Posted by Peter Brady on Thu 21st September 2006 at 07:00 AM, Filed in Credit Tips, Glossary
Standing Order means an instruction proffered by a customer to their bank in order to facilitate a fixed amount payment on specified regular dates to a named individual or organisation.
Posted by Peter Brady on Mon 18th September 2006 at 07:00 AM, Filed in Credit Tips, Glossary
Public Key Infrastructure (PKI) is a computer technology which facilitates secure exchange of information between individuals through computer systems. The system permits trusted parties such as a bank, to issue Digital Certificates to people that need to trust each other. The technology generally operates with the IP address. The purpose of the certificates is for holders to prove their identity. It is possible for them to also digitally sign transactions and documents. Authenticity of the transaction is substantiated by the signature and also proves that the data exchanged has not been tampered with or changed. The same technology is now being used to encrypt data in transit, which ensures that the intended recipient is the only one to have read access.
Note: Digital signatures are now acceptable in a court of law.
This is a simple ten point check to see if you are coping with your existing debt levels:
1. Do you regularly go over your credit limit on your credit card?
2. Do you pay for nights out on the town in preference to clearing more of your credit bills?
3. Do you try to regularly repay capital as well as interest?
4. Is your credit predicament a clandestine affair, in particular with regards to your partner?
5. Do you bury your head in the sand with regards to credit bills by leaving mail unopened?
6. Do you a contingency for emergencies i.e if the roof needed replacing. Or would you need to borrow the money?
7. Do credit cards fund your everyday expenditure with no view to repayment at the end of the month?
8. Do debt collectors ever bother you for unpaid bills?
9. Is money a frequent cause of distress in your family?
10. Is shopping, using credit cards a form of release for you?
If you answered yes to any of these questions then you seriously need to take a look at your spending and credit habits. Credit cards are one of the most expensive forms of debt around so it pays to review your position early and ruthlessly if you want to save yourself some serious heartache down the road.
Posted by Peter Brady on Fri 1st September 2006 at 07:00 AM, Filed in Credit Tips, Glossary
Donation Cards
Every time the card is used the card issuer donates a percentage to charitable causes, at no additional cost to the card holder.
The ‘charitable cause’ includes recognised charities such as Comic Relief, NSPCC and many other organisations.
Store Cards
These cards are provided by a specific retailer and can only be used with that retailer. There has been much made in the press about the extortionately high interest charges on most store cards.
Interestingly, a recent NOP survey indicated that 75% of store card holders didn’t know the interest rate being charged on their store card. Surprisingly, this is despite only one in three repaying their balance in full each month.
Store cards do offer some benefits if you are disciplined enough to repay balances in full at the end of each month. These include signifcant discounts and privelaged shopping hours.
Gold & Platinum Cards
Not as exclusive as they once were, these types of cards are considered for good credit risk customers, with salaries usually above £25,000.
Benefits usually include a higher credit limit, a higher daily cash withdrawal limit and other benefits such as travel insurance, longer warranties for household appliances, mobile phone insurance and card protection.
There is also perceived status that comes with gold and platinum cards although this has gradually been devalued with their wider availability.
Charge Cards
Charge cards offer an account against which withdrawals can be made to make purchases. Balances must be paid in full each month or significant penalties are accrued.
They can best be described as a cross between a credit and debit card which can be used in the same way as a credit card. Annual fees are normally attributable.
Examples of charge cards include Diners Club and American Express. As with credit cards charge cards often include sweetners such as reward points, cash back or insurance.
There is perceived to be some cue dos associated with these cards in particular the American Express Centurion Black which offers unlimited credit and is by invitation only.
Some businesses use charge cards for staff members. This gives companies an opportunity to closely monitor company expenditure.
Like most credit cards a direct debit can be linked to a current account ensuring that balances are cleared each month.
Smart Cards
These are essentially the future for credit cards. Incorporating minute microchips rather than the ubiquitous magnetic strip makes these cards more secure and able to offer a whole raft of functionality not seen before.
For instance, one card might become multifunctional serving as a credit card and debit card. In effect, acting as an electronic wallet.
If you’re going on holiday you really don’t want to get stung for currency conversion fees when using your credit card aborad. Most cards charge up to 3%, so on a £100 purchase you’ll actually be paying £103 when you get home. The Nationwide offers an excellent credit card which offers 0% commission free use outside the UK.
In addition the Nationwide card also offers the following:
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