Credit Card
Credit Card Loans
Credit cards are the most widely used form of payment in the world. Millions of people have made purchases with their Visa credit card and benefit from its prestige and security.
Benefits
- Auto Rental Collision Damage Waiver
- Cardholder Inquiry Service
- Emergency Cash Disbursement & Card Replacement
- Lost/Stolen Card Reporting
- Zero Liability in fraudulent transactions
There are two kinds of cards: secured and unsecured.
Unsecured Credit Card
The unsecured card is the standard credit card. Users are given a pre-established credit limit. The credit limit is set depending on the user's credit history and income.
Secured Credit Card
The secured credit card requires a collateral deposit. What it means is that you can put a certain amount in your savings account and obtain a line of credit for the same amount. For example, if you deposit $1000 in the account, you can spend up to $1000. The advantage of the secured card is that it develops credit history and allows the user to make purchases at retail stores, by phone and over the Internet.
The secured card is ideal as a first card for students, couples, or anyone seeking to establish credit.
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Secured
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Unsecured
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Maximum credit limit
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Amount available in the share account minus a $10 deposit
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Varies according to income and credit history
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Fees
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No annual fee
$10 fee for late payments and $5 for returned payments.
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No annual fee
$10 fee for late payments and $5 for returned payments.
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Interest rate
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Current 6 month T-bill rate + 7.5% (7.5% = 750 bps)
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Current 6 month T-bill rate + 12.5% (12.5% = 1,250 bps)
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Maximum rate
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18%
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18%
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Interest adjustment
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May change quarterly if the 6 month T-bill rate changes
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May change quarterly if the 6 month T-bill rate changes
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Grace period
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No interest due on purchases if balance paid in full on the due date and purchase is done during the billing cycle
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No interest due on purchases if balance paid in full on the due date and purchase is done during the billing cycle
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Cash advances
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No fee; same interest rate as purchases, but grace period does not apply
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No fee; same interest rate as purchases, but grace period does not apply
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Payments
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3% of total balance or $25, whichever is greater
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3% of total balance or $25, whichever is greater
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The Government recently passed a law to better protect credit card owners' rights. See a summary of the improvements that come from this law: For secured credit cards, click here, for unsecured credit cards, click here.

