We all agree that the credit card is very convenient. That is why the IRS allows you pay your taxes through it. To sweeten the deal, credit card companies offer rewards in the form of frequent flyer miles. So you can get a free air ticket too. But hang on, is that convenient to your pocket too? Sadly, the answer is no.
Disadvantages
The IRS has authorized third party companies to process your credit card payments. However, you, the taxpayer has to pay for it. So, every time you use your credit card to pay tax, you also have to pay a fee that is usually around 2.49 % of your tax. Thus if you are paying $18,000 in taxes, you also pay an additional fee of around $450. Now add the fee charged by travel rewards credit cards and you can drop the second letter from the word ‘free’ as in free airline ticket.
If you are in debt, the last thing you want is more debt. Annual interest charges are quite high, even going up to 30%. You could spend the rest of your life paying for the $18450 ‘convenience.’ If you are in debt with many credit cards, this additional debt can lead to bankruptcy. But even that cannot save you. As per law, you still have to pay taxes along with other payments like child support or alimony.
It is for these reasons that consumer agencies like the Association of Independent Consumer Credit Counseling Agencies (AICCA) suggest alternative ways of paying income tax. You could dip into your savings bank account or take a loan at a lower interest rate.
There are only two conditions under which this transaction looks good. You pay the IRS with your credit card and simultaneously pay off the credit card company as well. This way, you avoid the interest payments, if it is any consolation. The other condition is that if it is impossible for you to meet the IRS deadline. While the IRS can grab most of your assets immediately, your credit card company cannot. While the case is in court, you may just win a lottery or inherit a windfall!
Zack Nelson recommends Find Credit Cards to apply for an American Express card. See www.findcreditcards.org/issuer/american-express.php for more information.
Instant approval credit cards online are becoming increasingly popular among consumers. In a fast-paced society, the speed of an instant approval credit card is sought after by many individuals. But, it is important to understand as much as you can about instant approval credit cards before you choose to apply for one.
What are Instant Approval Credit Cards?
Instant approval credit cards are those that can be approved within a matter of seconds. To qualify for one of these instant approval credit cards, online applications are completed on a secure website. Using the information gained from the application, the credit card company can determine instantly if you qualify for a credit card.
Am I Guaranteed to Get an Instant Approval Credit Card?
No. Instant approval credit cards are not secured credit cards. Therefore, they still need to look at your credit history in order to determine whether or not you qualify for a credit card. If you have a poor credit history, you may be turned down for an instant approval credit card. Whether or not you receive credit approval depends on the guidelines followed by the credit card company and your personal credit history.
Can I Still Be Approved, Even if it’s Not Instant?
Yes. Instant approval credit cards sometimes need more information than what can be gained instantly in order to decide if they will approve your application. In this case, they will send you a notification letting you know that your application is being reviewed further. In this case, you will generally still know whether or not you have been approved for the credit card within a week or two, which is still much faster than non-instant approval credit cards.
Can I Start Spending Immediately?
No. Although instant approval credit cards can tell you within seconds whether or not you have been approved for an instant approval credit card online, you will have to wait to physically receive the credit card before you can start using it. Usually, your instant approval credit card will arrive to you within a couple of weeks, which is still much faster than traditional credit card application that typically take six to eight weeks.
Are There Any Differences in the Way Instant Approval Credit Cards Look?
No. Instant approval credit cards look the same as any other credit card. No one but you will know it was an instant approval credit card.
Are There Any Drawbacks to Instant Approval Credit Cards?
Maybe. Some instant approval credit cards do assess a processing fee for the convenience of receiving instant approval. If this concerns you, shop around for an instant approval credit card that does not assess these fees. There are plenty of options available. Furthermore, you might want to reconsider applying for an instant approval credit card if you do not have a need to get the card right away. If you can wait to receive the card, it better to apply for a traditional credit card in order to avoid paying unnecessary fees.
Do Instant Approval Credit Cards Have the Same Benefits as Other Credit Cards?
Yes. No two credit cards, whether they are instant approval credit cards or traditional credit cards, are the same. Therefore, they do not always include benefits such as travel insurance, purchase protection, and extended warranty coverage. Nonetheless, there are plenty of instant approval credit cards available with desirable benefits such as those found on traditional credit cards.
Can I Participate in a Special Rewards Program with Instant Approval Credit Cards?
Yes. There are instant approval credit cards available that offer special cash back and rewards programs to cardholders. If you are interested in participating in one of these programs, browse through the many instant approval credit cards available in order to find one that best suits your lifestyle and needs.
For more on instant approval credit cards, Robert Alan recommends that you visit CreditCardAssist.com.