Credit card basic information

When choosing a credit card think about how you'll use it. You may want to compare some of the features of various credit cards to see which one will suit your financial needs.

Consider the annual percentage rate or APR. The APR measures the cost of credit on an annual basis and may be the easiest way to compare costs among credit cards. Usually, the lower the APR, the less you'll be charged for credit. The APR includes the interest rate and other costs, such as service charges or loan fees. If you expect to pay back less than the full amount you charge each month, you'll have to pay finance charges on the unpaid balance. In this case, choose a card with a low APR.

Examine the annual fees. Many companies charge an annual fee, no matter how much or little you use your card. If you intend to pay your credit card bills in full each month, you won't have to pay monthly finance charges, so a card with a low or no annual fee will be more important to you than one with a low APR.

Find out if a card offers a grace period. A grace period allows you to avoid finance charges if you pay your bill before its due date. Some cards have no grace period and begin to impose finance charges the day you charge an item. Other cards offer grace periods from 21 to 30 days. Cards with longer grace periods will save you money if you pay all of your charges each month.

Finally, check card offers to see if you will be charged a fee for paying your bill late or going over your assigned limit. These types of additional charges add to the total cost of using your credit card.

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Gold Credit Card

With your Allied Visa Gold Credit Card every Pakistani can now enjoy the benefits of a Gold Card internationally with unmatched savings greater flexibility, convenience and security.

FEATURES

Buy Now,Pay Later
With your Allied Visa Gold Credit Card, your free credit period allows you to pay for your purchases up to 50 days after the date of purchase. So now you can buy all the things you want - whenever you want - at your own convenience.

Flexible Repayment
When paying your credit card bill, your Allied Visa Gold Credit Card gives you the option to either pay the entire amount according to your statement or a minimum of 5% of your total outstanding balance.

Cash Advance Facility
As an Allied Visa Gold Credit Card member, you are entitled up to 75% of your available credit limit in cash. Just go to your nearest ATM with the VISA or PLUS sign and avail the facility of withdrawing cash 24 hours a day.

Allied Easy Installments (AEI)
The Allied Easy Installments (AEI) plan provides you with the facility to pay your outstanding card balance in equal and affordable monthly installments spread over 3, 6, 12, 18, 24, 30 or 36 months. So now you can easily afford anything from everyday household appliances to exotic vacations abroad.

Supplementary Cards
Want to share the benefits of your Allied Visa Gold Credit Card with others? Now you can! Treat up to two people with supplementary credit cards and pass on the many privileges of your Allied Visa Gold Credit Card to your chosen friends and family members.

Balance Transfer Facility

In case you have outstanding balances on other cards, consolidate these onto your Allied Visa Gold Credit Card with the lowest BTF rate and save more on your outstanding payments than ever before.

Credit Protection Plus
With Credit Protection Plus, your Allied Visa Gold Credit Card provides payment cover against:

Death, due to accident or sickness
Permanent and Total Disability, due to sickness or accident
Temporary Total Disability, due to sickness or accident
Terminal Illness


Zero Loss Liability
The Allied Visa Gold Credit Card�s Zero Loss Liability feature protects you from paying for any unauthorized transactions on your Card in the event that it is lost or stolen. Please notify Allied Phone Banking immediately on 0800-22522 (within Pakistan) or on 9221-5301094 (outside Pakistan) in case your Card is lost or stolen.

24-hour Allied Phone Banking
For any information and queries about your Allied Visa Gold Card, call Allied Phone Banking on 0800-22522. If you are calling from outside the country, please dial 9221-5301094.

Free CIP Lounge Access
As an Allied Visa Gold Credit Cardholder, you are eligible to avail the free lounge facility at Quaid-e-Azam International Airport, Karachi and enjoy a variety of complimentary features.

Relax while you watch leading television channels or select something to read from an updated library of newspapers and periodicals. Also feel free to plug in your laptop and mobile phone into the charging facilities provided or browse the internet or send and receive faxes while you wait. You can also treat yourself to a wide assortment of high quality snacks, beverages and fresh fruits

Credit Card debt

Credit card debt is a revolving source of borrowed money, usually paid for with relatively high interest rates. Based on a user's credit history, a credit limit and interest rate is established. Through purchases and cash withdrawals, the user borrows some or all of that available credit. Interest charges are added to the debt. The cardholder is billed monthly and may pay the debt back in increments ranging from a very low minimum payment up to the full amount. If any debt remains after each payment, interest is charged on the full amount in the next monthly billing. This can result in interest being charged on previous interest charges, which is known as compounded interest.

For some, this revolving debt is used merely as a convenient replacement for pocket cash. Purchases are made on a daily basis in person or online, and the card debt is paid in full at the end of every month. For others, it is a way to survive between paychecks. Their balance may rise or fall based on their current ability to pay.

The worse case scenario finds a credit card user opting to make minimum or partial payments each month. Their credit balance, or debt, grows steadily. If the credit limit is reached on a card, it can no longer be used for purchases. However, interest continues to be added to the debt and making the required monthly minimum payment may be the only way to avoid being sent to collection. The user is on the verge of adversely affecting their credit rating for years to come.

Some credit card users put off the inevitable a bit longer by practicing revolving charges, also known as kiting. One card's balance is paid with another credit card, which is in turn paid by another credit card. This practice cannot be sustained indefinitely. It may be considered fraud if the intent is to avoid paying the debts at all.

FHASecure

As Senate leaders continue to hash out a housing rescue proposal expected to reach a key committee vote later this week, officials in the Bush administration are touting the growing success of a Federal Housing Administration program launched last August. Called FHASecure, housing officials last week said that the product has helped 200,000 homeowners refinance their mortgages and avoid foreclosure.

“Over the past several months, FHA has been working to help families who want permanent relief from their high cost subprime mortgages,” said Deputy Secretary of Housing and Urban Development Roy Bernardi. “We are proud to have helped these struggling homeowners keep their homes.”

Applications for FHASecure loans are largely what has driven a huge spike in FHA application volume during the past three months, with numerous brokers reporting to Housing Wire that the FHA-led program is often the only resort many subprime borrowers have available to them when looking to refinance and avoid potential problems.