Pre-Approved Credit Cards – Advantage Or Evil?

Every one who has a mailbox is used to receiving tons of letters from banks that promise preapproval for fancy credit cards. People are sick of them, they throw them away and send them back to the banks, but few of them know how dangerous these letters may be. Learn how they can damage your credit and assets, decide if preapprovals are good or bad for your life.

In the century of plastic money and 'buy-before-you-earn' principle of living banks and card companies fight to the bitter end to get hold of another bite of consumers' loyalty. But at the same time they won't lend their money as simply as it may seem. Generally, the bank accepts a list of potential credit card applicants. After a bit of sorting, the bank sends pre-approval letters to those who are likely to apply.
In practice, if you make a credit card application for the pre-approved offer, the bank makes another inquiry on your credit which can sometimes result unfavorably. But this is not the only reason why one should feel dubious about pre-approvals. Let's consider the matter to get the priorities right.
1. There are numerous preapproved credit card applications to be found in your mailbox daily.
You can look through many credit card offers by different banks, it enables you to watch the trends in the credit card market and makes it easier to find a card for your needs. On the other hand, you can get confused in the masses of paper, overlook the important correspondence or apply for too many credit cards, being unable to resist the temptation.

2. You receive pre-approvals in the form of common letters, they are delivered right into you mailbox.
It is easy to read the preapprovals and compare the terms they offer, but it is also risky to receive them, as some people can get access to your mailbox and apply for a credit card using your identity (in most letters you only have to put your signature, other blanks being filled out already). In this case the card can be delivered to the address one indicates and you will receive only statements.
Besides, you can be careless enough to throw these letters away, without tearing them to pieces, thus they can be found by criminals and used as described above.

3. All the letters say you were pre-approved for credit cards, so you don't have to worry about denials or credit check.
In cases, when the letter says you were pre-approved and contains a card, you were really approved by the bank and you can use the card (though the terms implied can be not very advantageous). In other cases, when you have to fill out an application, there is no guarantee that you will be issued the card. To tell you more, there is a possibility of your credit score being damaged. Before sending a pre-approval to you, the bank get a list of people to whom they can send letters. This is a soft inquiry, and you credit score is not influenced. As you fill out an application (for which you are not yet approved, actually), you credit score is checked for a second time, and this is a hard check, as it is made on your request this time. If you happen to be disapproved, your credit score will get lower.
The above one is the most serious danger a pre-approved letter can cause.
There are several rules a wise consumer should stick to. Do not be sure you are universally approved, if you receive pre-approved credit card applications. They are sent to those with no credit history even. Know your credit history, before application. Do not apply for a card by an unknown bank; do not apply for too many cards. Destroy all the letters thoroughly instead of simply throwing them away. Opt out from getting pre-approvals, if you do not need them.
And, finally, go and search for a good credit card on your own, it will bring better results that looking through tons of colorful paper.

Accept Business Credit Cards - Empower Your Business and Your Clients

Businesses today are increasingly making use of business credit cards to transact, both as vendors and as buyers. This trend in spite, there are still a number of vendors who do not accept business credit cards from their business clientele. The truth of the matter is that if such a vendor wishes to achieve higher trading volumes and increase its client base, accepting business credit cards changes from being an optional, to a must.

Accounts receivable is not only a nasty trap, but also creates a vicious cycle. Vendors that do not accept business credit cards, often agree to extending credit to their clients in order to retain their custom. Although this may be a necessary business practice, it does place unnecessary strain on the business’ finances: Unnecessary, because by accepting business credit cards, you can retain your clients and mitigate your cash flow risk at the same time.

The benefits of accepting business credit cards are numerous and include:

Boost Your Sales: When your clients are in a position to purchase what they want immediately, most of them will. When they make that immediate purchase, your sales are boosted. A simple browse - either in your store or on your web site - may turn into a profitable visit if you enable your clients to make payments with their business credit cards.

Bolster Your Cash Flow: Many merchants who do not have sufficient cash flow with which to support growth, may be victims of high accounts receivables. One of the quickest ways to free your business from this trap is to start accepting business credit cards. Stop billing your clients and start billing their banks instead! When you accept business credit cards, the revenue from the sale will reach your bottom line much sooner than accounts receivables would.

Put Smiles on Your Clients’ Faces: Clients obtained their business credit cards for a variety of good business reasons and will want to use these. Don’t allow your clients to find alternative suppliers purely because your business is not able to process business credit card transactions. When business clients are searching for a supplier, and they want to pay by means of their business credit cards, they will search until they find a supplier who does. Accepting business credit cards places you in the running for their business – and that is a good place to be!

Put Smiles on Your Financial staff’s Faces: Your accounting department will be very happy when you decide to accept business credit cards as payment for purchases. They will be freed from the hassles of paperwork and the headaches of collecting all your accounts receivables on time. If one compares the collection of outstanding accounts from many of different clients to collecting from the relatively few merchant services that issue business credit cards, the latter is a walk in the park.

Accepting business credit cards may be necessary to enhance and grow the business relationship you enjoy with your clients. It affords your clients the opportunity to make use of their preferred method of payment and liberates you from the accounts receivable trap at the same time.

Things to Watch out For When Applying for a Credit Card

It would be nice to think that all credit card issuers are fair and just, however, such is not the case. Not all credit cards are the same, nor are those that issue them. Many try to take advantage of of an unsuspecting public. Below are a few pointers to look out for when applying for a credit card.

It would be nice to think that all credit card issuers are fair and just, however, such is not the case. Not all credit cards are the same, nor are those that issue them. Many try to take advantage of of an unsuspecting public. Below are a few pointers to look out for when applying for a credit card.

• Pay attention to the interest rate being charged. While, as stated, you can expect to pay a higher interest rate, it should not be too excessive.



• Do not even consider cards that have a zero grace period. This means that they begin to charge interest from the day the charge occurred. You wind up paying interest on interest. There are numerous cards out there that provide a 25 day or so grace period allowing you to have a chance to pay off the charge before interest is tracked.



• Do not get over anxious. Read the fine print with each card you are wanting to apply to. If you do not understand a benefit or aspect of the contract seek out understanding. The issuer is in business to make a profit and you can rest assured that the contract leans in their direction. Your job is to choose the one that benefits you the most. Your primary objective is to have a clear understanding of the interest rates, fees, and penalties involved and what circumstances will those rates and fees increase, or under what circumstance will you be penalized.



• With the huge consumer lending boom in the United States there is a considerable amount of fraud going on. Once you have established good credit and your credit score reaches various levels of acceptance, offers will flood your mail box and your phone will ring off the hook. Never accept credit card offers over the phone, or that come in the mail. Sales people undergo extensive training to sell you something you do not need or want. When you desire to increase your credit level, or desire another card with lower interest, seek out the offer that meets your specific need.



• If you make a couple of applications and are turned down, consider having someone who you trust and who trusts you to co-sign for a card. Continual denials will result negatively on your report. This, however, should be a last resort as whatever happens does not only reflect on your credit report, it affects theirs as well. If you apply for a guaranteed secured, guaranteed store or catalog card, or a prepaid credit card this should not be necessary.



• Only apply for the credit you need. Too much can be tempting and might stretch you too thin come the end of the month. Also, having too much unused credit can prove to be harmful when you go to apply for a more serious loan such as for a car simply do to the fact that, although you do not use it, it is available to you at will and lenders take this into consideration when reviewing your application and it is reflected on your Credit Score.

Credit cards add that bit of security in your life

Credit cards do add a bit of extra punch to your life. Nowadays you can apply for zero interest credit cards and pay all your bills and expenses with the card and then pay back within the stipulated time frame and pay no interest too.

Credit cards do add a bit of extra punch to your life. Nowadays you can apply for zero interest credit cards and pay all your bills and expenses with the card and then pay back within the stipulated time frame and pay no interest too. There are many that offer you low interest credit cards but they come along with a host of extra benefits and surprising offers. Your credit card could actually save a lot of money for you. Sounds amazing well, apply for a credit card and then reap the benefits and see how your credit card also saves money for you too.

You can get to your nearest bank or any of the financial institutions that offer credit cards. Give in your credit card application, read carefully what the credit card has to offer. Different credit cards offer you different kinds of benefits and offers. You need to choose the right one for yourself. Most credit cards charge you a nominal annual fee but generally the offers and discounts they offer hugely overweigh the annual fees that you have to pay to keep the credit card active. There are many low interest credit cards and they are very popular in all parts of the world.

There are a host of services that are offered by the credit cards. From exclusive lounges to airports and free car wash at the gas station while you fill your car up, credit card holders do really enjoy a host of free services just by making a credit card transaction. Imagine if you had to pay for the services, how much money it would have cost you. Well, is that not a saving for you? Zero interest credit cards really ease up your expenses for you. Buy something during Christmas and you can easily pay back the next month and no interest is charged, it is truly like borrowing money from a friend.

Before you fill up your credit card application, do take time to find out about all the services and billing dates that the credit card has to offer. Some of the credit cards also offer low interest credit and easy installments pay back. There are many that do not charge any fees and also offer you zero installment credit. It is for you to decide which kind of credit card would be ideally beneficial for you. You can take the help of the customer service personnel of the credit card offering bank or financial institute to access your needs and suggest you the best credit card that would allow you a comfortable credit and at the same time extra benefits for you.

Fill in your credit card application today and feel the comfort of having a zero interest credit card or a low interest credit card. Whatever suits your need a credit card would really add a pinch of security into your life. Start using credit cards right away and experience the fun of not having to carry cash and enjoy the free benefits and offers that come along with all credit cards.