Drawbacks Of Not Having A Credit Card

There are very few things that are as ubiquitous as the credit card. This little rectangle of plastic can give us so much convenience, but to the unwary can also bring so much misery. Credit cards may be the easiest way to get a standby line of revolving credit, always available when you need it, but it can also be the fastest way to get mired in credit card debt. People may complain about credit card debt but everyone agrees that despite the risks, there are too many drawbacks to not having a credit card.

Credit cards as we know them today are relatively new and are continuously evolving. The major laws protecting consumers’ rights involving credit were passed in the mid-seventies. It may be timely that Congress is currently considering added measures to enhance consumer protection. Yet, for a long time, people were using credit cards as a convenience product rather than as loans. Many people paid their entire balance each month. Credit cards were not as essential then as they are now.

Banks do not make money if people did not carry balances since a grace period for purchases, where no interest is charged for one month, is usually standard. As far as banks are concerned, the best credit card customer is one who carries a balance each month after remitting the minimum payment on time. Credit card issuers got really creative and have managed to make credit cards a necessary part of daily living. They worked to have credit cards accepted in more and more establishments, and to have credit card holders understand the many benefits and conveniences that they stood to gain from using their credit cards.

In our times, credit cards no longer a luxury. If you travel, you need your credit card to book flight reservations and reserve hotel rooms. You also need credit cards to rent cars, to purchase gas, and buy products by telephone or online. Being without credit cards today would make your life as difficult as traveling by horse and buggy. Without our even being aware of it, credit cards have become a business standard.

A credit card is one of the quickest ways to build a credit history. When you apply for a credit card and you still have no history, there are credit card issuers that you can approach. These issuers specialize in providing credit card products to customers who, because they are still attempting to establish or expand their credit history, are generally evaluated as higher credit risks. Many college students, for example, fall into this category, along with those who have limited employment income, or otherwise have poor credit history.

Today, having credit is a necessity. An inexpensive, reliable new car costs thousands of dollars, and although most people may want to pay in cash, the reality is they will need a loan. The rates and terms of that loan will be determined by your credit history, which is easily obtainable from the credit bureaus throughout the country. If you have used credit wisely in the past and repaid previous loans on time, you will be in a favorable position. If not, the result will be a more costly loan with higher interest rates.

The use of the credit card as a source of loans is illustrated by the fact that overall credit card debt now runs several hundred billions of dollars. Credit card debt has risen quickly to unimaginable proportions, and still banks continue to compete heavily for your business. Every year, billions of credit card flyers with invitations to transfer to another card issuer are sent out. The average American credit card holder is now in possession of almost a dozen credit cards, with average debt of $13,000. The credit card has indeed become a cornerstone of everyday living. Other than its necessity in making flight and hotel reservations, credit cards help the credit card holder with:

o “Cashless” transactions that avoid the risk of carrying around too much cash

o An interest-free loan from the time of purchase until the payment is due

o Cash advances from an ATM, in emergency cases

o The ability to shop by telephone or online

o The ability to purchase items when cash is not sufficient

o The ability to withhold payment when dissatisfied with a purchase or to dispute erroneous billings

o An instant source of credit that is available without filling out forms or undergoing further credit checks.

Cash, when it gets lost, is irretrievable; unlike cash, if you lose your credit card you can get a replacement no matter where you are. You also get protection against fraud or unauthorized use, which means you have minimal or even zero liability. Credit cards can be a resource in case of emergencies, such as a large car repair bill or an unforeseen expense.

Credit card companies normally provide the card holders with copies of their monthly statements. These statements list down in detail all charges that have been made against your credit card account. The monthly statements can thus serve as a complete financial record which, to the prudent credit card user, can become a guide for budgeting and controlling expenses. If the card user is a student, the monthly statements can become a tool for learning financial responsibility. Indeed, for personal finances and small businesses, credit cards have become a necessary financial tool.

There is also the prospect of being able to save money on future transactions because the usual credit card offers a number of rewards privileges that include frequent flyer miles, cash rebates, discounts or free telephone calls, points that go towards reduction of the cost of airplane tickets and hotel stays, points that can be redeemed as consumer products or gift certificates. All of the major credit cards — Visa, MasterCard, American Express — offer a multitude of card products with endless permutations on rewards, benefits and privileges that you can enjoy to maximize the value you get from your credit cards.

Ownership of a credit card entails certain responsibilities on your part. If these responsibilities are not exercised dutifully, you could unwittingly put yourself in a difficult situation where you lose your credit card privileges and suffer the drawbacks of not having credit cards. Your primary responsibilities as a credit card holder include the obligation to pay your bills on time, to stay within your pre-set spending limit, and to maintain the worthiness of your credit.

The convenience of having credit cards may tempt you to live beyond your means. You need to remember that excessive credit card debt and late payments will impair your credit rating and make it more difficult and costly to obtain credit in the future. Remember it is very easy to lower your credit ratings, but painfully slow to raise it.

It is now more important than ever to be effective at managing credit card debt. This is particularly true for people living from paycheck-to-paycheck and who must dip into their credit sources to make ends meet. If you are able to plan your credit spending and payments to your account, you will be rewarded with higher lines of credit and better rates. Otherwise, if you’re not efficient and disciplined with your credit card, you’ll have very few options available.

Women’s Credit Card – How To Be One Step Ahead Of Credit Card Companies

Women’s Credit Card – Compare Women’s Credit Card and find out what is low APR and balance transfer credit cards.

Have you ever wondered why you get credit card offers in mail when you have not even made a request for it. If your name and address is in public information system than by now you must have received many credit cards offers. Each giving better offer than other competing credit card company.

With so much information to process will lead to confusion and wrong acceptance of credit cards. Choosing a right credit card is a daunting job, it needs careful analysis and close scrutiny of fine points written in small fonts. Special attention should be given to credit card rates, when new higher rates will apply. Give importance to reading terms and conditions of credit cards. You will get new understanding of how credit cards work. Before you start applying credit cards you need to know few important terms used in credit card. By knowing these terms will help you applying for a correct credit card.

Credit Cards

As you know small plastic card known as credit card is in dimension of 85.60 X 53.98 mm. As the name suggest you get moneyon credit or you buy things in market on credit. The credit card differs from Debit card because when you make purchase by using your credit card it doesn’t remove money from your bank account. where as when you do purchase using Debit card it removes money from your bank account after every transaction you make.

When you make transaction using credit card the credit card company lends money to merchant where you did shopping. Usually you get one billing cycle money on credit without any interest being charged to you.

All is required from you is to pay full balance before due date to avoid interest charges. In case you have made big purchase which you can pay in full in one month, try paying off balance as soon you can to avoid more interest charges. In case you are not able to pay money back to credit card company please ensure you pay at least minimum balance required by due date. Usually this amount is little and it helps you to keep your account in good standing. Ideally this option should be avoided as it will pile interest amount on your borrowed amount and in no time your borrowed money will start swelling.

Credit card company issues credit card to user after his/her request for application has been approved.

Every credit card company will set credit limit for each customer based on his/her credit strength
The credit card user will make purchases by using issued credit card.

The credit card on average is in dimension of 85.60 x 53.98 mm

Every credit card has number written on it by which your account is identified.

Some of the known credit card companies: Chase – Bank of America – Citigroup – Wells Fargo – American express – discover etc. Practically every major bank issues its credit card to users.

When you make purchase at any merchant you sign a small receipt acknowledging you will pay same amount to your credit card company.

Few of the transactions can be done over phone, such as airlines and hotel booking, by giving your credit card number and expiration date etc. Please be care full when making such transactions. Ensure you do such transactions with trusted parties.

Almost all merchants or store owners have credit card verification system, while you swipe your card for payment it is checked in background for fraud or missing card status.The credit card payment terminal or Point of Sale (POS) system helps store owners to do verification with issuing credit card company’s system.

The security code of credit card is printed on back of credit card.

Each month credit card company will send monthly statement to credit card users. The statement will include details of transaction made by credit card user. The important details will be visible such as day of transaction, merchant’s name, amount paid etc. This information helps you to cross verify purchases made with amount charged on credit card.

The credit card statement also gives other information such as billing cycle, due date (payment date), total balance and minimum payment you can make.

The grace period is the number of days to make payment back to credit card company from the day he/she made purchase.

The credit card companies form associations and many bank become member of these credit card associations. The known associations are VISA, MASTERCARD,DISCOVER, AMERICAN EXPRESS etc.

Electronic transaction processing network, which allow electronic transaction to work through secure system. Following are few companies which are in this business. NDC Atlanta, Nova, Cardnet, Nabanco, Omaha, Paymentech, Vital, VisaNet and Concord EFSnet.

Secure credit card: Some credit card companies issues secure credit card after applicant has deposited 10% of credit limit into his/her account. This type of account is for new users with very little credit history to show.

Pre-Paid Credit Card: This is not really a credit card, because no amount is borrowed from lender. This type of credit card is used by students when their parents deposit required amount into account for their shopping. This type of credit card comes with VISA/MASTECARD logo thus is called pre-paid credit card

Security of credit card is dependent upon the number on credit card. Few merchants will allow certain types of sale by just getting credit card number. Ensure you don’t compromise security of credit card.

You can also withdraw money through credit card at ATM’s using your secure pin number
Annual percentage rate (APR): Learn what is APR and how it is calculated.The annual percentage rate is the interest you will be paying on borrowed money to lender.

The APR rate applicable to your account will differ from the rate which was given as introductory, partly because of few month introduction rate and other fees get added to final interest calculation.

In simple terms APR is monthly interest multiplied by 12 months will result in annual APR rate. This assumes there is no other fees involved.

Balance transfer: Why would you transfer debit amount in your credit card to other card. the reason could be better interest rate and terms. some of the credit card companies give introductory offers such as no interest on balance transfer for 6 months to 2 years.

These offers are good when you are paying high interest rate or you have high balance on credit cards and you are looking for cooling period to fix your debits.

How important is to protect your Credit Card

This small plastic card which you carry in your wallet is very precious more than your jewelry you wear on your body. The security of credit card should be taken very seriously. Once your credit card is stolen, your account information is known to others, it will take good time before you will get those charged removed from your account.

Meanwhile your credit rating will take hit if there is big charge on your credit card and you are not able to settle those charges. take every effort to safe guard security of your on-line identity and security of credit card.

Few security tips: Always keep your credit card in secure place when not using.

Never reveal your credit card numbers to others.

Try to avoid giving your credit card information on phone.

Any loss of credit card should be immediately informed to issuing credit card company.

If you are using on-line access to check your credit card account, please use secure methods to protect your identity and credit card etails.

Install “fire wall” and good virus and spyware scanner on your computer.

Change your on-line account passwords periodically.

Never use public computers to access on-line accounts.

MoS2 Low Friction Coatings – Not Just For The Aviation Industry Anymore

MoS2 low friction coatings (also known as molybdenum disulfide, also spelled, disulphide) are regarded the most widely used form of solid film lubrication today. What makes them unique (with the other dichalcogenides) is the weak atomic interaction (Van der Waals) of the sulfide anions, while covalent bonds within molybdenum are strong.Thus, lubrication relies on slippage along the sulfur atoms. All the properties of the lamella structure are intrinsic. No external form of moisture is required. In fact, best performance from MoS2 low friction coatings is attained in the absence of water vapor, which are prone to surface adsorption. This makes them ideal under vacuum.There are a number of methods to apply MoS2 low friction coatings, including a simple rubbing or burnishing, air-spraying resin-bonded or inorganically bonded coatings, and more recently by sputtering through physical vapor deposition (PVD).Thickness will vary, depending on form of MoS2 low friction coatings, but typically ranges between 5 to 15 micrometer. Sputtering techniques can produce thin films of 0.2 micrometer. While plasma sprays will result in higher builds, beginning at 0.003 inch or more.Friction coefficient less than 0.05 is attainable, but will also vary with humidity and sliding conditions. Tests show friction decreases with increasing vacuum strength. Friction also lowers with higher load, faster surface speed, or both. In fact, MoS2 low friction coatings are superior to both graphite and tungsten disulfide (WS2). Friction with MoS2 low friction coatings is independent of particle size, though the larger particles can carry more load.Dry lubrication for MoS2 low friction coatings remains superior at higher temperatures, with oxidation rates remaining relatively low at temperatures up to 600 degrees Fahrenheit. And in dry, oxygen-free atmospheres, lubricating performance, even with oxidation products, is stable to 1300 degrees Fahrenheit.Higher air flow can affect oxidation kinetic rates in atmosphere. Molybdenum oxide products (MoO3) and sulfur dioxide. Since MoO3 alone offers dry lubrication, based on its relative softness, molybdenum disulfide coating are ideal in higher temperature environments. At higher temperatures, though, they are better suited under vacuum. In atmosphere, they are prone to water adsorption from air based on their hygroscopic properties.As with the other dry film lubricants, while differences may prove negligible, you will have to determine which is better for you: longer wear life or better performance, using MoS2 low friction coatings. Generally, friction will be slightly higher by coating both surfaces, rather than coating one surface only. But wear life will increase coating both surfaces.Friction can be good in so many areas of life. Without it we could not easily stop and start our motion, or change direction. But in moving machinery, friction causes considerable loss of energy, poorer performance, not to mention limiting wear life.As with many non-lubricated systems, the static coefficient of friction is higher than the dynamic coefficient of friction. The resultant motion is often referred to as ‘stick-slip’. Basically, the two surfaces stick together until the elastic energy within the system has accumulated to some threshold, where a sudden, forward slip takes place. Under magnification, it’s apparent the union of two surfaces is often limited to intimate contact only at the tips of a few of the asperities (small scale, surface irregularities). At these point areas, pressures relating to contact may be near the hardness of the softer material. Thus, plastic deformation occurs on some localized scale. This is known as cold welding. Where bonded junctions are formed between two materials.For lubrication to occur, these bonds, this adhesive component of friction, must be broken. And this is where products like MoS2 low friction coatings serve well.So, where are these products used today? Consider aerospace, automotive, marine and electronic, for starters. There, you’ll find MoS2 low friction coatings, again and again.