Mano y mano, which one is better do you think - a credit card with low, ongoing APR or one that offers 0% APR as an intro rate?
There are so many types of credit cards that offer all sorts of promotions and rewards that it's definitely hard for a consumer to pinpoint which one would best suit their wants, needs and present financial situation. If, however, you've already managed to reduce your choices to just two and the battle's simply between the low ongoing APR credit card and the 0% APR intro rate credit card then here are several tips to help you determine which one is the best credit card for you.
Are You Planning To Buy Anything Expensive - Yes, the words zero percent can certainly be dazzling to the eye but is it something you really need? If you're planning to buy something very much expensive and that's beyond your budget then yes, it might be better if you go for a 0% APR intro rate credit card - just as long as you're sure you'll be able to pay off the full amount before the introductory period is over. Because if you can't and you don't, then what's the use of having 0% APR in the first place?
How Long Does The Introductory Period Last - Generally, for credit cards offering 0% APR intro rates, the introductory period usually lasts from ninety days to fifteen months.
If you're going to purchase something expensive but you don't think you can pay it off before the introductory offer expires then it's time to bring out your calculator once more. Compute how much your balance would be after the introductory period and see if it's still lower than what you'll pay with a low ongoing APR.
What Would The APR Be After The Introductory Period - Going back to the previous situation, let's just say that you don't think you'll be able to pay off the full amount in time. If the new APR is higher than what other low ongoing APR credit cards are offering then maybe, having a 0% APR intro rate credit card isn't the right credit card for your needs.
Are There Any Other Fees To Pay - Whether it's a 0% APR intro rate credit card or a credit card with a low, ongoing APR, don't forget to ask if there are other fees to pay. Naturally, it's better to stick with the credit card with lower fees.
Sunday, October 19, 2008
Credit Cards: Low APR vs 0% APR
Mano y mano, which one is better do you think - a credit card with low, ongoing APR or one that offers 0% APR as an intro rate?
There are so many types of credit cards that offer all sorts of promotions and rewards that it's definitely hard for a consumer to pinpoint which one would best suit their wants, needs and present financial situation. If, however, you've already managed to reduce your choices to just two and the battle's simply between the low ongoing APR credit card and the 0% APR intro rate credit card then here are several tips to help you determine which one is the best credit card for you.
Are You Planning To Buy Anything Expensive - Yes, the words zero percent can certainly be dazzling to the eye but is it something you really need? If you're planning to buy something very much expensive and that's beyond your budget then yes, it might be better if you go for a 0% APR intro rate credit card - just as long as you're sure you'll be able to pay off the full amount before the introductory period is over. Because if you can't and you don't, then what's the use of having 0% APR in the first place?
How Long Does The Introductory Period Last - Generally, for credit cards offering 0% APR intro rates, the introductory period usually lasts from ninety days to fifteen months.
If you're going to purchase something expensive but you don't think you can pay it off before the introductory offer expires then it's time to bring out your calculator once more. Compute how much your balance would be after the introductory period and see if it's still lower than what you'll pay with a low ongoing APR.
What Would The APR Be After The Introductory Period - Going back to the previous situation, let's just say that you don't think you'll be able to pay off the full amount in time. If the new APR is higher than what other low ongoing APR credit cards are offering then maybe, having a 0% APR intro rate credit card isn't the right credit card for your needs.
Are There Any Other Fees To Pay - Whether it's a 0% APR intro rate credit card or a credit card with a low, ongoing APR, don't forget to ask if there are other fees to pay. Naturally, it's better to stick with the credit card with lower fees.
There are so many types of credit cards that offer all sorts of promotions and rewards that it's definitely hard for a consumer to pinpoint which one would best suit their wants, needs and present financial situation. If, however, you've already managed to reduce your choices to just two and the battle's simply between the low ongoing APR credit card and the 0% APR intro rate credit card then here are several tips to help you determine which one is the best credit card for you.
Are You Planning To Buy Anything Expensive - Yes, the words zero percent can certainly be dazzling to the eye but is it something you really need? If you're planning to buy something very much expensive and that's beyond your budget then yes, it might be better if you go for a 0% APR intro rate credit card - just as long as you're sure you'll be able to pay off the full amount before the introductory period is over. Because if you can't and you don't, then what's the use of having 0% APR in the first place?
How Long Does The Introductory Period Last - Generally, for credit cards offering 0% APR intro rates, the introductory period usually lasts from ninety days to fifteen months.
If you're going to purchase something expensive but you don't think you can pay it off before the introductory offer expires then it's time to bring out your calculator once more. Compute how much your balance would be after the introductory period and see if it's still lower than what you'll pay with a low ongoing APR.
What Would The APR Be After The Introductory Period - Going back to the previous situation, let's just say that you don't think you'll be able to pay off the full amount in time. If the new APR is higher than what other low ongoing APR credit cards are offering then maybe, having a 0% APR intro rate credit card isn't the right credit card for your needs.
Are There Any Other Fees To Pay - Whether it's a 0% APR intro rate credit card or a credit card with a low, ongoing APR, don't forget to ask if there are other fees to pay. Naturally, it's better to stick with the credit card with lower fees.
Everything About 0% Intro Rate Credit Cards
Tired of reading review after review about 0% APR intro rate credit cards? Having no luck when it comes to finding an all-in-one-review about 0% APR intro rate credit cards? Confused with what you've read so far about 0% APR intro rate credit cards because everything seems to be contradictory? Well, look no more because this article is indeed what you're looking for.
In here, you'll learn everything you want to know about 0% APR intro rate credit cards. In this article, you may also discover more than you bargained about 0% APR intro rate credit cards - in a good way, of course. Ready for Lesson Number One about 0% APR intro rate credit cards? Well, here goes.
It's True - Yes, 0% APR intro rate credit cards do exist and if we have our way about it, you'll be one of the lucky people to qualify for a 0% APR intro rate credit cards.
The Application Process - Applying for any credit card, whether it's for 0% APR intro rate credit cards or for credit cards offering reward points is always a tad difficult so don't expect overnight success, especially since you're angling for 0% APR intro rates.
The application process for a 0% APR intro rate credit card starts with submitting the necessary documents - this is SOP for all credit card applications - that would substantiate your contact details and give them an overview about your present financial status. Upon submission of the usual documents, depending on your income level and credit reputation, you may be contacted by the credit company and asked to submit additional documents.
The Qualifications for 0% APR intro rate credit cards - Basically, if you want to have 0% APR intro rate, you must have a squeaky clean credit reputation. That means having a reputation of paying debts promptly, not owing too much from the bank, not having high balances on your other credit cards, not having too much mortgages under your name and not having so many people requiring a credit check on you.
If you're not sure whether you qualify for a 0% APR intro rate credit card, simply approach the nearest credit bureau and request for a copy of your credit report. The details in your credit report can easily tell you if you've a good shot of owning a 0% APR intro rate credit card or not. People with FICO scores equal to 650 or more are more or less guaranteed of having their application approved.
In here, you'll learn everything you want to know about 0% APR intro rate credit cards. In this article, you may also discover more than you bargained about 0% APR intro rate credit cards - in a good way, of course. Ready for Lesson Number One about 0% APR intro rate credit cards? Well, here goes.
It's True - Yes, 0% APR intro rate credit cards do exist and if we have our way about it, you'll be one of the lucky people to qualify for a 0% APR intro rate credit cards.
The Application Process - Applying for any credit card, whether it's for 0% APR intro rate credit cards or for credit cards offering reward points is always a tad difficult so don't expect overnight success, especially since you're angling for 0% APR intro rates.
The application process for a 0% APR intro rate credit card starts with submitting the necessary documents - this is SOP for all credit card applications - that would substantiate your contact details and give them an overview about your present financial status. Upon submission of the usual documents, depending on your income level and credit reputation, you may be contacted by the credit company and asked to submit additional documents.
The Qualifications for 0% APR intro rate credit cards - Basically, if you want to have 0% APR intro rate, you must have a squeaky clean credit reputation. That means having a reputation of paying debts promptly, not owing too much from the bank, not having high balances on your other credit cards, not having too much mortgages under your name and not having so many people requiring a credit check on you.
If you're not sure whether you qualify for a 0% APR intro rate credit card, simply approach the nearest credit bureau and request for a copy of your credit report. The details in your credit report can easily tell you if you've a good shot of owning a 0% APR intro rate credit card or not. People with FICO scores equal to 650 or more are more or less guaranteed of having their application approved.
The Truth About "Free" Credit Reports
Too many people are being confused, mislead and taken advantage of by tem, "Free Credit Report". We set the record straight so that won't happen. Text How many of us have looked at anything offered to us for "free"? Not me? Of course I have. In this day in age when gas prices are listed as "Arm" and "Leg", providing health insurance for your family costs more than some mortgage payments and the cost of raising kids looks like a hockey stick pasted onto a graph, you bet I look at offers to save money.
Therein lie's the problem. It seems like the vast majority of American consumers are desperate to cut costs, any costs, and will jump too soon at offers promising to do just that. Sometimes when you combine a cost cutting mentality with the importance of credit, not only to purchase the big ticket items important to us, but more and more to simply survive in this economy, desperation happens. Unfortunately, the marketers know this too. So, without a little education anyone can get confused and the likelihood of being taken advantage of increases significantly. The good news is that just a little education will save you plenty.
Take for example, the term "Free Credit Report". It now ranks right up there with the ubiquitous, "new" and "improved". "Free Credit Report" has become part of that lexicon of advertising buzz words that are absolutely meaningless to me. But for many, there is much confusion over this term. Why? I think mainly because it has been announced that federal law dictates we are all entitled to a free credit report on the front page of all the newspapers.
We know everyone wants a free credit report, which is why we started our site. People naturally want something that is mandated by law to be at no cost, is front page news and is so incredibly important to each of us if we want to purchase just about anything. We know people want their free credit report and because most all of us work so hard for our money, we think people deserve hearing the truth about the subject. That is why we even put a section on our page entitled, "The Truth About Free Credit Reports".
So, is it not true? Yes, it is true, it's just that the devil is in the details and the resulting confusion has been a bonanza for those seeking to cash in on the confusion. In fact, each of us in the good ole U. S. of A. is entitled to a free credit report. But, how do you get it? Where do you get it? Who is giving it to you? Why is it being offered for free? And most importantly, who cannot offer you one for free?
Who cannot offer a free credit report? Let's start with the last one first because it shines a lot of light on the rest of the questions. Any company, web site or service that is in business for a profit and is not named Experian, Trans Union or Equifax is not able to provide anyone at any time with anything remotely resembling a credit report free of cost. Period. End of story. Got that? Further, there is one place set up on the web to get free copies of credit reports at no cost and it is: www.annualcreditreport.com . We'll talk more about this site a little later but, other wise, caveat emptor, let the buyer beware.
How then are these offers being made? Look closely, the "Free" report is usually offered initially upon signing up for a service that charges your credit card each month for monitoring your credit. If you cancel the service just in the nick of time, before the charge is made to your card, you will get it at no cost. What a hassle! And the bet is you will wake up at least one, if not a couple or more months later with several charges to your card. You think these guys make foolish bets?!
Then what caused a free credit report to be offered on the front page of newspapers, who is providing them and how and where do I get one? Due to the importance of consumer credit history, identity theft and complaints from consumer rights groups about having to purchase a credit report in order to gain knowledge about the contents shown on individual consumer reports, even if it was reported inaccurately, a change was mandated.
The Fair and Accurate Consumer Trade Act (FACTA), a revision of the Fair Credit Reporting Act, provided for one credit report free of charge from the reporting agencies (Experian, Trans Union and Equifax) every twelve months, if and only if, you haven't received a credit report in the previous twelve months. The consumer, by either mailing a written request to the three major credit reporting agencies or going to www.annualcreditreport.com one can obtain the free report if they meet the criteria. This program was and is being phased in to sections of the U.S. by the credit reporting agencies starting in the western states, with the northeastern states at the time of this writing still to come.
However, Pamela Yip of The Dallas Morning News writes that even this has not been without its problems.
"The Federal Trade Commission said Experian Information Solutions Inc., one of the three major credit bureaus, settled complaints that it "deceptively marketed 'free credit reports' by not adequately disclosing that consumers automatically would be signed up for a credit report monitoring service and charged $79.95 if they didn't cancel within 30 days... . With the help of the Federal Trade Commission, the bureaus established www.annualcreditreport.com as the only authorized online source for consumers to get a free report under federal law.
While many consumers haven't had any problem getting their reports, others say they've been hit with sales pitches for products and services from the credit bureaus or were diverted to imposter sites. The FTC said the company led consumers to its www.freecredit report.com and www.consumer info.com Web sites. Radio, TV, e-mail and Web ads promised free reports and "a bonus - free trials of a credit-monitoring service."
The FTC said consumers "were assured that: 'Your card will not be charged during the free trial period. However, valid credit card information is required to establish your account.' "
What the Web sites didn't adequately disclose is that consumers would be charged the $79.95 annual fee if they didn't cancel within 30 days, the FTC said.
"ConsumerInfo billed the credit cards that it had told consumers were 'required only to establish your account,' and, in some cases, automatically renewed memberships by rebilling consumers without notice," the agency said.
As part of the settlement, the FTC required ConsumerInfo.com, an Experian company, to "give up $950,000 in ill-gotten gains."
Experian also has agreed to provide refunds to consumers who purchased credit-monitoring products and ordered a free credit report between Nov. 1, 2000, and Sept. 15, 2003.
"It's unfair and deceptive to promise consumers something for free and then trick them into paying for products they didn't want in the first place," said Lydia Parnes, director of the FTC's Bureau of Consumer Protection.
"It wasn't an attempt to mislead at all," said Peg Smith, an Experian executive vice president. "We absolutely deny any wrongdoing." She does acknowledge that consumers may have been confused.
"To the effect that our product offering has caused that confusion, we certainly regret that," Ms. Smith said. "We encourage consumers to read the language in any disclosure on any Web site, including our own."
The FTC also requires ConsumerInfo.com to state clearly that its free credit report offer isn't related to the federal program." http://nl.newsbank.com/nl-search/we/Archives?p_action=list&p_topdoc=21
The reality is that no one credit report or combination of three credit reports by and of themselves is sufficient to educate oneself about where you stand as a consumer in the eyes of a lender. Imagine a high speed race boat zooming across a lake at top speed without a steering wheel. Where it is going is a complete mystery but one thing is for sure, it will crash and crash quickly unless you get control. That's right, you. Because without your credit scores and the knowledge about what they mean, how they were calculated or how a lender views them, you are headed for a crash.
No bank, credit card issuer, mortgage company, retail store or any other credit provider will grant you any item, service or product without looking almost exclusively at your credit scores and the average person has no idea what their scores are and even if they did, many if not most, wouldn't know what they mean.
For example, most people don't even know that repeated "pulling" of your credit reports by potential credit grantors lowers your scores by as much as four points per "pull". You start "shopping" around for the best rate on a credit card by allowing each credit issuer to run a credit report on you and your score will take a dive. The difference between a 699 score and a 700 represents thousands and thousands of dollars in interest.
Often, credit issuers don't make it perfectly clear that your credit history is being accessed when you respond to their offer for a new card over the phone. The call center sales representative also doesn't explain and state clearly to you, that your credit history will show an "official inquiry" which counts against your scores whether you are accepted or rejected.
Most people don't know that a maxed out credit card lowers their scores even if they pay on time every month. Many don't know until it is too late that one late payment on one credit card will cause the interest rate charged to skyrocket not only on that card but any other cards that have a balance! Most also don't know that a credit card balance showing less than thirty per cent of the available balance improves the score. Most don't know that in calculating credit scores, your payment history counts as 35% of the score, amounts owed count 30% of the score, length of your credit history counts 15% of the score, new credit is 10% of the score and types of credit in use is 10%.
What is the truth about free credit reports? The truth, is that consumers need to read the fine print very, very carefully and get educated. The truth about credit reports in general is that only part of the story is being told by one. The truth, is that knowledge is power and without it your money is being taken from you, your buying power and therefore your future is being dictated to you rather than by you and that the cost of everything including insurance is based on your scores.
If asked for my advice to the average consumer? Worry less about getting a "free" report and more about the real cost of being ignorant regarding credit. Worry more about the immediate and long term costs of not taking control of what is reported on your credit report both the correct and incorrect. Gain some credit knowledge. It is easy to do and will literally save you a fortune. One thing is absolutely for sure, your money and future and your children's future will be severely impacted by your credit. How, is up to you.
Therein lie's the problem. It seems like the vast majority of American consumers are desperate to cut costs, any costs, and will jump too soon at offers promising to do just that. Sometimes when you combine a cost cutting mentality with the importance of credit, not only to purchase the big ticket items important to us, but more and more to simply survive in this economy, desperation happens. Unfortunately, the marketers know this too. So, without a little education anyone can get confused and the likelihood of being taken advantage of increases significantly. The good news is that just a little education will save you plenty.
Take for example, the term "Free Credit Report". It now ranks right up there with the ubiquitous, "new" and "improved". "Free Credit Report" has become part of that lexicon of advertising buzz words that are absolutely meaningless to me. But for many, there is much confusion over this term. Why? I think mainly because it has been announced that federal law dictates we are all entitled to a free credit report on the front page of all the newspapers.
We know everyone wants a free credit report, which is why we started our site. People naturally want something that is mandated by law to be at no cost, is front page news and is so incredibly important to each of us if we want to purchase just about anything. We know people want their free credit report and because most all of us work so hard for our money, we think people deserve hearing the truth about the subject. That is why we even put a section on our page entitled, "The Truth About Free Credit Reports".
So, is it not true? Yes, it is true, it's just that the devil is in the details and the resulting confusion has been a bonanza for those seeking to cash in on the confusion. In fact, each of us in the good ole U. S. of A. is entitled to a free credit report. But, how do you get it? Where do you get it? Who is giving it to you? Why is it being offered for free? And most importantly, who cannot offer you one for free?
Who cannot offer a free credit report? Let's start with the last one first because it shines a lot of light on the rest of the questions. Any company, web site or service that is in business for a profit and is not named Experian, Trans Union or Equifax is not able to provide anyone at any time with anything remotely resembling a credit report free of cost. Period. End of story. Got that? Further, there is one place set up on the web to get free copies of credit reports at no cost and it is: www.annualcreditreport.com . We'll talk more about this site a little later but, other wise, caveat emptor, let the buyer beware.
How then are these offers being made? Look closely, the "Free" report is usually offered initially upon signing up for a service that charges your credit card each month for monitoring your credit. If you cancel the service just in the nick of time, before the charge is made to your card, you will get it at no cost. What a hassle! And the bet is you will wake up at least one, if not a couple or more months later with several charges to your card. You think these guys make foolish bets?!
Then what caused a free credit report to be offered on the front page of newspapers, who is providing them and how and where do I get one? Due to the importance of consumer credit history, identity theft and complaints from consumer rights groups about having to purchase a credit report in order to gain knowledge about the contents shown on individual consumer reports, even if it was reported inaccurately, a change was mandated.
The Fair and Accurate Consumer Trade Act (FACTA), a revision of the Fair Credit Reporting Act, provided for one credit report free of charge from the reporting agencies (Experian, Trans Union and Equifax) every twelve months, if and only if, you haven't received a credit report in the previous twelve months. The consumer, by either mailing a written request to the three major credit reporting agencies or going to www.annualcreditreport.com one can obtain the free report if they meet the criteria. This program was and is being phased in to sections of the U.S. by the credit reporting agencies starting in the western states, with the northeastern states at the time of this writing still to come.
However, Pamela Yip of The Dallas Morning News writes that even this has not been without its problems.
"The Federal Trade Commission said Experian Information Solutions Inc., one of the three major credit bureaus, settled complaints that it "deceptively marketed 'free credit reports' by not adequately disclosing that consumers automatically would be signed up for a credit report monitoring service and charged $79.95 if they didn't cancel within 30 days... . With the help of the Federal Trade Commission, the bureaus established www.annualcreditreport.com as the only authorized online source for consumers to get a free report under federal law.
While many consumers haven't had any problem getting their reports, others say they've been hit with sales pitches for products and services from the credit bureaus or were diverted to imposter sites. The FTC said the company led consumers to its www.freecredit report.com and www.consumer info.com Web sites. Radio, TV, e-mail and Web ads promised free reports and "a bonus - free trials of a credit-monitoring service."
The FTC said consumers "were assured that: 'Your card will not be charged during the free trial period. However, valid credit card information is required to establish your account.' "
What the Web sites didn't adequately disclose is that consumers would be charged the $79.95 annual fee if they didn't cancel within 30 days, the FTC said.
"ConsumerInfo billed the credit cards that it had told consumers were 'required only to establish your account,' and, in some cases, automatically renewed memberships by rebilling consumers without notice," the agency said.
As part of the settlement, the FTC required ConsumerInfo.com, an Experian company, to "give up $950,000 in ill-gotten gains."
Experian also has agreed to provide refunds to consumers who purchased credit-monitoring products and ordered a free credit report between Nov. 1, 2000, and Sept. 15, 2003.
"It's unfair and deceptive to promise consumers something for free and then trick them into paying for products they didn't want in the first place," said Lydia Parnes, director of the FTC's Bureau of Consumer Protection.
"It wasn't an attempt to mislead at all," said Peg Smith, an Experian executive vice president. "We absolutely deny any wrongdoing." She does acknowledge that consumers may have been confused.
"To the effect that our product offering has caused that confusion, we certainly regret that," Ms. Smith said. "We encourage consumers to read the language in any disclosure on any Web site, including our own."
The FTC also requires ConsumerInfo.com to state clearly that its free credit report offer isn't related to the federal program." http://nl.newsbank.com/nl-search/we/Archives?p_action=list&p_topdoc=21
The reality is that no one credit report or combination of three credit reports by and of themselves is sufficient to educate oneself about where you stand as a consumer in the eyes of a lender. Imagine a high speed race boat zooming across a lake at top speed without a steering wheel. Where it is going is a complete mystery but one thing is for sure, it will crash and crash quickly unless you get control. That's right, you. Because without your credit scores and the knowledge about what they mean, how they were calculated or how a lender views them, you are headed for a crash.
No bank, credit card issuer, mortgage company, retail store or any other credit provider will grant you any item, service or product without looking almost exclusively at your credit scores and the average person has no idea what their scores are and even if they did, many if not most, wouldn't know what they mean.
For example, most people don't even know that repeated "pulling" of your credit reports by potential credit grantors lowers your scores by as much as four points per "pull". You start "shopping" around for the best rate on a credit card by allowing each credit issuer to run a credit report on you and your score will take a dive. The difference between a 699 score and a 700 represents thousands and thousands of dollars in interest.
Often, credit issuers don't make it perfectly clear that your credit history is being accessed when you respond to their offer for a new card over the phone. The call center sales representative also doesn't explain and state clearly to you, that your credit history will show an "official inquiry" which counts against your scores whether you are accepted or rejected.
Most people don't know that a maxed out credit card lowers their scores even if they pay on time every month. Many don't know until it is too late that one late payment on one credit card will cause the interest rate charged to skyrocket not only on that card but any other cards that have a balance! Most also don't know that a credit card balance showing less than thirty per cent of the available balance improves the score. Most don't know that in calculating credit scores, your payment history counts as 35% of the score, amounts owed count 30% of the score, length of your credit history counts 15% of the score, new credit is 10% of the score and types of credit in use is 10%.
What is the truth about free credit reports? The truth, is that consumers need to read the fine print very, very carefully and get educated. The truth about credit reports in general is that only part of the story is being told by one. The truth, is that knowledge is power and without it your money is being taken from you, your buying power and therefore your future is being dictated to you rather than by you and that the cost of everything including insurance is based on your scores.
If asked for my advice to the average consumer? Worry less about getting a "free" report and more about the real cost of being ignorant regarding credit. Worry more about the immediate and long term costs of not taking control of what is reported on your credit report both the correct and incorrect. Gain some credit knowledge. It is easy to do and will literally save you a fortune. One thing is absolutely for sure, your money and future and your children's future will be severely impacted by your credit. How, is up to you.
5 Tips for Repairing Bad Credit
Almost all of us are fond of overspending! We buy things we don't really need. Once we see something that catches our eyes, we automatically buy it - often without even thinking if we still have money or not.
People usually do this in order to please themselves. And lots of them have their own credit cards as a reserve once they run out of cash. They tend to spend a large amount of money in order to serve their caprices or to make them feel better about themselves. Unfortunately, this never really works, and it causes more damage than it cures.
Almost everybody has a credit file, maintained by a credit reference agency. Many people have bad credit facts on their files, such as defaults and bad payment history. This means that when these people apply for credit, such as loans, mortgages, credit cards, car finance or even for a simple bank account, they may be turned away.
Sometimes these people are not even aware of their credit information and credit files, which cause them to have a bad credit.
Having bad credit can adversely affect every aspect of your life. A low credit score means severe financial limitations and difficulties. As if this is not enough, you will also have handfuls of credit councilors and other so called money managers trying to take even more from you with their debt consolidation plans that promise to "cut your payments in half", "save you thousands", or our personal favorite - "get you out of debt with the click of a mouse".
If only our computer mouse had the debt relief magic that those bad credit spam emails promise. Although getting out of debt can't be done with a click of a mouse button, it's probably not as difficult as you think.
If you are in this kind of predicament, it is imperative for your financial stability that you do everything you can to repair it.
Now, you might be thinking exactly what is bad credit repair?
"Bad Credit repair" is a common term often used to describe a systematic process of rehabilitating an individual's creditworthiness, or financial credit reputation.
It is a process that you can carry out yourself, and sometimes the steps you can take are simple. However many people find credit repair a difficult and discouraging procedure.
This process is usually initiated by obtaining copies of your credit report, reviewing the credit report for errors, omissions, and misleading information, and requesting corrections to such information by means of a formal dispute.
If you are worrying too much about your credit, conquer that feeling! No matter how bad your credit is, you can take the following steps to make it better:
1. Pay all of your bills on time. Decide if you have the income to meet all of your obligations. Remember, late payments (payments that are 30 days late or more) have a negative effect on your credit rating.
2. Lessen the number of credit cards that you have. This will reduce the tendency to overspend. Contact your creditors about your plan and close your other accounts.
3. Avoid bankruptcies. Bankruptcy may not the end of the world but it will be with you for years. It will stay in your credit report for at least years and hamper your ability to get credit in the future.
4. Request in writing that your creditors reduce the credit limits on your accounts to lower your amount of available credit.
5. Monitor results and stick to your plan. Review your file every few months to make sure that any errors that you have disputed have been corrected. After a period of time inquiries will no longer count against you provided you haven't been applying for credit.
These steps can help anywone with bad credit. If you are in that situation, don't be troubled. Bad credit can almost always be improved or corrected. JUST:
avoid overspending
establish a realistic budget
get out of debt now
build a financial cushion
read and understand your credit report
get mistakes on your credit report fixed
get positive information added to your credit report
negotiate with creditors
Set up your plan and stick with it!
People usually do this in order to please themselves. And lots of them have their own credit cards as a reserve once they run out of cash. They tend to spend a large amount of money in order to serve their caprices or to make them feel better about themselves. Unfortunately, this never really works, and it causes more damage than it cures.
Almost everybody has a credit file, maintained by a credit reference agency. Many people have bad credit facts on their files, such as defaults and bad payment history. This means that when these people apply for credit, such as loans, mortgages, credit cards, car finance or even for a simple bank account, they may be turned away.
Sometimes these people are not even aware of their credit information and credit files, which cause them to have a bad credit.
Having bad credit can adversely affect every aspect of your life. A low credit score means severe financial limitations and difficulties. As if this is not enough, you will also have handfuls of credit councilors and other so called money managers trying to take even more from you with their debt consolidation plans that promise to "cut your payments in half", "save you thousands", or our personal favorite - "get you out of debt with the click of a mouse".
If only our computer mouse had the debt relief magic that those bad credit spam emails promise. Although getting out of debt can't be done with a click of a mouse button, it's probably not as difficult as you think.
If you are in this kind of predicament, it is imperative for your financial stability that you do everything you can to repair it.
Now, you might be thinking exactly what is bad credit repair?
"Bad Credit repair" is a common term often used to describe a systematic process of rehabilitating an individual's creditworthiness, or financial credit reputation.
It is a process that you can carry out yourself, and sometimes the steps you can take are simple. However many people find credit repair a difficult and discouraging procedure.
This process is usually initiated by obtaining copies of your credit report, reviewing the credit report for errors, omissions, and misleading information, and requesting corrections to such information by means of a formal dispute.
If you are worrying too much about your credit, conquer that feeling! No matter how bad your credit is, you can take the following steps to make it better:
1. Pay all of your bills on time. Decide if you have the income to meet all of your obligations. Remember, late payments (payments that are 30 days late or more) have a negative effect on your credit rating.
2. Lessen the number of credit cards that you have. This will reduce the tendency to overspend. Contact your creditors about your plan and close your other accounts.
3. Avoid bankruptcies. Bankruptcy may not the end of the world but it will be with you for years. It will stay in your credit report for at least years and hamper your ability to get credit in the future.
4. Request in writing that your creditors reduce the credit limits on your accounts to lower your amount of available credit.
5. Monitor results and stick to your plan. Review your file every few months to make sure that any errors that you have disputed have been corrected. After a period of time inquiries will no longer count against you provided you haven't been applying for credit.
These steps can help anywone with bad credit. If you are in that situation, don't be troubled. Bad credit can almost always be improved or corrected. JUST:
avoid overspending
establish a realistic budget
get out of debt now
build a financial cushion
read and understand your credit report
get mistakes on your credit report fixed
get positive information added to your credit report
negotiate with creditors
Set up your plan and stick with it!
Monday, October 13, 2008
Essential Tips on How to Get a Credit Card
By: Paul Wilson
Banks and their marketing associates and divisions are vying with one another to capture a thick slice of the "credit card pie." Offers by phone and mail of free credit cards, pre-approved credit cards, cards with special bonanzas, money back schemes, low introductory rates, and umpteen other perks pour in tempting you everyday.
A credit card is just a form of borrowing that does not come free. Credit terms, interest rates, fees and more can lay a stress on your bank balance. Credit cards are a temptation to spend now and pay later. What invariably happens is that people spend more than they can handle.
Informed consumers must always weigh carefully the pros and cons and compare different options before deciding on a credit card.
Before you decide find out
The advantages of a credit card are that it is a safe alternative to cash. Prevents loss as well as theft of cash. Using a card wisely can build a good credit history which helps when you need a loan or subsidy. It is useful in emergencies like accidents, urgent hospitalization, and unavoidable circumstances like natural calamities and so on. It grants a breather and gives you time to pay the bill. Some memberships offer travel or accident insurance to the card owners at no cost. They also offer privileges like discounts at restaurants, shopping malls, and holiday packages.
The other side is that you can get carried away and live beyond your means, ultimately falling into debt.
To be eligible you need:
To be at least 18 years old.
Have some income or the backing of credit worthy parents.
Have an operational bank account.
A telephone.
A good credit rating. Your monthly expenses must not equal or exceed your income. Ideal expenses must account for approximately 50% of your income.
To get a Visa or Master card your income must exceed US$ 12,000 a year. Or, you need to apply for a secured credit card where you pay upfront a certain amount of money as security deposit.
There are many kinds of credit cards to choose from. Unsecured standard and classic cards are those with a credit limit of US$ 2000 and generally charge higher interest rates and offer lower or less favorable terms than the platinum and gold cards. Unsecured platinum and gold cards are for people with high credit ratings, and the limits for these cards are between US$ 2000 to US$ 100,000.
Here are a few links that will give information and opportunities to apply for cards online:
Visa at www.usa.visa.com/?country=us&ep=v_gg_new provides information, gives tips, and has listed a number of financial institutions that offer Visa cards and a wide range of services. One can apply for a card online.
MasterCard International at www.mastercard.com/index.html is comprehensive with information, advice, and options of choosing and applying for a card online. They have an online form which when filled will give information of which card would be ideal and a channel which provides instant comparison of various card options.
CreditCards.com at http://www.creditcards.com/ has articles, FAQs, a site map, and online application channels.
Tips:
Pick a card because it has the lowest APR.
Pick a card because all its terms and conditions have been carefully vetted by you. Read the fine print.
Never pick a card because it is free for a year or life.
Do not choose a card because it offers a low introductory rate.
Do not choose a card because it has a cash back policy or great rewards programs
Banks and their marketing associates and divisions are vying with one another to capture a thick slice of the "credit card pie." Offers by phone and mail of free credit cards, pre-approved credit cards, cards with special bonanzas, money back schemes, low introductory rates, and umpteen other perks pour in tempting you everyday.
A credit card is just a form of borrowing that does not come free. Credit terms, interest rates, fees and more can lay a stress on your bank balance. Credit cards are a temptation to spend now and pay later. What invariably happens is that people spend more than they can handle.
Informed consumers must always weigh carefully the pros and cons and compare different options before deciding on a credit card.
Before you decide find out
The advantages of a credit card are that it is a safe alternative to cash. Prevents loss as well as theft of cash. Using a card wisely can build a good credit history which helps when you need a loan or subsidy. It is useful in emergencies like accidents, urgent hospitalization, and unavoidable circumstances like natural calamities and so on. It grants a breather and gives you time to pay the bill. Some memberships offer travel or accident insurance to the card owners at no cost. They also offer privileges like discounts at restaurants, shopping malls, and holiday packages.
The other side is that you can get carried away and live beyond your means, ultimately falling into debt.
To be eligible you need:
To be at least 18 years old.
Have some income or the backing of credit worthy parents.
Have an operational bank account.
A telephone.
A good credit rating. Your monthly expenses must not equal or exceed your income. Ideal expenses must account for approximately 50% of your income.
To get a Visa or Master card your income must exceed US$ 12,000 a year. Or, you need to apply for a secured credit card where you pay upfront a certain amount of money as security deposit.
There are many kinds of credit cards to choose from. Unsecured standard and classic cards are those with a credit limit of US$ 2000 and generally charge higher interest rates and offer lower or less favorable terms than the platinum and gold cards. Unsecured platinum and gold cards are for people with high credit ratings, and the limits for these cards are between US$ 2000 to US$ 100,000.
Here are a few links that will give information and opportunities to apply for cards online:
Visa at www.usa.visa.com/?country=us&ep=v_gg_new provides information, gives tips, and has listed a number of financial institutions that offer Visa cards and a wide range of services. One can apply for a card online.
MasterCard International at www.mastercard.com/index.html is comprehensive with information, advice, and options of choosing and applying for a card online. They have an online form which when filled will give information of which card would be ideal and a channel which provides instant comparison of various card options.
CreditCards.com at http://www.creditcards.com/ has articles, FAQs, a site map, and online application channels.
Tips:
Pick a card because it has the lowest APR.
Pick a card because all its terms and conditions have been carefully vetted by you. Read the fine print.
Never pick a card because it is free for a year or life.
Do not choose a card because it offers a low introductory rate.
Do not choose a card because it has a cash back policy or great rewards programs
Kreditcards.org
We will be bring you the best articles, offers related to creditcards here.
Do keep checking my blog for latest offers.
Do keep checking my blog for latest offers.
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