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...
Start a Home Business
Friday, July 15, 2005
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...
Start a Home Business
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...
Start a Home Business
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...
Start a Home Business
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...
Start a Home Business
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
Subscribe to:
Comments (Atom)