Archive for October, 2009
by Jennifer Star
October 27th, 2009
On average how much does one secured credit card raise your credit score per month?
Does the amount of points double if I have 2 secured credit cards?
( assuming card has a $200 limit and is only charged $10 and paid off in full monthly)
I’ve read everything from 5 points to 30 per month!
Actually there isn’t a good way to predict how many points it will add. The FICO scoring model favors you having a balance of credit, including: revolving, installment and mortgage credit.
Therefore if you have NO revolving credit at all, opening a secured card and using it responsibly (keeping the balance below 10% of your available credit and paying on time), then your score will likely see a large jump. However, having more than one card doesn’t make the jump larger.
Opening new accounts decreases your "average age of accounts," which can temporarily lower your score. Therefore opening more than one credit account can actually harm your score.
Also, other things could be keeping your score down, such as recent lates or charge offs/collections.
I’d suggest getting one or two secured cards and using them responsibly. Check your score in 90 days, if the rest of your credit history is good, you will likely see a good increase.
by Jennifer Star
October 26th, 2009
In todays world of credit the difference between having a good life and just living is a number. What number am I referring to you ask? A FICO score. In other words a credit rating. Or as they put it, your credit risk level. Do you know your FICO score? Most people don’t. It is a number based on your credit history. These numbers range from 300-850, higher is better and most lenders base approval on them. Anything over 700 means you have excellent credit and you can get whatever loan you want with lower interest rates and good terms. While a number lower than 500 means your in some serious need of help. Anything in between means you can most likely get credit but on the financial institutions terms.
You may have an excellent job, gone to a good school but if your credit shows that you don’t pay your bills and that you have alot of dept you’ll have a horrible time trying to get any kind of credit, be it a mortgage, a car loan, a credit card, any kind of insurance, or any line of credit for that matter. Even employers are checking credit ratings to see if you’re responsible or not. Looking to lease an appartment? Chances are the landlord will be pulling your credit report. Pretty intimidating when everything you work for is in a number.
Here’s a look at how lenders rate you:
Credit score:
720 - 800 Superb! You get what you want
700 - 719 Wonderful! You get top rates & terms
680 - 699 Good! You get good rates & terms
660 - 679 All right. You pay higher costs & rates
640 - 659 Okay score if good income
620 - 639 Weak. You need good income & some money
600 - 619 Poor. Pay higher interest and higher loan costs
580 - 599 Almost impossible without a large down payment or a co-signer
Under 580 Work on fixing credit without delay
Now you’re probably wondering who comes up with these numbers. The credit scoring method was created by Fair Isaac Corporation in the 1950’s and is available from the three major credit bureau agencies- Equifax, Experian and Transunion. The three scores are usually a few points different from one another so creditors usually take the middle score as your base line. FICO scores are calculated based on your rating in five general categories:
1. Payment history
2. Amounts owed
3. Length of credit history
4. New credit
5. Types of credit used
If having good credit is important to you and it should be, then knowing your FICO score is essential. Check your credit score once every one to two years or five to six moths before you plan on applying for a loan. If it shows that you have excellent credit, good for you keep up the good work. If your report shows that you have a poor score start taking measures immediately.
The best ways to improve your FICO score is to always pay your bills on time. Have credit cards but manage them responsibly. Having credit cards and making timely payments will raise your FICO score. Lenders see People with no credit cards generally as being higher risk than people who manage credit cards responsibly.
If you haven’t established any credit, here are a few things you can do.
1. Open a bank account. Don’t overdraw your bank account
2. Apply for a credit card. Avoid missing or being late on payments. That is a sure way to damage your credit rating.
3. Consider a secured credit card.
4. Set a budget so you know what you can afford.
5. If declined ask why so that you may fix any errors on your report or work on the reason why they declined you.
Keep in mind that if you have had past credit problems FICO scores don’t let that effect your score forever. Your scores will improve when recent good payment shows up on your credit report. It will show that you’re trying to manage your credit.
Gina Fitzgerald
http://www.articlesbase.com/credit-articles/do-you-know-your-fico-136522.html
by Jennifer Star
October 26th, 2009
How do you go about obtaining a loan if you have a poor credit score? Is it even possible if you have declared bankruptcy? Well, the short answer is yes. It may be difficult however, so you should be ready to put up with a few rejections. You should also be ready to accept higher interest rates and tighter restrictions. You should also be wary of disreputable loan companies who specifically target those with poor credit ratings and offer them loans with excessive interest rates, unfair terms and very high penalties. With offers like this, it may be that you are better off without the loan than with it.
There are a variety of possibilities available however and some of them are worth considering. They range from unsecured credit cards, to mortgages secured over your home. Everyone, before taking on extra debt, should carefully assess how much they can afford, what are their needs and how much do they need to borrow. Lenders will need to see evidence of income so if you try to borrow a very large amount, you will likely be turned down. However, it is often possible to borrow far more than you can reasonably afford so think about how much you ask for too. If your credit rating is very bad you will have to adapt to these circumstances.
For example:
With a mortgage, you may have to supply a larger down payment. With a credit card you will face higher interest rates. For a personal loan you may have to supply security.
You should also understand that your bargaining power will be weaker if you have a poor credit rating. Some lenders will set up a plan under which your interest rates, and the terms of the loan, improve as you demonstrate responsible repayment of the loan. This can be a good option and you should ask your lender if they will consider this option. It may also be worth seeking the advice of a loan officer or debt counselor who will advise you on how much you can afford under your current budget.
In some cases, you will simply have to wait till your credit rating improves before you can make a desired purpose. Credit cards can demonstrate to lenders that you are a good risk, but they can be very dangerous for someone who has a history of over spending. You should also look into options such as transferring credit card balances to cards with lower rates. You can also negotiate with your lenders if you are having problems making repayments. At the end of the day, only consistently making on time repayments over an extended period of time will your credit rating improve.
Joseph Kenny is the webmaster of the loan information sites http://www.selectloans.co.uk/ and also http://www.ukpersonalloanstore.co.uk/. At the Personal Loan Store you can find all the different loan types explained.
Joseph Kenny
http://www.articlesbase.com/finance-articles/get-a-loan-with-a-poor-credit-rating-4051.html
by Jennifer Star
October 26th, 2009
When you look at the fact that the payments go directly to the credit card issuer, itâs easy for a cardholder to say that the credit card issuer is the one who benefits, but that line of thinking is certainly unfounded. After all, the credit card issuer did not take the credit card and buy things with it, and as such, it has no personal attachment to the merchandise that was purchased with the card it issued. The credit card issuer does not have anything to lose in the transactions because it is not his credit reputation that is going to be hurt if you are unable to make the payments. It is also not his family that is going to have to pay the credit card bill out of the estate if you should die without credit card protection insurance.
Of course, the credit card issuer benefits in the respect that he will get his money if you have credit protection insurance, but it isnât his major concern because he knows he will get his money as long as you are able to return to work at some point or if you die and he places a line on your estate. The one who stands to lose without credit protection insurance is the cardholder. After all, when the cardholder is unable to make the payments, it is his credit reputation that is at stake, and if the illness or condition lasts due long, it can financially ruin him.
The facts are that it is the cardholder who stands to lose the most in case of an illness or injury that prevents him from working if he has no credit card insurance. You have to be the one to take the steps to protect yourself and your financial well-being. You have to be the one to decide if you feel your credit rating is important enough that you should invest a few extra dollars per month to protect yourself with credit card protection insurance. The final decision is ultimately yours, but you want to remember that you are protecting your credit rating, financial well-being, and your family by taking advantage of credit card protection insurance. The price you pay is minimal in comparison to what you stand to lose by not taking the insurance. As the cardholder, you must decide what is most important.
Steve Campbell
http://www.articlesbase.com/debt-consolidation-articles/credit-card-insurance-who-really-benefits-129217.html
by Jennifer Star
October 26th, 2009
It is so easy to get heavily into debt on credit cards that you within a few months or even weeks you could find yourself not being able to keep up with the repayments. If this is the case, then you should think about consolidating your credit card debt. Consolidating your debt can make it easier to manage your money problems as well as helping you to save money. Here are some useful hints about consolidating credit card debt.
What is consolidation?
Consolidation is where you take all of your debts and combine them into one debt. For example, if you have 2 or 3 credit cards with a balance on them, you could get one credit card to cover all of the debts and transfer each balance onto this card. This way all of your debts are covered in one place and you only have one bill to pay.
How to consolidate?
There are different ways you can consolidate your credit card debt. One way is to get out a loan in order to cover your credit card debts and then pay off your credit cards using this loan. Then you can pay back the loan over a longer period of time. Although this is good because the interest rate will be lower than the credit cards, it will most likely take you longer to pay off. Another way is to get a credit card that has a limit that can cover the debts you have, or at least most of them. This way you can put all your debts in one place and pay them off.
Cards for consolidation
In order to consolidate your credit card debt onto one credit card, you need to make sure that you get the right card in order to make it worthwhile. Getting a card with a higher or equal interest rate than you currently have will not make any difference. Instead, look for a card with a lower interest rate that will help you to save money and pay off debts quicker.
0% cards
The best cards to get for consolidation are cards that offer 0% interest on balance transfers. Some of these cards offer 0% for up to one year, which will mean that you will pay no interest on the balance you transfer to the card for a year. This can save you a lot of money as well putting all your debt into one convenient place. For example, if you have a balance of around £3,000 to transfer from 15% cards, with 0% for a year you could save around £200. These cards are especially good if you can pay off the debt within the promotional period.
Cancel your cards
Remember, when you consolidate your credit card debt, it is important to cancel all or some of the cards that you have transferred from. Although cancelling too many cards can hurt your credit rating, it is better to cancel them, as this will stop you from being tempted to use them again and thereby further increasing your debt. If you have 2 or 3 cards with no balance, then get rid of all but one of them so that you have less chance of increasing your debt. If you consolidate your credit card debts correctly then you will make paying your bills easier and save yourself money on interest payments.
Peter Kenny
http://www.articlesbase.com/finance-articles/how-to-consolidate-credit-card-debt-129143.html
by Jennifer Star
October 26th, 2009
Do you know eBay?
It’s a good place to advertise your business and buy cheap products at the same time.
To save more money, follow these simple methods:
It’s important you know the highest price you will bid for the product
and stick with it. Don’t get caught up in a bidding war.
If the product’s description or picture isn’t detailed
enough for you, contact the merchant to get more
information before you bid. You don’t want to take a
chance to waste your hard earned money.
Know the value of the product before you bid. If
the product is brand new, check to see what price
retailers are charging for it. If the product is used or
reconditioned, you will want to pay way less than the
retail value.
Know the time the auction begins and ends. You
also want to know how long it will take to ship. If
you need the product by a certain date, you’ll want
to estimate the time it will take to receive it.
You can place a last minute bid. The other bidders
may not be keeping track of when the auction ends
or may not have the time to bid again.
Visit a few online auctions before bidding because
some merchants auction the same product in many
auctions. You usually can purchase the product for
a lower price in a unpopular auction because there
are less bidders.
Know the payment options the merchant accepts
before you bid on their product. If they only accept
checks or money orders, it may take even longer to
get the product because the payment has to clear. If
they accept credit cards make sure they have a secure
server.
Online auctions will, sometimes, allow you to check
the merchants history with their auction. Check to see
if people have complained about the their products or
business practices before you decide to bid.
Know if the merchant offers a warranty or money
back guarantee or before bidding on a product. You
don’t want to get stuck with a product that does not
work or you’re not satisfied with.
You know now how to advertise your business and buy in the best form you can from online auctions.
———————-
Massimo D’Amico has created solutions for business owners and the first software toolbar to download special programs without paying a dime. Cheap Software Toolbar
NOTE: You have permission to reprint this article within your website or newsletter as long as you leave the article fully intact and include the “About The Author” resource box.
Massimo Damico
http://www.articlesbase.com/business-articles/how-to-advertise-your-business-and-buy-from-online-auctions-88049.html
by Jennifer Star
October 26th, 2009
Do you know eBay?
It’s a good place to advertise your business and buy cheap products at the same time.
To save more money, follow these simple methods:
It’s important you know the highest price you will bid for the product
and stick with it. Don’t get caught up in a bidding war.
If the product’s description or picture isn’t detailed
enough for you, contact the merchant to get more
information before you bid. You don’t want to take a
chance to waste your hard earned money.
Know the value of the product before you bid. If
the product is brand new, check to see what price
retailers are charging for it. If the product is used or
reconditioned, you will want to pay way less than the
retail value.
Know the time the auction begins and ends. You
also want to know how long it will take to ship. If
you need the product by a certain date, you’ll want
to estimate the time it will take to receive it.
You can place a last minute bid. The other bidders
may not be keeping track of when the auction ends
or may not have the time to bid again.
Visit a few online auctions before bidding because
some merchants auction the same product in many
auctions. You usually can purchase the product for
a lower price in a unpopular auction because there
are less bidders.
Know the payment options the merchant accepts
before you bid on their product. If they only accept
checks or money orders, it may take even longer to
get the product because the payment has to clear. If
they accept credit cards make sure they have a secure
server.
Online auctions will, sometimes, allow you to check
the merchants history with their auction. Check to see
if people have complained about the their products or
business practices before you decide to bid.
Know if the merchant offers a warranty or money
back guarantee or before bidding on a product. You
don’t want to get stuck with a product that does not
work or you’re not satisfied with.
You know now how to advertise your business and buy in the best form you can from online auctions.
———————-
Massimo D’Amico has created solutions for business owners and the first software toolbar to download special programs without paying a dime. Cheap Software Toolbar
NOTE: You have permission to reprint this article within your website or newsletter as long as you leave the article fully intact and include the “About The Author” resource box.
Massimo Damico
http://www.articlesbase.com/business-articles/how-to-advertise-your-business-and-buy-from-online-auctions-88049.html
by Jennifer Star
October 25th, 2009
We bought a Discovery Kids ant farm with the blue gel in it and have not been able to collect 25 to 30 ants. I am not comfortable sending my credit card information through the US mail so I really would like to buy the ants locally.
BUY ants??? You’re kidding, right?
Where are you? Texas, right? Go out of town, find the first cow pasture you come to, take an empty Miracle Whip jar, and get all the ants you want. Free.
They may be fire ants, but they’re still ants.
by Jennifer Star
October 25th, 2009
You have credit rights and they are likely being violated. The best piece of credit repair advice that should be provided is that you need to be aware of those rights and how they are being violated. The United States credit system is in a state of crisis because people do not take credit repair advice to heart and, instead, make several errors in credit that turn the entire situation into a giant mess for everyone. People that are not all connected to you in any way can suffer from your low credit rating and your poor fiscal habits because it drives the costs and fees up for others. They will end up paying more for credit because you did not pay.
The United States Federal Trade Commission receives more complaints against credit bureaus than against any other type of business. The media has added to this by asserting the faulty notion that you can’t do anything about bad credit, which leaves most of the country in a confused crisis without a clear path to credit repair advice. Nobody wants to help and everybody ends up feeling lost and feeling that their best efforts to repay and refinance their credit card debt will be inherently useless and pointless. This could not be further from the truth as there is no time that is too late for paying back your debts and no end to the second or third chances that you can have with your personal credit.
Retaining Your Credit Privileges
As many Americans know, it is almost impossible to live today without living on some form of credit. If you are said to be “living on cash”, you are almost treated as a second class citizen despite having more than enough money to survive and adequately pay your bills. Credit privileges, however, are constantly revoked by baseless claims from credit bureaus that are often a result of erroneous credit card ratings and reports. A little credit repair advice can help in this situation because your credit rating needs to be repaired and examined by a professional.
For this reason, a piece of credit repair advice is to check your credit reports constantly. You should probably do this every three months. These reports cost about ten dollars each and will tell you what the world of finance is thinking about your finances. You can obtain these from the top credit bureaus in the country and should go over them with a fine tooth comb for errors and mistakes.
Paul Johnson
http://www.articlesbase.com/non-fiction-articles/newbie-credit-repair-advice-61904.html
by Jennifer Star
October 25th, 2009
Unsecured credit cards are specifically for those with good to excellent credit ratings. If you fall into that category you might want to consider getting an unsecured credit card. So what exactly are unsecured credit cards? These are credit cards that are issued without the need for any type of deposit. Another great thing about unsecured credit cards is the fact that in most cases there are usually no required balance minimum.
Most people who have credit cards carry unsecured credit cards of one form or another in their wallet, especially if they have good credit. Those with bad credit are typically denied unsecured credit cards because they pose a high risk of non-payment.
You will find there is no shortage of these types of credit cards available to you. Most often, every time you go to check the mail there is one or two offers waiting for you. This is a convenient way of obtaining unsecured credit cards. All you will have to do is fill the application out with the required information and then in a short time you will have your credit card. Of course, that is not the only way of obtaining unsecured credit cards. You can apply online and receive instant approval or even call them on the telephone to apply.
When searching for unsecured credit cards, you want to look for cards that offer great interest rates and incentives that appeal to you. Some cards offer rewards and rebates as incentives for using their cards. Other cards also come with very appealing introductory interest rates for the first six to twelve months as a cardholder. After the introductory rate has expired, you want to make sure you are getting a great interest rate then as well.
Doing some comparison-shopping on unsecured credit cards is suggested to make sure you get a card with terms and conditions that you can live with. One thing with credit cards is that it is easy to go from having excellent credit to having poor credit in a short time. Make sure you keep your balance paid and never spend more than you can afford.
Author
http://www.articlesbase.com/finance-articles/unsecured-credit-cards-the-good-and-the-bad-81876.html