About Unsecured Loans

As we mentioned in previous article, Consumer loans refers to people borrow money to make a wide range of secured and unsecure loans to consumers for consumable items from lending institution. Beside consumer loans, debit cards and credit cards also play an important role in consumer daily purchase.

I. Debit cards
1) First of all Debit cards are not used for credit, it is your money deposited in your bank, trust or credit union checking account.
2) A debit card allows the user to have purchases immediately deducted from his or her regular checking account.
3) Debit cards are also used as access to automatic ATM machines.
4) With debit cards, you don't have to use checks or cash. All purchases are transacted electronically.

II. Credit cards
1) Charge Cards
a) Charge cards is a form of short-term credit issued by the bank or trust for borrower for purchasing.
b) Charge accounts requiring full payment within a specific grace period. usually 30 days.

2) Credit cards
a) Credit cards is a revolving loans.It offers the card holders to continue charging purchases to an account, as long as a portion of the bill is paid each month.
b) There are 2 major types of credit cards are bank cards and department store cards.
i) The grace period on bank cards is 21 days.
ii) The grace period on department store cards is 21-30 days.
c) Cash advances are allowed with credit cards issued by financial institutions.
d) It is your responsibility to immediately report the loss or theft of your card to the respective bank, trust company, or credit union.
e) All banks limit the card holder's liability to $50 after notification.
f) Bank credit cards charge interest rate between 17-19% while the department store cards charge interest rate between 26-28%.
g) Interests are calculated on the daily outstanding balance, while retailers charge a monthly interest rate.

III. Credit card payments
After receiving the credit card statement, you may pay off the balance in full without interest, or you may make a partial payment and start to pay interest.
If you make a partial payment, there are 3 types of concurrent interest rates are charged
1) from the date the credit card office posted the transaction to the next statement date.
2) From one statement date to the next.
3) From the second statement date to the payment date.

I hope this information will help. If you need more information of health advices or series of articles of the above subject at my home page at:
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