Low Interest Credit Cards

While virtual credit cards have been around for several years, many people are unfamiliar with them. Also known as a substitute credit card, a virtual credit card allows the user to generate a new number for each online transaction. Doing so makes it much more difficult for anyone to steal the number and use it without your permission, simply because each newly generated number is intended for a single use only.

To establish a virtual card, you must first submit an application to a provider that offers this type of program. If your credit card application is accepted, you are assigned a credit limit and given instructions to download software that allows you to generate the new number for each purchase. The software automatically ties the purchase back to your main account so that all of your purchases still appear on one easy-to-read monthly statement.

The single greatest advantage to virtual cards is the level of consumer protection they offer.

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A recent report shows that companies that grant credit cards are still seeing high rates of delinquencies, which indicates the credit market could continue to be strained in the near future.

According to the Dow Jones Newswire, many of the major issuers of credit cards saw delinquencies increase during October. For example, Capital One Financial Corp. reported that the number of accounts at least 30 days late increased from 5.38 to 5.72 percent from September to October.

Discover Financial Services Inc. also posted an increase in delinquencies on credit carddebt tied to bonds, according to the report. Accounts that were behind by at least a month were at 5.72 percent in October after coming in at 5.57 in September.

Unlike its competitors, American Express Co. reported that delinquency rates did not change from September to October and rest at 4.1 percent.

As more consumers find it difficult to pay off their cards, lenders have worked to try and tighten their standards for issuing credit. Read more…

Many people use their credit cards to help manage their monthly budget and help them be more responsible over their finances. If you are like many people, you do that same thing with your credit card. When used wisely credit cards can certainly help you to be more financially responsible. However, there is more that you could be getting out of your credit card than security and convenience. You can also get valuable rewards.

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We are entering the holiday gift card season. While new studies show gift cards are the most popular presents to give and receive, the hidden costs may outweigh the convenience of the gift. It is important for consumers to give and use these cards correctly.

“Gift cards are easy to give, but they are also easy to forget. If the card has a monthly fee or expiration date, these can become costly little pieces of plastic,” says Bill Hardekopf, CEO of LowCards.com and author of The Credit Card Guidebook. “Even though gift cards take the hassle out of holiday shopping, you want to use them wisely. It is important to know the terms of the card you are buying.”

Holiday gift cards are a big business. According to the National Retailers Federation (NRF), sales of gift cards reached almost $25 billion in 2008. A new NRF study shows that 55.2% of adults are hoping to receive a gift card this year.

However, many households still have unused gift cards from the last holiday season.

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