take any action that seems illegal, like creating a new credit identity. If you follow illegal advice and commit fraud, you may be subject to prosecution.

You could be charged and prosecuted for mail or wire fraud if you use the mail or telephone to apply for credit and provide false information. It’s a federal crime to lie on a loan or credit application, to misrepresent your Social Security number, and to obtain an Employer Identification Number from the Internal Revenue Service under false pretenses.Under the Credit Repair Organizations Act, credit repair companies cannot require you to pay until they have completed the services they have promised.

The Truth
No one can legally remove accurate and timely negative information from a credit report. The law allows you to ask for an investigation of information in your file that you dispute as inaccurate or incomplete. There is no charge for this. Everything a credit repair clinic can do for you legally, you can do for yourself at little or no cost. According to the Fair Credit Reporting Act (FCRA):

You’re entitled to a free report if a company takes adverse action against you, like denying your application for credit, insurance, or employment, and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company.

You’re also entitled to one free report a year if you’re unemployed and plan to look for a job within 60 days; if you’re on welfare; or if your report is inaccurate because of fraud, including identity theft.

[Courtesy Federal Trade Commission site]

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How Credit Cards work (Reward)

2007-02-05T08:41:00.000-08:00

Qantas Frequent Flyer co-branded credit cards Many credit card customers receive rewards, such as frequent flier points, gift certificates, or cash back as an incentive to use the card.

Rewards are generally tied to purchasing an item or service on the card, which may or may not include balance transfers, cash advances, or other special uses. Depending on the type of card, rewards will generally cost the issuer between 0.25% and 2.0% of the spend.

However, most rewards points are accrued as a liability on a company's balance sheet and expensed at the time of reward redemption. As a result, some issuers discourage redemption by forcing the cardholder to call customer service for rewards. Others encourage redemption for lower cost merchandise; instead of an airline ticket, which is very expensive to an issuer, the cardholder may be encouraged to redeem for a gift certificate instead. With a fractured and competitive environment, rewards points cut dramatically into an issuer's bottom line, and rewards points and related incentives must be carefully managed to ensure a profitable portfolio.

Fraud Where a card is stolen, or an unauthorized duplicate made, most card issuers will refund some or all of the charges that the customer has received for things they did not buy. These refunds will, in some cases, be at the expense of the merchant, especially in mail order cases where the merchant cannot claim sight of the card, but in other cases, these costs must be borne by the card issuer.

In several countries, merchants will lose the money if no ID card was asked for, therefore merchants usually require ID card in these countries. The cost of fraud is high; in the UK in 2004 it was over £500 million.[2] Credit card companies generally guarantee the merchant will be paid on legitimate transactions regardless of whether the consumer pays their credit card bill.

[Courtesy Wiki]
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How Credit Cards work (why provider charge high interest)

2007-02-04T08:35:00.000-08:00

Costs Credit card issuers (banks) have several types of costs:

Interest expenses Banks generally borrow the money that they then lend to their customers. As they receive very low-interest loans from other firms, they may borrow as much as their customers require, while lending their capital to other borrowers at higher rates. If the card issuer charges 15% on money lent to users, and it costs 5% to borrow the money to lend, and the balance sits with the cardholder for a year, the issuer earns 10% on the loan. This 5% difference is the "interest expense" and the 10% is the "net interest margin".

Operating costs This is the cost of running the credit card portfolio, including everything from paying the executives who run the company to printing the plastics to mailing the statements to running the computers that keep track of every cardholder's balance to taking the many phone calls which cardholders place to their issuer to tracking down fraud rings to protect the customers. Depending on the issuer, marketing programs are also a significant portion of expenses.

Charge offs Some customers never pay their credit card bill. In any given year, a significant portion of the money that a bank lends to its credit card customers will never be repaid. Some credit card issuers have had various troubles and have seen this number rise to over 20%. In general, the percentage of people who charge off will usually correlate to the credit worthiness score of the applicant; the higher the credit worthiness score, the lower the actual and theoretical risk of charge off. In the US, as the charge off number climbs or becomes erratic, officials from the Federal Reserve take a close look at the finances of the bank and may impose various operating strictures on the bank, and in the most extreme cases, may close the bank entirely.

[Courtesy Wiki]
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How Credit Cards work (security aspect)

2007-02-02T11:30:00.000-08:00

A smart card, combining credit card and debit card properties. The 3 by 5 mm security chip embedded in the card is shown enlarged in the inset. The gold contact pads on the card enable electronic access to the chip. The low security of the credit card system presents countless opportunities for fraud. This opportunity has created a huge black market in stolen credit card numbers, which are generally used quickly before the cards are reported stolen. The goal of the credit card companies, as they say, is not to eliminate fraud, but to "reduce it to manageable levels", such that the total cost of both fraud and fraud prevention is minimized[citation needed].

This implies that high-cost low-return fraud prevention measures will not be used if their cost exceeds the potential gains from fraud reduction. Most Internet fraud is done through the use of stolen credit card information which is obtained in many ways, the simplest being copying information from retailers, either online or offline. There have been many cases of crackers obtaining huge quantities of credit card information from company databases. It is not unusual for employees of companies that deal with millions of customers to sell credit card information to criminals[citation needed].

Despite efforts to improve security for remote purchases using credit cards, systems with security holes are usually the result of poor implementations of card acquisition by merchants. For example, a website that uses SSL to encrypt card numbers from a client may simply email the number from the webserver to someone who manually processes the card details at a card terminal. Naturally, anywhere card details become human-readable before being processed at the acquiring bank is a security risk. However, many banks offer systems such as ClearCommerce, where encrypted card details captured on a merchant's webserver can be sent directly to the payment processor.

The Federal Bureau of Investigation is the agency responsible for prosecuting criminals who engage in credit card fraud in the United States, but they do not have the resources to pursue all criminals. In general, they only prosecute in cases exceeding US$5,000 in value. Three improvements to card security have been introduced to the more common credit card networks but none has proven to help reduce credit card fraud so far. First, the on-line verification system used by merchants is being enhanced to require a 4 digit Personal Identification Number (PIN) known only to the card holder. Second, the cards themselves are being replaced with similar-looking tamper-resistant smart cards which are intended to make forgery more difficult. The majority of smartcard (IC card) based credit cards comply with the EMV (Europay MasterCard Visa) standard. Third, an additional 3 or 4 digit code is now present on the back of most cards, for use in "card not present" transactions. See CVV2 for more information.

Profits and losses In recent times, credit card portfolios have been very profitable for banks, largely due to the booming economy of the late nineties. However, in the case of credit cards, such high returns go hand in hand with risk, since the business is essentially one of making unsecured (uncollateralized) loans, and thus dependent on borrowers not to default in large numbers.

[Courtesy Wiki)

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How Credit Cards work (continued..)

2007-02-01T08:25:00.000-08:00

The cardholder of a secured credit card is still expected to make regular payments, as he or she would with a regular credit card, but should he or she default on a payment, the card issuer has the option of recovering the cost of the purchases paid to the merchants out of the deposit. Although the deposit is in the hands of the credit card issuer as security in the event of default by the consumer, the deposit will not be credited simply for missing one or two payments.

Usually the deposit is only used as an offset when the account is closed, either at the request of the customer or due to severe delinquency (150 to 180 days). This means that an account which is less than 150 days delinquent will continue to accrue interest and fees, and could result in a balance which is much higher than the actual credit limit on the card. In these cases the total debt may far exceed the original deposit and the cardholder not only forfeits their deposit but is left with an additional debt.

Most of these conditions are usually described in a cardholder agreement which the cardholder signs when their account is opened.

Secured credit cards are an option to allow a person with a poor credit history or no credit history to have a credit card which might not otherwise be available. They are often offered as a means of rebuilding one's credit. Secured credit cards are available with both Visa and MasterCard logos on them.

Fees and service charges for secured credit cards often exceed those charged for ordinary non-secured credit cards, however, for people in certain situations, (for example, after charging off on other credit cards, or people with a long history of delinquency on various forms of debt), secured cards can often be less expensive in total cost than unsecured credit cards, even including the security deposit.

Features As well as convenient, accessible credit, the cards offer consumers an easy way to track expenses, which is necessary both for monitoring personal expenditures and the tracking of work-related expenses for taxation and reimbursement purposes. They have now spread worldwide, and are offered in a huge variety of permutations with differing credit limits, repayment arrangements such as automatic payment from a personal bank account (some cards offer interest-free periods, while others do not but compensate with much lower interest rates), and other perks (such as rewards schemes in which points earned by purchasing goods with the card can be redeemed for further goods and services or credit card cashback).

Some countries such as the United States, the United Kingdom and France limit the amount for which a consumer can be held liable due to fraudulent transactions as a result of a consumer's credit card being lost or stolen.

(Courtesy Wiki)

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How Credit Cards work (continued..)

2007-01-31T08:17:00.000-08:00

The credit card may simply serve as a form of revolving credit, or it may become a complicated financial instrument with multiple balance segments each at a different interest rate, possibly with a single umbrella credit limit, or with separate credit limits applicable to the various balance segments. Usually this compartmentalization is the result of special incentive offers from the issuing bank, either to encourage balance transfers from cards of other issuers, or to encourage more spending on the part of the customer.

In the event that several interest rates apply to various balance segments, payment allocation is generally at the discretion of the issuing bank, and payments will therefore usually be allocated towards the lowest rate balances until paid in full before any money is paid towards higher rate balances. Interest rates can vary considerably from card to card, and the interest rate on a particular card may jump dramatically if the card user is late with a payment on that card or any other credit instrument. As the rates and terms vary, services have been set up allowing users to calculate savings available by switching cards, which can be considerable if there is a large outstanding balance (see external links for some on-line services).

Because of intense competition in the credit card industry, credit providers often offer incentives such as frequent flier points, gift certificates, or cash back (typically up to 1 percent based on total purchases) to try to attract customers to their program.

Low interest credit cards or even 0% interest credit cards are available. The only downside to consumers is that the period of low interest credit cards is limited to a fixed term, usually between 6 and 12 months after which a higher rate is charged. However, services are available which alert credit card holders when their low interest period is due to expire. Most such services charge a monthly or annual fee.

Grace period A credit card's grace period is the time the customer has to pay the balance, before interest is charged to the balance. Grace periods vary, but usually range from 10 to 55 days depending on the type of credit card and the issuing bank.

Even some street market stands now take credit cards. For merchants, a credit card transaction is often more secure than other forms of payment, such as cheques, because the issuing bank commits to pay the merchant the moment the transaction is verified. The bank charges a commission (discount fee), to the merchant for this service and there may be a certain delay before the agreed payment is received by the merchant. In addition, a merchant may be penalized or have their ability to receive payment using that credit card restricted if there are too many cancellations or reversals of charges. In some countries, like the Nordic countries, banks guarantee payment on stolen cards only if ID card is checked. In these countries merchants therefore usually ask for ID.

Secured credit cards A secured credit card is a type of credit card secured by a deposit account owned by the cardholder. Typically, the cardholder must deposit between 100% and 200% of the total amount of credit desired. Thus if the cardholder puts down $1000, he or she will be given credit in the range of $500–$1000. In some cases, credit card issuers will offer incentives even on their secured card portfolios. In these cases, the deposit required may be significantly less than the required credit limit, and can be as low as 10% of the desired credit limit. This deposit is held in a special savings account.

[Courtesy Wiki]

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How Credit Cards work

2007-01-30T08:07:00.000-08:00

A user is issued a credit card after an account has been approved by the credit provider (often a general bank, but sometimes a captive bank created to issue a particular brand of credit card, such as Wells Fargo or American Express Centurion Bank), with which the user will be able to make purchases from merchants accepting that credit card up to a pre-established credit limit. When a purchase is made, the credit card user agrees to pay the card issuer. The cardholder indicates their consent to pay, by signing a receipt with a record of the card details and indicating the amount to be paid or by entering a PIN. Also, many merchants now accept verbal authorizations via telephone and electronic authorization using the Internet, known as a customer not present (CNP) transaction.

Electronic verification systems allow merchants to verify that the card is valid and the credit card customer has sufficient credit to cover the purchase in a few seconds, allowing the verification to happen at time of purchase. The verification is performed using a credit card payment terminal or POS system with a communications link to the merchant's acquiring bank. Data from the card is obtained using from a magnetic stripe or chip on the card; the later system is commonly known as Chip and PIN, but is more technically an EMV card. Other variations of verification systems are used by eCommerce merchants to determine if the user's account is valid and able to accept the charge. These will typically involve the cardholder providing additional information, such as the security code printed on the back of the card, or the address of the cardholder.

Each month, the credit card user is sent a statement indicating the purchases undertaken with the card, any outstanding fees, and the total amount owed. After receiving the statement, the cardholder may dispute any charges that he or she thinks are incorrect (see Fair Credit Billing Act for details of the US regulations). Otherwise, the cardholder must pay a defined minimum proportion of the bill by a due date, or may choose to pay a higher amount up to the entire amount owed. The credit provider charges interest on the amount owed (typically at a much higher rate than most other forms of debt). Some financial institutions can arrange for automatic payments to be deducted from the user's accounts.

Credit card issuers usually waive interest charges if the balance is paid in full each month, but typically will charge full interest on the entire outstanding balance from the date of each purchase if the total balance is not paid. For example, if a user had a $1,000 outstanding balance and pays it in full, there would be no interest charged. If, however, even $1.00 of the total balance remained unpaid, interest would be charged on the full $1,000 from the date of purchase until the payment is received. The precise manner in which interest is charged is usually detailed in a cardholder agreement which may be summarized on the back of the monthly statement. (continued)

(Courtesy Wiki)

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Unsecured Credit Cards For People With Bad Credit

2007-01-28T21:29:00.000-08:00

Looking for UNSECURED CREDIT CARDS FOR PEOPLE WITH BAD CREDIT?

Recently turned down for an unsecured credit card? Bad credit is no problem for the unsecred credit card companies on this page.

Imagine Card
Imagine® the Possibilities with an Unsecured Gold MasterCard® Credit Card even if your credit is less than perfect!.

Total Visa® Card
No Credit? Bad Credit? Denied Credit? - There is hope! Apply now for the Total Visa® Credit Card! This credit card provides you with an instant On-Line Decision!

Centennial Gold MasterCard® INSTANT CREDIT DECISION!
The Centennial Gold Mastercard offers a Low APR on Purchases, access to online credit education to help you improve your credit, and 24 hour account access by phone. Apply for a Centennial Gold credit card now!.

Tribute® MasterCard® Gold
Have bad credit? Apply for an unsecured Tribute® MasterCard® Card and receive a 30-second online response - no fee to apply

Continental Finance MasterCard®
This credit card will give you results in seconds , Credit bureau reporting , No security deposit (completely unsecured), Credit limit increases , No minimum monthly income requirements , Upon approval free benefits with automatic enrollment in the Go For the GOLD Program

Orchard Bank MasterCard® rebuilds your Credit
The Orchard Bank MasterCards are designed for those with little or damaged (bad) credit and those ready to move up to Gold. We've helped millions of people obtain credit who may not have traditionally qualified for an unsecured credit card. Let us help you get approved for your own unsecured credit card

Rewards 660 Visa® Card
Bad Credit? Bankruptcy? No Credit? No Problem! The Power of a Visa® Card can be yours!

Orchard Bank Platinum MasterCard Rebuilds Your Credit The Orchard Bank Platinum MasterCard® is designed for those with little or damaged credit. We've helped millions of people obtain credit – Let us help you too.

Orchard Bank Silver MasterCard rebuilds your Credit If you have little or damaged credit, apply now for an Orchard Bank Silver MasterCard®!

CreditSoup® Program
CreditSoup is a free service designed to connect you with a lender that best fits your credit needs. Whether you have no credit, bad credit, or excellent credit, CreditSoup® makes finding you an unsecured credit card as easy as 1-2-3!

First PREMIER Bank MasterCard/ Visa INSTANT CREDIT DECISION!
Less than Perfect Credit? Then we have the card for you! Accepted where you see the MasterCard or Visa logo. Enjoy a Low APR on purchases

Free credit Search
Free Credit Search- Good Credit and Bad Credit Credit Cards Available. Secured & Unsecured Credit cards offered along with home loans. Easy customized application process. They also have a nice section with tips about applying for unsecured credit cards & loans even if you have bad credit.

USA Platinum Catalog Card
Unsecured credit line up to $7,500! Great for establishing credit. Bad Credit O.K *See website for terms & conditions

Get $5000 with an Unsecured Gold Card!
Now you can get *Guaranteed instant online Approval for an unsecured Gold Credit Card with a $5,000 credit line. That's right!! As long as you are at least 18, a US resident with at least $800 in monthly household income and no undischarged bankruptcies, your APPROVAL IS *GUARANTEED! Enjoy great merchandise while establishing your credit because the USA GOLD CARD reports your credit to a major credit bureau. Apply today for your Unsecured Gold Credit Line! *See website for terms & conditions

$7500 Unsecured Credit Line! Platinum Plus Card
$7500 Unsecured Platinum Credit Line. No Credit Checks and No Credit Turndowns. *See website for terms & conditions

America One Unsecured
If you are seeking money in the form of an unsecured small business or personal loan, you have located a useful source to assist with your financing needs. At America One, we know just how frustrating it is to borrow in today’s economic environment. Fortunately, in the past year alone, we’ve helped our clients receive millions in approvals.