Credit Card Quick

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.

Important Questions to ask when Applying for a Secured Credit Card

Choosing Credit Card

If you have bad credit or no credit, it may be in your best interest to apply for a secured credit card. In fact, a secured credit card may be your only option for improving your credit. Because credit cards can play a huge role in our lifestyles, it only makes sense to have a credit card on which you can rely.

Secured credit cards, however, are not fully understood and have not garnered a lot of attention in terms of their advantages. There are a number of circumstances that apply only to secured credit cards, so it is important to understand them before applying for a secured credit card.

The following set of questions will help you decide if your next secured credit card is best for you:

• Are secured credit cards tracked on my credit report? Absolutely! Because of this, secured credit cards are a great way to begin building (or rebuilding) your credit. Many secured credit cards will provide monthly reports to the major credit reporting agencies, thereby helping you repair your damaged credit in a shorter amount of time. However, some credit card companies report only yearly. Before applying for a secured credit card, ask the creditor how often they report to the credit reporting agencies.
• How much money will I need to deposit? Because secured credit cards work like a debit card, you can only spend what you have deposited. Therefore, if you want a credit limit of $500, you will need to deposit $500. This money, however, will not be used to pay your credit card; unless, of course, you fail to pay it yourself. Instead, it will be kept in an interest-bearing account.
• How much of a return can I expect on my deposit? Most secured credit card companies offer about the same return as you would get on a savings account. However, there are some creditors that will offer greater returns. It is up to you to find them!
• Will my spending limit ever increase? If you have established a history of making timely payments, chances are the credit card company will reward you with an increase in your spending limit. Your responsible credit card behavior will allow you begin spending above your deposit amount.

Thwarting Identity Theft with Credit Report Checks

Identity Theft

It only takes a minute for a credit card thief to steal your identity, but it may take months or even years to clear you name and deal with the ramifications of identity theft.

According to Javelin Strategy and Research, nearly 11 million adults were victims of identity theft in 2009 alone; an increase of 12 percent from the year before and a 37 percent increase from 2007. Unfortunately, many victims of identity theft don’t even realize they are victims until they apply for a loan and are turned down or they receive their credit card bill with thousands of dollars in charges on it.

Under the Fair Credit Billing Act, you are only responsible for up to $50 in unauthorized charges on your credit card, provided you report the charge within 60 days. However, today’s identity thieves often go much further than just charging up your credit card. They may steal your social security number, driver’s license number and begin taking out loans and credit cards in your name. What’s worse is that they may be able to go unnoticed for a long period of time before you even realize what is going on.

Your Best Line of Defense

Because of this, one of your best lines of defense when dealing with identity thieves is to closely monitor your credit report. You may also choose to place a fraud alert on your credit report with all three credit monitoring bureaus – Experian, TransUnion and Equifax – if you think that your personal information was compromised.

A fraud alert will stay on your credit report for 90 days, during which a creditor will not issue you any credit without first verifying your identity. A fraud alert will prevent any other person from opening any type of credit in your name without your knowledge. Victims of identity theft may also choose to place an extended fraud alert on their credit reports, which will be in effect for seven years.

Keeping your Guard Up

However, to protect yourself on a daily basis, it is always best to pay close attention to all statements that come to your home, including bank statements and credit card statements. It is also a good idea to order a copy of your credit report for all three credit reporting bureaus at least once a year.

You can request free reports from all three bureaus once a year, so take advantage of this opportunity.

Should You Consider a Credit Co-Signer?

Credit Score

If you’re young, have little to no credit history, or are looking to rebuild your credit history after bad credit or a financial disaster, a credit co-signer might be in your best interest. This is a person who is going to vouch for you as creditworthy, regardless of what your credit report says. While it might be a good idea, in both theory and reality, there are some things to keep in mind. A co-signer situation is not something you want to take lightly.

What It Means

When Uncle Bill signs his name on that line, he is not only vouching for you; he is laying his own credit on the line and taking on some potential financial responsibility himself. This means Uncle Bill had better be able to trust you in the first place or he could wind up in a world of financial hurt.

Responsibility

If you’re going to use a co-signer for any kind of credit, your co-signer is going to have to have pretty good to excellent credit in the first place and reasonable income. As for you, lack of credit or bad credit is the whole reason you are using a co-signer. You need to make sure you have the income to back the credit you are receiving and to make those payments on time each and every month. If you default, Uncle Bill has to pay, and not only will he be unhappy with your lack of responsibility, he might repossess the item he co-signed for or could even take you to court over the money he is out. After all, Uncle Bill most likely paid anyway. He doesn’t want to see the good credit he has built up through the years getting flushed down the toilet.

Considerations

You and your co-signer must have mutual trust and must work together to keep things going smoothly. If you have a hard time, talk to your co-signer to work something out, even if you have to pay them back when you are on your feet again. You do not want to ruin your chances of building the credit you so desperately want and need, nor do you want to destroy another person’s credit in the process. Always use a co-signer that you know well, and always do your part. Be cautious, as a co-signer relationship with someone close to you can become a disaster if there is a default on the account. Who wants to see a friendship or family relationship strained or destroyed over financial matters?

As long as you use a credit co-signer with caution and responsibility in mind, it can be a great way to help you build your credit and gain some independence as well.

Post Bankruptcy Tips: How to Get back on Track and Stay on Track

Bankruptcy

If you have recently filed for or been discharged from a bankruptcy, there had to have come a time when your financial life began to take a turn for the worst, slowly meeting up with its demise. While it is true that some people wind up in this boat simply because they were irresponsible or failed to heed to caution, most people who file bankruptcy got there because of life’s unforeseen circumstances and their lack of ability to control them. In those cases, bankruptcy can be a real blessing; rescuing you from the burden of a financial problem that seemed insurmountable.

The sense of relief one feels when successfully getting out from under overwhelming debt is almost indescribable. However, one thing you do not want to do is to forget how overwhelmed you felt prior to filing for bankruptcy. That way, you can avoid winding up in the same boat again, or at least take steps to avoid it as much as you can. Financial death can happen to anyone at anytime. However, financial suicide is a whole different matter. The following tips can help you to get back on track and stay on track, avoiding the post-bankruptcy blues:

Your Credit Report

Yes, you want your credit score to improve substantially. However, that’s going to take some time and effort. For now, you need to take a good look at your credit report and stay on top of it. Get copies from each of the three credit bureaus (you’re entitled to one free report from each of these every year). Look them over and make sure your bankruptcy and discharged debts are noted. If there are any discrepancies at all, call and have them fixed immediately. While this may not do much to improve your score right away, it can help some and is a step in the right direction.

Credit Counseling

If you were not required to seek credit counseling as part of your bankruptcy requirements, now might be a good time to give it a shot. You’ll learn a lot of great things about money, budgeting, savings and maintaining a healthy financial life. This counseling could truly make a difference in staying the course or falling back into bankruptcy again.

Your Debt

If you have debts leftover that were not discharged, set up a plan to pay those debts off as quickly as your income allows and get them off your back. For your current bills and any newly acquired debt, make a point to stay ahead of the game by paying the full amount due  in advance or at least on time each and every month.

A credit card is a great way to rebuild your credit. Your best option is to go with a secured card. Just make sure you pay the bill on time, the company reports your activity to a major credit bureau and that it is not reported as secured.

Loans

It is best to wait several years before amusing a loan. Smaller loans are acceptable as long as you pay them back quickly. For large loans though, give yourself some time. Get back on your feet financially. After a couple of years, if you want a car loan or a mortgage, you will be able to get a better interest rate then if you jumped right in after bankruptcy. On a car loan, minimize the term of your loan as much as possible, or you might wind up paying far more than the car is even worth! When it comes to choosing a lender, watch out for those bleeding hearts that say bad credit is ok with them. It is ok with them in the form of the highest interest rates going!

As long as you make a conscientious effort to stay on track after bankruptcy, you should be fine. Granted, life does happen and financial problems are not always avoidable. However, if you have been down bankruptcy road once, it is easier to identify the mistakes of the past and avoid them, increasing your chances of escaping the same pitfalls the next time around.

Hook, Line and Sinker: Things the Credit Card Companies Won’t Tell You Upfront

Introduction

Hook, line and sinker. Yes, the credit card companies are trying to reel you in. More customers equals more money, and of course, they certainly like that. Who wouldn’t? Does this man you should steer clear of credit cards altogether? No. Absolutely not. Having a credit card or two in your possession can e very beneficial..

Credit card companies put enticing offers out there and don’t give you all the facts up front. That’s the way it goes with advertising. If you fail to read the fine print, you are ultimately responsible for the outcome.  The credit card company is not going to take any blame for you’re lack of knowledge about something just because they failed to tell you. Truth be told, it’s not their responsibility to tell you every little thing upfront. A smart and savvy consumer will read everything and be in the know before they ever use that little plastic card. Here’s a few things to watch out for that could make a difference in saving money or breaking the bank to pay off your card.

0% APR

0%? Not even close. This might apply to balance transfers only. You might get a card that allows 0% APR on both balance transfers and purchases. Either way, it is an introductory rate. There will be hidden fees for using the card for other things, like cash advances, and you payments will only be applied to our lower interest balances until they are paid off, leaving you with more debt to pay. To top it off, that 0% APR is literally only an introductory rate. After the first few months to one full year, you’re going to get slapped with a bill that might reflect interest rates of a caliber you were not expecting. Read and get to know the terms on such a card. Use it wisely to avoid a lot of debt. To avoid this eventuality altogether, look for a card offering a low fixed-rate APR. These do not change over time and will only change with your renegotiation or failure to pay.

The Universal Default

Thought your rate was secure with your card once you got it? Thought your subsequent debt with other creditors would make no difference? Think again. If you wind up with ad debt with another creditor and if affects your overall credit rating, paying your credit card ill in full and on time  might not make a whole lot of difference. You should still pay the bill, of course, but when the credit card company catches wind of any issues on your credit report (and they will!), this is their excuse to raise your rates. Even being a good customer to them does not change their view that you might now be a high-risk customer.

Paying the Minimum Balance

While this can be a life-saver in your time of need, don’t make it a habit. Some companies offer a minimum payment of as little as $10 per month. if you only pay this amount every month, you are not going to make much of a dent in your debt. On top of general card use, you’re going to have fees and interest that accrues every single month. Not only will it take you a very long time to pay off the debt, you will wind up paying a whole lot more in the long run. The minimum balance payment is great in a pinch, but it can also lead to more trouble than it is worth.

Rates and Terms

Don’t ever make the mistake of thinking that your rates and terms are set in stone and are thus unchangeable. Nothing could be further from the truth! Card companies can change their policy at their own whim and discretion, giving you little notice to prepare for said changes. However, you might be ale to work these things out in your own favor. Should the credit card company alert you of impending changes, try  taking advantage of term flexibility. If you have proven track record with the company and have been in good standing for a couple of years, call them and try to renegotiate the rate. It never hurts to ask!

Knowing these things in advance will, hopefully, help you to become a more educated and sophisticated credit card user; avoiding higher debt and reaping the benefits of plastic.

Avoiding Credit Repair Scams

Credit Repair

A good credit history is an important and valuable element to maintain. Bad credit can impact your life, preventing you from obtaining loans, housing and these days, even a job. You want to fix that bad credit, and though it is possible to do it yourself, some people would prefer to have a professional leading the way. Call it peace of mind or having a hand to hold, it often helps to have someone who knows the industry and knows how to explain things to you, offer advice and make things happen.

Ideally, a credit repair agent only has your best interest in mind. Unfortunately, that is not always the case. In a world where it is all to common for profits to take precedence over ethics, there are many credit repair scams appearing on the scene. These companies offer promises in pretty little packages. Unfortunately, they can’t and don’t deliver.

That’s not to say that all credit repair offers are not legit. In fact, there are many out there who are reputable and don’t make empty promises. However, the scammers are the ones who want a fortune up front and leave you hanging in the end. Face it, if you had the kind of money that they want up front, wouldn’t you just start paying the debts on your own?

An informed consumer is a smart consumer. Here are a few tips to help you avoid the pitfalls of credit repair scams.

Promise #1: Erasing Information From Your Credit Report.

No wonder so many people fall for this one. The image of some guy standing over your credit report with a big pink eraser, just scrubbing away the mistakes, does have its appeal. Unfortunately, this is one of those promises that they not only can’t keep. Information on your credit report can not simply be erased. Inaccurate information can be disputed and removed if and when found to be inaccurate, however, accurate information will remain on your credit report for 7 years and as long as 10 years, if you file bankruptcy. Accurate information can not be removed just to make your credit report look better.

Promise #2: Pay Us Large Sums of Money Up Front & We’ll Work Our Credit Magic

Nope. Not even close. Not only will this not happen, should you fall for it, it’s illegal. These companies can not ask you to pay before they deliver on their promises. They must provide you with a contract, inform you of your rights in writing and offer you a minimum of three days to change your mind and back out.

Promise #3: We Can Create a Second Credit File for You.

The idea behind this is that you can have another file to use for credit purposes, obscuring the information in the original file, allowing you to obtain credit more easily. First of all, this is what they call fraud. You can not legally obtain credit by obscuring or omitting the truth. Companies promising to create another file or “file segregation” are offering you an empty promise. It’s not only wrong;it really does not work.

Remember, you can dispute and correct mistakes on your credit report yourself by contacting the three reporting bureaus. You may also add an explanation and can easily work to improve your score on your own. However, the help of a professional is often a good idea, so look for a credit repair company that does not sound to good to be true and follows the guidelines as set above. A consumer credit counselor might also be a great choice to help you get your credit back on track.

The Importance of Building Credit and How to Get Started

Credit Score

Credit is one of life’s little enigmas. If you don’t have a credit history, you’re going to need it at some point. If you already have it, it may not be as good as it could be or you might not really be using it. Either way, credit can be difficult to obtain if you don’t have it or are not keeping up with it. If you are not flat out denied, odds are you will wind up paying a lot more than the guy with the five-star credit rating. Without credit history, a lender has no idea what kind  of customer you are. With a limited or flawed credit history, you will seem like a risk to the company. If you want the best deals and offers, the ultimate rates and yeses rather than nos, you need to build up your credit and maintain a good credit score.

You will thank yourself later in life when you try to get a loan, mortgage that dream house, buy a new car or even go for some big career change. Here’s a few great ways to get started on building up your credit:

Pay Your Bills On Time

Keep all of your bills current. Not all of them will appear on your credit report, however, some will and the ones that don’t (such as renting from a private landlord) might still reward you with an impeccable credit reference later on.

Establish Bank Accounts

Get yourself a checking and savings account. Make regular deposits, maintain a balance and keep these accounts in good standing. As an added perk, grab yourself a high yield account and you can earn excellent interest on your money as well.

Secured Credit Cards

You make a deposit and have a credit limit typically equal to the amount of the deposit. You use it, pay it off and use it again. This builds your credit by showing consistency in your payments and use and your financial responsibility.

Any Reputable Credit Card

If you can obtain any type of credit card from a reputable issuer, get one, use it and keep it paid up. This will go on your credit report and will build your credit worthiness in the eyes of those who might be looking.

Store Cards, Store Financing, Rent-To-Own and Gas Cards

Sometimes, these types of credit cards are easier to obtain than a standard credit card. As long as the company reports your activity to a credit bureau and you keep the account current, you will be building good credit that will benefit you in the future.

Co-signers

As you start to build credit, you might want to use a cosigner for some transactions. You need to choose someone you trust that also trusts you and has their own good credit score and is financially responsible with all their own debts. Of course, don’t take this lightly. If you default, your cosigner is the one in hot water, since they vouched for you. Be responsible when using co-signers so as not to impact their credit rating, cost them money or ruin the relationship you have with them.

Always make sure that any option you choose for building credit comes from a place that will be reporting your financial dealings with them to a credit reporting agency. If they don’t do this, your actions are having no impact on your credit score, defeating your purpose. Building credit is a smart thing to do, but use it wisely. Never take having great credit for advantage. It could come back to bite you someday. One moment of irresponsibility is all it takes for your credit score to quickly decline.

Making Your APR Work for You

Introduction

There is no doubt that one of the most complicated and frustrating aspects of having a credit card is the annual percentage rate (APR). Some people don’t quite understand that the APR is simply the calculation of the interest on your credit card at a yearly rate. Once you know that, it makes things a little easier to understand. However, don’t be fooled. It is so easy to get in over your head! Interest rates can add up quickly, so spending wisely is always advised.

Interest Rates

Depending on your credit score, your interest rate can range anywhere from 11.99% to just above 23%. There is a big difference there, and the higher the interest, the more it’s going to cost you. Interest does add up, so spending frivolously can easily wind up costing you way more in the long run. In a nutshell, you don’t want to still be paying for something you bought a year from now because of interest rates.

Some credit cards can be so alluring, offering an introductory APR 0%. However, this rate will change within 6-12 months, so if you are unprepared, the hike in your credit card bill might catch you of guard. Interest rates can be either fixed or flexible. If you’re on a budget or don’t particularly care for surprises in your credit card bill, it might be wise for you to choose a card with a fixed-rate APR. However, whether your interest rate is fixed or flexible, you still need to be in the know about what you are being charged. Check the terms and conditions on your card. You might have an interest rate that is set on standard  purchases, however, if you get a cash advance or use another feature of your card, the interest rate is most likely to vary per feature.

How to Make Your APR Work to Benefit You

Having a credit card can be very beneficial, and in an ideal world, we would be able to find the perfect card; one that let’s us set our own limits, choose our own APR, etc. However, we live in the real world, knowing this is not likely to happen.

While it would be nice to have a low APR, few of us will get a rate that is truly minimal. Even the slightest blemish on your credit report can affect your interest rate when getting approved for a credit card. Still, even if you can’t have the perfect APR, you can still make it work for you.

Key Factors

One of the most important keys with credit card interest can not be emphasized enough. Spending. Watch your spending closely. That interest can add up quickly and you’re the one who is going to have to pay the bill.

Another important factor is how much you pay on your bill every month. If you can, it is always best to pay off the balance with each billing cycle. Unfortunately, this won’t always be possible for everyone. Still, don’t just pay the minimum balance. Sure, it is an option, and an enticing one at that, especially when your cash is tight. Nevertheless, if you only pay the minimum balance every month, you’re really getting nowhere, and the bill will just keep adding up. The more you can pay on it every month, the less interest you will pay in the long run. So, pay the maximum you can afford, as opposed to the minimum balance due. You’ll thank yourself later on.

If you are forced to only pay the minimum once in a while, curb that spending until you are back on track. If you pay the minimum, but keep spending as usual, your debt is only going to increase.

If you follow these guidelines and pay close attention to your credit card use, you’ll see that credit card Credit card APR does not have to be intimidating, and your debt can be minimized by making your APR work to befit you.

What’s All This Talk About Credit Scores?

Credit Score

You have probably seen and heard tons of advertisements advising you to check your credit report and credit score. With so much talk, it’s hard to believe anyone could have missed it, but has anyone really been listening? Do you know what your credit score is? Not just the number itself, but what that number means, why it’s so important and what that score potentially means for you?

Your credit score, or FICO score, is not just some meaningless number. It is a number, based on your social security number and financial history data, that is calculated by the three major credit reporting agencies. While each agency might have slightly different information and a slightly different calculation of your credit score, the numbers should still be similar enough to give a basic idea of just how credit worthy you are.

What Does My Credit Score Mean?

These scores are based on things the length of time that accounts have been opened and tracked. These accounts include revolving accounts (such as credit cards), installments, mortgages, bank accounts, debts owed, etc. If you have any kind of account with a company, typically, your activity will be reported to and tracked by the credit bureaus, regardless of whether your payment history is good, bad or in-between.

Credit scores typically range from a low of 340 to a high of 850. Few people achieve the 850 rating, as many things affect your overall credit rating, even if you do not have bad credit. An excellent score is 700 or higher. 600-699 is considered a satisfactory rating, even with the minor blemishes on your credit report. Any score below 500 is considered a low score and can make obtaining any kind of credit very difficult. Anyone with a score this low should think about taking a close look at their credit report and working hard to raise that number.

How Does My Credit Score Affect Me?

A high credit score is a major benefit. It will bring you the best offers for financing and lower interest rates for products such as loans, especially mortgages. A satisfactory score may not get you the best options, but since about 30% of people fall within the 600-699 FICO score range, most financial institutions want to work with them despite any flaws that appear on their credit reports. Maybe this is because even with the minor speed bumps, which are just part of life, people in this range have proven their want and will to keep their debts to a minimum and their financial reputation intact. A credit score of 500 or less will often leave you paying more in interest and fees, and that’s if and when you can get the credit. While credit is sometimes extended on a limited basis to people with very low credit scores, more often than not, credit is not offered at all. It’s nothing personal. While some people with a low credit score might be guilty of failing to pay there debts, others simply have little credit history to speak of. Not being given the credit because of a low score is simply because a person either seems high-risk or there just isn’t enough credit information to make lending or extending credit a plausible option. That’s why it is important for those with scores of 500 and below to work to increase their number.

Is There a Solution to My Low Credit Score?

Of course there’s a solution! Speaking with a credit counselor could help you to understand the fine points of credit and financial management and can help you to make a plan for improving your credit. Paying off debts you owe will also help. Other options include credit cards that offer a small spending limit and allow you to build up your credit as you use it and pay on the balance. The important thing is to look into your options and raise you credit score from low to at least a satisfactory level if you want the benefit of more credit and financing options.