Showing posts with label Credit Card. Show all posts
Showing posts with label Credit Card. Show all posts

Thursday, October 11, 2007

Relationships With Credit – Are You And Your Partner Ready For It?

As you found the love of your life at last, one of the most acute problems that your couple faces is how to manage the both partners' finances. It is usually no easy for the partners to determine how they will spend together and how they will own the property in possession.

There are some guidelines to help couples organize their spending according to their choice and lifestyle and the way they make their relationship. You and your partner are free to share or not share your property and earnings.

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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...

There are a number of models to organize the financial aspect of your relationship:

You spend as a married couple: that is you have joint accounts and are both reliable for payments, plus both of you are involved in the ownership. You also make credit card applications in both names, building a joint credit history.

Partnership for spending: you can get joint accounts for certain expenditures, such as rent or household payments, on other needs each of you spend on your own.

Keeping independence-model: each partner pays for himself and you manage to pay for mutual needs (household, food, holidays) in turn or making equal contributions.

When living together, young people can't usually do without big purchases. A TV, a sofa or a washing machine – sooner or later the couple gets in need of such sort of things.

No wonder, a loan or a credit card plays the main part in this case. It goes without saying you should be careful and wise to play it fair and safe. Remember, you should be 100% sure of your partner before putting your name on an application or agreement. These are some possible threats that each of you should be aware of when some of you decides to apply to the bank. - Be careful becoming a co-signer. If your partner fails to pay off the debt or you fall apart, you will have to pay off the balance, as a second responsible person. Besides, it is fraught with damage to your credit score.

Joint accounts for credit cards or loans seem to be a good option, but not in cases when the relationship is unstable and seems to be not to last long. Though in this way you can build your credit rating together and both of you are responsible for payments, there are pitfalls to beware. If some of you fail to pay or exceed the limit, the other's credit history can be damaged and he or she will have to pay the balance and all the penalty fees. If one of the partners has bad credit, it is required that it should be under repair, in order to prevent future problems with approvals.

Before taking the decision to apply for mortgage or a car loan, which are long term and money consuming types of lending, you should know for sure you can trust your partner. Mistakes in this matter can cause serious troubles like bankruptcy. Love has nothing to do with money. So if you want to be protected, it doesn't mean you do not love your partner. Create your relationship and do not forget about future and financial security.

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Credit Cards – How Much Do We Really Owe?

Credit card debt seems to be growing and people are getting more and more concerned. Americans are once again polarized.

Some like David Ramsey encourage consumers to shred all credit card applications and buy only things they can pay for in cash. Some say that a mature person can use loans and credit cards for his or her benefit. Of course, there are some things most people need but can not buy with cash like cars and houses.

Student loans are also looked upon as a necessity. That is why credit cards are mostly under attack. It is a widely known fact that an average American carries about $8,000 in credit card debt.

  • Do Credit Card Debt Reduction Possible?
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  • Credit Repair Clinics: Secrets You Should Know Before Hiring One
    You've probably heard myths that suggest that credit repair specialists have some divine dispensation with the credit bureaus. They don't. Far from it. In fact, in a minute, we'll show you why they have less leverage over your credit file...

However, this number is often misinterpreted. It actually shows how much an average American household that has a credit card owes to the card-issuing financial institution. Moreover, this number is greatly influenced by credit card users with enormous credit card debts thus making the average number so shocking.

According to the recent Federal Reserve report, if you add together the number of households that do not use credit cards or own nothing on them you will see that more than half Americans have no credit card debt. The median credit card debt for those that do carry a balance is a little bit less than $2,000. Almost half of them owe less than $1,000. This figure seems to be far less alarming. Especially if you take into account the fact that the situation with paying off credit card balances is slightly but constantly improving.

The data provided by the Federal Reserve System does not differ much from the one disclosed by another acclaimed credit resource – Fair Isaac. Only a little bit over 50% of Americans with credit history owe more than $1,000 on their credit cards. More than 50% credit card owners use less than 30% of their credit line. That means that Americans are not as irresponsible when it comes to money as they are portrayed.

So does this mean that the problem of credit card debt does not exist? It surely does. Although most consumers try to avoid high balances on their plastic but there is still a significant part that is balancing on the razor’s edge.

One third of those who have more than $10, 000 in credit card debt have a household income of less then $50,000. The number of bankruptcies filing is still extremely high with about 1.5 million personal filings a year. Another problem is unfavorable policies credit card companies use to make more money especially on those clients that fail to pay off their full balances on time.

Definitely, the government needs to step in and force the banks to make credit card terms and conditions less confusing for average consumers. But the biggest issue is financial literacy. People need to be more educated about credit and its costs. Americans need to learn to compare credit card offers before mailing another credit card application and calculate the amount of money they will need to pay back. The situation with credit card debt is not as terrible as it is usually described by the media but there are still many problems to be solved.

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Tuesday, October 9, 2007

Why Minimum Payments On Your Credit Card Deals Are Rising?

There are several aspects that should be taken into account when people choose credit cards. When they decide what type of credit card deals they should own, they pay attention to annual fee, APR, introductory APR, rewards and cash rebate.

The Complete Credit Repair Kit (+CD-ROM)
by Brette McWhorter Sember

Learn how to keep your creditors from harassing you, reduce your monthly payments and lower your debt. Find out how to get a copy of your credit report, understand what it really says and make it read more favorably for you. Stop worrying about identity theft by teaching yourself what to do to prevent it and how to react if it happens to you.

It’s not a secret that lots of people are attracted by low payment. Many people are sure that the lower monthly payment, the more convenient credit cards. Nobody can guarantee that payment will remain the same. You must be aware of the fact that it may change. If one day you find out that your minimum payments have increased, don’t be shocked. As a matter of fact many credit cards have low monthly payment, which is very attractive for people. However, it may cause different problems. This low monthly payment is convenient, as you pay this minimum each month just because you can. But at the same time the process of paying off your credit balance will be very slow and you will lose more money.

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    A good credit score or credit rating is very important when come the time of applying credit. The better your credit score is, the better deals that have attractive low interest rate...

As a rule, lenders offer a lower monthly payment but a higher interest rate. So while choosing a credit card, examine both positive and negative sides of this type of card. It goes without saying that the program of increasing payments has both advantages and disadvantages. This change will not affect consumers who paid their balance in full each month or who paid more than their minimum payment.

So they even won’t see this increase. But this change may be devastating for those cardholders who don’t know how to make ends meet and who can afford to pay only minimum payments. Increasing monthly payments may cause new debts and at one time or another they will find themselves in over their head. But you should be conscious of the fact that it is for your own sake.

  • 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...
  • How to Get Back your Good Credit Rating
    If you don't make payments to creditors on time or you miss a payment, you are reported to the credit bureau...

Credit card companies have been asked to raise the minimum payment on balances from two percent to four percent. Two percent of credit balance required by credit card companies covered only interest and other fees, so it may take people many years to pay off the principal balance. Four percent should cover interest, any fees and one percent of the principal balance. The real motive of this increase is to get out of debt faster.

Only imagine that you may pay down your credit balances in a shorter period of time and save money in interest. Increasing monthly payments gives cardholders an opportunity to reduce their balances. Another reason for increasing minimum payments is the fact that plenty of people have many credit card deals and they can’t stop spending more than they can payback. The way out for such consumers is to stop using credit cards frequently or to control their expenses. On the whole increasing minimum payment is in the interest of consumers, as it is an excellent opportunity to pay off balances in a shorter period of time and get out of debt.

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Monday, October 8, 2007

Credit Cards Account after Divorce

Divorce might be a very painful process and money issue often makes it even more unpleasant. You need to divide both assets and liabilities. The situation can be especially complicated if you have joint credit card accounts or your spouse is an authorized user on your account.

You need to know the law to make sure your interests are defended. First of all, you need to understand what a joint account is. A joint credit card account means that both you and your spouse are equally responsible for all the transactions and payments. It is a good option for a married couple in a situation when one of you does not have too much of a credit history or a strong income and can not qualify for a good credit card deal.

When considering applicants for joint accounts creditors check credit reports of both family members. If you will be late with your payments the information will be reported to credit bureaus in both names. If your marriage has fallen apart and you are getting divorced do not forget that both of you are responsible of making the payments.

According to the law, your bank cannot close your joint account just because you are divorced. Your ex-partner or you need to request the bank to do it. However, the creditor has the right to ask you to reapply for a credit card deal on an individual basis. Thus the credit-issuing company checks your individual creditworthiness. If the credit card is opened in your name and your spouse is an authorized user. Although credit information might be reported to credit bureaus in the user's name you alone are responsible for payments.

So if you are getting separated make sure you have enough income to make at least minimum payments. If you and spouse have separate credit card accounts usually you won't have problems dividing responsibilities. However if you are lucky to live in a community property state you might be held responsible for any debts incurred during marriage. Moreover, your spouse's debt may affect your credit score. The best way to clinch the matter is to get the divorce decree that will state who is responsible for what credit cards. Make sure you discuss the issue with the bank because your creditors are not parties to the decree. If you have joint accounts you might still be held liable. If you act according to the law you should not have a problem separating your financial responsibilities.

However, you need to pay special attention to your credit report and make sure everything is correct. If the bank charges you for late payments your spouse is responsible for you should immediately contact its representative. If the creditor does not want do anything and keeps billing you the best way would be to get a lawyer and file a complaint.

Of course, it is hard to be clearheaded when you are in love but if you have decided to get married do not forget about the possibility of a divorce. So, if you and your spouse have found a credit card deal that you want to apply for carefully consider all the possible types of credit card accounts.

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How the Pin Helps Reduce Credit Card Fraud

The newly introduced Chip and Pin scheme has been incorporated in almost all shops, shopping centers, restaurants and web sites. The main intent of introducing such a system is to prevent credit card owners from signing for their purchases with the hope that it might, to a large extent, curb credit card fraud.

For an initial period of time, card owners could persuade shops to accept their signatures by pleading that they have forgotten their Pin and shop keepers could bypass the Pin requirement as requested. For some time now, this has become largely impossible and now you can no longer sign for purchases, making fraud that much more difficult.

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With this new system, even though your card might get stolen and even though your card details can be leaked, it cannot be used unscrupulously without your credit card Pin.

How the Chip and Pin System Works
The Chip and Pin is given to you by your bank - if you haven’t yet received it, you should request it immediately. The bank sends you a default Pin number which you can change if you wish, to do this you will need to visit the nearest ATM, and select a number you are likely to remember.

Selecting a Secure Pin Number
Avoid using numbers which can be derived from your card or your records, for example, avoid selecting obvious choices such as your birth date or part of your phone number as your Pin. Additionally you should avoid too many repetitive numbers; if you’re stuck for suggestions you could try following these tips to select a secure Pin number:

  • Shift all numbers by one. If your preferred Pin number is your birth date - 020470 then your new , more secure Pin number could read 131581 or 010369
  • Work out a pattern on the keyboard of your ATM
  • Reverse your favorite digits, read them from right to left, or add a sum of 44 or 77 or whatever to make your Pin number more difficult to guess
Once you have selected and changed your Pin, remember to keep it secret as it’s the only security you have against credit card fraud. If you have several cards, you could juggle the numbers between them for extra security. After all, how many Pins can you remember? If you have trouble recalling the numbers, either put them in a password protected file on your PC or make a note of it in your mobile phone. Then, of course, keep praying your wallet and cellular phone are not stolen together by the same thief.
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Sunday, October 7, 2007

Getting A Higher Limit On Your Credit Card

Nearly everyone who has a credit card always has the goal of a higher line of credit. A higher credit card limit will enable you to make much higher purchases, normally purchases that you are unable to get with your current line of credit.

There are ways that you can get a higher credit limit. Below, are some tips that will help you raise the limit of your credit. The most important thing to do when improving your credit limit is to improve your overall level of credit worthiness. This tells banks and lenders that you can be trusted with credit, and that you are little to no risk for them.

  • Do you need a Business Credit Card
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When lenders and banks look at your credit report, this is the first thing that they look for. You can attract a lot of positive attention with a credit card company or bank with your finance purchases. You should pay them every once in a while, although you shouldn’t go out of your way to make a habit of it. Normally, this should be done as a last resort when all else fails to increase your overall chances of raising your line of credit.

Once you prove to a bank or credit card company that you can be trusted to borrow money, they may raise your line of credit. You should be careful with this strategy however, as this could only apply to your bank or current credit card company. Having a higher credit line may allow you to have more purchasing power, although it can also leave you with more fees and even an increase in your current interest and APR charges.

Another great way to increase your credit limit is to use your credit card every chance you get. When you have a credit card, don’t use it just for emergency purposes. If you save your credit card for emergency purposes only, you’ll rarely use it. When this happens, your company will begin to wonder about your spending behavior and ability to pay it back, therefore they will start to think twice about giving you a higher line of credit. When you send in your payment, always try to pay more than just the minimum amount.

If you can afford to, you should try to pay the whole outstanding amount. Doing so shows credit card companies and banks that you are striving for better credit. This way, you’ll show them that you deserve to have a higher line of credit. If you follow the above tips, you’ll get your credit limit higher in no time at all. Once you get your limit raised, you should protect it at all costs. If you continue to strive for perfection - you’ll get a higher line of credit than you ever thought possible.

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Thursday, September 27, 2007

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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Wednesday, September 19, 2007

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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Friday, August 24, 2007

Credit Repair Clinics: Secrets You Should Know Before Hiring One

If your credit score could use a boost, a credit repair specialist may seem like the best solution. But don't even think about hiring one until you read this.

You've probably heard myths that suggest that credit repair specialists have some divine dispensation with the credit bureaus. They don't. Far from it. In fact, in a minute, we'll show you why they have less leverage over your credit file than you do.

How to Repair Your Credit Score Now: Simple No Cost Methods You Can Put to Use Today
by Jamaine Burrell

Your credit score affects every aspect of your financial life including qualifying for loans and mortgages, low interest rates, housing, employment opportunities, and even insurance premiums. Millions of Americans have negative, inaccurate, and unverifiable information on their credit report. Repairing your credit profile is one of the most important financial decisions you can make. You re about to take the important step of taking control of your credit! If you re like the average American, having improved credit will save you thousands of dollars on your loans and credit cards...

The sad truth about the credit repair clinic industry -- and it is an industry -- is that many of these so-called credit repair specialists are scam artists, and the ones that aren't will be using the exact same techniques to repair your credit score that you can wield more effectively -- and safer -- yourself. And they'll charge you at least $750 to $1000 for their "expertise."

Now for those dirty little secrets...

Dirty Little Secret #1: If a credit bureau suspects that your dispute is being filed by a credit repair clinic, they'll trash it.

Dirty Little Secret #2: Credit repair specialists may be in cahoots with your creditors. Many of them are secretly paid as much as 15% by the creditor to reach a so-called "debt settlement!" Who do you think comes out ahead in that scenario? Not you! Such credit repair clinics are the worst kind of predator, exploiting their client's financial woes.

Dirty Little Secret #3: Credit repair specialists usually won't give you access to their correspondence with the credit bureaus on your behalf. Why? Here are a few reasons:

(1) They don't want you to know how easy it actually is to do your own credit repair, and wonder why you're paying them.

(2) If they resort to boilerplate dispute letters (which will just likely end up in credit bureaus' trash cans), they don't want you to see their boilerplate letters.

(3) The ones who are scamming you -- only pretending to correspond with the credit bureau on your behalf -- surely don't want you to know they're not doing much in exchange for the hard-earned fee you forked over.

If you do hire a credit repair clinic to represent your interests, make sure that they are, in fact, representing your interests. Force them to detail their plan of action. Don't sign until they agree to provide you with copies of all correspondence with the credit bureaus.

Remember: your goal is to take control of your finances again, instead of letting your creditors, a credit repair specialist, or the credit bureaus control your financial health. Don't rely on anyone who isn't personally vested in your financial health -- and doesn't even necessarily have your best interests at heart -- to fix your credit score.

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How To Get A Credit Card With No Credit

When you first turn 18 it is important that you start your credit. All you need to do first is make sure you have a source of income. You don't have to make a certain amount of money or anything like that. You just need to have some way to prove that you make money. A bank isn't going to give you a credit card if you don't have a job to pay your minimum payments with. So if you are in school the ideal thing to do is get a small part time job working at least 10 hours a week. If you plan on not having a steady income you will not want to revolve your balances on your credit cards.

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Charge on your credit cards and pay them off at the end of every month until you are working consistently. This will help you establish a payment history. This is the main factor when you go to buy any large purchase in the future they are going to look for a solid payment history to prove you are trustworthy with borrowing money. Credit cards are a financial tool. But as most of us know they can get you in trouble real quick. Do not spend money that you don't have to spend. Only buy things when you know you can pay them back within a reasonable amount of time. Hear my words of warning because most people screw this part up within the first 2 years of establishing their credit. You don't want to be one of them. So we have established payment history is the most important.

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Now when you have no payment history you have a different set of options. Their are only certain credit cards that you can qualify for approval. These type of cards typically will give you between $200-$500 credit limit. This is a manageable limit that can teach you to manage money responsibility. This is good especially for people who don't make a whole lot of money. Like college students for example. College students get the most benefits for people trying to start their credit. This is because the credit card companies want you to get an education so you can afford to spend more of their money in the future.

Credit cards are a business like any other. They want to to establish a payment history now so when you graduate you can qualify for cards that will give you a credit limit of a few thousand dollars. When you prove that you can be trusted to pay back a small amount of money for at least 1 year. You credit is then experienced enough to get a card with a higher spending limit. What can really help this whole process for you is if you have a car loan.

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The credit agencies want to see different types of credit on your report as well. An auto loan is a loan that is secured by something. They like this because a car loan isn't as risky to a bank as it is to give someone a credit card. Credit cards are not secured by anything. It is just money that a bank gave you that you can make payments on. Go to the link below and find credit card offers that say you need limited credit, no credit ok, and bad credit ok.

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Monday, August 20, 2007

Avoid Cash Advances at all Cost

After receiving your online credit card approval, you sit down and wait for your credit card that offers a 0% intro APR. When you receive your credit card, you realize that it is not enough for your needs. Luckily, you can get a cash advance on your credit card if you need cash quickly. It’s an easy thing to do, and you can get cash from any ATM accredited by your credit card issuer.

Using a credit card, especially for cash advances, is very easy. However, paying it off is not. Read on and learn the reasons why you should avoid cash advances on your credit cards at all times.

The first reason why you need to avoid cash advances on your credit card is the upfront fees for getting some cash. When you withdraw cash from any ATM, you will incur two charges automatically from some of the credit card companies. The first charge will be the processing fee. This could be a percentage of the amount taken or the minimum amount set by your issuer, which ever is higher. The other charge comes from the owner of the ATM, which is another bank. When you receive your bill, it will show the amount of the charge for the transaction fee, which could be a flat fee or percentage of what you’ve taken from their ATM.

The next reason is that the interest that is applied to your cash advance is much higher than your purchase rate. Normally your credit card after the 0% intro APR will be from 12%-18%. However, the cash advance will have a rate from 20% to 25% not including the additional fees that we have previously mentioned.

Another bad thing about using cash advances with your credit card is the application of interest. Your purchase APR will take effect after a month has passed, and it will include all the interest. If you have the money, you can immediately pay off your balance with minimum interest. The interest rate on cash advances is completely different in terms of the application on the cash advance. The moment you withdraw your money from an ATM, interest will be applied to it immediately. Even if you pay it back after a day or two, you still need to pay for the interest rate.

Lastly, and maybe the most hurtful is that cash advances are on your account itself. When you pay for the balance of your purchase, the cash advances are combined on your credit card bill, and the money that you are paying will not go to the cash advance first, but to your purchased bills. This will create a big disadvantage for you since as we just indicated; the rate of your cash advance is much higher compared to your credit card purchases.

This is the most upsetting truth about cash advances. If you can get hold of cash in another way, do it. Credit card advances will cripple your finances and once you get hooked on it, it’s really hard to pay it off.

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Thursday, August 9, 2007

What You Need To Know about Joint Application Credit Card

A joint application credit card is simply a credit card that allows two people to use it. It typically works as follows: An individual completes a credit card application and then requests an additional card. The other card or cards will have that second persons name on it, but will have the same account number assigned to it. Probably the most common example of this is a husband and wife.

In many cases married people have joint financial accounts for such things as savings, checking and investment portfolios. It greatly simplifies the management of finances. Another common reason for filling out a joint application credit card is a parent wanting to assist their child in establishing credit.

In a way it is similar to them cosigning an auto loan. This is often done when the child goes away to college. The advantage here is that the parent can keep an eye on all the activity generated by the student. Now here are some important points that you must understand before applying for a joint credit card.

The debt acquired by one of the cardholders is also the responsibility of the other cardholder. In other words, if your husband runs up a $3000 debt on the card and you should happen to become separated, simply stating that it is his debt and you are not liable for it isn't going to relieve you of that debt.

As long as your name is still on the card, you will be held responsible for any and all debts accrued. The way to stop this is to pay off the debt in full and cancel the card so there can be no further purchases made with it. Canceling a joint credit card can be done by a single party, as long as the account is free of outstanding debt.

The information I have given here is only a cursory look at the joint application credit card. Be sure to read the terms of service and conditions of the credit card issuer carefully and do not hesitate to directly contact the credit card company with any specific questions that you may have.

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Tuesday, August 7, 2007

When is a Right Time to Use Credit? Cash or Credit

These oft-repeated words are a cashier's stock phrase. Yet the question packs a powerful punch in demanding a response that may have a significant impact on your budget.

When should you charge a purchase? The following guidelines may help you think about the best answer to this question.

  1. Charge only when you must. If you can afford to pay cash, do so to avoid interest payments being added to the amount of the purchase. Emergencies like a flat tire, an unexpected medical bill, or a one-time expense can be paid by credit if you have no savings or cash on hand to cover it. But keep in mind you will have to pay interest charges and possible additional account fees if you do not pay the balance in full on the account statement when it arrives.
  2. Charge when other options are unavailable. For example, if you don't have cash or a debit card, you may need to charge something. But get in the habit of using your bank's debit card, which deducts a purchase amount from your checking account. This can be done without fees when you don't use your PIN, but check with your bank to clarify their specific rules and regulations.
  3. Charge against your home equity line of credit to get a tax deduction. Check with your mortgage institution for details or if you don't already have an equity credit line. Ask about the interest rate to be sure it will not exceed the benefit of a tax deduction.
  4. Charge to get cash-back value or bonus points on your credit account. Sometimes it pays to purchase gas, groceries, and routine home maintenance supplies if you can pay them off in full when the statement comes in. Some credit companies offer cash back on a percentage basis, depending on the amount of the credit purchase. Fuel card companies offer gasoline discounts. The goal is not to get hooked into overusing your card in exchange for services you may not really need.
  5. Charge for convenience. Rather than carrying cash around all day to the drugstore, grocery store, or video store, you may want to charge these and other purchases to avoid running out of cash, as long as you are able to pay the balance off each month rather than letting it accumulate. Paying at the pump for gasoline is especially handy when you're in a hurry or the weather is bad and you don't want to take those extra steps to pay inside or at the window.
  6. Charge when you travel. Tracking expenses and checking each purchase can help you monitor expenditures and the family budget as well as give you a few extra weeks after you return to pay the bill. Travel checks work well, too, although the monthly credit card statement provides a helpful spending history.

While a majority of people have at least one credit card, don't fall into the trap of relying on credit too heavily. Debt is a heavy burden to carry, especially as it continues to accrue added interest charges.

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Sunday, August 5, 2007

When To Consider Outside Help For Credit Repair

Certainly, you would like to handle all of your credit payments on your own in a timely and efficient manner, but sometimes your best bet is to consider outside help for credit repair. Here are some of those times…

When You’re Up to Your Ears in Debt
If your monthly minimum payments cannot even be satisfied by your monthly income, you need to seriously consider outside help. Many people start out with one credit card, thinking that it’s no problem, and that they’ll charge some purchases, and then pay it off in full at the end of the month.

Guess what? That often doesn’t happen. In fact, what often happens is that not only is the card maxed out, and only the minimum payments are made on it, but also new credit card offers come in and are accepted. A vicious cycle ensues – paying with credit cards for everything – and then one day you realize that you don’t make enough money to support your out-of-control spending habits. Credit cards can be very addictive.

Many college students fall victim to the allure of having multiple lines of credit even though they do not have an income yet. They assume that once they graduate from college, they will be able to pay it off. Unfortunately, that is often categorically untrue. In fact, many young people who have gotten mixed up in this credit trap find that they ruin their credit before they are even out on their own in the world, and then when they want to get out there, their bad credit severely impedes them in getting an apartment or a mortgage or a new car. If you are in more debt than you can handle, you should contact a financial planner or a debt consolidation advisor to explore your options for getting out of this debilitating debt.

When You Lose a Job
If you lose your primary source of income, you may find that you cannot juggle your bills anymore. If you had a high-paying job, you may have become accustomed to enjoying a luxurious lifestyle. You may have gotten credit accounts based on your high salary, and you could have paid them off if you hadn’t lost your job unexpectedly. Unfortunately, despite your good intentions, you cannot stop the world from being an unfair place sometimes. If you lose your job and you have to adopt a new lifestyle as a result, it is a good idea to speak with a financial planner or analyst so that you can create a plan for managing your debt until you get a new job. Once you get a new job and you know what your new salary will be, you should seek outside help again so that you can restructure your payments.

When a Straw Has Broken The Camel’s Back
Sometimes it can seem as if one unplanned financial burden can completely topple your financial house of cards. The fact of the matter is that you were probably in over your head before this unforeseen financial burden. If you have so much credit that you are “just making it,” as in you are living paycheck-to-paycheck, and one more payment will be your undoing, you need to seek outside help. Your financial plan has to cover unforeseen emergency pay-outs – because they are inevitable. Like the great saying goes: “Expect the unexpected.” Speak to a financial planner about setting up an emergency fund so that you don’t have to lose complete control over your finances when things don’t go your way.

When You Can’t Sort It Out
If you have a large quantity of accounts to tend to every month at bill-paying time, you may feel overwhelmed and confused. Even if you have enough money to cover your expenses, you may need to consider outside help so that you can get organized and under control. It may sound ridiculous – if you have money, then why would you need any help, right? Well, even wealthy people are not immune from getting bad credit scores. Having too many open accounts can make you more susceptible to accidentally missing payments or losing track of specific payment dates. Consult financial planners so that you can either consolidate some of your accounts or develop a strategic plan for managing the plethora of accounts that you have.

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Saturday, August 4, 2007

How to Establishing & Protecting Good Credit

Rich Dad's Advisors: Turn Bad Debt into Good Debt and Bad Credit into Good Credit
by Garrett Sutton

Know yourself, get your attitudes and behavior under control, and then use the author's formulas and action steps to wrestle your credit report, account by account, back into something respectable.

Many people claim they will never need to use credit in order to obtain the goods and services they need, but credit is necessary unless a person is financially well off and can pay cash for everything. The average person cannot obtain a home or a new vehicle without making monthly payments. It would be ideal to never have to pay interest in order to obtain the luxuries and necessities of life, but few are able to do so. You may think you’ll never need credit, but you may find yourself unable to buy what you want if you haven’t established and maintained a good credit history.

If you want to establish credit, one of the ways of doing so is with a credit card account. Some credit card companies are willing to take a chance on a new customer, and offer a small credit line to those who have yet to establish credit. The easiest credit cards to obtain are department store cards and service station cards. They are however not as valuable in the eyes of credit reporting agencies. Even if you always remit the required payment on time, your credit score won’t improve as much as if the major credit card companies such as Visa or MasterCard issued the cards. Try to obtain a small line of credit with one of the major credit card companies, but keep in mind that every time you apply for credit and are turned down, this information ends up on your credit report, even if you haven’t established credit. This can become a vicious circle that is sometimes difficult to break into.

Some credit cards are considered secured, which means you must maintain a savings account to secure the balance of the card in case you default on the payment. These types of cards are useful if the issuing company doesn’t inform credit-reporting agencies that the account is secure. If the card is reported as being secure, your credit score will actually become damaged instead of improved. Avoid secure credit card accounts if at all possible, or at the very least, find out what the company policy is regarding sharing information about the account.

If you are in need of new furniture, appliances, or electronics, you can begin establishing credit by shopping at a rent-to-own store. Items sold in rent-to-own stores are often more expensive than other retailers, but this is sometimes the only way people without credit can obtain items such as these. Not only will you get the items you desire; you’ll be establishing good credit when you pay the monthly amount due on time, every time.

Some stores, such as carpeting and flooring stores, offer credit accounts to their customers. Carpeting and flooring is rather expensive, so credit customers are important to the success of a business such as this. It is for this reason that this type of credit is relatively easy to obtain. Improving your home by purchasing new flooring is a great way to begin establishing credit.

Once your credit has been established, it’s of the utmost importance to maintain good credit by paying your bills on time. Everyone makes mistakes and forgets to pay a bill now and then, but if you pay a bill more than 30 days late, chances are it will be reported to the major credit bureaus. Make a habit of paying your bills late, and your credit score will take a major nosedive.

Don’t let your credit get out of control. People often make the mistake of overextending themselves, and they become buried by credit card debt. Use your credit wisely, and it will be there for you when you need it.

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Friday, August 3, 2007

Myths of Instant Credit Repair

If you are looking to buy a new house or a new car, your credit may be on your mind. Knowing your credit rating and what it means can help you decide if the time is right to buy or if you should do some credit repair first.

When you apply for credit of any sort, a company will look at your credit history to decide what interest rate to offer you, or if they want to offer you anything at all. Your FICO score is a cumulative number that represents what your credit looks like at that moment. Your FICO score will go up and down from week to week.

7 Steps To A 720 Credit Score
by Philip X. Tirone,Jocelyn Baker

Teaches you everything you ever needed to know about credit & perfect resource for people who have great credit, bad credit or no credit at all.

Depending on your past credit and your current credit standings, your FICO number will range between 300 and 850. 850 is considered perfect credit. Anything under 650 may be labeled as "risky". This varies from company to company; each set their own standards as to what is acceptable. There are three major credit reporting companies. They are Equifax, Experian, and TransUnion. Your number or report may differ from company to company.

Debt-to-income ratio, payment history, closed unpaid accounts, up-to-date open accounts, defaults and liens are all considered when your FICO score it tallied. The number of times someone has requested your credit score can also influence this number. If there are an excessive amount of requests, this may paint you as desperate for a loan. This may make some companies think twice about offering you a loan or line of credit. Bankruptcies are also accounted for in your FICO score.

Not only are loan companies looking at your credit when you apply for a loan, so are potential employers and potential landlords. You can request your credit report to see where you stand. If you do not like what you see, there are a few things you can do to raise your credit score.

One thing to avoid is a company that claims that they can instantly "fix" your credit, wipe your credit report clean and erase all debt. Some even guarantee that they can do this. The only thing they can really guarantee is that they will take your money.

There are no quick fixes to credit problems. There are only a few things these companies can do for you, and you can easily do them for yourself. What surprises many people is that credit reports often contain errors that are lowering their credit score. You can write to the credit reporting companies to have these errors removed. Any listed debt that cannot be verified in thirty days must be removed from your report. Outdated listings (those on your report longer than seven years), can usually be removed.

Mistakes are often made about payments and the closing of accounts. You may even find someone else's listing in your report. If you find a discrepancy that might be lowering your score, you can often get this ironed out as well. One thing that you cannot change is factual information. No company can clear away valid debts. If you made your car payment three months late, there is nothing you can do to get this erased from your report. If you defaulted on a loan, that information stays on your report for 7 to 10 years. Any company that tells you that they can get rid of these types of factual listings are simply not telling you the truth.

If you find a legitimate credit counseling service, there are a few things to remember. They may be able to help you negotiate a lower payoff amount for some of your debts. However, this may not reflect well on your credit report. If the company chooses to do so, they can list the debt as “closed, but not paid-in-full.” This can hurt you, even though you think the debt is gone. It depends on the company. Some will simply mark it as “paid-in-full.”

Just as with everything else in life, if it sounds too good to be true, it probably is. Be careful with who you trust when it comes to credit repair, and remember that with a little work, you can do most of this yourself.

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Wednesday, August 1, 2007

1 Hour Success to Credit Card Debt Elimination

The road has been a bumpy one indeed, but realize that you are not alone in your quest for financial freedom. Most people that you meet are in the same boat as you are…They are strapped with credit card debt. Unfortunately, many people believe that their only way out is through;

  • Filing for bankruptcy
  • Living off Mac & Cheese for the next five years
  • Or finding some miracle way to earn the money needed to pay off the debts

Well guess what? It’s not about any of these. There is a simple plan for credit card debt elimination that anyone can master. I think back to when I was strapped with debt. I tried borrowing money from family and friends and even tried doing some crazy schemes where I would send a letter and believe the banks would just wipe away the debt because I said it wasn’t mine. It wasn’t until I broke down and started researching the methods that banks use to place you in debt, which I realized how easy it was to get out of debt.

The nice thing is that I didn’t need to hire lawyers or go to court at all. I applied some simple steps and was amazed. In 3 years I was debt free and I did it all with the one small job that I had and I didn’t even need to go to a high priced counselor or debt be gone boot camp. I simply mastered my own destiny and experienced my own credit card debt elimination.

More often than not people believe that they have to be stuck in a certain type of rut until enough time passes so that things naturally take care of themselves or feel that they must locate a way to raise thousands of extra dollars. Not Needed! I researched and found out that there was extraordinary software available that took care of the process of credit card debt elimination and it was free (Debt Knife). I also realized that there were free credit counselors in every major city that were not for profit.

The truth is, do NOT get depressed or feeling like there is no way out for you. By looking through free sites, gathering free software, and speaking to the right individuals, you can be debt free in 3.

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What To Do If Credit Card Debt 80k Plus

Many consumers are faced with overwhelming financial hardship and have a substantial amount of debt. I have seen debt amounts from $200 dollars all the way to $629,589 in unsecured credit card bills. There are major differences between the average person that has $15k in credit card bills to the person that has above $80,000 in credit card bills.

Once the debt amount has grown to $80k or above the chances of the consumer paying off that debt becomes bleak. On that amount of debt payments would be above the $2,000/month mark and based upon your credit score the interest rates may hover around the 20% range. The combination of the compounding interest and the extreme monthly payments is a recipe for disaster.

Most consumers accumulate high credit card debt in a few ways. The first being a medical expenses and the other being a long term job loss. For some families if an emergency occurs and medical attention is required but not covered by insurance most people will result to credit cards to solve the lack of cash or savings issue. In certain instances a job loss depending upon the field could take 12-18 months to be rehired and when that rehire takes place you have to hope that you are getting the same rate of pay as before. During the 12 months that you are off work un-employment does always cover the costs of living and credit cards can be the crutch to get through tough times.

Before things get to out of control you should look into debt relief or seek debt counseling for your debts above $10k but debts larger than $80k require immediate attention. Debt settlement programs can help to reduce the total amount of debt that you need to payback and can provide you with one lower monthly payment in order to settle your debts in a efficient time frame.

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Tuesday, July 31, 2007

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 and piling up debts; we don't always control everything that happens to us in life. But that does not make bad credit less damaging, anyway. Bad credit could readily make a bad situation worse. It prevents you from getting loans, financial help or credit cards, or makes you pay neck-breaking interests on loans. Since we all will need credit someday, the earlier you start doing something about that bad credit, the better. It sure will be no good to pay off debts just before requesting credit, because most lenders are more interested in your financial history.

It may not be so easy to repair bad credit, but there are steps you can take to make the whole process easier. So, when you find yourself in such a situation, the following advice could be of great help.

I think the first port of call should be the credit bureaus responsible for providing credit reports in your locality or country. Each country has established credit bureaus with the task of monitoring your credit performance, as reported by financial institutions and you can always get your credit report from these bureaus, free or for a fee, depending on your country. If there is more than one established bureau, you may want to get each body's version of your report. It affords you the privilege of comparing the different versions. The reason why the reports may differ is that they are prepared based on the information supplied to the bureaus and it is possible they get different information about your accounts from different reporters.

Once you have the reports, scour them for errors. Don't be surprised to find mistakes or negative comments that are not true in your reports, it happens. You will also want to take note of credits that have been cleared but are still showing in your report, or accounts you cannot remember opening. Fraudsters do open accounts in people's names only to clear out the credit when the attached credit line gets reasonable. These are all very bad for your credit rating. You may also find scathing negative comments in your report. For a start, you will need to clear all these anomalies. Get accounts that are not yours removed from your credit report. Talk to creditors who are reporting negative comments about you or still showing bad debts that have been paid. You may be pleasantly surprised at how many creditors are willing to cooperate once you have explained your situation. The bottom line is communication. Talk to creditors; explain the situations you are facing. People can't help you if you don't tell them what you are experiencing. Besides, you can file a dispute, if you are sure some negative comments or bad debts are not supposed to be on your credit and the creditor don't want to cooperate, especially when you have documents to back up your claims.

There are times when the scathing comments on your report are indeed true. However, if your account is in a good condition now, you could still talk with the creditors and arrange to get the comments removed from your report. Your credit report will look better with fewer of those negative comments. Another factor that needs to be considered is the amount of debts hanging round your neck. Too much debt, definitely, spells pending financial crisis and a low credit rating. Lenders will be reluctant to grants loans or credit lines, if your report shows significant debts, even if you have re-paid most of the debts. Too much debt is a sign of financial recklessness, it does a heck of a lot of damage to your credit rating. The ugliest side of the story is that you will be required to pay higher interest rates for loans if your credit is bad, to cover the risk of lending you money. It is wise a idea to keep debts less than 30% of your limits and to pay off debts with the highest interests rates first.

Just as too many accounts will pull down your credit, too few accounts may also be harmful. If you don't have enough established accounts, your credit may be poorer than it should be. Adding departmental store or gas cards account that are in good standing to your credit report will surely boost your credit standing. Another idea is to get a loan or credit card and buy something you know you can pay for quickly. Re-paying debts on small loans or credit card purchases quickly will speed up your chances of repairing bad credit.

Bad credit is not a thing to get over with in a hurry. It takes time and requires patience. Take your time, clear your debts gradually beginning with those with the highest interests rates. Your seriousness in dealing with past debts could impress lenders and show them you are financially serious and reliable. Whatever you do, remember that you are affecting your financial future.

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Visa Vs MasterCard – Which Is The Best?

The two leading credit card companies in the world today are the competitors Visa and MasterCard. They both operate along very similar lines. While Visa can claim to have almost a billion cards issued, MasterCard has over twenty five thousand banks issuing its cards and it is difficult to find any difference in the number of locations worldwide that accept the cards, which is now estimated at over twenty million.

In fact, as far as most consumers are concerned, there is no real difference between the two. They are both very widely accepted in over one hundred and fifty countries and it is very rare to find a location that will accept one but not the other.

However, neither Visa nor MasterCard actually issue any credit cards themselves. They are both simply methods of payment. They rely on banks in various countries to issue credit cards that utilise these payment methods. Therefore, the interest rates, rewards, annual fees, and all other charges are issued by your bank and when you pay your bill you are paying it to the bank or institution that issued your card and not Visa or MasterCard.

How Visa and MasterCard make their money is by charging the retailer for using their payment method. So the truth of the matter is that a Visa issued by say the Bank of Scotland will have very little to do with a Visa issued by other banks and may in fact by more similar to the Bank of Scotland’s MasterCard.

What this means for the vast majority of customers is that you do not have to overly concern yourself with whether a credit card is MasterCard or Visa. You would be better off concentrating on the interest and other charges on the card, the balance transfer possibilities or their reward scheme. You are very unlikely to ever be effected by the fact that it is one and not the other.

If you prefer, if you are going to have two credit cards, you may decide that you want one of them to be Visa and the other MasterCard, this means that if something drastic were to happen to one company, or if you were in the unlikely position of finding a location that accepts one but not the other, then you would have the option of paying with either.

At the end of the day however, much more depends on the bank that gave you the card, than on the type of card it is.

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