Friday, May 26, 2017

Alternatives to credit cards

Think about alternatives to credit cards

This article was written by John Fisher. Thanks for visting. I hope you find it informative and helpful.

Have you ever considered about expensive credit cards

Are you one of those people from comfort a credit card agreed to be always able of payment without cash, or because you have not thought about other possibilities to borrow money? Thanks to the inevitable advertisement of the credit card industry millions of us do it in such a way. Only few people understand how many favorable alternatives to the rather expensive credit cards there are. If we have a look at once.

Debit Cards

That are basic just like credit cards. Debit Cards are often used in many European countries. They are relatively incredible from somewhere else. They will be accepted anywhere credit cards are accepted. The only difference is that all payments are loaded immediately to their bank account and not like a credit card billed at the end of the month. Nevertheless, with the Debit Card you should be aware that you are not protected against the deception as well as you would be with a credit card.

Prepaid Cards

These cards work just like credit cards, except that it is not possible to have a negative balance. Before you can spend money, you must put it on the card-account. This means that you must charge the card like a card for a mobile phone. This is great if you want to know, how much you are economical. This card can be also given without problems to children. Prepaid Cards are also much safer than Debit Cards. Somebody who steals this card can spend only so much money as is still on the card.

Bank Overdrafts

Borrowing the money with a credit card is a bad idea. Much better is the way a good bank overdraft together with a credit card. Your overdraft limit is settled by the bank in 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, there is the possibility if you want, to go just with your account into minus figures. Many banks charge relatively high interest rates for bank overdrafts, but still lower like a credit card. But for good customers they have mostly much better rates.

Real Loans

If you want to buy on big thing like a car for the all-inclusive price, or you are about to spend the whole money on a type of the thing, as such as house improvements, it is esteemed budgeting at all and go to a bank or another loan company. Because they know, why you take the loan, they are able to lend you the money in a much better rate than a credit card would simply become. They agree on regular month payments to pay back.

Loan Unions

Only more locally there are loan unions which are similar to the banks. They are co-operative, in the possession of their members and are led by the community. They are a good place to lend money. In the law there are agreed borders how much interest the loan unions may take. Besides, they don’t need to make profit for owners or stockholders because they haven’t any. If there is one in your area, it is worth well checking in every case.

Thanks for reading our article about alternatives to expensive credit cards. For further information, read also our great articles on credit card related topics. This website is being updated constantly with insightful and interesting new articles, tips and advices for you. Do you find this article informative and useful? Then please add it to your bookmarks and check back often.

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