Credit Report Repair

More Credit Card Options

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You may not realize that there are several alternatives to the credit cards offered by mail and those annoying phone calls you receive right at dinner time.

There are five of the alternatives to credit cards listed below.

Debit cards are relatively new in many places, however, they have been used in several European countries for numerous years. By definition, they are just like credit cards and are accepted in most places where credit cards are accepted.

The one big difference between these two cards is that instead of getting a bill at the end of the month, debit cards take the money directly out of your bank account. You must be made aware of the fact that you may not be as well protected against fraud with a debit card as you would with a credit card. You could also describe a debit card as being an electronic check.

Prepaid credit cards and regular credit cards work similarly, however, with pre-paid credit cards you are not allowed to carry any negative balances. You have to deposit money into your pre-paid credit card account before you can spend with it, this means that you ‘top-up’ this card the same way you do with pre-paid cell phones. This could be a great method of controlling spending and you might even consider giving one to your child to control their spending. Just the money that has been put on the pre-paid credit card can be spent if it is stolen, so this makes it safer than a debit card.

A better way to borrow money instead of using a credit card is the use of bank overdrafts in conjunction with a credit card. When you use a bank overdraft the bank sets the limit on it, in accordance with the amount you deposit into your account each month and you do not have to pay it off until you want to pay it off. It gives you the ability to have your account go into the red or negative numbers. Relatively high interest rates are charged for overdrafts by most banks, but they are generally not as high as a credit card company will charge; also when you are considered to one of the better customers, the rates could be better than ever.

Another alternative to credit cards are the traditional loans. If you are planning on purchasing a single big ticket item at a fixed price, such as home improvements or a new car, it is probably better to try to get financing for your dreams through a bank or some other type of lender. If you consult with these types of lenders they will be able to extend a loan to you at a much better rate of interest than a credit card company’s and they can help you set up a repayment plan to better fit your budget.

Credit unions is the last alternative to credit cards to be listed in this article. A credit union is just like a bank, but one that is more local; a credit union is a co-operative owned by it’s members and run by the community and it is a great place to borrow from. Credit unions do not have any owners or shareholders they want to make a profit for and they are limited by laws on how much interest they can charge borrowers, so this is a great place to borrow money. Credit unions are a solid alternative and well worth looking into, if there’s one in your area.

Visit JSNet.org for more information on credit cards including great deals on balance transfers

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