How Much Does a Credit Card For People With Bad Credit Cost?

A credit cards for people with bad credit comes laden with fees that is not charged on regular credit cards. For people who have never used such a credit card it is easy get too excited with the prospect of getting a credit card and ignore such fee.

While having a credit card is an important step in your efforts to re-build your credit history, it is best to get familiarized with the kind of costs that you will be charged on your credit card. So do not be deterred by this fee, rather think of it as a necessary cost that you will need to incur in order to get a brand new credit card and start building your credit history all over again.

There are two types of fee, one that is charged at the time of set up and which can’t be avoided and then, one which will be charged as and when you consume the credit card services (these can be avoided).

The set up fee consists of components like:

  • Annual fee
  • Monthly Maintenance fee
  • Account set up fee
  • Program fee
  • Additional card fee

All of these can add up to $250 for your credit card. So that basically means that as soon as you get your card, this money is charged to your card and you will have to repay it. Think of it as the cost of the card. The annual fee may be charged in tweleve installments every month so your credit card charges on the first month may actually be be less than $250, but that just means a fixed amount will be charged to your credit card each month which is the annual fee divided by twelve.

The second type of fee is one that is incurred when you use the card and this includes things like :

  • Late paying fee
  • Monthly maintenance fee
  • Internet Access Fee
  • Return Item charge
  • Auto draft charge
  • Credit limit extension
  • Copying fee
  • Wire transfer fee

The second type of fee is the one that you need to be aware of, as this is the money that you can really save. For example a lot of people do not know that they will be charged a fee every time they extend their credit limit. So instead of waiting and extending at one go, they ask for an extension every time. Similarly do not buy an item that you think you will be returning on this card or else you will need to pay an additional fee on that too.

These are some of the fee that never gets talked about when people discuss credit cards for people with bad credit, mainly, because the focus is on how to get the credit card or just the APR. The truth is that there are several banks giving out credit cards for people with less than perfect credit so it makes sense to look at the costs associated with it so that you can make a fair comparison.

Credit Card Debt Relief – Why Credit Card Companies Will Agree to Take 50% of Your Balance

Before the recession hit the economy, a 50% lump sum repayment might have, only might have, convince the credit card companies to offer 10% or 15% discount. Of course, even the mere promise of 50% lump sum repayment would not have sufficed. The credit card companies would have expected you to walk in with half the repayment in your hand in liquid cash.

Even then, the card companies would have insisted on being convinced why you should get a discount. It would not be incorrect to say that discount offered by card issuers was treated in the same manner as cash discount offered by traders. It is merely an incentive for you to repay the debts quickly.

Just as cash discount does not exceed 2% or 3% of the total amount owed, the discount offered by credit card issuers never exceeded a 5% to 10% of the total amount owed. In such a scenario, to discover that card issuers will be prepared to waive 50% of your debt and accept the balance 50% as full and final repayment is very surprising.

Further, to discover that the card issuers will offer this deal along with an installment facility is even more surprising. What has changed? Why are credit card companies are prepared to offer such generous discounts?

a. The lenders have realized that pushing the borrowers any further is only going to lead to more complications. Better a settlement than a bankruptcy. That is the logic that the credit card issuers are following.
b. The lenders have received a stimulus package funds from the government. If not directly, the increase in demand for goods and services has lead to increase in demand for credit card services. The card issuers do not want to spoil the cozy right by pushing more people into bankruptcy.

c. The card issuers have realized that dealing with honest and genuine borrowers is the right way to proceed. What is the point of lending money to those who do not use it responsibly and end up asking for a settlement at a later debt? Lenders are prepared to offer onetime settlement to finish the process so that they can start all over again.
d. More and more borrowers are utilizing the services of professional debt relief experts. It is very difficult for the credit card issuer to confuse and avoid when professionals are involved in the negotiation.

What Will it Cost You Not to Have Online Credit Card Processing?

There are a number of online business owners who have taken a casual look at adding credit card processing services to their sites, seen that there will be monthly fees and charges and stopped looking at that point. Why give the credit card companies their hard-earned money, they reason.

One good answer is that they are likely costing themselves money instead of saving money. As more people start shopping online and using their credit card, and more sites add merchant services, the public’s expectation that all sites accept credit cards will rise commensurately.

There is already proof that many online shoppers consider a site that does not have a merchant account option to be less than trustworthy, which is one more reason to have the ability to accept payments online.

So those online business people are actually breeding ill-will with today’s ‘net shopper, which is going to cost them far more money than they are saving by not having credit card services. But other factors come into play as well.

Some people like the speed and convenience of being able to pay with their credit card, so they aren’t going to patronize any site that makes the payment cycle longer.

Others like using their credit card to shop because they are going to be reimbursed for the purchase. Having to pay any other way takes money out of their pocket for a certain amount of time.

Many like using a credit card on more expensive purchases because they want to be able to spread the payments out over several months, an option having to pay another way won’t allow.

And some like the buyer protections that come with paying by credit card – especially since they are ordering merchandise site unseen.

On balance there are people who prefer to pay upfront for anything – whether from a bricks-and-mortar store or a virtual enterprise. They prefer not carrying any debt.

However, more than 80 percent of everything bought online is paid for using a credit card, which means the latter group is not going to generate enough business for an e-store owner to sustain profitability on an ongoing basis.

The good news is that studies have shown that being able to accept credit cards increases sales and profits, and boosts repeat business – meaning those monthly fees that go with merchant services will be more than paid for.

So at the end of the day the wise move for any online business owner that wants to see their site sustain itself, if not grow to the next level, is to invest in great online credit card processing. It is good business and it is what a vast majority of the Internet shopping public wants to find when they fire up their online connection and go shopping, credit card in hand.

The choice is simple. Save a little money and alienate a lot of people. Or spend a little and watch you business take off. Because online shopping is not going to go away and neither will people’s desire to use their credit cards. So do you want to save a few bucks, or do you want to make a lot of shoppers feel welcome on your ecommerce place of business?

Credit Card Processing

In modern times so many business establishments accept credit cards that many consumers have come to take their use for granted. Between debit cards and credit cards, the world economy is gradually shifting to a “cashless society.” True to science-fiction predictions a half-century ago, it’s possible that in the near future almost all transactions can be handled without the need of paper money.

Of course, this trend leaves businesses with very little choice in the decision to accept credit cards. Even losing the ability to accept them on a temporary basis may result in a damaging decline in sales. The end result is that accepting credit cards in a timely and successful manner has become an absolute necessity for not just large corporations but even small business owners as well. Indeed, small businesses especially need to provide safe and dependable credit card service to their customers, as that extra source of income can often make or break a fledgling enterprise.

Offering customers credit card service begins with setting up your merchant account. A merchant account provider, who will offer a variety of protection and security services, typically furnishes these accounts, either free of charge or for nominal fees, when you set up your account. Sometimes, a merchant will use a bank as its merchant account provider; however, some banks charge exorbitant fees for credit card services, including even charging 5% or more of each transaction.

When choosing a merchant account provider, a good way to shop is to check and verify which trade associations the provider belongs to. You may also want to consult and research businesses in your industry or market, verifying which providers they use and aligning yourself with their practices. Of course, simply checking with the Better Business Bureau is another surefire, time-efficient means of choosing your merchant account provider.

There is perhaps no more important area of the economy for reliable and safe credit card processing than the Internet. Since the rise of ecommerce in the late 1990s, the demand for effective credit card services and Internet merchant accounts has grown exponentially, with many small businessmen choosing to deal with a merchant account provider directly in handling their ecommerce needs. With today’s higher awareness and risk of identity theft especially, choosing the right credit card services provider becomes all the more crucial. Many credit card service providers are available online, and require only the simplest forms of registration. Though many are not completely reputable, some adhere to the strictest codes of ethics and practices. When choosing your service provider, look for their seals of approval and research testimonials from actual users. You may also want to look for the “seal of approval” given by a number of Internet service providers and software manufacturers.

Merchant Credit Card Services and the March of Technology

As technology has progressed over recent years, so has merchant credit card processing. This very same new technology has ensured that merchant processing has not only become more convenient for everybody, but much safer to use as well. Various merchant account providers have advanced dramatically in how they work, and authentication and verification is just a small example of what they can accomplish today. Nevertheless, technology still advances relentlessly down the path of time and more advancements are coming to the fore; advancements that have the ability to change the way everybody conducts their business.

Once such advancement is mobile merchant credit card processing and this is mainly due to the progression of mobile technology. This method offers wonderful scope for those businesses that are constantly on the go, allowing them to accept credit card payments via their office, home or laptop computers. There are millions of businesses across the world already availing of this technology.

Next on the lists of great advancements are cell phone wallets. This technology is prevalent across Asia at the moment, where many have already taken to it in a big way. Although slow to move across the world, this technology can already be used and accepted by major banks and institutions in the West. Individuals can more or less carry out the functions they would normally associate with online banking such as checking account balances, transferring money, paying bills, etc. and this “mobile” banking has just as good security features as online banking does.

Most experts agree that within a few years, and certainly within the next five, this technology will have advanced so that individuals could get rid of their credit cards altogether and use their cell phones to make payments.

A final great advancement that we can mention here are the pocket size merchant processing terminals that are tentatively finding their way onto the market. Although portable merchant account terminals have been with us for a few years, the fact that they are quite bulky makes them an issue for businesses setting up stall at trade shows or selling from door-to-door; things of this nature. But a terminal has arrived on the market that itself is no bigger than a traditional credit card. Weighing in at under a couple of ounces, this great piece of technology can hold an x amount (usually less than a hundred) of transactions before it fills up its internal memory. All information collected on these terminals could then be uploaded by connecting to a computer, after which the user can start from scratch.

Although many will consider that merchant processing is not yet perfect, the advancement of technology at least gives hope that as things progress, credit card transactions will become easier and safer for both the business and the customer.

3 Credit Card Services You Need To Know About

If you carry a credit card but know nothing about the various credit card services available, you don’t know what you’re missing. Ask yourself these questions… How will your credit card balance be paid if something happened to you? Who do you turn to if your credit cards are lost or stolen? What do you do if you get in over your head with debt? Credit card services have the answers. Here are a few you should get acquainted with.

Credit Card Services That Offer Insurance

Insurance can be a beautiful thing. That’s why many credit card services offer various forms of it. Whether you become disabled, unemployed or (heaven forbid) deceased, there are insurance products that will take care of things for you.

While many credit card companies offer insurance directly, you might be able to save money by looking to the credit card services that offer it independently. Just make sure you understand the exact terms of the insurance policy being offered. If you become disabled, exactly how long will the insurance make payments for and how much will they pay? Are there exclusions to a death benefit? Does it have to be an accident or are illness and natural death covered as well?

Check with at least two credit card services to see what types of insurance are available to you and compare costs. Then you can be sure you’re getting the best coverage at the best price.

Stolen Credit Card Services

Having your credit card stolen is a nightmare to begin with. The headaches only multiply when multiple cards are involved. Fortunately there are some credit card services that can help with this already-bad situation.

Stolen credit card services maintain the contact info and account details for all of your credit cards. Then, if your cards are lost or stolen, you just call the service and they take all of the steps required to notify your credit card issuers. Your old cards will be canceled and new ones issued. These credit card services make a hard situation a little bit easier to deal with.

Debt-Related Credit Card Services

One of the pitfalls of carrying credit cards is some consumer’s tendency to accumulate too much debt. That’s where debt-related credit card services can be very beneficial. These services can counsel you on how to properly manage your credit cards and can even help you navigate your way out of debt.

If you carry credit cards and have never looked into these credit card services, now is the time to do it. As a wise man once said — it’s better late than never. You just never know when these credit card services will come in handy.

Credit Card Processing

In modern times so many business establishments accept credit cards that many consumers have come to take their use for granted. Between debit cards and credit cards, the world economy is gradually shifting to a “cashless society.” True to science-fiction predictions a half-century ago, it’s possible that in the near future almost all transactions can be handled without the need of paper money.

Of course, this trend leaves businesses with very little choice in the decision to accept credit cards. Even losing the ability to accept them on a temporary basis may result in a damaging decline in sales. The end result is that accepting credit cards in a timely and successful manner has become an absolute necessity for not just large corporations but even small business owners as well. Indeed, small businesses especially need to provide safe and dependable credit card service to their customers, as that extra source of income can often make or break a fledgling enterprise.

Offering customers credit card service begins with setting up your merchant account. A merchant account provider, who will offer a variety of protection and security services, typically furnishes these accounts, either free of charge or for nominal fees, when you set up your account. Sometimes, a merchant will use a bank as its merchant account provider; however, some banks charge exorbitant fees for credit card services, including even charging 5% or more of each transaction.

When choosing a merchant account provider, a good way to shop is to check and verify which trade associations the provider belongs to. You may also want to consult and research businesses in your industry or market, verifying which providers they use and aligning yourself with their practices. Of course, simply checking with the Better Business Bureau is another surefire, time-efficient means of choosing your merchant account provider.

There is perhaps no more important area of the economy for reliable and safe credit card processing than the Internet. Since the rise of ecommerce in the late 1990s, the demand for effective credit card services and Internet merchant accounts has grown exponentially, with many small businessmen choosing to deal with a merchant account provider directly in handling their ecommerce needs. With today’s higher awareness and risk of identity theft especially, choosing the right credit card services provider becomes all the more crucial. Many credit card service providers are available online, and require only the simplest forms of registration. Though many are not completely reputable, some adhere to the strictest codes of ethics and practices. When choosing your service provider, look for their seals of approval and research testimonials from actual users. You may also want to look for the “seal of approval” given by a number of Internet service providers and software manufacturers.

Merchant Credit Card Services and the March of Technology

As technology has progressed over recent years, so has merchant credit card processing. This very same new technology has ensured that merchant processing has not only become more convenient for everybody, but much safer to use as well. Various merchant account providers have advanced dramatically in how they work, and authentication and verification is just a small example of what they can accomplish today. Nevertheless, technology still advances relentlessly down the path of time and more advancements are coming to the fore; advancements that have the ability to change the way everybody conducts their business.

Once such advancement is mobile merchant credit card processing and this is mainly due to the progression of mobile technology. This method offers wonderful scope for those businesses that are constantly on the go, allowing them to accept credit card payments via their office, home or laptop computers. There are millions of businesses across the world already availing of this technology.

Next on the lists of great advancements are cell phone wallets. This technology is prevalent across Asia at the moment, where many have already taken to it in a big way. Although slow to move across the world, this technology can already be used and accepted by major banks and institutions in the West. Individuals can more or less carry out the functions they would normally associate with online banking such as checking account balances, transferring money, paying bills, etc. and this “mobile” banking has just as good security features as online banking does.

Most experts agree that within a few years, and certainly within the next five, this technology will have advanced so that individuals could get rid of their credit cards altogether and use their cell phones to make payments.

A final great advancement that we can mention here are the pocket size merchant processing terminals that are tentatively finding their way onto the market. Although portable merchant account terminals have been with us for a few years, the fact that they are quite bulky makes them an issue for businesses setting up stall at trade shows or selling from door-to-door; things of this nature. But a terminal has arrived on the market that itself is no bigger than a traditional credit card. Weighing in at under a couple of ounces, this great piece of technology can hold an x amount (usually less than a hundred) of transactions before it fills up its internal memory. All information collected on these terminals could then be uploaded by connecting to a computer, after which the user can start from scratch.

Although many will consider that merchant processing is not yet perfect, the advancement of technology at least gives hope that as things progress, credit card transactions will become easier and safer for both the business and the customer.

3 Credit Card Services You Need To Know About

If you carry a credit card but know nothing about the various credit card services available, you don’t know what you’re missing. Ask yourself these questions… How will your credit card balance be paid if something happened to you? Who do you turn to if your credit cards are lost or stolen? What do you do if you get in over your head with debt? Credit card services have the answers. Here are a few you should get acquainted with.

Credit Card Services That Offer Insurance

Insurance can be a beautiful thing. That’s why many credit card services offer various forms of it. Whether you become disabled, unemployed or (heaven forbid) deceased, there are insurance products that will take care of things for you.

While many credit card companies offer insurance directly, you might be able to save money by looking to the credit card services that offer it independently. Just make sure you understand the exact terms of the insurance policy being offered. If you become disabled, exactly how long will the insurance make payments for and how much will they pay? Are there exclusions to a death benefit? Does it have to be an accident or are illness and natural death covered as well?

Check with at least two credit card services to see what types of insurance are available to you and compare costs. Then you can be sure you’re getting the best coverage at the best price.

Stolen Credit Card Services

Having your credit card stolen is a nightmare to begin with. The headaches only multiply when multiple cards are involved. Fortunately there are some credit card services that can help with this already-bad situation.

Stolen credit card services maintain the contact info and account details for all of your credit cards. Then, if your cards are lost or stolen, you just call the service and they take all of the steps required to notify your credit card issuers. Your old cards will be canceled and new ones issued. These credit card services make a hard situation a little bit easier to deal with.

Debt-Related Credit Card Services

One of the pitfalls of carrying credit cards is some consumer’s tendency to accumulate too much debt. That’s where debt-related credit card services can be very beneficial. These services can counsel you on how to properly manage your credit cards and can even help you navigate your way out of debt.

If you carry credit cards and have never looked into these credit card services, now is the time to do it. As a wise man once said — it’s better late than never. You just never know when these credit card services will come in handy.