Things To Know About UNSECURED CREDIT CARDS - PowerPoint PPT Presentation

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Things To Know About UNSECURED CREDIT CARDS

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There are two basic credit card types: secured and unsecured. An unsecured credit card is a card (and credit line) that doesn't need any collateral deposit from you. This presentation will explain how an unsecured credit card works. If you are ready to get your own unsecured credit card, we compiled unsecured credit cards for bad credit here – PowerPoint PPT presentation

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Title: Things To Know About UNSECURED CREDIT CARDS


1
Things To Know About
UNSECURED CREDIT CARDS
  • By www.newhorizon.org

2
  • There are two basic credit card types secured
    and unsecured.

This presentation will explain how an unsecured
credit card works.
3
What's an Unsecured Credit Card
  • An unsecured credit card is a card (and credit
    line) that doesn't need any collateral deposit
    from you.

4
  • These unsecured credit cards are usually meant
    for those people having a rather good credit
    rating.
  • Virtually all unsecured credit cards may include
    a credit limitation.
  • This is the whole quantity of credit which you
    are able to bill to the card.
  • If you go over that limit, then you might be
    penalized.
  • The actual quantity of the credit limit is set by
    the card issuer also it doesn't need to be
    identical for each individual.
  • To put it differently, 1 individual could have a
    limitation of 500 while some other might have a
    limit of 5000.

5
  • There are a few critical issues connected with a
    unsecured credit card which customers should
    know. Some of those problems include

6
The Grace Period
  • The grace period is the period of time which you
    need to pay your balance prior to the card issuer
    starts charging you interest on the balance.
  • Should you pay your balance in full before the
    grace period ends you won't be charged interest.
  • Each firm has its own quantity of time for
    elegance payments so make certain that you read
    every organization's policy.

7
Annual Fee
  • Before you apply for an unsecured credit card
    view whether the provider charges an yearly fee.
  • This is a annual fee that's billed to your
    account or might need to be paid ahead of time.
  • Annual prices are more often related to secured
    credit cards but you will see them with unsecured
    loans also.

8
Balance Transfer
  • A balance transfer is when you've got an present
    equilibrium with a different organization and you
    move that balance over to the new card.

9
Annual Percentage Rate
  • This is the interest that the firm is going to
    bill you if you do not pay off the full balance
    over the grace period permitted.
  • As you might imagine, the lower the ARP, the less
    you will have to pay in interest rates.

10
Finance Charge
  • Your bank card could include finance charges
    which are over and beyond the APR.
  • Finance charges are most often triggered when you
    take out a payday advance.
  • Again, make certain that you know these fees
    until you use the card for purposes that activate
    added finance charges.

11
Platinum or Gold Cards
  • These cards generally carry a higher credit limit
    and might include a few additional advantages or
    benefit programs.
  • These are nice to have but be certain that you
    aren't paying extra for something which you won't
    use.

12
Read to get your own unsecured credit?
  • We compiled unsecured credit cards for bad credit
    here.
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