How to Avoid Credit Card
Late Fees
By Daryl
Flagg
Everyone hates late fees and being late will cost you
dearly these days. For some credit cards today, if you are late, you
will have to shell out as much as $40 each time. This can put a nice
sized hole in your pocket really quick.
Below, I will provide you with some tips and
strategies on how to steer clear of those monstrous late fees. This
will not only save you a lot of money in the long run, but it will
also keep those money-hungry credit card companies, I won’t
mention any names, from getting your hard earned money.
Just pay your bill. One of the easiest ways of
avoiding a late fee is to just pay your bill each and every month by
sending in a check, money order, or other type of payment to your
respective credit card issuer. Just make sure you follow the
numerous guidelines, which are usually outlined on the back of each
credit card bill, on how to send in your payment. These guidelines
must be followed precisely if you want to guarantee that your
payment will go through on time.
Payment guidelines may include everything from a
specific payment address to the time of day by which the payment
must be received to be credited that day. Many issuers also
stipulate that payments must arrive in the preprinted envelope sent
to the customer.
While the Fair Credit Billing Act requires issuers to
credit payments the day they are received, each issuer is allowed to
set specific payment guidelines. If any of the guidelines are not
met, the issuer can take as many as five days to credit the payment.
An on-time payment could easily become late during
that five-day period, so follow those payment guidelines carefully.
Just skip the payment. One of the more rare types of
methods you hear of are Skip-A-Payment services. You can use these
services to skip mortgage, credit card, or loan payments. Usually
you would need to get in contact with your bank just to see if you
even qualify or not. There are also independent companies out there
that will allow you to do the same thing, no matter what bank you
are a member of. Depending on whose service you use, the fee’s
associated with it vary. When you use these types of services make
sure you know how much you will be charged then decide if it’s
worth it or not.
Pay minimum due immediately. One of the best ways to
prevent a late fee from being charged to your account is to pay the
minimum due immediately. As soon as you receive your bill, send in
the minimum due. This will always insure that your credit card
issuer received payment. You can always send in more money later if
you decide otherwise. This is a great way to avoid missing a payment
because if you forget to send extra money you can guarantee that you
won’t be charged a late fee because the minimum due has been
already been paid.
Move your due date. Are your credit card bills due at
a time of the month when you're running low on cash? Many people
have trouble saving money, so when it comes time to paying their
credit card bills, they don’t have any cash to do so. One
particular solution is to move your due date. Many credit card
issuers will allow you to set your own due date to meet your
specific needs. If you have trouble saving money, move your due date
to a time when you do have money, like as soon as you get your
paycheck. If you time your credit card bill to come the same day you
get paid, you will always have cash to pay the bill.
Pay by phone. If you are one of those people that
wait to the last minute to do everything or if you just forgot to
send in your credit card payment early enough, you could always pay
by phone. This guarantees that your payment will be on time. Just
supply the representative on the other line with your checking
account number and your bank routing number, which is printed at the
bottom of each check. Usually the routing number is first and the
account number is second. A lot of issuers allow you to pay by phone
and some will charge you a pretty penny for doing so. Fee’s can
range from $5 to $20.
Use other express methods. If your bank does not
offer a “pay by phone” service and you need to get your payment
to your credit card issuer as soon as possible, I recommend either
sending your payment in by express mail or by Western Union. Either
one of these services can get your payment to your credit card
issuer immediately. These express methods are costly, but it will
always most likely be cheaper than any fees associated with being
late. Make sure you send your express payment to the proper address.
Many issuers have separate payment addresses for express payments.
The last thing you want to do is slow the processing of an express
payment by sending it to the wrong address.
Daryl Flagg is the founder and CEO of Next Month
Online. Next Month Online is a service that allows its visitors to
skip credit card payments. They can be found at http://www.NextMonthOnline.com. Sign up for free!
Article Source: http://EzineArticles.com/
Phishing - Identity Theft
& Credit Card Fraud
By Ken
Dennis
What is Phishing?
Phishing is a relatively newly coined term for a kind of method for
harvesting information for identity theft. Phishing is quite simply
providing a person with false information or credentials to trick
them in to giving you their personal information. This is done by a
form of social engineering, by posing as a different person or
organization that you already trust.
How does Phishing Work?
The most common form of Phishing is done by sending out fraudulent
e-mails, that lead back to websites that look legitimate. Normally
an e-mail is sent to a huge amount of people stating in very general
terms that you should come to their website and update your
information, or provide them with some new information they need, or
some other similar excuse. When you click on the link in the e-mail
it will take you to a website that looks very similar to the one you
are expecting, you enter your information, and now they've got you.
Another method is to open a popup windows asking information, on top
of the real legitimate website.
How can I identify a scam e-mail?
There are several major things to look out for that will lead you to
believe the e-mail is fraudulent. Quite often the e-mails will be
HTML based, not plain text, this allows them to put active links
that display a legitimate website, but the coding behind it takes
you to a different website.
Often new websites are registered with altered
spellings of major corporations and organizations, or the link will
lead directly to an IP address (ie 24.38.122.156) instead of a
website domain (ie www.website.com).
Another very quick way to identify a false e-mail is
to see who it is address to. Normally e-mails that are fraudulent in
nature are addressed to "Dear Customer" as opposed to your
real name, and often they are e-mailed to many users at one time.
No legitimate organization should ever ask you to
provide you with personal information via e-mail. If any e-mail ever
asks you to e-mail them your private information, you should report
this e-mail to the company they are posing as.
How can I avoid falling for a Phishing scam?
If you believe the e-mail could be legitimate, don't click on the
link in the e-mail, instead open up your web browser, and use the
link/favorite you already have, or type in the website yourself in
to the URL box. This will guarantee that you are using the correct
legitimate website!
Using the same method to get to the website as
mentioned above, go to the organizations help page or contact page
and ask them about the e-mail they may have sent you. You can also
forward them the e-mail to a known legitimate e-mail address at
their organization.
What if I already fell for this scam?
If you have mistakenly been taken in by this kind of scam there is
several very important steps you need to take. First, report that
you have been tricked by this method to your credit card companies,
and other financial institutions.
Report that you have been tricked to the company that
you thought you were legitimately updating information for. If you
can provide them with the e-mail that tricked you, it may be useful
for helping to reduce the impact on other people around the world.
Change all your passwords and PIN numbers for all
your financial institutions and websites immediately.
Monitor your credit card statements, financial slips
and balances. If you notice a discrepancy, immediately contact your
financial organization and let them know about the fraudulent
activity. In addition most banks should be able to add you to a
fraud report list that will stay on your credit report that will
make it harder for people to create new credit cards or open
accounts without providing legitimate identification in person.
Finally, you should contact your local police or law enforcement
organization and file an incident report to cover yourself should
illegal activities happen!
Applying For A Major Credit Card Even Without Prior History
By Mario A. Churchill
Credit cards are used in almost all day-to-day transactions nowadays. From buying milk to getting a nose job, credit cards are the currency of modern times. Although far from totally replacing real money, a credit card is necessary in order for you to have a place in today's trade and commerce. Applying for a credit card is typically easy; but in some cases, it is much like getting a camel pass through a needle head.
Applying for a major credit card without prior experience or credit history makes obtaining one a far more difficult process. A credit history is needed to measure your capability to pay amounts owed and it also allows the issuing company to provide you with a credit limit and payment plan that can best suit your lifestyle and personality. The absence of a credit history will almost make companies balk at the idea of giving you a credit card; on the other hand, if you are not issued a credit card, there is no way that you can have a credit history. Before this whole issue looks more like a chicken-and-egg debate, here are honest tips that can help you apply for a credit card while you still do not have a credit history.
Explore Other Credit Options
Most of the time, the major credit card companies are the ones who give people without credit history a hard time in applying for a credit card. It is therefore incumbent upon you to look for other credit card options through which you can build your credit history. Usually, smaller companies offer more leniencies to people who do not yet have credit card history.
Entities like department stores and gas stations issue credit cards with small credit limits. If you are issued a credit card from smaller companies, always remember that your goal is to eventually obtain credit cards issued by major international companies, so make it a point to build an impressive credit history by paying your obligations to smaller credit card companies.
Credit Cards Issued By Unions
Being a member of some credit union has its benefits as this type of union issues credit cards to their members. Hence, as a member, or as someone who is qualified to join a credit union, you can take advantage of getting your first ever credit card on which you can build on your credit card history. While obtaining a credit union card can be fairly easy for members, it does not mean that the union gives out its cards blindly. Again, make it a point to pay your debts on time.
Try Secured Credit Cards
Go look for moneylenders who are ready to issue a credit card that has a credit limit amount equal to or a little higher than the cash you have deposited in their favor as security. You may think that this setup is like cooking you in your own fat, but the fact is you need to build your credit history, and if there are no other avenues to do that, secured credit cards are the way to go. Eventually, these types of moneylenders will increase your credit limit without asking you to deposit more cash security. After you have gained an acceptable credit record, you may be qualified to apply for credit cards from major issuing companies.
Truly, the way to apply for a credit card from major credit card companies is by having a good credit history. After you have gone through the different options mentioned above, look for a credit card institution that will evaluate your overall credit history and financial status; and just maybe, you will have your first credit card from a major company.
Article Source: http://EzineArticles.com/
Have You Seen Your Credit Report?
By Shelley Green
Before applying for any loan you should always make sure you know your credit rating and are aware of the state of your current credit
report. You are entitled to one free credit report per year. You can also get details of your credit score for a nominal fee. So you bought a new car
last year and got credit for 5 years at 8.9% interest. It isn’t that low is it? You can say that again, but at the time of your purchase your credit
score was quite bad. But that was a year ago. You ran your credit report today and found out both your credit score and rating are now much higher.
In fact they are now excellent. So having run your credit report and obtained such a good rating isn’t now the time to refinance? Why keep paying a
loan with a high rate of interest when you can refinance and get a loan with a much lower rate of interest? Before applying for a loan for the first time
or when you are refinancing you should review your credit report. You can normally get a cheaper loan with a better credit score and rating.
Review your credit report and search for any issues. If there are issues try to remedy them. Once you are taken the appropriate steps
to improve your credit rating and score then check that they have worked by review your credit report again. It is still possible to get credit even if
you have been made bankrupt but timing is important. Once you have been discharged from bankruptcy get a copy of your credit report to check your
bankruptcy has been properly discharged. You then need to wait for six months because you will not get a loan during this period. You should be careful
not to apply for a loan during this period because it will probably be turned down and this fact could be noted on your credit report. You may also want
to put a letter with your credit report to explain the circumstances of your bankruptcy which can improve your chances of getting finance.
Finally, ensure your accounts are up to date and accurate. If you are declined credit you should get a copy of your credit report. It may
be the case that your credit report contains entries that are not accurate. It is possible to improve your credit rating by getting these inaccuracies removed
from your credit report. One of the problems with shopping around for credit is that multiple inquiries as to your credit score may actually reduce your credit
rating. Getting quotes online may help because lenders will estimate rates and fees without looking at your credit report. You can then focus on the lenders
who provided the best estimates and only now will they look at your credit report.
Shelley Green is the owner of http://www.mortgages-click.com, a site that specializes in Mortgages
Shelley Green is also the owner of Loans Click
Article Source: http://EzineArticles.com
Skyrocket Your Score - What Is Good Credit Score Rank To A Lender, And How You Can Measure Up
By MF Calhoun
If you are not sure whether your credit score is good or bad, you might want to know how lenders determine what is good credit score ranking for its applicants.
A good credit score will differ somewhat among lenders. Your income and how long you have been employed, current debt load, whether you own a home, and other
information will factor in as well as you credit score. If you have a low credit score number, a lender might not put as much weight on that if you also make much
more in wages than you have to pay out in debt each month.
Still, the numerical credit score is a big factor most of the time. While different credit bureaus have their own proprietary rating systems, the biggest and most
used is the FICO score. The FICO score was started by Fair Isaac Corp. over 17 years ago. It has become the most important of the credit scores applied to your record.
While the exact method for calculating your FICO score is proprietary to Fair Isaac Corp., the score numbers themselves are common knowledge. The lowest score is 300,
and the highest possible score is 850, which is the best score. Very few individuals have an 850, but the majority of consumers do have fairly good credit. The average
score is 723, which is considered an excellent score.
According to Fair Isaac, 45% of people have scores between 700 and 799, 27% score between 600 and 700, 13% score between 500 and 600, and 2% of people score below 500.
What if you are in the 15% to 20% of Americans with lower credit scores? While lower scores are considered bad or poor credit, individuals with scores under 650 can
still qualify for credit. It can be much harder to find a credit program you can get approved for. In addition, you will pay higher interest, higher fees and generally
higher costs for credit if your credit score is low. Having a poor credit score does not mean you won't get credit, just that it is harder to qualify for the best credit
deals, and you have to know where to find those deals.
What is good credit score health in terms of how you should manage your credit? There are several key things you should follow when reviewing your credit to see if you
can improve your credit score:
- Whether you pay on time. Paying on time is the most critical factor in obtaining and keeping a good credit score.
- Whether you go over your approved credit limit. Exceeding your credit limit means your score will drop and your fees will go up.
- How many cards you have and how much credit is available to you. sometimes even if you pay on time, having a large balance of open credit and many credit cards can
actually harm your score.
While there are many more factors that impact what is good credit score rankings, those three factors are probably the most important. If you have a good credit score,
then you are on the right track. But if you have a lower credit score, there are certain steps you can take to turn your credit around and see results fairly quickly
and work toward achieving a good credit score.
MF Calhoun writes on credit topics for FixItYourselfCredit.com and a variety of other publications. Find out how to quickly and easily improve your credit score at
http://www.fix-it-yourself-credit.com/goodcredit
Article Source: http://EzineArticles.com
Some Ideas for Credit Card Debt Settlement
By Eric B. Slarkowski
Bad credit can affect many of the opportunities you have in your life, from your ability to purchase a home right down to your ability to rent movies. Today,
Americans are finding themselves more in debt than ever, and many do not know how to go about fixing their financial reputations.
Most of the financial woes of Americans and bad credit can be attributed to credit card bills. Many American consumers and their families are being dragged into
(or deeper into) financial holes because of their uncontrolled spending on their major credit cards. When it comes time for the credit card debt settlement, they
find that they overextended their means and are not able to settle credit card debt. The research on this subject is astounding:
Studies have suggested that on average, an American household will have monthly due balance around $8,000, including both credit cards and student loans. The
problem with this accumulated debt is the interest. As the debt sits whiteout getting paid off, the interest accrues and the per month payments go up. Soon enough,
many consumers find themselves paying more to the interest on their debts than on any other household expense. Many suggest that the only escape from this financial
purgatory is to look into options such as credit card and debt consolidation.
One way that people try to consolidate their debt is by applying for another credit card and then transferring the balance over to the new one, taking advantage of
the often low beginner APR rates. This way is really not very effective, as all that ends up happening is a larger sum of money on a new card, resulting in even higher
interest payments.
Another way is through consumer debt counseling, or debt consolidation. Those who choose debt consolidation need to realize that it will not make your debt disappear.
It is only a tool that can be used to get an individual out of debt, and therefore its success will lie with the person who wields that tool.
There is no doubt that being in a financial hole leads to an incredible stress on the individual. Consolidating the debt will help to alleviate some of this stress,
as the individual debtor will realize that a plan is in place to improve his or her life. Debt consolidation will mean that the monthly payments on an individual debt
is lowered, and that in most cases interest rates are as well. As payments are made, the collection agencies will begin to call less, which will also help to reduce
the stress.
It is very important to remember that although a plan is in place, it is up to the individual to follow through with it and control spending so that the debt is paid
off. Debt consolidation programs can help by managing your debt in a way that does not seem impossible for you, and will also help with self-control issues by pointing
out ways in which an individual can better manage his or her finances. The plan that is put in place is one that suits the needs of the individual. All creditors are
paid out according to priority after all unsecured debt is consolidated, including medical bills, credit card debt, and personal loans. All of these loans are now
paid out of one place. Many of these plans are sponsored by creditors themselves, as they feel that although they could make more money with the higher interest rates,
there is the risk that they will receive nothing at all. For this reason, they would prefer to recoup the money over the long term than lose everything due to a money-grab.
Eric Slarkowski's short articles are found on several online sites with information about consumer counceling and settle debt. Writing for detailed publications,
the reviewer established his capability on subjects similar to credit card debt settlement and consumer counseling.
Article Source: http://EzineArticles.com
How To Use A Credit Card To Help Repair Your Credit
By Joseph Kenny
Getting into a state of bad credit is never fun. It does not, however, mean that your fun is entirely over. There may be some rather simple things that you can do
about it. One of these is to get another credit card. Not just any credit card, but one that will help you to repair your credit. Here are some things you need to
know about it.
Depending on just how bad your credit is, there may be more than one thing you can do. Be sure to look over your credit report and find out if there is any misreported
information there. Things that have been entered by mistake, for instance, or things that occurred a long time ago but have since been properly taken care of. Many
times, a creditor will be willing to make some changes for you if you will talk to them.
One type of credit card that will help repair your credit is one for people with bad credit - if you are already there. This kind of card can be obtained from many
credit card companies and usually comes without any kind of frills whatsoever. Although it may offer low interest, it usually makes up for this with plenty of fees
and very low credit limits. The fees may be worth it because, with timely payments from you, your account will be evaluated every now and then, and your credit limit
can be raised - along with better offers. Make sure, though, that the company regularly reports to the major credit bureaus.
Other credit cards for people with bad credit have much less fees and a greater deal of flexibility. Look carefully and you may be able to find a credit card that
will fit your lifestyle a little better and give you better rates. The interest rate on this type of card can be above 19%, and it can also include yearly fees, too.
Another type of credit card that you can get if your credit rating is better, is a balance transfer credit card. This will allow you to reduce your credit card debt
(if you have any) by giving you the possibility of paying down your debt without any interest. Check on the time period of this, though, and get as long of a period
as possible - try to get a year or longer. The better cards will have no fees attached for this privilege.
No matter what kind of credit card you get, though, it could lead to further trouble with bad credit if you do not handle your credit card right. This means you need
to make your payments each month on time and seek to keep your balance down to zero - if possible. Make sure your credit card agency does report regularly to the credit
bureaus and before long, you will find that your credit rating has improved. You will want to destroy other credit cards when they get paid off, if you are the kind
that will probably start charging again.
Joe Kenny writes for the Credit Card Guide, offering views on credit card offers in the UK, visit them today or Credit Card Store for more credit cards and grab a
great deal today.
Visit today: http://www.cardguide.co.uk
Article Source: http://EzineArticles.com
7 Obscene Tricks Perpetrated On You By Your Credit Card Company
By Tom Koziol
Obscene is usually associated with pornography while credit cards enjoy a more discreet association. At least that is the perception. This article will change your
perception.
It is my belief, and may become yours after you read the 7 tricks, credit card issuers should be classified with pornographers. They have, I believe, only one purpose
and that purpose is to screw every consumer using their cards as the tool.
I say that not because I am anti credit card. Far from it. I have eight in my wallet and use two of them on a regular basis. I also apply the anti-dote every month to
their poisonous bites. But, I am ahead of myself and will give you the anti-dote at the end of this article.
By the way, this article only covers what I classify as the top 7 obscene, nasty ways credit card issuers relieve you of money that should rightfully stay in your
wallet. I cover them all in a book I wrote which is in my bio at the end of this article.
This first trick is called the universal default penalty. As you may or may not know, credit card issuers regularly check your credit report for late payments on any
of your bills. Even though you have been paying your credit card bill like clockwork every month and have never been late, you still can see a spike in your interest
rate because you were late with, for example, your car payment.
The UDP clause permits your card issuer to raise your rate no matter in what account you were late. This clause is found in a document called Terms and Agreement which,
by the way, you were given when your card was issued. Probably came in the same envelope.
You didn’t read it. I know you didn’t because the font is about 3.5 in size and it is written in legalese. You threw it away or put it in your file cabinet or desk
drawer where it is still resting today.
This doesn’t give them the right to monetarily take you to the cleaners but they know you won’t read it so they take you to the cleaners. All legal by the way because
the legislation is written for them and not for the consumer.
Proof of my contention is found in your Terms and Agreement and in the credit card laws. Take the time to read one or the other and you will use stronger language than
obscene or tricks when you talk about credit card issuers.
Trick two is one called the over the limit fee. Simply stated, if you charge over your credit limit, you are penalized a sum of money. As of this writing, it is between
$25 and $50, depending on card issuer.
Think about this charge for a minute. Who set your limit? The credit card issuer. You didn’t. So, if you have a $1500 limit, how can you over charge given their computer
is preset with that amount and is supposed to block any more charges once you hit $1500?
Since the credit card issuer imposed the limit, how can they charge you a fee for exceeding the limit? If you exceeded the limit, they had to grant permission, right?
If they granted permission, than they just reset your limit to a higher amount. So, if they reset your limit to a higher amount, you can’t be over your limit, can you?
Wrong. Read the Terms and Agreement. They have a little clause permitting them to do exactly what was just described without penalty to them but with a penalty to you.
I don’t know about you, but to me this seems like a punch below the belt.
Trick three is a neat little jewel called the special delinquency rate. If you have a card with a low interest rate, you may experience a rapid rise in that rate if
you are late a certain number of times in nay specified time period. One particular huge credit card issuer has set the number of times to one. Ouch!
Trick four is the transaction fee. A transaction is nothing more than an action (charging a blouse for example) between you and the merchant. This results in an
activity on your card. What else could it possibly do?
Well, since it resulted in an activity, a transaction fee is imposed. But isn’t that what the card is set up to do in the first place? The answer is yes but the
transaction fee increases their profits so its inherent action (an activity) gives rise to a fee.
Trick five is called a maintenance fee. You don’t even have to use your credit card and you will be charged. You guessed it. The maintenance fee rears its ugly head.
I call this a privilege tax because the company is charging you just because you have their card.
Trick six is a doozy called a service charge. This is a fee for specific services or imposed as a penalty for not meeting certain requirements. For example, applying
for a card is considered a service, so a service charge is applied.
Trick seven sounds like one or two of the above fees but is actually imposed on top of all the others. An inactivity charge is imposed if you haven’t used your card
for a certain period. For example, let’s presuppose a six month period. You would face an inactivity charge if you didn’t use it during that six month period.
Trick eight (yes, I know the article says 7 but this one is particularly onerous too) is the two-cycle billing trick. Most of us have cards that bill on a one month
basis, i.e., charge today and payment is due next month.
Two-cycle billing uses your two previous months’ balances. The math varies a little bit by issuer so rather than give one across the board example, I’ll advise
pulling out your Terms and Agreement. By law, this particular deviousness must explained in detail.
If you cannot understand their terminology, math or anything else in that section, ask your banker for an explanation.
OK, now that you know eight of the time bombs your credit card issuer has placed in your wallet, you are armed to take action. When I first opened this article, I said
I would give you the anti-dote to their poisonous ways.
I pay the balance in full , a.k.a anti-dote, on every credit card I placed a charge by the due date shown on that card’s statement. You see, the Terms and Agreement
does do one good thing for us consumers. It says if we pay in full by the stated due date, we will not face any of their myriad charges and fees.
It is that simple. I watch how much I charge and I pay the balance in full no matter how financially painful it seems at the time.
As a famous commentator used to say, End of story.
Tom Koziol is the Executive Director of a non-profit devoted to making life easier for senior citizens, senior caregivers and baby boomers. Free and low cost resources
are available at: http://www.senior2senior.org.
Article Source: http://EzineArticles.com
Lower your Credit Card Payments
By Kenneth Long
Interest rates on credit cards can go sky high, especially when creditors invoke the universal default clause in your card holder agreement. Even normal rates can increase as interest rates go up. Creditors love to nudge your interest rate up to increase their profits when you aren't paying attention to their activities.
If you have been a good customer, then you deserve better. Consumers who pay more than the minimum payment every month should request a lower interest rate. According to Daniel Johnson with Personal Financial Network, "most people do not realize that with their good payment history, they can just call the credit card companies and ask them for a lower rate." Indeed, creditors do not want to lose customers that show financial strength, yet still carry enough of a balance for the creditor to profit.
Once you get a lower rate, your minimum payment will actually drop. That is because creditors adopted new formulas in January 2006 to calculate the minimum payment on credit cards. The new calculation increased many people's minimum payments. However, once you reduce your finance charges substantially, then that part of your minimum payment typically goes away.
If you have had a spotty payment history or routinely make only minimum payments, then you may not have as easy of a time winning a lower interest rate. In this case, you must work hard to send in extra payments over the next three to six months to show your financial strength. If you can barely afford the minimum payments, then you should strongly consider seeking credit counseling before your next emergency puts you over the edge.
A reputable credit counselor can review your household budget and show you how to strategize to reduce interest rates and lower your credit card payments on your own. If you are having trouble doing this on your own, they may be able to help you develop a debt management plan to control your interest rates and minimum payments. Credit counselors can help you achieve much lower interest rates and lower payments on many of your credit card accounts by enrolling you in a debt management plan sponsored by your credit card companies. Even consumers with the worst credit can gain substantial benefits from their creditors through a debt management plan. If you need help, find a reputable credit counselor near you through your Better Business Bureau.
Kenneth Long began his public service with nonprofit organizations in 2001. He has since conducted workshops teaching other nonprofit executives how to integrate credit counseling with volunteer tax preparation programs. The most recent of these include a workshop at the National Community Tax Coalition annual conference in Los Angeles.
You can find more information about getting lower credit card payments at Personal Financial Network.
Article Source: http://EzineArticles.com
14 Mistakes That Will Destroy Your Credit
By Donny Lowy
I’m sure that you realize that establishing credit and wisely managing your credit becomes easier when you know how. If you plan to finance real estate, either as a homebuyer or an investor, avoiding these common credit mistakes will help you with your credit score and save you money in loan costs.
1. First of all, you should be aware of the fact that using expensive or undesirable types of credit costs too much and is negatively scored.
2. Also, accumulating too many lines of credit or too many credit cards causes credit report remarks like "too much consumer credit."
3. Only paying the minimum due keeps balances too high.
4. Being mixed out on any credit card or line of credit causes deep drops in scores.
5. Taking cash advances costs higher interest and extra fees.
6. Exceeding limit and having to pay over-limit fees is a negative with.
7. Paying a day or more late may cause unnecessary late fees and increases interest rates.
8. Charging more than you can afford causes debts with no easy way to pay it off.
9. Letting someone else use your credit raises your debt-to-income ratio and possibly adds "too many consumer accounts" on your credit report, which lowers your score.
10. Ignoring credit problems causes unnecessary negative impact.
11. Failure to report address changes to creditors causes misplaced bills and late payments.
12. Using partial name, different names, and initials instead of whole name causes mix-ups. Use your full legal name to protect you from confusion with similarly named borrowers.
13. Failure to report name changes to creditors also causes confusion.
14. Not checking credit report frequently is one of the most common mistakes consumers make.
Keep in mind that you can buy real estate with poor credit, but you will save thousands in loan costs if you maintain good credit. A bad credit report leaves homebuyers with sub-prime loans, which have higher point charges, prepayment penalties, and higher interest charges, which therefore cost more money.
http://www.justurbanlife.com is your source for credit. You can obtain loans, mortgages, credit cards, cash advances, even if you have a poor credit score. http://www.justurbanlife.com is also perfect for you if have a good credit score.
Article Source: http://EzineArticles.com
Credit Repair - The Cost Of Errors
By Jim Kemish
Credit Report Errors Mean Consumers Lose
In 1998 the Federation of State Public Interest Research Groups (PIRGs) published a now famous report called, Mistakes Do Happen: Credit Report Errors Mean Consumers Lose. This report detailed the results of the PIRGs sixth study on the accuracy of credit reports. The results, in their words, were troubling, and revealed that an alarming number of credit reports contain serious errors. Here are some of the highpoints (or low points) of their study findings.
Serious Errors can Have High Costs
Seventy percent of all of the credit reports investigated contained errors. The errors uncovered by the study were broken down into categories based on the severity of the errors. The worst of the errors occurred in twenty nine percent of the credit reports and were likely to result in the outright denial of credit. This type of error included accounts that are incorrectly marked as delinquent, accounts that do not belong to the consumer, and derogatory public records such as judgments that belong to someone else.
Not a Small Issue
The types of errors noted above are obviously very serious. It should be emphasized that twenty nine percent is a horrendously large number. This number alone indicates that you have more than a one in four chance of having errors on your report that will cause you to be denied credit. An additional result of this misreporting may include your placement into a sub-prime credit category and result in you receiving a higher cost loan than you would otherwise have received. Translated into dollars there is the potential for a life changing impact on your financial wellbeing.
Little Things Count
Forty one percent of the credit reports reviewed contained personal identifying information that was out of date or belonged to someone else. These erroneous items included incorrect Social Security numbers - often belonging to total strangers, wrong birthdates, addresses that had never been lived at, and employers that the consumers had never worked for. Here again it is essential to consider, not only the massive numbers of errors that are indicated by the study results, but the implications of these results. These statistics show a massive potential for every credit report to contain potentially costly errors.
Missing Accounts Can Hurt
Twenty percent of the credit reports reviewed were missing major account information such as auto loans, mortgages, and other consumer accounts that could have demonstrated the credit worthiness of the consumer. Credit repair programs like ours discover these omissions on a daily basis. In many cases a credit report is as damaged by the absence of these major accounts as it would be by the presence of erroneous derogatory accounts.
Closed Versus Open Accounts
Twenty six percent of the credit reports contained accounts that had been closed by the consumer but remained listed as open accounts. Keeping in mind the significance that the FICO scoring method places on the number and status of current accounts it is clear that even this seemingly harmless omission by the credit bureaus can potentially cause expensive and intolerable damage to ones credit. In the majority of these cases it was concluded that this error could make it appear that the consumer is currently over extended and cause the denial of a credit application.
Credit Bureaus Are Not Government Agencies
The information noted above is an indication of the severity of the reporting problems that occur. We have been helping our clients with credit repair since 1989. I often find myself correcting customers’ impression that the credit bureaus are in some way connected to the government. This belief is understandable. The credit bureaus have a major impact on your financial life. But although the bureaus seem like an omniscient Big Brother, they actually have no connection to the government at all. In fact, they are under constant scrutiny and have been fined many millions of dollars for their failure to cooperate with consumers’ efforts to fix reporting errors.
Your Rights
Significant legislation has been enacted to protect you from the impact of the credit bureaus inaccuracies. The right that you have to receive copies of your three credit reports for free on an annual basis is not a friendly public service by the credit bureaus. The bureaus have been required to provide this service as one of the protective measures included on the Fair and Accurate Credit Transactions Act of 2003. Your credit report can have a major impact on your financial life. Give your credit the attention that it deserves and review your reports regularly.
Copyright © 2007 James W. Kemish. All Content. All Rights Reserved.
Jim Kemish is the president and founder of Power Mortgage, a Florida mortgage broker based in Delray Beach, Florida. Power Mortgage Corp was established in 1989 and serves the states of Florida, Georgia, Massachusetts, and Virginia. Jim is also the President of Sky Blue Credit, a national credit repair business. For great mortgage and credit tips visit the Florida Mortgage Blog
Article Source: http://EzineArticles.com
Do Cash Back Credit Cards Mean Money in the Bank?
By Robert Alan
There is no better way to win consumer loyalty than paying them to shop. Cash back credit cards aim to do precisely this. A percentage of every purchase you make is set aside as points. Once you hit a certain number of points, you get it back as cash! You could use it to pay off part of your credit card bill, or even have it credited to your bank account. While most cash back credit card companies give cash back at the rate of 1% or less, you could find one with higher rates as well.
How Rebates Work
Customers love cash back credit cards and that helps build strong customer loyalty, providing a lucrative proposition for both the card companies as well as their customers. A customer will be more inclined to use a particular credit card for all of his shopping needs once he is sure to get back a significant amount of cash from his purchases. In fact, he might even continue with one service provider over time for this very reason. The more money you spend on your credit card over a longer period of time, the more money that card issuers can make with this incentive provided to consumers.
When you enroll for a cash back credit card program, make sure you know how many dollars you have to spend in order to start receiving rebates. This is primarily because you may end up being locked into a long-term plan with the credit card company without tangible benefits.
Where to Find a Card
Ask your credit company if they offer a cash back rebate feature on your current card. There may be incentives that you are not even aware of so be prepared to do some groundwork regarding cash back offers.
If you are in the market for rebate credit cards, here are some tips to help you compare and choose the best one for you:
1) Identify your daily expenses or priority purchases. Choose a cash back scheme that pays you for purchases you would normally make anyway. The right card for you is the one that gives you cash back service on all your purchases.
2) Don’t be blinded by the highest percentage of cash back. This may not always be the best deal. Some cards offer you up to 5% cash back, but only on certain purchases, or purchases from select merchants. If those are not purchases that you would normally make, it is not going to be the right card offer for you.
3) Pick the cash back card that suits you best. Some give you immediate discounts on your purchases, some reduce your account balance by the amount of your benefit and some send you checks or gift vouchers periodically.
4) If you like having a bonus check to spend, choose a card that pays out a semi-annual or even an annual dividends check.
5) A gas cash back credit card can help you save every time you fill up, offering cash discounts on every gallon of gas that you buy. In addition, many also give you rebates on any purchases made at gas station convenience stores as well.
6) Cash back credit cards that pay you a rebate for every purchase generally offer a lower percentage savings, typically around .5 to 1%. Don’t let this discourage you. This can add up to considerably more cash back for you in the long run if you don’t typically patronize a very specific select group of merchants.
7) If you do tend to frequent particular shops or retailers, you may find a cash back credit card that rewards you for purchasing from just those merchants specifically.
8) Make sure to compare credit card rebate offers online to be sure you are getting the best APR and rewards features for which you can qualify.
9) Know the difference between a limited use card and traditional all-purpose credit cards. The former are only valid at a select group of merchants. Not only are you confined to the premium prices charged by the member merchants, you are more likely to pay premium interest rates of interest in comparison to credit cards.
Are Rebate Credit Cards the Right Choice For You?
If you wish to earn rewards, then credit card rebates should be perfect. Cash rebates will depend on the frequency with which you use a card at the vendors, merchants and retailers that are partnered with the card issuer. This makes it critical that the associated merchants and retailers connected to the card offer absolutely suit your needs and desires. Keep in mind that not all of the products you wish to buy will qualify for rebates. Some specific product categories may also attract lower rates of cash back.
Another thing to be alert about is whether there are any maximum limits on your card. Many companies will limit the rebate amount that you can earn to a certain amount per year.
If you keep all this in mind, and can present a healthy credit history to a credit card company, you could be on the road to some healthy rebates and large amounts of money in your bank account.
Robert Alan suggests that you visit CreditCardAssist.com for more on cash back credit cards.
Article Source: http://EzineArticles.com
Balance Transfers Primer
By Robert Alan
Are high credit card fees giving you sleepless nights? Think smart: balance transfers could be an intelligent short-term solution. The following article can be used as an introductory guide and a primer on the use of balance transfers that discusses the intricacies of balance transfer details. Transfer the weight off your shoulders and get a balance transfer credit card with a lower rate of interest. However, make sure to run through the terms and conditions of the new balance transfer card, to make sure you win in the long run.
If you are not really keen on getting a new card, tell your existing company that you want to transfer your balance to another card that offers a much lower rate. Your existing credit card company just might offer you a better deal. If not, then go ahead and call the competition!
So what is so great about balance transfers? Balance transfers to a card with a lower rate can significantly cut down your interest and fees. The most common rate of interest offered by companies on balance transfers is 0% for 3 to 12 months. If you are fortunate and your credit is good enough, you might qualify for a 0% interest card for 12 months on balance transfers and purchases. Be aware, however, that some cards, will link the introductory annual percentage rate (APR) to the billing cycle of the card.
There could be some additional perks available on your balance transfer card as well:
1) Your new card may charge no annual fees.
2) The grace period on payments might be longer.
3) Rewards like cash back on purchases might be available.
4) Discounts from certain retailers, identity theft protection, and even car insurance can be thrown in as well!
How Do I Get One?
You will be required to go through some basic application procedures and paperwork on a balance transfer. You could write a balance transfer on one of the convenience checks that the card issuer will provide after getting approval on the card. These function just like normal checks but there are some things to be aware of, such as expiration dates. Time can cost big money, in this case, with the old interest rates snapping at your heels. How much you can transfer will depend entirely on the credit limit of your new card.
The fees for balance transfers are similar to that of cash advances, but often times, fees will be waived for the very best card offers. If there are associated transfer fees on the card, it is advisable that you avoid transferring small balances, as the transaction fees might undercut your potential savings. Some additional fees on these cards might include:
1) Late Fees: Once the introductory period on your balance transfer ends, you will start incurring finance charges on the remaining balance. Late fees on these card offers are particularly expensive. In order to avoid these exorbitant fees, make sure that you mail payment well in advance of the due date. If you are using an ATM deposit, stay informed about the processing time of your payment. Banks either charge a flat fee, such as $10 or $15, or a percentage, such as 5%, of the minimum payment due, for example
2) Over-Credit Limit Fees: Each time you charge your card beyond the credit limit, the bank has the ability to impose a fee. It is possible that many of these aforementioned fees will gather simultaneously (in addition to interest charges) during the same billing period! Banks usually charge $10 or $15 for this fee or up to 5% of the amount on the exceeded limit amount.
3) Lost Card Replacement Fees: If you ever happen to lose your card, some banks might charge you anything between $5 and $10 for a replacement.
The most important thing to remember regarding balance transfer credit cards is to make all your payments on time and pay off the outstanding balance within the introductory time frame. Usually, there is no grace period offered up for balance transfers and unless you have snapped up an introductory 0% APR, interest will begin to accrue immediately. The calculation can get a little tricky too. Your initial repayments will first go towards clearing the balance transfer amount before making a dent in any outstanding balance created from recent purchases with the card. So if you want to avoid this mess, keep a separate card for balance transfers and another one for regular purchases.
When the Joyride Ends
You should be keenly observant of the expiration date of your promotional offer. Once it ends, you will be charged the normal rate of interest. All remaining purchase and balance transfer amounts will be subject to a much higher APR and significantly higher finance charges.
Your credit history will determine your post introductory APR on your balance transfer credit card. So if this APR is higher than the rate on your old balance transfer card, you could incur more expensive finance charges if you carry a balance from month to month. Just make sure that you transfer your balance to a new card that offers both a lower promotional rate as well as a lower ongoing APR.
Robert Alan recommends that you visit CreditCardAssist.com for more information on 0% balance transfers.
Article Source: http://EzineArticles.com
Need For Consolidating Your Credit Cards
By Frank Jameson
You need not carry cash anymore in your wallets when you are out on a shopping spree. Credits cards can be used for numerous purposes be it shopping online or offline, a dinner at a restaurant, a holiday getaway, etc. But as you get more and more accustomed to credit cards, the risk of abuse also amplifies. This is further catastrophic for people who use more than one credit card at a time. At such times, you need to cautiously build up a strategy to manage your finances efficiently so as to get rid of the debts soon and also repress the number of credit cards you use at a time. This calls for the need to direct your energies towards consolidating your credit card debts.
There are numerous reasons as to why people resort to credit card consolidation. One of the prime reasons is that the individual interest of each credit card is so humongous that it eats up almost all your monthly earnings. Also the people who use more than one card at a time are more prone to be under the burden of credit card debts in the form of interest on each card. For such people, credit card consolidation offers a favorable method to save money on interest and other finance charges. The most appropriate way to get rid of such debts can be visualized as paying off the interests for each credit card on regular basis per month. But this also is not an ideal, practical way to get away with debts as large amount of money is washed out. This again reinforces the need to consolidate your credit card debts.
Credit Card Consolidation is offered by an umpteen number of Financial Institutions or banks but every bank has disparate terms on which it provides debt settlements to its clients. There are also some Credit card companies which provide more pecuniary flexibility to its clients as compared to the banks. Thus it is an important prerogative to choose the right financial institution for consolidating your credit card debts.
Each financial institution offers terms that usually are superior to other institutions. However although they seem to charge minimal fees, they do have some hidden charges or higher APR rates. Therefore you truly need to be argus-eyed in choosing your financial institute and you should also clarify each and every term and condition accurately.
The objective of each credit card consolidating companies is to assist people in becoming debt-free. They do this by assigning the clients a specific bank where they pay some percent of the total interest that is otherwise more costly if one would pay individually for each credit card institutions. These credit card companies then offer incentives in the form of emulous introductory pricing that are inaccessible to clients who are weighed down with multiple debts. Your finances then become much stable due to the introduction of such incentives.
Frank Jameson is the creator of http://debtsettlementdeals.debtrelief2000.info; a website specialized on debt, resources and articles. More info on debt, creditcard debt at: creditcard debt.
Article Source: http://EzineArticles.com
Why Your College Student SHOULD Have a Credit Card
By Debbie Dragon
There’s no shortage of resources available telling you why college students should not have credit cards. Indeed there are some very valid concerns about college students and credit cards which are address later in this article, but there are also a number of good reason parents should help their children obtain a credit card heading off to college. This article covers some of these reasons.
They’re going to get one anyways – Recent studies have shown that as high as 92% of college student have at least one credit card by their sophomore year. Most of which just apply for an offer they receive in the mail without comparing their options By taking action early you can help them find the best credit card for them with lower rates and a more reasonable spending limit. This also provides you the opportunity to educate them on the risks of having a credit card.
Building a credit history – Once your child is out of college they will need credit. Building a credit history while in college will give them a huge leg up when it comes time to apply for an auto loan or a mortgage. By using a credit card to build a good credit history they’ll be more likely to be approved for these loans, get better rates, and hopefully won’t need you to cosign for them.
Learn about credit before adulthood – Unfortunately most public high schools really don’t teach student about basic budgeting and financial planning they’ll need as adults. A good portion of parents don’t take the time to do this either. This results in most young adults today learning about credit the same way most of us did, the hard way. By allowing your child to have a credit card with a small credit line in college they can begin to learn these lessons in a more controlled environment, especially if you’re a co-signer who has access to the account.
They teach budgeting – Most college students would be hard pressed to tell you where their money goes. This is because when dealing with cash it’s easy to forget what exactly you paid for each month. By using a credit card for expenses and paying off the bill each month it helps show your kids exactly where that money is going, the true cost of eating out and how to live within a budget.
To make online purchases – A college student can save a fortune by purchasing text books online rather than on campus. The same is true about virtually every other item from clothing to furniture, electronics and music. This is the period in life where every penny counts for most people. You can not make purchases at most online stores without a credit card.
Emergencies – Like it or not your child is most likely going to get themselves in a financial emergency at least once during college. Not only can having a credit card ensure they’ll be able to eat, but can also come in handy in actual emergencies such as when a car breaks down or runs out of gas away from campus.
It’s easier to qualify as a student – It may seem odd, but it’s actually harder to qualify for a credit card as a young adult out of college than while in college. Banks offer student credit cards specifically for college student that have lower qualification standards. Your child will need a credit card eventually and it will be much easier to get one now.
Motels and airlines require one – If you child is going to school out of town, most likely they’ll make the trip home once or twice. It’s next to impossible to make hotel reservations or plane tickets without a credit card.
Addressing "The Concern"
There’s really only one concern that parents have about their children having credit cards. “They’ll run up the bill, put themselves in debt and destroy their credit history.” This does happen in a number of cases, but as mentioned before they’re much more likely to do this on their own than if you help them with the process. There are some things you can do to prevent or at least limit this.
Get a low credit limit – This will give them what they need for emergencies, online purchases, motels and many of the other benefits listed above, but stop them from running up a large amount of debt. Even if the bank gives you a higher credit limit by default you can request it be lowered.
Co-sign for them – While this option does make you personally responsible for any debt they run up, it also give you access to the account so you can monitor spending. It’s important you take the time to review the bill and payments each month. Most banks will let you do this online now.
Get a prepaid credit card – This doesn’t provide the benefits of building a credit history but does provide most the other benefits. In addition you can replenish them online or by phone to provide an allowance, or allow others to do so as gifts.
Checking accounts with debit cards – By getting a debit card tied to a checking account your child can have all the conveniences of a credit card without having to worry about getting into debt, or pay the annual fee that usually comes with a prepaid card. However, it does not help them build a credit history.
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for a credit card online.
Article Source: http://EzineArticles.com
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