Thursday, July 9, 2009

For People who need to Repair Bad Credit




There are so many people who need credit cards now. This is a time when transactional flexibility is a necessity. People need their credit card. But sometimes, the more they use their card, the worse their financial situation turns out. It is a vicious cycle. We have become slaves to debt and this is exactly what the banks want. The people whose credit score are bad are also those who really need to have a better credit score for better rates.

So how do you go about repairing your credit score? In the face of all this mounting debt that you can’t seem to get out of, how can you possibly get

You can do this in many ways. First thing you should try if you have a lot of debt from different sources is a debt consolidation. Debt consolidation is a great way to lessen the hassle as well as the damage that interest rates will do to you over time. Basically, you lump all your debt (from your credit cards, your mortgages, etc.). The consolidation agency will pay for your debt from those sources. Now you will owe them but the interest rate will be significantly lowered as compared to the combined rates of your combined debts. It will also be made easier for you since you won’t have to worry about paying for multiple debts. You will only have to worry about paying for one debt every month. This is perhaps the best way for you to pay your debt and to be on the road to repair bad credit.

Monday, June 29, 2009

Discover Credit Card Application Tips

Do you want to discover credit card application tips that would surely help you? Is so then continue reading this post.

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First time card holders discover credit card application hazards only months or sometimes years after the application itself. These are all understandable. People without any prior experience in applying for credit cards can make many mistakes because the whole thing can be a big complicated mess of paperwork.

For any first time potential cardholder, what you need to learn about is the APR or annual percentage rates. The annual percentage rates are one of the most important things to know before you append your name to an application for. All creditors, both banks as independent credit card companies are mandated by law to clearly post the range of their APR for all their clients to see.

Believe it or not, the best APR’s you can get can fall down to as low as one or even zero percent. But this is not always the case and a first time credit card holder is rarely given such sweet offer. You see, as a person is just about to get his or her credit card, this means that you have yet to start your credit history. A person’s credit history is what determines his or her FICO score. You can get good or bad interest rates on any loan depending if the FICO score is good or bad.

Remember you might discover credit card application mishaps too late by not checking your card’s APR rate. So make sure that this is the first thing you check out the next time you fill up those forms.

Thursday, June 25, 2009

Should you go for the Credit Card with Best Interest Rate?


The crisis of the world economy nowadays is based on the bursting of the loan bubble. The credit card industry has been hit quite hard. I myself have been having some trouble in my credit card applications. One question that seems pertinent right now is: should one go for the credit card with best interest rate right now in this economic climate? It might be common sense for some people that the best thing to do is to get a credit card with a low interest rate, but this is not always the case. There can actually be some advantages in taking a credit card with a high interest rate.

You may not know it, but a high interest rate credit card may give your credit score a boost. For those who want to jump start their credit score, or who needs to fix their bad credit score, getting a credit card with more than 15 percent monthly interest rates will be advantageous because it will give you more points in a relatively shorter amount of time. But as you should well know, this technique is to be handled with caution. A person who has no self control with using plastic avoid getting a card with a high rate (although in some cases, a card with a high rate might just be what the doctor ordered for these people because it serves as a deterrent for their abuse of plastic as opposed to when they have a card with low rates which they would more likely abuse).

Another great advantage with a credit card that has a high interest rate is that more often than not, these have more allowance in their maximum credit. Also, a good number of high interest cards have great reward points systems as well. Thus, getting a credit card with best interest rate is not always the best choice.

Wednesday, June 17, 2009

Tips on How to Repair Bad Credit

Bad credit is a big hindrance that downgrades your purchasing power. A bad record on your finances is most probably the major reason behind all the rejection notices you are getting from your banks and lenders. With bad credit, you would get strings of no’s for your loan and credit card applications. For those who have an indelible blotch on their credit, do not fret. It is possible to repair bad credit and get a cleaner slate on your debts.

If your financial problems are already paralyzing you and limiting your purchasing power, taking the situation sitting down will not do you any good. Start finding ways to repair bad credit. Better yet, do not wait for the situation to go haywire. Be proactive and manage your finances properly before diving right into financial woes. Here are some preventive measures to save you the headaches caused by unpleasant credit records.

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1. Choose a credit card offer that suits your needs as a consumer. Do not sign any document without clearly understanding and reading the terms and conditions of the contract fully. Find out how they compute the interest rates penalties and clarify portions that are unclear to you. Remember that the type of credit card offer you sign up for can make or break your financial standing.

2. Do not stock up on credit cards. Unless you have the means to pay for all the bills, do not apply for more than one credit card. Sure having a hefty number of cards might boost your purchasing power, but if you cannot make the payments on time, having multiple credit cards would do you no good.

3. Monitor your spending. Track every purchase you make using your credit card. This would help you avoid going beyond your credit limit. Proper budgeting would keep you aware of the money that comes in and out of your bank. Keeping a close eye on your expenses could help you check inconsistencies on your credit card report.

4. Pay your bills on time.
I cannot emphasize this more. Many Americans have fallen into the trap of bad credit because of late payments. As late payments notices pile up, so will the interest rates and penalties that you have to pay. Make sure that you pay what is due to you on the dot.

Having bad credit is an obstacle that keeps you from achieving financial security and freedom. With the credit card bill already geared up to go full swing in months to come, many Americans are expected to repair bad credit easier and get their finances back on track.

Wednesday, June 3, 2009

Business Credit Card Trends

The country’s overall small business credit is still creeping up due to credit cards rather than other bank loans; this is going on at a very slow rate. This was reported by the SBMA (Small Business Administration) on its yearly reports that end on June of 2008.

This growth though imperceptibly slow, is steady and real. Top analysts have seen business lending swelling within one year. However, the increase was much sluggish compared to last year. The world wide credit problem is creating lower demand in the market. Therefore small businesses are also sluggish. All in all, the overall small business debt yet unpaid went up four points. It went up to the amount of more than seven hundred billion dollars in the one year period. This figure amounts to merely half the growth that was seen from small business credit card companies in the past twelve months.

Although all the information that is provided is still vague (the exact size of these so called “small” businesses that loaned from banks are not clear), what is clear is that the loans in the SBA analysis show those that were below a million dollars and those below a hundred thousand dollars. Specifically, lending that amounts to below a hundred thousand dollars usually come from small business credit card accounts.

But since all of these are trends from June 2008, things are significantly different today. The crash of Wall Street saw top lenders such as Advanta cut back and close small business credit accounts. Also, the new cardholder’s bill passed just a couple of weeks ago by the President Barack Obama has its own impact on these figures.

However, this report still shows a strong increase in the credit card industry at a time when larger sources of loans are slowing down. The biggest banks that lend money to small businesses have more than half of their capital loaned out. It seems that the big lenders are still focusing on credit card lending. This change in the scene might be a signal for a stimulated demand for the small business credit card despite recent losses, such as the closing of the Advanta Corp accounts.

Thursday, May 28, 2009

When Will Companies Apply Credit Card Bill Rules?

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There has been much rejoicing everywhere as President Barack Obama finally signed the new senate cardholder’s bill of rights. The millions of cardholders who were roused to anger are finally appeased. The anger was brought on by how companies apply credit card scams by creating confusing terms and conditions that seem inaccessible to the common layman. The next question in every one’s mind is: when and how will this new list of rules get implemented?

Unfortunately the answer is a big disappointment. The bill won’t take full effect until February next year 2010. Now this might seem like no big deal, but think of the ramifications and the trend we are now seeing.

Since the bill was being processed, credit card companies have all been increasing their interest rates, lowering credit limits, and generally tightening their belts. Of course this is partly due to the fact that the banking industry needs to secure their lending. In short, they purport that lending cannot continue if they don’t get the same amount of income they used to have. Although it is debatable whether they really have vested interest in the continuance of their good service or of their own personal gain (especially since this so called “good service” has not been seen for a long time).

It seems that lenders have been scrambling to disobey the new rules while they still can. Considering the state of the economy, the timing could not have been worse. Now more than ever, their services is at the utmost importance. Families and businesses need credit for flexibility of transactions since the cash flow is getting thinner and thinner.

Hopefully, the bill will be approved in time. Hopefully, the economy can still handle this one year.

Thursday, May 21, 2009

The Credit Card Puzzle

How many good credit card deals are out there in the market?

With more than two hundred major credit card companies in existence (not counting those that have only several credit card packages) there is a myriad of credit card deals available to anyone with income and a social security number.

The economy is in shambles. People need their credit cards now more than ever since so many need flexible payment. Studies show that people who are now paying their groceries with their credit card. This is a sign of just how heavily they rely on it. But this is also a time when interest rates are at an all time high. This leads many to think that credit card companies are using this economic crisis as an opportunity to get more profit at the expense of the already burdened consumer.

What is the government doing about this?

The Government is trying to nip this problem right away before it grows out of proportion. The cumulative credit card debt in America is going up to such heights (2.5 trillion dollars this March). The Credit Card bill is scheduled to be signed by President Barack Obama in less than a week. This bill seeks to put an end to all the tricks some card companies use to dupe consumers. Hiding surprise fees in hard to understand terms and fine print, utilizing arbitrary rate increases, giving out credit cards to those under twenty one years old, failure to give proper notice before any rate increase – all of these are subject to banning. After this bill is passed, surely there should be a lot more credit cards with clear terms. Now whether these are good credit card deals or not is uncertain. There are fears that basic rates and fees might be increased, but at least they won’t be hidden anymore.

Monday, May 4, 2009

Credit Card Processing Have a Lot of Benefits

There is a lot of online credit card processing being done everyday. It’s not a surprise --- more and more people are opting for credit cards as their mode of payment these days.

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What are the benefits of using online credit cards? Here are some of them.

First, it encourages a faster and safer processing of payments. When you use online credit cards, it reaches the vendor much more quickly because it does not take time for the money to go through different channels, thereby eliminating wasted time.

Second, online credit payment can save manpower and valuable resources, such as paper, ink, and etc. Personal transactions like these require people to do the job. And they won’t do their job if they will not be paid for it. Aside from additional manpower, there is also the issue of environmental wastage. Usually, personal transactions require supplies, such as paper, ink, pencils, etc. These can be avoided if you use online credit. Think of how many trees are saved just by doing this.

Third, these cards help in paying the amount that you give in the currency of your country. So if you buy a product in the United States and you live in Africa, then the payment that your vendor receives will be in dollars. This way, it saves time from having to convert different currencies from each other.

Fourth, you won’t have to arrange for the whole money in one instant when you are going to use your credit card. You can just pay for the whole amount and then pay it later after some time. For instance, you can buy a classy bag worth $450 by using your credit card. It doesn’t matter if you have $20 in your wallet. You can still buy it, as long as you are sure that you can pay the monthly payments consistently (if not, you will have to depend on another credit card processing to give you another credit card).

Sunday, May 3, 2009

Repair a Bad Credit in a Smarter Way

Let me tell you a story. Once upon a time, there was this girl who needed to repair a bad credit due to an emotional splurging she had after her break up with her boyfriend. What she did was simple, so simple it was kind of embarrassing already -- she didn't ask for help.

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So one day, she just went to this sleazy company who looked like a company. She got to know it through a flier that she picked up while walking along Sunset boulevard. At first glance, she thought it might be a good one because it had a very cool signboard in front of its building. Aside from that, she thought the receptionist looked very well-educated, judging from the intelligent way she answered the girl's questions and the cool way she carried herself.

When she got to the credit service representative, she was greeted by a charming, handsome, and smart-looking man. He said he was happy to see her, and asked what the problem she had with her credit card was. The girl asked what she needed to do to repair the damage. The man said that he will give the girl a new credit identity, and he will be the one to handle all the details, including her work details and financial details.

The girl, with all her naivete and equal stupidity, believed in the man, and allowed him to do as he pleased.

After a couple of months, the girl was in jail. Her offense? Fraud.

Make this a lesson for you. Don't just fall for any credit service because they have the right "package." Research more about them, and make sure that you ask a lot of people -- not just one.

Do this, and you won't have to experience what the girl did when she tried to repair a bad credit without studying it first. By the way, that girl who went to jail for fraud is me.

Wednesday, April 22, 2009

Credit Cards and Its Advantages

What are the advantages of having credit cards in your daily arsenal? There are a lot of them, although let me just give the top three:


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1. It’s quick. Credit cards are fast and easy to use, and you can even use it even when you are in a different country. So, you can access your financial stock up to your credit limit at any time, making them very useful for dealing with unexpected costs.

2. It’s very flexible. When you are out shopping and you suddenly realized that you are short of cash, then you can trust your plastic to help you go all the way. What’s more, you are given up to 56 days before you pay the interest. However, make it a habit to pay off as much off the credit card balance to avoid your interest from building up

3. It’s easily manageable. All your purchases will be listed, so it will be easier for you to know your past purchases, thereby eliminating the numerous receipts you get in every transaction. Also credit cards will help you check whether or not you bought an item or a service, which gives you a lot of security when it comes to checking the validity of your purchases.

Wednesday, April 15, 2009

Federal Loan Modification Should Be Handled by the Experts

Federal loan modification does not require rocket science, but it does require experience and knowledge of the mortgage and financial industry to make it work for you. Here are the reasons why you need the advice of an expert to get that much-needed approval.


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First, each lender has various ways of implementing the policies and approaches of their company. There are some “diva” lenders. They can choose if they want t work with your or not. Some have been in the company for so long that they can “tweak” the guidelines to their favor. There are many scenarios here, and if you are not careful, you might take a wrong turn and end up losing your chances at successfully negotiating new loan terms.

Second, lenders are a bit suspicious. Most suffer from paranoia at the start of your negotiations. They ask themselves if your can really get yourself out of the rut when you don’t have the means to do so. That’s why they won’t let you get by without grilling for details and hard proof. The truth is, you will be cross-examined more than that prisoner-of-war held captive in Iraq. Now, are you sure you’re confident enough to know everything the lender requires? Think again.

Third, time is running fast – really fast. Are you sure you have enough time to do the application yourself? With all the deadlines and cut-offs required by the lenders, can you still do them? Your life does not revolve around one area only. You also have your family, work, social and business obligations are all out there screaming for your attention. Who do you go to first? Really, you have enough worries of your own. Let the federal loan modification experts do all the worrying for you. You will thank me later when your application gets approved.

Wednesday, April 1, 2009

Stop Foreclosure Help – 3 Ways on How to Handle It

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Turning for a stop foreclosure help is a stressful time for everyone, and learning to handle it can make the difference on the quality of your life and your family as well. Use these guidelines to help you get started:

• Try to ask if the foreclosure proceedings can be stopped or delayed. Believe me, being a passive spectator is not going to be very helpful in your situation right now. The best thing is to take action. Start by going to the bank and asking how you can do it. Another possibility you can do is to borrow money or get a second job to help you in making your repayments. If you have a spare room in your house, use it to your advantage and have it rented out. There are so many creative things you can do pay your mortgage if you will just take time out from your busy schedule and do some brainstorming.

Make sure that you are in constant communication with your loan officer. Gaining his favor will make it much easier for you in negotiating a halt to your foreclosure proceedings.

• Contact a good credit counselor. Having a “bank home foreclosure” stamped on your credit report is not a good thing to have. The smartest thing you can do once you get a foreclosure notice from any financial institution is to contact one of the credit counseling companies that you can find in the directory. Usually, their services are free of charge, so don’t be scared that they will put a dent on your wallet.

Believe it or not, a lot of families have been saved by these well-informed credit counselors. Take advantage of their services.

• Find a place to live in. If the possibility of a foreclosure is really imminent, then immediately look for a place you can live in, such as an apartment, a house, or a condominium unit. If it’s difficult for you, try to solicit the help of your family and friends. You might be surprised at how many of them will offer their emotional, financial and spiritual help and encouragement during your time of need.

Trying get a stop foreclosure help is not an easy thing to be in. Aside from the financial difficulties that you have to surmount to, you will also have to face a lot of emotional, physical and mental problems as well. Make sure that you follow these guidelines so things will be much smoother for you to handle.

Thursday, March 26, 2009

Loan Modification Foreclosure

If you are going to ask me if you could renegotiate in case you still get a loan modification foreclosure from the bank, then my answer is a resounding yes. Allow me to explain:

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The loan modification process in not without negotiations, and if you are smart, you should use it in any way you can. In most cases, the first offer that is given by the lending company does not meet your long term goals. Therefore, you will have to renegotiate until you can find a common ground that is acceptable for all of you. Always remember that this is first and foremost, a business – so their main goal is to make money. Make sure that you do your homework by researching about loan modification so you won’t feel intimidated once they start bullying you with legal documents and arguments.

It’s sad but true -- there are many lending facilities that will use unscrupulous practices just so they can lure the borrower to agree on their own terms. Don’t fall into that trap. Do your homework so you can avoid a loan modification foreclosure from your bank. Believe me --- it’s worth saving your home.