Credit card anyone?

 

The emergence of electronic age made almost everything possible to people. Determining and curing terminal diseases made convenient, reaching uncharted territories became a possibility, and most of all; everyday life of people is made easy by the technology. We now have more convenient stores, easier means of transportation and a variety of gadgets that makes work and pleasure almost effortless.

 

When it comes to finances, technology—through efficient banking system and services—has given people better alternatives and options how to manage their finances. Among the so many financial management schemes that emerged, one alternative stands out among the rest—the credit card.

 

Credit card, especially to working people and those who live very busy lives, has become an ultimate financial "savior." More than just being a status symbol or an add-on to expensive purses and wallets, credit card has revolutionized the way people spend their money.

 

But, more than the glamour and the convenience credit card brings, there is much more to this card than most people could ever imagine.

 

Credit Card 101
Before indulging much into the never-ending list of the advantages and disadvantages of having a credit card, it is very important for people to first have a brief realization of what credit card really is in order for them to maximize its potentials.

 

In layman's terms, credit card is a card that allows a person to make purchases up to the limit set by the card issuer. One must then pay off the balance in installments with interest payments. Usually, credit card payment per month ranges from the minimum amount set by the bank to entire outstanding balance. And since it is a form of business, the longer the credit card holder wait to pay off his or her entire amount, the more interest pile up.

 

Since having a credit card is a responsibility, only those people who are of legal age and have the capability to pay off the amount they are going to spend through their credit card, is allowed to have one. Actually, most of the adults in the U.S. use credit card because this is very convenient compared to carrying cash or checks every time they have to purchase something.

 

It is also equally important to be familiar with the different types of credit cards before you begin to build up credit card balances and to avoid having a nightmare of debt. Since credit cards are indispensable to most consumers, it is a must that they understand the types of card that include charge cards, bankcards, retail cards, gold cards and secured cards. All of these types come in one of two interest rate options—the fixed and variable. Actually, it doesn't really matter if you decide to have a fixed-rate credit card because the interest rate remains the same. Compared to variable rate cards where rate may be subject to change depends upon the credit card issuer's discretion, fixed-rate carry higher interest rates. Basically, credit card grantors issue three types of accounts with basic account agreements like the "revolving agreement" a.k.a. Typical Credit Card Account which allows the payer to pay in full monthly or prefer to have partial payments based on outstanding balance. While the Charge Agreement requires the payer to pay the full balance monthly so they won't have to pay the interest charges, the Installment Agreement, on the other hand, asks the payer to sign a contract to repay a fixed amount of credit in equal payments in definite period of time. Another category of credit card accounts includes the individual and joint accounts where the former asks the individual alone to repay the debt while the latter requires the partners responsible to pay. The common types of credit cards available through banks and other financial institutions also include Standard Credit Cards like Balance Transfer Credit Cards and Low Interest Credit Cards; Credit Cards with Rewards Programs like Airline Miles Credit Cards, Cash Back Credit Cards and Rewards Credit Cards; Credit Cards for Bad Credit like Secured Credit Cards and Prepaid Debit Cards; and Specialty Credit Cards like Business Credit Cards and Student Credit Cards.

 

Now that you have an idea how many types of credit card there is, it is now time to review your goals before applying for one. Some of the things you should consider is how will you spend with the credit card monthly, if you plan to carry a balance at the end of the month, how much are you willing to pay in annual fees, if you have a strong credit history and is does your credit in need of rehabilitation. Once you have an idea of what you are looking for choose the right credit card for you by researching the information you need that will fit your basic needs. You may also review the credit cards you've research and compare them.

 

Shopping for a credit card?
Regardless of the type of credit card you choose, be sure to discuss your specific financial needs with your financial advisor or accountant before applying for any credit card. It is a must that you understand the benefits of having a credit card like safety, valuable consumer protections under the law, and the accessibility and availability of services. The most popular credit cards include Chase Manhattan Bank, Citibank, Bank of America, BankOne, American Express, Discoverฎ Card, First Premier Bank, Advanta, HSBC Bank, and MasterCard Credit Cards.

 

Although having a credit card is synonymous to invincibility, this may also trigger a person's thirst for material things and may lead into the temptation of buying something they don't really need. A credit card bearer should always have in min that having a credit card is a big responsibility. If they don't use it carefully, these may owe more than they can repay. It can also damage their credit report, and create credit problems that are quite difficult to repair.

 

Legally Walk Away From 100% Of Your Credit Card Debt - The Hows And Whys

Author: R.J. Kaminsky

The United States Supreme Court has ruled time and again that banking institutions do not have the authority to lend you credit. Numerous Consumer Protection laws, such as Truth in Lending, Fair Debt Collections, and Fair Credit Reporting, and Commercial and Contract Law define the way banks and lending institutions can legally function.

Federal and state banking laws allow banks to lend money - not credit. They aren't allowed by law to create credit or money out of thin air. They can't lend you something they don't have, and they can't charge you interest on something that doesn't exist!

A true Debt Relief process is founded on numerous Consumer Protection laws, as well as common law rulings of the courts, including the United States Supreme Court. They have ruled time and again that banks do not have the authority to lend you their credit. Federal and state laws allow banks to lend money - not credit. They can't lend you something they don't have, and they can't charge you interest on something that doesn't exist! Are YOU legally allowed to create money out of thin air? NO! Neither can the banks, but they do. . .

Here's how the process works:

You will send a series of letters to the credit card company, banking institution, and/or collections agencies. You will ask them to provide proof in many areas, and tell them your intentions if they cannot provide proof, such as:
1. Do they have the authority to lend you their credit?
2. Do they have the authority to create money or credit?
3. If they don't have the authority, they concealed this fact. This is fraud.
4. You believe you have been tricked into participating in their fraud.
5. You do not wish to be party to their fraud and must stop immediately.
6. Since they didn't disclose to you the fraud, and since they knew about it when you signed the credit application, the contract is illegal.
7. A contract that is illegal at the time of signing is null and void.
8. You inform them that no amount can be owed on a void contract.
9. You request a $0.00 (zero) balance on the account.
10. You will revoke your signature on all documents they may have.
11. Numerous State, Federal, and Supreme Court decisions on the matter are included.
12. Any evidence of a lawful debt or legal agreement must be presented to you in a timely manner, or they will be in default.

They commonly send you a response, stating you signed a contract and you must pay it, or offering you payment counseling, or even reducing the amount you owe and telling you to pay the discounted amount. They often claim to have the proper authority, but they never provide any proof of any authority. If they have the authority to lend their credit, WHY CAN'T THEY PROVE IT?

After a series of letters, you may receive a monthly statement with a $0.00 (zero) balance. They may cancel the debt, and write it off. Often, any unpaid "balance" on the fraudulent account simply disappears. The debt may be charged-off, or sold to a collector. When you receive a letter from the debt collection company, you will then request a validation of the debt, asking them to prove you owe them any money and showing the collector why no claim against you can be maintained. A true Debt Relief Course will also teach you how to stop all of the harassing phone calls and nasty collection notices.

The process can help you avoid the invasive nature of bankruptcy and be selective over which accounts you want to dispute. You can save thousands of dollars, which may not be possible with a debt consolidation program or credit counseling.

If you entered into a loan or credit contract, you may have signed a note or contract promising to pay them back. This contract supposedly qualified you to receive the money or credit. But did they provide 'full disclosure' of all of the terms of this agreement? Answer the following questions and decide for yourself if the bank or credit card company was acting in 'good faith,' that you received 'valuable consideration,' and that your 'signature' on that agreement is valid. Were you told that the Federal Reserve Policies and Procedures and the Generally Accepted Accounting Principles (GAAP) requirements imposed upon all Federally-insured (FDIC) banks prohibit them from lending their own money from their own assets, or from other depositors? Did anyone tell you where the money was coming from?

Were you told that the contract you signed (your promissory note) was going to be converted into a 'negotiable instrument' by the bank or credit card company and become an asset on their accounting books? Did they tell you that your signature on that note made it 'money,' according to the Uniform Commercial Code (UCC), sections 1-201(24) and 3-104? Were you told that your promissory note (money) would be taken, recorded as an asset, and be sold for cash - without 'valuable consideration' given to obtain your note? Did they give you a deposit slip as a receipt for the money you gave them, just as a bank would normally provide when you make a deposit to the bank?

"A national bank. . . cannot lend its credit to another by becoming surety, endorser, or guarantor for him, such an act being ultra vires. . ." Merchants' Bank v. Baird 160 F. 642 There are many more cases to prove that banks are participating in deceptive banking practices, which is why we request a "zero balance due" statement. Many banking and credit institutions discharge or cancel the debt balance because Fraud is a criminal offense.

What is Credit?

Credit is the opposite of money. Money, which is legal tender for the payment of debts, is defined by Congress in 31 USCA Sec 392. This section basically describes all coins and currency issued by the United States Government as legal tender for all debts, public and private. For purposes of this article, we will call money either coins or currency. Also, no effort will be made to argue that Federal Reserve notes are unconstitutional; that is beyond the scope of this article.

Now, if you went to a motorcycle dealer to buy a new Harley Davidson with no money down, you would say that "your credit is good." What exactly does that mean? It means that your promise to pay money is good. In other words, they trust you. You sign a loan agreement to pay the motorcycle dealer a certain sum of money with interest, and you also sign a security agreement in which you pledge the motorcycle as collateral for the security agreement. So, the motorcycle dealer has accepted your credit, or promise pay a sum of money, in exchange for the motorcycle. Consider how different a bank loan is. When you apply for a bank loan, you sign a loan agreement pledging to pay the bank so many dollars, with interest. When the bank accepts your promise to pay in exchange for a loan, it means your credit is good. However, the next question is the most interesting. What does the bank lend you?

The bank will invariably give you a check, which is a promise to pay you so many dollars. In effect, what you and the bank have done is exchange a promise to pay. In other words, you have accepted each others credit, yet no money has exchanged hands!

Now what do you do with the check? Probably one of two things: either you deposit it into your checking account, or you take it to a merchant for instance, a car dealer. In either case, the check, when deposited goes directly to the bookkeeping department where the numbers are transferred from the check and are added to your account as a bookkeeping entry. Once this entry is made a bank will say that its deposits have increased.

How can a transfer of numbers increase the deposits? IT CANNOT! This fictional increase is all on the books as there is no increase in the actual amount of money in the bank's vault. All of these bookkeeping entry deposits are called "demand deposits," which means that the customer can literally walk into the bank and demand the deposit. These figures are placed into the bank's liabilities column as money, which the bank owes people.

So, what are the bank's assets? Interestingly, I've just covered part of that. One type of asset is the "deposit" which actually consists of the check you just transferred to your account. It was a loan, an IOU from the bank. Banks will count the small amount of vault cash on hand as a type of asset, also. But most of the bank's "assets" are all the promises to pay. In other words, its loans.

Thus, both the bank's assets and its liabilities are virtually all on paper. And, this being the case, the expression from the book Modern Money Mechanics, published by the Federal Reserve Bank of Chicago, that "deposits are merely book entries" is now easier to understand. Now, it's also easier to understand what the electronic transfer of money is all about. All this amounts to is a transfer of numbers, or book entries, from one bank account to another. The same thing happens when you write a check. Numbers called dollars are transferred as a bookkeeping entry from your checking account to someone else's. When a credit card is used, bank credit or book entries are created and transferred to another person simultaneously!

Hence, our money system can be described as a "debt usury" money system. For every dollar of credit that comes into existence, a debt is created to the banks and interest (usury) is charged. Under our present money system, the Federal Government will never be able to balance its budget, and the national debt will continue to grow by leaps and bounds. However, every bank loan made in the United States today is also completely illegal, as all bank loans are based on credit instead of money.

"Ultra Vires"

The words "ultra vires" are important words. They mean that "a contract made by a corporation beyond the scope of its corporate powers is unlawful." (See Black's Law Dictionary) The courts have consistently ruled that banks cannot lend their credit, but can only lend their money, and that all loans of credit are ultra vires.

Because no bank or credit card company charter gives them (all of which are corporations) permission to lend its credit, and Congress never gave them permission to create money, all such loans of credit are ultra wires, or unlawful. By lending credit they have unjustly enriched themselves. They pay no interest for the use of the credit, but charge their customers the same amount of interest as if they had lent out their own money. It is a racket and con game, to say the least. It is deception and fraud. The collection of interest on credit is in violation of all usury laws. After all, they are collecting interest on money which doesn't exist. It is little wonder that as more Americans are beginning to understand this issue they are suing banks on fraud and usury charges.

Now that you have been informed concerning what the United States Supreme Court has stated and the Fraud the banks are committing, you have a decision to make. Do you want to keep supporting FRAUD? If the answer is "NO" than I can help you find a Debt Relief Course that you can be use to eliminate any kind of unsecured debt where credit was extended such as credit cards, personal loans, and certain student loans.

I have found one company that can take you through this process with integrity. Let me know if you want to know more about them.

I can always be reached at 707-395-0585

or through my website at www.Financial-Freedom-Guide.com

Best Wishes

R.J.

I've been online developing my marketing skills for 10 years now. What a rollercoaster ride. I've marketed everything from vitamins to houses and all kinds of education which is where I find myself today. My successes have had me making $1500 sales in a day to learning great lead generating strategies that have allowed me to continue growing. Presently I own my own business known as Taskmasters "Wealth Education and Investment Strategies". I show you how to keep more of your hard earned money, protect your assets and how to have your money working hard for you rather than working hard for the rest of your life. See http://www.financial-freedom-guide.com

Ready for Your Very Own College Student Credit Card?

 

 

Author: Mario A. Churchill 

College student credit cards are a new marketing phenomenon. Two decades ago, college students never had the opportunity to take their pick of the credit cards currently available today. But with the changing needs of students all across America, it was only a matter of time before college student credit cards became a common medium of exchange.

What makes college student credit cards different?

Their function is exactly the same as that of regular credit cards, except that many credit card companies recognize the special needs of college students and offer certain perks that you normally won't find anywhere else. A student credit card, for example, can offer you a discount for the purchase of school supplies or other school-related materials. It can also come at a much lower interest rate.

Where can I find them?

Everywhere, actually. Your school campus, for one. Each September you'll probably find credit card representatives setting up tables and kiosks on your campus grounds to offer their college student credit cards services. A pretty convenient opportunity if you decide to get your credit card this way. You can also take advantage of the free stuff these companies usually give away with each application.

On the downside, you could be limiting your options to what these credit card companies have to offer. More often than not, many of the college student credit cards that are marketed on campuses don't always have the best rates. They may, in fact, be quite high.

To find the best rates, you might want to call up several credit card companies to see what their interest rates are or go online and shop around. You shouldn't be pressured to get a college student card offered on campus if you could get one with a better APR online.

What good would a college student credit card do for me? A lot, actually. It is a good and safe substitute for cash and is a convenient way to pay for anything you wish to buy. It can tide you over in case of emergencies when money is tight and you can access many services online and off with a simple swipe.

A college student credit card can also give you your first taste of financial independence and responsibility. After all, you will be the one who'll be shelling out the cash to pay for your credit card bill each month. It can give you your first-hand experience in managing your money and teach you some valuable lessons in the process.

Is plastic always fantastic?

You may have heard of the horror stories, but much of the rap that college student credit cards receive is mostly undeserved. College student credit cards aren't innately evil; it's the way they are used that leads a student to a lot of financial trouble.

Many college students fall hard and heavy for the spending power that credit cards give. They go right ahead and charge a lot of stuff they don't really need and can't afford to pay for at the end of the month.

There are serious ramifications for this kind of irresponsibility. If a student allows his bad spending habits to continue, he could rack up a huge credit card bill that he is ill equipped to pay for. It's not uncommon to find a student struggling with a huge credit card debt even before he graduates from college.

On the brighter side…

It's not always a sad relationship. Just like any financial tool, a college student credit card can help you build and establish a good credit history, provided you use it responsibly. Remember that convenience comes with a price. If you have the discipline and can stick to a budget, a college student credit card may just work in your favor.

Mario Churchill is the owner of a credit card website with links where you can apply for a credit card which best suits your needs.

Your Small Business is Big Enough to Accept Credit Cards

Your Small Business is Big Enough to Accept Credit Cards
Author: Jamie Osterman

Small online businesses can get the benefit of credit card processing.

The Internet has become a great place for those people who have always
nurtured the dream of owning their own business. Instead of having to rent
our buy space all one has to do is secure a domain name and sign on with a
hosting service. And with drop shipping, e-store owners don't even have to
maintain inventory.

Indeed, the low overhead that comes with having one's business online also
makes it easier to turn a profit. And that has made the virtual world even
more enticing for the entrepreneur as the financial risks and rewards are
much more easy to juggle.

However, no successful business can become static or things start to erode.
That is why most online business people keep an eye out for anything that
will help their business grow. Perhaps a fancier site design or maybe
switching some items being sold to see if that kicks some fresh energy into
the mix.

One avenue they might pursue is the idea of credit card online processing
services. Some might just like the idea while others have heard about all
the good things that merchant services could bring. Several studies have
shown that an Internet business with merchant services will see increases in
traffic, repeat business, sales and profits. All great things to help anyone's
business grow to the next level and beyond.

However, here is where many online shopkeepers scuttle their own efforts.
They let their assumptions carry more weight than any facts they may come
across as they research the ability to accept payments online.

They assume credit card processing is for bigger businesses.

They assume credit card processing costs will outweigh any financial
benefit.

They assume that there isn't a plan that is structured for a business like
theirs.

And they get wrapped in up in their assumptions that they start to treat
them as facts and they forget about merchant services as a way to build
their bottom line. And that's too bad because assumptions are hardly ever
factual if any research has been added to the mix.

This is why it is so vital, no matter what size business you have that you
are willing to drill down and get some facts before you make any decision
that will affect your business.

It is true that there will be several merchant services providers that might
think you are too small for credit card services – and most banks fall into
this category – but keep in mind that any company that says you aren't big
enough usually means you aren't big enough for them to offer services to and
make a profit.

And that means you have to stay active and keep looking because there are a
lot of great merchant account companies out there who can let you accept
credit cards at a price you can live with. But it's up to you as the
business owner not to be easily dissuaded, because that can mean your
business might not reach the profitability that it potentially could
realize.

So the key things to remember are don't confuse your assumptions with facts,
and that credit card online processing services can help your small business
become a big business.

Source: Free Articles from ArticlesFactory.com

ABOUT THE AUTHOR

Jim Osterman is a Web content developer with CardAccept.com, a leading
credit card processing company that helps businesses grow by setting them up
to accept payments online.