Do Credit Card Debt Reduction Possible?

Everyone wants credit card debt reduction, but nobody wants to give up shopping and splurging. Such is the world of plastic! When you go out on a Friday night, all you want is to blow up a lot of money on a night full of fun. Knowing that you do not really have to pay any cash only spoils the situation further. Moreover, before you know your monthly credit card bill amounts to more than what you had bargained for.

Being in debt is not a matter of choice for people using credit cards. When you use credit, you will obviously owe something to the bank. But you can surely reduce or limit that amount. There are many ways of debt reduction. If you find yourself in the pit of mounting card bills, you can get help in the form of a credit card debt consolidation program or a free plan. Some companies even offer free credit card and debt consolidation.

Tips For Credit Card Debt Reduction

• The first and most obvious tip for credit card debt reduction is to stop using credit cards altogether. Most people will find this tip impractical and difficult to follow. But what you can do is keep the use of credit cards in check. Try to pay in cash as far as possible. Minimize the use of plastic money and use it only in emergencies.
• Homeowners have another option available to them, in the form of home equity loans. Home equity is the difference between the amount you owe to the mortgage company and the market value of your home. By obtaining refinancing on your home, you can cash in on this equity. The money can be used to pay off huge credit card bills to eliminate credit card debt. The debt reduction will automatically reduce monthly payments; hence your debt burden is lowered.
• Debt management agencies are also very helpful in credit card debt reduction. These agencies will negotiate with all your creditors and get you lower interest rates and waived off fees. Credit card debt consolidation will make the debts easier to pay off. Since, you will be making payments to the agency only; you will not have to deal with individual creditors or banks.

The time it will take for you to get out of the debt trap also depends on which credit card debt consolidation program you choose. There are numerous players in the market and you will need a little research before you make a choice. Getting in touch with multiple credit card debt consolidation companies to compare fees and interests is a good idea. Some of these companies even offer free credit card debt consolidation services. Once you hire a debt consolidation company, you are on your way to debt reduction.

It is not very difficult to achieve credit card debt reduction, which, reduces the amount unpaid on your credit card bills and can save you thousands of dollars every year with the help of a low interest consolidation loan. All you need to do is be careful while spending and using the plastic money sparingly when you are opting for a credit card debt consolidation program.

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How to Get a Grip on your Credit Score

Financially and economically, they say times are pretty good right now. I guess everything is relative, but for the most part, that statement is correct. Mortgage rates are not the lowest they have ever been, but they are manageable without being ridiculous. Personal loans are available, car loans are available, all at competitive interest rates.

Most people know they have a credit score but very few know that they can raise their credit score by just a few simple steps, and they don't need to take on more debt to do it. Start enjoying the rewards that having excellent credit can provide for you.

That is, times are pretty good for people with good credit or excellent credit. But what about people who account for the vast majority who do not have good credit, and may even have bad credit. Are times as good for them?

The answer is not no, depending on who you ask. If you ask the average consumer with bad credit, you will probably be told that times are not good. But if you ask the savvy consumer with bad credit who understands how loans are determined and rated, you might be surprised to find out they would agree with you that times are pretty good.

• How to Improving & Establishing a Great Credit Score
  Our credit scores are extremely important for buying houses, new cars, and getting other types of loans. Often when we are young we don’t realize how important it is to keep our credit scores...
• Doing it Yourself Credit Repair
  We all know what bad credit can do to our ability to get financial help when it is needed the most. Although, it is a part of life, things do get out of hand; missing payments...

What is the difference? The big difference is knowledge. Knowing how the credit score game is played and how to score points in it are a huge advantage over the consumer who simply accepts their bad credit score and goes glumly on their way.

If you have a bad credit score, there are things you can do. Or more correctly phrased, there are things you need to be doing, starting today, because you do not want to keep the label of a person with "bad credit". Determine what it is that puts you in that category, and then get it changed. Despite what some companies will tell you, it does not happen overnight, but if you start showing a track record of on time payments for all your financial obligations, as well as taking other steps to improve your credit score, it will make a huge difference.

The place to start is with your credit reports. Yes, that is plural because you have three totally separate and distinct credit reports, one from each of the big three credit reporting agencies. These companies do not share information, so they each have a different view of you from a credit perspective. The thing you will very likely discover when you are going over your credit reports is that they contain errors. One of your creditors is reporting late payments, another is still reporting a loan you paid off years ago, and much more. These errors will be reported for years to come if you do not dispute the errors with the credit bureaus. Once you dispute an item, it is their legal responsibility to investigate the error with the creditor, and if it cannot be proven, it needs to be removed from your credit report. Many consumers find that their credit score can jump to the next level by just getting errors corrected in their credit reports.

Next, negotiate with your credit card issuers. If you have been a long time customer of theirs and they are still charging you 22% interest or more, then ask for a reduction in interest. If they decline, show them how much you appreciate them by closing that account. It's a competitive industry and there is no sense in allowing them to make money off you by the truckload with their high interest rates.

If you have several accounts with the same issuer, ask if you can consolidate your accounts into just one or two cards, perhaps combining the credit limits to give you a decent credit limit on one or two cards. If they won't do that, then close some of those accounts.

For the accounts you have open, try to keep your outstanding balance under approximately 30-35% of your credit limit. More than that raises red flags with credit issuers, and less than that indicates you don't use the account enough for it to be a real indication of your credit.

Above all, make each and every payment on time, paying more than the minimum amount when you can.

Just these simple steps can raise your credit score by an appreciable amount, and you haven't taken on any more debt to do this! Keep your credit clean and treat it with the respect that it deserves so that you can reap the benefits of having excellent credit.

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Do you need a Business Credit Card

Ready for a business credit card? Credit plays an important part in the growth of your business. If you have yet to establish corporate credit, read on...

Are you ready for a business credit card? You might not know this, but there are certain telltale signs to look for. If you think you might be ready to take the next step in business finance, these 4 tips will tell you whether or not your instinct is right.

• Your Business Needs Are Occupying Your Personal Credit
  So you need to put a large personal purchase on your credit card but you can't because this month's business expenses have already mixed out your credit? You probably need your own business credit card. If your personal credit card can't handle the volume of your credit needs, it's time to expand your credit horizons.
• Your Business Isn't Being Rewarded
  Now I'm not talking about rewards as in "high-interest rewards programs" here. I'm talking about rewards such as business travel insurance, group buying power and the other perks associated with carrying a business credit card.
  Let's face it, a growing business can use all the help it can get. Why not take advantage of everything out there -- including the benefits of a business credit card?
• Your Business Needs Its Own Credit History
  Have you been in business for two years or more and you still don't have any business credit cards? Now may be the time to change that.
  If your business is growing successfully it's going to need its own credit history. Think of it as a child who is going to grow up one day and needs credit of their own. Using mom and dad's credit cards is okay to a point, but it can't go on forever. Because of this, a business credit card (even if it's a secured card) is essential to the development of your business.
• You're Pulling Your Personal Credit Card Out When Trying to Woo Clients
  You take a potentially big client out to dinner and when the bill comes, you whip out that credit card like the success story you are. Only problem is, it's your name emblazoned on that card -- not your company's. That might be a problem in the eyes of some.

If your business isn't stable enough to warrant its own credit card, is it stable enough to handle the needs of that particular client? Do yourself a favor and get a business credit card. It will speak volumes about the establishment of your company.

If there's one thing you can't neglect, it's the financial growth of your business. Contrary to what some might believe, financial growth isn't just about profit statements. It's about credit growth as well. If you're serious about the future of your company, it may be time to apply for a business credit card today.

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How to Get Back your Good Credit Rating

So many things we do every day are dependent on a good credit rating. Try getting a credit card, renting an apartment, financing a large purchase, or buying a car, just to name a few, without good credit, and reality will set in.

If you don't make payments to creditors on time or you miss a payment, you are reported to the credit bureau. The credit bureau, in turn, adds this to your credit report. If you are guilty of habitually being slow in making payments, or default on a loan, you will suffer a bad credit rating and a low credit score.

Many doors will be closed to you when your credit score is low. You will have a hard time getting a loan, a credit card, renting a car or doing many of the other things you have grown accustomed to. A bad credit rating might even keep you from obtaining certain jobs. For these reasons it is important that you protect your good credit rating. If unforeseen circumstances have affected your credit worthiness, you should start repairing your credit as soon as possible.

How to repair your credit rating is usually a slow process. You need to build your credit rating little by little over a long period of time. Although you might consider going to a reputable company offering credit repair services, you can repair your own credit.

A good place to start repairing your credit right away is to get your credit report from the credit bureau, and examine it carefully for errors. If you don't find any errors, you can then begin repairing your credit.

First, get a secured credit card and use it regularly but cautiously. Make your monthly payment amounts on time and in full. Secured credit cards are issued by companies that usually cater to people who have bad credit, and you are usually required to give an initial deposit equal to the card's credit limit. For example, you give the company $500 for a card with a $500 credit limit. They are authorized to use that deposit against any balance you have that remains outstanding for too long. As you can see, by doing this, the credit card company does not assume any risk because you will never owe more money than they are holding as your deposit.

Secured cards also require annual fees that most regular credit cards do not. Using secured credit cards and paying the bills on time is one of the best ways to start improving your credit rating. Your goal is to develop a history that shows lenders that you take your debts seriously, and that is the only thing lenders require from you. They want to be paid in full and on time. Paying bills on time helps you establish a good history, and it eliminates late fees and other financial penalties that make paying off your debts so difficult.

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Why you should Care about your Credit Score (FICO)

Unless you live in a cave (and maybe even then), you know that your credit score is incredibly important when it comes to securing credit. But did you know that it’s also used for much more than that? What follows is a list of five other areas of your life that can potentially be impacted by your credit score…

• Renting Property - Many (if not most) landlords now run credit checks on prospective tenants. Think about it… They’re essentially giving you a credit line when you sign a year long lease, but are allowed to pay it off in monthly installments. In many cases, bad credit = no apartment (or house, or whatever).
• Cell Phones - Cell phone companies typically check your credit before signing you up for service. Here again, they’re essentially extending you a credit line and they want to be sure you’re good for the money. Not only are they concerned that you might rack up a bunch of airtime charges and be unable to pay for them, but they’re also letting you walk out the door with a shiny new handset at a (sometimes steep) discount. They want to be sure that you’re good for the standard monthly charges. Crappy credit might result in you being shunted over to a pay-as-you-go plan, and the hardware deals might not be as good.
• Future Credit Card Agreement Changes - It’s not uncommon for credit issuer to run routine credit checks (so-called ’soft pulls’, which don’t show up as credit inquiries on your credit report) on existing customers. If your credit score takes a nosedive, you represent a bigger risk, and they might change the terms of your agreement (e.g., increase your interest rate) to reflect that.
• Car Insurance - Car insurance issuers are increasingly looking at credit scores as a way to gauge risk. If you’re reckless in one area of your life, you might not be a good bet in other areas. This can result in higher premiums, or they might simply decide not to cover you.
• Employment Opportunities - I’ve never experienced this one first hand, but I’ve heard that it’s increasingly common for employers to include a credit check when looking into the background of prospective employees. In short, they’re looking to see if you’re responsible. Credit reports also provide an employment history. Of course, they can only do this with your permission, so hopefully you read all of that paperwork that they give you when you apply before signing anything. Then again, if you decline they’ll more than likely show you the door.

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