Modern Student Based Budgeting Systems Present Their Own Unique Credit Realities
As anyone who watches the news today knows, these are unique economic times that we all live in. For a student in college today, the economic challenges that present themselves can be even more daunting and complex. For instance, one goal of any college student should be to prepare a positive credit rating so it will be there when that graduate.
Credit Cards for College Students
This of course, means that a college student must be able to design and live by a student based budgeting system that has some level of flexibility to accommodate a college students unique needs. Credit card companies now have college students directly in their field of vision. This means that just about any college student can now obtain a credit card.
Begin Building a Posetive Credit Rating
Credit cards are a double edged sword when it comes to a persons credit rating. This is because, they are a great way to build up a positive credit rating, while at while at the same time they can devistate a credit rating if not managed prudently. This means that any credit card that is integrated into a student based budgeting system should only be used as a tool to build up a positive credit rating.
Begin Early to Build a Posetive Credit Rating
It takes a few years for any positive actions to reflect on a persons credit report. With so many more people and agencies including employers and landlords now relying on a persons credit score in their decision making process, it is imperative that a good credit score be there when a student finally graduates. Waiting until one graduates to address their credit rating is a mistake that far too many college students make.
Low Introductory Interest Rates
Credit card contracts usually cover some three complete pages with fine print and are very complex. The reason for this is quite simple and that is that the issuers of the credit card don't want you to understand them. If you obtain a credit card that has a very small introductory interest rate, you must make all of your payments on time or early, or your rate will shoot up and that includes any payments you make such as your car payment.
By Expert Author: Donald Renal
Article Source: http://www.articlesphere.com/
วันศุกร์ที่ 7 พฤศจิกายน พ.ศ. 2551
Modern Student Based Budgeting Systems Present Their Own Unique Credit Realities
Modern Student Based Budgeting Systems Present Their Own Unique Credit Realities
As anyone who watches the news today knows, these are unique economic times that we all live in. For a student in college today, the economic challenges that present themselves can be even more daunting and complex. For instance, one goal of any college student should be to prepare a positive credit rating so it will be there when that graduate.
Credit Cards for College Students
This of course, means that a college student must be able to design and live by a student based budgeting system that has some level of flexibility to accommodate a college students unique needs. Credit card companies now have college students directly in their field of vision. This means that just about any college student can now obtain a credit card.
Begin Building a Posetive Credit Rating
Credit cards are a double edged sword when it comes to a persons credit rating. This is because, they are a great way to build up a positive credit rating, while at while at the same time they can devistate a credit rating if not managed prudently. This means that any credit card that is integrated into a student based budgeting system should only be used as a tool to build up a positive credit rating.
Begin Early to Build a Posetive Credit Rating
It takes a few years for any positive actions to reflect on a persons credit report. With so many more people and agencies including employers and landlords now relying on a persons credit score in their decision making process, it is imperative that a good credit score be there when a student finally graduates. Waiting until one graduates to address their credit rating is a mistake that far too many college students make.
Low Introductory Interest Rates
Credit card contracts usually cover some three complete pages with fine print and are very complex. The reason for this is quite simple and that is that the issuers of the credit card don't want you to understand them. If you obtain a credit card that has a very small introductory interest rate, you must make all of your payments on time or early, or your rate will shoot up and that includes any payments you make such as your car payment.
By Expert Author: Donald Renal
Article Source: http://www.articlesphere.com/
As anyone who watches the news today knows, these are unique economic times that we all live in. For a student in college today, the economic challenges that present themselves can be even more daunting and complex. For instance, one goal of any college student should be to prepare a positive credit rating so it will be there when that graduate.
Credit Cards for College Students
This of course, means that a college student must be able to design and live by a student based budgeting system that has some level of flexibility to accommodate a college students unique needs. Credit card companies now have college students directly in their field of vision. This means that just about any college student can now obtain a credit card.
Begin Building a Posetive Credit Rating
Credit cards are a double edged sword when it comes to a persons credit rating. This is because, they are a great way to build up a positive credit rating, while at while at the same time they can devistate a credit rating if not managed prudently. This means that any credit card that is integrated into a student based budgeting system should only be used as a tool to build up a positive credit rating.
Begin Early to Build a Posetive Credit Rating
It takes a few years for any positive actions to reflect on a persons credit report. With so many more people and agencies including employers and landlords now relying on a persons credit score in their decision making process, it is imperative that a good credit score be there when a student finally graduates. Waiting until one graduates to address their credit rating is a mistake that far too many college students make.
Low Introductory Interest Rates
Credit card contracts usually cover some three complete pages with fine print and are very complex. The reason for this is quite simple and that is that the issuers of the credit card don't want you to understand them. If you obtain a credit card that has a very small introductory interest rate, you must make all of your payments on time or early, or your rate will shoot up and that includes any payments you make such as your car payment.
By Expert Author: Donald Renal
Article Source: http://www.articlesphere.com/
The Way To Get Back To Normal Bad Credit History
The Way To Get Back To Normal Bad Credit History
For people with bad credit history, it's already a tough road trying to own a car or a real estate. Low credit score is avoided like plague by general bunch of bankers, but a handful of other financers are always ready to give credit cards to people with bad credit history. Help you to improve your poor credit score is not as easy, but its possible.
The first thing you have to do is to obtain and review your credit report from each of the three national credit bureaus - Experian, Equifax and TransUnion - and make sure, if the data containted in these reports is accurate. Any information that is not accurate should be reported right away to the national bureau reporting the inaccurate information.
Then you have to to understand, that you have some options to recover your lost credit score points, but bad credit history recover can take some time. When you are trying to achieve bad credit history repair, you may run into a number of some disappointments and frustrations, however, if you do fall into bad credit, it is important that bad credit history recover is implemented. So this is why bad credit history repair is so important. The most important factor of improving bad credit history is - maintaning regular punctual payments to your credit card company. Begin by deciding on a realistic payment schedule that will allow you to begin repaying delinquent debt at the same time continuing to maintain a positive status with those lenders with whom you are still in good standing. You'll find that most creditors and collection agencies will be happy work with you to set up a reasonable payment plan.
Poor credit score is not a problem, if nessesary steps are initiated, but each action should be taken cautiously. It's real to get your visa back when you spoiled you credit score, but its gonna be not easy. The credit card issuers work with understand that a poor credit score can be hard to overcome. That's why you can and should fill application for debit credit cards, maintain their balance and show your lenders, that you are trusworthy. Any day, they will offer you a regular credit card with no security deposit. That's how you can reach the goal: take responsibility and your lenders will love you again.
By Expert Author: Michael Huch
Article Source: http://www.articlesphere.com/
For people with bad credit history, it's already a tough road trying to own a car or a real estate. Low credit score is avoided like plague by general bunch of bankers, but a handful of other financers are always ready to give credit cards to people with bad credit history. Help you to improve your poor credit score is not as easy, but its possible.
The first thing you have to do is to obtain and review your credit report from each of the three national credit bureaus - Experian, Equifax and TransUnion - and make sure, if the data containted in these reports is accurate. Any information that is not accurate should be reported right away to the national bureau reporting the inaccurate information.
Then you have to to understand, that you have some options to recover your lost credit score points, but bad credit history recover can take some time. When you are trying to achieve bad credit history repair, you may run into a number of some disappointments and frustrations, however, if you do fall into bad credit, it is important that bad credit history recover is implemented. So this is why bad credit history repair is so important. The most important factor of improving bad credit history is - maintaning regular punctual payments to your credit card company. Begin by deciding on a realistic payment schedule that will allow you to begin repaying delinquent debt at the same time continuing to maintain a positive status with those lenders with whom you are still in good standing. You'll find that most creditors and collection agencies will be happy work with you to set up a reasonable payment plan.
Poor credit score is not a problem, if nessesary steps are initiated, but each action should be taken cautiously. It's real to get your visa back when you spoiled you credit score, but its gonna be not easy. The credit card issuers work with understand that a poor credit score can be hard to overcome. That's why you can and should fill application for debit credit cards, maintain their balance and show your lenders, that you are trusworthy. Any day, they will offer you a regular credit card with no security deposit. That's how you can reach the goal: take responsibility and your lenders will love you again.
By Expert Author: Michael Huch
Article Source: http://www.articlesphere.com/
Financing College Expenses With Student Loans Or with Credit Cards?
Financing College Expenses With Student Loans Or with Credit Cards?
Students always need finance to cover the expenses of daily life. Buying books, paying for rent, groceries, services, etc. can add up to considerable amounts that must be paid somehow. The easiest way is to use a credit card; credit cards are always in hand and are a very comfortable payment method.
But what happens when you will not have enough money by the next month to pay the whole balance? Or, in other words, what if you need finance to make ends meet? Is a credit card the best source of finance or are there other options that you can turn to if you need funds to cover your expenses?
All these questions will be answered in the following paragraphs. What we want to make students understand is that finance is a serious issue that should be well thought. Rushing in and choosing the easiest path can lead to unfortunate consequences that can easily be avoided by doing a bit of research and making conscious decisions.
Other Finance Sources
The truth is that when it comes to students, lenders are more flexible and a student will be able to get finance at low interest rates without too much hassle as long as he is willing to go through the process of applying for a loan.
Many people feel that using a credit card and getting finance through it is not borrowing money, but it is. There is no difference between that and applying for a loan. So, given that either way you will owe someone money, you might as well borrow money with a lower interest rate.
Federal Loans carry the lowest interest rates when it comes to student loans. The interest rate charged for a federal loan is usually below 6%. Another benefit that comes with this kind of loans is that the repayment is deferred till graduation. Moreover, you can sometimes agree a deferment of up to a year after graduation.
Regular loans on the other hand carry somewhat higher interest rates but nevertheless lower than other unsecured personal loans. Repayment can also be deferred and payment schedules can last longer than federal loans. Also, private loans provide higher loan amounts than federal loans.
Credit Cards
If you choose to finance yourself with credit cards, you must understand that costs will be a lot higher. Unless you always pay your balance in full (in which case you would not be financing) the interest rate you will be charged for credit will be as high as 20%, let alone other charges and fees like insurance, issuing costs, etc.
Not only is the interest rate a lot higher, but it is also not fixed. So variations in market conditions may increase the interest rate charged and you will end up paying a lot more than you expected. Besides you cannot defer payment, you will have to begin to pay for your purchases the following month. And if you choose to pay the minimum you will end up accumulating debt which is a dangerous thing to do as the minimum will increase every month and you will end up being unable to pay your credit card balance.
By Expert Author: Devora Witts
Article Source: http://www.articlesphere.com/
Students always need finance to cover the expenses of daily life. Buying books, paying for rent, groceries, services, etc. can add up to considerable amounts that must be paid somehow. The easiest way is to use a credit card; credit cards are always in hand and are a very comfortable payment method.
But what happens when you will not have enough money by the next month to pay the whole balance? Or, in other words, what if you need finance to make ends meet? Is a credit card the best source of finance or are there other options that you can turn to if you need funds to cover your expenses?
All these questions will be answered in the following paragraphs. What we want to make students understand is that finance is a serious issue that should be well thought. Rushing in and choosing the easiest path can lead to unfortunate consequences that can easily be avoided by doing a bit of research and making conscious decisions.
Other Finance Sources
The truth is that when it comes to students, lenders are more flexible and a student will be able to get finance at low interest rates without too much hassle as long as he is willing to go through the process of applying for a loan.
Many people feel that using a credit card and getting finance through it is not borrowing money, but it is. There is no difference between that and applying for a loan. So, given that either way you will owe someone money, you might as well borrow money with a lower interest rate.
Federal Loans carry the lowest interest rates when it comes to student loans. The interest rate charged for a federal loan is usually below 6%. Another benefit that comes with this kind of loans is that the repayment is deferred till graduation. Moreover, you can sometimes agree a deferment of up to a year after graduation.
Regular loans on the other hand carry somewhat higher interest rates but nevertheless lower than other unsecured personal loans. Repayment can also be deferred and payment schedules can last longer than federal loans. Also, private loans provide higher loan amounts than federal loans.
Credit Cards
If you choose to finance yourself with credit cards, you must understand that costs will be a lot higher. Unless you always pay your balance in full (in which case you would not be financing) the interest rate you will be charged for credit will be as high as 20%, let alone other charges and fees like insurance, issuing costs, etc.
Not only is the interest rate a lot higher, but it is also not fixed. So variations in market conditions may increase the interest rate charged and you will end up paying a lot more than you expected. Besides you cannot defer payment, you will have to begin to pay for your purchases the following month. And if you choose to pay the minimum you will end up accumulating debt which is a dangerous thing to do as the minimum will increase every month and you will end up being unable to pay your credit card balance.
By Expert Author: Devora Witts
Article Source: http://www.articlesphere.com/
8 Consumer Credit System Myths
8 Consumer Credit System Myths
Misinformation and half-truths abound in discussions about credit reporting and scoring. People have so many different ideas about what is true when it comes to dealing with their credit that regardless of the question you ask, you are liable to get a wide variety of conflicting information.
At the end of the day, all this ignorance about the credit system does nothing but help the lenders and other financial institutions who use your credit information. If people simply knew a little more about their credit, they would be able to take steps to improve their credit. By improving their credit, people could avoid having to pay the high interest rates that pad the lenders profits.
What follows are some of the myths people believe to be true about the consumer credit system. By distancing yourself from these defeatist fallacies, you can open yourself up to learning the truth about your credit and what you can do to manage it.
1) The Myth: The big three credit bureaus (Equifax, Experian, and Trans Union) are official agencies tasked with maintaining your credit reports.
The Truth: These three companies are just that, for-profit companies. The big three credit bureaus are businesses who make money by collecting consumers financial information and then selling it to creditors, marketers, employers, and even back to you I the form of your credit reports.
2) The Myth: There law states that your creditors must report late payments, collections, charged off accounts, etc. to the credit bureaus. Once these items are added to your credit reports, they must remain on your reports for 7 years.
The Truth: The Fair Credit Reporting Act (FCRA) does not require anything to be reported to the credit bureaus. In addition, the FCRA does not list a minimum amount of time that reported items must be listed on you credit reports. It only requires that listings remain on your credit reports for no more than 7 years for most items. The truth is that your creditors can remove items from your credit reports at any time.
3) The Myth: There is nothing you can legally do to repair your credit.
The Truth: There is a wide variety of things you can do to add positive credit to and remove bad credit from your credit reports. Every law that applies to the credit bureaus is written to protect you. By taking advantage of their rights under these laws, people have forced the credit bureaus to permanently delete millions of negative items from their credit reports. For every person that claims that it is impossible to remove bad credit from your credit reports, there is another person who has already done it.
4) The Myth: It is impossible to remove accurate information from your credit reports.
The Truth: Actually, this myth is correct, but not in the way most people think. When the FTC talks about removing accurate information from your credit reports, they are using the word "accurate" in the legal sense as defined by numerous credit laws and legal decisions. To help get a better understanding of what their version of "accurate" means, it helps to know what is considered inaccurate. According to the law, inaccurate credit listings also include listings that are untimely, misleading, biased, incomplete, and unverifiable.
So yes, it is impossible to remove "accurate" negative information form your credit reports, but many of the things you think may be accurate right now you will know are actually misleading, biased, unverifiable, etc. once you learn more about the consumer credit laws.
5) The Myth: It doesn't matter if something gets removed from your credit reports, it will just come back.
The Truth: While it is possible for a deleted item to reappear on your credit reports, it is rare. The FCRA makes it more difficult from the credit bureaus to re-report an item to help protect you from having to continually dispute the same items over and over again.
6) The Myth: It is illegal for anyone to repair your credit for you.
The Truth: You have the right to enlist the help of a credit repair professional if you so choose. In fact, U.S. District Court Judge, J. Wexler said about credit repair companies that "since allowing third parties to assist consumers will likely lead to the expedited correction of credit reports, it will further the purposes of the [fair credit reporting] acts."
7) The Myth: There is no reason to use a credit repair company because you can repair your own credit for free.
The Truth: While people point out that you can save money by repairing your own credit, they rarely mention the other costs associated with repairing your own credit reports. Aside from the material costs of mailing certified letters (a practice that is recommended by most credit repair experts), many people also have to spend a significant amount of time learning about the various credit laws, learning the tactics for writing effective dispute letters, dealing with credit bureau stall letters and information requests, and other tasks associated with managing the credit repair process.
When considering all the costs involved with repairing their own credit, many people find that it is more than worth the money to have someone else repair their credit for them.
8) The Myth: Repairing your own credit is easy.
The Truth: For a few people, repairing their credit is easy. Most people find out that the opposite is true. Remember that lenders want to keep your credit score low and the credit bureaus do not want to deal with you because there is no money in it. The law may be on your side, but these organizations are not and they will work to make the credit repair process difficult. People may say that all you have to do is write a dispute letter and send it to the credit bureaus. But what do you do when this doesn't work for you? At that point, the real work of credit repair begins.
To illustrate the difficulty of repairing your own credit, consider that, according to a survey of over 2,000 Lexington Law credit repair clients, almost 40% had attempted to repair their credit on their own before enlisting the help of the firm.
By Expert Author: Stuart Hunter
Article Source: http://www.articlesphere.com/
Misinformation and half-truths abound in discussions about credit reporting and scoring. People have so many different ideas about what is true when it comes to dealing with their credit that regardless of the question you ask, you are liable to get a wide variety of conflicting information.
At the end of the day, all this ignorance about the credit system does nothing but help the lenders and other financial institutions who use your credit information. If people simply knew a little more about their credit, they would be able to take steps to improve their credit. By improving their credit, people could avoid having to pay the high interest rates that pad the lenders profits.
What follows are some of the myths people believe to be true about the consumer credit system. By distancing yourself from these defeatist fallacies, you can open yourself up to learning the truth about your credit and what you can do to manage it.
1) The Myth: The big three credit bureaus (Equifax, Experian, and Trans Union) are official agencies tasked with maintaining your credit reports.
The Truth: These three companies are just that, for-profit companies. The big three credit bureaus are businesses who make money by collecting consumers financial information and then selling it to creditors, marketers, employers, and even back to you I the form of your credit reports.
2) The Myth: There law states that your creditors must report late payments, collections, charged off accounts, etc. to the credit bureaus. Once these items are added to your credit reports, they must remain on your reports for 7 years.
The Truth: The Fair Credit Reporting Act (FCRA) does not require anything to be reported to the credit bureaus. In addition, the FCRA does not list a minimum amount of time that reported items must be listed on you credit reports. It only requires that listings remain on your credit reports for no more than 7 years for most items. The truth is that your creditors can remove items from your credit reports at any time.
3) The Myth: There is nothing you can legally do to repair your credit.
The Truth: There is a wide variety of things you can do to add positive credit to and remove bad credit from your credit reports. Every law that applies to the credit bureaus is written to protect you. By taking advantage of their rights under these laws, people have forced the credit bureaus to permanently delete millions of negative items from their credit reports. For every person that claims that it is impossible to remove bad credit from your credit reports, there is another person who has already done it.
4) The Myth: It is impossible to remove accurate information from your credit reports.
The Truth: Actually, this myth is correct, but not in the way most people think. When the FTC talks about removing accurate information from your credit reports, they are using the word "accurate" in the legal sense as defined by numerous credit laws and legal decisions. To help get a better understanding of what their version of "accurate" means, it helps to know what is considered inaccurate. According to the law, inaccurate credit listings also include listings that are untimely, misleading, biased, incomplete, and unverifiable.
So yes, it is impossible to remove "accurate" negative information form your credit reports, but many of the things you think may be accurate right now you will know are actually misleading, biased, unverifiable, etc. once you learn more about the consumer credit laws.
5) The Myth: It doesn't matter if something gets removed from your credit reports, it will just come back.
The Truth: While it is possible for a deleted item to reappear on your credit reports, it is rare. The FCRA makes it more difficult from the credit bureaus to re-report an item to help protect you from having to continually dispute the same items over and over again.
6) The Myth: It is illegal for anyone to repair your credit for you.
The Truth: You have the right to enlist the help of a credit repair professional if you so choose. In fact, U.S. District Court Judge, J. Wexler said about credit repair companies that "since allowing third parties to assist consumers will likely lead to the expedited correction of credit reports, it will further the purposes of the [fair credit reporting] acts."
7) The Myth: There is no reason to use a credit repair company because you can repair your own credit for free.
The Truth: While people point out that you can save money by repairing your own credit, they rarely mention the other costs associated with repairing your own credit reports. Aside from the material costs of mailing certified letters (a practice that is recommended by most credit repair experts), many people also have to spend a significant amount of time learning about the various credit laws, learning the tactics for writing effective dispute letters, dealing with credit bureau stall letters and information requests, and other tasks associated with managing the credit repair process.
When considering all the costs involved with repairing their own credit, many people find that it is more than worth the money to have someone else repair their credit for them.
8) The Myth: Repairing your own credit is easy.
The Truth: For a few people, repairing their credit is easy. Most people find out that the opposite is true. Remember that lenders want to keep your credit score low and the credit bureaus do not want to deal with you because there is no money in it. The law may be on your side, but these organizations are not and they will work to make the credit repair process difficult. People may say that all you have to do is write a dispute letter and send it to the credit bureaus. But what do you do when this doesn't work for you? At that point, the real work of credit repair begins.
To illustrate the difficulty of repairing your own credit, consider that, according to a survey of over 2,000 Lexington Law credit repair clients, almost 40% had attempted to repair their credit on their own before enlisting the help of the firm.
By Expert Author: Stuart Hunter
Article Source: http://www.articlesphere.com/
Personal Lines Of Credit Instead Of Overdraft Agreements
Personal Lines Of Credit Instead Of Overdraft Agreements
Almost everyone with a bank account has obtained an overdraft agreement and uses it from time to time when they find themselves short on cash. However, what not everybody knows is that overdraft agreements tend to carry high interest rates and though the amount are not significant, if you use it often it may cost you thousands of dollars over the year. Personal Lines of Credit are a much cheaper alternative that must be considered.
The fees charged for overdraft can be considerably high and you should know that there are other options available for getting some ease when you run out of cash by the end of the month. Personal lines of credit can be easily obtained and the interest rates charged for them compared to the overdraft fees are insignificant.
Concept Of Overdraft
An overdraft is the amount by which withdrawals or payments against an account exceed the deposits available in it. An overdraft agreement is the extension of credit by a lending institution that allows such withdrawals without penalty fees. Most overdraft agreements have costs that are usually charged in the form of fees.
Nevertheless, there are certain accounts that include all costs in the same fee. Thus the fee you pay includes maintenance charges, card issuing charges, overdraft charges, etc. Other accounts charge an interest rate over the amount you withdraw exceeding your deposits. These ones usually allow for higher withdrawals, usually up to $2000 or more.
Concept Of Line Of Credit
A line of credit is a revolving account with a certain credit limit defined at the time of approval by the lender. Up to this specified limit, the borrower can withdraw as much money as needed. If the limit is surpassed, the account is blocked and no more money can be withdrawn even after repayment unless the lender authorizes further transactions.
Repayment is not fixed either. Though there is a minimum payment usually consistent of interest on the money withdrawn, the borrower can repay the amount he wants at any time. That money becomes available again for him to withdraw if needed. The borrower can withdraw as much money as he wants and as many times as he needs provided he does not exceed the pre-defined limit.
Types Of Lines Of Credit
Lines of credit can be secured or unsecured. Secured lines of credit are usually guaranteed with equity just like mortgage loans or home-equity loans. These lines of credit carry incredibly low interest rates which turns them into an inexpensive and flexible financing tool for those who need credit at non-defined times.
Unsecured lines of credit carry higher interest rates and thus are not the best option. Nevertheless, the rate charged for unsecured lines of credit is lower than the one charged for overdraft agreements in most cases. All lines of credit however, secured or unsecured carry variable interest rates that can change according to market variations.
Lines of credit offer a lot more flexibility than overdraft agreements because the amounts in terms of credit are generally larger. Besides, the interest rate is significantly lower which turns them into a much cheaper alternative for satisfying your cash needs. And though they carry the risk of repossession, among lines of credit, home equity lines of credit are undoubtedly the best choice.
By Expert Author: Melissa Kellett
Article Source: http://www.articlesphere.com/
Almost everyone with a bank account has obtained an overdraft agreement and uses it from time to time when they find themselves short on cash. However, what not everybody knows is that overdraft agreements tend to carry high interest rates and though the amount are not significant, if you use it often it may cost you thousands of dollars over the year. Personal Lines of Credit are a much cheaper alternative that must be considered.
The fees charged for overdraft can be considerably high and you should know that there are other options available for getting some ease when you run out of cash by the end of the month. Personal lines of credit can be easily obtained and the interest rates charged for them compared to the overdraft fees are insignificant.
Concept Of Overdraft
An overdraft is the amount by which withdrawals or payments against an account exceed the deposits available in it. An overdraft agreement is the extension of credit by a lending institution that allows such withdrawals without penalty fees. Most overdraft agreements have costs that are usually charged in the form of fees.
Nevertheless, there are certain accounts that include all costs in the same fee. Thus the fee you pay includes maintenance charges, card issuing charges, overdraft charges, etc. Other accounts charge an interest rate over the amount you withdraw exceeding your deposits. These ones usually allow for higher withdrawals, usually up to $2000 or more.
Concept Of Line Of Credit
A line of credit is a revolving account with a certain credit limit defined at the time of approval by the lender. Up to this specified limit, the borrower can withdraw as much money as needed. If the limit is surpassed, the account is blocked and no more money can be withdrawn even after repayment unless the lender authorizes further transactions.
Repayment is not fixed either. Though there is a minimum payment usually consistent of interest on the money withdrawn, the borrower can repay the amount he wants at any time. That money becomes available again for him to withdraw if needed. The borrower can withdraw as much money as he wants and as many times as he needs provided he does not exceed the pre-defined limit.
Types Of Lines Of Credit
Lines of credit can be secured or unsecured. Secured lines of credit are usually guaranteed with equity just like mortgage loans or home-equity loans. These lines of credit carry incredibly low interest rates which turns them into an inexpensive and flexible financing tool for those who need credit at non-defined times.
Unsecured lines of credit carry higher interest rates and thus are not the best option. Nevertheless, the rate charged for unsecured lines of credit is lower than the one charged for overdraft agreements in most cases. All lines of credit however, secured or unsecured carry variable interest rates that can change according to market variations.
Lines of credit offer a lot more flexibility than overdraft agreements because the amounts in terms of credit are generally larger. Besides, the interest rate is significantly lower which turns them into a much cheaper alternative for satisfying your cash needs. And though they carry the risk of repossession, among lines of credit, home equity lines of credit are undoubtedly the best choice.
By Expert Author: Melissa Kellett
Article Source: http://www.articlesphere.com/
Release Your Home Equity And Relax
Release Your Home Equity And Relax
If you are in desperately need of cash and you can not get approved for unsecured loans due to your bad credit history, you needn’t get depressed or despair. Home equity loans can provide you with all the financing you need at very reasonable rates and with loan installments you will be able to afford with ease.
Home equity loans have so advantageous terms that more and more people are requesting them everyday. It is such a simple finance solution that homeowners have nothing to worry about if something unexpected happened and they need extra cash to cope with it. They just need to request a home equity loan, sit down and relax.
Equity Provides Larger Loan Amounts
When requesting a home equity loan, you can be confident to get larger loan amounts than with unsecured loans. Provided that you have sufficient equity on your home, you will be able to get up to 85% or 90% financing on your home value. Only those with perfect credit can aspire to obtain 100% financing or even more.
If you have $40,000 of equity left on your home, you will not be able to get that total amount unless you have perfect credit. The amount of your home loan and the amount of you home equity loan added up usually can reach up to 85% of the home value. Thus, if you have an outstanding mortgage of $60,000, you will be able to get only $25,000 on your home equity loan.
Equity Provides Lower Interest Rates
Home equity loans carry lower interest rates than any other kind of loans. The only loans that may carry a slightly lower rate are home loans and certain subsidized student loans, business loans and home loans. Moreover, compared with cash advance loans, credit cards, pay day loans and other unsecured loans, the interest rate charged by home equity loans is drastically lower.
Though your credit score may modify the interest rate you will have to pay upon loan approval, given that home equity loans are secured loans, the interest rate will not vary that much. Moreover, home equity loans are the only way for bad credit applicants to get competitive rates. With unsecured loans bad credit applicants usually get nothing but abusive interest rates.
Equity Provides Longer Repayment Programs
Another benefit that home equity loans provide is the fact that these loans come with longer repayment programs. Thus, by extending the loan’s term, you can easily obtain low and affordable monthly payments so as to fit any budget. Compared to unsecured loans, these loans provide very flexible repayment programs.
While unsecured loans can generally be repaid in up to 48 months, home equity loans can last as much as 10 years and sometimes even more. This is particularly useful when you need to request high loan amounts because otherwise, the loan installments would be completely unaffordable.
Equity Provides Easy Approval
Finally, as regards to loan approval, since home equity loans reduce considerably the risk involved for the lender in the financial transaction, the approval process is fast and without hassles. There are not many credit requirements for loan approval. Moreover, there are some lenders that will approve home equity loans for people who have had recent bankruptcies or defaults.
By Expert Author: Melissa Kellett
Article Source: http://www.articlesphere.com/
If you are in desperately need of cash and you can not get approved for unsecured loans due to your bad credit history, you needn’t get depressed or despair. Home equity loans can provide you with all the financing you need at very reasonable rates and with loan installments you will be able to afford with ease.
Home equity loans have so advantageous terms that more and more people are requesting them everyday. It is such a simple finance solution that homeowners have nothing to worry about if something unexpected happened and they need extra cash to cope with it. They just need to request a home equity loan, sit down and relax.
Equity Provides Larger Loan Amounts
When requesting a home equity loan, you can be confident to get larger loan amounts than with unsecured loans. Provided that you have sufficient equity on your home, you will be able to get up to 85% or 90% financing on your home value. Only those with perfect credit can aspire to obtain 100% financing or even more.
If you have $40,000 of equity left on your home, you will not be able to get that total amount unless you have perfect credit. The amount of your home loan and the amount of you home equity loan added up usually can reach up to 85% of the home value. Thus, if you have an outstanding mortgage of $60,000, you will be able to get only $25,000 on your home equity loan.
Equity Provides Lower Interest Rates
Home equity loans carry lower interest rates than any other kind of loans. The only loans that may carry a slightly lower rate are home loans and certain subsidized student loans, business loans and home loans. Moreover, compared with cash advance loans, credit cards, pay day loans and other unsecured loans, the interest rate charged by home equity loans is drastically lower.
Though your credit score may modify the interest rate you will have to pay upon loan approval, given that home equity loans are secured loans, the interest rate will not vary that much. Moreover, home equity loans are the only way for bad credit applicants to get competitive rates. With unsecured loans bad credit applicants usually get nothing but abusive interest rates.
Equity Provides Longer Repayment Programs
Another benefit that home equity loans provide is the fact that these loans come with longer repayment programs. Thus, by extending the loan’s term, you can easily obtain low and affordable monthly payments so as to fit any budget. Compared to unsecured loans, these loans provide very flexible repayment programs.
While unsecured loans can generally be repaid in up to 48 months, home equity loans can last as much as 10 years and sometimes even more. This is particularly useful when you need to request high loan amounts because otherwise, the loan installments would be completely unaffordable.
Equity Provides Easy Approval
Finally, as regards to loan approval, since home equity loans reduce considerably the risk involved for the lender in the financial transaction, the approval process is fast and without hassles. There are not many credit requirements for loan approval. Moreover, there are some lenders that will approve home equity loans for people who have had recent bankruptcies or defaults.
By Expert Author: Melissa Kellett
Article Source: http://www.articlesphere.com/
Managing Your Credit
Managing Your Credit
Nearly every consumer will have at least one inaccurate item included on their credit report, and it is up to you, the consumer, to make sure your credit file is accurate, verifiable and complete. According to the Wall Street Journal, from 2004 to 2006, more than 2,500 banks, thrifts, credit unions and mortgage companies made a combined $1.5 trillion in high-interest-rate loans, and the Mortgage Bankers Association reported that every three months, approximately 167,000 new families enter into foreclosure in the United States.
To ensure an accurate credit report, we recommend that you check your report from at least one of the three Credit Bureaus – TransUnion, Experian, and Equifax – every six months. The tricky part about managing your credit is that the information provided to the three Credit Bureaus comes directly from your creditors, and you will rarely if ever be notified of the information provided. This requires you to check your report often to identify erroneous information early. Credit Bureaus take into account the date that inaccurate items were reported and usually respond more positively if they know that you manage your credit carefully and check your reports often.
With the recent rollout of a new federal law, you are now entitled to one free credit report from each of the three Credit Bureaus per year. You can receive your free credit report in one of three ways. To request your free report online, visit www.annualcreditreport.com, or to request by phone call (877) 322-8228, or you can complete the form on the back of the Annual Credit Report Request brochure, and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281.
If you've been denied credit, insurance or employment because of your credit report, then you are entitled to a free copy of your report from the reporting agency. The company to which you applied must supply the Credit Bureau's name, address and telephone number, but you must act quickly as you have a total of 60 days after receiving the denial notice to request your free report.
After obtaining a copy of your credit report, review each account carefully checking for even the smallest details including spelling errors, outdated or incomplete information and inaccurate account histories. Every credit report is laid out slightly different, so find a company that provides a report that is easy for you to read and file. Next, you need to start a detailed log of all the potential problems in the report, and be sure to include creditor contact information and the nature of the item in dispute. Make a thorough list of the items in dispute and gather ALL supporting information to help build a case for your position. Be meticulous in your documentation. Proper documentation is the key to winning any successful credit dispute.
Visit www.idealfsi.com for more information on building and managing credit.
By Expert Author: Chad Sunyich
Article Source: http://www.articlesphere.com/
Nearly every consumer will have at least one inaccurate item included on their credit report, and it is up to you, the consumer, to make sure your credit file is accurate, verifiable and complete. According to the Wall Street Journal, from 2004 to 2006, more than 2,500 banks, thrifts, credit unions and mortgage companies made a combined $1.5 trillion in high-interest-rate loans, and the Mortgage Bankers Association reported that every three months, approximately 167,000 new families enter into foreclosure in the United States.
To ensure an accurate credit report, we recommend that you check your report from at least one of the three Credit Bureaus – TransUnion, Experian, and Equifax – every six months. The tricky part about managing your credit is that the information provided to the three Credit Bureaus comes directly from your creditors, and you will rarely if ever be notified of the information provided. This requires you to check your report often to identify erroneous information early. Credit Bureaus take into account the date that inaccurate items were reported and usually respond more positively if they know that you manage your credit carefully and check your reports often.
With the recent rollout of a new federal law, you are now entitled to one free credit report from each of the three Credit Bureaus per year. You can receive your free credit report in one of three ways. To request your free report online, visit www.annualcreditreport.com, or to request by phone call (877) 322-8228, or you can complete the form on the back of the Annual Credit Report Request brochure, and mail it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA, 30348-5281.
If you've been denied credit, insurance or employment because of your credit report, then you are entitled to a free copy of your report from the reporting agency. The company to which you applied must supply the Credit Bureau's name, address and telephone number, but you must act quickly as you have a total of 60 days after receiving the denial notice to request your free report.
After obtaining a copy of your credit report, review each account carefully checking for even the smallest details including spelling errors, outdated or incomplete information and inaccurate account histories. Every credit report is laid out slightly different, so find a company that provides a report that is easy for you to read and file. Next, you need to start a detailed log of all the potential problems in the report, and be sure to include creditor contact information and the nature of the item in dispute. Make a thorough list of the items in dispute and gather ALL supporting information to help build a case for your position. Be meticulous in your documentation. Proper documentation is the key to winning any successful credit dispute.
Visit www.idealfsi.com for more information on building and managing credit.
By Expert Author: Chad Sunyich
Article Source: http://www.articlesphere.com/
Credit Report and Score
Credit Report and Score
This article focuses on the basic concept and pattern of US credit and other credit related issues like credit report, credit bureaus, credit score, and ways to improve the credit core.
Credit is the money you borrow from somebody. Whenever you borrow money you become the debtor and the person who is crediting you the money is the creditor. Whenever you get a credit from somebody, it automatically implies that you need to repay the amount to the person you borrowed from within a certain period of time and with certain rate of interest. When you start making payment on your credit, the details of your payment gets reflected on your credit report.
Credit Report:
Credit Report is a statement which shows the public records, inquiries and the personal and credit details of an individual. This report is prepared by each of the three Credit Reporting Agencies – Equifax, Transunion, and Experian.
* Personal details include the name, current and previous addresses, date of birth, employers – both current and previous, social security number and the telephone numbers of the individual.
* Credit details include the debt amount, the monthly repayment of the debts, and all other lines of credit including credit cards.
* Inquiries include all the new lines of credit for which a person have applied over the last two years and finally
* Public records include the bankruptcy, foreclosures, tax liens and judgments that are put against the person.
All the information on your credit report is taken into account while computing your credit score.
Credit Score (FICO score)
Credit score is a numerical three digit number generated on the basis of your credit report. Lenders usually use these scores to predict your potentiality as a borrower. This score was developed by Fair Isaac and Company, and so it is popularly known as the FICO score. The scale runs from 300 to 850 with higher score representing higher credit worthiness and hence a favorable interest rate for your loans. A score of 720 and above is considered the most favorable as it helps in getting loans at a very low interest rate.
FICO score is based on the credit information from the credit report. This credit information is divided into five categories which include the payment history, amounts owed, length of credit history, new credit and the types of credit used.
Ways to improve your credit score:Improved credit score is always desirable since it gives you advantage in getting loans at favorable rate. But to have a high credit score, all you need to have is a good payment history. For this it is always essential that you do not close any existing credit cards accounts if it already has a good payment history. Even if you have not used the card yet, try and start using the card to make monthly utility bill payments and then repay the debt on time. In this way you can start building up your credit history. Moreover try to avoid applying for too many lines of credit as there will be credit inquiries whenever you apply for a new credit which will get reflected in your credit report. More and more credit inquiries suggest that you are credit hungry which will have a negative impact to your credit report and hence reduce your credit score.
By Expert Author: Lucy Matthews
Article Source: http://www.articlesphere.com/
This article focuses on the basic concept and pattern of US credit and other credit related issues like credit report, credit bureaus, credit score, and ways to improve the credit core.
Credit is the money you borrow from somebody. Whenever you borrow money you become the debtor and the person who is crediting you the money is the creditor. Whenever you get a credit from somebody, it automatically implies that you need to repay the amount to the person you borrowed from within a certain period of time and with certain rate of interest. When you start making payment on your credit, the details of your payment gets reflected on your credit report.
Credit Report:
Credit Report is a statement which shows the public records, inquiries and the personal and credit details of an individual. This report is prepared by each of the three Credit Reporting Agencies – Equifax, Transunion, and Experian.
* Personal details include the name, current and previous addresses, date of birth, employers – both current and previous, social security number and the telephone numbers of the individual.
* Credit details include the debt amount, the monthly repayment of the debts, and all other lines of credit including credit cards.
* Inquiries include all the new lines of credit for which a person have applied over the last two years and finally
* Public records include the bankruptcy, foreclosures, tax liens and judgments that are put against the person.
All the information on your credit report is taken into account while computing your credit score.
Credit Score (FICO score)
Credit score is a numerical three digit number generated on the basis of your credit report. Lenders usually use these scores to predict your potentiality as a borrower. This score was developed by Fair Isaac and Company, and so it is popularly known as the FICO score. The scale runs from 300 to 850 with higher score representing higher credit worthiness and hence a favorable interest rate for your loans. A score of 720 and above is considered the most favorable as it helps in getting loans at a very low interest rate.
FICO score is based on the credit information from the credit report. This credit information is divided into five categories which include the payment history, amounts owed, length of credit history, new credit and the types of credit used.
Ways to improve your credit score:Improved credit score is always desirable since it gives you advantage in getting loans at favorable rate. But to have a high credit score, all you need to have is a good payment history. For this it is always essential that you do not close any existing credit cards accounts if it already has a good payment history. Even if you have not used the card yet, try and start using the card to make monthly utility bill payments and then repay the debt on time. In this way you can start building up your credit history. Moreover try to avoid applying for too many lines of credit as there will be credit inquiries whenever you apply for a new credit which will get reflected in your credit report. More and more credit inquiries suggest that you are credit hungry which will have a negative impact to your credit report and hence reduce your credit score.
By Expert Author: Lucy Matthews
Article Source: http://www.articlesphere.com/
Establishing Credit Helps to Build Financial Stability
Establishing Credit Helps to Build Financial Stability
One of the problems many people find when they first go to make a large purchase such as a car or house is that they do not have the necessary credit in order to receive financing. This does not mean that they have bad credit, but they have not proven that they are responsible with credit to any potential lenders.
There are several steps you can take to establish your credit. One of the first things you will want to do is to open a checking and savings account. You should be able to get these for no fees and low if any balance requirements, making them easy to use. Though it’s possible to live without such accounts, they are a positive way to build credit and prove that you have money in the bank. Another great reason to get a checking or savings account with a financial institution such as a bank or credit union is that they are a great place to apply for loans in the future since you have already established a relationship with them.
Another way to establish and build credit is to open a credit card. A store card is easier to obtain, but it also less usable and will have a smaller balance. A major credit card will carry a larger balance and be accepted at most locations. Regardless of what type of card you get, you will want to make sure to pay off the balance each month in order not to have to pay any fees or interest. If you are worried that you will be tempted to spend beyond your means, do not carry your card around with you but instead file it somewhere safe.
Once you have started these small steps to establishing credit, you will be better equipped and prepared to make larger purchases on credit. These steps you take today will help you reach your financial goals in the future.
By Expert Author: Ronnica Rothe
Article Source: http://www.articlesphere.com/
One of the problems many people find when they first go to make a large purchase such as a car or house is that they do not have the necessary credit in order to receive financing. This does not mean that they have bad credit, but they have not proven that they are responsible with credit to any potential lenders.
There are several steps you can take to establish your credit. One of the first things you will want to do is to open a checking and savings account. You should be able to get these for no fees and low if any balance requirements, making them easy to use. Though it’s possible to live without such accounts, they are a positive way to build credit and prove that you have money in the bank. Another great reason to get a checking or savings account with a financial institution such as a bank or credit union is that they are a great place to apply for loans in the future since you have already established a relationship with them.
Another way to establish and build credit is to open a credit card. A store card is easier to obtain, but it also less usable and will have a smaller balance. A major credit card will carry a larger balance and be accepted at most locations. Regardless of what type of card you get, you will want to make sure to pay off the balance each month in order not to have to pay any fees or interest. If you are worried that you will be tempted to spend beyond your means, do not carry your card around with you but instead file it somewhere safe.
Once you have started these small steps to establishing credit, you will be better equipped and prepared to make larger purchases on credit. These steps you take today will help you reach your financial goals in the future.
By Expert Author: Ronnica Rothe
Article Source: http://www.articlesphere.com/
Get Cash For Your Business Against Future Sells
Get Cash For Your Business Against Future Sells
It is now possible to obtain finance from your merchant account by using the future sells paid with credit cards. There are financial institutions offering loans and lines of credit against your upcoming sells that can provide you with all the funds you need for your business and can solve any cash flow problems that you may have.
This new financial product is helping more and more starting businesses finance the cash flow difficulties that small businesses experience when they are growing. Secured with the expected sells that you and the financial institution budget for the upcoming period, you get a line of credit or a loan for the amount you need to purchase new equipment, hire more personnel, pay for supplies, finance export and import transactions, etc.
Loans And Lines Of Credit
There are loans and lines of credit offered by this method. Loans come with fixed or variable rates and charge lower interest rates compared to unsecured loans and lines of credit. You get a fixed amount that you can repay in small installments so you can finance equipment purchases, temporary cash flow problems, pay for supplies to start up a new line of production, etc.
Lines of credit are revolving accounts that offer cash at a variable interest rate but only charge interests when you actually withdraw money from the account. In the meantime you have an open line of credit knowing that the cash is available whenever you need it. You can withdraw as much money as you need up to the pre-defined limit and repay it the way you want. Usually there are minimum payments consistent of the interests charged for the money borrowed and a small portion of the capital. Up to the credit limit you can withdraw and repay as many times as you need.
How Does It Work?
The money you request is guaranteed by the future sells of your company. Usually, credit card payment processors provide this service. Since they process your credit card sells, they can hold the funds or a portion of the funds you receive and destine them to repaying your debt. Thus, they are sure that as long as you are in business they can have some sort of control over repayment.
Of course, not all funds will be retained as you need cash to operate your company. However, the loan payments will be agreed as well as the minimum payments on your lines of credit and thus, each month, when the financial institution processes your client’s payments, you will get a deduction equal to the agreed amount from your overall sells. Thus, you will not even have to worry about repayment.
This is an excellent system that provides cheap financing for starting businesses as it reduces the risk involved in the transaction for the lender. This is due to the fact that the lender can exercise some control over your sells and know exactly what your repayment capacity is. Thus, with all this information, he can decide the most suitable loan program for your business.
By Expert Author: Amanda Hash
Article Source: http://www.articlesphere.com/
It is now possible to obtain finance from your merchant account by using the future sells paid with credit cards. There are financial institutions offering loans and lines of credit against your upcoming sells that can provide you with all the funds you need for your business and can solve any cash flow problems that you may have.
This new financial product is helping more and more starting businesses finance the cash flow difficulties that small businesses experience when they are growing. Secured with the expected sells that you and the financial institution budget for the upcoming period, you get a line of credit or a loan for the amount you need to purchase new equipment, hire more personnel, pay for supplies, finance export and import transactions, etc.
Loans And Lines Of Credit
There are loans and lines of credit offered by this method. Loans come with fixed or variable rates and charge lower interest rates compared to unsecured loans and lines of credit. You get a fixed amount that you can repay in small installments so you can finance equipment purchases, temporary cash flow problems, pay for supplies to start up a new line of production, etc.
Lines of credit are revolving accounts that offer cash at a variable interest rate but only charge interests when you actually withdraw money from the account. In the meantime you have an open line of credit knowing that the cash is available whenever you need it. You can withdraw as much money as you need up to the pre-defined limit and repay it the way you want. Usually there are minimum payments consistent of the interests charged for the money borrowed and a small portion of the capital. Up to the credit limit you can withdraw and repay as many times as you need.
How Does It Work?
The money you request is guaranteed by the future sells of your company. Usually, credit card payment processors provide this service. Since they process your credit card sells, they can hold the funds or a portion of the funds you receive and destine them to repaying your debt. Thus, they are sure that as long as you are in business they can have some sort of control over repayment.
Of course, not all funds will be retained as you need cash to operate your company. However, the loan payments will be agreed as well as the minimum payments on your lines of credit and thus, each month, when the financial institution processes your client’s payments, you will get a deduction equal to the agreed amount from your overall sells. Thus, you will not even have to worry about repayment.
This is an excellent system that provides cheap financing for starting businesses as it reduces the risk involved in the transaction for the lender. This is due to the fact that the lender can exercise some control over your sells and know exactly what your repayment capacity is. Thus, with all this information, he can decide the most suitable loan program for your business.
By Expert Author: Amanda Hash
Article Source: http://www.articlesphere.com/
Bad Credit Doesn’t Have To Be An Obstacle
Bad Credit Doesn’t Have To Be An Obstacle
Those with bad credit used to find it very hard to get finance with reasonable rates. But nowadays bad credit does not have to be an obstacle anymore in the road to cheap financing. Sometimes people with bad credit can get equal or similar terms on loans as people with a perfect credit score. You just need to know where to apply for a bad credit loan.
There are different types of bad credit loans. Each one has both advantages and drawbacks and knowing them thoroughly will aid you in getting the best deals out of your loan. So, prior to applying for a bad credit loan, analyze all your offers and compare loan terms knowing that each loan type has certain factors you will need to focus on.
The Collateral Factor
The presence of collateral greatly reduces the risk involved in any financial transaction and thus provides fewer requirements for approval along with better loan terms. This does not mean that credit or income requirements will be overlooked by the mere fact of applying for a secured bad credit loan instead of an unsecured loan. However, it is true that you can boost your chances by doing so.
Collateral reduces the risk for the lender because it provides a fair guarantee of the loan repayment. Ideally, in the event of default, the lender can claim his money by the legal action of repossession. The property being used as collateral is then sold and the money obtained from the sell is used to repay the loan plus any damages and the remaining can be claimed by the previous owner or by the other creditors.
Collateral provides then a good means to avoid the problems that bad credit implies and aids bad credit applicants to obtain financing at reasonable rates regardless of past delinquencies recorded into the borrower’s credit report. However, sometimes applicants can not offer collateral and other times it is just not enough.
Bad Credit Loans
Thus, there are bad credit loans based on equity that provide very advantageous terms and fairly good loan amounts. But these loans require collateral and unless you are a homeowner with enough equity available on your home, you will not be able to obtain a home equity loan for people with bad credit.
Fortunately there are bad credit unsecured loans available for people that lack collateral. These loans charge higher interest rates and offer lower loan amounts than secured loans. Yet, the main problem with unsecured bad credit loans is not that, but the fact that qualification is harder and thus, it is a lot easier to obtain a secured loan than an unsecured bad credit loan.
Bad credit unsecured loans are meant for those with bad credit caused by late payments or missed payments. But if your bad credit was originated by defaults or bankruptcy, chances are you will not be able to get approved unless you can provide a co-signer with a good credit score willing to take your place in case you can not afford the monthly payments. This will greatly reduce the risk and thus, ease the requirements for approval.
By Expert Author: Devora Witts
Article Source: http://www.articlesphere.com/
Those with bad credit used to find it very hard to get finance with reasonable rates. But nowadays bad credit does not have to be an obstacle anymore in the road to cheap financing. Sometimes people with bad credit can get equal or similar terms on loans as people with a perfect credit score. You just need to know where to apply for a bad credit loan.
There are different types of bad credit loans. Each one has both advantages and drawbacks and knowing them thoroughly will aid you in getting the best deals out of your loan. So, prior to applying for a bad credit loan, analyze all your offers and compare loan terms knowing that each loan type has certain factors you will need to focus on.
The Collateral Factor
The presence of collateral greatly reduces the risk involved in any financial transaction and thus provides fewer requirements for approval along with better loan terms. This does not mean that credit or income requirements will be overlooked by the mere fact of applying for a secured bad credit loan instead of an unsecured loan. However, it is true that you can boost your chances by doing so.
Collateral reduces the risk for the lender because it provides a fair guarantee of the loan repayment. Ideally, in the event of default, the lender can claim his money by the legal action of repossession. The property being used as collateral is then sold and the money obtained from the sell is used to repay the loan plus any damages and the remaining can be claimed by the previous owner or by the other creditors.
Collateral provides then a good means to avoid the problems that bad credit implies and aids bad credit applicants to obtain financing at reasonable rates regardless of past delinquencies recorded into the borrower’s credit report. However, sometimes applicants can not offer collateral and other times it is just not enough.
Bad Credit Loans
Thus, there are bad credit loans based on equity that provide very advantageous terms and fairly good loan amounts. But these loans require collateral and unless you are a homeowner with enough equity available on your home, you will not be able to obtain a home equity loan for people with bad credit.
Fortunately there are bad credit unsecured loans available for people that lack collateral. These loans charge higher interest rates and offer lower loan amounts than secured loans. Yet, the main problem with unsecured bad credit loans is not that, but the fact that qualification is harder and thus, it is a lot easier to obtain a secured loan than an unsecured bad credit loan.
Bad credit unsecured loans are meant for those with bad credit caused by late payments or missed payments. But if your bad credit was originated by defaults or bankruptcy, chances are you will not be able to get approved unless you can provide a co-signer with a good credit score willing to take your place in case you can not afford the monthly payments. This will greatly reduce the risk and thus, ease the requirements for approval.
By Expert Author: Devora Witts
Article Source: http://www.articlesphere.com/
Business Credit Article 2
Business Credit Article 2
5 Big Mistakes to Avoid When Building Business Credit
There are countless entrepreneurs today operating their businesses in a manner that puts them at great personal risk - risk of being hounded by creditors, poor financing offers on new cars, and even losing their homes. The risk stems from poor money and credit management.
Many business owners are completely unaware of the mistakes they are making, and those who are aware may not understand what they need to do to change. Fortunately, the answer to these problems is simple: avoid these 5 Big Mistakes and start paving the way toward building good business credit, with little or no personal risk.
Mistake #5: Putting Personal Assets at Risk
If you personally guarantee any credit extended to your business, you seriously risk your personal assets, such as your car, savings account, and your home. The most common way entrepreneurs fall into this trap is by setting up their businesses as a Sole Proprietorship. If you have not set up your business as a C-Corporation, S-Corporation or a LLC, then you most likely do not have a tax i.d. number; instead your business is tied to your social security number. This also means you do not have the legal means to separate your corporate credit from your personal credit. If you incorporate your business, you can protect yourself from personal liability.
Mistake #4: Not Paying Bills on Time...100% of the Time
Everyone who has some type of credit file also has a credit history attached to it, and having just one late payment on a line of credit can be held against you for years. This is vital information for entrepreneurs who are working toward building good business credit. Even if you have separated your personal and business credit lines, one late personal payment could affect your corporate credit, and your business’s growth.
Mistake #3: Not Building Corporate Credit the Right Way
Incorporating your business should be a first step toward separating your personal credit from your business credit, but it does not automatically qualify you for corporate credit. Your goal for building business credit is to secure lines of cash credit, not just vendor credit. You will need money to grow your business, and lots of it. The best way to start the process of building business credit is to maintain a physical office (not a PO Box!), obtain a local phone number and 411 listing, and secure a business license. After these steps have been taken, you can begin to build a credit score with business credit bureaus.
Mistake #2: Rushing the Process of Building Business Credit
Just as it took time to build your personal credit, so too does it take time to build good business credit. The goal for building credit is to get cash, but added to that goal is to get cash without a personal guarantee. The industry standard for building business credit and securing cash loans without personal guarantees is two to three years. Do not rush your ultimate goal.
Mistake #1: Using Personal Credit to Finance Your Business
The absolute biggest and most common mistake business owners make is using their personal lines of credit to finance their businesses. This includes paying business expenses with personal credit cards, “borrowing” money from personal savings and investment accounts, and securing personal loans to finance business expenses and expansions. This big mistake lowers your personal credit score because every lending inquiry into your credit history lowers your credit score; it reduces the amount of credit available for personal use because your debt-to-income ratio skyrockets. And should your business fail (as 95% do in the first five years, according to the Small Business Administration), you will be personally liable for all those “personal” loans. You do not have to risk your lifestyle for your livelihood.
By Expert Author: Trent Lee
Article Source: http://www.articlesphere.com/
5 Big Mistakes to Avoid When Building Business Credit
There are countless entrepreneurs today operating their businesses in a manner that puts them at great personal risk - risk of being hounded by creditors, poor financing offers on new cars, and even losing their homes. The risk stems from poor money and credit management.
Many business owners are completely unaware of the mistakes they are making, and those who are aware may not understand what they need to do to change. Fortunately, the answer to these problems is simple: avoid these 5 Big Mistakes and start paving the way toward building good business credit, with little or no personal risk.
Mistake #5: Putting Personal Assets at Risk
If you personally guarantee any credit extended to your business, you seriously risk your personal assets, such as your car, savings account, and your home. The most common way entrepreneurs fall into this trap is by setting up their businesses as a Sole Proprietorship. If you have not set up your business as a C-Corporation, S-Corporation or a LLC, then you most likely do not have a tax i.d. number; instead your business is tied to your social security number. This also means you do not have the legal means to separate your corporate credit from your personal credit. If you incorporate your business, you can protect yourself from personal liability.
Mistake #4: Not Paying Bills on Time...100% of the Time
Everyone who has some type of credit file also has a credit history attached to it, and having just one late payment on a line of credit can be held against you for years. This is vital information for entrepreneurs who are working toward building good business credit. Even if you have separated your personal and business credit lines, one late personal payment could affect your corporate credit, and your business’s growth.
Mistake #3: Not Building Corporate Credit the Right Way
Incorporating your business should be a first step toward separating your personal credit from your business credit, but it does not automatically qualify you for corporate credit. Your goal for building business credit is to secure lines of cash credit, not just vendor credit. You will need money to grow your business, and lots of it. The best way to start the process of building business credit is to maintain a physical office (not a PO Box!), obtain a local phone number and 411 listing, and secure a business license. After these steps have been taken, you can begin to build a credit score with business credit bureaus.
Mistake #2: Rushing the Process of Building Business Credit
Just as it took time to build your personal credit, so too does it take time to build good business credit. The goal for building credit is to get cash, but added to that goal is to get cash without a personal guarantee. The industry standard for building business credit and securing cash loans without personal guarantees is two to three years. Do not rush your ultimate goal.
Mistake #1: Using Personal Credit to Finance Your Business
The absolute biggest and most common mistake business owners make is using their personal lines of credit to finance their businesses. This includes paying business expenses with personal credit cards, “borrowing” money from personal savings and investment accounts, and securing personal loans to finance business expenses and expansions. This big mistake lowers your personal credit score because every lending inquiry into your credit history lowers your credit score; it reduces the amount of credit available for personal use because your debt-to-income ratio skyrockets. And should your business fail (as 95% do in the first five years, according to the Small Business Administration), you will be personally liable for all those “personal” loans. You do not have to risk your lifestyle for your livelihood.
By Expert Author: Trent Lee
Article Source: http://www.articlesphere.com/
Bad Credit So What?
Bad Credit So What?
Everything can be fixed. All problems have a solution and in many cases more than one. Bad credit is not the exception and can be improved dramatically, provided you take immediate action and get cracking to repair your credit. There is more than one way to repair it, as we shall see.
How Can We Repair Bad Credit?
There are two stages to bad credit repair. The first is to get rid of all the inaccurate, outdated and completely erroneous information. This is done by contacting the credit rating agencies and getting them to correct the mistakes. This is the part that means eliminating bad entries.
The Second Stage
This is the building stage, in which you inform all the missing data about favorable situations which were not taken into account. Give proof of what you are stating. Next, comes the build up of fresh good entries. This can only be done by taking several small loans and paying them back on time and if possible, before the due date.
You can use these to pay off small debts, or split a big debt into two and pay the parts with two successive loans. You would be killing two birds with one stone.
Now, You Are Clean
... or at least almost clean. If you still have debt but you are up to date with the payments, you can either pay them off with a smaller loan, or directly apply for a larger loan, directly aimed at investment, maybe a bargain with a car or land on which to build. If you already have a property you can use the equity on your home to invest.
Why Land?
Simply because it will be the best way to secure the loan, adding to your assets. Should you run into any problem, you will be able to sell the property you bought last, to save your home and you have not lost anything at all. Just a little time. On the other hand, if everything comes out as you have planned, you will have two great benefits.
The First
You will have repaired your credit and corrected bad spending habits, which will make you and your family feel safer, better and happier. The second benefit is that you will be learning to invest in a safe way, contributing to your overall progress. However, we recommend further reading if you wish to go into to estate investment.
Start small and learn to potentiate your loans, turning them into capital, not throwing them down the drain as debt payoff. It happened to you once. The best outcome should be, never again.
Bad Credit, So What?
The “So What” expression should not mean, “I do not care”. On the contrary, you do care, but you know now that your credit can be repaired and even taken as an important lesson learnt. Immediately after you have repaired your credit, take advantage of the momentum and with all your positive energy, give your economy an upward thrust. You could be the next millionaire.
By Expert Author: Amanda Hash
Article Source: http://www.articlesphere.com/
Everything can be fixed. All problems have a solution and in many cases more than one. Bad credit is not the exception and can be improved dramatically, provided you take immediate action and get cracking to repair your credit. There is more than one way to repair it, as we shall see.
How Can We Repair Bad Credit?
There are two stages to bad credit repair. The first is to get rid of all the inaccurate, outdated and completely erroneous information. This is done by contacting the credit rating agencies and getting them to correct the mistakes. This is the part that means eliminating bad entries.
The Second Stage
This is the building stage, in which you inform all the missing data about favorable situations which were not taken into account. Give proof of what you are stating. Next, comes the build up of fresh good entries. This can only be done by taking several small loans and paying them back on time and if possible, before the due date.
You can use these to pay off small debts, or split a big debt into two and pay the parts with two successive loans. You would be killing two birds with one stone.
Now, You Are Clean
... or at least almost clean. If you still have debt but you are up to date with the payments, you can either pay them off with a smaller loan, or directly apply for a larger loan, directly aimed at investment, maybe a bargain with a car or land on which to build. If you already have a property you can use the equity on your home to invest.
Why Land?
Simply because it will be the best way to secure the loan, adding to your assets. Should you run into any problem, you will be able to sell the property you bought last, to save your home and you have not lost anything at all. Just a little time. On the other hand, if everything comes out as you have planned, you will have two great benefits.
The First
You will have repaired your credit and corrected bad spending habits, which will make you and your family feel safer, better and happier. The second benefit is that you will be learning to invest in a safe way, contributing to your overall progress. However, we recommend further reading if you wish to go into to estate investment.
Start small and learn to potentiate your loans, turning them into capital, not throwing them down the drain as debt payoff. It happened to you once. The best outcome should be, never again.
Bad Credit, So What?
The “So What” expression should not mean, “I do not care”. On the contrary, you do care, but you know now that your credit can be repaired and even taken as an important lesson learnt. Immediately after you have repaired your credit, take advantage of the momentum and with all your positive energy, give your economy an upward thrust. You could be the next millionaire.
By Expert Author: Amanda Hash
Article Source: http://www.articlesphere.com/
Piggybacking and Repairing Your Credit
Piggybacking and Repairing Your Credit
The practice of piggybacking has been around for years, and many consumers have used it to boost their credit scores. In order for a consumer with bad credit to boost their score, a person with good credit would authorize the bad-credit individual on one or more of their credit lines which artificially boosted the lower credit score and making it appear that the person actually had several positive credit accounts.
Good Intentions of Piggybacking Credit
It may sound a little shady, but the intentions of piggybacking are often good such as a parent helping one of their children to begin establishing good credit or a spouse helping to boost their partner's score. However, a few years ago, several credit repair companies started taking advantage of this practice. For a fee, they would match people with bad credit up with people that had good credit and authorize them on one or more good accounts. The company charged a fee for this credit boosting service, with a percentage going to the party with the good credit and the firm pocketing the rest.
Does FICO Bar Piggybacking?
These abuses of the piggybacking method upset the Fair Isaac's Credit Organization (FICO) and lenders as well. After all, with artificially inflated credit scores, how could they accurately determine a person's credit worthiness and protect themselves from unnecessary financial risks?
As a result of these widespread abuses, FICO decided to bar the use of piggybacking when it revamped its credit scoring model for FICO 08, alleging that these practices basically amounted to fraud. Ultimately, this controversy resulted in a congressional hearing.
Making it Harder to 'Game' the Credit System
As a result of decisions made in a congressional hearing on piggybacking and credit repair, FICO and the other credit bureaus have developed a solution that still allowed for piggybacking, but with new considerations. "We worked very hard with the credit bureaus and lenders to find how important it was to how many people," says Mike Campbell, Chief Operations Officer for FICO. "Fortunately, we were able to come up with technology that makes it much harder to game the system."
Can Piggybacking Still be Used to Repair My Credit?
The simple answer is 'Yes', piggybacking can still be used as a method for credit repair. As a result of the FICO 08 revamp, it may be more difficult to exploit the system using piggybacking, but for now, it is still a valid and useful tool for improving your credit score.
By Expert Author: Anne Hammel
Article Source: http://www.articlesphere.com/
The practice of piggybacking has been around for years, and many consumers have used it to boost their credit scores. In order for a consumer with bad credit to boost their score, a person with good credit would authorize the bad-credit individual on one or more of their credit lines which artificially boosted the lower credit score and making it appear that the person actually had several positive credit accounts.
Good Intentions of Piggybacking Credit
It may sound a little shady, but the intentions of piggybacking are often good such as a parent helping one of their children to begin establishing good credit or a spouse helping to boost their partner's score. However, a few years ago, several credit repair companies started taking advantage of this practice. For a fee, they would match people with bad credit up with people that had good credit and authorize them on one or more good accounts. The company charged a fee for this credit boosting service, with a percentage going to the party with the good credit and the firm pocketing the rest.
Does FICO Bar Piggybacking?
These abuses of the piggybacking method upset the Fair Isaac's Credit Organization (FICO) and lenders as well. After all, with artificially inflated credit scores, how could they accurately determine a person's credit worthiness and protect themselves from unnecessary financial risks?
As a result of these widespread abuses, FICO decided to bar the use of piggybacking when it revamped its credit scoring model for FICO 08, alleging that these practices basically amounted to fraud. Ultimately, this controversy resulted in a congressional hearing.
Making it Harder to 'Game' the Credit System
As a result of decisions made in a congressional hearing on piggybacking and credit repair, FICO and the other credit bureaus have developed a solution that still allowed for piggybacking, but with new considerations. "We worked very hard with the credit bureaus and lenders to find how important it was to how many people," says Mike Campbell, Chief Operations Officer for FICO. "Fortunately, we were able to come up with technology that makes it much harder to game the system."
Can Piggybacking Still be Used to Repair My Credit?
The simple answer is 'Yes', piggybacking can still be used as a method for credit repair. As a result of the FICO 08 revamp, it may be more difficult to exploit the system using piggybacking, but for now, it is still a valid and useful tool for improving your credit score.
By Expert Author: Anne Hammel
Article Source: http://www.articlesphere.com/
วันพฤหัสบดีที่ 9 ตุลาคม พ.ศ. 2551
Improved Credit Score Spells Mantra for Bad Credit Mortgage Approval
Improved Credit Score Spells Mantra for Bad Credit Mortgage Approval
Bad Credit condition of an individual is considered as the worst imagination as creates long
lasting impression on future finance planning's. All future dreams related to mortgage loans will remain on a shaky track. Don't worry we are here to help you out of this condition. Just follow the mantras revealed in below mentioned lines get taste the dreamed mortgage even if you suffered the effects of Bad Credit Mortgage:
In order to get cent percent financing with bad credit, lenders will usually need to see you have a credit score of at least 600 or higher. So go ahead and follow below mentioned mantras to come out of Bad Credit Mortgage:
? Pay-off any small collection accounts or past due accounts that you can. Every account that you pay off will help boost your score. Once you have done this, get a letter of notification that the account is paid off and talk to your lender.
? Check your credit report for inaccuracies. Make sure all accounts included in bankruptcies and foreclosures are reporting accurately. If they show up as an open collection or unpaid account, charge-off or something else, this could be unnecessarily hurting your credit score. It will look like another, separate credit blemish instead of just the one. Make sure the bankruptcies and foreclosures are reporting accurately. Make sure accounts that are paid off, show up as being paid off, or accounts that are closed, show up as being closed
? Pay down open credit line balances. If you can even pay down the balances on any open lines of credit, this will boost your credit score. Your credit score is lowered when lines of credit are maxed out. You can make good use of your money by paying down credit card balances to boost your score.
? Once you have used some of these techniques to improve your credit score, be persistent about contacting and applying with many different bad credit mortgage lenders. Many bad credit mortgage loan brokers claim that if they can't do the loan, then no one can. That is simply not true.
Generally all mortgage loan brokers have connections with many different lenders and loan programs. What may be impossible with one, can be very possible with another broker. If your score is around 600 or slightly higher, you will probably have a pre-payment penalty. Pretty much all bad credit mortgage loans will come with a pre-payment penalty. Talk to your lender about the details of the pre-payment penalty. Find out how long the penalty will last and exactly how much money the penalty is. How much is the fine for pre-payment on the loan? This is an important factor to consider when comparing lenders.
To get an approved for a bad credit mortgage loan, be punctual, work on your credit score as much as you can to get it above that 600 mark and apply with or contact many lenders to compare mortgage loan programs. Bad credit mortgage will be a reality once of follow mantras spelled in above lines. Search for the best bad credit mortgage option from the market as this concept follows a never ending trend of ups and downs.
About the Author/Author Bio
Bad Credit Mortgage | Secured Loans | Debt Consolidation /
By Expert Author: Anand Kumar
Bad Credit condition of an individual is considered as the worst imagination as creates long
lasting impression on future finance planning's. All future dreams related to mortgage loans will remain on a shaky track. Don't worry we are here to help you out of this condition. Just follow the mantras revealed in below mentioned lines get taste the dreamed mortgage even if you suffered the effects of Bad Credit Mortgage:In order to get cent percent financing with bad credit, lenders will usually need to see you have a credit score of at least 600 or higher. So go ahead and follow below mentioned mantras to come out of Bad Credit Mortgage:
? Pay-off any small collection accounts or past due accounts that you can. Every account that you pay off will help boost your score. Once you have done this, get a letter of notification that the account is paid off and talk to your lender.
? Check your credit report for inaccuracies. Make sure all accounts included in bankruptcies and foreclosures are reporting accurately. If they show up as an open collection or unpaid account, charge-off or something else, this could be unnecessarily hurting your credit score. It will look like another, separate credit blemish instead of just the one. Make sure the bankruptcies and foreclosures are reporting accurately. Make sure accounts that are paid off, show up as being paid off, or accounts that are closed, show up as being closed
? Pay down open credit line balances. If you can even pay down the balances on any open lines of credit, this will boost your credit score. Your credit score is lowered when lines of credit are maxed out. You can make good use of your money by paying down credit card balances to boost your score.
? Once you have used some of these techniques to improve your credit score, be persistent about contacting and applying with many different bad credit mortgage lenders. Many bad credit mortgage loan brokers claim that if they can't do the loan, then no one can. That is simply not true.
Generally all mortgage loan brokers have connections with many different lenders and loan programs. What may be impossible with one, can be very possible with another broker. If your score is around 600 or slightly higher, you will probably have a pre-payment penalty. Pretty much all bad credit mortgage loans will come with a pre-payment penalty. Talk to your lender about the details of the pre-payment penalty. Find out how long the penalty will last and exactly how much money the penalty is. How much is the fine for pre-payment on the loan? This is an important factor to consider when comparing lenders.
To get an approved for a bad credit mortgage loan, be punctual, work on your credit score as much as you can to get it above that 600 mark and apply with or contact many lenders to compare mortgage loan programs. Bad credit mortgage will be a reality once of follow mantras spelled in above lines. Search for the best bad credit mortgage option from the market as this concept follows a never ending trend of ups and downs.
About the Author/Author Bio
Bad Credit Mortgage | Secured Loans | Debt Consolidation /
By Expert Author: Anand Kumar
Improved Credit Score Spells Mantra for UK Bad Credit Mortgage Approval
Improved Credit Score Spells Mantra for UK Bad Credit Mortgage Approval
Bad Credit condition of an individual is considered as the worst imagination as creates long lasting impression on future finance planning's. All future dreams related to mortgage loans will remain on a shaky track. Don't worry we are here to help you out of this condition. Just follow the mantras revealed in below mentioned lines get taste the dreamed mortgage even if you suffered the effects of UK Bad Credit Mortgage:
In order to get cent percent financing with bad credit, lenders will usually need to see you have a credit score of at least 600 or higher. So go ahead and follow below mentioned mantras to come out of UK Bad Credit Mortgage:
? Pay-off any small collection accounts or past due accounts that you can. Every account that you pay off will help boost your score. Once you have done this, get a letter of notification that the account is paid off and talk to your lender.
? Check your credit report for inaccuracies. Make sure all accounts included in bankruptcies and foreclosures are reporting accurately. If they show up as an open collection or unpaid account, charge-off or something else, this could be unnecessarily hurting your credit score. It will look like another, separate credit blemish instead of just the one. Make sure the bankruptcies and foreclosures are reporting accurately. Make sure accounts that are paid off, show up as being paid off, or accounts that are closed, show up as being closed
? Pay down open credit line balances. If you can even pay down the balances on any open lines of credit, this will boost your credit score. Your credit score is lowered when lines of credit are maxed out. You can make good use of your money by paying down credit card balances to boost your score.
? Once you have used some of these techniques to improve your credit score, be persistent about contacting and applying with many different UK bad credit mortgage lenders. Many bad credit mortgage loan brokers claim that if they can't do the loan, then no one can. That is simply not true.
Generally all mortgage loan brokers have connections with many different lenders and loan programs. What may be impossible with one, can be very possible with another broker. If your score is around 600 or slightly higher, you will probably have a pre-payment penalty. Pretty much all UK bad credit mortgage loans will come with a pre-payment penalty. Talk to your lender about the details of the pre-payment penalty. Find out how long the penalty will last and exactly how much money the penalty is. How much is the fine for pre-payment on the loan? This is an important factor to consider when comparing lenders.
To get an approved for a UK bad credit mortgage loan, be punctual, work on your credit score as much as you can to get it above that 600 mark and apply with or contact many lenders to compare mortgage loan programs. UK Bad credit mortgage will be a reality once you follow mantras spelled in above lines. Search for the best UK bad credit mortgage option from the market as this concept follows a never ending trend of ups and downs.
About the Author/Author Bio
Bad Credit Mortgage | Secured Loans | Mortgage Refinancing
By Expert Author: Anand Kumar
Bad Credit condition of an individual is considered as the worst imagination as creates long lasting impression on future finance planning's. All future dreams related to mortgage loans will remain on a shaky track. Don't worry we are here to help you out of this condition. Just follow the mantras revealed in below mentioned lines get taste the dreamed mortgage even if you suffered the effects of UK Bad Credit Mortgage:
In order to get cent percent financing with bad credit, lenders will usually need to see you have a credit score of at least 600 or higher. So go ahead and follow below mentioned mantras to come out of UK Bad Credit Mortgage:
? Pay-off any small collection accounts or past due accounts that you can. Every account that you pay off will help boost your score. Once you have done this, get a letter of notification that the account is paid off and talk to your lender.
? Check your credit report for inaccuracies. Make sure all accounts included in bankruptcies and foreclosures are reporting accurately. If they show up as an open collection or unpaid account, charge-off or something else, this could be unnecessarily hurting your credit score. It will look like another, separate credit blemish instead of just the one. Make sure the bankruptcies and foreclosures are reporting accurately. Make sure accounts that are paid off, show up as being paid off, or accounts that are closed, show up as being closed
? Pay down open credit line balances. If you can even pay down the balances on any open lines of credit, this will boost your credit score. Your credit score is lowered when lines of credit are maxed out. You can make good use of your money by paying down credit card balances to boost your score.
? Once you have used some of these techniques to improve your credit score, be persistent about contacting and applying with many different UK bad credit mortgage lenders. Many bad credit mortgage loan brokers claim that if they can't do the loan, then no one can. That is simply not true.
Generally all mortgage loan brokers have connections with many different lenders and loan programs. What may be impossible with one, can be very possible with another broker. If your score is around 600 or slightly higher, you will probably have a pre-payment penalty. Pretty much all UK bad credit mortgage loans will come with a pre-payment penalty. Talk to your lender about the details of the pre-payment penalty. Find out how long the penalty will last and exactly how much money the penalty is. How much is the fine for pre-payment on the loan? This is an important factor to consider when comparing lenders.
To get an approved for a UK bad credit mortgage loan, be punctual, work on your credit score as much as you can to get it above that 600 mark and apply with or contact many lenders to compare mortgage loan programs. UK Bad credit mortgage will be a reality once you follow mantras spelled in above lines. Search for the best UK bad credit mortgage option from the market as this concept follows a never ending trend of ups and downs.
About the Author/Author Bio
Bad Credit Mortgage | Secured Loans | Mortgage Refinancing
By Expert Author: Anand Kumar
Keeping Debt Under Control
Keeping Debt Under Control
Unfortunately, most people don't attempt to get their debt under control until it is too late. Once you have bad credit, it is difficult to get it under control, especially if you have a costly lifestyle.
While anyone can get hit with an unexpected expense, there are a number of things you can do to avoid having bad credit, and if you should get into a situation where your credit is less than desirable, there are a number of things you can do to repair it. If you are thinking of using your credit card to pay for something, you should stop and ask yourself if you can pay it off within a month or two.
If the answer to that question is no, this is a sign that you should avoid buying it. Many people make the mistake of using their credit cards to buy things they don't need. More often not, shortly after buying these products, they will find themselves in a situation where they really do need money for something that is crucially important. The best way to keep your credit under control is to minimize the use of credit cards. Try to use cash as much as possible to pay for things, especially every day items. If you want to make a large purchase, putting away money for it may be a smarter option than using you credit card to purchase it.
Under no circumstances should you only be paying the minimum amount on your credit cards. This is fruitless, as it will take you years to pay off the balance due to the interest rate. It is also important for you seek help if you need it. There are a number of debt management programs that can help you get your credit under control, but they won't be able to help you if you don't bother to ask for their assistance. When it comes to bad credit, prevention is the most important factor.
It is more difficult to repair bad credit than it is to avoid having bad credit in the first place. In the end, your personal finances will come down to your responsibility. Banks and credit card companies make billions of dollars per year off the irresponsibility of their customers, and when you owe so much that you find it hard to pay back, you have just put yourself in a situation where you will be paying the credit card companies your hard earned money for many years to come.
About the Author/Author Bio
Fix your credit fast and legally by reading Credit Revived.
CreditLiberty.com is a great site for people with bad credit. Check out their section about getting a bad credit auto loan.
By Expert Author: Jake Truman
Article Source: http://www.articlesphere.com/
Unfortunately, most people don't attempt to get their debt under control until it is too late. Once you have bad credit, it is difficult to get it under control, especially if you have a costly lifestyle.
While anyone can get hit with an unexpected expense, there are a number of things you can do to avoid having bad credit, and if you should get into a situation where your credit is less than desirable, there are a number of things you can do to repair it. If you are thinking of using your credit card to pay for something, you should stop and ask yourself if you can pay it off within a month or two.If the answer to that question is no, this is a sign that you should avoid buying it. Many people make the mistake of using their credit cards to buy things they don't need. More often not, shortly after buying these products, they will find themselves in a situation where they really do need money for something that is crucially important. The best way to keep your credit under control is to minimize the use of credit cards. Try to use cash as much as possible to pay for things, especially every day items. If you want to make a large purchase, putting away money for it may be a smarter option than using you credit card to purchase it.
Under no circumstances should you only be paying the minimum amount on your credit cards. This is fruitless, as it will take you years to pay off the balance due to the interest rate. It is also important for you seek help if you need it. There are a number of debt management programs that can help you get your credit under control, but they won't be able to help you if you don't bother to ask for their assistance. When it comes to bad credit, prevention is the most important factor.
It is more difficult to repair bad credit than it is to avoid having bad credit in the first place. In the end, your personal finances will come down to your responsibility. Banks and credit card companies make billions of dollars per year off the irresponsibility of their customers, and when you owe so much that you find it hard to pay back, you have just put yourself in a situation where you will be paying the credit card companies your hard earned money for many years to come.
About the Author/Author Bio
Fix your credit fast and legally by reading Credit Revived.
CreditLiberty.com is a great site for people with bad credit. Check out their section about getting a bad credit auto loan.
By Expert Author: Jake Truman
Article Source: http://www.articlesphere.com/
The TRUTH About Creating An Alternate Credit File
The TRUTH About Creating An Alternate Credit File
What if I told you there was a way you could solve all your bad credit problems overnight by creating a brand new credit file in 24hrs - would you be interested? And what if I told you this program was 100% legal and even backed by the federal government - would that sound too good to be true?
Well... you're right. It is too good to be true but these types of ads are now surfacing again after the Federal Trade Commission launched "Operation New ID Bad Idea" over 8 years ago. This operation targeted (and took down) over 50 credit repair organizations and companies selling consumers both pamphlets and services giving them a brand new credit file under the pretense it was 100% legal and in some cases even claimed it to be a "government sponsored" program!
The con was simple. Companies would target consumers with bad credit and offer to create a brand new credit file for them by substituting an Employer Identification Number (EIN) for their Social Security Number (SSN) along with a new address. EIN's were obtained from the Internal Revenue Service on behalf of the consumer. With the EIN and a new address the companies would either have the consumer apply for credit with the "new information" or the company would apply for them. When the creditor would run the application it would automatically create a new credit file because the computer would be unable to find the consumer in the database due to the new address and SSN.
While there is some dispute among privacy experts as to whether or not this is legal, the FTC's actions at the time were not up for debate. Companies were advertising and luring in consumers in order to have them falsify credit applications by providing new information such as their address and SSN in order to obtain credit. This was a direct violation of the Truth in Lending Act (TILA) and worse yet, the companies were advertising to consumers that this was 100% legal and in some cases claiming it was a government sponsored program. As you'll hear me say often "In reality, nothing could be further from the truth".
Privacy experts will argue that using an EIN or 9 digit PIN (simply a made up number) in place of ones' SSN is completely legal since creditors are on shaky ground asking for your SSN in the first place. In regards to the truth in lending act they will argue that one has to exhibit "an intent to defraud" a creditor. My question "Is concealing ones' adverse credit history intent in itself?" While I am not an Attorney on the matter of credit law I can conclude that if a consumer was to create an alternate credit file using the EIN or PIN method they better be darn sure they never have a problem paying their bills. If they do, they most likely would find themselves in a courtroom with a case involving credit fraud. Which brings me to my next topic.
How To Create An Alternate Credit File Legally
Most consumers are unaware that in addition to consumer credit reports, both Experian and Equifax own and operate business credit reporting services. By creating a business credit profile a consumer can now create an alternate credit file legally. While some creditors such as residential utility companies will not allow you to use business credit in place of personal credit, we have had numerous clients who have successfully used business credit to obtain credit cards, automotive leases and loans. This technique (although controversial) can be very effective when done properly.
The basics of building business credit involve:
1.) Setting up the proper structure for your business (i.e. Corporation, LLC, etc.).
2.) Obtaining an EIN as well as a DUNS number (Dunn and Bradstreet).
3.) Borrow and/or buy products and services from vendors who reports to business credit reporting agencies such as Experian, Equifax and Dunn and Bradstreet. While building business credit requires time just like personal credit, don't get discouraged. Remember, when you set out to begin building your business credit you are starting with a clean slate. This is when it becomes imperative that one learn from the mistakes of their past. Remember, in the credit world those who do not learn from their past are (inevitably) doomed to repeat it.
About the Author/Author Bio
The "CREDIT SECRETS BIBLE" has been in print since 1994 and is published by Consumer Publishing Group. For more information on the "CREDIT SECRETS BIBLE" you may visit: www.credit-secrets-bible.net
By Expert Author: Sean Matteson
Article Source: http://www.articlesphere.com/
What if I told you there was a way you could solve all your bad credit problems overnight by creating a brand new credit file in 24hrs - would you be interested? And what if I told you this program was 100% legal and even backed by the federal government - would that sound too good to be true?
Well... you're right. It is too good to be true but these types of ads are now surfacing again after the Federal Trade Commission launched "Operation New ID Bad Idea" over 8 years ago. This operation targeted (and took down) over 50 credit repair organizations and companies selling consumers both pamphlets and services giving them a brand new credit file under the pretense it was 100% legal and in some cases even claimed it to be a "government sponsored" program!
The con was simple. Companies would target consumers with bad credit and offer to create a brand new credit file for them by substituting an Employer Identification Number (EIN) for their Social Security Number (SSN) along with a new address. EIN's were obtained from the Internal Revenue Service on behalf of the consumer. With the EIN and a new address the companies would either have the consumer apply for credit with the "new information" or the company would apply for them. When the creditor would run the application it would automatically create a new credit file because the computer would be unable to find the consumer in the database due to the new address and SSN.
While there is some dispute among privacy experts as to whether or not this is legal, the FTC's actions at the time were not up for debate. Companies were advertising and luring in consumers in order to have them falsify credit applications by providing new information such as their address and SSN in order to obtain credit. This was a direct violation of the Truth in Lending Act (TILA) and worse yet, the companies were advertising to consumers that this was 100% legal and in some cases claiming it was a government sponsored program. As you'll hear me say often "In reality, nothing could be further from the truth".
Privacy experts will argue that using an EIN or 9 digit PIN (simply a made up number) in place of ones' SSN is completely legal since creditors are on shaky ground asking for your SSN in the first place. In regards to the truth in lending act they will argue that one has to exhibit "an intent to defraud" a creditor. My question "Is concealing ones' adverse credit history intent in itself?" While I am not an Attorney on the matter of credit law I can conclude that if a consumer was to create an alternate credit file using the EIN or PIN method they better be darn sure they never have a problem paying their bills. If they do, they most likely would find themselves in a courtroom with a case involving credit fraud. Which brings me to my next topic.
How To Create An Alternate Credit File Legally
Most consumers are unaware that in addition to consumer credit reports, both Experian and Equifax own and operate business credit reporting services. By creating a business credit profile a consumer can now create an alternate credit file legally. While some creditors such as residential utility companies will not allow you to use business credit in place of personal credit, we have had numerous clients who have successfully used business credit to obtain credit cards, automotive leases and loans. This technique (although controversial) can be very effective when done properly.
The basics of building business credit involve:
1.) Setting up the proper structure for your business (i.e. Corporation, LLC, etc.).
2.) Obtaining an EIN as well as a DUNS number (Dunn and Bradstreet).
3.) Borrow and/or buy products and services from vendors who reports to business credit reporting agencies such as Experian, Equifax and Dunn and Bradstreet. While building business credit requires time just like personal credit, don't get discouraged. Remember, when you set out to begin building your business credit you are starting with a clean slate. This is when it becomes imperative that one learn from the mistakes of their past. Remember, in the credit world those who do not learn from their past are (inevitably) doomed to repeat it.
About the Author/Author Bio
The "CREDIT SECRETS BIBLE" has been in print since 1994 and is published by Consumer Publishing Group. For more information on the "CREDIT SECRETS BIBLE" you may visit: www.credit-secrets-bible.net
By Expert Author: Sean Matteson
Article Source: http://www.articlesphere.com/
Five Things Every Woman Should Know BEFORE Signing Any Credit Application!
Five Things Every Woman Should Know BEFORE Signing Any Credit Application!
Have you ever wondered if banks have a tendency to approve credit cards and loans for one sex more than the other? If you are married (or plan to be) I will share with you five vital keys every married person should know before signing any credit application.
VITAL KEY #1: According to the Federal Equal Credit Opportunity Act (FECOA) creditors cannot deny consumers access to credit because of their sex. However, on average (in surveys) it's reported that women earn less money than men. Regardless of what the FECOA states, the relationship of credit to income is very strong.
In our society if you make less money you will get less credit, period. The sad fact is that women on their own have less access to credit. It's for this reason (I believe) it is imperative that women learn and acquire more knowledge about credit than men. Knowledge is power; and in the world of credit that knowledge will often times prove to be priceless, especially for women.
VITAL KEY #2: If you are a married woman with JOINT credit (meaning all your credit accounts are jointly held with your husband) you have NO CREDIT yourself. Many women in America find this out the hard way every year when they get divorced and lose all their credit privileges since all their accounts were jointly held with their spouse. If you are a woman in this position you can greatly benefit by beginning to build your own credit in your own name starting today! The benefits are two fold.
1.) If your spouse has financial difficulties (for any reason) and is forced to file bankruptcy or their credit becomes derogatory, you and your spouse will have your credit in reserve to survive on.
2.) If you ever get divorced down the road (over 50% do and 76% in the state of California) you will NOT end up in financial hardship due to no credit and/or derogatory credit. Instead, you will have your credit to transition to and (believe me) this can be the difference between sailing off in the sunset or drowning in a storm.
VITAL KEY #3: If you are currently married (with some credit or no credit) to a spouse who has excellent credit, you can leverage their credit to build credit in your own name much faster than if you had to build it by yourself. Later, once you have established enough accounts on your own, you may choose to cancel accounts that were held jointly with your spouse.
VITAL KEY #4: If you are a single woman with excellent credit and are getting married you may want to think twice about adding your new lover to all your credit accounts. If he messes up or you end up in divorce down the road your credit will end up taking the beating (regardless of how many years you diligently spent building it up). For this reason, I strongly suggest married couples keep their credit separate. Why?
In most cases spouses have far more to lose than to gain. Of course, some credit will have to be joint no matter what you do. If you purchase a home (which will possibly require both incomes to qualify) this will appear as a joint account on the credit report. However, the potential abuse with a home mortgage is almost non existent as opposed to Credit Cards.
VITAL KEY #5: Spouses have more to gain by each building strong individual credit reports rather than joining all accounts and building one joint report. For obvious reasons, banks and credit card companies love the "credit ignorance" of spouses who join all their credit accounts upon marriage.
Here's why: If you take 500,000 couples with credit before they got married, those 500,000 couples actually represent one million credit accounts and liabilities for the banks and lenders. When those couples got married, those one million credit liabilities were instantly were cut in half from one million to only 500,000. For banks this is a very advantageous situation. For the couples getting married (if they have financial trouble) the deal is a little raw. If they have trouble, although they are two people, they are represented by only one credit report. The bank now has the right to go after two different people for one account (regardless of who was financially negligent).
For moment, let's play out the same scenario with a couple which is financially savvy (note: they're both on the same "team" but financially savvy). In this scenario, the couple gets married, but instead of joining account each builds their individual credit reports. Now this couple (team) has not one credit report representing them but two. Metaphorically, if the perfect storm (financially) is to rise, this is the difference between the couple being in the ocean with two ships instead of one. If the one ship starts to sink, the couple can always "jump ship" to the second.
While some may criticize this thinking it is no different than buying any kind of insurance. You buy insurance not because you plan on a problem. You buy insurance because you are thinking ahead. This type of thinking is no different. However, if you want to be ahead of the pack that you need to think ahead of the pack.
I cannot tell you how many times I have talked to loving married couples in financial trouble who only WISHED they would have known about these five vital keys before they got into financial trouble. Take them, study them, apply them to your life. As I heard one woman put it "In business and in life I've learned to expect the best but plan for the worst". I thought her words were brilliant. However, I have found that when I expect the best... many times I tend to get it! Take these five vital keys. Study them. Apply them. Then pass them on to someone else who can benefit from them.
About the Author/Author Bio
The "CREDIT SECRETS BIBLE" has been in print since 1994 and is published by Consumer Publishing Group. For more information on the "CREDIT SECRETS BIBLE" you may visit: www.squidoo.com/credit-secrets-bible/
By Expert Author: Sean Matteson
Article Source: http://www.articlesphere.com/
Have you ever wondered if banks have a tendency to approve credit cards and loans for one sex more than the other? If you are married (or plan to be) I will share with you five vital keys every married person should know before signing any credit application.VITAL KEY #1: According to the Federal Equal Credit Opportunity Act (FECOA) creditors cannot deny consumers access to credit because of their sex. However, on average (in surveys) it's reported that women earn less money than men. Regardless of what the FECOA states, the relationship of credit to income is very strong.
In our society if you make less money you will get less credit, period. The sad fact is that women on their own have less access to credit. It's for this reason (I believe) it is imperative that women learn and acquire more knowledge about credit than men. Knowledge is power; and in the world of credit that knowledge will often times prove to be priceless, especially for women.
VITAL KEY #2: If you are a married woman with JOINT credit (meaning all your credit accounts are jointly held with your husband) you have NO CREDIT yourself. Many women in America find this out the hard way every year when they get divorced and lose all their credit privileges since all their accounts were jointly held with their spouse. If you are a woman in this position you can greatly benefit by beginning to build your own credit in your own name starting today! The benefits are two fold.
1.) If your spouse has financial difficulties (for any reason) and is forced to file bankruptcy or their credit becomes derogatory, you and your spouse will have your credit in reserve to survive on.
2.) If you ever get divorced down the road (over 50% do and 76% in the state of California) you will NOT end up in financial hardship due to no credit and/or derogatory credit. Instead, you will have your credit to transition to and (believe me) this can be the difference between sailing off in the sunset or drowning in a storm.
VITAL KEY #3: If you are currently married (with some credit or no credit) to a spouse who has excellent credit, you can leverage their credit to build credit in your own name much faster than if you had to build it by yourself. Later, once you have established enough accounts on your own, you may choose to cancel accounts that were held jointly with your spouse.
VITAL KEY #4: If you are a single woman with excellent credit and are getting married you may want to think twice about adding your new lover to all your credit accounts. If he messes up or you end up in divorce down the road your credit will end up taking the beating (regardless of how many years you diligently spent building it up). For this reason, I strongly suggest married couples keep their credit separate. Why?
In most cases spouses have far more to lose than to gain. Of course, some credit will have to be joint no matter what you do. If you purchase a home (which will possibly require both incomes to qualify) this will appear as a joint account on the credit report. However, the potential abuse with a home mortgage is almost non existent as opposed to Credit Cards.
VITAL KEY #5: Spouses have more to gain by each building strong individual credit reports rather than joining all accounts and building one joint report. For obvious reasons, banks and credit card companies love the "credit ignorance" of spouses who join all their credit accounts upon marriage.
Here's why: If you take 500,000 couples with credit before they got married, those 500,000 couples actually represent one million credit accounts and liabilities for the banks and lenders. When those couples got married, those one million credit liabilities were instantly were cut in half from one million to only 500,000. For banks this is a very advantageous situation. For the couples getting married (if they have financial trouble) the deal is a little raw. If they have trouble, although they are two people, they are represented by only one credit report. The bank now has the right to go after two different people for one account (regardless of who was financially negligent).
For moment, let's play out the same scenario with a couple which is financially savvy (note: they're both on the same "team" but financially savvy). In this scenario, the couple gets married, but instead of joining account each builds their individual credit reports. Now this couple (team) has not one credit report representing them but two. Metaphorically, if the perfect storm (financially) is to rise, this is the difference between the couple being in the ocean with two ships instead of one. If the one ship starts to sink, the couple can always "jump ship" to the second.
While some may criticize this thinking it is no different than buying any kind of insurance. You buy insurance not because you plan on a problem. You buy insurance because you are thinking ahead. This type of thinking is no different. However, if you want to be ahead of the pack that you need to think ahead of the pack.
I cannot tell you how many times I have talked to loving married couples in financial trouble who only WISHED they would have known about these five vital keys before they got into financial trouble. Take them, study them, apply them to your life. As I heard one woman put it "In business and in life I've learned to expect the best but plan for the worst". I thought her words were brilliant. However, I have found that when I expect the best... many times I tend to get it! Take these five vital keys. Study them. Apply them. Then pass them on to someone else who can benefit from them.
About the Author/Author Bio
The "CREDIT SECRETS BIBLE" has been in print since 1994 and is published by Consumer Publishing Group. For more information on the "CREDIT SECRETS BIBLE" you may visit: www.squidoo.com/credit-secrets-bible/
By Expert Author: Sean Matteson
Article Source: http://www.articlesphere.com/
Tips for becoming a Preferred Borrower
Tips for becoming a Preferred Borrower
If you have recently been refused credit then there is a strong possibility that there is something adverse on your credit record. The easiest way to find out what this may be is to take a free trail with one of the major credit bureaus - Equifax or Experian. Only then will you be able to see in detail what creditors see when they would out your credit rating and decide whether on not they are willing to lend to you.
Repayment default and CCJ will remain on your credit report and as such effect your credit rating and ability to borrow for six years, even if these have since been settled. This is why during the six years after any default you may be turned down for credit.
If you are having trouble getting credit and don't know of a reason it is worth checking out the information held about you. Should your history contain any erroneous information, you should send a 'statement of correction' to the agency - and also investigate the other agencies. All lenders forthwith will see your statement and may take this into consideration when considering you for credit.
There are several factors a lender looks at when deciding whether to give you credit or not. These include age, income, and your current debt obligations.
Lenders can also look at family history - for example, it is important if you are estranged from any family members to ask the credit agencies for separate files, so other people's history does not affect your status.
The most important part of your credit record in the lenders eyes is your credit history - i.e. how many payment you have made on time or rather missed over the last six years. This account for around 35% of your personal rating.
One of the best ways to ensure an improved credit rating is actually to borrow more - as long as you demonstrate that you are able to pay your debt off quickly, the better your rating will become over time.
You might think that closing old bank or credit card accounts with no outstanding payments will simplify your life - however, doing so actively shuts the door on that credit knowledge. In other words, your credit file will not acknowledge cards paid off in full if you close the account.
There are of course specialist lenders who deal with clients who have a bad credit history, even CCJs, so if you are still finding it hard to access the funds there are still options available to you and it can be a foothold on the credit ladder, enabling you to demonstrate your ability to fulfill your obligations to your lender.
About the Author/Author Bio
Consider consolidating your debts with 6.9% APR typical on loans of ?7,500 or more from RBS.
By Expert Author: Peter Spyr
Article Source: http://www.articlesphere.com/
If you have recently been refused credit then there is a strong possibility that there is something adverse on your credit record. The easiest way to find out what this may be is to take a free trail with one of the major credit bureaus - Equifax or Experian. Only then will you be able to see in detail what creditors see when they would out your credit rating and decide whether on not they are willing to lend to you.
Repayment default and CCJ will remain on your credit report and as such effect your credit rating and ability to borrow for six years, even if these have since been settled. This is why during the six years after any default you may be turned down for credit.
If you are having trouble getting credit and don't know of a reason it is worth checking out the information held about you. Should your history contain any erroneous information, you should send a 'statement of correction' to the agency - and also investigate the other agencies. All lenders forthwith will see your statement and may take this into consideration when considering you for credit.
There are several factors a lender looks at when deciding whether to give you credit or not. These include age, income, and your current debt obligations.
Lenders can also look at family history - for example, it is important if you are estranged from any family members to ask the credit agencies for separate files, so other people's history does not affect your status.
The most important part of your credit record in the lenders eyes is your credit history - i.e. how many payment you have made on time or rather missed over the last six years. This account for around 35% of your personal rating.
One of the best ways to ensure an improved credit rating is actually to borrow more - as long as you demonstrate that you are able to pay your debt off quickly, the better your rating will become over time.
You might think that closing old bank or credit card accounts with no outstanding payments will simplify your life - however, doing so actively shuts the door on that credit knowledge. In other words, your credit file will not acknowledge cards paid off in full if you close the account.
There are of course specialist lenders who deal with clients who have a bad credit history, even CCJs, so if you are still finding it hard to access the funds there are still options available to you and it can be a foothold on the credit ladder, enabling you to demonstrate your ability to fulfill your obligations to your lender.
About the Author/Author Bio
Consider consolidating your debts with 6.9% APR typical on loans of ?7,500 or more from RBS.
By Expert Author: Peter Spyr
Article Source: http://www.articlesphere.com/
Top 5 ways To Improve Your Credit
Top 5 ways To Improve Your Credit
Your credit rating is extremely important to your financial future, and those with a low credit
rating will often find it difficult to get any sort of finance until their credit improves. This could affect your abilities to get anything from a credit card or loan to a mortgage or car finance, and as a nation that relies heavily on credit this could spell disaster for many.
Your credit rating can be adversely affected in a number of ways. Most commonly is failure to make bill and finance repayments on time or defaulting on payments altogether. However, other factors such as association with those with bad credit or being the victim of identity theft can also affect your credit rating - as can a simple human or computer error by credit reporting agencies or agencies that register details with these companies.
There are a number of ways in which you can help to improve your credit or maintain good credit. This includes:
1. Always maintain timely repayments on bills and financial obligations, as this will help to maintain good credit. If you already have a tarnished credit history or rating make sure that you focus on making all of your repayments on time and for the amount s requested to try and start improving your credit.
2. Keep a check on your credit report. This can easily be ordered from the credit reporting agencies. Monitoring this will enable you to check that no errors have been made that could be affecting your credit rating, and will enable you to identify any cases of fraudulent activity that could also be affecting your credit.
3. If you already have poor credit consider taking out a credit card or loan that caters for those with bad credit. By taking out a bad credit loan or credit card, and making sure that you make the repayments on time and for the amounts requested, you can start to slowly bring your credit back up.
4. Focus on paying off your debts. If you have a high level of debt then you run the risk of falling behind with repayments and adversely affecting your credit. By clearing the debt as quickly as possible you can reduce this risk. If you already have bad credit and are in debt, you could see improvements in your credit rating by clearing the debts as quickly as possible and ensuring that you pay at least the requested amounts on loans and bills each month.
5. Look out for scams that offer fast solutions to repairing credit. These usually charge a fee and offer only a temporary reprieve by questioning any factors that may be affecting your credit. The best way to repair your credit is to be sensible and responsible about repaying your debts and paying your bills, and although it may take some time this is the most effective long term solution to credit repair.
About the Author/Author Bio
Loans4 provide Homeowner Loans for UK homeowners. Please visit Loans4.co.uk for more finance related news.
By Expert Author: Arthor Pens
Article Source: http://www.articlesphere.com/
Your credit rating is extremely important to your financial future, and those with a low credit
rating will often find it difficult to get any sort of finance until their credit improves. This could affect your abilities to get anything from a credit card or loan to a mortgage or car finance, and as a nation that relies heavily on credit this could spell disaster for many.Your credit rating can be adversely affected in a number of ways. Most commonly is failure to make bill and finance repayments on time or defaulting on payments altogether. However, other factors such as association with those with bad credit or being the victim of identity theft can also affect your credit rating - as can a simple human or computer error by credit reporting agencies or agencies that register details with these companies.
There are a number of ways in which you can help to improve your credit or maintain good credit. This includes:
1. Always maintain timely repayments on bills and financial obligations, as this will help to maintain good credit. If you already have a tarnished credit history or rating make sure that you focus on making all of your repayments on time and for the amount s requested to try and start improving your credit.
2. Keep a check on your credit report. This can easily be ordered from the credit reporting agencies. Monitoring this will enable you to check that no errors have been made that could be affecting your credit rating, and will enable you to identify any cases of fraudulent activity that could also be affecting your credit.
3. If you already have poor credit consider taking out a credit card or loan that caters for those with bad credit. By taking out a bad credit loan or credit card, and making sure that you make the repayments on time and for the amounts requested, you can start to slowly bring your credit back up.
4. Focus on paying off your debts. If you have a high level of debt then you run the risk of falling behind with repayments and adversely affecting your credit. By clearing the debt as quickly as possible you can reduce this risk. If you already have bad credit and are in debt, you could see improvements in your credit rating by clearing the debts as quickly as possible and ensuring that you pay at least the requested amounts on loans and bills each month.
5. Look out for scams that offer fast solutions to repairing credit. These usually charge a fee and offer only a temporary reprieve by questioning any factors that may be affecting your credit. The best way to repair your credit is to be sensible and responsible about repaying your debts and paying your bills, and although it may take some time this is the most effective long term solution to credit repair.
About the Author/Author Bio
Loans4 provide Homeowner Loans for UK homeowners. Please visit Loans4.co.uk for more finance related news.
By Expert Author: Arthor Pens
Article Source: http://www.articlesphere.com/
Boost Your Business With Effective Financial Management
Boost Your Business With Effective Financial Management
Working Capital, to put it briefly, refers to a business organization's total current assets (short-term ones), marketable securities, accounts receivables, inventory, and cash.
Management of the financial segment is a great responsibility that demands equal attention on investments as well as sources of income (both long term and short term). In fact, a business firm can never enhance its value if it fails to survive initial hiccups in the short run. Hence, efficient management of finances is essential for any business to survive.
Strategies to finance short-term working capital needs much greater attention than are usually practiced. Precisely speaking, there are two short-term working capital financing options; business cash advance programs and short-term commercial mortgage loan programs that have been often overlooked. But these two working capital funding options are excellent for small and new business ventures to ward initial financial obstructions off their way. Business cash advance is one of the best financing options for businesses accepting credit cards as mode of payment. Speaking of benefits, business cash advance offers great help even to prospering businesses. For instance, even thriving businesses need working capital that might not be borrowed from a bank. Under these circumstances, business cash advance or merchant cash advance programs come to the rescue. Retail chains, bars, and restaurants, service businesses are highly benefited from these finance programs.
Receivable factoring or "credit card factoring" is another unique working capital management strategy, whereby the businesses sell their future receivables at a discount. However, it is not possible for all small businesses to document their receivables in order to qualify for this financing option. The documented sales volume and credit card sales activity of these small businesses serve as financial asset to attain a business cash advance or a merchant cash advance.
Not negating the importance of short-term working capital loans, it is also necessary to understand the importance of long-term working capital management. While planning to finance your business long-term, make sure to get hold of a long-term commercial mortgage for at least 15-20 years. In a few cases though it becomes essential to avoid long-term commercial mortgage loans and opt for its short-term counterpart. This would especially be applicable for those who intend to sell or refinance their business within one to five years. In fact, availing short-term commercial mortgage loans comes with the added advantage of negating prepayment penalties and "lockout" fees, normally associated with long-term loans.
There are few lenders providing effective services for both these financial strategies. Hence, working capital loan in the form of business cash advance programs or commercial mortgage loans should be chosen with great care.
About the Author/Author Bio
Suzanne Macguire is an Internet marketing professional with expertise in content development and technical writing in a variety of industries. Working Capital Financing
By Expert Author: Suzanne Macguire
Article Source: http://www.articlesphere.com/
Working Capital, to put it briefly, refers to a business organization's total current assets (short-term ones), marketable securities, accounts receivables, inventory, and cash.
Management of the financial segment is a great responsibility that demands equal attention on investments as well as sources of income (both long term and short term). In fact, a business firm can never enhance its value if it fails to survive initial hiccups in the short run. Hence, efficient management of finances is essential for any business to survive.Strategies to finance short-term working capital needs much greater attention than are usually practiced. Precisely speaking, there are two short-term working capital financing options; business cash advance programs and short-term commercial mortgage loan programs that have been often overlooked. But these two working capital funding options are excellent for small and new business ventures to ward initial financial obstructions off their way. Business cash advance is one of the best financing options for businesses accepting credit cards as mode of payment. Speaking of benefits, business cash advance offers great help even to prospering businesses. For instance, even thriving businesses need working capital that might not be borrowed from a bank. Under these circumstances, business cash advance or merchant cash advance programs come to the rescue. Retail chains, bars, and restaurants, service businesses are highly benefited from these finance programs.
Receivable factoring or "credit card factoring" is another unique working capital management strategy, whereby the businesses sell their future receivables at a discount. However, it is not possible for all small businesses to document their receivables in order to qualify for this financing option. The documented sales volume and credit card sales activity of these small businesses serve as financial asset to attain a business cash advance or a merchant cash advance.
Not negating the importance of short-term working capital loans, it is also necessary to understand the importance of long-term working capital management. While planning to finance your business long-term, make sure to get hold of a long-term commercial mortgage for at least 15-20 years. In a few cases though it becomes essential to avoid long-term commercial mortgage loans and opt for its short-term counterpart. This would especially be applicable for those who intend to sell or refinance their business within one to five years. In fact, availing short-term commercial mortgage loans comes with the added advantage of negating prepayment penalties and "lockout" fees, normally associated with long-term loans.
There are few lenders providing effective services for both these financial strategies. Hence, working capital loan in the form of business cash advance programs or commercial mortgage loans should be chosen with great care.
About the Author/Author Bio
Suzanne Macguire is an Internet marketing professional with expertise in content development and technical writing in a variety of industries. Working Capital Financing
By Expert Author: Suzanne Macguire
Article Source: http://www.articlesphere.com/
วันเสาร์ที่ 27 กันยายน พ.ศ. 2551
Do You Have Protection When You Buy Online With Your Credit Card?
Do You Have Protection When You Buy Online With Your Credit Card?,Article,When making purchases online you can use either your debit or your credit card,
Do You Have Protection When You Buy Online With Your Credit Card?
More and more of us these days make a range of purchases online, and whilst some of these purchases may seem small and insignificant, others can be far more costly, such as tickets to events, flights, and more.
Being able to make purchases online offers ease and convenience, and many of us make the most of this facility. When making purchases online you can use either your debit or your credit card, but it is important to consider which is the best card to use in terms of protection, as you never know what might happen when you make a purchase online.
Officials from Trading Standards have said that online shoppers can enjoy far more in the way of protection by making certain purchases with their credit card rather than their debit card.
Obviously if you are only doing your grocery shopping from Tesco then this is not really an issue, as it is unlikely that you shopping is going to go missing or be damaged to the point where you need to claim.
However, for things such as entertainment tickets or flights Trading Standards officers have said that credit card security is much higher and is the best option for increased protection.
Every year many people buy tickets for things like concerts online, and often everything runs smoothly. However, in some cases the tickets never arrive, and it turns out that the whole thing has been scam.
Those that have purchased with a credit card, however, can enjoy protection under the
Consumer Credit Act 1974; Section 75 purchase protection on credit cards, which enables them to claim for tickets as well as for other purchases between £100 and £30,000. This means that many people that may have been ripped off in ticket scams recently for events such as Reading and V festivals, or even the Olympics, may be able to claim their money back.
The benefits of paying by credit card have also been highlighted recently as a result of the budget airline Zoom going bust. Whilst those that paid by cash for their flights have not protection, and those that paid by debit card may have protection, travellers that paid for their flights with a credit card will be able to enjoy full protection according to industry officials, which means that whilst their holiday plans may have been spoiled they will not lose out financially.
You can compare credit cards by the level of extra protection they offer, including added insurances and protection against fraud and for purchases.
By: Reno Charlton
Article Directory: http://www.articledashboard.com
Do You Have Protection When You Buy Online With Your Credit Card?
More and more of us these days make a range of purchases online, and whilst some of these purchases may seem small and insignificant, others can be far more costly, such as tickets to events, flights, and more.
Being able to make purchases online offers ease and convenience, and many of us make the most of this facility. When making purchases online you can use either your debit or your credit card, but it is important to consider which is the best card to use in terms of protection, as you never know what might happen when you make a purchase online.Officials from Trading Standards have said that online shoppers can enjoy far more in the way of protection by making certain purchases with their credit card rather than their debit card.
Obviously if you are only doing your grocery shopping from Tesco then this is not really an issue, as it is unlikely that you shopping is going to go missing or be damaged to the point where you need to claim.
However, for things such as entertainment tickets or flights Trading Standards officers have said that credit card security is much higher and is the best option for increased protection.
Every year many people buy tickets for things like concerts online, and often everything runs smoothly. However, in some cases the tickets never arrive, and it turns out that the whole thing has been scam.
Those that have purchased with a credit card, however, can enjoy protection under the
Consumer Credit Act 1974; Section 75 purchase protection on credit cards, which enables them to claim for tickets as well as for other purchases between £100 and £30,000. This means that many people that may have been ripped off in ticket scams recently for events such as Reading and V festivals, or even the Olympics, may be able to claim their money back.The benefits of paying by credit card have also been highlighted recently as a result of the budget airline Zoom going bust. Whilst those that paid by cash for their flights have not protection, and those that paid by debit card may have protection, travellers that paid for their flights with a credit card will be able to enjoy full protection according to industry officials, which means that whilst their holiday plans may have been spoiled they will not lose out financially.
You can compare credit cards by the level of extra protection they offer, including added insurances and protection against fraud and for purchases.
By: Reno Charlton
Article Directory: http://www.articledashboard.com
How Does Credit Info Affect Your Mortgage Approval Process
To mortgage lenders, types of it, open accounts, closed accounts,Low credit scores can be built back up, First, you can reduce your credit card balances down to 30% of their limits...
How Does Credit Info Affect Your
Mortgage Approval Process
To mortgage lenders, your credit info is going to be very important. While it may feel invasive, your mortgage credit reports will tell the banks whether or not they can trust you to repay them. They'll look for late payments, missed payments, bankruptcy filings, previous foreclosures, loans, total available credit, types of it, open accounts, closed accounts, collection
accounts and pretty much everything financial you can think of, dating back 7-10 years. Low credit scores can be built back up through good behavior, but it may take 1-3 years for the worst offenders to be mortgage worthy again.
Once you know your credit scores, you can work out any blemishes before home shopping. This should be done six months to a year before you plan on buying. If you have a score higher than 700, you needn't worry.
If you're in the 500s or 600s, then try to pull your score up 100 points to get the best mortgage interest rates. There are five ways you can do this in six months time. First, you can reduce your credit card balances down to 30% of their limits.
Secondly, you can cut your credit cards in half, but don't cancel your account because you'll lose points and increase the amount of available credit you're using up. Thirdly, it can boost your credit score to mix up your credit portfolio.
A healthy portfolio may include three unsecured cards, as well as a form of secured credit, which is like a student loan, auto loan, home equity loan or installment loan. Lastly, you can negotiate with all of your creditors to remove late payments, which can improve your credit overnight.
In addition to having healthy credit info and good credit scores, a prospective homeowner should work out a budget to see what kind of a monthly payment can realistically be afforded, given the monthly budget. As a general rule, borrowers can pay two-and-a-half times their annual salary. Lenders have traditionally calculated monthly payments using no more than 28% to 44% of your monthly income.
For instance, you should not pay more than $800 toward all your debts if your monthly income is $2,000. You can also calculate your debt-to-income ratio by adding up all your monthly debts and dividing by your monthly income. If your debt-to-income ratio is under 20-30%, then congratulations, you are financially stable!
Understanding how your credit info factors into your mortgage approval process is important. One of the biggest problems for many people is that they sell themselves short or feel they have limited options, even though there are many. Poor credit scores aren't the end of the world. Do not seek a sub-prime outlet if your credit is in the 500s; instead, try to work on your portfolio and be patient.
By: Michael Selvon
Article Directory: http://www.articledashboard.com
How Does Credit Info Affect Your
Mortgage Approval Process
To mortgage lenders, your credit info is going to be very important. While it may feel invasive, your mortgage credit reports will tell the banks whether or not they can trust you to repay them. They'll look for late payments, missed payments, bankruptcy filings, previous foreclosures, loans, total available credit, types of it, open accounts, closed accounts, collection
accounts and pretty much everything financial you can think of, dating back 7-10 years. Low credit scores can be built back up through good behavior, but it may take 1-3 years for the worst offenders to be mortgage worthy again.Once you know your credit scores, you can work out any blemishes before home shopping. This should be done six months to a year before you plan on buying. If you have a score higher than 700, you needn't worry.
If you're in the 500s or 600s, then try to pull your score up 100 points to get the best mortgage interest rates. There are five ways you can do this in six months time. First, you can reduce your credit card balances down to 30% of their limits.
Secondly, you can cut your credit cards in half, but don't cancel your account because you'll lose points and increase the amount of available credit you're using up. Thirdly, it can boost your credit score to mix up your credit portfolio.
A healthy portfolio may include three unsecured cards, as well as a form of secured credit, which is like a student loan, auto loan, home equity loan or installment loan. Lastly, you can negotiate with all of your creditors to remove late payments, which can improve your credit overnight.
In addition to having healthy credit info and good credit scores, a prospective homeowner should work out a budget to see what kind of a monthly payment can realistically be afforded, given the monthly budget. As a general rule, borrowers can pay two-and-a-half times their annual salary. Lenders have traditionally calculated monthly payments using no more than 28% to 44% of your monthly income.
For instance, you should not pay more than $800 toward all your debts if your monthly income is $2,000. You can also calculate your debt-to-income ratio by adding up all your monthly debts and dividing by your monthly income. If your debt-to-income ratio is under 20-30%, then congratulations, you are financially stable!
Understanding how your credit info factors into your mortgage approval process is important. One of the biggest problems for many people is that they sell themselves short or feel they have limited options, even though there are many. Poor credit scores aren't the end of the world. Do not seek a sub-prime outlet if your credit is in the 500s; instead, try to work on your portfolio and be patient.
By: Michael Selvon
Article Directory: http://www.articledashboard.com
Are You Letting Those Bad Credit Credit Cards Abuse You?
If you're looking into or are using bad credit credit cards, it's probably because you've run into a few financial road blocks in the past.
Are You Letting Those Bad
Credit Credit Cards Abuse You?
Nothing to be ashamed of -- it happens to the best of us. It definitely doesn't mean you should be treated like a second-class citizen in the world of finance, which is exactly what some credit card
companies try to do. If you've been using bad credit credit cards, or are trying to apply for one, there are some things to keep in mind.
They Want What?
So, you've got bad credit and you desperately want a credit card. Joe Blow calls you up and has a great offer for you. A $5,000 credit limit at 9 percent interest. There's just a small annual fee of $200 or $300 (or maybe even $500) you have to pay to get started.
Listen here, and listen closely - you'd better hang up that phone and hang it up fast. This is not a legitimate credit card offer. It's a scam. Bad credit credit cards do have annual fees attached to them, but you never pay them up front. If you do, you'll be stuck without a card and without your cash.
Paying For the Privilege
We pay for quite a few privileges. We pay for the privilege of running water. We pay for the privilege of renting a movie for two or three nights. We should never, ever pay for the privilege of sending a credit card payment in to our credit card company.
There are at least one or two bad credit credit cards that charge $7 or $8 to customers who wish to make online payments. This is abuse, my friends, and it shouldn't be taken lightly. If a credit card doesn't offer free online bill payment, don't even consider giving them the time of day.
You've Got to Be Kidding
Remember when I said that almost all bad credit credit cards charge an annual fee? This is true. That does not mean, however, that you should be charged a "processing" fee and a "program" fee in addition to the annual fee.
Some of the less-than-ethical bad credit credit cards on the market charge annual fees of $79 or more, plus processing fees of $125 and program fees of $125. If they give you a credit limit of only $500, you've only got a few bucks left by the time the card arrives and the idea is to rebuild credit, not max out your only card before you even lay eyes on it.
Do yourself a favor. When you're shopping for bad credit credit cards, understand that you will be taking a hit or two (higher interest rates and an annual fee), but you should not, by any means, take the abuse some of these cards try to dish out.
By: Sean Masterson
Article Directory: http://www.articledashboard.com
Are You Letting Those Bad
Credit Credit Cards Abuse You?
Nothing to be ashamed of -- it happens to the best of us. It definitely doesn't mean you should be treated like a second-class citizen in the world of finance, which is exactly what some credit card
companies try to do. If you've been using bad credit credit cards, or are trying to apply for one, there are some things to keep in mind.They Want What?
So, you've got bad credit and you desperately want a credit card. Joe Blow calls you up and has a great offer for you. A $5,000 credit limit at 9 percent interest. There's just a small annual fee of $200 or $300 (or maybe even $500) you have to pay to get started.
Listen here, and listen closely - you'd better hang up that phone and hang it up fast. This is not a legitimate credit card offer. It's a scam. Bad credit credit cards do have annual fees attached to them, but you never pay them up front. If you do, you'll be stuck without a card and without your cash.
Paying For the Privilege
We pay for quite a few privileges. We pay for the privilege of running water. We pay for the privilege of renting a movie for two or three nights. We should never, ever pay for the privilege of sending a credit card payment in to our credit card company.
There are at least one or two bad credit credit cards that charge $7 or $8 to customers who wish to make online payments. This is abuse, my friends, and it shouldn't be taken lightly. If a credit card doesn't offer free online bill payment, don't even consider giving them the time of day.
You've Got to Be Kidding
Remember when I said that almost all bad credit credit cards charge an annual fee? This is true. That does not mean, however, that you should be charged a "processing" fee and a "program" fee in addition to the annual fee.
Some of the less-than-ethical bad credit credit cards on the market charge annual fees of $79 or more, plus processing fees of $125 and program fees of $125. If they give you a credit limit of only $500, you've only got a few bucks left by the time the card arrives and the idea is to rebuild credit, not max out your only card before you even lay eyes on it.
Do yourself a favor. When you're shopping for bad credit credit cards, understand that you will be taking a hit or two (higher interest rates and an annual fee), but you should not, by any means, take the abuse some of these cards try to dish out.
By: Sean Masterson
Article Directory: http://www.articledashboard.com
Airline Miles Credit Card – 3 Tips To Maximize Your Benefits
Airline Miles Credit Card – 3 Tips ,Article,There are airline specific frequent flyer cards and bank issued air miles rewards cards – and the differences are huge. ...
Airline Miles Credit Card
3 Tips To Maximize Your Benefits
Airline miles credit cards and other cards that offer reward bonuses are becoming more popular
for consumers nowadays, since mortgage equity loans have dried up. Air miles rewards cards are a great way to save money on vacations and business travel. However, with every winner there is a loser. The credit card companies have to pay for the rewards they dole out somehow; unfortunately, only a few card holders get to be the winner and it’s the losers that end up paying for their rewards.
Choosing the right airline credit card doesn’t have to be a frightening experience. By considering these three points you can easily and comfortably save a ton of money. Here are the highlights:
Which class of airline card do you need? - There are airline specific frequent flyer cards and bank issued air miles rewards cards – and the differences are huge. In a nutshell, airline cards reward you for the miles you travel and bank sponsored cards reward you for the amount that you charge on the card. With airline cards you will earn miles much faster than bank sponsored credit cards if you travel frequently (five to ten times a year). However, these are the cards that have “blackouts” and restrictions that you must contend with.
Bank issued credit cards will give you miles or points that reduce or eliminate the cost of airline tickets, based on your accumulated purchases. For example, by using the Capital One® No Hassle Miles (SM) Ultra-For Professionals card you can rack up two miles for every dollar spent
on the card. With this card you aren’t bound to a specific airline or restricted by blackouts when you decide to travel.
Do not carry a balance! – Airline credit cards are designed to heavily penalize people who carry a balance from month to month with higher rates and fees. This is because most card holders will put a business trip or vacation on the card and pay that expense off throughout the year. By doing this you are almost assured to negate any savings that the card gave you by using it. You are the proverbial loser. If you do need to put vacation or travel expenses on the card for an extended amount of time, you should transfer the balance to a lower interest card while you pay down the balance.
Use it or lose it – Airline cards must be managed and used regularly to take advantage of their benefits. Most of the credit cards that are sponsored by a specific airline have a “use it or lose it” policy; this is why they are classified as “Frequent Flyer” credit cards. Also, most of these cards will carry a hefty annual fee, so if you’re not using them you should be losing them. When you carry one of these cards, managing your benefits is not an option.
The exception is bank issued credit cards. They will waive their annual fees on some cards for applicants who have exceptional credit. One way to take advantage of the bank issued cards is to use them for day to day purchases like groceries, gas, and even utilities. Some banks are even accepting payments with credit cards. By doing this you will easily rack up enough air miles to get a seat or two on your favorite airline each year.
This class of credit card usually will not have an expiration date on their miles rewards, so you are free to take as much time as you need to earn the tickets. It’s easy to see why airline miles credit cards and other cards that offer reward bonuses are becoming more popular for consumers. By choosing the right card for you, you are sure to save money on vacations and business travel.
By: Aubrey Clark
Article Directory: http://www.articledashboard.com
Airline Miles Credit Card
3 Tips To Maximize Your Benefits
Airline miles credit cards and other cards that offer reward bonuses are becoming more popular
for consumers nowadays, since mortgage equity loans have dried up. Air miles rewards cards are a great way to save money on vacations and business travel. However, with every winner there is a loser. The credit card companies have to pay for the rewards they dole out somehow; unfortunately, only a few card holders get to be the winner and it’s the losers that end up paying for their rewards.Choosing the right airline credit card doesn’t have to be a frightening experience. By considering these three points you can easily and comfortably save a ton of money. Here are the highlights:
Which class of airline card do you need? - There are airline specific frequent flyer cards and bank issued air miles rewards cards – and the differences are huge. In a nutshell, airline cards reward you for the miles you travel and bank sponsored cards reward you for the amount that you charge on the card. With airline cards you will earn miles much faster than bank sponsored credit cards if you travel frequently (five to ten times a year). However, these are the cards that have “blackouts” and restrictions that you must contend with.
Bank issued credit cards will give you miles or points that reduce or eliminate the cost of airline tickets, based on your accumulated purchases. For example, by using the Capital One® No Hassle Miles (SM) Ultra-For Professionals card you can rack up two miles for every dollar spent
on the card. With this card you aren’t bound to a specific airline or restricted by blackouts when you decide to travel.Do not carry a balance! – Airline credit cards are designed to heavily penalize people who carry a balance from month to month with higher rates and fees. This is because most card holders will put a business trip or vacation on the card and pay that expense off throughout the year. By doing this you are almost assured to negate any savings that the card gave you by using it. You are the proverbial loser. If you do need to put vacation or travel expenses on the card for an extended amount of time, you should transfer the balance to a lower interest card while you pay down the balance.
Use it or lose it – Airline cards must be managed and used regularly to take advantage of their benefits. Most of the credit cards that are sponsored by a specific airline have a “use it or lose it” policy; this is why they are classified as “Frequent Flyer” credit cards. Also, most of these cards will carry a hefty annual fee, so if you’re not using them you should be losing them. When you carry one of these cards, managing your benefits is not an option.
The exception is bank issued credit cards. They will waive their annual fees on some cards for applicants who have exceptional credit. One way to take advantage of the bank issued cards is to use them for day to day purchases like groceries, gas, and even utilities. Some banks are even accepting payments with credit cards. By doing this you will easily rack up enough air miles to get a seat or two on your favorite airline each year.
This class of credit card usually will not have an expiration date on their miles rewards, so you are free to take as much time as you need to earn the tickets. It’s easy to see why airline miles credit cards and other cards that offer reward bonuses are becoming more popular for consumers. By choosing the right card for you, you are sure to save money on vacations and business travel.
By: Aubrey Clark
Article Directory: http://www.articledashboard.com
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