In 2005 for the first time ever, plastic purchases topped cash purchases. Are we heading for a cashless society where charge cards replace cash altogether?
If it’s as much as the card companies, the clear answer is definitely an unqualified yes. As consumers get more savvy about handling charge cards and interest, the issuing companies for charge cards are finding their profits from lending money shrinking. In defense, they’re trying to profit by encouraging consumers to make use of their charge cards for more and more transactions. The current campaign among all of the major credit card companies is encouraging’small change’transactions, for which merchants wind up paying 1-2% processing fees to the company. These’micropayments’are anticipated to top £20bn globally.
What does it mean for consumers? It means that it’s becoming easier and easier to fund even the tiniest purchases with plastic. In an effort to woo the UK credit consumers, many cards now offer cashback rewards for every single little cash that you may spend in your plastic. Paying for everything with a charge card is convenient, easy, allows you to track your expenses and offers you cash rewards for your patronage.
Where does that leave the UK consumer who doesn’t have charge cards – or struggles to qualify for one of the major rewards cards? There are numerous options open to even those with damaged credit to take advantage of the convenience and safety of plastic payments. Here are simply a few of the options open for your requirements even though your credit score is below par.
Bad credit charge cards
Most major credit card issuers offer so-called’bad credit charge cards ‘. Generally, they carry a greater rate of interest than those issued to’typical’customers with good credit, but since the push to get more and more market share continues among the card companies, those limits are now being relaxed. You will find bad credit charge cards with APRs as little as 12%, though they might carry an annual fee.
Secured Credit Cards
Another option available to consumers with adverse credit ratings is just a secured credit card. Once you apply for one of these cards, you set an amount of cash on deposit in the issuing company’s range of bank 소액결제 현금화.That amount stays there to secure any purchases that you make. Provided that you pay your accounts punctually, it isn’t touched – in fact, it’ll earn interest. You can raise your credit limit with the addition of more to the account, and eventually as you build an excellent payment history, you may receive an offer for an unsecured card at a lower rate of interest.
Stored value cards
If you prefer never to deal in credit, but nevertheless want the capability of paying with plastic – for online payments, as an example – a stored value card could possibly be the clear answer that you need. Stored value cards are like bank debit cards with a charge card logo – except that they’re not associated with many bank accounts. You can’load’the card at a merchant’s shop, by mail, via your bank-account or another credit card. You’ll pay a’loading fee’to put money on the card, but you’ll never pay any interest since you’re not actually borrowing money – just putting your personal money on plastic.