Credit Card Quick

What to Expect from Debt Consolidation Programs

Credit Repair

If you have debt up to your eyeballs and you want to avoid bankruptcy at all costs, you may have considered using the services of a debt consolidation company.

There are a number of debt consolidation programs available, so finding a reputable company that will help you negotiate lower payments and terms on your credit cards may be a tricky maneuver.

It is therefore extremely important to find a non-profit, debt consolidation company that will help you consolidate your credit card debts into one, manageable payment. Here are a few tips to help get you started:

• Gather all your credit card debts together and consider whether they have become too much too handle. Entering into a debt consolidation program will lower your credit score, so make sure you are not jumping into a debt consolidation without first exhausting all of your other options. You may try consolidating your debts on your own or negotiating lower payment terms with your creditors, for example.
• Don’t be afraid to ask plenty of questions when researching a debt consolidation company. Verify their credibility through your local BBB and ask for a list of referrals, if desired.
• Keep up to date with your creditors through the debt consolidation process. In other words, make sure that the bills are getting paid on time and in full, according to your debt consolidation program.
• Expect to see the program through to completion. If you decide to abandon your debt consolidation program, expect all of your creditors to once again start asking for their money. A debt consolidation program will only work if you see it through to completion.
• Consider taking a credit counseling course. Credit counseling courses are ideal for individuals who are afraid that they will find themselves back in a financial bind after their credit card debt consolidation program ends and they begin spending like they once used to again. Take a cue from your past mistakes and make a point to learn from them and move forward towards a more positive financial future.

Have you Performed a Credit Card Check-up Lately?

Credit Repair

Most of us make a point to go to the doctor every year for our annual checkup. But when was the last time you performed a financial checkup on yourself?

Our finances are an incredibly important part of our lives, whether we like it or not. And credit cards, for many of us, can either make or break our financial health. With that said: when was the last time you checked up on your credit cards? Are they working for you?

Dealing with credit cards, especially in this economic climate, should be on the top of our priority list; unfortunately, though, many of us spend on our credit cards without giving any thought to the money we could be losing. Because of this, it is important to review your credit card situation at least on an annual basis so that you have a greater hand in your financial health. Here’s what you’ll need to do:

• Order a copy of your credit report – Before you even begin looking into your credit card situation you should order a copy of your credit report. You can order a copy of your credit report from all three major credit reporting bureaus once a year, free of charge, so take advantage of this privilege. Once you have the credit report in front of you, carefully read it and immediately contact the appropriate credit reporting agency if you find any errors or discrepancies.
• Review all open credit card accounts – Your next order of business should be to carefully review all of your open credit card accounts. Carefully reread each of the card’s terms and conditions, and review the APR and related fees associated with each card.
• Close, transfer balances, if necessary – If you find that your credit card company isn’t giving you the best deal, contact them immediately and negotiate better terms. If you are unable to negotiate terms to your liking, consider closing the account and transferring any balance you have onto a different credit card. Pay close attention, however, to any balance transfer offers, as they often come with their own share of fees.

Essential Tips for Rebuilding your Credit after a Bankruptcy

Credit Repair

Make no doubt about it, bankruptcy will destroy your chances of getting any type of credit for quite a few years. However, after your bankruptcy is discharged it is time to begin rebuilding and reestablishing your credit.

There are certain things you should do and certain things you shouldn’t do, however, when it comes to making the right moves regarding your credit:

• As soon as your bankruptcy is discharged, apply for at least two credit cards. It is important to understand that you will likely qualify for traditional, unsecured credit, so you may have to first start with a couple secured credit cards. Secured credit cards, while they act the same regarding the rebuilding of your credit, are different because they require a cash deposit equal to your credit limit. Just like a typical credit card, you will be expected to pay the bill each month; if you fail to do this, the credit card company can then use your cash deposit to pay the bill and close your account. Your payment history with your secured credit cards will be vital when it comes to reestablishing your credit, so take these seriously.
• After about 12 to 18 months of making regular payments on your secured credit cards you can then attempt to apply for an unsecured credit card. At this time, you will have likely established a good credit history using your secured credit cards. Avoid opening too many new credit card accounts at once, though, as this could lower your credit score.
• Avoid closing any credit card accounts, regardless of whether you spend on them or not, as a good portion of your credit score is made up of your available credit. The more credit accounts you have open, the higher your available credit.
• Make purchases on your credit cards each month, but also make a point to pay them off in full when the bill comes. Adopting this responsible habit will allow you to enjoy the benefits of good credit without becoming overwhelmed with credit card debt.

The Top Three Reasons why Credit Card Balances Spin out of Control, And What You can do to Stop it

Credit Repair

You thought you had a good grip on your credit card usage. But then, before you knew it, you were staring at a maxed out credit card and no way of paying it. What happened?

For many of us, spending on our credit cards is not a well thought out decision. We spend – often carelessly – and simply assume that we will pay the bill at some later point in time. However, when that time comes, we often find ourselves short on money and in deep with credit card balances.

Don’t let yourself become yet another credit card statistic. Instead, make it a point to become more aware of your spending so that you don’t find yourself in over your head in credit card debt.

Here are the top three reasons why our credit card balances spin out of control:

1. We don’t pay close attention to our credit card statements – The next time your credit card statement arrives, make it a point to take the time to carefully read the statement. It is much easier to ignore the mounting charges when you simply tear it open and write a check for the minimum payment amount. Simply becoming more aware of your spending can turn your shopping habits around.
2. We fool ourselves into thinking we’ll pay it off soon – Did you ever charge something expensive and fool yourself into thinking that, although you don’t have the money now, you’ll pay it off down the road? For most of us, counting on future income is the wrong move to make. Don’t bet on future earnings to pay off your credit card balances because, chances are, you will be faced with other expenses that must be met and your credit card balances will be left neglected.
3. We carelessly spend – It is common knowledge that people simply spend much more when they have a credit card in their hands. The allure of buying what you want and not dealing with the payment now is very attractive to many people. If you find yourself carelessly spending on your credit card, make a list before you leave the house and stick to it. Also, take a moment before checking out and consider whether you really need to purchase that particular item. Just a few minutes and a little thought can save you from overspending.

What you need to know about Secured Business Credit Cards

Credit Repair

Most of us are aware of secured credit cards for consumers. However, with the recent climate of tight lending standards, many businesses are now taking advantage of secured credit cards.

Securing the Money you need for your Business

If you own a business that fell on hard times and as result your business now has poor credit and a bad credit history, your ability to obtain a line of credit may be near impossible. As such, you may have wondered if you can get the extra cash necessary to keep your business running by using a small business credit card.

However, once again, your low credit score will probably inhibit you from receiving a small business credit card.

Rebuilding your Business Credit

If you are in desperate need of a way to rebuild your business credit so that you can once again enjoy the benefits of small business credit cards and lines of credit, then you need to consider obtaining a secured business credit card.

A secured business credit card is one of the easiest ways to build your business’ credit card history back up again. In short, a business credit card may serve as a practical tool for rebuilding your credit. A secured credit card will enable you to prove to creditors that you have established disciplined financial habits. It will also give your credit score a much-needed boost.

Although it may be a bit inconvenient to use a secured credit card because it is necessary that you provide the creditor with a deposit in the amount of your credit limit, if you charge purchases and continue to make timely payments your credit score could start to improve in as little as a few months.

Don’t assume that all secured credit cards are alike, though. It is necessary to research your secured business credit card options before applying for one. There are many websites that will compare secured business credit cards, side by side, to allow you to view different secured business credit cards, as well as their APR, terms and conditions.

How to Best Deal with Credit Card Debt Collectors

Credit Repair

Unfortunately, credit card delinquencies are the sign of the times in which we live. With high unemployment rates and homes in foreclosure, many individuals have found themselves in the unfortunate position of being late on their credit card payments.

And with late payments, as we all know, comes credit card debt collectors. If you are in over your head with credit card bills and credit card debt collectors have begun calling you, here’s what you need to know:

• Ask the debt collector to validate the debt. Under law, credit card debt collectors must send you your debts in writing if you request it. Wait until you have received the debt validation and you have reviewed it before you begin to make payment arrangements.
• Understand that, under the Fair Debt Collection Practices Act, debt collectors are not allowed to contact you before 8AM or after 9PM. In addition, they are not permitted to use any profanity or make any threats against you. If anything like this has been happening, immediately contact the FTC to file a grievance.
• You have the right to request that all future correspondence between you and the creditor be done in writing.  Under law, the creditor must abide by your request. This can put an end to those phone calls every day.
• Ever time you have contact with the debt collector, take down notes. Keep any voicemails or letters from the debt collector, and write down the times, dates and the name of the person you talked to.
• Once you have established a set of guidelines with the debt collector, begin working with them to arrange a payment plan. You may also be able to negotiate a lower payoff amount than you currently owe. Regardless of whether you pay off your debt in full or settle the debt for less you will experience a good hit on your credit score; therefore, it is often in your best interest to negotiate a lower amount. Most importantly, don’t agree to a payment plan that you cannot realistically afford to pay each month; instead, start the negotiations low so that you can be better equipped to pay off the debt in a reasonable amount of time.

How to Secure a Credit Card when you have no Credit

Credit Repair

You’ve finally made your way through college and are a full-fledged graduate. Now that you have a job under your belt you’re ready to take on the world; but are you?

Making your way out into the world beyond college takes hard work, determination, a good work ethic, and good credit. Although it sounds a bit weird that credit should play such a big role when it comes to independent living, the fact of the matter is that it is quite important for everything from renting an apartment to purchasing a car.

With the recent credit card legislation changes enacted by the CARD Act, many college students are no longer eligible to receive a student credit card unless their parents co-sign for it. Although the new legislation was brought about as a way to protect young adults from getting into debt even before they graduate from college, it has also made it incredibly difficult for them to establish credit during their college years.

The fact of the matter is that establishing credit is very important when heading out into the real world, and having no credit can make the process of moving on from college quite difficult. With that said, if you desire to establish a credit history, there are some things that can get you started:

• An active bank account – Make sure to keep your checking and savings accounts in good standing, and make sure to not overdraw them. Your bank accounts will likely be the first factor that will go into your official credit score, so make sure to keep them in good standing, as this clearly shows creditors that you are responsible with your money.
• Once you have maintained an active bank account at one, particular bank, go to the bank and open a credit card account. The company through with you have your bank account is the most obvious option when applying for your first credit card, as you have a history with them that they can draw from when determining whether you are eligible to receive a credit card.
• If you are unable to secure a major credit card right away, consider applying for a retail credit card. Although retail cards typically come with higher APRs than major credit cards, they are often an easy way to begin establishing a positive credit history. Just be sure to pay off your bill each month as to avoid costly finance charges.

Your Guide to a Responsible Credit Card Plan

Credit Repair

Using credit cards is much like any other financial decision. You should go into it with a good, working knowledge of how the industry operates; how your credit card works, including the terms and conditions of the credit card; and what is expected of you as the customer.

If you take the time to educate yourself about all aspects of the credit card industry and your credit card, in particular, then you will be better prepared to become a fiscally responsible credit card customer. This will allow you the opportunity to enjoy the benefits of credit cards without the associated risks of irresponsible overspending.

Here is your quick guide to developing a responsible credit card plan:

• Credit cards are often a necessary part of building a credit history – You may be inclined to dump credit cards altogether; particularly if you’ve been privy to all of the negative press attention given to credit card companies. However, this may not be the best decision, as your credit card purchases can go a long way to building a strong credit history so you will be able to make larger purchases, such as vehicles and homes, without a problem. The best rule of thumb when building a credit history is to charge at least a few things every month and then pay them off in full when the credit card bill arrives.
• Never begin spending until you are fully aware of the card’s terms and conditions – What you don’t know can hurt you! Make it a point to always read and reread a card’s terms and conditions before accepting it; otherwise, you could find yourself paying exorbitant interest rates and fees and potentially damaging your credit. Carefully read the card’s fine print, and if there’s something you don’t understand, call the credit card company to explain it to you.
• Don’t break the 30 percent rule – One of the best rules of thumb when dealing with credit cards is to never charge more than 30 percent of the card’s credit limit; otherwise, creditors may view your spending as irresponsible and your credit score can suffer as a result. Plus, keeping your balance to a minimum prevents you from overspending and being caught in a situation where you can’t pay your bill.

Debt Collectors and Intimidation Tactics

Credit Repair

There is probably nothing more frustrating then being in debt and having your telephone ring off the hook with debt collectors who just don’t know when to stop. Try telling these guys about your situation and you get nowhere. They couldn’t care less. Why? They are being paid to collect on the debt you owe. They have a job to do and listening to your financial woes isn’t it. To top it off, they try to blame you for circumstances you often had nothing to do with creating and demand payment immediately “How are you going to take care of this today?” they ask. Frankly, if you had the money to pay the debt right then and there, you would not be in so much debt because you would have taken care of this long ago, right?

Debt collectors are famous for their intimidation tactics. This borders on illegal and often crosses the line. They call repeatedly. They threaten you. They promise that only one person is handling the account and you will only ever hear from them. However, lo, and behold, you get a call a few days later from the same collection company and it is, indeed, a different agent. Just because you’re in debt does not mean you have to tolerate the added stress of debt collector intimidation.

Make Them Listen

Debt collection agents like to talk, trying to tell you how much debt you have and what you have to do to solve the problem. As if you were not already in the know, right? Cut them off. Tell them where you sit financially. Tell them you will pay the debt as soon as you are able. Make them listen. Even if they act like they do not care, be stern. You have the right to tell them your side of the story. Then, kindly ask them not to harass you as much or even at all. This might not stop it, but there will typically be a recording of your having asked, and often, it does reduce or eliminate the calls. If it doesn’t, there are other steps to take.

Bankruptcy

Planning to file? Make it clear to the collectors. They know there is little they can do to collect on this debt now. It will reduce or even eliminate the calls, at least for some time. Be sure to follow through on the bankruptcy filing, as after a while, they will resume collection attempts if you have not taken any action.

Assert Your Rights

Put a stop to the calls. Write a cease and desist letter to the collection agency. You can find out how to do this on the FTC website. Let them know that you know your rights and demand that they leave you alone. Keep a copy of the letter. The collection agency can contact you one last time, through the mail, to inform you of their intent, however, after this, if their harassment persists, they can wind up in big trouble.

Don’t take debt collector harassment lying down! It’s one thing for those who are irresponsible to be in the bad way financially, but for most of us, life happened, and we can do little about it at the moment. Life comes with enough stress. Don’t let these guys add to it.

How to Put a Halt to Debt Collector Harassment

Credit Repair

Ring. Ring.”Hello?” “Hi, Mr. or Mrs. Such and Such, this is Mr. ABCD from the 123 Collection Agency. We’re calling because you owe a company money, and we now have the account in our possession, so you owe us too! We intend to call you daily and send you letters and drive you nuts with our empty threats until you pay up!”

Sound familiar? There’s nothing like finding yourself in over your head, trying to swim out of the financial cesspool and having to deal with these guys too. You’re trying to pay off your debts to the best of your ability, but they want more, more, and even more. Every time the telephone rings, you dread answering it. Do you resort to sarcasm and hanging up on them? Do you toss their letters aside or in the trash, just to get away from dealing with them, at least temporarily? Unfortunately, these tactics won’t stop these unscrupulous people. Don’t blame the guy or gal on the other end of the line, though. He or she has a job to do. Sadly, that job often calls for them to say rude things and try to scare you into paying them. Even asking them over the phone to stop calling does not work.

Did you know you can put a stop to harassment from bill collectors?

Yes, it can be done. It is simply a matter of knowing your rights and asserting those rights to the agency. Now, this rule does not apply directly to the company that you owe. However, it does apply to the agent they have turned your account over to for collection. The actual creditor is not going to harass you near as much. Sure, they have lost some money, but they have other customers helping them to reap their profits. Collection agencies need every account they can get to help make their money.

Your Rights

The Fair Debt Collection Practices Act, or FDCPA, has strict regulations for collection agencies. These people can not call you before 8 am or after 9 pm. They do not have the right to call you at work if the employer does not allow you to take personal phone calls. Frankly, this means they should not call anyone at their place of employment. They do have to limit how often they call, although some have broken the rules and called many times in one day, typically blaming it on some auto-dialer the company uses. The worst ones will use threats, intimidation and even insinuations that you have commuted some criminal offense by not paying your debt. None of that is legal, nor is the criminal element true.

How to Put Those Debt Collectors on Ice

The answer is very simple. These companies count on the naive consumer who does not know their rights to tolerate the harassment or give in to their horrid tactics. The next time someone calls you for an outstanding debt, be kind and explain that you are in no position to pay the debt in full but are, in fact, making all the effort that you can. Tell them you are sorry that it is not good enough for the collection agency, and then ask for the name and mailing address of the person in charge. Sit down and write a cease and desist letter. Be sure to include your name and the contact information they have been using, as well as the details of the account they have been calling about, so that there is no confusion as to who you are.

In your letter, demand that they cease all communication by telephone, mail and even e-mail, should they have resorted to that. There is no exact form for the letter, however be sure to let them know that you are fully aware of your rights under the FDCPA. This will show them that you mean business. While it is not required, it is a good idea to get this letter notarized before you send it. Always make a copy for yourself and be sure to send it by certified mail with delivery confirmation required. This will provide evidence for your claim should the debt collector ignore you and continue their harassment.

Once the letter is received, the agency has the right to send one last letter, outlining their intent of action. If they fail to cease communication after this, you need to report them to the FTC and your state’s  attorney general’s office. There is a 1 year statute of limitations on such complaints, so don’t wait.

While it is best to pay your bills on time, every month, difficult situations do arise. Hopefully knowing your rights will get the monkey off your back and lessen the stress as you try to get back on your feet, minus all the harassment.