Credit Card Quick

All Credit Card Consolidation is not Created Equal

Credit Repair

You hear it all the time: credit card consolidation is the way to go. And, based on your mountain of credit card bills, credit card consolidation looks pretty darn good right now.

But what credit card consolidation programs are the best for you?

Often the easiest way to consolidate your credit cards is through a balance transfer offer from another credit card. However, it is important to realize that, although they may all seem alike upon first glance, they are, in fact, quite different according to their terms and conditions.

In order to determine if credit card consolidation is right for you, and to determine if you are getting a competitive rate on a balance transfer offer, you may want to begin by:

• Assemble all of your credit card debt. The best thing you can do, first and foremost, is to assess your credit card situation. Add all of your credit card debt up and determine your interest rate and minimum payment on each card. Then, add all payments together and compare it with current credit card consolidation offers. Make sure the offer is worth your while. For example, it certainly doesn’t make much sense to consolidate your debt if you won’t save on interest.
• Don’t just take one credit card consolidation offer and run with it. Instead, eye up the competition and check their interest rates, promotional rates, balance transfer fees and other related fees.
• Regardless of your decision, make a promise to repay your credit card debt in a reasonable amount of time and with a serious game plan. You can repay your credit card debt without consolidating your debt onto a balance transfer offer, but it may make sense to consolidate debt merely for the convenience of paying just one payment each month.
• Develop a game plan once your credit card debt is paid off. Many people, once their credit card debt is paid off, will simply recharge on their credit cards, thereby creating the same problem all over again. If you need to cut up your credit cards, then by all means so do. If you need to take them out of your purse or wallet, then make the move before your credit card debt becomes a problem once again.

Start Small: Steps you can take to Today to Rebuild your Credit for Tomorrow

Credit Repair

The past year has been tough for many people, and that goes for their credit scores, too.

If you experienced the loss of a job or other financial mess over the past year and you are now eagerly looking forward to a brighter 2010 then you must begin to assess your credit score and work towards building it back up.

In order to repair your dinged-up credit score, you must begin at the beginning again. Unfortunately, creditors simply are not willing to extend credit anymore to those with poor credit scores. So, what does that mean for you?

That means that you must begin taking small – but very necessary – steps to repair your credit so that you can once again enjoy a strong credit score and all of the advantages that go along with it.

• Start with a secured credit card. Make a point to charge purchases on that card each and every month and pay them off in full each month.  A secured credit, although backed by your cash deposit, is a great way to begin proving your credit worthiness to creditors. Check out the terms and conditions of several secured credit cards, as annual fees and charges for these types of cards can vary greatly.
• Once you have developed a consistent payment history with your secured credit card, consider taking out a small retail credit card. Continue to pay on this card, each and every month, so that you can further build up your credit score.
• Once you have shown a strong payment history of at least 12 months, you can often begin applying for unsecured credit cards. However, if you are denied a credit card after this time period, don’t automatically start applying for more cards in hopes that you may get approved for one; too many credit inquiries will only further hurt your already low credit score.
• If your poor credit history is a result of irresponsible spending, consider heading to a credit consumer counseling service. These non-profit organizations are there to help you make better decisions and to start helping you to build a responsible approach towards credit cards.

Can you Negotiate Different Payment Terms with your Creditor?

Credit Repair

Are you one of the millions of people that have been unpleasantly surprised by higher interest rates and larger minimum monthly payments? Are you worried about falling behind on your credit card payments? Are you struggling to pay the minimum payment every month?

If so, then it may be time to consider contacting your credit card company and asking them for payment assistance with your credit cards. Often times, a creditor will respond positively to a customer who recognizes a problem and chooses to deal with it before it gets out of hand. In other words, dealing with your debt problems head on instead of ignoring your mounting debt is not only better for you, but also better for your creditors.

But will your creditor bite?

Maybe and maybe not. There are some credit card companies who simply will not negotiate different payment terms for your credit card bill, while others will work with you to find a plan that will suit both parties. The only way you can find out how your creditor will respond to your request is to simply ask them. After all, you really don’t have anything to lose except a lot of worry over your debt load.

How to Negotiate Changes for your Credit Card Debt:

• Don’t wait until you fail to pay your credit card bills to ask for assistance; instead, make every effort to cover your card’s minimum payment so that you can show good faith on your part. Your creditor will be more willing to negotiate with a customer that has a strong payment history.
• Document all contact you have with your credit card company, including dates and times of phone calls and names of representatives you talked to. Then, ask for a written agreement from your credit card company that details the terms of your new agreement.
• If your credit card company is unwilling or unable to assist you with coming up with more reasonable repayment terms regarding your credit cards, you should seek help through a nonprofit consumer debt agency, who can help you find ways to manage your debt.

Credit Repair Companies: Why you shouldn’t have to Pay for Repairing your Credit

Credit Repair

The tough economic conditions this past year have left millions of consumers in financial straits. From the effects of the recession and credit industry to the tumbling housing market, credit card consumers across the country are finding it difficult to keep up with their credit card payments and are slowly destroying their credit in the process.

If you have been a victim of the economy and you are drowning in a sea of credit card debt, you may be tempted to contact one of those credit repair companies you often see advertising on television, radio and even on billboards. They often offer to repair your credit so that you can get approved for a car loan, a home loan or personal credit.

It may sound quite tempting, actually. The thought of paying a company to pull a quick fix on your credit may just solve a host of problems. But before you jump into the arms of one of these credit repair companies, there are a few things you should consider:

•  No one can legally remove information from your credit report. Regardless of what these companies may promise you, it is simply illegal to have any information removed – unless, of course, you find an error or discrepancy, in which case you must request an investigation by the appropriate credit bureau.

•  The only thing that will remove your bad credit rating is time – and responsible credit behavior.  Your negative credit card information can only be reported for seven years (bankruptcy is ten years). Unpaid judgments go back seven years, or until the statute of limitations ends.

•  Improving your credit score can only be accomplished one way: paying off your debt. In other words, instead of trying to hide from your creditors, contact them and set up a reasonable payment plan, if possible. You will feel relieved to end the stress of avoiding the creditor, and you will immediately begin repairing your credit.

•  If you choose to contact a credit repair company, make sure you receive the brochure, “Consumer Credit File Rights under State and Federal Law.” This brochure should clearly outline the company’s fees, as well as your rights and obligations.

•  Consider seeking help through a non-profit consumer credit counseling service, which is almost always free of charge.

What to do when you can’t Afford to Pay your Credit Card Bill

Credit Repair

If you find yourself in the difficult situation of not being able to pay even the minimum payment on your credit card, there are a number of things you can do – and ignoring the problem is not one of them.

Many of us, in the midst of financial despair, may choose to ignore the creditor phone calls and letters; but this simply doesn’t solve anything. Instead, face the problem head-on and figure out what you can do today to get out credit card debt tomorrow.

• Sit down and make a budget. Not just a general budget, but a detailed budget that accounts for every penny going in and out of your household each month. Examine your monthly expenses and look for ways to cut back.

You may want to consider abandoning your land line if you have a great cell phone plan; you may want to drop your expanded cable television package for its basic counterpart; or you may want to make an effort to cut down on your grocery bill every month by clipping coupons and shopping sales. The bottom line is that most everyone can find an extra $50, $100 or more in their budget if they just take the time to re-examine their spending.

• If you’ve lost your job, make immediate, drastic cuts in your lifestyle. Don’t wait until you are behind on all your payments to start making changes. Immediately cut out all unnecessary expenditures and live lean until you can find another job and regain your financial footing.
• If you’re simply in over your head in credit card debt, and can’t seem to find a solution, you may want to consider contacting a non-profit, credit counseling service. These agencies can help you find ways to meet your financial obligations without getting bogged down by late payments and over-the-limit fees.
• If you find yourself struggling to make your minimum payment, you may be able to negotiate a lower, monthly payment with your creditor. Always remember that it never hurts to ask. Many creditors, aware of the financial problems of so many Americans, understand that it is in their best interest to help consumers find a solution to their credit card debt.

Why Debt Settlement Agencies Continue to Flourish in Today’s Economy

Credit Repair

If you are in over your head in credit card debt, and you don’t know where to turn, you may consider a debt settlement agency. They have become increasingly popular over the last year or two because of the millions of Americans struggling to pay their bills.

Many Americans have lost their jobs, exhausted their savings and have begun living off credit in order to get along. However, as this solution is only temporary, at best, many individuals find themselves in serious financial straits and with more credit card debt than they know what to do with.

Avoiding Bankruptcy

Throughout all of this mess, many Americans want to avoid bankruptcy at all costs; which is why debt settlement seems to appealing. They are often looking for a quick and easy way to clear their debt without filing for bankruptcy.

The process of debt settlement seems pretty straightforward: the consumer contacts the debt settlement company who, in turn, makes deals with the consumer’s creditors to repay a portion of their debt. The consumer then begins making payments to the debt settlement company who, in turn, pays off the creditors.

But is this the best solution?

Avoiding Scams and Fraud

Many times, consumers find themselves paying significant fees to debt settlement agencies who do nothing more than act as a third party to pay on the debt. Even worse, many debt settlement agencies take the money and run, never paying off the debt and leaving the consumers in more of a mess than they started with.

Although there are certainly upfront debt settlement agencies that do their job, there are just as many that do not. Your best option is to avoid using a debt settlement agency and instead turn to nonprofit debt counseling services.

Make sure that the debt counseling service that you use has a strong history and a positive reputation. Check the company’s credentials and follow up with a search with the Better Business Bureau.

Remember: you should never have to pay a fee for consumer credit counseling services, as they are generally nonprofit companies who help you manage and pay off your debt, without filing for bankruptcy.

Why Cutting up your Credit Cards may not be the Right Move

Credit Repair

Many consumers, worried about an overabundance of credit card debt and rising interest rates, have chosen to take matters into their own hands and cut up their credit cards, once and for all.

But is this really the best decision, both for yourself and your credit score?

The first thing you need to know is that your ability to borrow virtually any kind of money is dependent upon a strong credit score, especially in today’s economy. It is because of this that cutting up your credit cards, although a seemingly smart idea, may really be detrimental to your credit score.

For example, cutting up your credit cards and canceling your accounts immediately affects your FICO score, as your available credit is now much lower. Because part of your FICO score is related to your available credit, canceling your accounts may do much more harm than good.

Consider All of your Options

Instead of cutting up your credit cards and closing your accounts, consider paying down the balances. This is simply the easiest way to protect your credit score and keep your debt manageable.

Your timely payments will allow you to establish a good credit history which will, in turn, improve your credit score. In addition, your low credit card balances will keep your available credit open, which will therefore produce a stronger credit score.

The Basics of a Good Credit Score

A good rule of thumb is to seek consumer credit counseling services if you are drowning in debt; otherwise, it is best to manage your debt by making timely payments and by keeping your credit card balances to a minimum.

It is also a good idea to regularly check your credit score. Order a copy of your credit report from all three credit reporting agencies at least on a yearly basis to make sure that your report is accurate and free of any errors or discrepancies.

How to Begin Repairing your Credit Following a Foreclosure or Short Sale

Credit Repair

There are many of us in financial peril due to the housing crisis and the subsequent meltdown of real estate market values. Many homeowners have been forced into foreclosure or short sale, leaving many homeowners wondering where they go from here.

Although it may be quite overwhelming and frustrating to go through the loss of your home, you do need to understand that it is possible to repair your credit and move forward. In fact, if you begin repairing your credit now you may be able to purchase another home in as little as two years.

Make no doubt about it: your credit score will greatly affect your lifestyle for the next one to two years, but it is quite possible to take that time and rebuild your credit score so that you can move forward and rebuild your life and your credit rating.

It is important to realize that we live in a society that is dominated by credit, so repairing your credit now will make your life easier in the years to come.

What you can do now to repair your credit:

1. Order a copy of your credit report from all, three national credit reporting agencies. Although it may be hard to face, there is no time like the present to take a good, hard look at your credit report. What we don’t know CAN hurt us, and our credit report is no exception. Take the plunge, order a copy of your credit report and review it carefully so that you can take care of unpaid bills and correct any errors or discrepancies. Most importantly, immediately contact the credit reporting agency if find any incorrect information on your credit report.
2. Don’t fall victim to credit counseling/repair scams. There is one business that has done quite well during the recession: credit scammers. Be very wary of any company offering to repair your credit for a fee, as many times these are just scams in disguise. Unless you are dealing with an accredited credit counseling service, be very cautious about dealing with any type of credit repair company.
3. Pay your bills on time. Simply put, there is no easier way to begin repairing your credit today than to pay your bills on time and in full, every month, with no exceptions.

Don’t let your Credit Cards get the Best of you

Credit Repair

Your ability to obtain and use credit can be incredibly useful and practical, but it can also be a veritable nightmare if you abuse or mismanage this privilege.

The goal is to use your credit responsibly so that you can be afforded the luxury of purchasing both large and small things on credit. However, many consumers have abused this privilege over the last, few years, due to the sheer availability of easy credit.

The result of the lax consumer credit industry of previous years, and the now-stringent industry that has taken it place, is that many consumers are left with large amount of debts and no plan on paying it back.

If you are one of the lucky few who has managed to dodge the credit card mess that has taken over the country, it is now more important than ever to maintain your good credit rating so that you can continue to enjoy the privileges that come with a great FICO score.

How to Avoid Sinking into Credit Card Debt:

• Don’t Live Beyond your Means – Using your credit cards to achieve a certain lifestyle is, for sure, the easiest way to get into credit card trouble. Purchasing expensive electronics or taking lavish vacations are fine – if you can afford them. However, if you find yourself making these purchases on your credit cards, and not being able to afford to pay off the debt, then it may be time to rethink your financial strategies and priorities.
• Remain Aware of the Warning Signs – If you find yourself purchasing necessities, such as groceries and gasoline on your credit card because you simply don’t have the cash, then you may need to rethink your budget and financial situation.  Instead of relying on your credit cards to make everyday purchases because your paycheck isn’t stretching as far as it once did, then it is probably time to make a budget, find ways to cut expenses, and live within your means.
• Don’t just Pay the Minimum – One of the fastest ways to incur a substantial amount of credit card debt is to make only the minimum payments on your credit cards. One of the best ways to manage your credit is to find money in your budget to pay more than the minimum payment on your credit cards so that you don’t find yourself in over your head in credit card debt.

How to Effectively Manage your Credit Cards in the Event of Possible Unemployment

Credit Repair

In today’s tough economy most of us have witnessed our family and friends facing unemployment. Unfortunately, an increase in unemployment is a direct result of the crumbling housing market and weakening credit sector.

Now, what happens when unemployment threatens your job?

If you find yourself on the receiving end of a possible lay-off or termination, there are a few things you can do to manage your finances, including your credit cards:

1. Take a good, hard look at your budget and find ways to cut expenses. Use that money to cushion your emergency fund so that you won’t be left without a savings account in the event of unemployment. Although many consumers’ first instinct may be to pay off their credit cards with this extra money, it probably isn’t the best idea. Instead, continue to make the minimum payments on all your cards as to protect your credit score, and put any extra cash into an interest-bearing savings or money market account.
2. If times are particularly tough, and you are finding it hard to even make the minimum payments on your credit cards, call the credit card company and ask about their forbearance policy. Many credit card companies will waive the monthly payment for a few months while you work on finding a job.
3. If you feel as if you might be facing unemployment, think ahead and consider a personal consolidation loan or consider consolidating your credit card bills onto one, low-interest credit card that will be much easier to handle if you lose your job.
4. Always pay your unsecured debt first. Although the last thing you would ever want to do is miss your credit card payments, the harsh reality is that, given the choice between paying your mortgage or your credit card payments, you must keep a roof over your head.
5. Contact an accredited consumer counseling agency. An accredited consumer counseling agency may be able to strike a deal with your creditors and give you a much more manageable monthly payment in the event that you can no longer meet your credit card payments each month.