When you read this title, probably you can tell me that I am getting crazy, but please, don't get me wrong. I can give you some advices that can help you to share your credit card "-obviously in a very relative way"- so that other members of your family can receive the benefit of that. When we talk about sharing your credit card, we are not going to share the credit card itself, what you are going to do is sharing your credit card limit. There is an advisable way you can do that so that members of your family "sons, brothers or even your parents"- can have a secondary no fee credit card where they can make expenses and use this card to purchase items in the Internet but is your responsibility makes the payments of this credit card.
This is something simple to do but you should be aware of that because this practice is only applied for people that you can trust because, as matter of fact you have full responsibility of the payment of this secondary. In the following lines, I will describe some benefits of that and several recommendations that are good you follow to share your credit card with people you trust and that are going to make a proper use of this payment instrument.
-Determine if you have full responsibility to pay debts for secondary credit card holders: It is important that you can evaluate the types of secondary credit card that you are going to authorize for this person you trust. There are secondary credit cards that when you sign the contract the secondary credit card holder have the absolute responsibility to pay debts but there are other issuing banks offering secondary credit cards where the primary holder is the one that should pay all debts for the primary and secondary credit card. Also, you can have more than one secondary credit card.
For instance, you can have a credit card limit of $5000 and you distribute your credit card limit in $3500 for you "-as the primary credit card holder"- then you have $500 for Luisa who is your 18 years old daughter and a second secondary credit card that is for Mark "-who is your 20 years old son"- of $1000. In this example you can see a primary credit card holder and two secondary credit card holders. In some cases, the primary credit card holder should pay for all expenses and consumes made by Mark and Luisa.
-Avoid your sons use your credit card: It is good that you can control that and, authorize a secondary credit card for your some is an alternative to give them some of financial independence as well as more security for you.
-Evaluate available options from issuing banks: Investigate about the offers banks can provide.
-Have absolute control of payments: Verify that payments are made because an inappropriate use of secondary credit cards can affect your credit score.
Friday, August 7, 2009
Tuesday, August 4, 2009
Credit Cards and Electronic Frauds
Credit cards have a close contribution to electronic fraud in Australia because every day there are thousands and thousands of electronic operations that have place in the cyberspace and an important amount of these transactions are fraudulent. There are many reasons why electronic fraud have place even in the home of many of us, when we try to purchase a product that should be delivered and shipped to our destination within a short period of time when suddenly we realized something is going wrong. We ask to the seller about the item that should be sent two or three weeks ago and the merchant says the item was shipped to right destination. This problem is affecting million people around the world as well as in Australia.
The electronic fraud is internationally a huge problem because this Industry is considered as an Industry that is competing with other fields and sectors of the world economy. According to Cyber source, the electronic crime-fraud is an industry that has reached the last year $3 billion in loss. There some estimation, for each transaction of $100, there is a loss between $4 and $12 due to electronic fraud. I personally think that electronic fraud is a reality in our society but the credit card system as well a lot of online shops are very vulnerable to attacks and when people dont have sufficient information about how use their credit cards it could be very dangerous for them.
In other words, credit cards are good for a lot of things but also, most of the electronic fraud is produced due the use of stolen credit cards, credit card cloning-duplications as well as people that can use your sensitive information to purchase goods and services with your funds. There are a lot of secure mechanisms that can help you a lot protect yourself against electronic fraud but none of these methods are 100% secure. Credit card industry and credit card associations are very aware of that and they have invested billion dollars to reinforce the security systems, to train merchants and prove more tools to them so that they can have their online shops fully trusted.
There are other products used in other places that have been used to protect users from electronic fraud. For instance, there is an international movement that is promoting the use some coupons having a PIN or secret code that is used to purchase goods and services through the Internet. These coupons are great, because you dont have to input your personal information nor credit card information. It can provide you a better level of protection as well as a higher discretion, when you are purchasing things through the Internet. It is better than use no fee credit cards, but there are only some few websites that can accept these coupons.
Moreover, I have seen these coupons are absolutely free; you dont have to pay any fee when you purchase them. They are like cash money that can be used to buy products, make online payments and consume everything you want in the Internet.
The electronic fraud is internationally a huge problem because this Industry is considered as an Industry that is competing with other fields and sectors of the world economy. According to Cyber source, the electronic crime-fraud is an industry that has reached the last year $3 billion in loss. There some estimation, for each transaction of $100, there is a loss between $4 and $12 due to electronic fraud. I personally think that electronic fraud is a reality in our society but the credit card system as well a lot of online shops are very vulnerable to attacks and when people dont have sufficient information about how use their credit cards it could be very dangerous for them.
In other words, credit cards are good for a lot of things but also, most of the electronic fraud is produced due the use of stolen credit cards, credit card cloning-duplications as well as people that can use your sensitive information to purchase goods and services with your funds. There are a lot of secure mechanisms that can help you a lot protect yourself against electronic fraud but none of these methods are 100% secure. Credit card industry and credit card associations are very aware of that and they have invested billion dollars to reinforce the security systems, to train merchants and prove more tools to them so that they can have their online shops fully trusted.
There are other products used in other places that have been used to protect users from electronic fraud. For instance, there is an international movement that is promoting the use some coupons having a PIN or secret code that is used to purchase goods and services through the Internet. These coupons are great, because you dont have to input your personal information nor credit card information. It can provide you a better level of protection as well as a higher discretion, when you are purchasing things through the Internet. It is better than use no fee credit cards, but there are only some few websites that can accept these coupons.
Moreover, I have seen these coupons are absolutely free; you dont have to pay any fee when you purchase them. They are like cash money that can be used to buy products, make online payments and consume everything you want in the Internet.
Sunday, August 2, 2009
Should you Trust a credit Card?
Your credit card could be an interesting object of study, because there are a lot of people that love them and other hate them a lot and blame them "-the credit card"- as the reason of all their satisfactions and fails in life. Despite of all this, it is important you know that credit cards have advantages and disadvantages, but above all credit cards are made by humans and controlled by complex financial-electronic systems that are also made by humans. In other words, those systems can fail but they often dont fail as often as we probably want.
In this article, I just have the intention to show some basic reason why you shouldn't trust low rate credit cards. There are people that in many cases have received their credit card balance, they may be transactions that are made, and it could be a problem for you. I really disagree with the idea of checking your credit card balance frequently and monitoring if somebody is using your credit card information and things like that, because it evidently could keep you in a paranoia estate. I don't like to talk about that, but I consider you worth to have this information at hand, so that you can only trust in you and never in machines as well in your credit card balance. Let us now see some important advices that are going to help you to have more peace of mind.
-Always read quietly your credit card balance and details: It is good that you can be organized and find out exactly those documents your banks are sending to you. If you can read with a steady state of mind, you can detect if there is any problem in your card statement. Sometimes people are not aware, whether the bank is taking more money and they never claim anything because they simply dont know anything about this amount. Also, issuing banks are very smart to find out those kinds of customers and credit card users.
-Determine if the credit card interest rate, for your card has been properly applied: If your credit card interest rate is of 1.5%, in your contract, you should determine that it is correctly applied. If you determine that this amount is higher you should immediately call to your bank and ask an explanation of this situation.
-Call to your issuing bank customer service if you cant understand something: Sometimes we cant understand, what is written in our credit card balance report. If it occurs, you should ask to your banks customer service agent and they are trained to help you in any query you may have.
-Keep always your credit card vouchers: Your credit card vouchers are your savior in many situations where you should provide a proof of your expenses.
-Calculate the amount you have to pay based in your vouchers instead in the details of that your issuing bank sends to your home: Calculate always the amount using your vouchers because they are a physic document that certificates your expenses with your credit card.
In this article, I just have the intention to show some basic reason why you shouldn't trust low rate credit cards. There are people that in many cases have received their credit card balance, they may be transactions that are made, and it could be a problem for you. I really disagree with the idea of checking your credit card balance frequently and monitoring if somebody is using your credit card information and things like that, because it evidently could keep you in a paranoia estate. I don't like to talk about that, but I consider you worth to have this information at hand, so that you can only trust in you and never in machines as well in your credit card balance. Let us now see some important advices that are going to help you to have more peace of mind.
-Always read quietly your credit card balance and details: It is good that you can be organized and find out exactly those documents your banks are sending to you. If you can read with a steady state of mind, you can detect if there is any problem in your card statement. Sometimes people are not aware, whether the bank is taking more money and they never claim anything because they simply dont know anything about this amount. Also, issuing banks are very smart to find out those kinds of customers and credit card users.
-Determine if the credit card interest rate, for your card has been properly applied: If your credit card interest rate is of 1.5%, in your contract, you should determine that it is correctly applied. If you determine that this amount is higher you should immediately call to your bank and ask an explanation of this situation.
-Call to your issuing bank customer service if you cant understand something: Sometimes we cant understand, what is written in our credit card balance report. If it occurs, you should ask to your banks customer service agent and they are trained to help you in any query you may have.
-Keep always your credit card vouchers: Your credit card vouchers are your savior in many situations where you should provide a proof of your expenses.
-Calculate the amount you have to pay based in your vouchers instead in the details of that your issuing bank sends to your home: Calculate always the amount using your vouchers because they are a physic document that certificates your expenses with your credit card.
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