How To Get A Great Credit Card With Bad Creditby Max Hunter
Credit Cards For Consumers with Poor Credit Ratings
Ever wondered how and why you can go online and be approved for credit within seconds? Or receive a pre-qualified loan or credit card without anyone asking how much money you make? Or why one interest rate is made available to your neighbor and another to you?
The answer is credit scoring, a term more and more Americans are learning about, but still often misunderstand. Your credit score is a number generated by a mathematical formula based on information in your credit report. This information is compared to information on tens of millions of other people and the resultant number is a highly accurate prediction of how likely you are to pay your bills.
Credit scores are used all the time, and if you've applied for a mortgage, a credit card or even a mobile phone the rate you received was probably directly related to your credit score. People with the highest scores get the lowest interest rates: The higher the number, the better you look to lenders.
Scores range between 350 and 800 and most people have ratings that range between 600 and 800. A score of 720 or higher is the equivalent to a grade A - and will allow you to get the most favorable interest rates from a borrower.
Unfortunately those at the lower end of the scale constitute a greater risk in the minds of lenders and are charged a higher rate of interest. It seems wholly unfair: the rich get charged less; and those most in need of credit more. But the way lenders see it, borrowers with lower credit scores are charged more to offset the risk to their investment.
Perhaps because of this, the idea of having a lower credit score carries a kind of stigma in some minds. But if you have a poor credit rating don't worry - you're certainly not alone. People with a poor credit rating number in the tens of millions. In fact a recent survey revealed that nearly one in seven Americans have credit scores below 600; and a further one in ten rate between 600-650.
Having a bad credit rating is nothing to be ashamed of and can happen to anyone. Given time, patience and some work a bad credit rating can be changed for the better, meaning better rates for you.
There are many different ways you can go about getting a new credit card when your score isn't entirely up to scratch. Nevertheless, the first and most important thing to understand before you borrow any money is this: You must have sufficient income to pay your current bills and overheads PLUS your credit card repayment.
If you're sure you're ready for that sort of commitment, the secret behind successfully applying for a credit card is simple. Lenders love stability. The more routine you have in your life, the better the chances of them lending you money with a credit card, and the better the terms of the deal.
No one is going to take a chance on you if you don't have a steady and sufficient income. Most lenders want to see you at your current job for at least a year or more. The longer you work for the same employer the better the chances of you getting financed. Working in an industry where a certain amount of routine is par for the course is ideal. Think teaching, law or medicine. Lenders love doctors, lawyers and teachers because of the stability their jobs provide.
Credit card companies don't like nomads. Ideally, they will want to see you at your current address for a year or more. Naturally, the longer at the same address the better.
If your credit is borderline, or if you simply have no credit you might have someone who is willing to act as the primary card-holder and have you as an additional name on the account. Of course, this person must have a good credit rating and meet the lender's credit-scoring criteria. But this can work well to give you a foot in the marketplace. If you're an immigrant, but have followed a relative who has been in America for a few years longer, this can be a good strategy to help to start to build up a credit history. Once you're 'in' the system, you're underway.
Chances are, unfortunately, that if you do get a credit card with a low credit score, you won't see a low interest rate. Merely paying off the minimum balance each month is also the most expensive way of borrowing money and will cost you a good deal of money over the length of the repayment. Aim to use your credit card for short term debt, and pay back the amount in full whenever you can. Some lenders will also put a low credit limit on your account - which is not always a bad thing.
Don't be put off by any of this. If you take the long-term view, as far as your credit rating goes, borrowing money with a credit card and meeting the repayment deadlines will push it ever further up. You might not get the best lending terms first time around, but if you can prove that you're a good borrower, you can expect a higher credit rating and more favorable terms on your credit card next time around.
About the Author
Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any other type of credit issue please visit us at http://www.creditcardunlimited.com Why Does A Credit Card Expire And How Do You Renew It? by Keith Baxter
Besides the long string of numbers that identify your account, there is a short little series of numbers that makes up your card's expiration date. Most of us don't even pay any attention to that date, but you can bet that the credit card approval network knows exactly when your card expires, and for good reason. Actually, there are several reasons, so let's take a look.
Top Reasons Why a Credit Card Has an Expiration Date
One of the most simple and uncomplicated reasons the credit card will expire is that the magnetic strip will not last forever. Although the plastic card itself is virtually indestructible, the magnetic strip is a little touchier and will eventually wear out. When that happens your card will no longer be readable by credit card terminals and ATMs.
Some institutions use an expiration date as a way of reconnecting with the cardholder. It gives the company and the user the opportunity to get together and discuss any issues or complaints that the customer may have. It also allows the card company to appear to care about you as a customer. They will send you a friendly reminder, kindly offering you the chance to renew with your same comfortable company. With all the competition out there, comfort and history can go a long way in keeping customers.
Cardholder security is another reason. This allows the company to check up on you and make sure you are who you say you are and nothing has changed. With identity theft being what it is today, this is a good thing. Some people have had credit cards opened in their names without their knowledge and charges have been made. If the card expires, the company will contact you and possibly warn you about current fraud trends.
The company may use the expiration date as a way to remind you they are there. For people who don't use their cards very often, this can be a gentle reminder of just what's in their wallet and, hopefully, remind you to use it.
Nearing The Expiration Date
It is actually quite easy to renew your card. About a month before your current card actually expires, a new one will suddenly appear in the mail to replace your expired one. This is great if you're in town. If you are going to be traveling, check your card before you go. If it will expire before you get back, call ahead and get your new one before you leave.
Once you have your new card, read the material that came with it. This may very well include a list of new and improved terms. If you find these terms to be new, but not improved, contact the card company. Do not use the card until you have received verification that the terms have been changed to your approval. If they refuse, you can always cancel the card. Trust me, it won't take long to find a replacement.
About the Author
Keith Baxter made it his mission after college to educate as many people as possible to the advantages and disadvantages of credit through a widespread re-education initiative. You can find out more about Keith and what he's up to at http://www.credit-card-debt-consolidation.net.
Credit Card Lingo
by Max Hunter
Knowing What's Out There - And What To Choose
The World of finance can be a tricky game for both the seasoned veteran and the novice borrower. Banks can - by accident or design - make even the most simple information seem complicated and through this unwittingly (or not) induce their customers to go for products that might not be best suited to their needs.
Credit, charge, ATM and debit cards are not all alike. Although you might think that they are basically the same thing - a way of making payment for purchases or means of getting cash - they are actually quite different. So as to use these cards wisely, you should know what each one is and how it differs from the others. Here's some information to help you choose wisely.
Credit Cards
Credit cards can be a great way of paying for a purchase. They are easy to apply for, easy to use, and flexible in their repayment options. However, if you carry a balance, credit cards can be like very expensive loans.
A credit card works like this: the credit card company supplies you with a card; you use that card to pay for items and services up to a certain total amount -- your credit 'limit.' The store or service provider then collects what you owe from the card issuer, whom you repay. You're then allowed to pay off as much or almost as little as you like off the balance each month, so long as you pay a minimum amount each time (usually 2.5 per cent).
On the outstanding balance you're charged interest (which can be as high as 25% or more each year) at the end of each monthly period, unless you pay the full balance each time your bill arrives.
Credit cards are immensely profitable for issuers for a variety of reasons. The high rate of interest yields issuing banks and companies vast profits - in some cases the bulk of an institution's earnings. In addition to the interest, many companies charge an annual membership fee for a credit card, as well as a plethora of other charges, including late fees, over-the-limit fees and other miscellaneous charges. Companies also profit by charging stores a fee each time a customer uses a credit card in their establishment.
There are three different types of credit card available:
Unsecured Credit Cards
These cards are commonly made available to those with good credit history and credit score. These cards require no bank deposit amounts to secure and usually have no annual fees and low rate of interest.
Higher Risk Credit Cards
These cards are usually given to people who have a lower paying job, and/or poor credit history and credit score. Often these cards charge an activation fee, and also usually charge an annual fee of up to $80.
Secured Credit Cards
These cards are given to people who have a lower paying job, and/or a very poor credit history and credit score. Often these cards require a deposit to be made to the lender, sometimes as much as near or equal to the amount of credit available on the card. If the borrower can prove their credit worthiness over time, that credit limit is then upped. These cards also attract a high annual fee of up to $100 and charge high rates of interest.
Charge Cards
Charge cards (also known as travel and entertainment cards) are slightly from credit cards. The most famous charge cards, such as American Express and Diners Club, have an unlimited credit limit. Normally you can charge as much as you like, but you are required to pay off your balance in full when your bill arrives.
There's one exception to this: If you charge air fare, cruise fees or hotel charges booked through a travel agent on an American Express card, you have an option to pay off your balance over 36 months. There's a sting in the tail, however: you'll be charged around 20 per cent interest and will have to make minimum monthly payments of $20.
The way charge card companies like American Express make their profits is by charging very high annual fees - up to $100 - and by hitting merchants with relatively high charges each time a customer pays using their card.
If you don't pay your charge card bill in full (unless the charges are travel expenses on an American Express card), you'll get a one-month period of grace, when no interest is charged. Beyond that, however, you'll be charged interest, which weighs in at about 18 per cent. After about three months, if your account is still not settled, your account will be closed and your bill sent to the collections department.
Cash Advances
Some people use their credit or charge cards to obtain cash advances. This can be an expensive way of accessing cash. Most banks charge a transaction fee that can be as much as 4% for taking a cash advance. Interest is also charged from the date the cash advance is posted, even if it's paid back in full when your bill arrives. Moreover, the interest rate is usually higher on cash advances than on ordinary credit card charges.
ATM & Debit Cards
ATM and debit cards offer most of the same functions as credit and charge cards, but the crucial difference is that the money comes out of your bank account straight away. If you don't have the money, you can't buy the product.
For some people this is a preferable option: they like to keep track of their outgoings, to keep tabs on what they've spent, to avoid any sort of debt - no matter how brief.
There are disadvantages to using debit cards. It doesn't give you the option of up to a month to settle your statement. You also don't have the right to withhold payment with a debit card (the money is immediately removed from the account) in the event of a dispute with the merchant over the goods or services paid for. Some banks and merchants also charge transaction fees for the use of debit cards.
About the Author
Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any other type of credit issue please visit us at http://www.creditcardunlimited.com
Making A Credit Card Work For You
by Max Hunter
Boosting Your Credit-Rating With A Well-Managed Credit Card
A considerable obstacle standing between many Americans and the consumer goods they consider a necessary or desirable part of life is a ready way to pay for them. From a new piece of furniture to a car or even a house an age old problem stands in their way: MONEY - or rather how to get hold of it.
A lucky few earn enough to never have to worry about this problem. Many more consumers have lenders simply falling over themselves with offers of credit. For a lot of people, however, a poor credit history or a low credit rating stands as an inexorable difference between living the life they want, and looking with perpetual envy at their neighbor. Even relatively low cost essentials, such as a vacuum cleaner or television set, can be too expensive if a way of spreading the initial cost is not available.
But it doesn't have to be that way. Credit is available for those with a lower credit scores, but better still: Borrowing even relatively small amounts can be a great way for borrowers with a "chequered past" to improve their credit rating. A better credit score can lead to an array of greater awards in the future, including better APR deals and larger credit lines. If you have a poor credit rating and dreams of one day buying a house, a credit card is the first logical step to pulling up your record and getting a mortgage.
Making regular monthly payments to an agreed timescale on a credit card is - short of scooping a massive inheritance from a long lost millionaire aunt - one of the single best ways to improve your credit score. So long as you don't take on more debt than you can afford, credit cars are ideal: payments are reasonably sized and flexible, and if you budget properly can be structured towards an ultimate payoff
Moreover, you have to be wise to how credit card companies work. Credit cards are designed by financial institutions as a way to keep you making minimum payments for years to come - and enslaved to large interest payments from which they make many of their profits. Borrow only what you can, and pay back the debt as quickly as possible.
Of course, even when dealing with the very best lenders, trying to secure credit card financing with a lower credit rating does throw up some problems.
Financial institutions will usually insist on a higher interest rate and sometimes may even ask for a guarantor. The interest rate can be up to three times what a good credit borrower would be offered, although in these days of low interest rates, that need not be prohibitively expensive.
Always try and walk before you run. If you have a high interest rate on your credit card, borrow sparingly and pay back quickly. That way you'll build up your credit score and be able to get cheaper APR in the future, making larger purchases then far cheaper over the fullness of time. If you make a large purchase at a high interest rate and can only pay back the minimum payment each month, with interest charges you could be paying as little as just one of half of a percent of the existing balance each month.
Always keep you balance under control. It can be easy to let your credit card spending run in excess of what you had planned. If you have concerns that you might do so, ask the lender to impose an easily manageable credit limit. That way you won't spend a dime more than you can afford. The worst time to gain unmanageable balance is when interest rates are at their highest. Do that and it can seem like a lifetime before you get things back under control.
High-risk borrowers should always exercise extreme caution before entering into any financial obligation. Before even thinking about taking on any new financial obligation, consider your budget and ask yourself how much - if anything - you can afford. If you decide that you can, you should still be careful about choosing the right deal.
However, if you can get a credit card that you can manage well, the benefits are enormous. It will enable you to spread the cost of larger purchases over manageable periods of time; you can fill holes in your budget (that are so common in the run up to pay day); and build up a credit history that will enable you to get better APR on borrowings and allow you to borrow money for larger items.
An auto loan or mortgage may seem a distant dream for many Americans with poor credit histories, but everybody has to start off somewhere. Get a credit card, manage it well, and you'll soon get to where you want.
About the Author
Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any other type of credit issue please visit us at http://www.creditcardunlimited.com
Why You Should Refinance Your Credit Card
by Max Hunter
Getting the Right Rate Can Save YOU Thousands
A credit card debt can be like the worst sort of trap. Like a wound that won't heal, a monthly minimum payment - with ceaseless regularity and endless strain on your budget - leaves your account. It's to pay for the Christmas shopping, or the last July 4th party, or your holiday two years ago. You don't know; frankly you care less - you just want to see it gone. But when your next statement arrives, the hole your minimum payment should have burned in your debt is no smaller - the sore remains unclosed.
Is this situation familiar? Is it you?
If it is, you've not heard the worst of it yet. The way that credit card companies exist and thrive is by exploiting your debt burden. They'll lend and lend and lend, until you get to the point that the most you can pay back each month is the minimum payment - usually around 2.5 per cent of the balance. The problem with this is that they hit you with a load of interest, sometimes amounting to 2 per cent of the balance. If only one half of a per cent is being paid back it doesn't take much math to figure out the amount of time it could take you to pay back your debts.
In fact, if you're paying repayment insurance, in some instances you can pay back less than the amount of debt accumulating.
It's a horrible, self-perpetuating cycle of hemorrhaging money, but the good news is twofold.
First off, you're not alone. Thousands upon thousands of decent, hard-working Americans are in this position through no fault of their own but necessity and the demands of modern living.
Secondly, if you're stuck in this horrible cycle of bleeding money, the chances are that it can be at least partially redressed. Many Americans have - and still do - unwittingly signed up to credit card deals that are uncompetitive, over-priced and unnecessarily expensive. What many don't realize, is that simply because you have pledged allegiance to a particular credit card company doesn't mean to say that you are stuck with them for life. There's a way out that can save you hundreds, if not thousands of dollars a year and help you pay off your debt burden more quickly.
Transferring the balance of your credit card to another one is a way of paying off your existing debt with a new credit card that you take on at a cheaper rate. In many cases this can be set at 0 per cent for a period of a number of months, before reverting to a higher rate. By switching to such a card - and then another at the end of the interest free term, and maybe even another after that, it gives you a clear run at reducing your debt, without it spiraling ever further upwards. Even if you're still only paying 2.5 per cent off the balance a month, far better to do that than knocking off one half of a per cent, or less.
By bundling up the old expensive credit card debt, getting rid of it, then paying back the new credit card at a lower rate, you can save countless dollars each month. You can save even more money by paying a bit more each month, thus clearing the debt in a shorter time. By doing this you'll free up more dollars further down the line enabling you to spend them on something really nice.
Unfortunately, 0% deals are not always available to all customers. If you've got a credit rating that's in some way below scratch, it is probably unlikely that a 0% credit card will be made available to you. It's a sad fact of finance that the best deals seem to always be available for those who need them the least.
That said, there are a number of other excellent credit cards on the market through which you can save many dollars. Even if a balance transfer rate is as high as 10 or 12 per cent, if you're paying upwards of 20 per cent on your existing deal then you're clearly going to save a stack of money - even if it's not as much as you might have liked.
If you're concerned about how much you're paying each month on your credit card repayment it certainly pays to check out your existing interest rates and compare them to some of the balance transfer rates available at competitors: it's almost a certainty that you'll save yourself more than a few dollars.
Even if you're not worried about your existing credit card deal, it's worth checking out the market to see if you can get a better deal. Complacency doesn't pay, but a bit of awareness can save you a lot.
About the Author
Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any other type of credit issue please visit us at http://www.creditcardunlimited.com
Boosting Your Credit Score To Get The Best Credit Card Deal
by Max Hunter
Making Your Credit Rating Work For You
One of the basics of getting the most competitive credit card deal in the market is to ensure you have the best credit record possible. Few of us are lucky enough to be earning a six-figure salary, and many people are likely to have other financial undertakings that a potential lender will want to take into account. None of this, however, should preclude you from getting a top bracket credit rating. Getting a credit score of 700+ may be beyond some consumers, but lifting your credit rating to a point at which lenders will furnish you with some of their best deals is not an insurmountable task.
It can be a stressful time applying for a new line of credit. Many consumers get upset when applying for a new credit card when they find out their credit score is low, and they have poor credit.
A lower credit score can impact the amount of money that financial institutions will lend you. It can also impact on the rate of interest at which you borrow. In some cases, the difference between having an excellent credit rating and a poor one could be getting a 0% deal on your credit card, and paying an APR that touches 30%. Sometimes financial institutions won't even lend you a dime, based on a low credit score.
A variety of factors can impact on your credit score. Generally speaking, lenders love stability more than anything else. Paying amounts owed on time is but one of many variables. It could be that you've lived in more than one address over the preceding three years; or having borrowings with a variety of institutions. It could even be down to the fact that you've got too much credit already at your disposal.
But just what goes into your credit score? A report by the analytics experts Fair Issac recently broke credit scoring down into five categories and assessed their importance on the final rating.
Most important was how you had paid you bills in the past with the most emphasis on recent activity. Naturally, paying all your bills on time is good; paying them consistently late is bad. Having accounts that were sent to collection agencies is even worse, though nowhere near as bad as declaring bankruptcy. Paying your bills in a timely and consistent manner contributed to 35 percent of the score.
Next most important was the amount of money you owe and the amount of available credit at your disposal. The assessment of outstanding debt fell into several categories, and included credit cards, car loans, mortgages, home equity lines, and so on. Also given consideration was the total amount of credit available. If a customer has 10 credit cards that each have $10,000 credit limits, that totals $100,000 of available credit. Generally speaking, people who have a lot of credit available tend to use it. This makes them a less attractive credit risk. This amounts to 30 per cent of the total credit score.
Also impacting on credit scores is the length of credit history (15 percent). The longer a customer has had credit - particularly if it's with the same financial institution - the more points they get.
The mix of credit contributes 10 percent to the credit score. Customers with the best scores have a mix of both revolving credit, such as credit cards, and installment credit, such as mortgages and car loans. Statistically, consumers with a richer variety of experiences are better credit risks. As far as banks and credit card companies are concerned, they know how to handle money.
The last important factor taken into consideration is new credit applications (10 percent). If you've applied for several lines of credit in the past few months this will negatively impact your credit score.
The antidotes to this are simple. Pay your bills in a timely manner, particularly in the months leading up to an application. Close unused retail store cards, credit cards and old bank accounts with overdraft facilities. Maintain long-standing and healthy arrangements with banks and other lenders. Don't apply for a stack of credit cards, loans and so on, unless you're absolutely sure it's the right product for you. It goes without saying that you shouldn't apply for a credit line unless you use it.
There's a sixth factor that can contribute enormously to a negative credit rating. In 2001 it became possible for customers to get their own credit score in exchange for a small fee. In the past, prospective lenders were able to keep this score hidden, and many unscrupulous institutions used this knowledge to charge a higher APR on credit. By being aware of your credit score lenders can't lie and say your score was low and charge higher APR on your credit card.
More importantly, it's vital that you get rid of black marks on your credit rating. Errors unfortunately happen all the time, and erroneous reports of missed payments, referrals to debt collectors and even bankruptcies can scupper your chances of getting a low rate of interest and even a credit card altogether. Query everything and haggle with credit reference agencies so that only the information that is listed on your credit history that should be there, is there.
You can find out your credit history by applying to one of several companies. Many offer an online service and can furnish you with the information both quickly and cheaply. Equifax, Truecredit and Consumerinfo are some of the best such providers.
Patience is the key to getting a great credit score - and the best credit deals. You're never going to make the jump from having a credit score of 500 to one of 700 overnight, but by implementing easy to follow and practical strategies, you can quite easily leverage your credit score to a rating that is respected by all concerned.
About the Author
Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any other type of credit issue please visit us at http://www.creditcardunlimited.com
Five Simple Steps to Significant Savings
by Rhiannon Williamson
We all know that we should be putting aside an amount of money each month and saving towards our futures - right?
Well, if you're anything like I used to be you get to the end of the month and the cupboard - or the bank account in this case - is bare…if you're lucky you just have enough to meet your monthly bills but you certainly don't have anything left to play with.
Well - what if I told you that there were five very simple steps that you - yes you - could take to cut your monthly outgoings, increase your monthly income and thus free up money and create an amount each month that could be squirreled away for a rainy day?
Step One - Trim Everyday Expenses
We all have a mountain of essential payments that we must make every month; these include all our utility bills, our car, telephone, internet and even cable TV bills.
Although we're all aware of these amounts draining our bank account every month, few of us give a second thought to whether we're paying too much when often we actually are!
So, here are just a few things you could easily do to wipe off significant amounts from those bills - amounts which will, over time, compound to create a nice tidy little sum thank you!
Oh, and if you think about every bill you have I'm sure you'll come up with many creative ways to reduce all of them.
Your Utility bills - have you considered switching your suppliers? Some suppliers in your area will be cheaper than others and all should give you a free quotation of how much you could be saving based on your previous month's usage. You may get a further discount if you pay each month by direct debit.
Be aware of the amount of energy you use - switch to energy saver light bulbs, don't put half a load of washing in the machine, wash-up small amounts instead of using your dishwasher every time and slowly but surely you'll notice a significant reduction in your overall bills.
Your Car - shop around for cheaper car insurance, combine chores into one journey so that you drop the kids off on your way to work and do your shopping on the way home. The more 'extra' journeys you can cut back on the lower your fuel bill, the less often you'll have to have your car serviced and the lower the mileage on the car when you come to sell it.
Step Two - Cut Interest Payments
According to industry statistics, the average home owner in the UK could reduce their annual mortgage payments by up to £1,600 by just re-mortgaging to a better deal. You need to examine the options available to you!
Next look at your credit cards, store cards, loans and overdrafts and check out the rates of interest you're paying - obviously the sooner you can pay off all debt and stop accruing new debt the better, but in the meantime you should consider switching to credit cards offering 0% on balance transfers, consider switching to lenders offering lower interest rates on loans and consider switching to a bank with lower account charges for things like your overdraft.
Cut your interest payments right down and free up more cash!
Step Three - Rein in Extravagance
Trust me, I know that this is the least popular of all the steps - but, do you really need that daily cappuccino from Starbucks, could you live without that health club membership that you hardly ever use, what about stopping smoking, cutting back on alcohol consumption and spending a few more quiet nights in than party nights out? If you can't get rid of your satellite or cable TV could you reduce the packages you subscribe to? If you like to eat out could you reduce the number of times you do it per week?
Don't worry, I'm not suggesting that you should give up living your life the way you like it, I'm just suggesting that you could maybe trim a little off the load and live life today whilst at the same time saving for your life tomorrow.
Step Four - Stop Making Bad Investments
There are so many poor performing, rubbish returning, invisible interest paying savings policies out there that banks and financial advisers push upon us that it's just not funny!
Yet at the same time there are some fantastic inflation proofing safer alternatives that could just net you a nice rate of interest too. You need to look around a little, use the internet as a good starting point and find out what the banks and financial institutions are offering. And if you're saving money make sure you're saving tax too - ISA and pension payments can be made tax free!
Oh, and when it comes to insurances - from car, health, home contents and even life insurance - shop around, shop around, shop around! Big name brokers often cost far more and if you buy your home contents and life insurance all in when you get your mortgage be prepared to pay way over the odds!
Step Five - Add Income Strings to Your Bow
Are you entitled to any tax credits, child payments or other benefits? If you're entitled you should be claiming what's rightfully yours! Could you, your partner or your teenage children be contributing a little more to the monthly pot by taking on a part time job, doing extra shifts or working the odd weekend?
Think as creatively as possible and make good use of any extra time and energy you have to boost your family's income…you might even be able to earn extra income from doing the things you love - maybe you could teach an evening class in something you specialize in, maybe you could sell arts and crafts you make as a hobby or perhaps you could just baby-sit your friends children?
Just remember that there are many options available to you and that every single step you take towards reducing your outgoings or maximizing your income will be a step towards a more secure financial future for you and your family.
Good luck!
About the Author
Rhiannon Williamson is a freelance writer whose many articles about international and offshore savings and investments have appeared in financial publications around the world. Visit this link to read her latest articles about offshore investment http://www.shelteroffshore.com/
Credit Protection Insurance -- Just Another Consumer Rip-Off
by Charles Phelan
Credit protection insurance is a good example of a consumer rip-off that affects millions of people, yet receives little attention in the financial media. Simply stated, you should NEVER buy "credit protection insurance," or a "payment protection plan" or any other similar type of credit-related insurance. Let's take a look at how these programs work and why they are a bad deal for the average consumer.
First, let's dispense with the scam version of this insurance. With identity theft in the news so much lately, con artists have set up telemarketing boiler rooms to call people and try to scare them into buying worthless credit insurance products. Representatives will try to convince you that you're at risk if someone gets hold of your card and starts making fraudulent purchases in your name. When they call, they may even pretend to be from the "security department" of your bank. In fact, they may actually be part of an identify theft ring, with the goal of getting you to disclose personal information over the phone. Or they may simply be trying to make a fast buck by selling you an insurance policy that you absolutely don't need.
Under Federal law, you are limited to a maximum of $50 liability for unauthorized use of your credit card. If you didn't authorize a charge, don't pay it! Follow your credit card bank's procedure for disputing bogus charges. You simply don't need insurance to protect yourself from a situation that is already covered by Federal law!
Now, what about those "payment protection plans" offered directly by the big credit card banks? These are plans that promise to cover your minimum monthly payments for an extended period of time (usually 12-24 months) if you get laid off from your job, become hospitalized due to an accident or illness, or become disabled. On the surface, a plan like this sounds like a pretty good idea. After all, how could you keep up with your payments if you suddenly lost your job or became too ill to work?
Of course, you should not be carrying balances on your credit cards anyway. If everyone paid their balances in full every month, then credit protection insurance would not even exist in its current form. You are charged for the insurance based on the amount of debt you're carrying on the card, so if the balance is zero, then there is no fee. In fact, some bank representatives use this as part of the sales pitch when trying to entice people to sign up for that "free 3-month trial" on their payment protection plan! They attempt to talk you into adding the insurance now, while you don't need it and when there is no cost, in the hope that one day you will start carrying a balance. By then, you'll probably have forgotten you signed up, and you'll wonder what those mysterious charges are on your statement every month.
If you do carry balances on your cards, credit protection insurance is still a very bad deal. To see why, let's look at the math here. A typical loss protection plan costs 85 cents for every $100 of balance carried on the card. So if you're carrying a debt of $5,000 on the credit card, it will cost you $42.50 per month to buy the insurance. Over the course of 12 months, you will spend $510 under this scenario. That's equivalent to paying an extra 10% in annual interest!
A light bulb should be shining over your head right about now. Why not take that same $42.50 per month and use it to pay down the balance faster? Good question. When you consider that most consumers who have credit protection carry it year after year, without ever becoming eligible for a claim against the insurance policy, the amount of wasted money can add up to a truly staggering sum.
Continuing with our $5,000 example, with a typical minimum payment of $125/month, it will take more than 26 years to pay off the balance in full, at a cost of $7,115.42 in interest. By applying that extra $42.50 per month that would otherwise go toward the insurance, for a total monthly payment of $167.50, you'll have the debt paid off in only 40 months! And you'll have saved $5,435.22 in interest charges. It simply makes no sense to waste this money , especially when you consider that the credit protection plan is normally only good for 12-24 months anyway.
There's another important factor involved here. Credit protection is also a bad deal because the eligibility requirements are so very restrictive. When you read the fine print, you'll realize that there are all kinds of situations that aren't covered. Let's say, for example, that you've been fighting a medical condition for some time. So you buy the insurance thinking it's a good idea. Eventually, you end up in the hospital for treatment and recovery. Can you breathe a little easier knowing your credit card payments are covered? Nope. Most of these policies have exclusions for pre-existing conditions. And there are numerous other loopholes that allow the bank to deny your claim under the policy. In view of the lousy math and the restrictive nature of this type of insurance, these programs should really be named "bank profit protection" instead of "credit protection insurance." Instead of spending good money on an insurance plan that you will probably never use, you're far better off applying that same amount toward paying off the debt early.
About the Author
Charles J. Phelan has been helping people become debt-free without bankruptcy since 1997. A former executive in the debt settlement industry, he teaches the do-it-yourself method of debt negotiation. Audio-CD material plus expert personal coaching helps consumers achieve professional results at a fraction of the cost. http://www.zipdebt.com
Can You Acquire Good Credit Overnight? You Bet.
by Omar M. Omar
Your credit file may not reflect all your credit accounts. Although most national department store and all-purpose bank credit card accounts will be included in your file, not all creditors supply information to credit bureaus : Some travel, entertainment, gasoline card companies, local retailers, and credit unions are among those creditors that don't. If you've been told that you were denied credit because of an "insufficient credit file" or "no credit file" and you have accounts with creditors that don't appear in your credit file, ask the credit reporting agency to add this information to future reports. Although they are not required to do so, many credit bureaus will add verifiable accounts for a fee. However, understand that if these creditors do not report to the credit bureau on a regular basis, the added items will not be updated in your file. Sample Letter to Add Positive Information to Your Credit Record
Date Credit Bureau Name Address City, State Zip To Whom It May concern : After reviewing my recent credit report from your company, I noted that my credit report does not include information that I know is important to providing a complete picture of me as a credit using consumer. Therefore, I request that you add the following account information on my credit file. Creditor : Address : Account Type : Date Opened : Credit Limit : Balance : ( If it's an open account ) If there is any fee for this service or for any additional information you might need from me, you can reach me at ( your phone number ). Thank you in advance for your unparalleled assistance.
Sincerely, your signature Your Name Address Social Security Number Date Of Birth For Example : Suppose you had bought a used car from a used car lot 4 years ago. And the cost for your used car was $8000.00, which you have paid off in 2 years. If you can show on your credit report the auto loan you've paid off, that can dramatically change your credit report. Therefore, what you can do is contact the your used car dealership and demand for your account to be reported. Or you can request a copy of your auto loan payment history to be mailed to you so you can mail it yourself to the credit bureaus. It's important to ask yourself why a certain account was not reported on your credit report.
In most cases small businesses avoid reporting to credit bureaus because it cost businesses money to report your payment history to credit bureaus every month. To put it simply, every business who wants to report their clients account payment history will have to subscribe to these credit bureaus and the subscription cost the business money. © Copyright - www.deleteuglyredit.com
About the Author
Omar M. Omar is the owner of http://www.deleteuglycredit.com and - Author of "The Credit Repair Bible" book. The website is dedicated to providing credit consumers free advice on how to repair credit. It also provides credit consumers numerous information about their credit report, credit laws, and their rights as a consumer.
Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards
by David Hall
Secured Credit Card is similar to a prepaid credit card since the funds you are using are actually yours and not the issuer of the credit card. Generally people who apply for secured credit card or prepaid credit card are people with poor credit or unemployed. Prepaid Credit Card spending limit is the amount of money you loaded to the card. There are no interest or finance charges on a prepaid card. With secured credit card, your credit line could be from 50% to 100% of your deposit depending on the institution giving you the secured credit. Therefore the company giving you the secured credit card has zero risk.
Secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers' payment history to any of the three main credit bureaus namely Experian, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.
Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in rebuilding your credit rating. Additionally, even though secured credit is like prepaid cards, they do have certain fees attached. Benefits are similar to that of an unsecured credit card, such as usually being paid interest on your balance in the bank, using Automated Teller Machines (ATM) to make deposits, withdrawals, and making purchases at participating merchants. Following the above steps will strengthen your credit rating.
Unsecured Credit Cards are issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one's ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.
Customers should read the credit agreement to ensure that they understand their obligation to the creditor. Making payments on time will strengthen your credit rating. Unsecured credit cards has numerous advantages such as low interest rates, high credit limit, business name options, no annual fees, and low APRs on balance transfers up to 12 months. Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in maintaining a good credit rating.
Rebuilding your credit takes time, patience, and consistency. If you consistently pay your bills on time, you will see an improvement in your credit ratings over time. There are no quick fixes for improving your credit report except for mistakes or inaccuracies that can be corrected, hopefully in your favor. Your credit information is maintained by the credit bureaus namely Experience, Equifax, and Trans Union for seven years. Therefore poor credit information will remain on your report for seven years. The good thing is that as negative information disappears with positive information, this will definitely rebuild your credit rating.
Applying for secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history, and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers' payment history to any of the three main credit bureaus namely Experience, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.
Business Credit Card
Business credit cards are very popular for small business owners because of the many benefits they offer. Benefits includes 0% Intro APR on balance transfers, no annual fees, high credit limit, low interest rates, cash rewards, bonus miles, free online account management to choosing card design etc., At iCreditOnline.com we have some of the best business credit cards from American Express, Advantage, Chase, Bank One, Bank of America, Discover, Citibank, Household Bank and more, with online credit card approval. Why waste time going to a bank when you can get a decision in less than 60 seconds with secure online credit card application. Online Credit Card Approval with Online Credit Card Application is fast and easy!
Student Credit Card
Having a student credit card while still living at home or attending school away from home can be an advantage. It gives the student the opportunity to establish credit at an early age and to start asserting their independence. It comes in handy in case of emergency, it is less trouble and safer to carry a student credit card than to carry cash. Parents find student credit cards to be very convenient. They are able to make deposits to their children's account while they are away from home. Students should be careful with their credit card receipts to avoid identity thief.
If you consistently pay your bills on time, obtaining students credit cards is a good way to established credit rating and start building a good credit history while in school. Establishing and maintaining a good credit rating will make it easy to purchase a car, a home or obtaining a personal loan in the future. For students who are not committed to their financial obligation, getting a student credit card is not a good idea. Running up balances, finding yourself in debt, unable to make monthly payments will destroy your credit rating.
Student's credit cards generally have high interest rates. At iCreditOnline.com we offer some of the best student credit cards from Chase and Discover with 0% APR introductory rate for 6 months, no annual fees and online account access. Online credit card approval with online credit card application is fast and easy!
Explanation of some of the credit cards we offer:
0% Intro APR Credit Card or Balance Transfer Credit Card gives you the benefit of using this credit card without making any interest payment on the principal for a stated period of time. This credit card is marketed to individuals with good credit rating who want to transfer balance from a high interest credit card to a 0% intro APR credit card.
Cash Rewards or Cash Back Credit Card earns a percentage on purchases made. This reward or cash back is credited to your account.
Debit Card takes the place of carrying a checkbook or cash. This card is used like a credit card with certain limitations, such as not being able to rent a car. Purchase transactions are contingent upon having enough funds in your checking or savings account to cover the purchase. Verification of funds requires entering your Personal Identification Number (PIN) at a point-of-sale terminal.
Low interest credit card saves you money. Having a good credit rating qualifies you for some of the best low APR credit card offers.
Prepaid Credit Card spending limit is the amount of money you loaded to the card. There are no interest or finance charges on a prepaid card. Therefore the company giving you the prepaid credit card has zero risk. Generally people who apply for prepaid credit card are people with poor credit or unemployed.
Secured Credit Card is secured by the amount of funds you have in your account. Your credit line could be from 50% to 100% of your deposit depending on the institution giving you the secured credit.
Unsecured Credit Card is issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one's ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate and can receive instant online credit card approval. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.
Travel Rewards Credit Card benefits may include travel accident insurance, free rental car collision/loss damage insurance, rebate on gasoline purchases, frequent flyer points or bonus miles towards airline flights, free quarterly and annual account summaries.
http://www.icreditonline.com offers the best secured credit cards, unsecured credit cards, student credit cards, business credit cards, auto loans, personal loans, business loans, commercial loans, equity loans and merchant account from the most reputable companies. In addition, you will be pleased to find free downloadable guides and a high quality of content pertaining to credit repair services such as credit rating, credit repair, credit scoring, debt consolidation etc.,
As you can observe, we carry a variety of product to satisfy the needs of our customers. Our site is well organized and easy to navigate. Our products are grouped, enabling the customers to find the information and product they are interested in easily.
Search iCreditOnline.com for the best credit card that meets your needs. Then choose and use your credit card wisely. We strive to make iCreditOnline.com a pleasant website to do business. Online credit card approval with online credit card application is fast and easy.
Credit education article by David Hall http://www.icreditonline.com support@icreditonline.com
About the Author
David Hall is the owner of www.icreditonline.com which offers online credit card application.
