Probably the most notable activities taking place online today is selling and buying which is called e-commerce. Plenty of internet users are searching for items that will resolve their problem or perhaps enable them to understand more about a subject or demanding issue.
It is nevertheless noticed that many of these users have difficulties getting credit cards for his or her transactions and a few that have tend to be afraid of making use of it online due to the fear of losing their own cards to on-line hackers and scammers.
To resolve this issue, business application developers created the Virtual Credit Card (VCC).
Exactly what is a Virtual Credit Card (VCC)?
It’s a non-plastic pre-paid credit/debit card intended for transactions. The main distinction between a normal credit card and vcc is you can’t see or feel a virtual card i.e. it’s not physical in contrast to the plastic card which you’ll see and touch. Just like the regular credit card, it might be a Master or Visa Card with the details of an ordinary card. Additionally, it offers the regular credit card numbers, CVV/CVV2 Numbers and also Expiry Date.
You can use them in standard online transactions as well as for verifications online on a website including Amazon, eBay, AlertPay, Facebook and so on. There aren’t any limitations to the type of transactions that may be made with a VCC. There is no special method of obtaining the cards. There are lots of internet sites online selling them. Many of them accept payment for your cards via Paypal and Liberty Reserve. You just need to place an order and then pay for the equivalent amount for that card denomination you require.
Even though VCCs have a great deal of advantages, some websites may possibly request you to scan and send VCC you used in transaction on their website to verify your own name on the virtual credit card.
Enjoy online shopping using your VCC.
If you have ever gotten a handful of credit card offers in the mail that seem like unbelievable opportunities, you may be surprised to hear that the value and process of qualifying for pre approved credit cards is not always as clear cut as it appears to be.
Essentially, these card offers are usually nothing more than a marketing technique used by lenders to narrow down their field of potential customers and cut their own costs. Still, most lenders tend to be choosy when deciding on the group of customers that will be receiving their pre approved offers, limiting the field to at least those with average to high credit scores.
To appeal to this particular population of customers, the terms of these offers are usually quite attractive, some offering low or 0% interest rates for a certain amount of time, no annual fees, and reduced transfer fees.
However, your pre approval status does not guarantee you can receive these terms, and applying for them should involve the same thought you put into pursuing any other line of credit. While you do in fact probably meet the criteria for the group of customers the credit card companies are trying to entice, you actually may not qualify for the offer when it comes to your credit history or your credit score, although you can always get a pre paid virtual credit card.
The Impact of Applying
It is established that offers for pre approved credit cards do not necessarily qualify you for any particular offer, but is there any harm in applying for one here or there?
While you have pre-screened to some degree, your application for credit will require a much deeper inquiry on your credit, which will then be listed with the credit bureaus if you are rejected for the offer. This can be incredibly damaging to your credit, especially if you choose to apply for several offers within a short span of time.
Becoming over confident based on your unsolicited credit offers could lead to a lot of rejections, a lower credit score, and a lack of appeal to future lenders.
The Impact of Being Approved
In the event that you receive a great offer and consider the impact of application, you may ultimately decide one of your pre approved credit cards is a good opportunity for your current financial situation. However, keep in mind that getting approved for a new line of credit has an impact on your credit as well.
Initially, you may expect a small drop in your credit, as you have yet to prove your responsibility to the lender of your new credit card. This is not likely to affect your credit score to a large degree unless you apply and qualify for many card offers in a short time, becoming obligated to a number of new lenders at once with no demonstration of a reliable payment history to any of them.
The initial drop in your score should be weighed against your ability to comply with the remaining terms of the credit card and the state of your credit in general. The small negative impact of a new line of credit with no history may not matter to you because you plan on maintaining a positive relationship with your new lender and boosting your credit score over time in the process.
Further, you may see an increase in your score with a new line of credit if the credit limit on your new card is substantial enough to significantly impact your debt to credit ratio, or the sum of what you owe in revolving debt divided by the sum of all your revolving credit.