June 2010

Unfortunately, bad credit cards are no longer the only type of credit scam out there. Even though they're the most prominent, there are more and more people willing to take advantage of anyone in need. Part of this probably stems from our struggling economy -- more people are struggling financially, and more people need credit. Part also comes from the fact that we're an increasingly credit based society.

Regardless of the reasons, though, it's important that you recognize the signs of bad credit cards and credit scams before you get sucked in.

If you wonder about average credit card debt, some of the statistics might shock you. The average credit card debt in America is both larger and lesser than it seems. The simple fact is, though, that with the economic downturn the financial stress on most families has seriously increased. Consider that:

-- The average credit card purchase ends up costing 12% more than it would if you'd bought it outright

-- 40% of American families spend more than they earn

-- If you only made the minimum payments, then a $1,000 charge on an average credit card would take approximately twenty years to pay off and cost you well over $2,000 in interest.

-- The average interest paid -- just on credit card debt -- by Americans is $1,200 annually.

-- When people pay with credit cards in restaurants, they're proven to spend more than when they pay in cash or with debit cards.

These are just a few facts illuminating the danger of the average credit card debt. Credit cards are important parts of life, and we need them to establish our credit ratings. However, they can also become incredibly dangerous.

If you don't already accept credit cards for business you do online, you're in a small minority, and it's time to change! While it's true that not all online business involves credit cards, the vast majority of consumers are no longer willing to incur the trouble and expense of sending checks and money orders. By all means, keep these payment options -- but if you want to succeed, you really must start accepting credit cards.

Are you familiar with anonymous prepaid credit cards? Have you even heard of them? It's not a huge surprise if you haven't -- they're not overwhelmingly popular in the industry. But they do have their uses.

First of all, what are anonymous prepaid credit cards? Basically, they're exactly what they sound like: you put down money to charge up a card which then functions like a gift card you can use anywhere they accept credit cards. Now, the big question: where, why, and how would you use these things?

It used to be a snap, finding the best credit card rewards. For a while, credit cards were fighting amongst themselves to attract business, and virtually every card had some sort of gimmick. In those golden days, finding the best credit card rewards usually meant picking the type of reward you wanted among many good cards.

But with the economy in turmoil and new credit laws emerging, it's not as easy to find those rewards any longer.