Sunday, July 31, 2005
Bad Credit Loans:Maybank Sees Growth In Use Of Credit And Debit Cards (Bernama)
PETALING JAYA, July 12 (Bernama) -- The use of credit or debit cards as an alternative to cash in transactions is likely to grow in the coming years, said Malayan Banking Bhd's executive vice president and head of the card business group, Ashraf Ali Abdul Kadir. more...
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Saturday, July 30, 2005
Bad Credit Loans:Credit cards: Bankruptcy cause or last resort? (Salt Lake Tribune)
One thing is clear from the financial statements submitted each year by Utahns seeking relief from their debts in U.S. Bankruptcy Court. Credit cards and insolvencies go hand in hand. more...
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Bad Credit Loans:Bethpage credit union to replace cards (Newsday)
An ounce of prevention is worth a pound of cure. That is the attitude of Bethpage Federal Credit Union's CEO Kirk Kordeleski. more...
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Bad Credit Loans:Should You Pay Points on Mortgage Loans?
In real estate lingo, a point is one percentage point of the overall loan that is paid up front, typically at the time of closing. For example, if you are borrowing $150,000 on a mortgage loan and ... more...
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Friday, July 29, 2005
Bad Credit Loans- 8 ways to consolidate debt
Eight Ways to Consolidate Debt
Next to winning the lottery, a debt consolidation loan is a debtor’s dream. With one monthly payment and a fixed monthly payment schedule, you can actually see an end to those monthly payments.
In reality, consolidating bills isn’t always easy. If you have a lot of debt, it can be hard to find a consolidation loan at a lower interest rate. And if you’re not careful, you can end up deeper in debt than when you started.
Your goal in consolidating your debt should be to lower your overall costs. To accomplish this there are two things to keep in mind:
1. Get the lowest interest rate possible
2. Have a plan to pay off your debts in 3 – 5 years.
Here are some of the best ways to consolidate:
Using Credit Cards
The good news about this method is that with a good credit rating, you may get a much lower rate than other forms of consolidation loans. And since credit card issuers don’t require collateral, you aren’t “risking the farm.”
Call your current issuer to ask what interest rates they will offer you if you transfer balances from other cards over to theirs. Go for a fixed rate if you can get it, and ask them to waive any transfer fees. If you can’t negotiate a low rate with your current issuer, try shopping for a new card at a site such as CardRatings.com. But be careful! Too many applications for credit in a short period of time can hurt your credit rating.
Once you do consolidate this way, be sure to set up an optimal payment plan so you can be debt-free in 3 – 5 years.
Home Equity Loans
With a home equity loan, you borrow against the value of you home, minus any other mortgages. The two major kinds are:
1. A Home Equity Loan – a fixed amount of money for a fixed period of time (sometimes at a fixed rate) and
2. A “Home Equity Line of Credit” where you borrow up to a pre-approved credit limit (interest rates usually variable) and can borrow again if you still have money available.
These loans can offer attractive rates, low payments, and the interest is usually tax-deductible if you itemize.
Many issuers offer no or low closing costs for these loans. Interest rates are often variable, however, and there’s always the risk that you can lose your home if you can’t pay.
Cash Out Refinance
Refinancing your home and taking out money to pay off bills (called “cash-out refinance”) is yet another way to tap the equity in your home. If you can refinance at a substantially lower interest rate, you’ll eliminate the high interest costs of the debts you pay off, and you could even come out with a lower payment than you have right now since rates are so low.
One option to consider: an interest-only loan. By lowering your monthly payment, you can free up money to use toward paying down other high-rate debt or building a retirement fund.
Make sure you understand the total cost of refinancing. Take any money you’ve freed up by paying off other bills and use that to create an emergency savings fund.
Traditional Debt Consolidation Loans
A debt consolidation loan is an unsecured personal loan, and the only collateral you are offering for the lender’s security is you. Because lenders consider them risky loans, they’re usually more expensive and not always easy to get if you have a lot of debt.
If the interest rate is too high to make it worth it and the repayment term is ten or fifteen years, you should probably consider another method of consolidation. However, if the term and interest rate are right, this can be a great way to actually save money in the end. (Check Bankrate.com for current averages). Remember, to calculate the total cost of the loan from start to pay-off.
Credit Counseling
Credit counseling agencies may help you get out of debt, though they don’t actually consolidate your debt.
Instead, payment plans (usually with lower interest and fees) will be worked out for all of your eligible debts. You’ll make one monthly payment to the counseling agency, which will pay all your creditors.
Participating in a credit counseling program generally won’t hurt your credit rating, and if you stick to the plan you can be out of debt in three to six years. But be careful which agency you work with. If the counseling agency pays your bills late, you’ll pay the price since you’re still responsible to the lender. It happens.
Debt Settlement
Debt settlement is another option that’s become increasingly popular with consumers who have a lot of debt and can’t, or won’t, file bankruptcy. You stop paying your bills and instead make a regular monthly payment to the settlement company. Your creditors contact them, and not you, about your overdue bills. As your accounts fall further behind, the negotiation company will settle your balances – usually for 50% of the balance or less (including fees) depending on the debt. Most people can be out of debt in less than two years or less using these programs.
It’s not perfect. Your credit rating will be hurt in the short run and you must be certain you’re dealing with a reputable company or the money you pay each month could disappear. Still, for consumers who can’t shoulder the burden of debt they have now, it can be a very good option.
Retirement Loans
If you have a 401(k), 403(b) plan or certain types of pension plans, you can borrow against your nest egg. (You can’t borrow against your IRA.) It’s easy, with no income qualifications or credit check.
The key here is to borrow against your retirement account, rather than withdraw from it early so that you don’t end up paying taxes and a 10% penalty. Also, if you leave or lose your job, you may have to pay your loan back immediately or pay taxes and penalties for an early withdrawal.
These loans typically offer low interest rates, and interest is paid to you, since you are the lender. While tapping your next egg like this can short-change your retirement, so can costly debt payments. If you are in your 20’s and 30’s,you obviously have more time to rebuild a retirement nest egg, but even if you’re in your 40’s or 50’s, you will want to weigh the cost of paying the high interest of the debts over time, versus borrowing from your retirement account. The return you get from paying off high-rate debts is guaranteed – while the stock market isn’t.
Rapid Repayment
There is a mathematically optimal way to pay your debts. Choose a fixed level monthly payment, and commit to it each month. Pay as much as you can on the highest rate debt first, while payment the minimums on the rest.
I almost always suggest consumers with debt start by creating one of these plans. Many people who do so find they don’t even need to consolidate to get out of debt in the next few years. They just need a plan and they can do it on their own.
Overview
The biggest mistakes people make when it comes to consolidation are:
A. Not having a plan for paying the debt off after they’ve consolidated, and
B. Procrastination. Waiting for the “perfect” solution to come along almost always means you’ll end up deeper in debt. Choose your approach, and start getting out of debt today!
For more information on dealing with debt, visit www.stopdebtcollectorscold.com.
Gerri Detweiler is considered one of the country’s top credit experts. She has been interviewed in thousands of radio, television and print news stories including USA Today, The Wall Street Journal, The New York Times, Dateline NBC and many others. She has testified before Congress several times and worked on reform of the national credit reporting laws.
Next to winning the lottery, a debt consolidation loan is a debtor’s dream. With one monthly payment and a fixed monthly payment schedule, you can actually see an end to those monthly payments.
In reality, consolidating bills isn’t always easy. If you have a lot of debt, it can be hard to find a consolidation loan at a lower interest rate. And if you’re not careful, you can end up deeper in debt than when you started.
Your goal in consolidating your debt should be to lower your overall costs. To accomplish this there are two things to keep in mind:
1. Get the lowest interest rate possible
2. Have a plan to pay off your debts in 3 – 5 years.
Here are some of the best ways to consolidate:
Using Credit Cards
The good news about this method is that with a good credit rating, you may get a much lower rate than other forms of consolidation loans. And since credit card issuers don’t require collateral, you aren’t “risking the farm.”
Call your current issuer to ask what interest rates they will offer you if you transfer balances from other cards over to theirs. Go for a fixed rate if you can get it, and ask them to waive any transfer fees. If you can’t negotiate a low rate with your current issuer, try shopping for a new card at a site such as CardRatings.com. But be careful! Too many applications for credit in a short period of time can hurt your credit rating.
Once you do consolidate this way, be sure to set up an optimal payment plan so you can be debt-free in 3 – 5 years.
Home Equity Loans
With a home equity loan, you borrow against the value of you home, minus any other mortgages. The two major kinds are:
1. A Home Equity Loan – a fixed amount of money for a fixed period of time (sometimes at a fixed rate) and
2. A “Home Equity Line of Credit” where you borrow up to a pre-approved credit limit (interest rates usually variable) and can borrow again if you still have money available.
These loans can offer attractive rates, low payments, and the interest is usually tax-deductible if you itemize.
Many issuers offer no or low closing costs for these loans. Interest rates are often variable, however, and there’s always the risk that you can lose your home if you can’t pay.
Cash Out Refinance
Refinancing your home and taking out money to pay off bills (called “cash-out refinance”) is yet another way to tap the equity in your home. If you can refinance at a substantially lower interest rate, you’ll eliminate the high interest costs of the debts you pay off, and you could even come out with a lower payment than you have right now since rates are so low.
One option to consider: an interest-only loan. By lowering your monthly payment, you can free up money to use toward paying down other high-rate debt or building a retirement fund.
Make sure you understand the total cost of refinancing. Take any money you’ve freed up by paying off other bills and use that to create an emergency savings fund.
Traditional Debt Consolidation Loans
A debt consolidation loan is an unsecured personal loan, and the only collateral you are offering for the lender’s security is you. Because lenders consider them risky loans, they’re usually more expensive and not always easy to get if you have a lot of debt.
If the interest rate is too high to make it worth it and the repayment term is ten or fifteen years, you should probably consider another method of consolidation. However, if the term and interest rate are right, this can be a great way to actually save money in the end. (Check Bankrate.com for current averages). Remember, to calculate the total cost of the loan from start to pay-off.
Credit Counseling
Credit counseling agencies may help you get out of debt, though they don’t actually consolidate your debt.
Instead, payment plans (usually with lower interest and fees) will be worked out for all of your eligible debts. You’ll make one monthly payment to the counseling agency, which will pay all your creditors.
Participating in a credit counseling program generally won’t hurt your credit rating, and if you stick to the plan you can be out of debt in three to six years. But be careful which agency you work with. If the counseling agency pays your bills late, you’ll pay the price since you’re still responsible to the lender. It happens.
Debt Settlement
Debt settlement is another option that’s become increasingly popular with consumers who have a lot of debt and can’t, or won’t, file bankruptcy. You stop paying your bills and instead make a regular monthly payment to the settlement company. Your creditors contact them, and not you, about your overdue bills. As your accounts fall further behind, the negotiation company will settle your balances – usually for 50% of the balance or less (including fees) depending on the debt. Most people can be out of debt in less than two years or less using these programs.
It’s not perfect. Your credit rating will be hurt in the short run and you must be certain you’re dealing with a reputable company or the money you pay each month could disappear. Still, for consumers who can’t shoulder the burden of debt they have now, it can be a very good option.
Retirement Loans
If you have a 401(k), 403(b) plan or certain types of pension plans, you can borrow against your nest egg. (You can’t borrow against your IRA.) It’s easy, with no income qualifications or credit check.
The key here is to borrow against your retirement account, rather than withdraw from it early so that you don’t end up paying taxes and a 10% penalty. Also, if you leave or lose your job, you may have to pay your loan back immediately or pay taxes and penalties for an early withdrawal.
These loans typically offer low interest rates, and interest is paid to you, since you are the lender. While tapping your next egg like this can short-change your retirement, so can costly debt payments. If you are in your 20’s and 30’s,you obviously have more time to rebuild a retirement nest egg, but even if you’re in your 40’s or 50’s, you will want to weigh the cost of paying the high interest of the debts over time, versus borrowing from your retirement account. The return you get from paying off high-rate debts is guaranteed – while the stock market isn’t.
Rapid Repayment
There is a mathematically optimal way to pay your debts. Choose a fixed level monthly payment, and commit to it each month. Pay as much as you can on the highest rate debt first, while payment the minimums on the rest.
I almost always suggest consumers with debt start by creating one of these plans. Many people who do so find they don’t even need to consolidate to get out of debt in the next few years. They just need a plan and they can do it on their own.
Overview
The biggest mistakes people make when it comes to consolidation are:
A. Not having a plan for paying the debt off after they’ve consolidated, and
B. Procrastination. Waiting for the “perfect” solution to come along almost always means you’ll end up deeper in debt. Choose your approach, and start getting out of debt today!
For more information on dealing with debt, visit www.stopdebtcollectorscold.com.
Gerri Detweiler is considered one of the country’s top credit experts. She has been interviewed in thousands of radio, television and print news stories including USA Today, The Wall Street Journal, The New York Times, Dateline NBC and many others. She has testified before Congress several times and worked on reform of the national credit reporting laws.
Sunday, July 17, 2005
Bad Credit Loans:Using a Collection Agency
It's easy to extend too much credit when you're trying to entice companies into doing more business with you. But beware: Extending too much credit can lead to unpaid accountsb ... more...
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Start a Home Business
Bad Credit Loans:Short on cash flow? Understanding Paydays loans and cash advances
Short on cash flow? Understanding Paydays loans and cash advances
Have you ever found yourself short on cash or low on funds in-between paychecks? Unfortunetly, it happens to the best of us. Sometimes asking family or friends for a quick cash loan isn't the answer either, especially if you prefer to keep your personal business, well, personal. Now you can benefit though a financial service known as a cash advance.
This service actually goes by a plethora of other names, such as; a personal loan, payday loan, quick cash advance, pay advance, personal cash loan, ECT. The service is easy to use, and winds up being much cheaper than worrying about finance charges and late fees. Applying and qualifying for a payday loan / cash advance is quick and easy, and in many cases there are no documents to fax.
Once you're approved for the cash advance, the payday loan amount will be electronically deposited into your checking or savings account. Cash advance sites offer flexible payment options and discrete service that gets you the cash you need right now.
www.preferredpaydayloan.com
- M.K.
m.k. has been writing articles and educational material regarding finanical services for the past 5 years
Start a Home Business
Have you ever found yourself short on cash or low on funds in-between paychecks? Unfortunetly, it happens to the best of us. Sometimes asking family or friends for a quick cash loan isn't the answer either, especially if you prefer to keep your personal business, well, personal. Now you can benefit though a financial service known as a cash advance.
This service actually goes by a plethora of other names, such as; a personal loan, payday loan, quick cash advance, pay advance, personal cash loan, ECT. The service is easy to use, and winds up being much cheaper than worrying about finance charges and late fees. Applying and qualifying for a payday loan / cash advance is quick and easy, and in many cases there are no documents to fax.
Once you're approved for the cash advance, the payday loan amount will be electronically deposited into your checking or savings account. Cash advance sites offer flexible payment options and discrete service that gets you the cash you need right now.
www.preferredpaydayloan.com
- M.K.
m.k. has been writing articles and educational material regarding finanical services for the past 5 years
Start a Home Business
Bad Credit Loans:Building Wealth: It's An Inside Job-Part 1
Building Wealth: It's An Inside Job – Part 1
Finance Articles | July 10, 2005
Whenever we read about building wealth or even attend a seminar for that purpose, we usually begin by assessing our present financial status. We’re asked to calculate our assets and liabilities followed by a determination of where we’d like to be in a certain period of time. Being armed with this data along with assessing our present earning and saving power, we then set out to structure our financial goals. Although we try to be realistic, we still want to stretch ourselves a little bit – after all, that’s one of the purposes of setting goals, isn’t it? To achieve more than we normally would if we didn’t have goals in the first place. And also, goals are supposed to give us direction.
So when actually seeking out these new financial goals, many of us fall dreadfully short. What happened? Did we not work hard enough or just plan poorly? Maybe, but it’s probably much deeper than that. One tactic that many goal-setting gurus use to get more mileage out of setting goals is to find out WHY we want a certain goal. This certainly helps us get more leverage on achieving our goal, but to many people money is much more complicated than that. Money represents our upbringing and our culture. To some of us, money represents bad memories of parents arguing or watching our families suffer for the lack of it, while others may view money as only a tool and seem to have no problem accumulating it in their bank accounts. These financial memories have created mental roadblocks for many of us when it comes to making money. Thus, if we want to build wealth, we have to go one step further and determine our personal level of prosperity consciousness.
If we’re curious about our present level of prosperity consciousness, we need only take a critical look at our own lives. Our homes, our jobs, our bank accounts will all quickly tell us where we are in terms of prosperity - like it or not - our surroundings are simply the results of our thoughts and actions. Our level of satisfaction can be linked to the distance between where we are and where we want to be. However, two people with identical distances will almost always have different levels of satisfaction, and these satisfaction levels are linked to their personal levels of prosperity consciousness. Here’s something to ponder. What if everyone in the world were to throw all their riches into one big pile and then split all that wealth equally among everyone in the world? In a few years, who would then emerge as being wealthy and poor? Most people feel that very little would change – that the same people would most likely become wealthy and poor again. This assessment speaks volumes about prosperity consciousness.
So what if we’re unhappy with our present level of prosperity consciousness, how do we change it? The answer is that we have to start getting comfortable with more prosperity coming into our lives. There are some simple things that we can start doing today which will dramatically increase our levels of prosperity over time. Bear in mind that these actions are not instantaneous – they’ll need some time to yield results.
1) Use Written Affirmations – It sounds elementary, but this little trick actually works. Simply write down your affirmation 20 times each morning and each evening. We should choose an affirmation that suits our particular situation and prosperity level. To find out where to begin, start with this one: “I deserve to be wealthy”. Does it make you feel uncomfortable when you write it down? If so, that’s a sign that you probably need to use that one or something similar. You could also try this one: “I am bringing more and more wealth into my life each day.” Play around with words and see how they make you feel. If you’re too outrageous, your subconscious will reject the idea, so you want something that makes you feel slightly anxious or uncomfortable. Continue using your affirmation for 30 days and then start using a different affirmation. The next affirmation should be a natural building block on the previous one. The key to affirmations is to be persistent and not give up on them because they seem ineffective, repetitive, and boring. The fact is that you NEED to be doing them when they become repetitive and boring. Remember that you’re trying to undo years of mental programming and repetition is required.
2) Visualize The Outcome – Put pictures of financial goals in your mind and view them routinely. The best times for these visualizations are the first thing in the morning and right before bedtime. And it is also recommended that you add some exercises throughout the day as well. As with the affirmations, these visualization exercises are a matter of personal preference. We all visualize things in our minds differently depending on our personalities, so you’ll want to experiment with the pictures. Here are some things you can do with those internal pictures: try blowing them up in size, make them more colorful, give them noise, give them action, or increase the brightness. Keep playing with these attributes until you find the ones that excite you. Also, keep in mind that the content of these pictures will change over time – in fact, they NEED to change over time because you’re trying picture more prosperity in your life.
3) Be Aware of How You Receive Prosperity – Take inventory of your thoughts and feelings toward the way you receive prosperity. For instance, how well do you receive compliments? Do you tend to play them down or do you accept them with grace? If someone offers to pay you for a task you’ve performed, do you accept the payment or do you turn it down? If a person tries to give you something, do you accept it? Do you volunteer for tasks that you won’t be paid for? All of these are indicators of your prosperity consciousness. Don’t be concerned about making judgments at this point, simply become more aware of what’s going on inside your mind. If you’re doing the affirmations and visualizations, you’ll know what to do when the time comes. Middle Eastern mystics say that increasing awareness is all that is needed to gain knowledge.
4) Be Aware of How You Give Prosperity – Spiritual sages claim that in terms of prosperity, the universe makes no distinction between giving and receiving. The important thing is maintaining the flow of prosperity and allowing it to bless more lives. Suppose you and two other people were in the same room and you had a dollar. Let’s say that you buy a pencil from one of them for that dollar who then uses it to purchase a notebook from the third person. The third person then turns around and buys a hairbrush from you. You could’ve kept the dollar in your pocket, but instead that same dollar has blessed two other people with useful products and is now in your pocket anyway. This is the basis of a healthy economy – one in which there’s a healthy flow of products, services, and currencies. It when the flow stops that we start to have problems. Incidentally, this is the same principal on which tithing to your church or donating a portion of your pay to charity lies. These charitable acts allow people to participate in the flow of prosperity and share it with others. There’s an old saying that states “give what you want more of”, so if you want more prosperity in your life, start giving more in return.
In order to build wealth successfully, we need to look inside ourselves first. We’re taught to define and then go after our goals, but it really doesn’t work quite that way. After we define our goals, we then need to concentrate on removing all the obstacles that block their path. So rather than going after these financial goals, we simply attract them to us by preparing ourselves to receive them through a strong sense of prosperity consciousness.
In Part 2 of this essay, we’ll talk about how we can manage money to boost our prosperity level.
Chuck Cox is a Technical Writer and Industrial Scientist by professional with a background in statistics. He has used mathematical and statistical methods to invest and trade in the stock, futures, and options markets. Chuck has owned various businesses and presently operates several websites. To investigate a new business idea, visit his website, http://www.earncashathometoday.com/
Start a Home Business
Finance Articles | July 10, 2005
Whenever we read about building wealth or even attend a seminar for that purpose, we usually begin by assessing our present financial status. We’re asked to calculate our assets and liabilities followed by a determination of where we’d like to be in a certain period of time. Being armed with this data along with assessing our present earning and saving power, we then set out to structure our financial goals. Although we try to be realistic, we still want to stretch ourselves a little bit – after all, that’s one of the purposes of setting goals, isn’t it? To achieve more than we normally would if we didn’t have goals in the first place. And also, goals are supposed to give us direction.
So when actually seeking out these new financial goals, many of us fall dreadfully short. What happened? Did we not work hard enough or just plan poorly? Maybe, but it’s probably much deeper than that. One tactic that many goal-setting gurus use to get more mileage out of setting goals is to find out WHY we want a certain goal. This certainly helps us get more leverage on achieving our goal, but to many people money is much more complicated than that. Money represents our upbringing and our culture. To some of us, money represents bad memories of parents arguing or watching our families suffer for the lack of it, while others may view money as only a tool and seem to have no problem accumulating it in their bank accounts. These financial memories have created mental roadblocks for many of us when it comes to making money. Thus, if we want to build wealth, we have to go one step further and determine our personal level of prosperity consciousness.
If we’re curious about our present level of prosperity consciousness, we need only take a critical look at our own lives. Our homes, our jobs, our bank accounts will all quickly tell us where we are in terms of prosperity - like it or not - our surroundings are simply the results of our thoughts and actions. Our level of satisfaction can be linked to the distance between where we are and where we want to be. However, two people with identical distances will almost always have different levels of satisfaction, and these satisfaction levels are linked to their personal levels of prosperity consciousness. Here’s something to ponder. What if everyone in the world were to throw all their riches into one big pile and then split all that wealth equally among everyone in the world? In a few years, who would then emerge as being wealthy and poor? Most people feel that very little would change – that the same people would most likely become wealthy and poor again. This assessment speaks volumes about prosperity consciousness.
So what if we’re unhappy with our present level of prosperity consciousness, how do we change it? The answer is that we have to start getting comfortable with more prosperity coming into our lives. There are some simple things that we can start doing today which will dramatically increase our levels of prosperity over time. Bear in mind that these actions are not instantaneous – they’ll need some time to yield results.
1) Use Written Affirmations – It sounds elementary, but this little trick actually works. Simply write down your affirmation 20 times each morning and each evening. We should choose an affirmation that suits our particular situation and prosperity level. To find out where to begin, start with this one: “I deserve to be wealthy”. Does it make you feel uncomfortable when you write it down? If so, that’s a sign that you probably need to use that one or something similar. You could also try this one: “I am bringing more and more wealth into my life each day.” Play around with words and see how they make you feel. If you’re too outrageous, your subconscious will reject the idea, so you want something that makes you feel slightly anxious or uncomfortable. Continue using your affirmation for 30 days and then start using a different affirmation. The next affirmation should be a natural building block on the previous one. The key to affirmations is to be persistent and not give up on them because they seem ineffective, repetitive, and boring. The fact is that you NEED to be doing them when they become repetitive and boring. Remember that you’re trying to undo years of mental programming and repetition is required.
2) Visualize The Outcome – Put pictures of financial goals in your mind and view them routinely. The best times for these visualizations are the first thing in the morning and right before bedtime. And it is also recommended that you add some exercises throughout the day as well. As with the affirmations, these visualization exercises are a matter of personal preference. We all visualize things in our minds differently depending on our personalities, so you’ll want to experiment with the pictures. Here are some things you can do with those internal pictures: try blowing them up in size, make them more colorful, give them noise, give them action, or increase the brightness. Keep playing with these attributes until you find the ones that excite you. Also, keep in mind that the content of these pictures will change over time – in fact, they NEED to change over time because you’re trying picture more prosperity in your life.
3) Be Aware of How You Receive Prosperity – Take inventory of your thoughts and feelings toward the way you receive prosperity. For instance, how well do you receive compliments? Do you tend to play them down or do you accept them with grace? If someone offers to pay you for a task you’ve performed, do you accept the payment or do you turn it down? If a person tries to give you something, do you accept it? Do you volunteer for tasks that you won’t be paid for? All of these are indicators of your prosperity consciousness. Don’t be concerned about making judgments at this point, simply become more aware of what’s going on inside your mind. If you’re doing the affirmations and visualizations, you’ll know what to do when the time comes. Middle Eastern mystics say that increasing awareness is all that is needed to gain knowledge.
4) Be Aware of How You Give Prosperity – Spiritual sages claim that in terms of prosperity, the universe makes no distinction between giving and receiving. The important thing is maintaining the flow of prosperity and allowing it to bless more lives. Suppose you and two other people were in the same room and you had a dollar. Let’s say that you buy a pencil from one of them for that dollar who then uses it to purchase a notebook from the third person. The third person then turns around and buys a hairbrush from you. You could’ve kept the dollar in your pocket, but instead that same dollar has blessed two other people with useful products and is now in your pocket anyway. This is the basis of a healthy economy – one in which there’s a healthy flow of products, services, and currencies. It when the flow stops that we start to have problems. Incidentally, this is the same principal on which tithing to your church or donating a portion of your pay to charity lies. These charitable acts allow people to participate in the flow of prosperity and share it with others. There’s an old saying that states “give what you want more of”, so if you want more prosperity in your life, start giving more in return.
In order to build wealth successfully, we need to look inside ourselves first. We’re taught to define and then go after our goals, but it really doesn’t work quite that way. After we define our goals, we then need to concentrate on removing all the obstacles that block their path. So rather than going after these financial goals, we simply attract them to us by preparing ourselves to receive them through a strong sense of prosperity consciousness.
In Part 2 of this essay, we’ll talk about how we can manage money to boost our prosperity level.
Chuck Cox is a Technical Writer and Industrial Scientist by professional with a background in statistics. He has used mathematical and statistical methods to invest and trade in the stock, futures, and options markets. Chuck has owned various businesses and presently operates several websites. To investigate a new business idea, visit his website, http://www.earncashathometoday.com/
Start a Home Business
Saturday, July 16, 2005
Bad Credit Loans:ATM Fees Rising
If you are currently in the habit of replenishing your cash funds from ATM machines other than at the bank where you keep your money, you might want to check up on the fee you’re being charged.
Don’t just grab the cash an run, leaving the receipt at the machine or in the trash. And check your bank statement (who bothers to read all those fine-print brochures they keep sending, anyway?)
According to research done at Bankrate, the average fee to use another bank’s ATM is now up to $1.35. Overall in the US, ATM use fees have risen $1.40 just this year alone!
The rates charged by ATM machines are rising faster in urban areas and within the larger ATM networks. This was confirmed by research performed by Dartmouth professor Victor Stango and UC Davis professor Christopher Knittel.
What’s more, ATM machines that have no fees are becoming very scarce. Blame inter-bank charges for the change. It will pay you (in a lack of a surcharge) to look for ATM machines that participate in a network within your bank’s system.
Some of the larger ones include the STAR, MoneyPass, FastbankFree, CO-OP (nonprofit credit unions), and Allpoint. Also, Washington Mutual is the only banking system currently free of ATM charges, but this could change at any time. In New Jersey, Pennsylvania, Delaware, Maryland and Virginia, look for “Wawa” ATM’s in gas stations and convenience stores for fee-free service. more...
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Don’t just grab the cash an run, leaving the receipt at the machine or in the trash. And check your bank statement (who bothers to read all those fine-print brochures they keep sending, anyway?)
According to research done at Bankrate, the average fee to use another bank’s ATM is now up to $1.35. Overall in the US, ATM use fees have risen $1.40 just this year alone!
The rates charged by ATM machines are rising faster in urban areas and within the larger ATM networks. This was confirmed by research performed by Dartmouth professor Victor Stango and UC Davis professor Christopher Knittel.
What’s more, ATM machines that have no fees are becoming very scarce. Blame inter-bank charges for the change. It will pay you (in a lack of a surcharge) to look for ATM machines that participate in a network within your bank’s system.
Some of the larger ones include the STAR, MoneyPass, FastbankFree, CO-OP (nonprofit credit unions), and Allpoint. Also, Washington Mutual is the only banking system currently free of ATM charges, but this could change at any time. In New Jersey, Pennsylvania, Delaware, Maryland and Virginia, look for “Wawa” ATM’s in gas stations and convenience stores for fee-free service. more...
Start a Home Business
Bad Credit Loans:Retiring Right
There are several smart moves we can make to get our retirement right. It's one of those things in life we get only one chance at, so we'd better succeed! One of the best steps to take starts well in advance of reaching retirement age and that is to start early with a plan.
We need to understand how economic cycles operate and take them into consideration. Boom and bust. Interest rates rise and fall. Inflation and devaluation. These are some of the trends that will affect whether or not we have enough resources to carry us comfortably through our "Golden Years".
So, as soon as you can, open all versions of IRA's, 401K's, and any other opportunities to save funds that come your way. If you can, max them out every year.Some other important factors are to be aware of your longevity and not overestimating the amount of your savings that you will use to live on during retirement. The odds are 50-50 that one member of a 65-year-old couple will live to age 92.
Too many don’t take advantage of insurance for long term care, something Medicare definitely does not cover.
You may have thought of your retirement financing in terms of the proverbial "three-legged-stool" with a pension, Social Security, and your own savings comprising the stability. You might want to consider the added strength that a continuing earned income would add, even if it’s from part-time employment. Another benefit might be better health care coverage, too. more...
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We need to understand how economic cycles operate and take them into consideration. Boom and bust. Interest rates rise and fall. Inflation and devaluation. These are some of the trends that will affect whether or not we have enough resources to carry us comfortably through our "Golden Years".
So, as soon as you can, open all versions of IRA's, 401K's, and any other opportunities to save funds that come your way. If you can, max them out every year.Some other important factors are to be aware of your longevity and not overestimating the amount of your savings that you will use to live on during retirement. The odds are 50-50 that one member of a 65-year-old couple will live to age 92.
Too many don’t take advantage of insurance for long term care, something Medicare definitely does not cover.
You may have thought of your retirement financing in terms of the proverbial "three-legged-stool" with a pension, Social Security, and your own savings comprising the stability. You might want to consider the added strength that a continuing earned income would add, even if it’s from part-time employment. Another benefit might be better health care coverage, too. more...
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Bad Credit Loans:Free for All Credit Reports
Beginning September 1, 2005, free credit reports will be accessible to all Americans, regardless of where they live. That’s when the last phase of the government’s Fair Credit Reporting Act (FCRA) starts for residents of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, and West Virginia �?" the District of Columbia, Puerto Rico, and all U.S. territories. By then all states and U.S. territory residents will be able to send for their reports.You can order your free annual credit report online at www.annualcreditreport.com, by calling 877-322-8228, or by completing the Annual Credit Report Request Form (that’s a .PDF file) and mailing it to: Annual Credit Report Request Service, P.O. Box 105281, Atlanta, GA 30348-5281.Learn more about the free reports and how to get them at the Federal Trade Commission’s special website. It explains that:A credit report contains information on where you live, how you pay your bills, and whether you�?Tve been sued, arrested, or filed for bankruptcy. Nationwide consumer reporting companies sell the information in your report to creditors, insurers, employers, and other businesses that use it to evaluate your applications for credit, insurance, employment, or renting a home. There are three nationwide consumer reporting companies �?" Equifax, Experian, and Trans Union.You may want to review your credit report: * because the information it contains affects whether you can get a loan �?" and how much you will have to pay to borrow money. * to make sure the information is accurate, complete, and up-to-date before you apply for a loan for a major purchase like a house or car, buy insurance, or apply for a job. * to help guard against identity theft.That�?Ts when someone uses your personal information �?" like your name, your Social Security number, or your credit card number �?" to commit fraud. Identity thieves may use your information to open a new credit card account in your name. Then, when they don�?Tt pay the bills, the delinquent account is reported on your credit report. Inaccurate information like that could affect your ability to get credit, insurance, or even a job. more...
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Bad Credit Loans - Understanding good credit and credit ratings
Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards/Good Credit/Credit Ratings/Secured Credit Cards
SECURED CREDIT CARDS
Secured Credit Card is similar to a prepaid credit card since the funds you are using are actually yours and not the issuer of the credit card. Generally people who apply for secured credit card or prepaid credit card are people with poor credit or unemployed. Prepaid Credit Card spending limit is the amount of money you loaded to the card. There are no interest or finance charges on a prepaid card. With secured credit card, your credit line could be from 50% to 100% of your deposit depending on the institution giving you the secured credit. Therefore the company giving you the secured credit card has zero risk.
Secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers' payment history to any of the three main credit bureaus namely Experience, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.
Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in rebuilding your credit rating. Additionally, even though secured credit is like prepaid cards, they do have certain fees attached. Benefits are similar to that of an unsecured credit card, such as usually being paid interest on your balance in the bank, using Automated Teller Machines (ATM) to make deposits, withdrawals, and making purchases at participating merchants. Following the above steps will strengthen your credit rating.
UNSECURED CREDIT CARDS
Unsecured cards are issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one's ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.
Customers should read the credit agreement to ensure that they understand their obligation to the creditor. Making payments on time will strengthen your credit rating. Unsecured credit cards has numerous advantages such as low interest rates, high credit limit, business name options, no annual fees, and low APRs on balance transfers up to 12 months. Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in maintaining a good credit rating.
REBUILDING YOUR CREDIT
It takes time, patience, and consistency. If you consistently pay your bills on time, you will see an improvement in your credit ratings over time. There are no quick fixes for improving your credit report except for mistakes or inaccuracies that can be corrected, hopefully in your favor. Your credit information is maintained by the credit bureaus namely Experience, Equifax, and Trans Union for seven years. Therefore poor credit information will remain on your report for seven years. The good thing is that as negative information disappears with positive information, this will definitely rebuild your credit rating. Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in rebuilding your credit rating.
Applying for secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history, and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers' payment history to any of the three main credit bureaus namely Experience, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.
BUSINESS CREDIT CARDS
Business credit cards are very popular for small business owners because of the many benefits they offer. Benefits includes 0% Intro APR on balance transfers, no annual fees, high credit limit, low interest rates, cash rewards, bonus miles, free online account management to choosing card design etc., At iCreditOnline.com we have some of the best business credit cards from American Express, Advanta, Chase, Bank One, Bank of America, Discover, Citibank, Household Bank and more, with online credit card approval. Why waste time going to a bank when you can get a decision in less than 60 seconds with secure online credit card application. Online Credit Card Approval with Online Credit Card Application is fast and easy!
STUDENT CREDIT CARDS
Having a student credit card while still living at home or attending school away from home can be an advantage. It gives the student the opportunity to establish credit at an early age and to start asserting their independence. It comes in handy in case of emergency, it is less trouble and safer to carry a student credit card than to carry cash. Parents find student credit cards to be very convenient. They are able to make deposits to their children's account while they are away from home. Students should be careful with their credit card receipts to avoid identity thief.
If you consistently pay your bills on time, obtaining students credit cards is a good way to established credit rating and start building a good credit history while in school. Establishing and maintaining a good credit rating will make it easy to purchase a car, a home or obtaining a personal loan in the future. For students who are not committed to their financial obligation, getting a student credit card is not a good idea. Running up balances, finding yourself in debt, unable to make monthly payments will destroy your credit rating.
Student's credit cards generally have high interest rates. At iCreditOnline.com we offer some of the best student credit cards from Chase and Discover with 0% APR introductory rate for 6 months, no annual fees and online account access. Online credit card approval with online credit card application is fast and easy!
EXPLANATIONS OF SOME OF THE CREDIT CARD TERMINOLOGY
0% Intro APR Credit Card or Balance Transfer Credit Card - gives you the benefit of using this credit card without making any interest payment on the principal for a stated period of time. This credit card is marketed to individuals with good credit rating who want to transfer balance from a high interest credit card to a 0% intro APR credit card.
Cash Rewards or Cash Back Credit Card - earns a percentage on purchases made. This reward or cash back is credited to your account.
Debit Card - takes the place of carrying a checkbook or cash. This card is used like a credit card with certain limitations, such as not being able to rent a car. Purchase transactions are contingent upon having enough funds in your checking or savings account to cover the purchase. Verification of funds requires entering your Personal Identification Number (PIN) at a point-of-sale terminal.
Low Interest Credit Card - saves you money. Having a good credit rating qualifies you for some of the best low APR credit card offers.
Prepaid Credit Card - spending limit is the amount of money you loaded to the card. There are no interest or finance charges on a prepaid card. Therefore the company giving you the prepaid credit card has zero risk. Generally people who apply for prepaid credit card are people with poor credit or unemployed.
Secured Credit Card - is secured by the amount of funds you have in your account. Your credit line could be from 50% to 100% of your deposit depending on the institution giving you the secured credit.
Unsecured Credit Card - is issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one's ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate and can receive instant online credit card approval. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.
Travel Rewards Credit Card - benefits may include travel accident insurance, free rental car collision/loss damage insurance, rebate on gasoline purchases, frequent flyer points or bonus miles towards airline flights, free quarterly and annual account summaries.
David Hall owns iCreditOnline.com. He offers free downloadable, high quality guides on credit repair, credit ratings, credit scoring, debt consolidation and more. He has tools for finding a wide range of financial services including secured and unsecure cards, student and business cards, auto loans, and more from the most reputable companies in the industry. You can also compare multiple credit card offers, securely complete an online credit card application, and receive a credit decision in less than 60 seconds. Visit David's site today: http://www.iCreditOnline.com
SECURED CREDIT CARDS
Secured Credit Card is similar to a prepaid credit card since the funds you are using are actually yours and not the issuer of the credit card. Generally people who apply for secured credit card or prepaid credit card are people with poor credit or unemployed. Prepaid Credit Card spending limit is the amount of money you loaded to the card. There are no interest or finance charges on a prepaid card. With secured credit card, your credit line could be from 50% to 100% of your deposit depending on the institution giving you the secured credit. Therefore the company giving you the secured credit card has zero risk.
Secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers' payment history to any of the three main credit bureaus namely Experience, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.
Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in rebuilding your credit rating. Additionally, even though secured credit is like prepaid cards, they do have certain fees attached. Benefits are similar to that of an unsecured credit card, such as usually being paid interest on your balance in the bank, using Automated Teller Machines (ATM) to make deposits, withdrawals, and making purchases at participating merchants. Following the above steps will strengthen your credit rating.
UNSECURED CREDIT CARDS
Unsecured cards are issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one's ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.
Customers should read the credit agreement to ensure that they understand their obligation to the creditor. Making payments on time will strengthen your credit rating. Unsecured credit cards has numerous advantages such as low interest rates, high credit limit, business name options, no annual fees, and low APRs on balance transfers up to 12 months. Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in maintaining a good credit rating.
REBUILDING YOUR CREDIT
It takes time, patience, and consistency. If you consistently pay your bills on time, you will see an improvement in your credit ratings over time. There are no quick fixes for improving your credit report except for mistakes or inaccuracies that can be corrected, hopefully in your favor. Your credit information is maintained by the credit bureaus namely Experience, Equifax, and Trans Union for seven years. Therefore poor credit information will remain on your report for seven years. The good thing is that as negative information disappears with positive information, this will definitely rebuild your credit rating. Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in rebuilding your credit rating.
Applying for secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history, and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers' payment history to any of the three main credit bureaus namely Experience, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.
BUSINESS CREDIT CARDS
Business credit cards are very popular for small business owners because of the many benefits they offer. Benefits includes 0% Intro APR on balance transfers, no annual fees, high credit limit, low interest rates, cash rewards, bonus miles, free online account management to choosing card design etc., At iCreditOnline.com we have some of the best business credit cards from American Express, Advanta, Chase, Bank One, Bank of America, Discover, Citibank, Household Bank and more, with online credit card approval. Why waste time going to a bank when you can get a decision in less than 60 seconds with secure online credit card application. Online Credit Card Approval with Online Credit Card Application is fast and easy!
STUDENT CREDIT CARDS
Having a student credit card while still living at home or attending school away from home can be an advantage. It gives the student the opportunity to establish credit at an early age and to start asserting their independence. It comes in handy in case of emergency, it is less trouble and safer to carry a student credit card than to carry cash. Parents find student credit cards to be very convenient. They are able to make deposits to their children's account while they are away from home. Students should be careful with their credit card receipts to avoid identity thief.
If you consistently pay your bills on time, obtaining students credit cards is a good way to established credit rating and start building a good credit history while in school. Establishing and maintaining a good credit rating will make it easy to purchase a car, a home or obtaining a personal loan in the future. For students who are not committed to their financial obligation, getting a student credit card is not a good idea. Running up balances, finding yourself in debt, unable to make monthly payments will destroy your credit rating.
Student's credit cards generally have high interest rates. At iCreditOnline.com we offer some of the best student credit cards from Chase and Discover with 0% APR introductory rate for 6 months, no annual fees and online account access. Online credit card approval with online credit card application is fast and easy!
EXPLANATIONS OF SOME OF THE CREDIT CARD TERMINOLOGY
0% Intro APR Credit Card or Balance Transfer Credit Card - gives you the benefit of using this credit card without making any interest payment on the principal for a stated period of time. This credit card is marketed to individuals with good credit rating who want to transfer balance from a high interest credit card to a 0% intro APR credit card.
Cash Rewards or Cash Back Credit Card - earns a percentage on purchases made. This reward or cash back is credited to your account.
Debit Card - takes the place of carrying a checkbook or cash. This card is used like a credit card with certain limitations, such as not being able to rent a car. Purchase transactions are contingent upon having enough funds in your checking or savings account to cover the purchase. Verification of funds requires entering your Personal Identification Number (PIN) at a point-of-sale terminal.
Low Interest Credit Card - saves you money. Having a good credit rating qualifies you for some of the best low APR credit card offers.
Prepaid Credit Card - spending limit is the amount of money you loaded to the card. There are no interest or finance charges on a prepaid card. Therefore the company giving you the prepaid credit card has zero risk. Generally people who apply for prepaid credit card are people with poor credit or unemployed.
Secured Credit Card - is secured by the amount of funds you have in your account. Your credit line could be from 50% to 100% of your deposit depending on the institution giving you the secured credit.
Unsecured Credit Card - is issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one's ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate and can receive instant online credit card approval. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.
Travel Rewards Credit Card - benefits may include travel accident insurance, free rental car collision/loss damage insurance, rebate on gasoline purchases, frequent flyer points or bonus miles towards airline flights, free quarterly and annual account summaries.
David Hall owns iCreditOnline.com. He offers free downloadable, high quality guides on credit repair, credit ratings, credit scoring, debt consolidation and more. He has tools for finding a wide range of financial services including secured and unsecure cards, student and business cards, auto loans, and more from the most reputable companies in the industry. You can also compare multiple credit card offers, securely complete an online credit card application, and receive a credit decision in less than 60 seconds. Visit David's site today: http://www.iCreditOnline.com
Friday, July 15, 2005
Bad Credit Loans:Nonprofit Counseling Helps You Profit
With consumer debt apparently rising to 20 percent of household incomes, it’s not wonder there’s so many of us seeking assistance with learning how to fix our financial woes.
A close friend of mine recently found herself in severe financial trouble, her credit card and student loan payments falling seriously behind. I advised her to contact a nonprofit consumer credit counseling service, and she located Money Management International, an agency which has essentially turned her life around.
The beauty of nonprofit agencies is inherent in their title; their intent is not to profit from your misfortune. Therefore, nonprofit consumer credit counseling services like MMI will sincerely aid you in setting afloat your financial shipwreck without pinching you for all the money you’ll be saving by utilizing their services. That’s not to say that all for-profit agencies are evil or anything; I simply feel more secure knowing that my financial well-being is not tied in with that of the agent that is supposed to be assisting me.(Thanks to the Bankruptcy blog for providing the link to the consumer debt news article.) more...
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A close friend of mine recently found herself in severe financial trouble, her credit card and student loan payments falling seriously behind. I advised her to contact a nonprofit consumer credit counseling service, and she located Money Management International, an agency which has essentially turned her life around.
The beauty of nonprofit agencies is inherent in their title; their intent is not to profit from your misfortune. Therefore, nonprofit consumer credit counseling services like MMI will sincerely aid you in setting afloat your financial shipwreck without pinching you for all the money you’ll be saving by utilizing their services. That’s not to say that all for-profit agencies are evil or anything; I simply feel more secure knowing that my financial well-being is not tied in with that of the agent that is supposed to be assisting me.(Thanks to the Bankruptcy blog for providing the link to the consumer debt news article.) more...
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Bad Credit Loans:How To Get A Visa Card
How to get a Visa Card?A visa card can be obtained online or offline. By applying online you will received a quicker responce sometimes within minutes.
There are many types of visa cards, such as rewards, cash back, balance transfer, prepaid, low interest and more. These cards are offered through various companies and banks. Your credit score will determine the type of visa that you will get
The following tips on how to get a visa card should make your application process go smoothly.
1.Check your credit report and know your score.
2.Have your personal information handy
3.Determine the type of visa you will like to have
4.Read the fine prints on the application
5.Fill out a online application or offline application
The companies that you apply with typically get a copy of your credit report from one of the major national credit reporting agencies. The companies will be able to determine the interest rate to offer you based on your credit score. You will get the visa card in the mail when approved. A credit card is plastic money make sure your use it wisely. more...
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There are many types of visa cards, such as rewards, cash back, balance transfer, prepaid, low interest and more. These cards are offered through various companies and banks. Your credit score will determine the type of visa that you will get
The following tips on how to get a visa card should make your application process go smoothly.
1.Check your credit report and know your score.
2.Have your personal information handy
3.Determine the type of visa you will like to have
4.Read the fine prints on the application
5.Fill out a online application or offline application
The companies that you apply with typically get a copy of your credit report from one of the major national credit reporting agencies. The companies will be able to determine the interest rate to offer you based on your credit score. You will get the visa card in the mail when approved. A credit card is plastic money make sure your use it wisely. more...
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Bad Credit Loans:How Credit Cards Work
How Credit Cards Work?A credit card is a loan that authorizes you to charge purchases or services to your account. Credit cards work by guaranteeing a merchant payment, and billing the consumer each month for purchases charged to the card. In return for this service, credit card companies charge the merchant a small percentage of the price of each item charged, and charge the consumer interest on any balance not paid in full.
Credit card companies make money in three ways: the finance charge you pay; annual fees, if applicable; and from the fees they charge merchants who accept their card. The amount you're to charge is determined by the Annual Percentage rate (APR) which is the interest that you are paying to the credit card company for the use of their money. T
his is the fee that will be levied against your account if you fail to pay off the complete amount at the end of every month.If the APR on your credit card is 15.9 percent daily or monthly, the daily rate is calculated on the daily balance and the monthly rate on your balance at the end of the month.
To find out your monthly rate multiply percentage rate by 12 to see what your annual rate will be on any outstanding balance you might be carrying by the end of the year. Some credit card companies offer a grace period which is the time between the closing date of your billing cycle and the date you have to pay your balance in full. If the balance is paid in full no interest is charged this applies only if you are not carrying an account balance or have taken out a cash advance. If the minimum balance is not paid on time you will be charge a late fee. Some companies charge from $25.00 to $30.00 which can add up over a period of time.Visit: www.Credit-Cards.1a-online-shopping.com more...
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Credit card companies make money in three ways: the finance charge you pay; annual fees, if applicable; and from the fees they charge merchants who accept their card. The amount you're to charge is determined by the Annual Percentage rate (APR) which is the interest that you are paying to the credit card company for the use of their money. T
his is the fee that will be levied against your account if you fail to pay off the complete amount at the end of every month.If the APR on your credit card is 15.9 percent daily or monthly, the daily rate is calculated on the daily balance and the monthly rate on your balance at the end of the month.
To find out your monthly rate multiply percentage rate by 12 to see what your annual rate will be on any outstanding balance you might be carrying by the end of the year. Some credit card companies offer a grace period which is the time between the closing date of your billing cycle and the date you have to pay your balance in full. If the balance is paid in full no interest is charged this applies only if you are not carrying an account balance or have taken out a cash advance. If the minimum balance is not paid on time you will be charge a late fee. Some companies charge from $25.00 to $30.00 which can add up over a period of time.Visit: www.Credit-Cards.1a-online-shopping.com more...
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Bad Credit Loans:Credit Cards - Are You Playing Right?
Are you playing your credit cards right?
Not since Mark Twain cruised the mighty Mississippi have people been more interested in cards . . . credit cards, that is. Offers for new accounts stuff mailboxes, slip from magazines and fill the airwaves.
But if you’ve been charging like the Light Brigade, you’re not alone. According to Ram Research, a Frederick, Maryland, credit card industry research firm, American consumers charged at a record pace through the first nine months of 1995.
This year will see further changes in the credit card industry, not all of them good news for those who shop till they drop. Issuers will approve fewer cards for those applying for their most attractive rates, introductory or “teaser” rates will edge up from an average of 9 percent to 10 percent, and so- licitations to those with marginal credit records will fall dramatically. Those who pay bills late or are delinquent will see some issuers lowering their credit lines; other issuers will punish these accounts with high interest rates, reduced grace periods and higher late fees.
But if you’ve forgotten what cash looks like and hoard your frequent flier miles like King Midas, you don’t have to give up your card collection. Here are some strategies you can’t afford to pass up.
Card sharps
The trick to getting the most from your credit cards is to select the ones that are right for how you spend, pay and keep track of your purchases. If you have an impeccable credit history and low total outstanding debt, and you keep small balances on your accounts, consider low-rate credit cards. They offer limited services and below-average credit lines, but you can expect to pay one-third to one-half the average interest rate.
If you pay your balance in full each month, your card’s interest rate doesn’t matter. Choose a card with no annual fee or one with rebates.
If your credit history is good, you regularly carry a balance and you are paying interest rates in excess of 15 percent, consider switching to one of the low-rate standard or low-rate gold cards listed in the chart on page 66.
Be warned, however: Having too many credit cards can be dangerous to your financial health. Too many open lines of credit can impair your ability to apply for the best rates and could cause some issuers to declare you a high-risk account and charge you a much higher interest rate. If current low mortgage rates are tempting you to refinance your home, too many credit lines can stymie your application. As a rule of thumb, avoid owing more than 20 percent of your gross income on credit cards, and keep your total credit card line under 50 percent of your gross income.
SOMETHING FOR NOTHING
“I can get it for you wholesale” is the battle cry of the shopper’s republic–and “I can get it for you for free” is even better. According to Ram Research, the concept of giving cardholders rebates came to fruition in the 1980s with the introduction of airline bank credit cards and the creation of the Discover card’s cash-back program.
But rebate cards come in many other flavors. In addition to airline mileage cards, there are telephone company calling cards, automobile rebate cards, gasoline rebate cards, grocery rebate cards, investment or savings rebate cards and more. How do you find the best deal?
First, select a card with rebates on something you really use; then compare the interest rate and annual fees to other cards you carry or that are available. Robert McKinley, president of Ram Research, says that for entrepreneurs, rebate cards can really pay off–as long as you pay the bill in full each month.
“If you carry a balance of more than $3,000, you’ll almost always be better off finding the lowest-rate card available to you,” McKinley advises. “Paying an 18 percent interest rate [on a rebate card] that earns a 1 percent cash-back bonus is no bargain compared with paying a 12 percent rate with no cash-back program.”
If you carry a balance, you can still get the benefits of a rebate program by transferring the balance each month to a low-rate card or credit line. This can help you avoid interest rates of 17 percent or more on some rebate cards.
PANDORA’S BOX
If all this information makes you anxious to start switching, beware the offer that sounds too good to be true. Study the lowly disclosure box that appears on the back of every credit card application. If any of the following conditions fly out of that box, put a lid on that offer–fast!
1. Penalty interest. If you fail to meet the requirements of the account (by exceeding the credit limit or making late payments, for example) your interest can rise, sometimes as high as 30 percent. Credit card issuers don’t have to spell out when these rates go into effect, so before you sign up, call and ask about penalties.
2. High annual fees. There are so many low-fee and no-fee cards out there, why pay through the nose?
3. Little or no grace period. If your card doesn’t have a grace period, you’ll start paying interest the day you make a purchase.
4. Balance transfer restrictions. Some cards limit the amount you can transfer from one card to another. Others set a “teaser rate” at a low interest level for the first six months or year you have the card. Watch out when this rate expires.
5. Cash advance terms. Cards may charge higher interest rates for cash advances–and they don’t always disclose this in advance. Call and ask before borrowing cash.
Whether you charge a lot or a little, there’s a card for you. The trick is to make the best deal.
Lorayne C. Fiorillo is a financial advisor at Prudential Securities in Charlotte, North Carolina, and publisher of the financial newsletter Wall Street Wise. For a free copy of the newsletter, send a self-addressed, stamped envelope to Ms. Fiorillo in care of Entrepreneur magazine, 2392 Morse Ave., Irvine, CA 92714.
COPYRIGHT 1996 Entrepreneur Media, Inc.COPYRIGHT 2004 Gale Group
Start a Home Business
Not since Mark Twain cruised the mighty Mississippi have people been more interested in cards . . . credit cards, that is. Offers for new accounts stuff mailboxes, slip from magazines and fill the airwaves.
But if you’ve been charging like the Light Brigade, you’re not alone. According to Ram Research, a Frederick, Maryland, credit card industry research firm, American consumers charged at a record pace through the first nine months of 1995.
This year will see further changes in the credit card industry, not all of them good news for those who shop till they drop. Issuers will approve fewer cards for those applying for their most attractive rates, introductory or “teaser” rates will edge up from an average of 9 percent to 10 percent, and so- licitations to those with marginal credit records will fall dramatically. Those who pay bills late or are delinquent will see some issuers lowering their credit lines; other issuers will punish these accounts with high interest rates, reduced grace periods and higher late fees.
But if you’ve forgotten what cash looks like and hoard your frequent flier miles like King Midas, you don’t have to give up your card collection. Here are some strategies you can’t afford to pass up.
Card sharps
The trick to getting the most from your credit cards is to select the ones that are right for how you spend, pay and keep track of your purchases. If you have an impeccable credit history and low total outstanding debt, and you keep small balances on your accounts, consider low-rate credit cards. They offer limited services and below-average credit lines, but you can expect to pay one-third to one-half the average interest rate.
If you pay your balance in full each month, your card’s interest rate doesn’t matter. Choose a card with no annual fee or one with rebates.
If your credit history is good, you regularly carry a balance and you are paying interest rates in excess of 15 percent, consider switching to one of the low-rate standard or low-rate gold cards listed in the chart on page 66.
Be warned, however: Having too many credit cards can be dangerous to your financial health. Too many open lines of credit can impair your ability to apply for the best rates and could cause some issuers to declare you a high-risk account and charge you a much higher interest rate. If current low mortgage rates are tempting you to refinance your home, too many credit lines can stymie your application. As a rule of thumb, avoid owing more than 20 percent of your gross income on credit cards, and keep your total credit card line under 50 percent of your gross income.
SOMETHING FOR NOTHING
“I can get it for you wholesale” is the battle cry of the shopper’s republic–and “I can get it for you for free” is even better. According to Ram Research, the concept of giving cardholders rebates came to fruition in the 1980s with the introduction of airline bank credit cards and the creation of the Discover card’s cash-back program.
But rebate cards come in many other flavors. In addition to airline mileage cards, there are telephone company calling cards, automobile rebate cards, gasoline rebate cards, grocery rebate cards, investment or savings rebate cards and more. How do you find the best deal?
First, select a card with rebates on something you really use; then compare the interest rate and annual fees to other cards you carry or that are available. Robert McKinley, president of Ram Research, says that for entrepreneurs, rebate cards can really pay off–as long as you pay the bill in full each month.
“If you carry a balance of more than $3,000, you’ll almost always be better off finding the lowest-rate card available to you,” McKinley advises. “Paying an 18 percent interest rate [on a rebate card] that earns a 1 percent cash-back bonus is no bargain compared with paying a 12 percent rate with no cash-back program.”
If you carry a balance, you can still get the benefits of a rebate program by transferring the balance each month to a low-rate card or credit line. This can help you avoid interest rates of 17 percent or more on some rebate cards.
PANDORA’S BOX
If all this information makes you anxious to start switching, beware the offer that sounds too good to be true. Study the lowly disclosure box that appears on the back of every credit card application. If any of the following conditions fly out of that box, put a lid on that offer–fast!
1. Penalty interest. If you fail to meet the requirements of the account (by exceeding the credit limit or making late payments, for example) your interest can rise, sometimes as high as 30 percent. Credit card issuers don’t have to spell out when these rates go into effect, so before you sign up, call and ask about penalties.
2. High annual fees. There are so many low-fee and no-fee cards out there, why pay through the nose?
3. Little or no grace period. If your card doesn’t have a grace period, you’ll start paying interest the day you make a purchase.
4. Balance transfer restrictions. Some cards limit the amount you can transfer from one card to another. Others set a “teaser rate” at a low interest level for the first six months or year you have the card. Watch out when this rate expires.
5. Cash advance terms. Cards may charge higher interest rates for cash advances–and they don’t always disclose this in advance. Call and ask before borrowing cash.
Whether you charge a lot or a little, there’s a card for you. The trick is to make the best deal.
Lorayne C. Fiorillo is a financial advisor at Prudential Securities in Charlotte, North Carolina, and publisher of the financial newsletter Wall Street Wise. For a free copy of the newsletter, send a self-addressed, stamped envelope to Ms. Fiorillo in care of Entrepreneur magazine, 2392 Morse Ave., Irvine, CA 92714.
COPYRIGHT 1996 Entrepreneur Media, Inc.COPYRIGHT 2004 Gale Group
Start a Home Business
Bad Credit Loans:Fun With Credit Cards
Fun with Credit Cards
By Terry Mitchell
For those of us who know how to use them properly, credit cards can actually be quite fun and lucrative. To those who do not know how to use them properly, I would say that you should stop reading this column right about now, or at least I would advise you not to try any of this stuff at home. What I’m about to describe is not one of those illegal credit card schemes. Instead, I’m talking about taking full advantage of the benefits and offers that credit card companies and store chains offer their customers all the time.
I get several credit card offers each month, but I only accept those that come with no annual fee and pay me at least one percent cash back or credit on my purchases. I don’t care about the interest rate. It could be some exorbitant rate like 50% for all I care, since I never carry a balance and always pay off what I owe at the end of each month. Right now, I probably have about 15 different cards, but I only regularly use three of them.
I have one card that gives me an instant five percent credit on my gasoline purchases. Therefore, I buy all of my gasoline with this card and never use cash to buy it. I have another card that gives me five percent cash back on any purchase I make at a drug store or grocery store. Needless to say, I try to use that card exclusively at those establishments. The third card I regularly use gives me a one percent instant credit on all purchases. I use it for just about everything except purchases of gasoline or purchases at drug stores or grocery stores. The more I use my cards the more credits and cash back I get. The credit card companies are, in effect, paying me to use their cards and I am more than happy to oblige.
Some credit card companies will take things one step further and even pay you to take their cards. These payments will take the form of gift certificates, bonus cash back, and/or bonus credits. There is one minor catch in that most companies will generally require that you use the cards at least once each to get those benefits. That’s never a problem for me as I will use them once to get the benefits and then toss them into my “inactive” drawer.
Having lots of credit cards means I get lots of offers in the mail (and sometimes by phone) from the credit card companies in which I am asked to try out some kind of worthless subscription for 30 days. Most of the time, I just throw these offers in the trash can. However, there are some that I will try because they will “bribe” me adequately to do so. However, they must offer me at least $10 and the offer must have a free trial period. I will then cash their check, put the money in my pocket, and cancel before the free trial period ends. However, I have found that I need to be careful with these offers. Sometimes they’ll offer me $10 to try something that costs $10 (or more) per month, with no free trial period. I avoid those like the plague, since the best I can do is break even.
Speaking of worthless subscription offers, most credit card companies will push some kind of credit card insurance. The way it works that you pay about half of one percent of your monthly purchase totals so that this insurance will make your minimum monthly payment in case your are disabled, laid off, have a death in the family, or suffer some other kind of qualifying malady. This insurance may be a good idea for those who run a monthly balance and only make the minimum payment, but it’s worthless to those of us who pay off our balances each month. However, the credit card companies will never acknowledge this fact and will pay you to try it and will usually give you a free trial period.
I take these subscriptions only for cards that I don’t use, so it never costs me anything. What’s better is that when I try to cancel it, they bribe me again to keep the subscription active! The bribe is usually in the form of rebate tickets of $10 to $25 per month for about six months. When I make a purchase that equals or exceeds the face value of the ticket, I send in the receipt along with the ticket and get a cash rebate about eight weeks later for the face value of the ticket. Then, when the tickets run out and I attempt to cancel my subscription again, they offer me even more tickets to stay subscribed. Sometimes, I have tried to cancel before the six months ran out and got even more tickets for the same card in overlapping months! If you have several cards you don’t use, each with one of these subscriptions, the rebates could really add up!
In addition to the cards issued to me by the credit card companies, I have several cards issued by store chains like Sears, JC Penney, Hecht’s, etc. Most of the store chains that issue credit cards will offer discounts of 10, 15, 20, or even 25 percent at various times for simply using those cards to make purchases at their stores. Some will even offer a bonus discount for just signing up (and being approved, of course) to take one of their cards! They can afford to do this because they know that most people will not pay off their balance each month, but will instead make the minimum payment along with paying an ungodly amount of interest. The stores will more than make up for those discounts right there. Meanwhile, those of us who don’t run monthly balances reap the benefits of discounts that other people are paying for!
What I have just described is not illegal, immoral, or unethical. Credit card companies and store chains are in the business to make money and sometimes they’ll offer things that don’t seem to make sense in order to maintain and/or expand their customer base. Contrary to popular belief, credit card companies do indeed make money off people like me, who never pay a dime in interest or annual fees and take full advantage of all of their offers. The money comes from the businesses that accept those cards by way of the fees they pay each I time I use one of my cards. Those businesses, in turn, are willing to pay these fees in order to attract as many customers as they can. Therefore, everyone in the credit card cycle benefits. Those who use credit cards the way I do are just making sure they are getting their piece of the pie.
Terry Mitchell is a software engineer, freelance writer, and trivia buff from Hopewell, VA. He also serves as a political columnist for American Daily and operates his own website - http://www.commenterry.com - on which he posts commentaries on various subjects such as politics, technology, religion, health and well-being, personal finance, and sports. His commentaries offer a unique point of view that is not often found in mainstream media.
Start a Home Business
By Terry Mitchell
For those of us who know how to use them properly, credit cards can actually be quite fun and lucrative. To those who do not know how to use them properly, I would say that you should stop reading this column right about now, or at least I would advise you not to try any of this stuff at home. What I’m about to describe is not one of those illegal credit card schemes. Instead, I’m talking about taking full advantage of the benefits and offers that credit card companies and store chains offer their customers all the time.
I get several credit card offers each month, but I only accept those that come with no annual fee and pay me at least one percent cash back or credit on my purchases. I don’t care about the interest rate. It could be some exorbitant rate like 50% for all I care, since I never carry a balance and always pay off what I owe at the end of each month. Right now, I probably have about 15 different cards, but I only regularly use three of them.
I have one card that gives me an instant five percent credit on my gasoline purchases. Therefore, I buy all of my gasoline with this card and never use cash to buy it. I have another card that gives me five percent cash back on any purchase I make at a drug store or grocery store. Needless to say, I try to use that card exclusively at those establishments. The third card I regularly use gives me a one percent instant credit on all purchases. I use it for just about everything except purchases of gasoline or purchases at drug stores or grocery stores. The more I use my cards the more credits and cash back I get. The credit card companies are, in effect, paying me to use their cards and I am more than happy to oblige.
Some credit card companies will take things one step further and even pay you to take their cards. These payments will take the form of gift certificates, bonus cash back, and/or bonus credits. There is one minor catch in that most companies will generally require that you use the cards at least once each to get those benefits. That’s never a problem for me as I will use them once to get the benefits and then toss them into my “inactive” drawer.
Having lots of credit cards means I get lots of offers in the mail (and sometimes by phone) from the credit card companies in which I am asked to try out some kind of worthless subscription for 30 days. Most of the time, I just throw these offers in the trash can. However, there are some that I will try because they will “bribe” me adequately to do so. However, they must offer me at least $10 and the offer must have a free trial period. I will then cash their check, put the money in my pocket, and cancel before the free trial period ends. However, I have found that I need to be careful with these offers. Sometimes they’ll offer me $10 to try something that costs $10 (or more) per month, with no free trial period. I avoid those like the plague, since the best I can do is break even.
Speaking of worthless subscription offers, most credit card companies will push some kind of credit card insurance. The way it works that you pay about half of one percent of your monthly purchase totals so that this insurance will make your minimum monthly payment in case your are disabled, laid off, have a death in the family, or suffer some other kind of qualifying malady. This insurance may be a good idea for those who run a monthly balance and only make the minimum payment, but it’s worthless to those of us who pay off our balances each month. However, the credit card companies will never acknowledge this fact and will pay you to try it and will usually give you a free trial period.
I take these subscriptions only for cards that I don’t use, so it never costs me anything. What’s better is that when I try to cancel it, they bribe me again to keep the subscription active! The bribe is usually in the form of rebate tickets of $10 to $25 per month for about six months. When I make a purchase that equals or exceeds the face value of the ticket, I send in the receipt along with the ticket and get a cash rebate about eight weeks later for the face value of the ticket. Then, when the tickets run out and I attempt to cancel my subscription again, they offer me even more tickets to stay subscribed. Sometimes, I have tried to cancel before the six months ran out and got even more tickets for the same card in overlapping months! If you have several cards you don’t use, each with one of these subscriptions, the rebates could really add up!
In addition to the cards issued to me by the credit card companies, I have several cards issued by store chains like Sears, JC Penney, Hecht’s, etc. Most of the store chains that issue credit cards will offer discounts of 10, 15, 20, or even 25 percent at various times for simply using those cards to make purchases at their stores. Some will even offer a bonus discount for just signing up (and being approved, of course) to take one of their cards! They can afford to do this because they know that most people will not pay off their balance each month, but will instead make the minimum payment along with paying an ungodly amount of interest. The stores will more than make up for those discounts right there. Meanwhile, those of us who don’t run monthly balances reap the benefits of discounts that other people are paying for!
What I have just described is not illegal, immoral, or unethical. Credit card companies and store chains are in the business to make money and sometimes they’ll offer things that don’t seem to make sense in order to maintain and/or expand their customer base. Contrary to popular belief, credit card companies do indeed make money off people like me, who never pay a dime in interest or annual fees and take full advantage of all of their offers. The money comes from the businesses that accept those cards by way of the fees they pay each I time I use one of my cards. Those businesses, in turn, are willing to pay these fees in order to attract as many customers as they can. Therefore, everyone in the credit card cycle benefits. Those who use credit cards the way I do are just making sure they are getting their piece of the pie.
Terry Mitchell is a software engineer, freelance writer, and trivia buff from Hopewell, VA. He also serves as a political columnist for American Daily and operates his own website - http://www.commenterry.com - on which he posts commentaries on various subjects such as politics, technology, religion, health and well-being, personal finance, and sports. His commentaries offer a unique point of view that is not often found in mainstream media.
Start a Home Business
Thursday, July 14, 2005
Bad Credit Loans:Easing pain of marriage breaks
TWO separate mortgage providers unveiled products last week, specifically targeted at the UK's growing number of divorcees. more...
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Bad Credit Loans:Get Your Credit Score To Soar In The Twinkling of An Eye
Get Your Credit Score To Soar In The Twinkling of An Eye
Ever wonder how a creditor decides whether to grant you credit? For years, creditors have been using credit scoring systems to determine if you'd be a good risk for credit cards and auto loans. More recently, credit scoring has been used to help creditors evaluate your ability to repay home mortgage loans. Here's how credit scoring works in helping decide who gets credit -- and why.
What is credit scoring?
Credit scoring is a system creditors use to help determine whether to give you credit.
Information about you and your credit experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report. Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points -- a credit score -- helps predict how creditworthy you are, that is, how likely it is that you will repay a loan and make the payments when due.
Because your credit report is an important part of many credit scoring systems, it is very important to make sure it's accurate before you submit a credit application. To get copies of your report, contact the three major credit reporting agencies:
Equifax: (800) 685-1111
Experian (formerly TRW): (888) EXPERIAN (397-3742)
Trans Union: (800) 916-8800
These agencies may charge you up to $9.00 for your credit report.
Why is credit scoring used?
Credit scoring is based on real data and statistics, so it usually is more reliable than subjective or judgmental methods. It treats all applicants objectively. Judgmental methods typically rely on criteria that are not systematically tested and can vary when applied by different individuals.
How is a credit scoring model developed?
To develop a model, a creditor selects a random sample of its customers, or a sample of similar customers if their sample is not large enough, and analyzes it statistically to identify characteristics that relate to creditworthiness. Then, each of these factors is assigned a weight based on how strong a predictor it is of who would be a good credit risk. Each creditor may use its own credit scoring model, different scoring models for different types of credit, or a generic model developed by a credit scoring company.
Under the Equal Credit Opportunity Act, a credit scoring system may not use certain characteristics like -- race, sex, marital status, national origin, or religion -- as factors. However, creditors are allowed to use age in properly designed scoring systems. But any scoring system that includes age must give equal treatment to elderly applicants.
What can I do to improve my score?
Credit scoring models are complex and often vary among creditors and for different types of credit. If one factor changes, your score may change -- but improvement generally depends on how that factor relates to other factors considered by the model. Only the creditor can explain what might improve your score under the particular model used to evaluate your credit application.
Nevertheless, scoring models generally evaluate the following types of information in your credit report:
Have you paid your bills on time? Payment history typically is a significant factor. It is likely that your score will be affected negatively if you have paid bills late, had an account referred to collections, or declared bankruptcy, if that history is reflected on your credit report.
What is your outstanding debt? Many scoring models evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit, that is likely to have a negative effect on your score.
How long is your credit history? Generally, models consider the length of your credit track record. An insufficient credit history may have an effect on your score, but that can be offset by other factors, such as timely payments and low balances.
Have you applied for new credit recently? Many scoring models consider whether you have applied for credit recently by looking at "inquiries" on your credit report when you apply for credit. If you have applied for too many new accounts recently, that may negatively affect your score. However, not all inquiries are counted. Inquiries by creditors who are monitoring your account or looking at credit reports to make "prescreened" credit offers are not counted.
How many and what types of credit accounts do you have? Although it is generally good to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many models consider the type of credit accounts you have. For example, under some scoring models, loans from finance companies may negatively affect your credit score.
Scoring models may be based on more than just information in your credit report. For example, the model may consider information from your credit application as well: your job or occupation, length of employment, or whether you own a home.
To improve your credit score under most models, concentrate on paying your bills on time, paying down outstanding balances, and not taking on new debt. It's likely to take some time to improve your score significantly.
How reliable is the credit scoring system?
Credit scoring systems enable creditors to evaluate millions of applicants consistently and impartially on many different characteristics. But to be statistically valid, credit scoring systems must be based on a big enough sample. Remember that these systems generally vary from creditor to creditor.
Although you may think such a system is arbitrary or impersonal, it can help make decisions faster, more accurately, and more impartially than individuals when it is properly designed. And many creditors design their systems so that in marginal cases, applicants whose scores are not high enough to pass easily or are low enough to fail absolutely are referred to a credit manager who decides whether the company or lender will extend credit. This may allow for discussion and negotiation between the credit manager and the consumer.
What happens if you are denied credit or don't get the terms you want?
If you are denied credit, the Equal Credit Opportunity Act requires that the creditor give you a notice that tells you the specific reasons your application was rejected or the fact that you have the right to learn the reasons if you ask within 60 days. Indefinite and vague reasons for denial are illegal, so ask the creditor to be specific. Acceptable reasons include: "Your income was low" or "You haven't been employed long enough." Unacceptable reasons include: "You didn't meet our minimum standards" or "You didn't receive enough points on our credit scoring system."
If a creditor says you were denied credit because you are too near your credit limits on your charge cards or you have too many credit card accounts, you may want to reapply after paying down your balances or closing some accounts. Credit scoring systems consider updated information and change over time.
Sometimes you can be denied credit because of information from a credit report. If so, the Fair Credit Reporting Act requires the creditor to give you the name, address and phone number of the credit reporting agency that supplied the information. You should contact that agency to find out what your report said. This information is free if you request it within 60 days of being turned down for credit. The credit reporting agency can tell you what's in your report, but only the creditor can tell you why your application was denied.
If you've been denied credit, or didn't get the rate or credit terms you want, ask the creditor if a credit scoring system was used. If so, ask what characteristics or factors were used in that system, and the best ways to improve your application. If you get credit, ask the creditor whether you are getting the best rate and terms available and, if not, why. If you are not offered the best rate available because of inaccuracies in your credit report, be sure to dispute the inaccurate information in your credit report.
© Copyright - www.deleteuglycredit.com
Omar M. Omar is the owner of http://www.deleteuglycredit.com and - Author of "The Credit Repair Bible" book. The website is dedicated to providing credit consumers free advice on how to repair credit. It also provides credit consumers numerous information about their credit report, credit laws, and their rights as a consumer.
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Ever wonder how a creditor decides whether to grant you credit? For years, creditors have been using credit scoring systems to determine if you'd be a good risk for credit cards and auto loans. More recently, credit scoring has been used to help creditors evaluate your ability to repay home mortgage loans. Here's how credit scoring works in helping decide who gets credit -- and why.
What is credit scoring?
Credit scoring is a system creditors use to help determine whether to give you credit.
Information about you and your credit experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt, and the age of your accounts, is collected from your credit application and your credit report. Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles. A credit scoring system awards points for each factor that helps predict who is most likely to repay a debt. A total number of points -- a credit score -- helps predict how creditworthy you are, that is, how likely it is that you will repay a loan and make the payments when due.
Because your credit report is an important part of many credit scoring systems, it is very important to make sure it's accurate before you submit a credit application. To get copies of your report, contact the three major credit reporting agencies:
Equifax: (800) 685-1111
Experian (formerly TRW): (888) EXPERIAN (397-3742)
Trans Union: (800) 916-8800
These agencies may charge you up to $9.00 for your credit report.
Why is credit scoring used?
Credit scoring is based on real data and statistics, so it usually is more reliable than subjective or judgmental methods. It treats all applicants objectively. Judgmental methods typically rely on criteria that are not systematically tested and can vary when applied by different individuals.
How is a credit scoring model developed?
To develop a model, a creditor selects a random sample of its customers, or a sample of similar customers if their sample is not large enough, and analyzes it statistically to identify characteristics that relate to creditworthiness. Then, each of these factors is assigned a weight based on how strong a predictor it is of who would be a good credit risk. Each creditor may use its own credit scoring model, different scoring models for different types of credit, or a generic model developed by a credit scoring company.
Under the Equal Credit Opportunity Act, a credit scoring system may not use certain characteristics like -- race, sex, marital status, national origin, or religion -- as factors. However, creditors are allowed to use age in properly designed scoring systems. But any scoring system that includes age must give equal treatment to elderly applicants.
What can I do to improve my score?
Credit scoring models are complex and often vary among creditors and for different types of credit. If one factor changes, your score may change -- but improvement generally depends on how that factor relates to other factors considered by the model. Only the creditor can explain what might improve your score under the particular model used to evaluate your credit application.
Nevertheless, scoring models generally evaluate the following types of information in your credit report:
Have you paid your bills on time? Payment history typically is a significant factor. It is likely that your score will be affected negatively if you have paid bills late, had an account referred to collections, or declared bankruptcy, if that history is reflected on your credit report.
What is your outstanding debt? Many scoring models evaluate the amount of debt you have compared to your credit limits. If the amount you owe is close to your credit limit, that is likely to have a negative effect on your score.
How long is your credit history? Generally, models consider the length of your credit track record. An insufficient credit history may have an effect on your score, but that can be offset by other factors, such as timely payments and low balances.
Have you applied for new credit recently? Many scoring models consider whether you have applied for credit recently by looking at "inquiries" on your credit report when you apply for credit. If you have applied for too many new accounts recently, that may negatively affect your score. However, not all inquiries are counted. Inquiries by creditors who are monitoring your account or looking at credit reports to make "prescreened" credit offers are not counted.
How many and what types of credit accounts do you have? Although it is generally good to have established credit accounts, too many credit card accounts may have a negative effect on your score. In addition, many models consider the type of credit accounts you have. For example, under some scoring models, loans from finance companies may negatively affect your credit score.
Scoring models may be based on more than just information in your credit report. For example, the model may consider information from your credit application as well: your job or occupation, length of employment, or whether you own a home.
To improve your credit score under most models, concentrate on paying your bills on time, paying down outstanding balances, and not taking on new debt. It's likely to take some time to improve your score significantly.
How reliable is the credit scoring system?
Credit scoring systems enable creditors to evaluate millions of applicants consistently and impartially on many different characteristics. But to be statistically valid, credit scoring systems must be based on a big enough sample. Remember that these systems generally vary from creditor to creditor.
Although you may think such a system is arbitrary or impersonal, it can help make decisions faster, more accurately, and more impartially than individuals when it is properly designed. And many creditors design their systems so that in marginal cases, applicants whose scores are not high enough to pass easily or are low enough to fail absolutely are referred to a credit manager who decides whether the company or lender will extend credit. This may allow for discussion and negotiation between the credit manager and the consumer.
What happens if you are denied credit or don't get the terms you want?
If you are denied credit, the Equal Credit Opportunity Act requires that the creditor give you a notice that tells you the specific reasons your application was rejected or the fact that you have the right to learn the reasons if you ask within 60 days. Indefinite and vague reasons for denial are illegal, so ask the creditor to be specific. Acceptable reasons include: "Your income was low" or "You haven't been employed long enough." Unacceptable reasons include: "You didn't meet our minimum standards" or "You didn't receive enough points on our credit scoring system."
If a creditor says you were denied credit because you are too near your credit limits on your charge cards or you have too many credit card accounts, you may want to reapply after paying down your balances or closing some accounts. Credit scoring systems consider updated information and change over time.
Sometimes you can be denied credit because of information from a credit report. If so, the Fair Credit Reporting Act requires the creditor to give you the name, address and phone number of the credit reporting agency that supplied the information. You should contact that agency to find out what your report said. This information is free if you request it within 60 days of being turned down for credit. The credit reporting agency can tell you what's in your report, but only the creditor can tell you why your application was denied.
If you've been denied credit, or didn't get the rate or credit terms you want, ask the creditor if a credit scoring system was used. If so, ask what characteristics or factors were used in that system, and the best ways to improve your application. If you get credit, ask the creditor whether you are getting the best rate and terms available and, if not, why. If you are not offered the best rate available because of inaccuracies in your credit report, be sure to dispute the inaccurate information in your credit report.
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Omar M. Omar is the owner of http://www.deleteuglycredit.com and - Author of "The Credit Repair Bible" book. The website is dedicated to providing credit consumers free advice on how to repair credit. It also provides credit consumers numerous information about their credit report, credit laws, and their rights as a consumer.
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Bad Credit Loans:Credit Articles and Resources
Rebuild & Keep Good Credit Ratings by Understanding Your Credit Cards/Good Credit/Credit Ratings/Secured Credit Cards
SECURED CREDIT CARDS
Secured Credit Card is similar to a prepaid credit card since the funds you are using are actually yours and not the issuer of the credit card. Generally people who apply for secured credit card or prepaid credit card are people with poor credit or unemployed. Prepaid Credit Card spending limit is the amount of money you loaded to the card. There are no interest or finance charges on a prepaid card. With secured credit card, your credit line could be from 50% to 100% of your deposit depending on the institution giving you the secured credit. Therefore the company giving you the secured credit card has zero risk.
Secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers' payment history to any of the three main credit bureaus namely Experience, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.
Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in rebuilding your credit rating. Additionally, even though secured credit is like prepaid cards, they do have certain fees attached. Benefits are similar to that of an unsecured credit card, such as usually being paid interest on your balance in the bank, using Automated Teller Machines (ATM) to make deposits, withdrawals, and making purchases at participating merchants. Following the above steps will strengthen your credit rating.
UNSECURED CREDIT CARDS
Unsecured cards are issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one's ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.
Customers should read the credit agreement to ensure that they understand their obligation to the creditor. Making payments on time will strengthen your credit rating. Unsecured credit cards has numerous advantages such as low interest rates, high credit limit, business name options, no annual fees, and low APRs on balance transfers up to 12 months. Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in maintaining a good credit rating.
REBUILDING YOUR CREDIT
It takes time, patience, and consistency. If you consistently pay your bills on time, you will see an improvement in your credit ratings over time. There are no quick fixes for improving your credit report except for mistakes or inaccuracies that can be corrected, hopefully in your favor. Your credit information is maintained by the credit bureaus namely Experience, Equifax, and Trans Union for seven years. Therefore poor credit information will remain on your report for seven years. The good thing is that as negative information disappears with positive information, this will definitely rebuild your credit rating. Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in rebuilding your credit rating.
Applying for secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history, and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers' payment history to any of the three main credit bureaus namely Experience, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.
BUSINESS CREDIT CARDS
Business credit cards are very popular for small business owners because of the many benefits they offer. Benefits includes 0% Intro APR on balance transfers, no annual fees, high credit limit, low interest rates, cash rewards, bonus miles, free online account management to choosing card design etc., At iCreditOnline.com we have some of the best business credit cards from American Express, Advanta, Chase, Bank One, Bank of America, Discover, Citibank, Household Bank and more, with online credit card approval. Why waste time going to a bank when you can get a decision in less than 60 seconds with secure online credit card application. Online Credit Card Approval with Online Credit Card Application is fast and easy!
STUDENT CREDIT CARDS
Having a student credit card while still living at home or attending school away from home can be an advantage. It gives the student the opportunity to establish credit at an early age and to start asserting their independence. It comes in handy in case of emergency, it is less trouble and safer to carry a student credit card than to carry cash. Parents find student credit cards to be very convenient. They are able to make deposits to their children's account while they are away from home. Students should be careful with their credit card receipts to avoid identity thief.
If you consistently pay your bills on time, obtaining students credit cards is a good way to established credit rating and start building a good credit history while in school. Establishing and maintaining a good credit rating will make it easy to purchase a car, a home or obtaining a personal loan in the future. For students who are not committed to their financial obligation, getting a student credit card is not a good idea. Running up balances, finding yourself in debt, unable to make monthly payments will destroy your credit rating.
Student's credit cards generally have high interest rates. At iCreditOnline.com we offer some of the best student credit cards from Chase and Discover with 0% APR introductory rate for 6 months, no annual fees and online account access. Online credit card approval with online credit card application is fast and easy!
EXPLANATIONS OF SOME OF THE CREDIT CARD TERMINOLOGY
0% Intro APR Credit Card or Balance Transfer Credit Card - gives you the benefit of using this credit card without making any interest payment on the principal for a stated period of time. This credit card is marketed to individuals with good credit rating who want to transfer balance from a high interest credit card to a 0% intro APR credit card.
Cash Rewards or Cash Back Credit Card - earns a percentage on purchases made. This reward or cash back is credited to your account.
Debit Card - takes the place of carrying a checkbook or cash. This card is used like a credit card with certain limitations, such as not being able to rent a car. Purchase transactions are contingent upon having enough funds in your checking or savings account to cover the purchase. Verification of funds requires entering your Personal Identification Number (PIN) at a point-of-sale terminal.
Low Interest Credit Card - saves you money. Having a good credit rating qualifies you for some of the best low APR credit card offers.
Prepaid Credit Card - spending limit is the amount of money you loaded to the card. There are no interest or finance charges on a prepaid card. Therefore the company giving you the prepaid credit card has zero risk. Generally people who apply for prepaid credit card are people with poor credit or unemployed.
Secured Credit Card - is secured by the amount of funds you have in your account. Your credit line could be from 50% to 100% of your deposit depending on the institution giving you the secured credit.
Unsecured Credit Card - is issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one's ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate and can receive instant online credit card approval. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.
Travel Rewards Credit Card - benefits may include travel accident insurance, free rental car collision/loss damage insurance, rebate on gasoline purchases, frequent flyer points or bonus miles towards airline flights, free quarterly and annual account summaries.
David Hall owns iCreditOnline.com. He offers free downloadable, high quality guides on credit repair, credit ratings, credit scoring, debt consolidation and more. He has tools for finding a wide range of financial services including secured and unsecure cards, student and business cards, auto loans, and more from the most reputable companies in the industry. You can also compare multiple credit card offers, securely complete an online credit card application, and receive a credit decision in less than 60 seconds. Visit David's site today: http://www.iCreditOnline.com
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SECURED CREDIT CARDS
Secured Credit Card is similar to a prepaid credit card since the funds you are using are actually yours and not the issuer of the credit card. Generally people who apply for secured credit card or prepaid credit card are people with poor credit or unemployed. Prepaid Credit Card spending limit is the amount of money you loaded to the card. There are no interest or finance charges on a prepaid card. With secured credit card, your credit line could be from 50% to 100% of your deposit depending on the institution giving you the secured credit. Therefore the company giving you the secured credit card has zero risk.
Secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers' payment history to any of the three main credit bureaus namely Experience, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.
Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in rebuilding your credit rating. Additionally, even though secured credit is like prepaid cards, they do have certain fees attached. Benefits are similar to that of an unsecured credit card, such as usually being paid interest on your balance in the bank, using Automated Teller Machines (ATM) to make deposits, withdrawals, and making purchases at participating merchants. Following the above steps will strengthen your credit rating.
UNSECURED CREDIT CARDS
Unsecured cards are issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one's ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.
Customers should read the credit agreement to ensure that they understand their obligation to the creditor. Making payments on time will strengthen your credit rating. Unsecured credit cards has numerous advantages such as low interest rates, high credit limit, business name options, no annual fees, and low APRs on balance transfers up to 12 months. Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in maintaining a good credit rating.
REBUILDING YOUR CREDIT
It takes time, patience, and consistency. If you consistently pay your bills on time, you will see an improvement in your credit ratings over time. There are no quick fixes for improving your credit report except for mistakes or inaccuracies that can be corrected, hopefully in your favor. Your credit information is maintained by the credit bureaus namely Experience, Equifax, and Trans Union for seven years. Therefore poor credit information will remain on your report for seven years. The good thing is that as negative information disappears with positive information, this will definitely rebuild your credit rating. Closing unnecessary accounts and consolidating your bills to make payments more manageable could be an advantage financially. By not applying for too much credit within a short period of time is another factor that will help in rebuilding your credit rating.
Applying for secured credit card can be very beneficial because it gives you an opportunity to rebuild your credit history, and you are able to make purchases just as if you had an unsecured credit card. Many companies require that you have a credit card to make purchases, such as car rental, airline tickets, etc. Ensure that the company issuing the secured credit, routinely reports customers' payment history to any of the three main credit bureaus namely Experience, Equifax and Trans Union. This reporting to the credit bureaus will rebuild your credit history over time.
BUSINESS CREDIT CARDS
Business credit cards are very popular for small business owners because of the many benefits they offer. Benefits includes 0% Intro APR on balance transfers, no annual fees, high credit limit, low interest rates, cash rewards, bonus miles, free online account management to choosing card design etc., At iCreditOnline.com we have some of the best business credit cards from American Express, Advanta, Chase, Bank One, Bank of America, Discover, Citibank, Household Bank and more, with online credit card approval. Why waste time going to a bank when you can get a decision in less than 60 seconds with secure online credit card application. Online Credit Card Approval with Online Credit Card Application is fast and easy!
STUDENT CREDIT CARDS
Having a student credit card while still living at home or attending school away from home can be an advantage. It gives the student the opportunity to establish credit at an early age and to start asserting their independence. It comes in handy in case of emergency, it is less trouble and safer to carry a student credit card than to carry cash. Parents find student credit cards to be very convenient. They are able to make deposits to their children's account while they are away from home. Students should be careful with their credit card receipts to avoid identity thief.
If you consistently pay your bills on time, obtaining students credit cards is a good way to established credit rating and start building a good credit history while in school. Establishing and maintaining a good credit rating will make it easy to purchase a car, a home or obtaining a personal loan in the future. For students who are not committed to their financial obligation, getting a student credit card is not a good idea. Running up balances, finding yourself in debt, unable to make monthly payments will destroy your credit rating.
Student's credit cards generally have high interest rates. At iCreditOnline.com we offer some of the best student credit cards from Chase and Discover with 0% APR introductory rate for 6 months, no annual fees and online account access. Online credit card approval with online credit card application is fast and easy!
EXPLANATIONS OF SOME OF THE CREDIT CARD TERMINOLOGY
0% Intro APR Credit Card or Balance Transfer Credit Card - gives you the benefit of using this credit card without making any interest payment on the principal for a stated period of time. This credit card is marketed to individuals with good credit rating who want to transfer balance from a high interest credit card to a 0% intro APR credit card.
Cash Rewards or Cash Back Credit Card - earns a percentage on purchases made. This reward or cash back is credited to your account.
Debit Card - takes the place of carrying a checkbook or cash. This card is used like a credit card with certain limitations, such as not being able to rent a car. Purchase transactions are contingent upon having enough funds in your checking or savings account to cover the purchase. Verification of funds requires entering your Personal Identification Number (PIN) at a point-of-sale terminal.
Low Interest Credit Card - saves you money. Having a good credit rating qualifies you for some of the best low APR credit card offers.
Prepaid Credit Card - spending limit is the amount of money you loaded to the card. There are no interest or finance charges on a prepaid card. Therefore the company giving you the prepaid credit card has zero risk. Generally people who apply for prepaid credit card are people with poor credit or unemployed.
Secured Credit Card - is secured by the amount of funds you have in your account. Your credit line could be from 50% to 100% of your deposit depending on the institution giving you the secured credit.
Unsecured Credit Card - is issued to individuals with good to excellent credit rating. Credit ratings depend on certain criteria, such as one's ability to repay loans. These criteria include payment history, employment history, and financial stability. Individuals with excellent credit will most likely receive a lower interest rate and can receive instant online credit card approval. A major factor in maintaining excellent credit is making your loan payments on time thus avoiding late fee penalties.
Travel Rewards Credit Card - benefits may include travel accident insurance, free rental car collision/loss damage insurance, rebate on gasoline purchases, frequent flyer points or bonus miles towards airline flights, free quarterly and annual account summaries.
David Hall owns iCreditOnline.com. He offers free downloadable, high quality guides on credit repair, credit ratings, credit scoring, debt consolidation and more. He has tools for finding a wide range of financial services including secured and unsecure cards, student and business cards, auto loans, and more from the most reputable companies in the industry. You can also compare multiple credit card offers, securely complete an online credit card application, and receive a credit decision in less than 60 seconds. Visit David's site today: http://www.iCreditOnline.com
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Bad Credit Loans:Stop Credit Card Offers "Opt Out"
Stop Credit Card Offers "Opt Out"
You can stop receiving credit card offers in the mail! It's really easy to do - just phone 1-888-567-8688 and follow the prompts and provide the requested information including Social Security number, date of birth, etc.
Do this for every adult member of your household, including college students. Your "opt-out" status will be sent to each of the four credit bureaus (Equifax, Experian, TransUnion and Innovis). In four to six weeks, you will reduce the number of these kinds of offers.
Protect your identity, save a tree and make your postal carrier's life easier, too!
Cindy Morus (http://www.cindymorus.com) is a Certified Financial Recovery Counselor specializing in showing women and their families how to achieve financial well-being and peace of mind. She is also a Certified Credit Report Reviewer. Contact her at 541-387-2995 or cindy@cindymorus.com. Get a free copy of the "Secrets to Negotiating Lower Credit Card Interest Rates" e-book when you sign up for the "Financial Freedom Monthly" newsletter at http://www.cindymorus.com/newsletter.asp .
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You can stop receiving credit card offers in the mail! It's really easy to do - just phone 1-888-567-8688 and follow the prompts and provide the requested information including Social Security number, date of birth, etc.
Do this for every adult member of your household, including college students. Your "opt-out" status will be sent to each of the four credit bureaus (Equifax, Experian, TransUnion and Innovis). In four to six weeks, you will reduce the number of these kinds of offers.
Protect your identity, save a tree and make your postal carrier's life easier, too!
Cindy Morus (http://www.cindymorus.com) is a Certified Financial Recovery Counselor specializing in showing women and their families how to achieve financial well-being and peace of mind. She is also a Certified Credit Report Reviewer. Contact her at 541-387-2995 or cindy@cindymorus.com. Get a free copy of the "Secrets to Negotiating Lower Credit Card Interest Rates" e-book when you sign up for the "Financial Freedom Monthly" newsletter at http://www.cindymorus.com/newsletter.asp .
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Wednesday, July 13, 2005
Bad Credit Loans:How To Read Your Credit Report
The Fair and Accurate Credit Transactions Act, signed into law on Dec. 4, 2003, gives every American the right to a free credit report every year from each of the three major credit bureaus -- Equifax, Experian and TransUnion. more...
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Tuesday, July 12, 2005
Bad Credit Loans:Eight Ways to Consolidate Debt
Next to winning the lottery, a debt consolidation loan is a debtor�'s dream. With one monthly payment and a fixed monthly payment schedule, you can actually see an end to those monthly payments. more...
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Bad Credit Loans:Credit Establishment 101
Credit Establishment 101
There will come a day when you need credit. You may want to buy a home or a car and your credit rating will become very important to help make these dreams come true. One of the first things you will need to learn is the basic principle of money management, especially the ability to repay your creditors on time within the 30-day grace period they establish for you. Most people secure credit cards as the first way to establish credit in High School or College. Upon getting the credit card, usually a low spending limit, the ability to repay the card in an orderly fashion will help you establish a positive credit rating with the major repositories.
How your score is recorded
Upon making your monthly payments to the Credit Card Company or bank, your information is electronically transmitted to a credit-reporting agency. Trans Union, Equifax and Experian are the three major credit agencies. Once you have made your payments consistently your rating will rise accordingly. Once your rating has hit 650 or better, your mailbox will become flooded with attractive offers for credit cards and loans. People will want to give you the world because you can pay your bills in a timely manner.
What else is affected with the credit rating?
You may be surprised but if you do not act financially responsible, it can prevent you from getting a job, renting an apartment or even opening a bank account. The fact of the matter is that your credit rating is very important in today’s society. Your ability to keep it up to date by monitoring it is crucial. Once a year you can pull a free credit report from each agency. Check the report for accuracy, should it be reporting errors contact them immediately to resolve the issue. Some people might think a simple phone call can fix everything. That couldn’t be farther from the truth, repairing damaged credit takes time and only you can do it. Once you file a claim, stick with it and make sure it gets resolved. Once a correction has been made you will receive notification or an amended report from the agency showing the change. Your credit report has much more at stake for you in the present and in the future, watch it closely.
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.
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There will come a day when you need credit. You may want to buy a home or a car and your credit rating will become very important to help make these dreams come true. One of the first things you will need to learn is the basic principle of money management, especially the ability to repay your creditors on time within the 30-day grace period they establish for you. Most people secure credit cards as the first way to establish credit in High School or College. Upon getting the credit card, usually a low spending limit, the ability to repay the card in an orderly fashion will help you establish a positive credit rating with the major repositories.
How your score is recorded
Upon making your monthly payments to the Credit Card Company or bank, your information is electronically transmitted to a credit-reporting agency. Trans Union, Equifax and Experian are the three major credit agencies. Once you have made your payments consistently your rating will rise accordingly. Once your rating has hit 650 or better, your mailbox will become flooded with attractive offers for credit cards and loans. People will want to give you the world because you can pay your bills in a timely manner.
What else is affected with the credit rating?
You may be surprised but if you do not act financially responsible, it can prevent you from getting a job, renting an apartment or even opening a bank account. The fact of the matter is that your credit rating is very important in today’s society. Your ability to keep it up to date by monitoring it is crucial. Once a year you can pull a free credit report from each agency. Check the report for accuracy, should it be reporting errors contact them immediately to resolve the issue. Some people might think a simple phone call can fix everything. That couldn’t be farther from the truth, repairing damaged credit takes time and only you can do it. Once you file a claim, stick with it and make sure it gets resolved. Once a correction has been made you will receive notification or an amended report from the agency showing the change. Your credit report has much more at stake for you in the present and in the future, watch it closely.
Jakob Jelling is the founder of http://www.cashbazar.com. Visit his website for the latest on personal finance, debt elimination, budgeting, credit cards and real estate.
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Bad Credit Loans:Keep Your Credit History Clean - Remove A Negative Credit Record From Credit Report
The three major credit bureaus, Experian, Equifax and Trans Union are similar and feature a "Credit Score", which is created from credit report data submitted to them about you.But very often your credit report includes inaccurate, wrong or incomplete information (credit records). more...
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Bad Credit Loans:Secured Credit Cards- Consumer Tips
Secured Credit Cards- Consumer Tips
Whether you have no credit or damaged credit, secured credit cards are a good tool for building a good credit history.
Several months ago Tom, a member of CreditBoards.com, filed for a Chapter 7 Bankruptcy. Now he is in the process of rebuilding his credit history. It’s a task that is not easy, but with patient persistence he is seeing progress already. Daily he checks his credit score and is slowly seeing improvement.
1 - In addition to correcting every mistake, even the smallest ones, on his credit report, he is using a secured credit card.
2 - This secured card is an important tool in the overall process of building or rebuilding credit.
Who should consider a secured credit card?
Someone who has no credit history.
Someone with a damaged credit history.
What is a secured credit card?
Secured cards are credit cards opened with a deposit into a savings account, money market or certificate of deposit. The amount of deposit required varies from card to card, but generally minimum amounts range from $250 - $500. These funds are considered your security and will even earn a little interest since they are being held in a savings account. Your credit limit is determined by the amount you deposit into the savings account. Sometimes the limit will be for the full amount of the deposit; other times it will be a percentage of the total.
It is important to keep in mind that a secured card is a credit card, not a debit card. If full payments are not made each month, then interest is charged on the outstanding balance. And the lending institution uses the security money to pay off the debt only as a last resort. Even though the card is secured, it is still possible to damage credit.
What are the benefits of a secured credit card?
Establishing credit. If you have never had a credit card, a good first step in establishing good credit is applying for a secured credit card. Assistant Professor of Economics at Austin Peay State University in Clarksville, TN, Jerry Plummer says, “A secured card is most useful for the person starting out on their credit history, since it says that the person is willing to take the extra step to establish credit.”
Reestablishing credit. If your credit history is damaged, you may only be able to qualify for a secured credit card. Using this secured card appropriately and within the set parameters will help rebuild your credit and qualify you for an unsecured card. If you have had to file for bankruptcy, however, you may not qualify until it has been discharged.
Preset limit cannot be exceeded. If poor spending habits were part of the cause for bad credit, then a secured credit card will help keep spending in check.
Useful for transactions that require a credit card. Hotels and car rentals require the use of a credit card. If you don’t qualify for an unsecured card but you do for a secured card, then you are still able to make the transaction.
What should I look for or avoid when shopping for a secured credit card?
Fees. This is the area you will really want to research when shopping for a secured credit card. Some cards will come with fees that run into the hundreds of dollars, eating away much of the credit you secured with the savings account. Professor Plummer says a card with no fee is the best, but a small one-time fee can be okay. Annual fees for attractive secured cards typically range from $20-$35. Be sure to watch out for hidden fees such as “registration charges” and “setup fees.”
Interest Rate. Just because you have no or poor credit doesn’t mean you have to settle for the highest interest rate. Interest rates for attractive secured cards should not exceed 19%. Shop around and get the most competitive rate available.
Read the fine print. Linda Tucker, Director of Education for Consumer Credit Counseling Service for Arkansas and Memphis, TN, stresses the importance of reading the fine print. Doing so will let you know your exact obligations to the issuing company: for example, the grace period, what happens if you don’t make a full payment, and what fees are attached if you don’t make the full payment. Understanding these details will help make sure you are not further damaging your credit.
Fraudulent Offers. As with unsecured cards you need to watch out for fraudulent offers.The Federal Trade Commission gives the following advice to protect yourself from credit card fraud:
Offers of easy credit. No one can guarantee to get you credit. Before deciding whether to give you a credit card, legitimate credit providers examine your credit report.
A call to a '900' number for a credit card. You pay for calls with a '900' prefix -- and you may never receive a credit card.
Credit cards offered by "credit repair" companies or "credit clinics." These businesses also may offer to clean up your credit history for a fee. However, you can correct genuine mistakes or outdated information yourself by contacting credit bureaus directly. Remember that only time and good credit habits will restore your credit worthiness.
When will I qualify for an unsecured credit card?
It can take several months to see an improvement in your credit history. Bankrate says it’s a good indicator when you start receiving flyers in the mail for unsecured cards that your credit is improving. However, it’s a good idea to continue taking things slowly. Using a secured card will help you learn healthy habits so that when you do get an unsecured credit card you remain in control of your spending and credit.
Where can I find a secured credit card?
Most companies don’t advertise secured cards. But you can visit the Card Reports section of http://www.CardRatings.com to find out where and how to apply. Click on the link entitled “Cards for Consumers with Poor or No Credit”.
Other tips
Tom recommends sticking with only one or two cards and keeping spending to a minimum. The goal is to pay the card off each month.
Tucker emphasizes the importance of paying the amount due each month; otherwise late fees can be charged, interest rates raised, privileges lost, and credit history negatively affected.
Make sure you are getting a credit card as opposed to a gas card or a department store card.
Make sure a reputable bank or credit union, even a local one, is issuing the card. And, don’t automatically assume a bank is issuing the card.
Not all issuers report to the three major credit agencies (Experian, Equifax, and TransUnion). It’s important to get a card that does report to all three agencies; otherwise you will be wasting your time. Fortunately, secured cards normally report to the credit agencies just like unsecured cards (you should verify this before applying).
If you have filed for bankruptcy, you may need to wait until it has been discharged before qualifying for a secured card.
Get one only if you cannot get credit, since you have no credit record; or if you have poor credit. Plummer says, “Many companies will not even count them as credit, such as automobile F&I (Finance and Insurance) people, although they will not admit it.” So, if you don’t really need a secured card, you will be doing more harm than good.
Finally, whatever situation you are in, no credit or poor credit, the best way to build good credit is to set up a budget and then stick with it.
1 You can pay membership fees to any one of the three credit bureaus – Experian, TransUnion, and Equifax- to be able to check your credit score online daily. Visit our Credit Information section for more details. Tom recommends purchasing Microsoft Money 2004, which comes with a one-year membership to Experian (value of $99.00).
2 To find out more about correcting errors on your credit report, read our article How to Correct Mixed or Split Credit Reports.
Amy Cooper-Arnold is a staff writer for http://www.CardRatings.com. Amy has been employed in various accounting-related positions. She will graduate this December from Austin Peay State University with a degree in English.
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Whether you have no credit or damaged credit, secured credit cards are a good tool for building a good credit history.
Several months ago Tom, a member of CreditBoards.com, filed for a Chapter 7 Bankruptcy. Now he is in the process of rebuilding his credit history. It’s a task that is not easy, but with patient persistence he is seeing progress already. Daily he checks his credit score and is slowly seeing improvement.
1 - In addition to correcting every mistake, even the smallest ones, on his credit report, he is using a secured credit card.
2 - This secured card is an important tool in the overall process of building or rebuilding credit.
Who should consider a secured credit card?
Someone who has no credit history.
Someone with a damaged credit history.
What is a secured credit card?
Secured cards are credit cards opened with a deposit into a savings account, money market or certificate of deposit. The amount of deposit required varies from card to card, but generally minimum amounts range from $250 - $500. These funds are considered your security and will even earn a little interest since they are being held in a savings account. Your credit limit is determined by the amount you deposit into the savings account. Sometimes the limit will be for the full amount of the deposit; other times it will be a percentage of the total.
It is important to keep in mind that a secured card is a credit card, not a debit card. If full payments are not made each month, then interest is charged on the outstanding balance. And the lending institution uses the security money to pay off the debt only as a last resort. Even though the card is secured, it is still possible to damage credit.
What are the benefits of a secured credit card?
Establishing credit. If you have never had a credit card, a good first step in establishing good credit is applying for a secured credit card. Assistant Professor of Economics at Austin Peay State University in Clarksville, TN, Jerry Plummer says, “A secured card is most useful for the person starting out on their credit history, since it says that the person is willing to take the extra step to establish credit.”
Reestablishing credit. If your credit history is damaged, you may only be able to qualify for a secured credit card. Using this secured card appropriately and within the set parameters will help rebuild your credit and qualify you for an unsecured card. If you have had to file for bankruptcy, however, you may not qualify until it has been discharged.
Preset limit cannot be exceeded. If poor spending habits were part of the cause for bad credit, then a secured credit card will help keep spending in check.
Useful for transactions that require a credit card. Hotels and car rentals require the use of a credit card. If you don’t qualify for an unsecured card but you do for a secured card, then you are still able to make the transaction.
What should I look for or avoid when shopping for a secured credit card?
Fees. This is the area you will really want to research when shopping for a secured credit card. Some cards will come with fees that run into the hundreds of dollars, eating away much of the credit you secured with the savings account. Professor Plummer says a card with no fee is the best, but a small one-time fee can be okay. Annual fees for attractive secured cards typically range from $20-$35. Be sure to watch out for hidden fees such as “registration charges” and “setup fees.”
Interest Rate. Just because you have no or poor credit doesn’t mean you have to settle for the highest interest rate. Interest rates for attractive secured cards should not exceed 19%. Shop around and get the most competitive rate available.
Read the fine print. Linda Tucker, Director of Education for Consumer Credit Counseling Service for Arkansas and Memphis, TN, stresses the importance of reading the fine print. Doing so will let you know your exact obligations to the issuing company: for example, the grace period, what happens if you don’t make a full payment, and what fees are attached if you don’t make the full payment. Understanding these details will help make sure you are not further damaging your credit.
Fraudulent Offers. As with unsecured cards you need to watch out for fraudulent offers.The Federal Trade Commission gives the following advice to protect yourself from credit card fraud:
Offers of easy credit. No one can guarantee to get you credit. Before deciding whether to give you a credit card, legitimate credit providers examine your credit report.
A call to a '900' number for a credit card. You pay for calls with a '900' prefix -- and you may never receive a credit card.
Credit cards offered by "credit repair" companies or "credit clinics." These businesses also may offer to clean up your credit history for a fee. However, you can correct genuine mistakes or outdated information yourself by contacting credit bureaus directly. Remember that only time and good credit habits will restore your credit worthiness.
When will I qualify for an unsecured credit card?
It can take several months to see an improvement in your credit history. Bankrate says it’s a good indicator when you start receiving flyers in the mail for unsecured cards that your credit is improving. However, it’s a good idea to continue taking things slowly. Using a secured card will help you learn healthy habits so that when you do get an unsecured credit card you remain in control of your spending and credit.
Where can I find a secured credit card?
Most companies don’t advertise secured cards. But you can visit the Card Reports section of http://www.CardRatings.com to find out where and how to apply. Click on the link entitled “Cards for Consumers with Poor or No Credit”.
Other tips
Tom recommends sticking with only one or two cards and keeping spending to a minimum. The goal is to pay the card off each month.
Tucker emphasizes the importance of paying the amount due each month; otherwise late fees can be charged, interest rates raised, privileges lost, and credit history negatively affected.
Make sure you are getting a credit card as opposed to a gas card or a department store card.
Make sure a reputable bank or credit union, even a local one, is issuing the card. And, don’t automatically assume a bank is issuing the card.
Not all issuers report to the three major credit agencies (Experian, Equifax, and TransUnion). It’s important to get a card that does report to all three agencies; otherwise you will be wasting your time. Fortunately, secured cards normally report to the credit agencies just like unsecured cards (you should verify this before applying).
If you have filed for bankruptcy, you may need to wait until it has been discharged before qualifying for a secured card.
Get one only if you cannot get credit, since you have no credit record; or if you have poor credit. Plummer says, “Many companies will not even count them as credit, such as automobile F&I (Finance and Insurance) people, although they will not admit it.” So, if you don’t really need a secured card, you will be doing more harm than good.
Finally, whatever situation you are in, no credit or poor credit, the best way to build good credit is to set up a budget and then stick with it.
1 You can pay membership fees to any one of the three credit bureaus – Experian, TransUnion, and Equifax- to be able to check your credit score online daily. Visit our Credit Information section for more details. Tom recommends purchasing Microsoft Money 2004, which comes with a one-year membership to Experian (value of $99.00).
2 To find out more about correcting errors on your credit report, read our article How to Correct Mixed or Split Credit Reports.
Amy Cooper-Arnold is a staff writer for http://www.CardRatings.com. Amy has been employed in various accounting-related positions. She will graduate this December from Austin Peay State University with a degree in English.
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Bad Credit Loans:Top 5 Reasons To Check Your Credit Report Regularly
#1 Make sure mistakes aren't hurting your credit.Reviewing your credit report can help you avoid costly errors. In one recent study, more than 50% of the credit reports checked contained errors. Other studies have shown similar results with as high as a 70% error rate. The most common error occurs when the information of another person, with a similar name or account number, is recorded in your credit profile. more...
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Bad Credit Loans:Apply For Home Mortgage Loan Online With Bad Credit
When applying for a mortgage loan, you will need to watch out for your credit, one of the biggest factors in getting approved for a mortgage loan. Here are some things to watch out for. more...
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Bad Credit Loans:Home Mortgages After Bankruptcy
If you have a recent bankruptcy on your credit and are looking to get financing for a home, there is hope. Buying a home with bad credit will just put more emphasis on the other two factors needed to get a mortgage loan, which are; income verification and a down payment. more...
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Bad Credit Loans:Get Out From Under Debt Weight and Soar to Financial Security
Meg's finances were okay, but she wanted more than to just barely meet expenses. So she decided to start an Internet business. She searched around, found a reliable company that she liked, products that she felt comfortable using and promoting. But she didn't have the money to promote her business. What did she do? What any smart business owner would do. She borrowed the money to invest in herself. more...
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Bad Credit Loans: Budgeting
The Misery but Necessity of Budgeting
by Gary North
Most people hate budgets and budgeting. Budgets are a reminder of our limitations. There's no such thing as a free lunch, but we all love the idea of free lunches. What Gary North says.
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by Gary North
Most people hate budgets and budgeting. Budgets are a reminder of our limitations. There's no such thing as a free lunch, but we all love the idea of free lunches. What Gary North says.
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Monday, July 11, 2005
Bad Credit Loans:Get Out From Under Debt Weight and Soar to Financial Security
Meg's finances were okay, but she wanted more than to just barely meet expenses. So she decided to start an Internet business. She searched around, found a reliable company that she liked, products that she felt comfortable using and promoting. But she didn't have the money to promote her business. What did she do? What any smart business owner would do. She borrowed the money to invest in herself. more...
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Sunday, July 10, 2005
Bad Credit Loans:Auto Loans Consumer Fact Sheet on Predatory ...
Auto Loans Consumer Fact Sheet on Predatory Auto Lending
Auto Loans - Predatory Auto Lending - What is It?
Predatory auto lending is the practice of charging consumers excessively high interest rates for auto loans.
Auto Loans - Predatory Auto Lending - Who is Doing It and Why?
Some car dealers may enter into agreements with lenders, to charge you a much higher interest rate than you could get by shopping around. This higher interest rate is known as a dealer �markup�, which allows dealers and lenders to profit at your expense. The more interest you pay, the more profit the dealer makes.
Bad Credit Loans:Identity Theft Precautions and Remedies Shared by Lee Harrison Credit Restoration
March 2, 2005 --Identity theftis the number one crime in America today. The Federal Trade Commission stated that one-in-eight adults fell victim toidentity theftover the last five years. With an estimated 38% ofidentity theft victimsnot more...
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Bad Credit Loans:Credit Card Penalties, Fees Bury Debtors
By Kathleen Day and Caroline E. Mayer, Washington Post Staff WritersFor more than two years, special-education teacher Fatemeh Hosseini worked a second job to keep up with the $2,000 in monthly payments she collectively sent to five banks to try to more...
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Saturday, July 09, 2005
Bad Credit Loans:Get Out From Under Debt Weight and Soar to Financial Security
Meg's finances were okay, but she wanted more than to just barely meet expenses. So she decided to start an Internet business. She searched around, found a reliable company that she liked, products that she felt comfortable using and promoting. But she didn't have the money to promote her business. What did she do? What any smart business owner would do. She borrowed the money to invest in herself. more...
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Bad Credit Mortgage Loans – How To Get Approved
Bad Credit Mortgage Loans – How To Get Approved
by Carrie Reeder
Persistence is the key working toward getting approved for a bad credit mortgage loan. There are many factors that you, as a borrower have control over that can help you get approved faster and easier. There are guidelines that most sub-prime lenders go by that, if you know them, can help you move through the process without getting stuck, unable to get financing.
If you have a bankruptcy or foreclosure, even if they are recent, do not despair. Many sub-prime or bad credit mortgage lenders have what’s called, guidelines for bankruptcy or foreclosure seasoning. That means that they have a set amount of time that must go by from the time of a bankruptcy or foreclosure before they will lend to a borrower. Usually this time is 2-3 years, but many sub-prime lenders have no seasoning time, which means, if your credit score is above a certain point, you could get approved the day after your bankruptcy discharge. Other sub-prime lenders have bankruptcy or foreclosure seasoning of 6 months or a year. The biggest factor here will be your credit score.
Sub-prime or bad credit mortgage lenders will look closely at your credit score. In order to get 100% financing with bad credit, lenders will usually need to see you have a credit score of at least 600 or higher. There are quite a few things you can do to raise your credit score to be above this 600 mark. Here are a few suggestions:
1. 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.
2. 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. Most lenders have programs where they can, for a $75 fee per item, provide proof to the credit bureaus that an account has been paid off and have your credit and credit score appropriately adjusted within a day or two. This program is sometimes called a “wrap it up” service. If you are in a hurry to get financed, this may be worth it to you. 3. 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 boost 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. 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 a approved for a bad credit mortgage loan, be persistent, 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.
Visit here to see a list of our recommended lenders for bad credit mortgage lenders: www.abcloanguide.com/lessthanperfectcredit.shtml.
Carrie Reeder is the owner of http://www.abcloanguide.com. ABC Loan Guide is an informational loan website with informative articles, the latest finance news and lists of recommended mortgage lenders.
carrie@abcloanguide.com
by Carrie Reeder
Persistence is the key working toward getting approved for a bad credit mortgage loan. There are many factors that you, as a borrower have control over that can help you get approved faster and easier. There are guidelines that most sub-prime lenders go by that, if you know them, can help you move through the process without getting stuck, unable to get financing.
If you have a bankruptcy or foreclosure, even if they are recent, do not despair. Many sub-prime or bad credit mortgage lenders have what’s called, guidelines for bankruptcy or foreclosure seasoning. That means that they have a set amount of time that must go by from the time of a bankruptcy or foreclosure before they will lend to a borrower. Usually this time is 2-3 years, but many sub-prime lenders have no seasoning time, which means, if your credit score is above a certain point, you could get approved the day after your bankruptcy discharge. Other sub-prime lenders have bankruptcy or foreclosure seasoning of 6 months or a year. The biggest factor here will be your credit score.
Sub-prime or bad credit mortgage lenders will look closely at your credit score. In order to get 100% financing with bad credit, lenders will usually need to see you have a credit score of at least 600 or higher. There are quite a few things you can do to raise your credit score to be above this 600 mark. Here are a few suggestions:
1. 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.
2. 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. Most lenders have programs where they can, for a $75 fee per item, provide proof to the credit bureaus that an account has been paid off and have your credit and credit score appropriately adjusted within a day or two. This program is sometimes called a “wrap it up” service. If you are in a hurry to get financed, this may be worth it to you. 3. 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 boost 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. 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 a approved for a bad credit mortgage loan, be persistent, 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.
Visit here to see a list of our recommended lenders for bad credit mortgage lenders: www.abcloanguide.com/lessthanperfectcredit.shtml.
Carrie Reeder is the owner of http://www.abcloanguide.com. ABC Loan Guide is an informational loan website with informative articles, the latest finance news and lists of recommended mortgage lenders.
carrie@abcloanguide.com
Bad Credit Loans:History of Credit Scoring
Credit scores came into wide use in the 1980s. Long before credit scores, human judgment was the sole factor in deciding who received credit. more...
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Bad Credit Loans - Bad Credit Debt Consolidation Loans
Bad Credit Debt Consolidation Loans
by: Carrie Reeder
Are you looking to consolidate credit card or other debt? Do you have bad credit history? There are many options available online nowadays to help you consolidate your debt. Whether you are wanting to consolidate credit card debt or other kinds of debt, it can be overwhelming searching online to find the best ones for your situation. Here is a short overview of what kind of debt services are available online.
If you are looking for a loan to consolidate your debt, you will need to qualify for the loan, just like any other loan. If you have a home, you may be able to get an equity loan using your equity or even go over the appraised value of your home in order to get the financing you need.
You may be able to qualify for an unsecured loan, which can consolidate your debt with one low monthly payment with no ties to any of your assets.
There are other companies that will help you manage your debt without having to use another loan. These companies usually charge you a fee and then help negotiate lower interest rates with your creditors and manage your monthly payments. There are various ways to do this and every company is different. Usually these techniques will save you money to start paying down the principle on your credit balances.
Some of these companies are definitely worth the small monthly fee, and can save you much more than they charge. But, some of these companies are not legitimate and can take your monthly payments and keep them for a month or more before they make your payments (collecting interest on the money all the while), causing you to accrue late fees and possibly collections. These companies can actually cost you money and make your situation worse.
Be careful when searching for debt consolidation companies to work with. Make sure they are legitimate, long standing companies before you sign on the dotted line. To see our list of recommended debt consolidation lenders click on the link below.
Consolidating your debt can provide great relief and breathing room when it comes time to pay your bills. Sometimes, when you are up to the hilt in debt, it can be so overwhelming just keeping up with your bills that it can be difficult to think about ways to start paying the debt down.
To see our list of recommended debt consolidation service companies, visit this page: http://www.abcloanguide.com/debtconsolidation.shtml.
Carrie Reeder is the owner of ABC Loan Guide. ABC Loan Guide is an informational loan website with informative articles related to many different types of loans. To see recommended, credible lenders and loan service companies, visit: http://www.abcloanguide.com/debtconsolidation.shtml - carrie@abcloanguide.com
by: Carrie Reeder
Are you looking to consolidate credit card or other debt? Do you have bad credit history? There are many options available online nowadays to help you consolidate your debt. Whether you are wanting to consolidate credit card debt or other kinds of debt, it can be overwhelming searching online to find the best ones for your situation. Here is a short overview of what kind of debt services are available online.
If you are looking for a loan to consolidate your debt, you will need to qualify for the loan, just like any other loan. If you have a home, you may be able to get an equity loan using your equity or even go over the appraised value of your home in order to get the financing you need.
You may be able to qualify for an unsecured loan, which can consolidate your debt with one low monthly payment with no ties to any of your assets.
There are other companies that will help you manage your debt without having to use another loan. These companies usually charge you a fee and then help negotiate lower interest rates with your creditors and manage your monthly payments. There are various ways to do this and every company is different. Usually these techniques will save you money to start paying down the principle on your credit balances.
Some of these companies are definitely worth the small monthly fee, and can save you much more than they charge. But, some of these companies are not legitimate and can take your monthly payments and keep them for a month or more before they make your payments (collecting interest on the money all the while), causing you to accrue late fees and possibly collections. These companies can actually cost you money and make your situation worse.
Be careful when searching for debt consolidation companies to work with. Make sure they are legitimate, long standing companies before you sign on the dotted line. To see our list of recommended debt consolidation lenders click on the link below.
Consolidating your debt can provide great relief and breathing room when it comes time to pay your bills. Sometimes, when you are up to the hilt in debt, it can be so overwhelming just keeping up with your bills that it can be difficult to think about ways to start paying the debt down.
To see our list of recommended debt consolidation service companies, visit this page: http://www.abcloanguide.com/debtconsolidation.shtml.
Carrie Reeder is the owner of ABC Loan Guide. ABC Loan Guide is an informational loan website with informative articles related to many different types of loans. To see recommended, credible lenders and loan service companies, visit: http://www.abcloanguide.com/debtconsolidation.shtml - carrie@abcloanguide.com
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