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By Sills, February 16, 2010 4:43 PM

This article was originally published on CBS Money Watch.com and was written by Bob Trebilcock.

The new federal rules for credit cards kick in February 22, preventing issuers from, among other things, jacking up interest rates as easily as in the past. Now four major credit card companies — American Express, Bank of America, Chase and Citi — are now trying to become your new BFF, with “consumer-friendly” cards.

Among the new features they’re offering: lower rates if you pay on time; the flexibility to craft your own rewards program; and the option of paying off some purchases interest-free each month. Some of the cards also have online tools and tracking systems to help you monitor spending.

Consumer-friendly offerings may seem like an about-face for an industry famous for hidden fees and encouraging customers to spend now and pay later, at stratospheric interest rates. And some banks are already finding ways to get around the new law. But with 47% of consumers saying they trust credit card companies less than they did a year ago, according to the Auriemma Consulting Group, issuers need you more than ever. “You can argue their motivation to death,” says Curtis Arnold, founder of CardRatings.com. “But we are seeing more consumer-friendly terms, new cards, and new initiatives.”

For the most part, the rates and fees for these cards are not as low as the ones MoneyWatch recently recommended in “Best Credit Cards for You,” but these new-fangled cards do offer some different features that make them worth checking out. Here’s a rundown on four new consumer-friendly credit cards to consider, with their features and downsides.

If you want to keep things simple …

BankAmericard Basic Visa is a stripped-down card designed for one purpose: making purchases with plastic. There are no rewards, no annual fee, and just one variable interest rate (now 17.25 percent) that applies to balance transfers, cash advances, and purchases. BofA guarantees that the index used to set the rate (prime plus 14 percent) won’t change. And as long as you pay on time, your rate will only rise if the prime rate does.

• Downside: Since most economists expect rates to rise this year, the Basic Visa rate is almost sure to go up in coming months. Even today, it’s about four points higher than the 13.63 percent average rate for variable cards. This is not a good card for anyone who carries a balance; instead check out a card with a lower rate.

If you always pay on time …

Citi Forward Visa is a rewards card that gives you a lower rate and more rewards points for doing what you ought to: paying bills on time and staying under your credit limit. The card starts with a 0 percent rate on purchases and balance transfers for seven months followed by a variable rate of prime plus 10.99 percent (that’s 14.24 percent today) on subsequent purchases. Every time you go three billing periods paying on time and staying under your credit limit, Citi will lower your rate by .25 percent — up to 2 percentage points over the life of the card. Based on today’s prime rate, your Visa card rate could be down to 12.24 percent in two years. To keep you on the straight and narrow, Citi lets you use an assortment of free online credit education and spending tools.

hat same good behavior pays off in rewards points, too. Normally, Citi Forward Visa cardholders earn five points for every $1 spent on restaurants, books, music, and movies and a point for every $1 spent on other purchases. But you earn an extra 100 bonus points each month by demonstrating the wise debt management noted above. Redeem points for merchandise, gift cards, and travel through Citi’s ThankYou Network.

• Downside: This card isn’t a great deal if you’re transferring a hefty balance from another card, since the interest rate givebacks don’t apply to balance transfers.

If you just want to charge big-ticket items …

The Chase Blueprint program allows you to avoid owing interest on items you really can afford to pay in full, while letting you run up a balance on expensive purchases, such as airfare or hotels. Think of it as feature that combines a no-interest, pay-in-full charge card (think American Express) with a credit card that lets you carry a balance. Blueprint is available on all of Chase’s Visa and MasterCards: Slate, Freedom, Sapphire and Ink.

With Blueprint, you separate out the everyday items you’ll want to pay in full every month, such as gasoline, dinners out, or movies. That way, you won’t owe interest on them, even if you carry a balance on other items. Chase also lets you designate a large or unexpected purchase to pay off over two billing cycles without interest, like that winter trip to the Caribbean.

And for a sizable purchase that’ll cost you interest, Blueprint can calculate a monthly payoff plan to minimize your charges. Say your refrigerator goes on the fritz, and you want to pay off the new one within a year: Blueprint will calculate how much you need to pay each month to do it and chart your progress on your statement.

• Downside: Blueprint isn’t of much value if you pay your balance in full every month. If that describes you, sign up for this program only if you like Chase’s rewards programs.

If you want to design your own rewards …

The still-in-beta American Zync card from American Express puts you in control of the card’s rewards program. It’s a little bit hokey, but it may appeal to some: You earn one point for every dollar you spend with the card and can then sweeten the AmEx membership rewards by adding so-called Lifestyle Packs (too bad they sound like condoms), which let you double points for spending in specific categories you designate. There are now four packs, with more coming. The ECO Pack, free to cardholders, pays 2 reward points for every dollar you spend with selected merchants rated “green” by Greenopia, an environmental screener. The other three Packs — “Go” for travel purchases, “Social” for restaurant, concert, and theater spending, and “Connect” for mobile, cable, and Internet services — cost $20 per year apiece and let you get 2 points for every $1 spent in their categories plus discounts when you redeem the points.

Rewards points can be carried over from one year to the next and can be traded in for gift certificates from participating merchants or applied toward future purchases. Zync cardholders also get access to American Express’s Money Manager, a financial management tool that allows you to link and monitor all your bank accounts, credit cards, investment accounts, mortgage loans, car loans and student loans.

• Bonus: Zync’s basic annual fee is just $25. So even if you pay for an extra pack, you’ll pay a $45 total annual fee, versus $95 for an AmEx green card or $125 for a gold card.
• Downside: The rewards payout on AmEx is a little chintzy. Based on American Express’s conversion rate, where 100 points equals $1 in rewards, you won’t qualify for a $100 gift card at a participating restaurant until you’ve spent $5,000 on restaurants, concerts, or theater tickets.

Watch a video with more information at CBS MoneyWatch!

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By Sills, January 29, 2010 3:23 PM

As a result of pre-recession easy credit and the sobering effects of the recession, many Americans have become overextended and feel like they are in over their heads with personal debt. The mix of credit cards, medical bills, personal loans, and raising interest rates make it challenging to stay out of debt in difficult financial times.

If you are risking financial ruin, the first advice experts give is to make sure you don’t make your situation worse by making common mistakes. In particular, these are five strategies you may want to avoid:

1. Many people pay the minimum payments on their debts hoping to stay afloat. However, this will result in your overall debt actually growing, and your problems will only become worse.

2. People in financial trouble need to beware of relying financially on friends and family, as this reliance could later damage relationships with the most important people in their lives if you are unable to pay off loans.

3. Be cautious of unscrupulous credit counselors that demand cash upfront or high fees for help they promise, but do not deliver.

4. Avoid taking out a new high-interest loan in order to pay off lower interest rate loans. While it may be easier to just have one payment, it will actually increase the amount you have to pay back.

5. While declaring bankruptcy may be the correct route if you’re experiencing extreme financial hardship, debt settlement may work for you if your situation is less dismal but you are behind or falling behind on your minimum payments.

Because bankruptcy is a serious step with long term implications for you and your financial future, most experts would suggest filing bankruptcy only as a last resort. Before you take the plunge into bankruptcy, you can attempt to work through your debt issue with your creditors, and this is where debt settlement companies can help. Debt settlement is the process of negotiating with your creditors to get them to forgive a potion of your debt. Because the two common solutions people turn to when they are risking financial ruin are debt settlement and bankruptcy, it is important to understand which the better route is for you.

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About the Author

This article was contributed by bankruptcy Attorney Jonathan Ginsberg, our expert bankruptcy contributor whose website can be found at: http://www.thebklawyer.com/thebkblog/

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By Sills, December 30, 2009 8:20 PM

Jewelry, electronics, your car – in the past, if a thief wanted to rob you they stole your valuable possessions. But in today’s information-based world, there’s something even more valuable that thieves can take from you: your identity.

Armed with personal information such as your Social Security number, credit card number, name, and address, an identity thief can drain your bank accounts and commit fraud in your name. It is possible that you won’t find out you are a victim until the thief is long gone.

More than 15 million people become victims of identity theft every year. An identity is stolen every two seconds in the United States – the fastest growing crime in the U.S. for the past four years.

How Identity Theft Happens

Your identity is one of your most valuable possessions. Your Social Security number, bank account numbers, and personal information are all a thief needs to commit identity theft.

How do thieves get your personal information? They use every trick in the book – and they’re constantly coming up with new ways.

Mailbox Raiding & Dumpster Diving

Mail from banks, institutions, and even new credit card offers contain valuable personal information which identity thieves can use to drain accounts and open new credit cards in your name. They get the information by stealing mail right out of your mailbox, or as in the case of dumpster diving, out of the trash after it has been thrown out.

Phishing

If you’ve ever received an email from a “bank” or other financial institution asking for account information, thieves could have been phishing for your identity. (The word is derived from “fishing,” because the emails are like bait.) Clicking on their link will send you to a site that looks the same as the actual institution, but actually belongs to the thief. When you enter your information, the thief has won.

Vishing

A combination of the words “voice” and “phishing,” vishing is like phishing, except the thieves use the phone instead of email. They may leave a message pretending to be your bank or some other company. When you call back, they’ll take your personal information.

Medical Benefits Fraud

Increasingly, thieves have started seeking treatment using another person’s name and medical insurance information. They can get it by stealing your wallet or hacking into a doctor’s or hospital’s computer system.

Spyware

Spyware is a malicious computer program that installs itself on your PC and then allows thieves to record your personal information – like a credit card number, password, or Social Security number.

Skimming

Skimming is a way for a thief to get your ATM or credit card information by installing their own card reader on an ATM machine. When you pass your card through the skimming device, it records your card information.

Corporate Data Breach

Trusted businesses, like your employer, your local bank, and other organizations have a great deal of your personal information stored on their computers. Thieves can gain access to this information by hacking into the network, by posing as a business partner, or after an employee loses a computer, disk or box of files.

Are you on Facebook and MySpace?

Social Networking Sites

Identity thieves are using social networking sites like Facebook and MySpace® to find out your personal information. They use the information they find on the site to pretend to be someone they’re not and coax other information out of you – like your Social Security number.

Child Identity Theft

Child identity theft works the same way as it does for adults: the thief acquires a child’s personal information, and then creates fraudulent accounts in their name. But because children usually don’t have financial accounts until they are older, no one may find out about the theft for many years, allowing the problems to be greatly compounded.

Senior Identity Theft

Seniors are particularly vulnerable to identity theft, because most have significant accumulated wealth, and are often unable to monitor their accounts carefully. Many are also less knowledgeable about technology, and more trusting of strangers and marketers, increasing their vulnerability.

Student Identity Theft

College students are another high-risk group. School registration days and frequent unsolicited offers for new credit cards provide many opportunities to share personal information and Social Security numbers. Combine that with frequent address changes and unforwarded mail and it’s a group ripe for picking by identity thieves.

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By Sills, September 21, 2009 5:21 AM

We live in a world where our entire credibility is dependent on our credit score. It is scrutinized whenever we go for a loan, a job, and a home rental. People with a good credit score are seen as a good risk for credit cards, loans and so forth. Landlords may determine your ability to pay your rent by examining your credit score. There are some jobs where a good credit score is seen as important and it also means you are more likely to be able to pay your bills.

Without this good credit score, the opportunity of buying things you want or need is more difficult. Sure, there are lenders who will let you borrow but at an extremely inflated interest rate.

So, as you can see, having a good credit score is very important. However, if you have a bad credit score, there are ways to fix it. This needs to be done as soon as possible and there are a number of ways to go about it.

One of the most important things is to stop your bad credit before it gets any worse than it already is. If you pay your overdue debts, it will cut off the bad credit reports. Although it won’t make your credit score any better, it will put you on track to fix your credit history.

Open a new bank account and apply for a secured credit card. This will be at a higher interest rate but that will control your spending and raise your credit score. Pay your credit card bill on time every month and your credit score will rise significantly.

Following the above advice will eventually lead to an improvement in your credit rating but your past credit history will still remain for around five to seven years before it expires. It all takes time but, if you are patient and diligent, you will see your credit score change.

If you make positive steps, your creditors will pass that information on to credit reporting agencies. If you always pay your loan payments and credit cards on time, you will get a good credit rating. This also applies to utility bills, rent, and so forth. You will eventually have a good credit rating so it’s worth the effort. Future financial opportunities could come your way and you wouldn’t want to miss out because of a poor credit score.

Anne is the owner of two websites http://www.ebooksbargains.com which has a huge range of books on a variety of subjects and http://www.therepairables.com that is a site which can help you in times of financial problems.

Author: A. Wolski
Article Source: EzineArticles.com
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By Beth Pardue, September 21, 2009 5:21 AM

Thanks to the Internet, it has never been easier to receive and submit credit card applications. It can be very tempting to fill out all of the online forms available to you. But be careful, it could end up costing you–consider the following issues before hitting that “send application” again.


Be aware of card offers promising “pre-approved” credit. You may be a prospective customer, but you still have to apply for credit. Each time you apply, the card company obtains a copy of your credit report. All these credit card applications count as inquiries that, if concentrated over a short period of time, can negatively affect your credit score


With online credit card applications, you should also consider the security of your personal credit information. Take Security and privacy concerns seriously. Limit your online application to card companies that use industry-standard practices for security and privacy. Look for 128-bit encrypting, which scrambles your application data and requires a de-scrambler to read it.


Additionally, the card company’s Web server should use Secured Sockets Layer (SSL) technology. Look for an online application on a secure screen of the Web site. This is usually identified with a padlock or similar icon, or has a URL that begins with the word “https.” The company should also clearly state its privacy policy for handling your financial data.


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About The Author
This article was written by Beth Pardue who has over 10 years of experience in the financial industry assisting clients with assorted financial needs. To learn more about credit reports or to get a free credit report online please visit: http://www.credit-report-credit-score.com

Author: Beth Pardue
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By Sills, September 21, 2009 5:21 AM

There will come a time in everyone’s life that they need to borrow money for a major purchase such as a car or three-bedroom/two-bath home in the suburbs. Having a high credit score and excellent credit history will allow you get the best possible interest rate and the most advantageous loan terms on your automobile loan or home mortgage, so you should begin improving your credit score now. One of the most effective ways to raise your creditworthiness is to use a few credit cards wisely to prove your ability to manage your finances.

First, get one or two credit cards if you don’t already have one. Avoid getting a lot of them, though. It may seem like having several cards with little or no balance is better than having one or two, but opening too many accounts (especially over a short period of time) is not wise. Lenders view this in a negative way, and the credit bureaus decrease your overall score.

Next, use your credit cards. Some people mistakenly believe that just having the credit card is enough, but a credit card that sits in the kitchen junk drawer does not help your rating. The idea is to show that you can use credit and pay it off. That shows responsibility.

Finally, check your credit report on a regular basis to make sure the information it contains is accurate. When you work hard to keep your credit history solid, you don’t want errors to ruin your efforts.

Check Out our Blog For More Informative Articles! Credit Repair Facts is a must.

If You Can Read and Write at The 5th Grade Level I Can Show You How to Raise Your Credit Score Up to 249 Points in 90 Days! Raise Your Credit Score Now is the place to visit.

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By Sills, September 21, 2009 5:21 AM

By: jensholz@gmail.com

When it comes to choosing a credit card, you have many options to consider as a means of achieving your goal. Ultimately you want a credit card that is the cheapest, and that gives you the most flexible terms and conditions. However, judging those two factors can be difficult for those of us that are not credit card experts. Before you decide for sure that you wish to get a credit card, why not consider the alternatives that are available?

The Alternatives

Debit Card should you want a credit card as a means of ensuring that you can pay with a card, then why not consider getting a debit card instead? This will mean that you are not borrowing any money and that they money is coming out of your bank account.

Bank overdraft you should consider using a bank overdraft if you are wanting to borrow money over a longer period of time, as you may find that it will work out cheaper than a credit card. A bank overdraft is basically like a loan of money, however all it means is that you are allowed to have a negative balance in your bank account.

Bank Loan a bank loan is often the best solution when you need a loan of money over a longer period of time, or if the amount you need to borrow is a larger amount than what a person would usually borrow using a credit card or a bank overdraft.

Friends and Family if you want to borrow money, then you could consider asking your friends and family rather than asking a financial institution. Although many people are in a position where they are not able to do this; some are, and if they can, then it can often work out to be a good solution.

Factors to Consider when Choosing a Credit Card

APR when choosing a credit card, one factor you need to look at it APR. APR is the amount of money that you will get charged for borrowing money. This amount means the interest rate that you will be charged over the course of a year, and is usually presented in percentage form.

Limit this is the amount of money that you will be allowed to borrow. When you reach the limit on your credit card, then that is you; you are back to having no money. Despite that, limits can often work well for ensuring that you keep any debt under control.

Credit Rating if you always pay your bills on time, then you will most likely have a good credit rating. If you manage to always pay your bills on time with a credit card, then this will also help to make you look like a person who is more than capable of sound financial management. Because it is important to keep a good credit rating, you should always do whatever it takes to keep your credit rating as good as possible.

About the author:
Jens Kleinholz is a president of pollera. He writes about billig Kredit and schufafreier Sofortkredit.

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By Sills, September 21, 2009 5:21 AM

Credit Scores are so important because they are used for everything today. They determine the interest rate on loans; auto, personal and mortgages. They determine the premium you will pay for auto insurance etc.

How do you build an excellent credit score? There are three important factors that build you score.

1. History – your payment history is an important part of building your credit score. The credit bureaus monitor the amount of delinquencies (past due accounts) you have. It is very important to make your payments even if it is the minimum on time. Judgments and collection accounts will have a larger impact on your score; the drop in points will be substantial. Medical collections are seen on credit reports all the time usually for small dollar amounts. FYI: If the collection agency is not updating the file it is recommended to leave it alone. From what I have learned if it hasn’t updated in six months it is no longer impacting your score. If you now pay that debt it will re-active the history and effect you score. I’m not saying don’t pay the debt because it looks better in the long run that it is paid when applying for a mortgage it will need to be paid. I’m saying if it is small amount to pay it in full because if you are making payments the negative history will start reporting again.

2. Length of Credit – this makes up a good portion of your credit score. If you have no credit score and are just starting out it takes at least six months of good payment history to establish a credit score. When starting out do not go out applying everywhere in town since the inquiries also affect your score and you do not want to have excessive inquires on your report. Try not to take out a lot of new credit all at one time since this will affect the history and make it look like you have all new credit.

3. Capacity – this is about 35% of your credit score and often the most misunderstood. Capacity is were they look at your revolving credit limits (credit cards, overdraft, HELOC etc) and compare the balances that are carried. For example if you have 10 credit cards with $10,000 line each and you carry a balance of about $500 a month you will have about 90% capacity available giving you a higher score. If you have one card with a $1000 limit and you carry a balance of $900 every month you will have about 10% capacity giving you a lower score. This is very important: DO NOT CLOSE CREDIT LINES! If you are disciplined and do not use the credit limits given to you do not close them. Closing them can decrease your capacity therefore decreasing your score.

This is a simple explanation on how a credit score is built. Please pay close attention so you too can have an excellent score and get the low interest rates you deserve.

By Lisa Burkhardt is Editor of http://12546bc.NewCreditApplications.com and http://www.work-home-today.com – great resources.

Author: Lisa Burkhardt
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By Sills, September 21, 2009 5:21 AM

First-person accounts from mortgage professionals

Douglas Muir, CEO, Credit Justice Services

As published in Scotsman Guide’s Residential Edition, September 2009.

As the owner of a national credit-repair company, I have had to surmount much criticism. I feel for the mortgage industry and the bum rap it has received of late — but the credit-repair business often receives an even worse repute and is sometimes painted as illegal and even evil.

Fighting labels such as “scam artist” and “liar” can be tough, but honest and transparent communication can help do just that. I also believe that educating clients — and making sure to educate myself — makes a big difference.

In 2007, when discussion had just begun about the since-passed Credit Cardholders’ Bill of Rights Act, I was invited to visit with staff members of Sen. Carl Levin’s (D-Mich.) office to speak about the three major credit bureaus and credit cards.

After noting a 2004 Massachusetts Public Interest Research Group study that showed 79 percent of credit reports contain inaccurate information, I challenged the group to allow me to pull credit reports on several individuals. One intern volunteered for the sampling.

When we pulled his credit report, he was shocked to discover the report indeed contained inaccurate information. His tri-merge report showed a late credit card payment that he said he made on time. The score also was 60 points lower than that of a free report he had pulled days earlier.

As we discovered these things, I told the group about consumers’ legal rights and how the Fair Credit Reporting Act empowers consumers to control their credit information. The law states that the three major credit bureaus must prove consumers’ credit reports to be true and accurate. If the reporting bureau can’t verify the information, it must be removed.

It was an honor to speak with the senator’s office and to participate in a small way with the passing of the Credit Cardholders’ Bill of Rights Act, which President Obama signed this past May. The act, which is set to take effect in February, is designed to prevent universal default, a practice in which banks raise consumers’ interest rates based on their payment behavior on other, unrelated accounts. It also will prohibit banks from randomly changing the terms of consumers’ existing contracts and will allow card-holders an opportunity to cancel cards or pay off accounts if a legitimate reason justifies an interest-rate hike.

The act also will help consumers avoid sudden hits to their credit scores resulting from lowered limits, which can create a balance greater than 40 percent of available credit and cause a credit score to drop significantly.

In essence, the bill gives U.S. citizens an important voice — their own — when it comes to credit-report fairness. It also will assist mortgage professionals, who share the goal of helping consumers fulfill their dreams of new, ongoing and secure homeownership. By confirming consumers’ rights, the Credit Cardholders’ Bill of Rights Act will provide consumers protection from banks that in the past raised rates at their whim. For mortgage brokers, this should mean fewer surprises during the loan-approval process.

As the economy continues to struggle, first-time homeowners face a tight credit market, and many existing homeowners struggle to avoid defaulting on difficult mortgage payments. Mortgage brokers and credit-repair specialists should team up to provide these consumers advice and guidance.

One way to best serve clients is to educate and inform them about their rights, choices and options. A client empowered with information is more able to make informed decisions and more likely to think of brokers and credit-repair experts with esteem rather than with contempt. As we move forward, I think brokers and credit experts can agree that our mission is to create financially independent consumers who enjoy the comfort and security of homeownership. Together, we can do that better.

Douglas Muir is a credit-industry expert and CEO of Credit Justice Services. He speaks to mortgage professionals internationally about the importance and effects of credit. Since opening in 2004, CJS has helped more than 18,000 consumers improve their credit scores, and the company is the fourth-largest credit-repair company in the U.S. Contact Muir at (904) 757-0880, dmuir@creditjusticeservices.com or www.creditjusticeservices.com.

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By Sills, September 21, 2009 5:21 AM

There’s a lot of confusing information about credit scores out there. There are people out there who believe that they don’t have a credit score and many who think that their credit score doesn’t count for much. Your credit score can spoil your chances of getting some jobs, of good interest rates and even your chances of getting some apartments.

The fact is if you have bills and a bank account then you have a credit score and your credit score matters more than you might realise. Your credit score is may be refered to by a number of other terms, including a credit risk rating, a credit rating, a FICO rating, a FICO score or a credit risk score. All these terms refer to the same thing the three-digit number that allows lenders get an idea of how likely you are to repay your bills.

Each time you apply for credit, apply for a job that requires you to handle money, or even apply for some more exclusive types of apartment living your credit score is checked.

In fact, your credit score can be checked by anyone with a legitimate business and reason to do so. Your credit score is based on your past financial responsibilities and past payment records and credit and it provides potential lenders with an easy snapshot of your current financial state and past repayment habits.

Your credit score lets lenders know fast how much of a credit risk you will be. Based on your credit score lenders decide whether to trust you financially and give you better rates when you apply for a loan. Apartment managers will decide whether you can be trusted to pay your rent on time. Employers will decide whether you can be trusted in a high responsibility job that requires you to handle money.

There’s quite a bit of misinformation circulated about crdit scores especially through some less than scrupulous companies who claim that they can help you with your credit report and credit score, for a fee of course.

Advertisements and suspect claims can mislead you to the point where you may come away with the idea that in order to boost or fix your credit score, you will have to pay a company or leave credit repair in the hands of the so-called ‘experts’. This is not necessarily the case. It is possible to bring down debts and boost your credit by yourself with no expensive help at all.

About the Author
Credit repair, Debt problems, need a Loan, Mortgage help not sure what to invest in thisGeneral Finance Guide may have the advice you’ve been searching for. Hundreds of useful articles on all aspects of Finance are available to help.

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Credit Score An Introduction

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By Sills, September 21, 2009 5:21 AM

Understanding every detail of information on the credit report is an important step to repair your credit score. Your credit report carries free credit score that the lenders look at before finalizing their lending decisions. A good credit score means that you can easily qualify for loans and credit products at low interest rates and attractive terms. Conversely, bad credit rating means that the lenders will stay away from you and even if they offer credit, that would attract high interest rates.

If you are having a negative credit rating, you need not worry because you can repair your credit legally on your own or with the help of legal credit repair companies. Moreover, you still have a chance of getting a loan with credit score that is not good because all creditors have their own guidelines of granting credit. Some lenders have special loan and credit products for people with bad credit. Still you should try to improve your credit rating and take steps to improve your credit legally because a good credit rating can help the lenders to offer you loans and credit at better terms.

The Myth and Reality of Fixing Credit Rating

Some credit repair companies lure you and convince you that they can help in credit repair by fixing credit ratings. You should remember there is nothing such as fixing credit rating. No matter what a credit repair company may offer you, the fact is that nobody can remove any up-to-date legal and accurate information from your credit report.

The credit repair companies can at best help you removing the errors and mistakes from your credit reports. A legal credit repair company can help you with debt consolidation and other legal means for debt reduction and credit repair.

If you find there is any incomplete or inaccurate information in your credit report, you can request for an investigation and take remedial measures on your own. You, as a consumer, have the full right to ask for an investigation of your credit report and fix the errors legally and that too without any monetary cost. If you do not have time for the same, you can take help of legal credit repair companies who can help you with necessary steps for how to repair your credit legally.

Self-credit Repair

For self-credit repair through legal means, you need to get the copies of your free annual credit reports from the legal credit reporting companies. Read and go through the credit reports thoroughly and check if there is any erroneous information on the credit reports. Any inaccurate or incomplete information in your credit report can inadvertently affect your chances of obtaining loans, insurance, job, house on rent etc. Therefore, it is well worth to inform the credit reporting companies about the errors with documentary proofs and get them corrected. You can legally challenge the wrong entries in writing.

The Federal Trade Commission is always there with you (the consumers) in providing assistance for your legal credit repair. The FTC maintains an online database of all civil and criminal law enforcement agencies in US. It can steer you for the help you may need for your credit repair. In this way, you will notice that you are slowly repairing credit rating.

Keep patience and make smart budgeting decisions. This way you will eventually be able to pay your creditors on time and prove yourself suitable for credit. This is a slow but effective way to repair your credit legally. This approach of credit repair on your own is far successful in the longer run as compared to engaging a credit repair company that indulges in illegal means for fixing credit rating.

About the Author
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Tips on How to Repair Credit Score Legally

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By Sills, September 21, 2009 5:21 AM

A credit card that can be gotten with a poor credit rating is known as a bad credit card. These cards give those with bad credit a chance to improve upon the credit rating they have. For those people the cards act as a rescue like this. Those that were unable to control past spending urges will find these bad credit cards provide needed training.

Secured credit cards are what these bad credit card cards are called. The person is required to open an account that maintains a cash balance with the supplier of the card in order to obtain one. What is the reason for this? Credit card suppliers are in business and they find it hard to trust someone that has not fulfilled payment obligations in the past. Profits are what business is all about and profits are put at risk by this. The balance on the account will normally earn interest from the bank or company providing the credit card. This should be checked with the company providing the card. The cash balance in the account will be the deciding factor of the credit limit that is placed on the credit card for bad credit and it is normally fifty to a hundred percent of the balance of cash. Debit cards are another name these bad credit cards are known by and this gives credit to the fact that they are more a debt giving item than a credit giving item.

The market has numerous bad credit cards available. There are four things in particular that need to be taken into consider when looking for a credit card for bad credit that is suitable for you. The amount of the minimum balance that the bank requires you to keep, how much credit (what percent of the balance will be available for spending on the secured card), any fees involved in the obtainment of the card and how much interest will be earned from the account balance. No fees or other charges will be associated with the perfect credit card for bad credit and the smallest amount possible or a zero minimum would be required to be maintained. The credit limit will also be anywhere from ninety to a hundred percent of the balance. A decent rate of interest will also be offered on the ideal credit card for bad credit.

The concept of bad credit cards is good for those that have a poor credit rating by allowing them relief by allowing them to partake in the benefit of credit cards to improve credit standings.

Nick Makaryk is an Internet Publisher, Copywriter, and Founder of Best Credit Cards A Free consumer credit card comparison site helps consumers find the Best Credit Card while avoiding high interest rates, charges, and fees.

Author: Nick Makaryk
Article Source: EzineArticles.com
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By Sills, September 21, 2009 5:21 AM

One of the most significant factors in your credit score besides your payment history is how much you owe in relation to how much credit you have. This accounts for 30% of your credit score. However, the amount you owe is not simply the total amount of debt, it’s your debt in relation to how much credit you have. This is referred to as the credit-utilization ratio.
The credit-utilization ratio is a key factor in determining how you manage credit. The lower the ratio, the more you are viewed as a responsible credit user by creditors. Canceling a credit card can significantly raise your credit-utilization ratio and in turn lower your credit score.

For example, let’s say you have $10,000 in credit on 3 credit cards and have a total amount of debt of $2500. Your credit-utilization ratio would be 25%. If you cancel one of your cards that has a zero balance and a credit line of $5000, your credit-utilization ratio would increase to 50%. The higher ratio would lower your credit score.

If you are having problems with debt, then canceling a credit card can help by eliminating the temptation to increase your debt. While canceling the credit card may lower your score in the short term, the benefits of not increasing your debt and paying down your current debt will go a long way to helping increasing your credit score in the future.

Additionally, if you do decided to cancel one of your credit cards to help you better manage your debt, cancel your newest cards first in order to avoid getting doubly dinged on your credit score. Canceling older credit cards can hurt you because the length of your credit history matters in calculating your credit score. If you cancel your older credit cards first, then you decrease your credit history. However, if you are not using the older card, then canceling that card can be beneficial if you are paying an annual fee. You’ll save the annual fee and also not have a credit card around that you’re not using, which might help protect your privacy and the potential for theft.

Remember, your credit score is a reflection of how you manage your credit. By adopting good credit and money management skills, you won’t have to worry about your credit score. Pay your bills on time, don’t be too liberal with the amount you spend on your credit cards, and be aware of just how much debt you owe will go a long way in managing your credit.

For more ways on how to save money and manage your debt, go to Credit Managment 101

The author runs Credit Management 101 – a website dedicated to issues concerning debt and credit management. Learn about responsible credit management, your credit score, debt management plans and credit counseling. Also find ways to save your money by maintaining a livable budget that reflects your means.

Author: Robert Livingston
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By Jess Peterson, September 21, 2009 5:21 AM

If you are a college student, you probably have already heard about student credit cards. These credit cards work in the same way than regular credit cards do, but they have also some advantages that you should get to know if you have ever considered applying for a credit card.

Why To Apply For A Student Credit Card?

College students have many and unique financial needs. A regular credit card could suit these needs, but there are many requirements that financial institutions ask their candidates to accomplish before applying for credit cards.

Student credit cards are easier to obtain. Of course there are a few requirements to accomplish and documentation has to be presented as well as for regular credit cards, but it is a lot more simple to fulfill those requirements.

Advantages Of Applying For Student Credit Cards

First of all, you should have an employment with a fix income to apply for a regular credit card, and, if you are a full time student you know this is not always possible. Student credit cards are, as their names say, designed specifically for students. You do not have to be an employee to apply, and unlikely regular credit cards, there are no annual fees to be paid for this kind of cards. There are certain charges you will have like interest and maybe a small fee, but these charges will always be lower than those of regular cards.

Another good point to mention is that you can access to the different rewards or gifts that financial companies offer, as well as if you had a normal credit card.

Many financial companies offer for student cards owners as well as for normal credit cards owners, the possibility to access and manage their accounts online.

Where To Obtain A Student Credit Card

Although you may have received different credit card offers so far, Internet is still the best tool you have to look for your first card, you may also ask your friends and relatives which were their options and what did they chose.

Different financial companies, offer different student credit cards plans. First, try to determine what are you looking for, if low interest, a good reward program, student benefits, lower fees. And then you will be able to find and compare among those options you have, which student card suits your needs best.

How Can A Student Credit Card Help To Build Your Credit Score?

A student credit card may be the first step you give in building your credit record. This may not seem very important for you today, but you must have present that a good and well constructed credit history will turn into a car loan, mortgage, or any other loan type you may need to ask for in the future.

A Few “Always” Rules To Follow To Get A Good Credit Record

Always remember that your card should help you with your college’s needs. Do not blow your credit doing unnecessary shopping.

Always keep record of your purchases. Making a list and comparing the amounts when bills arrive, will prevent you of paying for things that you have not bought or paying twice the same purchase.

Always try to be on time and pay your bills in full, this will give you extra points in the future and keep you off extra charges due to late payments. At the same time, this may help you to start being a responsible adult.

Jessica Peterson is a Personal Loan Consultant with more than twenty years of experience. For more information about Personal Loans for Bad Credit People Guaranteed Credit Cards, Unsecured Loans, Fresh Start Loans, Debt Consolidation, Student Loans and others please visit http://www.yourloanservices.com

Author: Jess Peterson
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