Credit Card http://credit-card.laws.com Credit Card Laws-Credit card Act 2009 Thu, 29 Sep 2016 15:44:44 +0000 en-US hourly 1 http://wordpress.org/?v=4.1.18 Ways for Credit Card Debt Relief http://credit-card.laws.com/credit-card-debt-relief http://credit-card.laws.com/credit-card-debt-relief#comments Sun, 05 Apr 2015 15:21:32 +0000

What is Credit Card Debt?

Credit card debt occurs when an individual’s debt, as a result of their credit card use, exceeds their ability to pay the debt. In essence, the debt is beyond the borrower’s disposable income and savings. This unfortunate situation leaves them vulnerable to increased fees, added interest and other terms associated with credit card debt. 

As a result of these terms, credit card debt possesses an insidious characteristic. At first the debt may seem manageable, but overtime as spending remains the same and the interest is piled on, the debt mounts to a suffocating level.

 Credit card debt is fairly easy to get involved with, even if the consumer maintains some sort of budget. The reasoning behind this prevalence is that financial institutions which issue credit cards do so with interest or APR rates attached. These rates are multiplied into unpaid monthly balances. Over time these small percentage increases can suffocate a borrower. 

Example of how Credit Card debt can amass

If a consumer has a credit card with an available credit line of $500 and an annual percent rate of 20% and spends the full credit amount of $500 in one month on various goods and services, he or she will be required to pay off that debt over time. Credit card billing cycles are monthly, meaning the individual is required to pay off all or some of the debt at the end of each month. 

If the individual does not pay the $500 and only pays the minimum (typically $15) the APR of 20% will be applied to the next month’s bill in the form of a monthly fee (.20/12), or .01667. Add 1 to this figure to reveal 1.016, which is then multiplied by your remaining balance. Therefore, if you have $485 due next month, you will take $485 and multiply it by 1.016 to yield a new balance of $492.76. This added $7.76 may not seem like much, but over time as more credit is made available and subsequently used, this figure will grow exponentially. 

Credit Card Debt Relief

There are numerous ways an individual can mitigate their debts. It is crucial to seek credit card debt relief because credit scores are largely based on an individual’s debt to credit ratio. Therefore, an individual with a high outstanding balance will possess a lower credit score. 

A diminished score will impede a borrower from obtaining a suitable credit card, and in grave cases, will impede an individual from obtaining sources of financing, such as personal loans, mortgages, leases and even employment. 

One of the basic forms of credit card debt relief is achieved through consolidation. Consolidating loans or outstanding balances enable a borrower to group their debts into one pool, thus allowing them to make fixed payments against their amount owed. Debt consolidation is often initiated by the lender. A borrower may contact the lender to effectively crate a repayment plan.

Another means to initiate credit card debt relief is to seek assistance by a third party, such as a credit counseling organization. These groups will educate individuals in regards to how to seek credit card relief and will also work with lenders to restructure the borrower’s debt obligations. 

The last form of credit card debt relief is filing for bankruptcy. This form of credit card debt relief may not be desirable, but it will effectively erase the individual’s debts over time. 



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The Importance of Credit Card Consolidation http://credit-card.laws.com/credit-card-consolidation http://credit-card.laws.com/credit-card-consolidation#comments Sun, 05 Apr 2015 15:21:32 +0000

What is Credit Card Consolidation? 

Credit card consolidation is a financial maneuver undertaken by those individuals stricken with credit card debt or high interest rates. 

The process of credit consolidation is initiated to lower one’s monthly payments by transferring the balance of one credit card to another card that possesses a lower interest rate. 

Credit card consolidation is a means to alleviate credit card debt specifically caused by high interest rates and fees. Credit card consolidation is recommended for those individuals who possess a considerable outstanding balance on a credit card that possesses a high APR, obscene usage fees and other costs that are considered undesirable.  Why Should I partake in Credit Card Consolidation? The APR attached to a credit card refers to the interest payments an individual must make for any balance that remains unpaid. For instance, if an individual possesses a credit card with a high APR of 35% and has an outstanding balance of $1,500, he or she is required to pay, in addition to the $1,500 or minimum payment, an additional $43.50 in interest. This interest payment, over time, will keep adding up, assuming the individual never satisfies the complete credit balance.

This exposure to a high interest rate could result in severe credit card debt. To avoid this undesirable situation an individual can initiate a credit card consolidation, which would effectively transfer the $1,500 to another credit card with a lower APR or interest rate.

In addition to achieving a lower interest rate, credit card consolidation streamlines your monthly payment obligations. In essence, the debt of one card is coupled into the payment obligations of another card. As a result, your debts are grouped together into one larger debt. 

This agglomeration enables you to make singular monthly payments to satisfy your credit card obligations. By combining debts, credit card consolidation exposes you to only one interest rate and diminishes your annual fees by eliminating the previously crippling credit card.

The majority of money management experts or credit counseling agencies will suggest that these consumers transfer high-interest balances to low interest credit cards. That being said, credit card consolidation must be undertaken with a distinct understanding of your credit card’s particular terms. The majority of credit card companies will charge fees for transferring balances. In addition, possessing a plethora of credit cards may actually complicate your future exposure to debt. Credit Card Consolidation and Balance Transfers A balance transfer credit card will allow holders to undertake what is known as a ‘balance transfer’ with regard to a preexisting, outstanding credit card balance. A balance transfer involves the movement of a balance incurred on one credit card onto a new credit card.

Through the undertaking of a balance transfer, the balance – ranging from a portion to the entirety of the preexisting balance – will be transferred to the new credit card. However, while Balance Transfer Credit Cards prove to be valuable and economical instruments for certain individuals, associated rates, interest, and charges should be investigated prior to engaging in balance transfers.


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The Secret Behind Credit Card Companies http://credit-card.laws.com/credit-card-companies http://credit-card.laws.com/credit-card-companies#comments Sun, 05 Apr 2015 15:21:32 +0000

What is a Credit Card?

A credit card is a plastic card that enables an individual to purchase goods, products or services by way of a credit line. The available credit and the card itself are offered by a financial institution, such as banks or credit card companies. These institutions will offer an individual (with a satisfactory credit score) a credit card that is accompanied by various terms and interest rates.

The interest rates are based off the individual’s credit score. Those with higher scores, meaning they are more likely to meet the terms and repayment schedules in the agreement, will be awarded with a lower interest rate and vice versa. 

What are Credit Card Companies?

Credit card companies are financial institutions who lend credit to consumers or businesses. In essence, the issuance of a credit card is a form of loan. The individual is given a line of credit that he or she may use to purchase goods. When goods are purchased, the individual must repay the issuing credit card company, plus any additional interest that falls under their specific plan.

Credit card companies, such as MasterCard or Visa, will lend lines of credit to only those individuals who they feel are credit-worthy, meaning the borrower is likely to pay off his or her credit card debts. If the individual fails to pay off their debts, credit card companies will implement various late charges, interest rates and other fees. 

If the individual fails to meet the demands of their repayment schedule entirely, the issuing credit card company will hire a debt collector or initiate an injunction against the holder of the card. 

Costs for Credit Card Companies

Banks or credit card companies typically borrow the money they lend to their clients or customers. Credit card companies will receive low-interest loans from other institutions and flip these loans to their clients at higher rates. For instance, credit companies may charge 15% on money lent to cardholders if the initial cost of borrowing was 5%. In this example, credit card companies will earn 10% on the loan offered to individual customers or clients. 

In addition to the money spent on original loans, credit card companies have considerable operating costs. These costs refer to the amount of money needed to run a credit card portfolio, including paying employee salaries, printing the cards, mailing statements, protecting clients from fraud, marketing and running computers to track every cardholder’s balance. 

Credit card companies also face costs when a consumer becomes severely delinquent on a payment (severe delinquency is typically regarded after six months without payment). In instances of severe delinquency, the credit card companies will declare the debt to be charged-off. The credit card companies will then list the failures of the holder on the debtor’s credit bureau reports. A charge-off is viewed as uncollectable. To credit card companies these bad debts are viewed as the cost of doing business.

Credit Card Companies Legality

Credit Card Companies will typically fall under the jurisdictions of both Finance Law and Commercial Law.


Finance Law is the legal specialty regulating and overseeing legislation applicable to the exchange and the circulation of monies. This takes place in both transfer activity undertaken involving hard currency, as well as Credit Card Companies. 

The precepts of Finance Law ensure that all terms latent within Credit Card Companies adhere to the Truth in Lending Act, which ensures that the terms of all Credit Card Companies are expressed clearly upon applying for credit with Credit Card Companies.

Commercial Law is the legal field that enacts the regulatory oversight of standards and practices occurring within the commercial marketplace. With regard to Credit Card Companies, statutory legislation undertaken within the precepts of Commercial Law ensures that any nature of predatory lending or financial exploitation is determined to be an illegal offense. 

Amongst the many types of legislation applicable to Commercial Law, the Fair Billing Credit Act provides consumer relief from billing procedures considered to be exploitative and deceptive.



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Credit Card Calculator http://credit-card.laws.com/credit-card-calculator http://credit-card.laws.com/credit-card-calculator#comments Sun, 05 Apr 2015 15:21:32 +0000
What is a Credit Card?


A credit card is a plastic card that enables an individual to purchase goods, products or services by way of a credit line. Financial institutions, such as credit card companies or banks, will offer credit cards to those consumers who represent an ability, through their credit rating, to meet the terms of the credit card contract.
It is crucial to understand the varying interest rates or APR’s attached to each credit card. Generally, those individuals with lower credit ratings, if approved, will receive a credit card with unfavorable terms and high interest rates. 
A credit card’s rates are applied to the individual’s balance at the end of each billing cycle. For example, if an individual is given a credit card with $500 worth of credit and an APR of 20%, and the individual spends throughout the month or length of the cycle the full amount of available credit, he or she is required to pay the lending institution the full $500. 
If the individual does not pay the $500 and only pays the minimum (typically $15) the APR of 20% will be applied to the next month’s bill in the form of a monthly fee (.20/12), or .01667. Add 1 to this figure to reveal 1.016, which is then multiplied by your remaining balance. Therefore, if you have $485 due next month, you will take $485 and multiply it by 1.016 to yield a new balance of $492.76. The terms attached to each credit card will vary based on the issuing institution’s protocol and the credit score of the prospective borrower. 


What is the Annual Percentage Rate?


The annual percentage rate attached to a credit card describes the rate for a whole year. The APR is annualized, rather than the monthly fee or rate applied to other forms of credit such as mortgage loan. In essence, the annual percentage rate is the numerical percentage figure used to represent the cost of credit. 
The APR is the yearly amount a consumer must pay for acquiring a loan or other form of credit. Since the majority of credit card bills are paid each month the APR must be divided by 12 to reveal the monthly percentage rate that will be attached to any unfulfilled credit.
If your APR is 18%, it will be used as a decimal, so it will effectively take the form of .18. To calculate your APR and the affect it will have on your monthly statement, you take the 
.18 and divide by 12 to yield a .015 figure. Add 1 to this Figure and you will have 1.015. This number is then multiplied to the amount of credit owed.


What is a Credit Card Calculator?


A credit card calculator is a resource offered by many banking websites and financial institutions that enables a holder to determine their payment amount required to satisfy the credit card balance. The credit card calculator uses the annual percentage rate or interest and the number of months you expect to pay the balance, plus interest. 
The basic credit card calculator has three units for entry: the credit card balance, the number of months the individual wants to pay off the balance, and his or her annual percentage rate. Before entering the figures into the credit card calculator you must understand that your APR should be divided by 12 to reveal the monthly interest rate that will be attached to your unpaid credit line.
So for instance, if you have a credit limit of 1,000 at a 20% APR, subsequently owe $800 this billing cycle and only pay $600, your remaining credit owed is $200. This amount will be carried over to the next month times the 20% APR divided by 12 months (.2/12) which is .01667 plus 1 equals, 1.016% interest per month. Therefore, your carried over balance would be $203.33 (200X1.016). 
The primary benefit of the credit card calculator is that a borrower does not have to do the math by hand. To figure out their APR and their expected pay-off balance, as well as their monthly payment amounts, an individual using a credit card calculator is only required to input the coordinating totals.
Credit Card Calculator for Repayment Amounts


 For a repayment amount, the individual using a credit card calculator will submit their credit card balance (for this sake we will use $1,000), which represents the amount owed in the upcoming billing cycle. Following this entry the individual will input their APR (15% for this example) and the desired number of months until debt free (8 for this example). 
When this information is inputted into the credit card calculator the individual will see the following results: “It will take you $132.13 every month to pay off your credit card.” The credit card calculator in this example takes your balance, the attached interest and the desired number of months to calculate the monthly payments needed to pay off your credit card.


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Easy Overview of the Credit Bureau http://credit-card.laws.com/credit-bureau http://credit-card.laws.com/credit-bureau#comments Sun, 05 Apr 2015 15:21:32 +0000 What is a Credit Bureau? A credit bureau is a company or organization that collects information from various sources to offer consumer credit information on individual consumers. A credit bureau is an organization that provides information on an individual’s bill paying and borrowing habits.
 
 
 
The information gathered by a credit bureau is then distributed (for a fee) to credit card issuers, such as financial institutions and credit card companies. When these agencies view the information provided by the credit bureau they can accurately gauge an individual’s credit-worthiness.
The information provided by a credit bureau enables a credit card company or lending institution to gauge a borrower’s ability to pay back a loan. This information can therefore affect the interest rate and terms of the loan. The information provided by the credit bureau will directly affect the loan obligation or offer to the consumer.  Interest rates and the terms latent in a loan agreement are not uniform. The fluctuations are based on a risk-based pricing model that is narrowly based on a borrower’s credit rating. A consumer with poor credit scores (those individuals who have defaulted on loans or made numerous late payments) or court adjudicated debt obligations, like bankruptcies or liens, will pay higher annual interest rates than borrowers who possess strong credit ratings.  Credit Bureaus in the United States and Data Furnisher In the United States, a credit bureau will collect and collate personal information of a consumer, as well as financial and alternative data from a variety of sources, known as data furnishers, with which the credit bureau has a relationship. A data furnisher, in most instances, is typically a creditor, lender, utility, court system (information obtained through public records), or debt collection agency.  The data furnishers that provide information to a credit bureau concerning a particular individual are those lenders or agencies who have developed, in some form, a business relationship with the borrower. A data furnisher will report the payment experience that they had with the prospective borrower. 
 
The resulting information is then made available upon request to customers of the credit bureau for the purpose of assessing the individual’s credit risk. In addition, this information can be used to assess the individual’s credit score in alignment with their ability to obtain a lease or employment. 
In the United States, the legal classification for a credit bureau, based on the Federal Fair Credit Reporting Act, is a consumer reporting agency. A credit bureau, in the United States, operates under Federal law to ensure those consumer protections and the general rules or governing guidelines concerning the exchange of personal information is adhered to. 
 
 
All credit bureaus in the United States must follow these regulations implemented by the following Federal legislations: the Fair Credit Reporting Act, the Fair and Accurate Credit Transactions Act, Regulation B, and the Fair Credit Billing Act. 
Federal Laws and a Credit Bureau A credit bureau and their coordinating clients, in the United States, will be governed by two Government bodies. The Federal Trade Commission has oversight for the consumer credit bureaus, while the Office of the Comptroller of the Currency regulates and supervises all national banks that do business with credit bureaus.
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Understanding APR In A Glance http://credit-card.laws.com/apr http://credit-card.laws.com/apr#comments Sun, 05 Apr 2015 15:21:32 +0000
What is APR?
An APR, or annual percentage rate, is the numerical figure associated with the cost of credit. The APR is the yearly amount a consumer will pay for acquiring a loan or using a credit card. In essence, the APR is the interest rate attached to a loan or credit card.
The APR in regards to a credit card is the percentage rate that is attached to any outstanding monthly balance. By law, a lender must disclose the APR to consumers when engaging in financing or a lending practice.
The APR is delivered as the annual percentage rate or cost that a consumer will pay for accessing a credit line. In terms of credit cards, the APR can be divided by 12 to reveal the monthly cost of interest. For example, if an individual opens a credit line with an APR of 20%, the monthly rate attached to any outstanding balance would be 20%12, or 1.667%. This rate is multiplied by the remaining monthly balance to reveal the additional cost of interest.
The percentage of the APR will fluctuate depending on the credit score of the applicant. Those borrowers with higher credit scores will be awarded a line of credit with a lower annual percentage rate and, in turn, those borrowers with lower or worse credit scores will be given a line of credit with a higher APR.
This differentiation in APRs is used by lenders to offset the risk of default: borrowers who are viewed as riskier by the increased probability of default. A higher APR will yield an increased cost to access a credit line, which effectively offsets the losses incurred from default.
 
What is the purpose of the APR?
The APR allows a lender to profit from their delivery of credit. The APR is the additional amount of money or fees that a borrower must pay to access a credit line. In addition to the benefits offered to the lending company, the APR is also used by borrowers to compare loans and determine the best credit card options.
The APR also impedes a lender from blanketing a stream of financing. The APR dissuades a lender from hiding fees when advertising their stream of credit.
 
Types of APR
Although the delivery of an APR encourages transparency when evaluating the cost of the loan, there are two types of APR percentages: the nominal APR and the effective APR.
The nominal APR refers to the simple interest rate for one year, while the effective APR is the fee and compound interest rate calculated across a year. The effective APR includes various fees latent in a credit card or loan contract. The fees calculated within the effective APR include various finance charges, activation charges and service obligations. As a result of this inclusion in the other fees attached to a credit agreement, the effective APR is regarded as the mathematically true interest rate for a given year.
The nominal APR is calculated as the rate required for a payment period multiplied by the number of payment periods in a year. Holders of credit should be aware that the majority of credit cards in the United States are quoted in terms of the nominal APR.
This reference is not necessarily reflective of the amount of interest paid on a stable balance over one year. The nominal APR does not include fees latent in the credit contract, such as routine one-time fees which are paid to third parties and penalties such as late fees or service reinstatement fees.
 
Calculating APR for Credit Card Balances
The APR will affect your credit card bill if you do not pay your debts in full each month. For example, say you have $1,000 charged on a credit card that requires a minimum monthly payment of only $15. If this credit card is attached with a 20% APR and you are only making the monthly payments, it would take nearly 7 years to pay off the debts from just the charges and interest.
Your APR of 20% will be divided by 12 to reveal the monthly interest rate—20/12 equals 1.667% As a result, monthly interest on a balance of $1000 with a 20% APR= $1,000X1.01667= $1,016.67. This calculation simply means that you will pay an additional $16 on a balance of $1,000 with an APR of 20%.

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A Guide to Student Credit Cards http://credit-card.laws.com/student-credit-cards http://credit-card.laws.com/student-credit-cards#comments Sun, 05 Apr 2015 15:21:32 +0000

What is a Student Credit Card?

Student Credit Cards are financial instruments issued to students. As a result, the respective terms and conditions within the structure of Student Credit Cards, including the determination of credit limits, scheduled repayment, interest, and Annual Percentage Rates (APR) will typically be specific to credit histories and scores belonging to students.

What is Student Credit?

Student Credit is defined as both the credit history and credit scores belonging to students. However, the notion of a ‘student’ is rarely uniform. Student Credit Cards can be specific to a vast expanse of students, ranging from High School Students to Graduate School Students.

A primary classification of student credit is latent within the fact that a majority of students are considered to possess credit scores classified as ‘low’ by the Fair, Isaacs, & Co. (FICO) credit ratings score. However, this is not to say that individual students have undergone financial infractions. A determining factor of individual credit scores relies heavily on credit history.

Due to the fact that students are classified to be younger in their respective ages, they have not had the opportunity to cultivate credit history through long-term ownership of a credit card. As a result, credit institutions may associate the classification of ‘no credit’ with ‘fair’ or ‘low’ credit.

In order to improve individual credit, the prompt repayment, responsible usage, and the compliance with terms of service will typically result in increased credit limits and raised credit scores.

Credit Score Analysis with regard to the Application for Student Credit Cards


Upon applying for a Student Credit Card, both the credit score, as well as the credit rating, belonging to the individual applicant will undergo analysis and assessment from the applicable lending institution. The following may be applicable to the approval process of a Student Credit Card:

Credit Score and Credit History Associated with Student Credit Cards

According to the gradient listed within the Fair, Isaacs, & Co. (FICO) credit ratings analysis, the following is applicable to individual credit ratings with regard to the terms and conditions listed within Student Credit Cards. The bulk of students are classified within the ‘fair’ and ‘low’ classification.

Credit scores classified as ‘excellent’ will typically range from 850 (the maximum score) to 740.

Credit scores classified as ‘good’ or ‘very good’ will typically range from 739 to 700.

Credit scores classified as ‘fair’ or ‘average’ will typically range from 699 to 620.

Credit scores classified as ‘low’ will typically range from 619 to 580.

Credit scores classified as ‘poor’ will typically range from 579 to 300 (the minimum score).

Student Credit Cards Standards and Practices

The following details are inherent within the financial structure and legal ideology of Student Credit Cards:

Student Credit Cards Annual Percentage Rate (APR)

The Annual Percentage Rate is a form of credit card interest defined as an expressed and established percentage of the gross value of Student Credit Cards. APR is considered to be a compensatory method undertaken by the credit institution as a result of furnishing an individual with a credit card. 

The APR is added to the full amount of repayment that is required for the satisfaction of the balance of Student Credit Cards. An APR designated to Student Credit Cards is typically higher than the median APR designated for credit cards issued to those with higher credit scores.

Limits of Credit Cards for Student Credit Cards 

Credit limits implicit within Student Credit Cards are defined as finite, monetary amounts of credit that may be undertaken by individuals in possession of Student Credit Cards. Students are advised to discuss any financial commitments with trusted parties or financial institutions.



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Standard Chartered Credit Card Quick Overview http://credit-card.laws.com/chartered-credit-card http://credit-card.laws.com/chartered-credit-card#comments Sun, 05 Apr 2015 15:21:32 +0000
What is a Standard Chartered Credit Card?


A Standard Chartered Credit Card is an instrument of credit that is furnished by the international bank and financial services company ‘Standard Chartered PLC’. While Standard Chartered maintains almost 1,800 locations worldwide, the international financial institution was founded in London, England. 
In addition, Standard Chartered undertakes its headquarters within the city of London. The majority of business undertaken by Standard Chartered takes place within Asia and Africa, including the Middle East, Far East, and a bulk of African countries and provinces. 


Standard Chartered Credit Card Profile and Background


The following details are inherent within the financial structure and legal ideology of a Standard Chartered Credit Card:
Standard Chartered Credit Card Annual Percentage Rate (APR)


The Annual Percentage Rate is a form of credit card interest defined as an expressed and established percentage of the gross value of a Standard Chartered Credit Card. The APR is considered to be a compensatory method undertaken by the credit institution as a result of furnishing an individual with a credit card. The APR is added to the full amount of repayment that is required for the satisfaction of an outstanding account balance. 


Standard Chartered Credit Card Spending Limit


Credit limits implicit within individual Standard Chartered Credit Cards are defined as finite, monetary amounts of credit that may be undertaken by individuals in possession of Standard Chartered Credit Cards. While credit limits may be significantly lower than limits allowed to individuals in possession of higher credit scores, prompt repayment and responsible usage will typically result in increased credit limits.


Standard Chartered Credit Card Legality


Standard Chartered Credit Cards will typically fall under the jurisdictions of both Finance Law and Commercial Law.
Finance Law is the legal specialty regulating and overseeing legislation applicable to the exchange and the circulation of monies. This takes place both in the transfer activity undertaken involving hard currency, as well as Standard Chartered Credit Card transactions.
Commercial Law is the legal field that enacts the regulatory oversight of standards and practices occurring within the commercial marketplace. With regard to Standard Chartered Credit Cards, statutory legislation undertaken within the precepts of Commercial Law ensure the deterrence and prosecution of any nature of predatory lending or financial exploitation.


Has Your Application for a Standard Chartered Credit Card Been Rejected?


In the event that your application for the receipt of a Standard Chartered Credit Card has been rejected, additional options may exist for your consideration. You are encouraged to investigate the following options, which may provide assistance with regard to both the receipt of a credit card, in addition to measures undertaken in order to improve your respective credit score.
The prompt repayment, responsible usage, and the compliance with terms of service will typically result in increased credit limits and raised credit scores.
Individuals interested in applying for a Standard Chartered Credit Card are encouraged to contact legal and financial professionals in order to better understand both the risks and ramifications latent within any financial commitment.

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Ford Develops Plan to Cut Debt http://credit-card.laws.com/credit-card-news/ford-develops-plan-to-cut-debt-27443.html http://credit-card.laws.com/credit-card-news/ford-develops-plan-to-cut-debt-27443.html#comments Sun, 05 Apr 2015 15:21:32 +0000
The Ford Motor Company is marketing $1.25 billion of bonds following the credit boost received from Moody’s Investors Service. Ford plans to sell senior unsecured three-year notes that yield up to 3.875 percent. This compares with the 3.2 percent yield on the average investment-grade debt due in three to five years.
Moody’s raised Ford’s credit rating to Ba1 yesterday—the highest non-investment grade level. Ford is working to regain the investment-grade status it lost in late 2005. The upgrade and the positive forecast reflect the company’s striders and the expected future growth.
In addition to Moody’s upgrade, Ford also received an improved credit rating from the S&P, who awarded the auto giant with a BB+ score—the highest non-investment grade. Ford has reiterated its goal of cutting its debt to under $10 billion by 2015—the company had automotive debt of nearly $13 billion on Septmber 30th of this year.

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A Comprehensive Guide for Understanding Secured Credit Cards http://credit-card.laws.com/secured-credit-cards http://credit-card.laws.com/secured-credit-cards#comments Sun, 05 Apr 2015 15:21:31 +0000

What are Secured Credit Cards?

Secured Credit Cards may require the presence of ‘surety’ formulated with the addition of a third party in addition to borrower and the lender. Surety is defined as a third-party entity responsible for the ultimate repayment of the credit card balance. In certain cases, a surety may also be defined as a ‘guarantor’.

In the event of the Principal’s failure to repay the credit card balance, the responsibility of repayment will become that of the Surety. Surety loans allow for heightened insurance for the lender with regard to the reduction of the risk of failure to satisfy outstanding credit card balances. 

Additional Stipulations of Secured Credit Cards

In addition to the notion of surety, the following stipulations may be applicable to the approval and receipt of Secured Credit Cards:

Individuals considered to possess a ‘high risk’ with regard to the approval of Secured Credit Cards are determined in accordance with the lending institution’s analysis of the probability of repayment latent within the applicant.

Credit Scores and Credit Histories classified as ‘poor’ or ‘low’ are considered to result from a variety of infractions undertaken with regard to the possession of a credit card. The mention of defaulted or habitually-late payments and reckless overspending will typically contribute to a lower credit rating. However, the absence of credit history may also be perceived as ‘low’ or ‘poor’ credit ratings.

In certain cases, individual applicants will be required to furnish a deposit prior to the receipt of Secured Credit Cards. A deposit allows for the alleviation of financial risk absorbed by the lending institution. In the event that repayment is defaulted or unsatisfied, the institution will undergo repossession of the deposit.

Unsecured vs. Secured Credit Cards 

In contrast to Secured Credit Cards, unsecured credit cards are synonymous with the traditional definition of a credit card, which is identified as a method of credit that lacks intrinsic ties or reliance on preexisting monetary savings. The notion of unsecured credit allows for the recipient to undergo the spending, exchange, and transfer of monies with regard to the eventual and implicit repayment of an outstanding balance. Unsecured credit cards are generally viewed as loans.

Secured Credit Card Application Process


Upon applying for Secured Credit Cards, both the credit score, as well as the credit history, belonging to the individual applicant will undergo analysis and assessment from the applicable lending institution. The following may be applicable to the approval process of a Secured Credit Card:

Annual Percentage Rate (APR) for Secured Credit Cards

The Annual Percentage Rate is a form of credit card interest defined as an expressed and established percentage of the gross balance latent within individual Secured Credit Cards. APR is added to the full amount of repayment that is required for the satisfaction of outstanding balances. The APR designated to Secured Credit Cards will typically be higher than the median APR designated for credit cards issued to those with higher credit scores.

Credit Limits for Secured Credit Cards

Credit limits for Secured Credit Cards are finite, monetary amounts of credit that may be undertaken by individuals in possession of such credit cards. While credit limits designated to Secured Credit Cards may be significantly lower than limits allowed to individuals in possession of higher credit scores, prompt repayment and responsible usage will typically result in increased credit limits.


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