In 2005 for the very first time ever, plastic purchases topped cash purchases. Are we heading for a cashless society where credit cards replace cash altogether?
If it’s as much as the card companies, the clear answer is definitely an unqualified yes. As consumers have more savvy about handling credit cards and interest, the issuing companies for credit cards are finding their profits from lending money shrinking. In defense, they’re trying to cash in by encouraging consumers to use their credit cards for more and more transactions. The current campaign among the majority of the major credit card companies is encouraging’small change’transactions, which is why merchants end up paying 1-2% processing fees to the company. These’micropayments’are likely to top £20bn globally.
What does it mean for consumers? It indicates it is becoming easier and easier to cover even the tiniest purchases with plastic. In an attempt to woo the UK credit consumers, many cards now offer cashback rewards for each bit of cash that you spend on your plastic. Spending money on everything with a charge card is convenient, easy, lets you track your expenses and offers you cash rewards for your patronage.
Where does that leave the UK consumer who has no credit cards – or is not able to qualify for among the major rewards cards? There are lots of options available to even people that have damaged credit to take advantage of the convenience and safety of plastic payments. Here are simply a few of the options open for you even if your credit score is below par.
Bad credit credit cards
Most major credit card issuers offer so-called’bad credit credit cards ‘. In general, they carry a greater rate of interest than those issued to’typical’customers with good credit, but while 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 credit cards with APRs only 12%, though they could carry an annual fee.
Secured Credit Cards
Another choice offered to consumers with adverse credit ratings is just a secured credit card. Whenever you apply for one of these simple cards, you set an amount of cash on deposit in the issuing company’s selection of bank 소액결제 현금화.That amount stays there to secure any purchases that you make. As long as you pay your accounts punctually, it isn’t touched – actually, it will earn interest. You can increase your credit limit by adding more to the account, and eventually as you build a great payment history, you may receive a present for an unsecured card at less rate of interest.
Stored value cards
If you like to not deal in credit, but nonetheless want the ease of paying with plastic – for online payments, for example – a stored value card might 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 tied to 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 place money on the card, but you might never pay any interest since you’re not actually borrowing money – just putting your own personal money on plastic.