by: Gordon Goh

Are you one of those people who only ever got a credit card for the
convenience of being able to pay without cash, or because you
weren’t aware of any other easy way to borrow money? Millions of us
are, thanks to the unavoidable advertising of the credit card
industry, and few people realise just how many alternatives to
credit cards there are. Let’s take a look at a few.

Debit Cards.

Debit cards are often used in many European countries, but are
relatively unheard of elsewhere. Basically, they’re just like credit
cards and are accepted everywhere credit cards are accepted - the
only difference is that they take any money you spend directly from
your
bank account, instead of you getting a bill at the end of the month.
You should be aware,though, that you aren’t as well-protected from
fraud with a debit card as you would be with a credit card.

Pre-Paid Credit Cards.

These are cards that work just like credit cards, except that you
can’t have a negative balance - you have to put money on the card
before you can spend it. That means that you ‘top-up’ the card, like
you would a mobile phone. This is good if you want to know how much
you’re spending, not to mention that you can even give the cards to
children. They’re also safer than debit cards, since someone who
stole the card could only spend whatever money was on it at the
time.

Bank Overdrafts.

A good bank overdraft, used together with a credit card, can be a
far better way of borrowing money than using a credit card. Your
overdraft limit is set by the bank according to how much you gets
paid into your account each month, and you don’t need to pay it off
until you want to.

Basically, it just gives your account the facility to go into minus
numbers, if you want it to. Many banks charge relatively high
interest rates for overdrafts, but rarely as high as a credit card -
and they will give much better rates for good customers.

Real Loans.

When you’re buying one big thing at a fixed price (like a car), or
you’re going to spend all the money on one type of thing (home
improvements, for example), it’s worth budgeting it all out and
going to a bank or another loan company. They’ll be able to lend you
the money at a much better rate than a credit card would, simply
because they know why you’re taking the loan and can set regular
monthly payments for you to repay it.

Credit Unions.

Credit unions are like banks, only more local. They are
co-operative, owned by their members and run by the community, and
are a great place to borrow money. This is because there are limits
in law on how much interest credit unions can charge, and they don’t
need to make a profit for owners or shareholders, because they don’t
have any. It’s well worth checking if there’s one in your area.

About the author:
Gordon Goh is the owner of www.Easy-Credit-Card-Guide.comoffering
free credit card information for everyone. You can receive a free
credit card at http://www.easy-credt-card-guide.comand free Credt
Debt Repair Guide at http://credit-debt-repair.cogia.net