Maintain Your Good Credit by Managing Your Credit Cards Responsibly

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Got a good credit score?  If not, do you want to improve your credit score?  Without good credit, getting a credit card, a car loan, or a mortgage is difficult, and even if you are able to get the credit you seek, you’ll have to pay a higher interest rate than someone who has good credit. 

One of the easiest ways to maintain your good credit score, or even to improve a less than perfect score, is to manage your credit cards responsibly, and the good news is, you can start today!

Establish Credit

If you have no credit history, or even a bad credit history, the first thing you need to do is to actually establish credit.  The easiest way to establish credit is to get a credit card.  Even if you’ve been denied credit in the past, or have bad debts, charge offs, or late payments on your record, you can still get a credit card. 

Begin by comparing the different types of credit cards available for your current credit score – don’t know your credit score?   Find out your credit score with this free trial.  Once you know your credit score, simply compare credit card offers based on your current credit score, and choose the one that has the lowest APR, charges little or no annual fee, and offers the best opportunity to improve your credit score.  (If you have bad credit, you may need to consider a secured credit card, but even these cards report regularly to the major credit bureaus, and can help you improve your credit score over time.)

Once you’ve decided on the best credit card in your scoring category, simply fill out the secure online application and await the delivery of your credit card. 

Keep Track of Your Purchases

Once you have succeeded in obtaining a credit card, you actually do want to use the card – just make sure that you use it wisely and keep track of your purchases.  Never charge more than 2/3 of your total credit line, which means if you have a $300 limit, never have a balance greater than $200.  Carrying a balance greater than 2/3 of your credit limit can actually harm your credit rating.

Pay Your Bill on Time Every Time

In order to maintain a good credit rating, and even to build your credit over time, you need to make sure that you pay your credit card payment on time, every time.  Paying late, or even missing your credit card payment, can negatively affect your credit score, and will can stay on your credit report for up to seven years.

And, if at all possible, always pay more than the minimum payment.  Not only does this reduce your balance faster, but as some credit card providers look at your ability to pay, paying more than the minimum payment can actually lead to an increase in your credit line.

Ask for a Credit Limit Increase

Over a period of time, and with a responsible history of managing your credit card, many companies will automatically increase your credit limit.  However, if this is not the case, you can also request a credit limit increase simply by calling the credit card issuer and speaking with a representative.

Increasing your credit limit is normally a good thing to do, as the higher amount of credit available, combined with the lowest overall credit usage, can significantly raise your credit score.  However, be advised, if you increase your credit limit, and also increase your credit usage by charging more purchases to your card, you may not see the desired improvements in your credit report.

Adding New Credit Lines

Once you’ve proven your credit worthiness, you will begin to see an improvement in your credit score, and you may even begin to see new credit card offers arrive in your mailbox.  Opening a new line of credit as the need arises is a good rule of thumb – for example, if you need to buy a new washer or dryer, replace the dishwasher or refrigerator, etc., then applying for a new line of credit is a necessity.  Just remember to pay it off as quickly as possible to keep your overall debt limit as low as possible.  

It’s also important to keep in mind that too many credit inquiries on your credit report can also negatively impact your credit score, so once or twice per year should be your limit!

 

 

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Rebuilding Credit after Bankruptcy

Filed under: Credit Tips

Applying for bankruptcy is an extremely responsible action. Whatever the cause, starting over from scratch is better than being caught in a cycle of debt. It is perfectly natural to experience a sense of relief after filing for bankruptcy. Rebuilding your debt is a slow process, but it does not have to be a stressful one.

1. If you are attempting to change your financial situation, you must adjust your attitude toward money. Think about everything that led to bankruptcy in the first place. Was there anything you could have done differently? Are there any old spending habits that you need to adjust?

Most of the time, people who are in debt develop a short-term attitude. Everything begins to revolve around paying this month`s bills and doing whatever it takes to make ends meet this month. This is something that we all resort to in a time of crisis or desperation, hence the common advice that one should “take things one day at a time”.

With finances, expenses and profits accumulate over a long period of time. Mortgages are usually paid off over thirty years. Investors consider it a success to turn over investment profits a year or two after initial expenses.

To stay out of debt, you must select loans, credit cards and a mortgage based on the long term. Actions like borrowing money from a cash advanced company might benefit you today but will hurt you a week from now. Always think about the big picture before making a financial decision.

2. Check your credit report. Just after filing for bankruptcy, some inaccuracies are likely to show up on your report, which will prevent you from building credit. Usually, these inaccuracies are a leftover from before you filed for bankruptcy. Keep copies of your bankruptcy documents in case you need evidence to prove that there are inaccuracies on your report. You filed for bankruptcy to get a fresh start, so make sure that nothing from your past is lingering or bringing you down.

3. Pay all of your bills early or on time. Even if you are hesitant to apply for a new credit card or to take out a loan, you can build credit by avoiding late fees. Most banks and companies offer automatic bill pay, so if this is a viable option for you, you should take advantage of it. Life gets busy, so you never know when paying a bill is going to slip your mind. Setting up automatic payments will help you feel less stressed and will prevent you from making late payments.

4. Start building up a savings account. Put aside a small percentage of what you make every time you get a paycheck. Having a savings account will provide you with a financial cushion in case you end up with insufficient funds one month or have a family emergency.

5. Apply for a credit card. This may sound scary since credit card abuse can lead to bankruptcy, but credit cards are the fastest way to earn credit. As long as you only make small purchases and pay off your balance every single month, credit cards will only help your credit. Compare the rates and benefits of various credit cards on Moneysupermarket.com to make sure you are getting the best deal possible.

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How Effective Are Secured Credit Cards in Credit Repair

Filed under: Credit Tips, News & Updates

Think you can’t get a credit card anymore?  Have you been affected by the recession?  Lost your job?  Lost your home in the housing bust?  You’re not alone.  Millions of people have been laid off, millions have lost their homes, and millions of people have lost their good credit standing as a result of the recession and it’s affect on their financial circumstances. 

Read more on How Effective Are Secured Credit Cards in Credit Repair…

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Options to consider before getting bad credit debt consolidation loan

Filed under: Credit Tips, News & Updates

There are many such lenders and sites that offer bad credit debt consolidation loans. But what exactly is debt consolidation and what is bad credit? Debt consolidation is one of the debt relief options that help you to lower the interest rate on your debts and also groups or rather consolidate the several debts that you have as a single large debt. Now, bad credit is when your credit rating – credit score and your credit report – is not good enough to help you in getting new credit. Thus, bad credit consolidation loans are the ones that are available even if you have bad credit.

Read more on Options to consider before getting bad credit debt consolidation loan…

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10 Side Effects of Extremely Bad Credit

Filed under: Articles, Credit Tips

Because your credit score is not a number you deal with daily, it often goes ignored.  Forgetting payments, maxing out a credit card, or ignoring your bills will all have a huge impact on your credit score and credit history.  A positive credit record will lead to lower interest rates, more job opportunities, and more possibilities to rent or buy a home.  Here are the most pressing side effects of bad credit:

1.         Credit and/or loan application not approved

The lower your credit score, the less likely you will be approved for a new line of credit.  Since you are a high risk for the lender, you are either denied completely or offered the loan at a high rate.

2.         High interest rates on credit cards and/ or loan

Because you are a high-risk borrower, some credit agencies will give you an incredibly high interest rate.  It is not uncommon for some credit cards to have as much as 30% APR!

3.         Not hired for job position

Many employers are checking potential employee’s credit report, especially in the financial industry.  If you have less than ideal credit, this may be a reason for your employer to look elsewhere for an employee.  CNN Money reports that 60% of employers use credit checks as part of the screening process for their new employees.

4.         High insurance premium

All insurance companies check your credit before offering you a premium.  It is statistically proven that consumers with lower credit scores file more insurance claims, therefore, it is said that these consumers deserve the most costly premiums (regardless of how many claims you actually filed).

5.         Denied for an apartment or house rental

Landlords almost always check your credit before offering up a lease agreement.  It is not uncommon for the consumers with the lowest credit scores to have much difficulty finding a place to live, if at all.

6.         Difficulty buying a vehicle

Want that new Toyota? Make sure your credit is stable.  Car dealerships use banks’ analysis of your credit report to determine a loan for you.  Bad credit can leave you with extremely high interest rates consequent excess expenses on your vehicle.

7.         Difficulty getting a cell phone contract

Cell phone companies always check credit since they offer their services in advance.  Obviously the company needs to see how financially responsible you are with payments before giving you the cell service.

8.         Difficulty starting your own business

In order to start a business, you usually need money in the form of a loan.  If you are unable to take out a loan due to bad credit, your business plans might never come to fruition, no matter how good the business idea.

9.         Calls from debt collectors

Many creditors will hire third-party debt collectors to collect the payment for past-due bills.  They will call your home phone, your cell phone, and even go as far as calling your family members to track your whereabouts.  These debt collectors will not leave you alone until your payment is made.

10.       High security deposits for utility accounts

Your electricity, cable, phone, and natural gas companies might require you to put down an initial deposit down before your service begins to ensure payment.  Companies frequently require this down payment as a part of the application process for consumers with bad credit.

Article Source: http://www.articlesbase.com/business-opportunities-articles/10-side-effects-of-extremely-bad-credit-4208260.html

About the Author

Extremely bad credit by Accurise accolades could only go so far. The economic storm that confronted everybody in late 2008 was a realization that everything was about to drastically change.

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Bad Credit Credit Cards are not Bad at All

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Bad credit history may greatly affect your future credit card applications, at least for the next seven years down the road. We know that bad credit does not just target the lazy person, it holds no discrimination as to whom it will target and it will not. Plus, many of us understand bad credit can sometimes feel like the end of the world, but it does not have to be. With bad credit, getting approved for a standard credit card can be difficult, if not impossible, and it is tough to get any type of unsecured credit card with bad credit. If you have bad credit, you may be under the impression that you are not able to apply for a credit card. However, today we have bad credit credit cards available to help us.

If you have bad credit, there are still credit card opportunities for you to apply to and even receive instant approval. That is one of the reasons bad credit credit cards are a highly searched item on the Internet. Bad credit credit cards are some of the most misunderstood financial tools of all time. They are intended to make it easier for many to obtain credit. That is because bad credit credit cards allow people with less than perfect credit, or no credit history to get on the right track and begin building or rebuilding their credit.

Bad credit cards approval is possible with many bad credit card applications, though bad credit cards approval may imply additional requirements, for the applicant. Bad credit charge cards are regular credit cards, except that the interest rates and fees may be a little higher, and they are specifically designed for those with no credit history, or adverse credit history. In many cases they are the best option for anyone who has a lot of debt and bad credit, also. As you can see, bad credit credit cards are unique cards geared towards people who have had trouble getting approved for a standard unsecured credit card. Once acquired and used correctly, bad credit credit cards help greatly to fix credit scores. Using a bad credit card the right way rebuilds your bad credit history, so, if your credit score needs improvement, do not hesitate, compare credit card offers and select a bad credit credit card to start rebuilding your credit score at once. After all, a bad credit credit card can be just the thing that saves your credit.

Bad credit credit cards can be a good way for consumers with poor, or no credit history to establish and build a solid credit history. They are offered by many banks as financial tools to help people establish or re-establish their good credit rating. Still, it is true that bad credit credit cards must be used responsibly, or your situation will just worsen. For all practical purposes, bad credit credit cards are just like regular credit cards, but they are specifically for high risk cardholders.

Bad credit credit cards charge various fees and offer various features and they are unlikely to be no annual fee credit cards, but you can search for the best low interest credit cards for poor credit. Bad credit usually attracts high APR on credit cards, plus bad credit credit cards often charge annual fees of up to $50 or more. In spite of the additional fees bad credit credit cards are an excellent method for the people with bad or no credit, to improve their credit rating and to enjoy the benefits of credit cards.

Bad credit credit cards are offered by many banks as financial tools to help people establish or re-establish their good credit rating. Though some consumers have a negative view of bad credit credit cards, they should not. Bad credit credit cards are primarily intended to make it easier to obtain and re-build credit, which is good for consumers and merchants as well.

Article Source: http://www.articlesbase.com/credit-articles/bad-credit-credit-cards-are-not-bad-at-all-162548.html

About the Author

Art Taylor has been a successful internet marketer for 10 years. He writes articles about credit cards and other topics. For more information or to apply for credit cards visit his websites at: {Credit Cards|Eshopperworld} or {Cards|Ecreditcardworld}.

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Bad credit credit card – A bad credit credit card

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“Bad credit card card” is used to refer to credit cards that can be obtained even with a bad credit rating. The bad credit card cards provide opportunity to people (with bad credit rating) to improve their credit rating. In that sense, bad credit credit cards act as rescuer for such people. So, bad credit credit cards also act as necessary a training ground for people who have not been able to control their spending urge in the past.

Bad credit card cards are commonly known as secured credit cards. The bad credit card card (or secured credit cards) requires the individual to open up an account with the credit card supplier and maintain some cash balance in the account. Why is that required? Well, credit cards are a business for the credit card suppliers; so how can they trust someone who has defaulted on his/her payments in the past? After all, a business is about profits and such risks are a threat to profits. The bank or the credit card supplier will generally pay interest on the balance in your account. However, it’s best to check this with the bad credit card card supplier/bank. The credit limit on the bad credit card card is determined by the cash balance in the account and is generally between 50-100% of the cash balance. These bad credit card cards are also referred to as debit cards, owing to the fact that they work less in a credit-giving manner and more in a debit-giving manner.

There are plenty of bad credit card cards available in the market. When searching for the bad credit card card that is best suited to you, you should consider 4 things in particular: the minimum balance that you are required to maintain in the bank account, the credit limit that you will receive (i.e. the percentage of your bank account balance that you are allowed to spend on your bad credit card card), the fees/other-charges applicable to the procurement of bad credit card card and the rate of interest that you will receive on the balance in your bank account. An ideal bad credit card card would have no fee/other-charges associated with it and would require zero or a very small amount as minimum bank balance. It would also have something like 90-100% of bank balance as its credit limit. Moreover, an ideal bad credit card card would also offer a good interest rate on the bank balance.

Bad credit card cards are really a good concept that provides respite to people with bad credit rating by letting them enjoy the benefits of credit cards while they mend their credit rating.

Article Source: http://www.articlesbase.com/finance-articles/bad-credit-credit-card-a-bad-credit-credit-card-1776107.html

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5 Major Drawbacks of Bad Credit Credit Card

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With a bad credit and less than perfect credit history, getting a credit card with competitive features is not that easy. In this article we take a look at the 5 major drawbacks that come with a bad credit credit card.

1. High APR

With a bad credit credit card the interest rates are reasonably higher. Forget those 0% intro APRs- they rarely come with a bad credit credit card. So, keep your credit card balances low, to stop this high APR from burning a hole in your pocket.

2. One time processing fee

Some credit card companies charge a processing fee for people with bad credit who apply for credit card. This is generally charged by credit card companies due to the credit checks, other formalities and risk involved in providing a credit card to bad credit people. If you are going for a secured bad credit credit card then this fees can be waived, otherwise it has to be paid. The catch here is that credit card companies demand upfront payment of processing fee. But, a wise credit card consumer will find a credit card company which charges the fees to the credit card not demands cash in advance.

3. High annual fee

Keeping the bad credit credit card is definitely going to cost a lot in terms of annual fees depending on the credit report it can go in hundreds of dollars per annum. Bad credit credit cards with 0 annual fees offer is very difficult to find.

4. High late payment fee

Late payment with a bad credit credit card is severely penalized. The credit card companies charge heavy late payment penalties on repayment default and are very quick in reporting the default to credit rating agencies with a bad credit credit card.

5. Lower credit limits

Since, the credit card companies face increased risk in providing credit card to bad credit people, therefore the credit limits are lower. The credit limits can be increased with secured bad credit credit card and proper repayment of credit card balances.

These 5 factors related with bad credit credit cards increase the cost of owning one. Comparing various credit card offers, especially, when you have a bad credit will help you lower the interest and fees burden of a bad credit credit card.

Article Source: http://www.articlesbase.com/credit-articles/5-major-drawbacks-of-bad-credit-credit-card-173758.html

About the Author

Duran Mueller an expert author and credit card consultant, provides great Advanta credit card tips. Read more credit card articles at his credit card website.

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Bad Credit Credit Cards: How You Can Avoid High Fees

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Individuals with problematic credit histories often suffer unfairly from high mortgage, insurance, and car loan rates. On top of that, they have difficulty getting approved for credit cards. The whole situation can get extremely frustrating. Frequently, I get emails from consumers wondering what they can do to rebuild their credit. The first thing I tell them is to get a credit card designed for people with bad credit. The second thing I tell them is written in bold: READ THE FINE PRINT.

There are only a limited number of credit cards for individuals with bad credit. At first glance, many look the same. They all help build and rebuild your credit by reporting to the major credit bureaus on a monthly basis. They all provide you with the Visa or Mastercard you need to make many purchases. And they are all necessary evils that can save you thousands of dollars in mortgage and car loan rates in the future. However, you must read the fine print before applying for one of these credit cards, as they often charge high yearly fees, set-up fees, and even monthly fees. Here, I will examine a few examples of charges current “bad credit” credit cards bury in the fine print. Of the three major cards I will examine, only one stands out as consumer-friendly.

“Bad Credit” Credit Card #1: This credit card charges a very low interest rate for an unsecured credit card. However, your first fine print glimpse reveals that there is a one time setup fee of $29. Not too bad. So far, since the next charge is a one time fee of $95. So far, we’re up to $124 in expenses. That’s got to be it, right? No. Add in another $48 for the annual fee and $6 per month in account maintenance fees. That’s brings the cost of your new credit card to $244 the first year, and $120 each additional year. This is no small change, and a card such as this should be considered only if you cannot be accepted for a better unsecured credit card for bad credit.

“Bad Credit” Credit Card #2: This credit card charges a very high interest rate for an unsecured credit card. This can’t be good. But the setup fee is only $29. Maybe this card isn’t so bad. There is that pesky monthly maintenance fee of $6.50 per month which brings the cost of this unsecured credit card to $107. Maybe we’ve found a bargain. Not quite. The annual fee is a whopping $150. Yes, $150 every year. That not only brings the initial cost up to $257, but you will also pay $228 a year just to maintain the credit card. There has to be a better offer.

“Bad Credit” Credit Card #3: This credit card is available as both a secured and unsecured credit card, based on the issuer’s review of your credit history. The interest rate is average, even competitive. Now, the fine print reveals that there is a one time setup fee. However, based on your credit, this fee can be as low as $0 or as high as $49. So far so good, especially if your credit is not that bad. But, there must be a huge annual fee. Not exactly. The annual fee for a secured credit card is only $35, and for an unsecured credit card, this fee can be as low as $39 or up to $79. So far, the cost of this card ranges from $35 to $128. Now its time for the monthly maintance fee. This one has to be huge. Or not. Its $0. That means the most you could possible be charged to obtain this credit card is $128, about half of what competing cards are charging.

Clearly, there are substantial difference between “bad credit” credit cards. Of the three offers we have examined, only one doesn’t take you to the cleaners. In fact, “bad credit” credit card #3 provides great value. All positive changes to your credit history and credit score will translate into lower loan rates, lower credit card interest rates, lower insurance rates, and ultimately, thousands of dollars in savings. The path to rebuilding credit has its costs, but in the long term, rebuilding your credit with a “bad credit” credit card is the fastest and most cost-efficient way to correct the often unfortunate circumstances that have damaged your credit in the first place.

Article Source: http://www.articlesbase.com/credit-articles/bad-credit-credit-cards-how-you-can-avoid-high-fees-3276881.html

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How Prepaid Debit Cards Can Help Establish Credit

Filed under: Credit Tips, Your Credit Score

If you’re having trouble getting approved for a credit card, a prepaid debit card may be just what you need. Unlike many regular credit cards, prepaid debit cards do not perform a credit check when you apply. So if you’ve had trouble with credit or have no credit, you’ll still be approved for a prepaid debit card. And these cards come with other benefits as well. A prepaid credit card can be the first step down the path to better credit.

How Prepaid Debit Cards Work

Prepaid debit cards are similar to both credit cards and debit cards. After getting approved for one, you’re able to deposit money into your new account. This is often referred to as “loading.” The amount of money you load on to your card is equal to your line of credit. When you swipe the card, the money is subtracted from the amount you deposited. As long as you have money on your card, you can make purchases. You can use the card anywhere that debit cards are accepted.

Having a prepaid debit card is similar to opening a checking account on a card. You can deposit money whenever you need to, and spend within your account limits. This system helps keep you far away from credit card debt.

Benefits of Prepaid Debit Cards

One big advantage of prepaid debit cards is that they are safer to carry than cash. You can shop for groceries, get gas, and purchase other items without the hassle of dollar bills crowding your wallet. And prepaid debit cards are accepted all over. If you have a card with the MasterCard or Visa logo, it can be used worldwide.

Another benefit of a prepaid debit card is that you don’t have to worry about paying monthly credit card bills. Since the amount at your disposal is equal to the balance in your account, you don’t spend money that you don’t have. This saves the headaches involved with high monthly bills and balances.

It’s easy to load money on to your prepaid debit card. Most cards let you reload any amount of money by calling and authorizing a transfer of funds. You can also do this online or through an ATM. This lets you control how much you want in your account.

Exploring your Options

Companies offer different types of prepaid debit cards. Before you sign up for one, check for additional fees and features. One card that lets you transfer money for free is the ReadyDebit card. With no credit checks and no security deposits required, you can begin using the card right away. It’s issued through Visa, so you can use it wherever Visa is accepted.

Another one to check out is the Prepaid Visa RushCard. With this card, there are no annual or monthly fees. You can use the card online or over the phone to make purchases. The Prepaid Visa RushCard also offers some shopping discounts at participating retailers.

A prepaid debit card may be just what you need to give your credit a boost. Check through the different options through credit card websites. The application process is easy. Once you get the card, you can start taking steps to get back on track in the credit card world.

Click here to compare current prepaid credit & debit card offers!

About the Author:  Robert Guthrie invites you to find out about chronic fever, constant hunger and other information? Get tips from the Health And Nutrition Tips website.

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