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Debit Cards.
Debit cards are
often used in many European countries, but are relatively unheard of
elsewhere. Basically, they’re just like credit cards and are
accepted everywhere credit cards are accepted - the only difference
is that they take any money you spend directly from your checking
bank account, instead of you getting a bill at the end of the month.
You should be aware, though, that you aren’t as well-protected from
fraud with a debit card as you would be with a credit card. Also you
do not receive the same benefits as the credit card holder. You will
need to check your postion with your card
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Pre-Paid Credit Cards.
These
are cards that work just like credit cards, except that you can’t
have a negative balance - you have to put money on the card before
you can spend it. That means that you ‘top-up’ the card, like you
would a mobile phone. This is good if you want to know how much
you’re spending, not to mention that you can even give the cards to
children. They’re also safer than debit cards, since someone who
stole the card could only spend whatever money was on it at the
time.
Bank Overdrafts.
A good bank
overdraft, used together with a credit card, can be a far better way
of borrowing money than using a credit card. Your overdraft limit is
set by the bank according to how much you gets paid into your
account each month, and you don’t need to pay it off until you want
to.
Basically, it just gives your account the facility to go
into minus numbers, if you want it to. Many banks charge relatively
high interest rates for overdrafts, but rarely as high as a credit
card - and they will give much better rates for good customers.
Real Loans.
When you’re buying one big thing at a fixed price (like a
car), or you’re going to spend all the money on one type of thing
(home improvements, for example), it’s worth budgeting it all out
and going to a bank or another loan company. They’ll be able to lend
you the money at a much better rate than a credit card would, simply
because they know why you’re taking the loan and can set regular
monthly payments for you to repay it.
Credit Unions.
Credit
unions are like banks, only more local. They are co-operative, owned
by their members and run by the community, and are a great place to
borrow money. This is because there are limits in law on how much
interest credit unions can charge, and they don’t need to make a
profit for owners or shareholders, because they don’t have any. It’s
well worth checking if there’s one in your area.
About the author:
Gordon Goh is the owner of www.Easy-Credit-Card-Guide.com offering free credit card
information for everyone. You can receive a free credit card at
http://www.easy-credt-card-guide.com and free Credit Debt Repair Guide at
http://credit-debt-repair.cogia.net
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