Saturday, August 30, 2008

Avoiding College Credit Card Traps

Congratulations college freshman! You’re about to embark on one of the most exciting times of your life. By now your parents, siblings, and friends have offered you all kinds of advice on how to make your transition to college smoother - how to get along with your roommate, what classes to take and which ones to avoid, where to find the best off-campus food, and how to stay safe on campus.

One thing they may have not warned you about is how quickly you’ll be bombarded with credit card offers. You’ll find them in your textbooks, in your mailbox, and on every campus bulletin board. You’ll be offered free DVD’s, t-shirts, music downloads, and more in return for completing an application for credit.

Why all this fuss over you for a stupid piece of plastic? Because they love to recruit new borrowers, especially in your age bracket. They know, from numerous studies, that college students tend to be impulse buyers. And even though your impulse purchases tend to be small - pizza, coffee, beer, CD’s, cigarettes, books, etc. - those small purchases can add up quickly.

Fifty-four percent of freshman students and 92 percent of sophomores have at least one credit card. A recent study shows the average college student graduates with between $1,500 - $3,000 in credit card debt.

Here are 7 tips to help you manage your college credit card needs:

1) Look for a card with the lowest fixed percentage rate and a low or no annual fee. Read the fine print carefully - many low or 0% introductory rate offers expire in 6-12 months.

2) NEVER use your credit card for a cash advance. The fees and repayment structure associated with a cash advance are outrageous.

3) Have a budget! Your credit card is not free money. Budget your money so that you can pay off your balance at the end of each month. If you can’t pay off the balance, always make more than just the minimum payment.

4) Pay your bills on time, otherwise you’ll pay a late fee between $25-40 every time your late with a payment. Late payments will also increase your chances of having your percentage rate raised on ALL your credit accounts.

5) Request a low credit limit somewhere between $700-$1,500. The object is to have credit available to meet some of your expenses and in case of an emergency.

6) Less is better. You don’t need more than one or two cards at the most. The more you have the more tempted you’ll be to use them or to “max” them out.

7) Consider using a debit card instead. A debit card is linked to your checking account and purchases are automatically deducted from your account balance. Of course, make sure you have money in your account to cover any purchases you make.

Using a credit card is a big responsibility whether you’re a college student or an adult. Managing your credit wisely establishes a positive credit history which will serve you now and well into the future.

Friday, August 29, 2008

Student Credit Cards Pros and Cons

Most people hold that learning to manage one’s personal finances at an early age is imperative. I certainly did not have got much counsel in this country when I was studying and between seeing my friends and cramming for examinations it did not rate as a high priority! Financial independency is something most human beingnesses endeavor for yet very small is taught on this topic at schools and universities alike. It is a shame that such as critical life accomplishments are rarely addressed in our young person unless our parents are particularly diligent in this area, as many of us have got to learn our lessons the hard way.

Whilst at university I observed many of my friends struggling with student credit card repayments. These cats had fallen into the easy trap of disbursement money they didn’t really have got and leaving the distressing for a rainy day. Well conjecture what? When it rained it poured! One peculiar friend of mine was disbursement a batch more on his credit card than he was able to earn each week. I’m certain it was nice purchasing all those misses those drinks but was it deserving the concern of insurmountable credit card interest repayments? This friend still pays to this twenty-four hours for his errors as his credit history will not measure up him for anymore credit of any kind. This is quite sad because credit actually can be good to those who manage it appropriately. In fact it could be argued that every human beingness will need or at least benefit from some type of credit in his or her lifetime. You may cognize that it is very rare for investors to utilize their ain money in business, instead they leverage the bank’s money to derive net income for themselves before paying the bank back. This an acquired accomplishment and a whole other topic.

So, the inquiry is; should students have got their ain student credit cards? Despite my rather black introduction to this article I would state absolutely yes. I state yes because as I said there are many benefits of having some credit. Also, learning how to manage credit from an early age will put you up to avoid some serious financial headaches in the future. Remember my friend? Trust me, you don’t desire to stop up like him.

Student credit cards are readily available these days. All major banks will actually have got a range of credit cards specifically suited to the needs of the student. Often this mightiness mean value reduced rates, student focused benefits, etc. Applying is made very simple by websites like where you are able to reexamine the best offers from different banks and also apply online for fast and easy approval. Just retrieve to have got got your personal financial information on manus so you can fill up out the word forms correctly.

There are a few grounds I believe it is of import for students to have their ain credit cards. Firstly Iodine urge every student have got an ‘advisor’. An advisor can be a professional, a parent or household member, or friend with accomplishments in this area. Most college campuses will offer free financial advice to its students as well. An advisor can assist you with budgets, apprehension interest rates and assist you understand your alone situation. It is of import to understand your earning capacity and cognize whether it will allow for credit card repayments.

It is very good to anyone to set up a credit history which banks utilize to measure additional loan and credit applications. If you wish to have got got got your ain home you will have to travel through this 1 twenty-four hours and the longer you can demo have adequately maintained a credit card and its payments the better opportunities you will have.

Financial emergencies, which all of us can associate to, will also come up up and a credit card can really do things easier to manage these small crises. Often a low bounds of $500 to $1000 is all you need to cover some unexpected expense. It is a great feeling knowing you can manage these states of affairs without having to phone home or borrow from a friend.

Simply using credit cards to pay for things and then transferring money from your nest egg account to cover the costs on your credit card is a good manner of earning benefits from your credit card supplier. These benefits will range from frequent circular points to shopping credits. Check some really cool student cards including the extremely popular MTV Card.

Tuesday, August 26, 2008

What You Need to Know About Secured Credit Cards

There’s so much to learn about the different credit cards made available to the public today. First of all, it’s important to choose a credit card that aims to work for you and your lifestyle. Make it easy on yourself. If you do the research before committing and establish what you want to use a credit card for, the rest is easy.

Secured credit cards are used in a number of ways. They’re convenient because they are used like a regular credit card. However, there is a difference between these credit cards and regular credit cards. These credit cards are secured. If you want a secured credit card, you’ll need to put down cash as collateral in order to secure one. It’s like making a personal deposit. That deposit becomes your line of credit, available to use when you need it the most. Credit cards that are secured, often times, contain limits as to how much you can deposit on the card at any given time. Most cards will hold up to $500.00. Depending on the credit card company, they may allow you to deposit more. In the end, the bank will reward you for making payments on your credit card – payments which have already been established because it’s coming from you in advance as a requirement of using the card. Therefore, owning a secured card will actually help you to establish a good credit rating. In fact, it is the perfect way to get your credit back on track if you’re suffering with poor, bad or no credit.

Make sure to shop around for your secured card. Every company offers different perks and services, which get attached to your card. That is why it is important to do your research first. Establish what’s important. How do you plan to use your credit card? Where will you make the majority of your purchases? Most importantly, you’ll decide how best this card will work for you and your current situation. Make sure that whatever card you choose, that the supplier reports your history to credit bureaus. Otherwise, your card isn’t helping you build credit, and that is one of the most important factors in using a secured credit card. You will establish good credit and improve your credit rating considerably. You also avoid the risk of running into debt again, because you control what you spend.

No-one will ever know that your credit card is prepaid. You can use it in your favorite restaurant and it will look just like any other card. Prepaid credit cards are one of the best ways to make your purchases without the risk of spending more than you can afford. You are completely in the driver’s seat.

Sunday, August 24, 2008

Why Do We Need Credit Cards?

In the world today a credit card has become very valuable, and for many different reasons. More buying power, isn’t that what we all want? With a credit card that is exactly what you get. How often is it that your finances just won’t allow for a big purchase or you experience financial hardship? Credit Cards provide you with an alternative method of payment.

It can also be used as a way for secure traveling. For instance say you are traveling or on vacation and your wallet is stolen, if you were to be carrying a large amount of cash it would be gone forever. With a credit card in your wallet all you need to do is notify the issuer of the credit card and they can instantly cancel the credit cards and issue you a new one.

Would you like an interest free loan? Here is how to get one. Simply charge your credit card the amount needed. Then pay off the entire balance before the due date, or before the interest is applied.

Security of credit cards have become state of the art with today’s encryption technology companies are going to great lengths to protect and ensure your privacy. So that someone cannot simply steal your personal identity and credit card information. This is allowing us to use the internet for one of its main purposes, shopping and making our lives just a little more convenient. Also, if you have a credit card it gives you the choice to carry less cash on hand but still have the ability to afford those little or sometimes not so little unexpected expenditures.

However the largest benefit of having a credit card is all building your credit score, repairing your credit, or getting your credit in the best state possible. This is another way to prepare yourself and your credit score for future purchases such as a home, car etc.

Friday, August 22, 2008

Great Credit Cards for People with not so Great Credit

Everyone cognizes you can get a credit card with not so perfect credit, but you will be paying high interest. I have got got establish that is just not the lawsuit anymore.

You can now have the option of obtaining a Pre-paid card which gives you the simplicity and convenience you need to manage your finances easily. Some characteristics of this card are free direct deposit, which do payday faster safer and more than convenient. Integrated measure payment, wage your measures online or even over the phone. Access to checks; direct a check to anyone directly from your account. Access to cash, retreat money at billions of standard atmosphere machines worldwide.

Other types of credit cards are also available for those with bad or no credit and they are unsecured. Approval is guaranteed when makings are met. You can be approved for up to $7,500 of credit regardless of your credit history. Monthly credit bounds additions are available to those that qualify.

Many companies are now offering other types of credit cards for those trying to reconstruct or construct there credit. Sometimes they begin out at a lower bounds and if you do your monthly payments on clip they will gradually increase your limit. You may desire to compare all these different types of credit cards and see which one plant best for you. Now you can do your bad credit bend into great credit to fit the cards in your wallet.

Tuesday, August 19, 2008

Avoiding Credit Card Traps

The adjacent clip you open up your credit card statement, take a near expression at the small insert titled “changes to your credit card agreement”. You cognize the 1 I’m speech production about. It’s that small, folded paper written in legalese that you assure to read some other clip (but of course of study that clip never comes) or you just discard it with the other “junk” inserts.

First and first you must understand that using your credit card after you’ve received this presentment consequences in your automatic “agreement” to the new terms in the notice. To forestall these new terms from affecting your account you must halt using that credit card immediately or by the day of the month given in the presentment statement.

The most common alterations to credit card understandings include new APR’s (annual percentage rates), new fees and/or changes to existent fees, or a change to the saving grace time period on your account. The saving grace time period is the number of years during which any credit used for purchases may be repaid in full without incurring a finance charge.

Not knowing or not keeping path of the dollar amount bounds on your card is another trap you should avoid. Credit card issuers will allow you to charge a small amount over the bounds set on your account. However, don’t be surprised when you get hit with an “over bounds fee”, usually around $35.00 or higher, on your adjacent statement. Also, be prepared for your APR to be increased if you travel over your credit limit.

You’ll also trigger an addition to your interest rate if you lose your payment owed date. Some companies see your payment late if not received by twelve noon or 1 p.m. on the day of the month due. Along with the higher rate, you’ll also pay a “late fee” of $29 on up. Be certain to utilize the company’s preprinted envelope when sending your payment. These envelopes allow the pre-printed bar codification to be scanned by the station office so that it can be delivered more than efficiently.

If you’ve counted on those few extra years from the clip you get off your check and the clip the check unclutters your bank, beware! Many credit card issuers have got switched from the traditional method of processing checks to a new electronic process. This new system shaves off a twenty-four hours or more than from the traditional method it normally takes for your check to unclutter by electronically debiting your account.

If you’re considering paying your credit card measures online, check to see if any further fees will be charged for using this type of payment. I recently received an e-mail message from one of my credit card companies announcing how easy it would be to do my payments online. Included in mulct black and white at the underside of the e-mail was this short letter - “A fee of up to $14.95 may be charged for this service and will be deducted from your checking account”. Hmmm, pass 37 cents on postage and mail my payment five years before the owed day of the month or pay now and get charged an further $14.95 fee? I’ll stake you can think which pick I made.

Taking the clip to carefully read and understand your credit card understanding now will assist you salvage money by avoiding unneeded fees or climbing interest rates later down the road.

© 2004,

Sunday, August 17, 2008

7 Compelling Reasons Why A Prepaid Debit Card May Be Just The Financial Tool You Need

Prepaid debit entry cards are great financial tools and may be just the financial tool you need. Here a seven compelling grounds why:

1. A prepaid debit entry card assists you remain out of debt because the money you pass is your own. Credit cards encourage you to pass money you don't have, thereby giving you a false sense of reality. In truth, by using a credit card what you’re doing is borrowing money from person else (your card provider) to purchase the things you want. However, with a prepaid debit entry card the money you pass is your own.

2. Prepaid debit entry cards assists you command your disbursement habits, because in most cases you cannot pass over the amount you have got in your account.

3. A Debit card can be the perfect manner to pay your freelancer if you are a small business owner. Simply issue your freelancer a card and loading finances onto the card whenever you desire to pay them for a completed project.

4. You can utilize a prepaid debit entry card to direct money to your loved 1s abroad or to your college age children away at school. Some debit entry cards allow you to have got two cards for one account and in this lawsuit you will be able to maintain one for yourself and direct the second to your loved one. Once they have got received their card you can loaded finances to your account and phone call the other individual to state them how much money they can access from the nighest standard atmosphere or poloniums merchant. Their money is instantly available worldwide. It's a cheaper and faster option to expensive money transfer companies.

5. Prepaid debit entry cards are a safer manner for employees to have their salaries. Statistics bespeak that in the United States over 3 million paysheet checks are stolen each year. However, with the usage of direct sedimentation combined with a paysheet debit entry card, there is no concern of that ever happening. Also, through the usage of direct sedimentation and a paysheet debit entry card, you will have got contiguous access to your wages, 24 hours a day, 365 years a twelvemonth - no matter what portion of the human race you're in. You will also salvage clip by having your wage deposited to your paysheet debit entry card - no more than standing on long lines each wage time period in the bank to cash your check.

6. A debit entry card is a convenient and low-cost solution for the unbanked. Over 10 million households in the United States alone make not have got bank accounts. In cases like these debit entry cards can function as bank accounts. They can be used to access cash or do purchases at merchants such as as gas stations, grocery store supplies or convenience stores. Additionally, debit entry cards can be just as utile as regular Mastercards or Visas because in many cases they can be used to purchase commodity and services not only in stores but on the internet, and via mail order and to retreat cash at home and abroad from ATMs (cash dispensers).

7. Prepaid debit entry cards are easier to apply for than credit cards. Often, they necessitate no bank account, no employment verification, no credit checks and no security deposit. If you've been turned down for traditional bank issued credit cards because of poor credit, bad credit or no credit at all, seek applying for a prepaid debit entry card. Some prepaid debit entry cards have got a built in credit reporting characteristic which do it easier for people with bad credit to reconstruct their credit histories by reporting their monthly payments to the major credit reporting bureaus.

Saturday, August 16, 2008

Credit Report Disaster Through Mistaken Identity

I've got some very of import information I desire you to believe very seriously about. I'm sure by now you've heard of Identity Theft,...heck you may have got even been affected by it. I cognize many of my friends have.

But how about what may potentially be even a more than dangerous threat......."Mistaken Identity". That's right, "Mistaken Identity"! Throughout my career in lending, the absolute biggest problem that I've seen clients brush when applying for a loan, is person else's derogatory information screening up on their credit report!

You would not believe the incubus I've seen clients travel through, when they realized person else's bad credit history was showing up on their report, causing them to be declined for the loan the should have got easily qualified for. Little did they cognize that everytime person on the other side of town made a late payment, or decided not to pay at all, it was being added to their credit report.

Believe it or not, I've level seen one specific lawsuit where "Mistaken Credit Identity" forced person into bankruptcy! That's right, a lady came to me wanting to apply for a new home loan. Unfortunately she had recently lost her occupation and her measures were starting to stack up, and her militia were running low. Luckily, or though she thought, she had plentifulness of equity in her home that she could access through a home equity loan, to pad of paper her bank account and give her plenty of external respiration room until she landed a new job.

To her daze and dismay, I pulled her credit report and informed her that she did not measure up for the loan. She was in disbelief. "I've never had a late payment in my life"! she exclaimed. I told her her credit score and get listing off the multiple derogative entries that were listed. She couldn't believe what she was hearing. How could this happen?

It happened because she had a very common last name, and also shared a very similar first name to another individual who lived not far from her, and even had a very similar societal security number. Unfortunately my possible client had not applied for a new loan of any sort for respective old age and had no thought that these mistakes had been piling up. As a matter of fact, the mistakes were so terrible that despite literally calendar months of working with her to get the mistakes corrected, we couldn't rinse them away in time. Her financial state of affairs had sprialed out of control and she was ultimately forced into bankruptcy. all could have got been avoided if she had only known the state of affairs existed in time. I cannot emphasis enough the importance of having your credit checked at a minimum, every six calendar months to check it for errors.

Don't allow something like this go on to you! I can very easily be avoided if you take the proper steps.

It is now reported the over 80% of all credit reports have got got got errors, and if you have a common last name, Oregon have Jr. or III, etc., astatine the end of your name, opportunities are closer to100%!

Don't wait until it's too late, take action now and give your credit a "check up"!

****Please feel free to go through this article along to a friend, or to print on your web site, as long as no changes are made to the resource box.****

Thursday, August 14, 2008

Prepaid Credit Cards

If you have got a history of bad credit and are not able to obtain a mainstream credit card, then prepaid credit cards may be just the reply you are looking for.

First of all, although prepaid credit cards are accepted at any retail mercantile establishment where the credit card logotype is displayed, strictly speaking they are not a ‘credit’ card, as the issuer supplies no credit installation to you. Rather, your disbursement bounds is determined by how much money you have got on the credit card at any given time.

Once the amount on the card have been spent, the cardholder can either purchase a new prepaid credit card or elect to transfer money on to the existent card, depending on the card program.

Although prepaid credit cards sound very like debit entry credit cards, the two should not be confused. In the lawsuit of debit entry entry cards, any purchase for commodity or services you do will automatically be charged to you bank account – for which the debit credit card have been issued. However, purchases for commodity or services made on prepaid cards travels off the balance already on the card.

Because of the prepaid nature of these cards, they have got got respective benefits, such as as:

no interest is charged

they give people with a bad credit history the option to
utilize a credit card

the ‘credit’ line is variable depending on the amount on the balance of the card

That said, you still need to reexamine the terms and statuses of the application word form carefully as prepaid credit cards can have

a monthly rank fee
an application fee
a purchase fee
a monthly transaction bounds fee, i.e. if you pass over a fixed amount each calendar month you are charged a fee for any further transactions
a fee if you utilize the card to do standard atmosphere withdrawals

Nonetheless, the card is a brilliant option if you either cannot obtain a regular credit card or are tired of all the fees and interest charges that are normally associated with standard credit card.

Wednesday, August 13, 2008

The Advantages of Credit Cards

There are many immoralities associated with credit cards, but there are benefits that are hard to ignore. One benefit is having the credit card company enactment in your behalf to retrieve finances from a moot transaction. Under the Carnival Credit Charge Act the credit card company have to look into the difference and either return the charge off your measure or explicate why it is correct. Even better, you don't have got to pay the part of the credit-card measure or related to interest charges while the difference is being investigated.

The types of blling disputes/errors covered by the Carnival Credit Charge Act are:

Charges that listing the incorrect day of the month or amount.

Charges for commodity and services you didn't accept or weren't delivered as agreed.

Math errors.

Failure to post payments and other credits, such as as returns.

Unauthorized charges.

Before you challenge any of issues you must first reach the retail merchant and seek to settle down the dispute. If they disregard you, or the difference is not settled then reach the credit card company. Usually you need to have got your difference in authorship to the credit card company. The computer computer address for charge differences is different then the address to direct payments. The charge difference computer address can be establish on the dorsum of your monthly statement. If it cannot be found, phone call the credit card company's client service for the charge difference address. You usually only have got a certain number of years to difference the charge mistake so do certain you get off in your difference before the deadline.

If contacting the credit card company doesn't decide the dispute, you may reach the Office of the Accountant of the Currency's Customer Aid Group. Their website is and phone number is 800-613-6743.

Monday, August 11, 2008

Credit Cards for People With Bad Credit - How to Avoid Getting Ripped Off

If you've had credit problems, then you've probably received offers for credit cards aimed at people with bad credit. These offers range from legitimate, to questionable, to outright scams. How can you state the difference? The reply is to read the mulct print, usually to be establish in a written document called "Terms and Conditions." To demo you the difference between "the good, the bad, and the ugly" in the low-end credit card market, let's take a expression at the mulct black and white associated with such as offers.

We'll begin with one of the more than popular low-limit "starter" cards available today. These are existent terms published by a major company at the clip this article was written. The card come ups with a Visa logotype on it and looks like a regular credit card, so you can utilize it as an extra piece of designation when you're booking a hotel room, renting a car, and so on. In the "Terms and Conditions" document, the first thing we see is the annual percentage rate (APR), listed as 19.5%. That's not a particularly attractive rate, but it's not as high as a batch of other cards. A small farther down, we see that the APR for cash advances is higher, 25.5%, which is normal since there is greater hazard involved to the company.

Where it really gets interesting is the subdivision that listings the fees associated with the card. In this example, there is an annual fee of $150! There is also a $29 fee to open up the account, as well as a monthly "maintenance" fee of $6.50. Whew! That's a batch of fees. But wait! It gets better. Toward the underside of the document, buried in the mulct print, we see something called "Available Credit Limitations." In 8-point font (very tough to read on a computing machine silver screen or printed page), you are informed that your generous initial credit bounds will be a humongous $300. On your very first statement, you will be billed for the $150 annual fee, plus the $29 apparatus fee. The $6.50 monthly fees will begin appearing after you do your first purchase on the card.

Let's return a near expression at the mathematics here. It will cost you $179 up front, plus $78 per year, to obtain $300 worth of credit. Your sum cost for the first twelvemonth is $257, assuming you pay off the balance each calendar month and don't incur any regular interest charges. Sound like a good deal? Bashes it do any sense at all to pay $257 to obtain $300 worth of credit? That's 85.6% in effectual interest! If you maintain a running play balance of $300 on the card, and just do the minimum payments every month, your effectual interest rate will be 105.2% for the first year, and 95.5% for subsequent years. That's some pretty expensive credit! This credit card offer, while legal, still numbers as a sum rip-off.

As bad as the above sounds, it still only measure ups as "questionable" rather than being a full-on scam. There are much worse offers floating around out there. I've level seen some "deals" where the fees are so stiff you begin out above the credit bounds before receiving the card in the mail! In the fake class I'd also include cards where you are forced to pay an advance fee prior to receiving the "guaranteed" credit card, which of course of study never arrives. There are also "catalog cards," where you supposedly construct credit by buying points through a card tied to one peculiar company and their catalogue of goods. The problem is that the catalogues usually dwell of grossly overpriced junk.

So what represents a good credit card offer for person who's experienced serious credit problems and desires to take action toward rebuilding his or her credit? At the hazard of bothersome the large credit card marketing companies who target the "sub-prime" market (consumers with bad credit histories), my advice is to completely avoid any offer that come ups to you unsolicited. Instead, make the research on your own. Check out for current offers by legitimate credit card companies. Shop and compare before you apply. Remember, the APR is only one facet of your decision, and not necessarily the most important. What you desire to look at very carefully are the annual fees, apparatus fees, and monthly fees.

It's important to recognize that you may not be able to obtain an unsecured credit card when you're just starting to reconstruct your credit. Instead of paying $257 to obtain $300 in credit, you'd be far better off placing $250 as a sedimentation toward a good SECURED credit card from a reputable major bank. In this real-world example, the annual fee is only $29, the APR is 19.99%, and there are no apparatus fees or monthly care charges. Your $250 sedimentation will sack you $250 worth of credit (less the $29 annual fee), and you'll construct positive credit history just as quickly as with the ridiculously expensive offer discussed above. Plus that original $250 sedimentation is still YOUR money. After you've been granted unsecured credit again, and you've paid off any outstanding balance on the secured card, you can get your sedimentation back.

One concluding tip. If you have got the chance to fall in a credit union, you should see checking out their offers for low-limit unsecured and secured credit cards. Credit unions frequently offer much better terms than regular commercial banks. Through credit unions, you can often happen credit cards with no annual fees, lower interest rates, and more than flexibility. Be sure, however, to confirm that the credit union reports account activity to the credit bureaus. Otherwise, your positive payment history on the new credit card won't raise your credit score. And remember, no matter what card offer you're considering, be certain to read that mulct print!

Saturday, August 09, 2008

Pointers on Credit History

Your Credit History:

Three simple words but words that determine your financial success. Your credit history has an influence that all lending institutions consider when assessing their level of risk when looking at your application for credit. Because of its importance it is vital that you know and understand what your credit report says about you.

Your Credit Report:

This is a document that shows your personal financial information, good and bad. Based on this information you are given a score called a FICO score. The higher the FICO score the better. All three major credit bureaus, Equifax, Experian, and Transunion, report this information. When you apply for any kind of credit, the lender will get a copy of your credit report from one of these three companies.

While this all sounds very technical, what it really means is that your credit score will influence all financial decisions about you in the future. For this reason it is vitally important that you read your report regularly and keep a record of it. Sometimes mistakes have been made on your report. By frequently checking your report you can find and resolve these errors before they can harm your credit application.

What Your Score Means For You:

It means everything! As mentioned above, your credit score influences decisions made by institutions considering your application for credit. If your credit score is less than perfect, your application may be turned down or you may have to pay a higher interest rate than someone with a higher score. Problems can remain on your report for as long as two years even after you think they have been resolved.

What Influences Your Score:

One of the main influences is your payment history. Have you paid your bills on time? Your score will be negatively affected if you are routinely late with payments.

Another factor is the size of your outstanding debt. This includes outstanding balance on loans as well as the credit limits on credit cards. If you have several credit cards, even if they have small balances, the possibility that you could theoretically charge these cards to the limit will negatively affect your credit score.

The length of your credit history is also considered. It may seem strange but not having a credit history can be a detriment. The fact that you have no debt means that you are an unknown quantity. The lender has no idea how you will actually handle credit.

Obtaining Your Report:

As of January, 2004, all credit bureaus are required by law to give you one free copy of your credit report each year. The credit report will list your debts and problems such as the number of payments late by over 30 days, etc. They can, however, charge you for the actual FICO score. Get on the phone or online to see what the policy is for each of the main credit reporting bureaus.

Restoring Credit Worthiness:

This topic will be covered in a subsequent article.

Wednesday, August 06, 2008

Rebuild Your Credit - Using a Savings Account?

Did you cognize that in improver to a good credit card, you can also utilize a nest egg account to set up or repair your credit? You can, and it’s easy! Follow these 5 simple stairway and you can reconstruct your credit for adjacent to nothing!

1. Open a Credit Union Savings Account
Call your local credit union state them you desire to open up a nest egg account. Depending on the credit union you may need as small as $25 to open up an account and between $300 to $500.00 to do this programme work. If you don’t have got enough cash yet, don’t wait. Open your account with the minimum demand and get to lodge as often as you can. Most credit unions necessitate a small amount ($5-$25) to stay untouched to maintain the account active. The residual will be used for this program.

2. Take out a Loan Secured by Your Savings
Once your account is unfastened and have the minimum available, take out a Secured Share Loan. This loan will be secured by your savings, and usually have a very low rate (avg 4-6%.) In most cases you can take any repayment terms you like. If you be after to purchase a home within the adjacent 90 days, take a 12 calendar month repayment. Why? Once you have got 10 calendar months or less left, most lenders will not number the payment against your debt load! Also, petition that the repayment to get right away so there is no hold in edifice your credit!

3. Deposit the Loan Funds back into Your Savings Account
Don't travel on a shopping spree! Rich Person the credit union sedimentation the loan finances directly back into the nest egg account. Remember, this is to construct your credit, not set you in debt! Now your account will demo dual the amount you placed in savings... For example: $500 for your nest egg (the secured amount), and $500 from your loan. This may also assist if you need to demo a mortgage lender further savings!

4. Set up Automatic Drafts from Savings to Pay Back Loan
Ask to have got the monthly payments for the loan drafted from your nest egg account. Now you are using the loan money to refund the existent loan, plus any interest. (For our $500 example, interest should cost you less than $25 a year!) Payments will be made on clip and without any worry! You may need to add just adequate money to cover the interest on the loan. One of the best characteristics of this programme is that if you ever need your $500 for an emergency, simply have got the loan completely paid off with the remaining loan finances in the nest egg and your initial sedimentation will be released... With no further debt!

Rebuild Your Credit... Using Your Savings!
Try to happen a credit union that reports to ALL three major credit bureaus... Equifax, Experian and TransUnion. You can utilize multiple credit unions if you need to... Just do certain that at least 2 bureaus get reported to or you are wasting your time. (2 scores will convey up the center score!)

Add to the premix the right credit card with a low balance and great payment history, then you will be on your manner to higher scores!

Monday, August 04, 2008

Getting Approved and Using a Bad Credit Credit Card

Many consumers search specifically for a bad credit credit card, merely for the interest of easy approval and getting their custody onto unsecured credit, without first trying to decide their bad credit issues and preventing additional damage to their credit score.

While there are plenty of bad credit credit card picks available, they can make more than injury than good if not used wisely, or if the card issuer makes not report timely payments to a credit bureau. Here are of import factors consumers should consider:

1) Make you really need a credit card? Credit cards do do life more convenient by not having to carry cash, and they can make trailing disbursals simpler. If the applicant's primary concern; however, is just to get unsecured credit (to do purchases when short of cash) versus the convenience factor, this should be a danger mark of the possible for accruing more than debt than tin be re-paid, or be re-paid timely.

2) How you used a credit card in the past? Consumers who were consistently late making payments or who did not frequently pay the balance in full every month, likely endure bad credit for that very ground alone. Living above one's agency often stops in financial disaster, and it's possible to delve a hole too large to get out of as late fees and interest charges accrue.

3) Can the credit card reconstruct bad credit? If used wisely, consumers who are diligently attempting to reconstruct credit can profit from a credit card. How you re-pay credit card charges are one of the largest credit report scoring factors. But not every credit card issuer reports to a major credit bureau. Applicants should get a credit card that reports to at least one major credit bureau, i.e. Trans Union, Equifax or Experian. Here's how to maximise the credit reporting benefit:

- Use your credit card. A strange distinctive feature amongst creditors, is that they see unfastened lines of credit as possible debt. If; for example, you have got a credit card with a $5,000 bounds and it have no charges on it, it is viewed as a possible debt in that amount. Hence, if you have got got any other credit cards which have no balance and the issuers make not report timely payments to credit bureaus, it may be best to fold those accounts. Simply not using the card makes not fold the account. You must reach the issuer and stopping point the card account.

- Don't utilize your credit card simply for the interest of being able to do purchases during cash shortages. Use your card instead of the cash you budget for disbursals such as as your weekly grocery store shopping, and usage those finances to re-pay the charges.

4) Finally, when seeking a bad credit credit card, apply for one that may restrict your possible for accruing debt. Instead of a $5,000 credit line, see a credit card with lone a $2,000 credit line. Because of your bad credit, you may discover that a higher credit bounds bad credit credit card may also charge a higher interest rate because of the increased hazard to the issuer. If you just need impermanent credit; such as as during Christmas, see a retail or shopping card that reports timely payments to a credit bureau. Since retail and shopping cards bounds purchases to a peculiar shop or catalog, this tin aid kerb desires to travel on holiday disbursement sprees.

Friday, August 01, 2008

Small Business Credit Cards Advantages

A batch of people associate credit cards with just personal credit card which an individual posses and usages for shopping etc. However, there is another class of credit cards and that is called small business credit cards. As suggested by the name itself, the small business credit cards are meant for small businesses or people running small businesses.

So how makes the small business credit card differ from the other credit cards in general?

The very obvious difference is that small business credit cards have got the credit account in the name of the small business and not any individual, though the benefits indirectly accrue to the business owner. The other difference is with the terms and statuses that come up with the small business credit cards. Finally, there are some elusive benefits with small business credit cards which would not be applicable to personal credit cards. Let’s check all these things 1 by one.

We cognize that the credit cards supply a batch of convenience and security for an individual and a batch of other benefits too. Most of the benefits related to personal credit cards apply here too. What is interesting here is the indirect benefits that result from using a small business credit card.

The indirect benefits associated with small business credit cards are so great that it do them almost indispensable. The most of import benefit is that you can easily segregate your business and personal expenses. So if you have got been cachexia a batch of clip keeping path of your business measures and trying to maintain them separate from personal bills, small business credit cards could help. You just need to guarantee that you always do all your business payments using your small business credit card. When the credit card measure come ups at the calendar month end, you will have got itemized account of all the business disbursals as a single document. Thus small business cards reduce (and in some cases completely remove) the need for clerking for a small business. The credit card company makes that for you for free, although indirectly.

Another of import benefit come ups from rolling credit. If you have got to pay for your purchases upfront and still invoice your clients later (a state of affairs faced very often with small businesses), you can revolve the credit, you are providing your client with, to your credit card. Moreover, since these purchases are mostly urgent, arranging for money immediately can sometimes be a problem. In such as cases, the small business credit card is the 1 which can bail you out. Well, if you are thinking that your personal credit card could make the same for you, you are a spot off the path on two fronts. Firstly, you desire to maintain your business disbursals separate from your personal disbursals and secondly, the APR on business cards is generally lower as compared to personal credit cards. A batch of the small business credit cards don’t necessitate you to pay an annual fee even.

So if you run a small business but haven’t got a small business credit card yet, it’s about clip that you considered this fantastic option.