Credit Solving Solution

Tips for Credit Card Surfers

2008-08-04T16:28:00.004+07:00

Moving money from credit card to credit card to take advantage of interest free balance transfers and effectively borrowing money for free. It's even possible to make money by borrowing money, transferring the debt to an interest free card and investing the cash in a high interest savings account until the interest free period expires.

However, if you plan on being a serial card surfer, there are a number of things you need to do.

Firstly. Make sure you read the terms and conditions of the card to which you're transferring your balance and are aware of exactly what you're signing up for. Some cards, for example insist that you spend a certain amount per month on the card in order to qualify for the interest free balance transfer.

Secondly. Never, never, never spend any money on the card to which you transfer a balance. This is because, your monthly payment is always put towards paying off the transferred balance. This means that you will pay interest on everything you spend, even if you pay off as much as you spend every month.

Finally, make sure you know and write down the date that the balance transfer period ends. Better still, set an alarm on your mobile phone or PDA for seven working days before the expiry date. That will give you enough time to pay off the balance before the interest free period ends.

Follow these simple guidelines and you can surf from credit card to credit card and never pay any interest on transferred balances.

Tips For Getting Your First Credit Card

2008-08-04T15:20:00.003+07:00

Most of us get a credit card on our name when we go to college or when we are in our senior years of high school and all of us stumble into the same types of difficulties when it comes to finding an issuer and managing the credit card. Most banks ask for a prior type of credit history that most of the time lacks and for some type of warranty that we will be good payers. It is true, finding the right issuer and building a credit card history is not easy, but it can be done.

When you apply for a credit card the bank will usually ask you questions regarding your previous credit lines. Most young people do not have any type of credit history and this makes the banks unable to positively respond to their application.

There are two things that you can do to go around this problem. One is looking for an issuer with a special offer, as there are many banks that offer credit cards for people who are just starting their first credit line. It is true that you will not have an extended credit line at first, but if you prove to be a good-payer and a loyal customer to the bank, you are likely to receive more credit line in time.

If, however you cannot find an issuer that will give you a first chance with credit lines, you will need to build a credit history yourself. You can do this by getting credit cards from gas stations or from stores. There are gas stations, as there are supermarkets and department stores, which offer fidelity credit cards to their customers. Once you become the owner of such a card, make sure to balance it wisely and after a couple of months you can re-apply for a bank-issued credit card.

Actually, the most useful tips for those who get their first credit cards now are not those about how to actually obtain the card but about how to use it. Some happy card holders hit the shops as soon as they have the little plastic card and spend much more than they can pay back. The banks will never like that and there are no exceptions or grace periods only because you are new.

All late payments count as bad credit and if you make such reckless spending, you are in danger of having your credit ceased as soon as it was approved. You will also be considered a "bad" client if you lose your credit card or if you forget credit card information often. Avoid carelessness when you deal with money and note down all the information regarding your card and the transactions you have made with it.

Another good advice that all new card holders should follow is about owning only one credit card in the beginning. This is a good idea because it helps you get familiarized with the banking world, the card system and it is also a test to see if you can balance money. After one year or so, of good credit history you may apply for a second credit card; however, if you've had payment problems it is wise to stick to that one single card until you can correctly manage card-money.

It is always difficult for new-comers to break through in the baking world, yet with patience and a bit of wits you can become the owner of a new credit card. The difficult and tricky part begins when you start balancing it. Keeping records of card information, of the transactions made with it, remembering never to overspend or delay payments and generally having a careful and wise banking-attitude will make you a good client and a satisfied customer at the same time.

Know Your Credit Card Rights

2008-08-04T14:11:00.007+07:00

When you apply for a credit card, the application that you sign is also a legally binding contract laying out all the terms between you and the bank, such as the interest rate and how its calculated, the grace period, whether there's an annual fee, etc. While you have to agree to the terms and sign if you want the credit card and while the lender will certainly hold you to the terms, the lender doesn't feel similarly committed.

Lenders like to constantly amend the terms, effectively changing the deal after it was made. This is one of the few industries where you can be charged more than you originally agreed to pay. One of the main reasons they're doing this is because they are constantly checking your credit score, looking for an excuse to raise rates and thus their income. So, even if you have never been late on any payment to any bank or utility, your credit score can raise as you're approaching your credit limits. Or you could have missed a payment or lost your job. Lenders have any number of excuses for their actions.

Also the lenders count on the customers not reading the little inserts filled with legal jargon they slip in with your bill or mail separately, at least until it's too late. Apparently the vast major of card holders never look at these amendments. Theu also hope that most of us are ignorant of our credit card rights. Not all changes to the credit card agreement are necessarily harmful to you, although you'll rarely find one being done in your interest. Most of them change minor terms of the agreement.

But they can contain nasty suprises as well.

The problem the lender has is that the original agreement is a binding contract that the lender can't change unilaterally. They have to give you an out. That's why it pays to pay attention and know your credit card rights.

I once had a credit card account with the stated interest rate of 13.5%. I was financially strapped and was using more and more of my available debt. I had never missed a payment or was late to anybody for at least 10 years.

However, not paying much mind to my statements, I did not know the bank sent me a notice that it would raise my rate if I used the card past a certain date. I did and I found myself facing an interest rate of 24%. Calling the bank and complaining and threatening to take my business elsewhere had no effect.

After that I started to pay more attention to those little slips of paper. Twice more different lenders tried to do the same thing. But I followed the directions on the amendments to the credit agreement and wrote the bank within the time frame given, telling them to cancel my account. You must no longer use the card afterward. If you do, you've accepted the new terms in spite of your letter and you're stuck with them.

If you have any automatic charges being made to the card, including things like credit insurance that the lender itself

sells you, make sure they are canceled in writing before the cutoff date. One little automatic charge will also constitute an acceptance of the changes in the credit terms. The bottom line is that the lender will consider any little slip in its favor and hit you with the higher rate.

As long as you continue to pay your bill under the terms of the original agreement, the bank can do nothing about it. You can pay off the bill at whatever pace you see fit, as long as you make the minimum payment.

I consider the lenders' actions as akin to kicking you while you're down. Most people wouldn't be using up their available credit unless they were already struggling. My credit card payments went up $46 per month on that card. I saved thousands by refusing to go along with other proposed increases.

The issuer of one of my cards that has carried a zero balance for several years has been periodically raising the rate to where it is about 25%.

Know your credit card rights and fight back. If you've haven't gone completely over the edge yet, you might find a lender willing to work with you.

What Are The Most Common Credit Card Mistakes?

2008-08-04T14:02:00.012+07:00

Now in a world with so many easy to get credit cards it can be easy for someone who is a first time credit card holder, or even someone who has several credit cards in the past to make mistakes when using the card.

One of the most common mistakes when using credit cards is to use the credit card to make purchases of things you are not really able to afford. Easy to get credit cards make it tempting to get a credit card in a store to make a large impulse buy, that you will end up paying for several times over in interest rates. People will often sign up for credit cards at baseball games, and on college campuses in order to receive free promotional items. While it is easy t get credit cards from these types of booths, the credit cards often will have a high interest rate, annual fees and memberships fees that you don't pay attention to when you sign up.

Another common mistake using credit cards is not reading the fine print in your credit card agreement. Many credit cards will have an introductory low interest rate, but after a certain time will be set at a much higher interest rate. Several other credit cards, especially those designed for college students, or individuals with bad credit will charge a membership fee, or an annual fee of the card. In many cases the fees you pay just for the privilege of having the card may be as much as if not more than the credit limit you are offered. Make sure to pay attention to these things BEFORE you use your card for the first time. Once the card is activated you are generally held responsible for any and all of the fees the credit card company wants to charge you.

It is easy to make mistakes when using credit cards, but also easy to save yourself from making mistakes. Reading the fine print of your credit card agreement, and only charging an amount that you can easily pay off at the end of the month will help you be a responsible credit card holder, and build fantastic credit for the future.

How To Use Your Credit Cards Wisely

2008-08-04T10:48:00.008+07:00

Are you one of the thousands pulling your hair out trying to figure out how you're going to pay your credit card bills? Using your credit cards wisely and sensibly will help you avoid financial problems and establish a strong credit rating, so here's some information to help you get your credit card problems under control.

Credit cards are convenient for buying things now and paying later. Credit card companies are in business to make money. Don't forget that every time you use your credit card you are borrowing money. You will pay a finance charge if you don't pay off your balance each month.

Millions of people use credit cards to avoid carrying large amounts of cash, for emergencies, to track spending, etc. However, charging more than your income allows can be worrisome and potentially devastating to your finances and your credit rating. The pitfalls of credit card use are the accumulation of large amounts of debt and the inability to make more than the minimum monthly payment.

It's important to look out for your own interests. Some credit card companies have lowered minimum monthly payments to less than two percent of the balance. It could take 30 years or more to pay off your credit cards if you pay only the minimum payment. Debit cards should not be confused with credit cards. There is no credit extended with a debit card. The money is deducted directly from your savings or checking account. The bottom line is don't spend more than you can afford to pay on a monthly basis.

Limit the number of credit card applications you fill out. There will be an inquiry into your credit report for each application you submit. Your credit report contains a record of every company or institution that has evaluated your credit. It reflects negatively on your credit score if you have an inquiry that does not lead to the issuance of a credit card. Obtaining too many credit cards can affect your ability to finance other purchases as well, such as homes or automobiles. Too much available credit can cause suspicion in the eyes of a lender as to your ability to repay your potential debt.

Consider what you are looking for in a credit card such as the interest rate, annual fee, grace period, and credit line. Be wary of companies offering cards with a low introductory interest rate that often lasts for only a brief period of time, after which they become considerably higher. The average interest rate for credit cards is over fifteen percent. Choose a credit card with no annual fee. Credit card issuers are paid a percentage from the vendor each time you make a purchase. Many companies have waived the annual fee to attract customers. Avoid cards offering a high credit limit. There is great potential to overspend. Instead, pay down your balance before using your card to make additional purchases. Send in your payment well ahead of the due date. Issuers may charge late fees, and late payments could result in a considerably higher interest rate than the advertised rate.

So the bottom line is by using your credit cards wisely you can reduce adverse effects of credit cards and maximize the benefits by spending wisely, using self-discipline, and paying off your balance as quickly as possible to avoid unnecessary fees.

Don't Fall for Credit Repair Scams

2008-08-04T10:41:00.003+07:00

We've all seen the ads on television or in magazines, shouting, "Erase bad debt!" or "Remove negative entries from your credit report!" If you're a person suffering from a less-than-stellar credit rating, those headlines may seem like the answer to a prayer.

The only problems is, those programs don't work, and to add insult to injury, you'll find yourself paying hefty fees to those companies, only to end up right where you started, or worse. Sometimes, what is couched as a credit repair program may actually be an attempt to steal your identity by gaining information about your social security number, bank accounts, and credit cards.

Here's how the credit repair scam generally works:

First, the company will contact the various credit bureaus and tell them that the negative information contained in your files is false. Since they want to accurately reflect your credit information, the credit bureaus will temporarily remove the negative information while they investigate the claims. Meanwhile, the scammer sends you a copy of your credit file, showing that the negative information has been removed, claiming that your credit history has now been repaired.

It will seem like a miracle, until you learn that as soon as the credit bureaus have completed their investigation, any accurate negative information will be returned to your credit report, and you'll be back where you started, minus the fees that you paid to the scammer.

The key concept to remember when it comes to your credit report is that accurate entries will stay on that report for seven years from the time they're reported to the credit agencies. Bankruptcies stay on a report for fourteen years.

There are many honest companies that can help you with debt problems. But how can you know if a company is legitimate? First, scammers will ask for their money up front, while legitimate credit repair companies can't require payment from their clients until they've performed the services they've promised. In many states, they must also give you a detailed written contract, clearly explaining your legal rights and giving you the option to cancel within three days.

The bottom line: know who you're dealing with when it comes to trying to repair your credit. Mistakes can cost you dearly, doing even more damage to your credit, creating even more debt problems, and sometimes costing large amounts of money.

Useful Tips on Personal Loans

2008-06-27T22:11:00.003+07:00

Here are some useful tips on Personal loans. You can find personal loan providers everywhere. Supermarkets, utility companies, junk mail, television, and magazines are only a few of the places where you can look for personal loans. However, with so many places to choose from, where do you start?

A personal loan is an amount of money which you borrow from a bank, building society or other financial institution. Ordinarily, you will receive a lump sum. In return, you agree to make regular repayments, usually monthly. Assuming you have taken out a repayment loan, some of the money you repay will go towards servicing the loan and the rest of your payment will be used to pay off capital and reduce the outstanding debt.

A personal loan can be a good option if you have a number of debts which you wish to consolidate into one loan. In doing so, you ought to be able to simplify your affairs and often reduce the overall cost of credit.

Banks, building societies and specialist finance companies all offer personal loans, so you will need to shop around. Different lenders have different preferences when deciding which borrowers to take on. As a borrower when you're considering one deal with another, make sure you're comparing like with like. The interest rate to look for is the Annual Percentage Rate (APR).

The APR (Annual Percentage Rate) is a method of providing a true comparison between different personal loan interest rates. It shows the true interest rate of the personal loan you are being offered.

The lower the APR on a loan the better because it means you have less interest to repay - so the loan is cheaper. Interest rates vary. And, it's worth bearing in mind that some lenders are only interested in lending to people whom they regard as a 'low risk'. These people may secure lower interest rates.

Lenders vary in their approach, they'll want to ask personal questions about your finances and your future plans before making up their mind on whether to lend and at what interest rate.

If you cannot pay back the loan for whatever reason, talk to your lender at the earliest opportunity. They'll want to consider carefully your individual situation. If they reasonably believe your financial situation may improve, they may be prepared to suspend loan repayments for a while or extend the term of the loan. In the final instance, they can insist on the debt being repaid.

You may freely reprint this article provided the author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Guide to Secured Loans

2008-06-27T22:06:00.002+07:00

Here is a useful guide to secured loans. A secured loan is a loan that a lender provides on the understanding that a property is secured against the loan. Secured loans are also commonly known as a homeowner loan, home loan or home owner loan.

Secured loans can be a sensible way to borrow for certain expensive items, such as home improvements or debt consolidation.

This type of loan is usually provided with a lower interest rate than an unsecured loan because you will have secured your property against it. They are normally quicker to arrange because the lender has some security to offset against the loan should you default on the repayments.

A secured loan enables homeowners to borrow capital and offset the risk against the value of their property. This means that anyone taking out a secured loan is effectively using their property to guarantee the loan. If the borrower fails with the repayments, there could be a possibility their home is at risk.

Because the loan is secured against your home, the interest rate should be cheaper than an unsecured loan and you may be able to borrow more. One of the major benefits of a secured loan is that the interest rate charged by the lender tends to be significantly lower than that of an unsecured loan.

A lower interest rate, which is calculated as the annual percentage rate (APR), means that more of your monthly repayment is going towards repaying the original loan, rather than being absorbed by the interest you have incurred along the way. The interest rate for your secured loan will depend on many factors such as the amount of loan requested, the terms of the loan and your personal details.

Also, you can cut your monthly payments by stretching the loan over a longer term anywhere between five and twenty-five years.

A secured loan is the perfect way to borrow between £5,000 and £75,000 at a low rate. Obviously the better your credit history and individual circumstances will affect the rate which is offered to you. You can be approved for a secured loan even if you have mortgage arrears, retired or have county court judgements.

The consequences of not being able to keep up your payments are much more serious than with an unsecured loan. The danger with a secured loan is if you are unable to keep up the repayments on your loan your home which secured the loan could be in danger. Should you fall into difficulties or are unable to make the repayments on your loan you will sooner or later lose your home.

This is why before taking out a secured loan it is vital that you consider your debt problems seriously and make sure that you have budgeted fully and can cover the loan repayments.

You may freely reprint this article provided the author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Tips For Getting Your First Credit Card

2008-06-27T21:54:00.002+07:00

When you apply for a credit card the bank will usually ask you questions regarding your previous credit lines. Most young people do not have any type of credit history and this makes the banks unable to positively respond to their application.

There are two things that you can do to go around this problem. One is looking for an issuer with a special offer, as there are many banks that offer credit cards for people who are just starting their first credit line. It is true that you will not have an extended credit line at first, but if you prove to be a good-payer and a loyal customer to the bank, you are likely to receive more credit line in time.

If, however you cannot find an issuer that will give you a first chance with credit lines, you will need to build a credit history yourself. You can do this by getting credit cards from gas stations or from stores. There are gas stations, as there are supermarkets and department stores, which offer fidelity credit cards to their customers. Once you become the owner of such a card, make sure to balance it wisely and after a couple of months you can re-apply for a bank-issued credit card.

Actually, the most useful tips for those who get their first credit cards now are not those about how to actually obtain the card but about how to use it. Some happy card holders hit the shops as soon as they have the little plastic card and spend much more than they can pay back. The banks will never like that and there are no exceptions or grace periods only because you are new.

All late payments count as bad credit and if you make such reckless spending, you are in danger of having your credit ceased as soon as it was approved. You will also be considered a "bad" client if you lose your credit card or if you forget credit card information often. Avoid carelessness when you deal with money and note down all the information regarding your card and the transactions you have made with it.

Another good advice that all new card holders should follow is about owning only one credit card in the beginning. This is a good idea because it helps you get familiarized with the banking world, the card system and it is also a test to see if you can balance money. After one year or so, of good credit history you may apply for a second credit card; however, if you've had payment problems it is wise to stick to that one single card until you can correctly manage card-money.

It is always difficult for new-comers to break through in the baking world, yet with patience and a bit of wits you can become the owner of a new credit card. The difficult and tricky part begins when you start balancing it. Keeping records of card information, of the transactions made with it, remembering never to overspend or delay payments and generally having a careful and wise banking-attitude will make you a good client and a satisfied customer at the same time.

Avoiding Credit Card Traps

2008-06-27T21:48:00.002+07:00

The next time you open your credit card statement, take a closer look at the small insert titled "changes to your credit card agreement". You know the one I'm speaking about. It's that small, folded paper written in legalese that you promise to read some other time (but of course that time never comes) or you just discard it with the other "junk" inserts.

First and foremost you must understand that using your credit card after you've received this notification results in your automatic "agreement" to the new terms in the notice. To prevent these new terms from affecting your account you must stop using that credit card immediately or by the date given in the notification statement.

The most common modifications to credit card agreements include new APR's (annual percentage rates), new fees and/or changes to existing fees, or a change to the grace period on your account. The grace period is the number of days during which any credit used for purchases may be repaid in full without incurring a finance charge.

Not knowing or not keeping track of the dollar amount limit on your card is another trap you should avoid. Credit card issuers will allow you to charge a small amount over the limit set on your account. However, don't be surprised when you get hit with an "over limit fee", usually around $35.00 or higher, on your next statement. Also, be prepared for your APR to be increased if you go over your credit limit.

You'll also trigger an increase to your interest rate if you miss your payment due date. Some companies consider your payment late if not received by noon or 1 p.m. on the date due. Along with the higher rate, you'll also pay a "late fee" of $29 on up. Be sure to use the company's preprinted envelope when sending your payment. These envelopes allow the pre-printed bar code to be scanned by the post office so that it can be delivered more efficiently.

If you've counted on those few extra days from the time you mail your check and the time the check clears your bank, beware! Many credit card issuers have switched from the traditional method of processing checks to a new electronic process. This new system shaves off a day or more from the traditional method it normally takes for your check to clear by electronically debiting your account.

If you're considering paying your credit card bills online, check to see if any additional fees will be charged for using this type of payment. I recently received an e-mail message from one of my credit card companies announcing how easy it would be to make my payments online. Included in fine print at the bottom of the e-mail was this note - "A fee of up to $14.95 may be charged for this service and will be deducted from your checking account". Hmmm, spend 37 cents on postage and mail my payment five days before the due date or pay now and get charged an additional $14.95 fee? I'll bet you can guess which choice I made.

Taking the time to carefully read and understand your credit card agreement now will help you save money by avoiding unnecessary fees or climbing interest rates later down the road.

How To Use Your Credit Cards Wisely

2008-06-27T20:30:00.003+07:00

Credit cards are convenient for buying things now and paying later. Credit card companies are in business to make money. Don't forget that every time you use your credit card you are borrowing money. You will pay a finance charge if you don't pay off your balance each month.

Millions of people use credit cards to avoid carrying large amounts of cash, for emergencies, to track spending, etc. However, charging more than your income allows can be worrisome and potentially devastating to your finances and your credit rating. The pitfalls of credit card use are the accumulation of large amounts of debt and the inability to make more than the minimum monthly payment.

It's important to look out for your own interests. Some credit card companies have lowered minimum monthly payments to less than two percent of the balance. It could take 30 years or more to pay off your credit cards if you pay only the minimum payment. Debit cards should not be confused with credit cards. There is no credit extended with a debit card. The money is deducted directly from your savings or checking account. The bottom line is don't spend more than you can afford to pay on a monthly basis.

Limit the number of credit card applications you fill out. There will be an inquiry into your credit report for each application you submit. Your credit report contains a record of every company or institution that has evaluated your credit. It reflects negatively on your credit score if you have an inquiry that does not lead to the issuance of a credit card. Obtaining too many credit cards can affect your ability to finance other purchases as well, such as homes or automobiles. Too much available credit can cause suspicion in the eyes of a lender as to your ability to repay your potential debt.

Consider what you are looking for in a credit card such as the interest rate, annual fee, grace period, and credit line. Be wary of companies offering cards with a low introductory interest rate that often lasts for only a brief period of time, after which they become considerably higher. The average interest rate for credit cards is over fifteen percent.

Choose a credit card with no annual fee. Credit card issuers are paid a percentage from the vendor each time you make a purchase. Many companies have waived the annual fee to attract customers. Avoid cards offering a high credit limit. There is great potential to overspend. Instead, pay down your balance before using your card to make additional purchases. Send in your payment well ahead of the due date. Issuers may charge late fees, and late payments could result in a considerably higher interest rate than the advertised rate.

So the bottom line is by using your credit cards wisely you can reduce adverse effects of credit cards and maximize the benefits by spending wisely, using self-discipline, and paying off your balance as quickly as possible to avoid unnecessary fees.