Known As Revolving Credit - Credit Cards
Posted April 10, 2011 – 7:09 am in: LoansOnline businesses are becoming a great alternative to the traditional brick and mortar businesses today. These e-stores, depending on the goods and services offered, accept credit cards, e-checks and other methods of cash delivery. However, these payment methods present some risks. Fraudulent transactions occur and unfortunately the consumers and businesses are the ones who reap the consequences.
Fortunately, merchant account providers have pioneered more secure and prompt online payments. This is accomplished by verifying a credit card before the transaction is processed. Merchant accounts allow the merchant to deposit the funds directly to their bank account. Although there are fees involved, a minimal amount is required from those who apply.
Repeat the exact same procedure with another bank now. Don’t be surprised that the second bank does not even bother to check your creditworthiness while opening the account. Wait for a few days as you did in the case of the first bank. Visit the bank and from them to get a loan of $400.
We are sure that you had attained some expertise in this particular act by now. Go to a third bank now and deposit the $400 you borrowed from the second bank. We do not even have to tell you what to do now, do we? Yes, get a loan of $400 from the third bank after a few days and proceed to a fourth bank. Only this time, remember to open a Checking Account and not a savings account as you have done on the previous three occasions.
As suggested you now have the option to pay back $10.00 for that month. You may also pay off the entire charge of $100.00 or somewhere in between. Let’s say you make a payment for $40.00. You would then see on the following month’s statement: $940.00 - Maximum spending limit $60.00 - Balance to be paid back $6.00 - New minimum payment due for that month
The advantage of these accounts is the option for the merchant to refund the consumer, in cases of disputed transactions. Due to the amount of fraudulent transactions, accepting credit cards online should include an anti fraud and terms and condition statements to protect customer’s safety.
Annual Percentage Rate (APR) of 10% A second-month statement balance of $60.00 the interest applied would be $0.50. Here is how the formula is applied: $60.00 x 10% = $6.00 - That is interest for a full year. You then divide that by 12 months for the added monthly interest. $6.00 / 12 = $0.50 - Giving you the second-month balance of $60.50.
Now comes the trickiest part. That is using the money wisely. Invest it in the business that you had the money for and work like a dog. Save money and pay up. Borrow more, save more, pay more. Very soon you would have paid all your loans and be in a position to lend money to some hapless person like you were just a while ago! Here is wishing you a happy future.
Harris Smith offers advice on home equity line of credit and obtaining credit. Consolidate your debt with a Debt Consolidation loan.
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