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Cash Back

2010-10-31T12:34:00.001-07:00

First Frank and Janet thought it was a simple error. Their mortgage had been recently sold to a new company with a new servicing company. As with the prior lender, they had sent in their mortgage payment by way of a personal check between the first and the fifteenth of the month and the payment had been posted with little event as being received as agreed.

Around the 20th of month, a rather cryptic call was received on the answering machine stating the payment had not been received and a late charge would be applied and charged and that they needed to make a payment immediately. Ok Frank and Janet reasoned that the payment might have been lost in the mail. Things happen, although it was the first time in two years that a payment was late. Frank and Janet has some credit challenges three years ago and found it necessary to entertain a sub prime loan to buy the house that they currently resided. Thus they were dealing with a sub prime lender and all that goes with it. Quickly, Frank and Janet called customer service and were able to make a check debit on line for the payment plus a late fee right out of their checking account. The late fee of 5% amounted to $62.50. Frank told the mortgage-servicing representative that they would put a stop payment on the check and instructed them to flag the account and not deposit that particular check (with #10224 check number dated on the 2nd of that month) as he was going to put a “Stop Payment” on it. After the call they called their bank and put a “stop payment” on that check. This cost them $25. Five days later another call came in from the mortgage servicing company stated that they had deposited the mailed check and it came back resulting in a $50 charge for the transaction since it hadn’t gone through. The conversation went nowhere as there wasn’t a record anywhere.

Frank and Janet looked at each other and collectively rolled their eyes while verbally reviewing what had transpired. Frank asked Janet rhetorically, “Can you believe this”? Next month rolls around and this time Frank and Janet make a special effort to send the mortgage payment in close to the first of the month. Around the 20th of the month, Frank and Janet received another call from the mortgage servicing company indicating again, that the payment had not been received and that there would be another late charge. The discussion became extremely heated with Frank leading the charge. Frank demanded to speak with a supervisor regarding the second time around of the mishandling of the monthly mortgage payment. The supervisor was not of much help claiming the check had not been received. Frank and Janet were determined that they would not put another “Stop Payment” on this check at a cost of $25. Not getting any satisfaction, Frank told the customer service supervisor that he would call back in seven days to see if the check had been received and posted. Seven days later, Frank called and the check had been received and posted but there would be a late charge that would apply. Another $62.50 late charge would apply. Frank and Janet were frosted beyond belief but at the same time relieved that the check had arrived. What could be going on they wondered.

The next month Frank and Janet decided to send in the mortgage payment a week before the 1st giving the mortgage servicing company plenty of time to receive and post the payment well within the time frame. On the 20th of that month a call was received from the mortgage servicing company stating once again the payment had not been received. Frank and Janet were beside themselves. This time Janet demanded to speak with a supervisor. The supervisor explained that the check had not been received. Janet pressed the supervisor further, “Has this been a recurring problem with other borrowers?” There was a long pause of silence from the supervisor followed by, “Uh…no…I don’t think so.” Janet wasn’t satisfied with any of the answers and what was going on with this new mortgage servicing company and was determined to get the bottom of these “phantom late charges”. Adding insult to injury, the following month a thirty-day late was reported to the credit bureau. Frank and Janet engaged in their own spirited credit repair campaign.

Immediately, after getting off the phone with the supervisor Janet and Frank went on line and started researching the company for any information that might shed some light on what was happening. It was found a series of stories and articles about complaints regarding this servicing company. A ton of new service business had been added without the staff to handle it. Check and payments were stacked up and untouched. Problems and complaints mounted. State and Federal agencies were suing with massive fines to be levied. Frank and Janet decided to send bank checks by certified mail return receipt. This was cheaper than $62.50 a crack and could now prove ready receipts of their payments.

Credit Repair

2010-10-31T12:33:00.000-07:00

Around the 20th of month, a rather cryptic call was received on the answering machine stating the payment had not been received and a late charge would be applied and charged and that they needed to make a payment immediately.

Ok Frank and Janet reasoned that the payment might have been lost in the mail. Things happen, although it was the first time in two years that a payment was late. Frank and Janet has some credit challenges three years ago and found it necessary to entertain a sub prime loan to buy the house that they currently resided. Thus they were dealing with a sub prime lender and all that goes with it. Quickly, Frank and Janet called customer service and were able to make a check debit on line for the payment plus a late fee right out of their checking account. The late fee of 5% amounted to $62.50. Frank told the mortgage-servicing representative that they would put a stop payment on the check and instructed them to flag the account and not deposit that particular check (with #10224 check number dated on the 2nd of that month) as he was going to put a “Stop Payment” on it. After the call they called their bank and put a “stop payment” on that check. This cost them $25. Five days later another call came in from the mortgage servicing company stated that they had deposited the mailed check and it came back resulting in a $50 charge for the transaction since it hadn’t gone through. The conversation went nowhere as there wasn’t a record anywhere.

Instant Credit Card

2010-10-31T12:32:00.000-07:00

Getting a credit card used to be a time-consuming business. You'd have to ring or go into your bank, fill out a lengthy form and wait for quite a while before you got a reply. Although many people are still using that method, there's now a quicker way, thanks to the Internet.

How Do I Find An Online Credit Card Application?

Most card issuers now offer online application for their credit cards. Finding one is as simple as doing an Internet search or visiting that company's website. In addition, there are several credit card comparison sites that allow users to select cards that match a range of features and then apply. Credit card applicants are required to be UK residents and over 18.

Most online credit card applications now have a summary box which gives details of the rates that apply to purchases, balance transfers and cash advances, the interest free period, fees and charges, how interest is charged and how payments are allocated. There is also a link to the detailed terms and conditions. Once you've read these, it's time to fill in the application form. Here is the information that most credit card applications ask for.

Cardholder's Name And Address

To start with, you will need to give your name. This is usually your full name – no hiding that unwanted moniker from the credit card companies. They will also ask about marital status and your date of birth. Credit card companies also ask for your mother's maiden name for security purposes. Applications are only taken from the principal cardholder. This means you can't apply for a credit card on someone else's behalf. However, you can add an additional cardholder at the time of application or later.

You will also need details of your address and postcode. If you have lived at this address less than three years, you will also need to give your previous address and postcode. In essence, you need to show a three year history of where you have lived. Other contact details required include a phone number and an email address.

Home Ownership And Employment

Most companies want to know whether you own or rent your home and some may ask about the size of your mortgage payment. They will also want to know your occupation and employment status. Ideally credit card applicants should be working more than 16 hours a week.

They will also require annual income and bank details, including how long you've been with the bank. Finally, you'll have to list the types of credit cards you already have (Visa, MasterCard, Amex, store cards and so on).

All of these help credit card companies establish what level of credit risk you are and what credit rating you have.

Other Credit Card Services

Many online applications forms offer you the chance to take up additional services such as payment protection insurance, travel insurance, household insurance and much more.

You will also need to have details of any cards that need to be transferred to your new credit card.

Once you've completed all these details, you simply need to wait a short while for a response. Some card issuers respond within a minute. It's worth knowing that there will be some cases where they will ask for additional information before issuing a credit card.

To Use Or Not To Use

2010-10-31T12:31:00.000-07:00

Nowadays it is becoming a trend to keep more than one credit cards in the wallet. Most of us have several plastic cards in our pocket leading us in the serious financial bind that is unrecoverable in most of the cases. Although these credit cards save our butt when we are in trouble sometimes when we need money for some unexpected expenses but if you use them carelessly then you are in trouble in no time.

All this happens because of marketing capability of those credit card companies.

They advertise what people want, the 0 apr credit cards. Most of the people have an impression that zero depicts that you will not have to pay anything but that is not true. Usually, there are hidden clauses that the 0 apr credit cards are for a limited period or amount after which there is heavy interest. When it comes to end of year, we all end up paying huge bills that include interest on the purchases and use of credit card.

Our mailboxes are loaded with many such advertisements. The common question would be, how many have you got today in your mailbox? Now it’s upon you to read the advertisement or to throw it in trash. What I want to express is that the credit cards should be used wisely and not be used to spend money carelessly just because you don’t have to pay at the moment. If you use these 0 apr credit cards wisely then it could be the best opportunity for you. You must use the credit card where it is really needed to limit your purchase on credit. Try to pay by cash at most of the places and don’t stick on your 0 apr credit cards for all your expenditure. Avoid struggling with the monthly credit card payment. There are only very few people who can pay all monthly credit card payments in time. Credit card count for such customers who are unable to pay for their monthly credit card payments as most of us are. Then these companies offer such 0 apr credit cards for some emergencies in the end of the month to increase their sales as some people take it to pay their monthly payments.

If you are looking for best options to have such 0 apr credit cards then you can find the best deals on the internet. Just hop online and surf various websites with different options and select the most suitable offer for you. If you are unaware of websites supporting the offer then use Google search engine to find loads of websites. Remember the 0 apr credit cards are for your convenience and not to spend blindly ending up in big credits.

Credit Card Debt

2010-10-31T12:30:00.000-07:00

People know the fact that debt accumulated by spending on frivolous items is bad and research has also found that people tend to underestimate the extent of their borrowing. In financial website Bankrate's survey, 58% of respondents claimed to pay off in full their credit cards every month, which is in contrast to studies that show the number is closer to 40%. Surprisingly, only 3% of respondents believed that other people paid off their bills in full.

A study by an American economist on the competition in the credit card market also found that, despite assurances to the contrary, three quarters of consumers pay finance charges on their outstanding credit card balances.

Actually, debt may not just be related to money problems but emotional issues as well. Some depressed people may use credit and shopping as a means of overcompensation. They feel depressed and they don't feel good. They hope that shopping will make them feel good. Thus, in a simplistic way, they're 'fixing' their problem, but the fact is, it leads to even more trouble.

It may also be used to make up for certain traits one may be lacking. For instance, if a person feels that he isn't very capable, he may try to make up for that through credit spending. Society enjoys a higher standard of living today and people are used to getting what they want even though they can't afford it and this kind of habit leads to disaster.

In a study titled "Consumer Response to Changes in Credit Supply", two US researches analyzing several hundred thousand credit card accounts and found that increased liquidity triggers immediate and large jumps in spending and debt. On average, debt rises by about $40 in the month in which a credit line is increased, more than $180 in the two months after an increase and more than $350 in a year. Each extra $1,000 of liquidity is translated into a $130 increase in an individual's debt.

The research also found that many people seem to 'aim' credit card use. Say, if a consumer is originally using 60% of his $5,000 credit limit and when his limit is increased to $6,000, he might increases his spending to raise the utilization rate back to 60%. Thus, it causes more debt and more interest to pay.

Another research program by an American non-profit financial centre Myvesta's survey reveals that a quarter of Americans don't even review their credit card statements each month. It's natural for human beings seeking pleasure and avoiding pain. In a materialistic and hedonistic world, pleasure is often linked to buying something. Thus, as long as they don't face the bills, they can carry on spending and deriving pleasure. For them a credit card is a tool for spending; whether they have money or not to spend is a separate issue.

When you are consuming, you are not thinking about the payments and when you are paying, you do not know what you are paying for!

If you are taking on a long term or large debt that can't possibly be paid off in the near future, it is smart to factor in all the things that could happen in that time period. As we all know, economies can decline which leads to changes in interest rates and value of assets and threaten jobs. People always just see what is happening today and they always ignore the future.

Usually, the person is already in debt but it is still under control until something bad happens. Once the income is gone, the person can't afford to make monthly payments and the excess gets rolled over. Then, due to compounding interest, the debt grows and grows. In conclusion, consumers should be entirely rational about debt and when it comes to spending.

Get A Bank Card

2010-10-31T12:29:00.001-07:00

A bank credit card is a financial tool that can act as a form of revolving credit. A consumer, who uses a bank credit card, must pay back the money after a period of time, along with some interest. Sometimes, the bank waives interest charges when the balance is paid completely each month.

Any U.S. citizen who is above eighteen years of age is eligible to obtain a bank credit card. Despite this, many banks issue bank credit card only after opening a bank account. The consumer needs to maintain a good credit history and his income must meet the bank's criteria.

Most of the U.S. banks verify the details written in the consumer's credit card application form before issuing the bank credit card. This is usually done by contacting the consumer in person or by telephone. Some banks even assign agencies to check the consumer's credit history. It is always advisable to have a copy of the credit report from any of the major national credit bureaus before applying for a bank credit card.

When the application is approved, the bank sends a Personal Identification Number (PIN) that serves as the key to obtain cash from an ATM. A PIN is a highly confidential number known only to the consumer; it is unique to every bank credit card. In most cases, the consumer can obtain a bank credit card within ten business days upon approval of the application.

With the advent of online banking, it is very easy to apply for credit cards online. It is a more secure method, as it protects the consumer's personal financial information. Some U.S. banks provide additional benefits such as insurance, credit card protection, rebates, and discounts along with the credit card.

Even when the consumer has bad or a damaged credit, it is possible to obtain a secured bank credit card; to do so, the consumer is required to open and maintain a savings account to act as collateral for the credit line.

Card Applications

2010-10-31T12:28:00.001-07:00

A bank credit card is an extremely incredible and convenient piece of plastic with which one can purchase goods and services. An average American now holds up to eight bank credit cards. In order to qualify for a bank credit card, the applicant must be eighteen years of age and should have a good credit history.

U.S. banks offer various types of bank credit cards. After choosing the appropriate bank credit card, the consumer needs to submit a duly completed bank credit card application. An application and processing fee must also be paid along with the application. An individual can apply for a bank credit card online or through the phone. U.S. banks usually send bank credit card applications by ordinary mail, since the consumer is required to sign the applications upon receiving them. When bank credit card applications are transmitted online, there are more chances for fraud.

Most bank credit card applications include personal information about the consumer such as name, age, date of birth, marital status, applicant's current and previous addresses (only when the current address is less than two years), e-mail address, driver's license number, and social security number. To enter the employment details of the applicant, fields such as occupation, employer, position, household income, and source of other income are available. Bank account information is also included in the bank credit card applications. Moreover, the applicant needs to specify whether he is a citizen or a permanent resident of the U.S. If necessary, the details of the co-applicant/spouse are also required to be entered in bank credit card applications.

If the applicant is a student, in addition to the basic personal information, bank credit card applications have fields for entering student status, school name, graduation year, major, and campus telephone.

Once the bank credit card applications are completed and submitted, the bank will verify the details by contacting the consumer in person or through the given telephone numbers. The bank issues bank credit cards only when the consumer proves to hold a good credit record.

Credit Card Tips

2010-10-31T12:27:00.001-07:00

The day you open a bank account is a very significant day. It's the day you take your first steps towards financial responsibility. It's also the day that your credit report is created – and unlike your bank, your credit report will be with you for the rest of your life.

Your credit report consists of financial data stored with a credit reference agency. Equifax and Experian are the largest and best known. Your credit report will affect whether you can get loans, credit cards, mortgages and other financial products. It will affect credit in retail outlets as well. That's why it's very important to keep your credit report looking good. Here are some tips to help you get a good credit score.

Keep On Banking

Banking history is an important aspect of any credit report. It shows financial responsibility. Banks check your credit too, so if you have a cheque account, an approved overdraft, a savings account and a credit card from your bank, lenders will increase your credit score. What's more, the longer you stay with the same bank, the better that portion of the credit score gets.

It can be tempting to change bank accounts to take advantage of preferential interest rates or account incentives. The best approach is to keep and use your original bank account, even if you manage the bulk of your finances elsewhere.

Be Responsible

Responsibility comes in many forms. Credit checkers score older people more highly than young ones. They also score homeowners more highly than tenants. People who are living at home will not score well on this aspect of the credit file. Lenders are hoping to see the profile of a responsible citizen. Someone who owns a home is less likely to disappear and leave bad debt behind.

Another aspect of being responsible is being on the electoral roll. This means that your local authority has a record of where you live. It also makes it easier for lenders to look up your address details. If they can't find your address, they may hesitate before lending money.

Make sure you have a telephone at home. This is a sign that you have successfully passed a credit check and that you have paid your bills on time. Lenders will see this as another way of showing responsibility.

Manage Your Credit

Another key way to improve your credit rating is to get some credit. This can be a store card, credit card, loan or other form of credit. Whichever you choose, the trick is to manage it well. That means making payments on time and in full, no defaults, no arrears and definitely no CCJs. Managing existing credit well looks good on your credit report and makes you a good risk for further credit.

Good credit history, responsible banking and traceability will help to improve anyone's credit report. And if you have got bad credit there are still many loan and credit products available to you. If you manage those well, then you could be on your way to a better credit report.

Credit Reports

2010-10-31T12:26:00.001-07:00

If you’ve been wondering what’s in your credit report, you’re probably way over due for a look at your credit history and score. But with so much information packed into each credit report, it can often be frustrating trying to decipher all of the codes, abbreviations and numbers within them. If you’re not sure how to read your credit report, you’re not alone. It can be tough trying to figure it all out, so keep reading to gain a better understanding.

For your convenience, many credit reports list personal information, credit history, public records and inquiries in different columns. This will make it easier for you to read and understand them. If you’re not sure what FICO means, it stands for Fair Isaac Corporation and it’s the most popular scoring system used by lenders.

You can expect to see your full name, address and social security number listed on your credit report. As you skim this information, check to see if everything is correct. As you go down this page, you will also see previous addresses listed along with your date of birth, phone number and employer name.

Check the public records section of your credit report if you have had credit problems in the past, such as collection accounts and bankruptcy. Don’t forget to go through this section, because if any of the listed information is false, your credit rating could be greatly affected. . The credit history portion of your credit report will contain a list of all the credit accounts you’ve ever opened and closed. They will detail if you have paid on time or been late and might offer remarks, such as “pays on time” or “pays 30 days late.” The three major credit bureaus, Experian, Equifax and TransUnion have tried to make reading credit reports easier on consumers by making their information less complicated.

Anytime you have applied for a line of credit in the past, it has been detailed in the inquiry section of your credit report. Review this section to see just who has been asking for a copy of your credit report. If you see anything suspicious, report it, but keep in mind that anytime you apply for an apartment, personal loan or credit card, your credit has been run.

It might take you a few tries to fully comprehend your credit report, but you’ll get there. The important thing is that you are keeping track of your credit history and rating and that is a wise investment for your future.

Business Credit Cards

2010-10-31T12:25:00.001-07:00

One of the advantages of using a credit card to finance your business operations is the ability to extend and effectively manage your business cash flow. Business credit cards with salient features such as low interest rates are considered the ideal card for businesses and their employees.

The interest rate is also called the annual percentage rate (APR). It is the cost of maintaining the unpaid balance of your account past a given grace period. Simply put, it is the price of doing business with your card company over time. The principle here is that the lower the APR, the more beneficial it will be for your business.

As with most major banks, a grace period is usually 30 days from the date of your purchase in which your company may pay for all its purchases without incurring any interest and additional bank charges. Subsequently, the unpaid portion of your account is then transferred to the next billing cycle for which your business will be responsible, with the corresponding APR and other finance charges.

The key here is to compare your own business billing and collection cycle with that of your card's APR. If your business billing cycle collects its receivables after the 30-day allowable grace period, it would be best to get a business credit card with lower APRs to enable you to carry your unpaid balance longer without suffering exorbitant interest rates and other bank charges synonymous with unpaid debts. However, should your business collection cycle end before the 30-day grace period, it would be more prudent to secure a business credit card with regular APRs or fixed APRs, since your business is capable of paying off its obligations within the specified time.

In any case, try to look for business credit cards that offer cash back guarantees and other rewards programs for prompt credit card payment so as to maximize the usage of your business cards.

Cards And Rewards

2010-10-31T12:24:00.001-07:00

A lot of credit card companies offer incentives to people with large debts. These include 0% balance transfers, 0% purchase rates and long term low interest rates on balance transfers. But people who clear their balances regularly do not benefit from these rewards. After all, if they pay off their balances each month, they are not paying interest anyway. So how can these people gain something from using their credit cards? The answer lies in credit card reward schemes.

What Are Credit Card Reward Schemes?

Credit card reward schemes are schemes that offer bonuses or incentives to people when they spend on their credit card. These schemes are usually linked to the amount spent, so this is a good option for people who put their monthly spending on their credit cards. There are a number of credit card reward schemes to choose from.

Earning Nectar Points With Your Credit Card

One of the best known reward schemes is the Nectar points scheme. This started as a loyalty card scheme, with Sainsburys, Debenhams and BP as the principal players. There are now a number of retailers who accept and issue Nectar points. There is also a branded Nectar credit card (run by American Express) which allows card holders to earn Nectar points when shopping for a range of goods with the credit card. Card holders who also have a Nectar loyalty card can earn up to 4 points for every pound spent. These points can then be used for shopping, entertainment, travel and more.

Other Credit Card Points Schemes

Many other credit card companies also offer their own proprietary points schemes. Again, these allow card holders to collect a set number of points for every pound spent. These points can then be used to claim discounts on food, wine and travel; travel insurance; clothing; high street discount vouchers; or exchanged for cash. Many credit card companies also give cash back rewards. These consist of a rebate of a certain percentage of the amount spent on a credit card per month or year. There is usually a cap on the amount of the rebate.

Reward Yourself For Travelling

Another common points scheme is the air miles scheme. This allows card holders to earn a set number of miles linked to the amount they spend on the credit card. Card holders can have separate air miles accounts or can gain more benefit by applying for one of the many credit cards that offer air miles as their reward. With air miles credit cards, credit card holders can also benefit from balance transfer rates and other incentives. Many air miles credit cards also offer additional discounts or upgrades on travel products.

Other Credit Card Reward Schemes

In addition to these credit card reward schemes, there are credit cards that offer specific incentives to consumers. These include earning money to help with the purchase of a car. Credit card holders can also consider using their credit cards to give to charity. There are a number of charity credit card schemes backed by major banks.

Top Credit Score

2010-10-31T12:23:00.001-07:00

Do you often have too much month left at the end of your money? While you strive to pay your monthly bills on time, computers are keeping a close watch on your performance.

Automated programs keep score on your payment punctuality, and other financial information, which have a direct impact on your ability to qualify for a loan, and the interest rate you will be offered. A score of 700 or better can provide the lowest rates, while a score of 620 or less can mean the highest rates, or possibly no loan at all.

3 Primary Factors That Influence Credit Scores:

Late Payments - Not considered late until 30 days past the due date. 60 or 90 day late payments are more negative than a 30 day late. The age of late payments can influence credit scores. Recent late payments are considered worse than older ones. More serious issues include: consumer credit counseling, collections, bankruptcy, and foreclosure.

Outstanding Debt - Having a large number of open accounts can reduce your credit scores. Another issue is the ratio of your credit limit compared to the current balance. Using 75% of your credit limit is a greater risk than using 25%.

Account History – Older credit accounts can have a positive effect on credit scores, as long they are not delinquent. Having recently opened accounts could reduce your scores. Also, multiple inquiries indicate a possible new account, which may cost a few points.

Incorrect information can sometimes appear on a credit report. If you believe there is a potential error on your credit report, you are entitled to dispute the accuracy of the information. The federal Fair Credit Reporting Act gives you the right to challenge inaccurate information by contacting the reporting agencies, and the company who reported the information. Under the FCRA, they are responsible to correct any errors on your credit report free of charge, and within a specific time limit.

The credit bureaus, Experian, Equifax, and Transunion, are required to investigate your dispute within 30 days of reporting the potential error. They will contact the source of the derogatory information and try to confirm the record. Providing documentation to support your claim, if you have any, can also expedite the process. If the credit bureaus are unable to confirm the derogatory information from the source, the item must be removed from your credit report, which can improve your score.

Balance Transfers

2010-10-31T12:22:00.001-07:00

A balance transfer is an option offered by many credit card issuers which enables the card holder to use their available credit from one card to pay off the balances due on one or more other cards. Usually the interest rate on the amount borrowed is lower than the rate of the cards that are being paid off by the balance transfer.

Balance transfers are really nothing more than a consumer loan made to a customer who is already pre-qualified by the lender because of the credit card relationship that exists. Since the card issuer is already open to exposure for the maximum amount of the card holder’s credit line anyway,

it makes financial sense for the card issuer to entice the cardholder to run their balance up as high as possible.

A balance transfer offer is the perfect way to entice the card holder. Most balance transfer offers will come with an artificially low introductory interest rate, such as 1% or 0%, for a fixed period of time. After that time period the interest rate will rise to whatever was permitted by the terms of the offer.

Some offers will come with a fixed interest rate for the lifetime of the balance transfer payment period, subject to the usual penalty clauses for late payment, etc.

Although some card holders receive fee-free balance transfer offers, depending upon their credit experience with the card issuer, as well as their overall credit score, most balance transfer transaction require the card holder to pay a fee. This fee could be a flat-rate or a percentage of the amount borrowed. Typical offers these days are running 3% of the amount transferred per transaction, or $5, whichever is greater. Some offers cap the transfer fee at $50.

Consumers who pay close attention to the fine print, and who are diligent about paying the balance transfer balance off during the promotional interest rate period, can reduce their monthly expenses by transferring high interest credit card balances to the lower interest card offering the balance transfer option.

Consumers who do opt to take a balance transfer should not run up more debt by using the credit cards that the transfer was used to pay off. This defeats the purpose of paying off the balance to begin with and will quickly place the debtor in a position where they are no longer able to make their payments.

Yearly Fees

2010-10-31T12:21:00.001-07:00

The annual fee, or membership fee, is an amount charge card companies levy for the right to use or carry their card. This fee is payable whether you actually use the card during the year or not. Annual fees range from an average low of $25 to as much as $100 or more.

Annual fees were first popularized by prestige charge cards such as American Express and Diner’s Club. These annual charges were called Membership Fees. The charge card companies justified these fees because card holders were required to pay their balances in full every month and the companies earned no interest from the balances due.

The annual fee made the leap from club cards to the ordinary bank card in 1980 after the U.S. Government imposed a temporary moratorium on the solicitation of new customers for bank card companies. This was done in the hopes of cutting runaway inflation. The card issuers saw this as a chance to earn more money from their existing customer base who suddenly found themselves without any options thanks to the hastily passed government initiative.

After the moratorium was lifted, card users left the fee in place with a justification that annual fees kept interest rates low because it provided a way for the banks to offset losses from fraud and the rising number of personal bankruptcy claims. There was little outcry from the public and business went on as usual.

The first sign of trouble on the horizon came in 1990 when long-distance giant AT&T (American Telephone and Telegraph) entered the credit card industry with the hopes of offsetting their declining long distance revenues. Looking to raise the visibility of their new card in an already crowded marketplace, AT&T made a big advertising splash with their “No Annual Fee Credit Card!”

The response from consumers was overwhelming and the panic spread quickly through competing banks that were seeing their long-time credit card customers defect to upstart AT&T. That one incident, which bankers still call “The Big Scare”, marked the beginning of the end of the annual fee for most people.

Today, American Express still charges their membership fees although some of their interest-bearing products come fee-free. Most banks issue fee-free credit cards to their customers with high credit scores and save the fee-based offers for lower scoring customers and customers with scores so low that they can only qualify for secured cards.

0% Credit Cards

2010-10-31T12:20:00.001-07:00

First of all, no credit card is going to offer 0% financing forever. Let’s just make sure that is understood that at some point after you activate your 0% APR credit card, usually 6 months, your APR will increase to whatever your credit rating dictates. If you were approved for a 0% credit card offer, then your rating is probably pretty good and your APR should be competitive.

There may be fees associated with your credit card during and after the introductory period, and we will take a look at them here:

Annual Fee – If your card has an annual fee, then there is no way you are going to get around it. The fee will be applied to your card either the second billing cycle after you receive the card, or the first billing cycle after your intro period. Annual fees are not as common as they used to be, and range anywhere between $15.00 to over $100.00 depending on the card. The terms and conditions will clearly define any annual fee that may apply.

Minimum Finance Charge – This is fairly self explanatory. Regardless of how much balance you leave on your credit card at the end of any billing cycle, there will be a minimum finance charge. This charge differs from card to card, but is usually around $1.00. If you have an APR of 11%, and you leave a balance of fifty cents on your card, you will be charged the minimum finance charge, in this case $1.00.

Transaction Fees For Balance Transfers – Obviously this only applies if you have made a balance transfer, but many consumers apply for 0% credit cards for the specific purpose of transferring a balance to a new card to avoid finance charges for a limited time. There will almost always be a fee applied the moment the balance transfer goes through, as well as a minimum fee. An average transaction fee is around 3% of the total amount transferred, and a common minimum fee of $10.00.

Late Payment Fee – Another self explanatory fee, this is applied anytime you make a late payment. As it relates to 0% Credit Card intro offers, if you make a late payment to your creditor, then you owe the late payment fee and your APR immediately increases to either its normal rate, or its default rate which will be much higher. The fee itself is usually determined by the amount of your current balance. An example would be “$15.00 if the balance is up to but not including $250.00; $39.00 if the balance is $250.00 and over.” This of course can differ between issuers.

Over-the-Credit-Limit Fee – This fee has become very rare in today’s market, but it’s still there. If you somehow manage to charge more than the limit of your card, which is difficult to do now that all purchases are checked electronically, then you will be assed a fee for doing so. This fee ranges around the $35.00 area, but can be much more.

International Transactions – Anytime currency is exchanged through the use of a credit card a conversion fee is levied. This means if you are on vacation in Italy and make a purchase using your American credit card, there will be an additional fee added to the transaction. This fee is usually around 3% of the dollar amount of the purchase. Don’t let the word International fool you though. You can get hit with this fee through internet purchases as well if the seller takes payment in anything other than US dollars.

None of these fees are so exorbitant that they look malicious, but they should be avoided if at all possible. Every fee you incur lessens the value of your 0% credit card and could possibly increase your APR to something you would not want.

The Cost Of A Bad Check

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Writing a bad check can really be a tough predicament. It can happen to anyone, even those who that make an effort of taking care of their money. Poor budgeting and impulsive thinking are the most common root of this financial problem. If you happen to blunder into this situation, acting quickly to resolve this problem is critical because this mistake can be costly.

While a single bad check may not be too much of a problem,

a number of them can cause havoc on your budget. You have to pay a bank fee which can range from twenty to thirty dollars or more. You may also have to pay the same price to the person or store for the inconvenience you have caused.

If your bad checks pile up, your bank account will quickly go into negative numbers and your bank may ultimately decide that you are a huge risk and close your account completely. Opening a new account will not be possible unless you repay the balance of your previous account and your bouncing check will recorded on ChexSystems alerting other banks of your infractions

Your problems can also worsen if establishments resort to legal action to retrieve their money. You may receive a call from companies that specialize in recovering bad checks, reminding you to resolve the problems with their clients as soon as possible. Bad checks will not affect only your finical situation; your reputation can also be destroyed as well. Banks will be reluctant to do any business with you and it will also diminish of job opportunities that will be available to you.

Try to avoid writing bad checks as much as you can. The problems that plague you after writing one can plague you for a long time. If an accident does happen, try to work out the problem as quickly as you can. Your future and reputation are at stake so always keep an eye out to keep your financial situation healthy.

How To Apply For Credit

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So you need to apply for a new credit card. Well, have you thought about applying for it online?

All of the major credit card issuers, and most of the minor ones, now allow you to apply via their websites. This offers a number of advantages compared with the old method of filling in a paper form and sending it by snail mail.

One big advantage is speed. Your application will be instantly received by the card company and at least some of the processing will be handled automatically.

Admittedly the card issuer will want to make certain checks with credit reference agencies to ensure that you are creditworthy, so you shouldn't expect an immediate yes or no. However, the waiting period between applying for the card and getting approval for it is likely to be as much as a week less compared with the traditional method of application.

Another big advantage of applying for a credit card on the Internet is that it is very easy to research the best credit card offers. Nowadays there are hundreds of different credit cards available, all offering different combinations of terms and incentives. It is very important to study the market carefully, therefore, rather than simply filling in the first application form that arrives in your mailbox. Independent credit card comparison sites such as http://www.finest-credit-cards.com make this easy by listing all the best current credit card offers, updated daily.

Once you have found a card you are interested in, go to the issuer's website and study all the details of their offer. Check in particular for low introductory rates, cashback offers and balance transfer deals. If you are happy that this is indeed the card for you, look for a button labelled "Apply Now" or similar. Click on this and a new page should open, with an online application form ready for you to fill in.

The details you will be asked for are just the same as when applying for a card by mail. They will include your full name, address, telephone number, occupation, annual income, and so on. You are also likely to be asked some security questions, e.g. your date of birth, social security number and mother's maiden name. These are used to help prevent fraudulent applications.

Once you have completed the form to the best of your ability, click on Submit, and click again to confirm your application if requested. If you have omitted any information or filled in any parts of the form incorrectly, you will be asked to try again. Otherwise, you will see a message that your application has been received. All being well, you will then receive approval of your application within a few days, and the card itself shortly after that.

Why Have A Credit Card

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Ask any financial advisor and they will tell you that credit cards, in general, are not a good idea. But they aren't all completely bad. The problem isn't necessarily the card, it is the way the card is used.

The average American family has approximately $7,000 to $10,000 (or higher, by some reports) of credit card debt. For most people, credit cards are a major obstacle between them and financial security. They are just too tempting. Too easy to use. And it is too hard to get out from under them.

But if you are one of the few people who have the self control to pay off your credit card bill each month -- every month -- then credit cards could have some advantages.

If you pay off your bill each month, you are basically receiving an interest free loan from the time you make your purchase until your credit card bill arrives. But the key is that you have to keep a close eye on how much you are spending, you must have the money to pay it off in full. Or you will pay interest on what you can't pay.

Many credit cards offer protection for your purchases for a certain amount of time after the purchase is made. Airline tickets purchased with credit cards often offer free life and baggage insurance during your vacation. Some provide rental car insurance. A number of cards let you earn points for every $1 you charge. Others offer you cash back on your purchases. Many of these "reward" cards can be found with little to no annual fee.

The most popular of the rewards cards are the airline credit cards. These allow you to earn points toward free tickets or other upgrades with each dollar you spend. Almost all airline cards have annual fees, but these are sometimes waived for top customers. If you have used your card a lot during the year, you can request to have your fees waived.

There are many other card programs out there -- all intended to draw customers in. There are cards that pay towards your home mortgage loan. Some will donate to your favorite charity. You can find a card linked to almost anything nowadays.

The reason that credit cards take the risk that you will take an interest free loan and pay off your bill in full is simple. First of all, anytime you make a purchase with a credit card, the store you do business with must pay the credit card company anywhere between three and seven percent of the amount charged.

The other way they stay in business is by charging credit card holders who don't pay their balance each month high interest rates. These rates are even higher for those who miss a payment.

Credit cards are banking on you not paying your balance in full. The majority of their card holders don't. They encourage you to charge by offering money transfers, convenience checks and other incentives. They want you to be surprised when you receive your bill each month at how much you owe them.

But the fact is that credit cards are only a good deal if you pay off your balance in full each month and you only buy things that you have the money for at the time you buy them.

So that leaves many advisors to ask: why not just use your money and forgo all of the trouble? The benefits to the rewards cards are so minimal, they often aren't worth the risk.

While cards are the downfall of many, if you have self-control and use them wisely, there are advantages. Many people do find that they can save money by using them. Be careful and keep track of your spending, and you should find that they not only improve your credit score, but provide many other benefits as well.

Increase Your Credit Score

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Over 30 million Americans have less than perfect credit report ratings. There are a lot of consumers out there looking to increase their credit scores.

You can tell this simply by observing how many advertisements there are out there for quick and easy credit repair. These companies are hoping that you are looking for a quick fix to your problems.

But there is no quick way to change your credit report. If it is accurate, then you can't remove the negative. No company can repair your credit rating simply by you paying them.

The rules are the same for everyone. You simply have to understand what makes up your credit rating.

Your credit score is a number between 300 and 850 that shows your credit worthiness. If you have a low score, you are at high risk for defaulting on a loan. If you have a high score, chances are you won't default. Your lenders, landlords, insurance companies and others use your credit score to determine whether or not to do business with you.

You should start by looking at your credit report. Many people have much better credit than they assume. You can receive a free copy of your credit report from each of the three major credit reporting agencies -- Equifax, Experian and TransUnion -- once a year. You can go to annualcreditreport.com for more information.

Contrary to popular belief, each credit reporting agency does not have the same information about you. You must look at all three reports. Each agency gets information from different lenders and different lenders report to different agencies. There are often mistakes that show up one one report, but not the other two. You need to look at all three to make sure they are accurate.

Once you have your credit reports, make sure all the information is accurate. If something is wrong, you need to take the time to correct the information. Once everything is correct, you can start improving your rating.

The number one thing that will improve your credit score is paying all your bills on time. This accounts for up to 35% of your credit score. Your recent payment history can have more effect on your score than your past history. This means that if you pay all your payments on time, you can improve your score in as little as a year. This is the easiest way to get a higher credit score.

It goes both ways. If you miss a couple of payments, your score will go down. Even those with perfect records can see their score drastically drop if they miss a few payments. Many credit card companies will use what is on your report to raise your interest rate. So you don't have to miss a payment to them, just to anyone who reports to the credit reporting agencies. You have to make your payments on time.

The second thing you can do is to start reducing the debt you have. The less debt, the better your score. For those of you who use credit cards for the rewards, but pay off the balance each month, you could still be hurting your credit report. The card company may be reporting your outstanding balance before you bill is paid. This shows you have debt, even though you don't. This will lower your score. So if you use your card, you should stop for a few months before you apply for a loan.

You can improve your credit score by paying your bills on time and reducing your credit card debt. That's all that will work. It won't cost you anything. Just get to work and over time, you will see your credit score increase.

Fix Bad Credit

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Don't you ever feel that's the only thing you can think of? While driving, at work, talking to people, anywhere you go your mind just fixates into "fix bad credit repair bad credit bankruptcy do it". Wouldn't you like that to stop? I know more than a couple of million people who do.

Having bad credit is terrible; it's like having a leash around your neck every time you go to a mall, look at a commercial or read an ad. There are ways to get out of a bad credit situation but they tend to be difficult, so you should be prepared.
Important Facts

Did you know that three out of ten credit reports have erroneous data on them? Yes sir. But then again, with all the amount of information that floods the three credit bureaus - TransUnion, Equifax, and Experian - one, two, or three mistakes isn't that uncommon. Plus they don't get anything for maintaining correct records. They are just being paid to maintain the necessary data, whether it's accurate or not.
Having said that, you are free to call them, review your credit reports, locate your problem, and solve them. Did you know that if you have had credit denied you are entitled for a free credit report? Aren't things starting to look better? The phone numbers are listed in any phone book or you can just ask your bank for them as well.
Act
Having bad credit isn't like having just a bad taste in your mouth; it's the real deal. Banks and any other financial institutions will look at you as a risk, making them think many times before they grant you credit, resulting in denied credit most of the times. For this matter you must begin fixing your bad credit as soon as possible.

Types Of Cards

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There are many credit card companies today just waiting to approve your credit card application. Likewise, there are a huge variety of credit cards which supposedly offering the best schemes. Each individual has unique needs so all programs and schemes would not be satisfactory to all. Investigate about the scheme that best suits you to use that card for a long period of time.

Low Interest Credit Cards

The low interest credit cards are one of the latest additions into the already wide range of

credit cards available today. If you are a US resident, you must have heard about these kinds of cards. They come with a low interest rate and allow you to transfer the balance from a higher interest card to low interest one. Moreover, your transferred balance will be held at 0% interest for a prescribed period or if not, then a very low interest rate. This can certainly save you a significant amount. Go for this option if you hope and are sure to pay it off.

Airline-Sponsored Credit Cards

Credit cards have become such a big business these days that even airlines offer credit cards to their customers. These credit cards offer a fixed amount of flyer miles depending upon the balance and transactions. If you happen to be a frequent flyer, this is a great scheme for you.

Reward Credit Cards

Reward credit cards are also becoming increasingly popular. The competition is high and each company is coming out with attractive incentives and gifts, rewards to lure you to use their card. After your points accumulate to a certain level, you will start receiving gifts. The rewards range from travel insurance to small appliances and many other kind of things. If you are among those who use the card very often, a card with a reward program is really beneficial to you.

Instant Approval Credit Cards

Instant approval cards are another kind of cards that are popular today. You apply for this card and get an immediate approval without much time to wait in between. Once you submit the application, the company does a quick verification of your background and approves your application quickly. Other normal cards usually take about two weeks to process and approve your application. Although you get instant approval, you may not be able to avail immediate credit. You might be given a temporary credit card and allowed to make purchases. However, not all companies will do this because of the risk of credit card fraud.

Investigate thoroughly before choosing a credit card. Make an informed decision with regards to choose a card that is best for you. Never apply for too many cards since that will burden you in the long run.

Repair Your Credit

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A bad credit score can really affect your ability to create the life you want. You will be turned down for loans, or given very high interest rates. Buying a house, a car, or even finding investors for your business becomes next to impossible. There are even some employers who look at credit score as an indication of your character and sense of responsibility.

So how do you improve your credit score? Ironically, one of the steps you should take is to get a credit card. It’s true: misusing credit cards can really lower your credit score…but with enough credit card savvy, it can also help you repair it. Each time you successfully pay your bill, or accumulate months or years of “clean” credit card use, then your score improves.

Of course, it may be difficult to get approved for a credit card with a bad credit score. One option is to get secured credit cards. These require you to put up collateral like a security deposit which are equal or even higher to your credit limit. Some examples of possible security deposits are cars, jewelry or stocks.

Secured credit cards will not really have very high credit lines, but that is okay. Your purpose in getting one is to improve your score, which means you should be paying the balance in full each month anyway. In fact, it is advisable that you leave your credit card at home, at least until you have your spending habits in full control.

If you need a higher credit limit (for example, if you use it to pay all your bills so you only have to worry about making one payment a month, or if you are a businessman who frequently travels) you can ask for a higher limit after you have developed a consistent record of regular payments. However, bear in mind that too high a credit limit may encourage you to rack up those charges.

Another alternative to secured credit cards are prepaid cards. Here, you determine your credit line: how much you transfer will define how much you have to spend. This is an excellent way of rebuilding your credit history and sticking to your budget. They also do not charge finance fees, but they may require an application fee. If you go over your limit, you may also be charged a fine. Always read the fine print before signing up for a prepaid card.

Responsibly using your new credit cards is a good step towards credit repair. However, it’s not the only thing you need to watch. You should pay your utility bills on time, and avoid getting any disconnection notices. To avoid late payments, enrol your bills in an automatic debit arrangement These fees will be deducted from your salary account. It’s very convenient (you don’t have to worry about writing checks or lining up at payment counters). Also avoid applying for several loans at the same time, or using more than 30% of your credit card balance.

Travel & Credit Cards

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People who travel frequently can benefit from discounts that travel rewards credit cards offer. But those who don’t travel often can find that any benefit may be offset by the high APR annual fee and other charges that come with these credit cards. These credit cards can also come in handy even if you are not the one traveling. If you have relatives who visit you regularly every year, they can also take advantage of airline and car rental perks that are offered by travel rewards credit cards.

Travel reward credit cards can be specific to airline travel, or even to one specific airline. They might also provide rewards if you pay for fuel, rent cars, stay at hotels, or if you buy from retail shops. You should consider what type of use you might make of travel reward credit cards, before you choose from credit cards offers. You should also find cards that offer the highest savings on the types of use you will often make of them.

Some travel reward credit cards offer cash advances that can be very helpful when you travel, but you should remember to inquire about the charge for cash advances. They can also provide travel insurance that includes medical evacuation, emergency expatriation, lost luggage, and other worldwide emergencies. These can be difficult to resolve if you neglected to consider adequate pre-travel preparation and purchase of coverage.

These cards may also offer points or discounts if you purchase from retail stores, although most cards do not unless you are carrying over a balance at the end of the month. Check and see if the travel rewards credit cards you are considering have a maximum limit on the monetary value on which they will offer rewards.

Try to get information about the schedule and the value of the travel rewards that these credit cards may offer. You need to know if the credit card company will send the money or do you have to wait until the end of the year to get your cash from these credit cards. A few travel reward credit cards offer Canada and U.S. round tip flights at the reward redemption value of a single round trip ticket for every 25,000 miles you purchase on your credit cards. If you want to enjoy the best benefits from these credit cards, you should compare as many offers as possible to find the most advantageous deals.

Bad Credit

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Most people do not understand the consequences of having bad credit. They believe that they can just make mistakes with their money, and one day they will wake up and everything will be all right. However this is not true. Your personal credit is one of the most important things that a person can have in life. The ability to buy a house, a car, or finance any other major purchases will depend heavily on the quality of your credit score. If you damage your credit score then you might not be able to get financing for any major purchases at all. Or if you do get financing, then the finance company will give you the highest interest rates that are allowable by law, because you will not be able to go anyway else to negotiate a better rate. Thus having bad credit will cost you more money, and get you further into debt, which will probably damage your credit rating even more. It is fairly easy to see that if you allow yourself to damage your credit, then it will be very difficult to get your credit rating back in good standing.

Once you have bad credit you will quickly realize just how damaging it can be to your finances. More than likely you will start to look for ways to get your credit rating back in good standing. You will definitely see many different advertisements that claim they can get your credit back in good standing and negotiate on your behalf. These companies are good, but they are basically doing the same thing that you can do for yourself, except that they usually charge you for their services. The charges will just make it that much harder for you to get your bad credit erased. However you can call your creditors and try to negotiate for yourself and most of the time creditors will work with you to help you get your credit back in good standing. The first thing that you will want to do is contact your creditors and try to get them to lower your interest rates, or your monthly payment so that you can make payments on time, and try to erase your debts. Then once you get your debts paid off, slowly try to reestablish your credit by making small purchases and paying them off quickly.

If you already have bad credit, there are things you can do. Bad credit is not the end of the world, but if it is not taken seriously it can definitely derail your life’s plans.

CREDIT CARD

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Over the last few years the internet has become your one stop to finding credit cards, comparing APR (annual percentage rate), rewards programs and incentives. And the best part is you can apply for all of them online and with a secure connection. Just from searching google you can find millions of credit card resources.

One of the the best ways to find a credit card comparison website is to go to your favorite search engine and simply search "credit cards" and press "enter". Now before you jump on the first one you see there are a few things you should remember when looking for a credit card online :

1. Pick a website that offers comparisons.

2. Choose a website that offers all of the banks/issuers(American Express, CitiBank, Chase etc.).

3. Make sure the website offers more details on each individual credit card.

4. Find a site that is professional and updated often.

5. After you find a few cards that interest you make sure you compare the introductory APR, fixed APR, cash advances, balance transfers and fees, bonus or award programs, cash back programs, credit limit, annual fees, etc.

One website you may find helpful is creditcards.com. CreditCards.com has a large database offering cards from, advanta, american express, bank of america, citibank, chase, discover, HSBC as well as visa. The site is easy to navigate and also tells you what type of credit rating you will need for each card. You can apply directly from the comparison page by clicking "apply here" under the corresponding card.

In essence when comparing credit cards online be sure you are looking for cards that are going to meet your daily needs. If you don't fly often then why apply for an airline credit card. If you are driving quite often and with how gas prices are these days pick a gas rebate card. Also be sure to pick a card that offers a low fixed rate. For instance some cards may offer a 0% intro apr, but 6 months later will jump to 14.99%. Lastly remember to have all of your personal information with you when you begin to fill out the online applications.

All of the above information is vital when searching for a credit card online. Be sure to remember this information when searching for a credit card comparison website and it will save you lots of money in the long run. You may also find a site you can use in the future for all of your credit card needs.