credit card deals

What Can You Discover With a Discover Credit Card?

2007-07-10T04:17:00.002-07:00

What's the next best thing to getting everything for free? It's a credit card that offers cash rewards and cash back bonus with every card use. At the same time, it allows you to choose how to claim your cash rewards. For every Discover credit card application, you are guaranteed to reap the benefits from one of the first credit cards to offer cash back bonus with every purchase you make.

Your Discover Credit Card Application: How to Qualify
The only main requirement for being approved for a Discover credit card is a good credit background.

Your Discover Credit Card Application: What to Expect
With a Discovery credit card, you are immediately entitled to a 1% cash back bonus on all purchases you make using the card. On top of this, Discover offers 5% cash back when you buy from any of the popular categories from over seventy participating partner brands. Its rewards listings change four times a year, so you could you're your pick from a wide selection of gifts. Furthermore, you could also reap 5% cash back when you use your card to pay for gas, airline tickets, movie tickets, dinner at your favorite restaurant, or an outfit from Sears, for example.

Discover credit cards offer you more options on how to redeem your cash back bonus reward. It is up to you whether you want to credit this bonus to your account, have it deposited to your account, accept it as a check, or receive it in cash.

Your Discover Credit Card Application: Which Card is Right for You
One important thing to be aware of when applying for a Discover credit card is your spending habits.

Getting a credit card is very easy. Because of this, very few people take the time to think about the type of credit card they're applying for. Consequently, most end up with a plastic that is entirely incompatible with the life that they lead, or the spending that they do.

In choosing which type of Discover credit card to apply for, ask yourself the following questions.

1. Do I spend impulsively on items, especially if these are what I consider must-haves?
2. Do I save a certain set percentage of any unexpected windfall? Or, do I spend everything in one go?
3. How do I plan to use my Discover credit card? Will it mostly be for shopping? Cash advances? Emergency spending?

Your answers to the questions above can help you evaluate which card best suits your spending and your finances.

Your Discover Credit Card Application: The Whole Enchilada

Aside from the 1% on all purchases and 5% cash back bonus on popular categories that vary four times a year, Discover credit cards offer you these added benefits:

- online account-related services
- travel accident insured up to $500,000
- zero liability to card owner for unauthorized card use
- anti-fraud protection
- great discounts at participating partner brands

In addition, Discover credit card offers an excellent customer service. Efficient, professional, and dedicated customer service representatives are on standby to be of assistance to you. You can be assured that your concerns will be attended to by knowledgeable personnel who can help you resolve any issues you may have regarding your Discover credit card account.

Process your Discover credit card application today and open the door to a world of good buys, great rewards, and wonderful discoveries.

It's Strictly Business With New Business Credit Cards

2007-07-10T04:17:00.001-07:00

There's one image of your childhood you can't erase from your mind. At the end of every weekday, your dad follows the same coming-home-from-the-office routine. He walks through the door, drops his briefcase heavily to the floor, and trudges to the living room, grunting at anyone who has the audacity to greet him. This ritual always baffled you, but over time, you realized that you must never work for someone who could turn a kind, loving person like your dad into the Grinch.

So, because life as a humble salaried employee doesn't appeal to you, you hatch the brilliant idea of owning your own business. Starting up your own company, however, required more work than you had imagined. The hours are long, the stress is unbelievable. Still, you persevere, and after some time, you turn a profit. You remember the image of your father at the end of the workday, and in a spurt of generosity, you reward your staff with new business credit cards.

Small Cards for Small Businesses
Small business starter credit cards are becoming chic due to the recent number of home and small businesses skyrocketing. Depending on how your company functions, you can avail of several new low-interest business credit cards for your workers, from companies such as Advanta, Chase, and Open.

Business Benefits
Each of the cards offers benefits that meet the needs of various types of employees. For example, several of the new business credit cards, such as the Advanta Platinum Business Custom Card, the Gold Delta SkyMiles Business Credit Card, and the Blue Cash for Business Credit Card boast of a 0% Introductory APR, with introductory periods ranging from 6 months to an incredible 15 months! Also, the regular APR of the new business credit cards is quite low, ranging from about 8% to 20%. Some of the cards collect no Annual Fees from their cardholders, offering a nice holiday bonus to people on your payroll. Some charge an Annual Fee while others charge an annual fee only after the first year. Credit cards that fall into the latter category include the Business Gold Rewards Card and the Business Green Rewards Card from American Express's OPEN program.

Custom Cards
While these cards have different perks, your employees have different responsibilities, and the new business credit cards can cater to them. American Express's JetBlue Business Credit Card is perfect for salesmen who spend more time out of the office than in it, or inspectors who must assess out-of-town operations. Use this card to get an exclusive 5% discount on JetBlue flights. Also, the card provides protection for your trips, which include Baggage Insurance, Damage Insurance, and Car Rental Loss.

For your employees who make purchases for your company, the American Express SimplyCash Business Card is the perfect plastic. This new business credit card offers cash back on office supplies, wireless services, and gas. For nearly all other purchases, they can earn 1% cash back.

Lastly, to reward your employees for all the time and effort they put in day in and out, consider the Advanta Platinum Business Card. This card can be personalized by including your company name at the card's top. Create a sense of unity and cooperation by providing this card for your employees. This new business credit card also features a maximum credit line of $50,000, and $0 Fraud Liability.

Not-So-Obvious Reasons To Want To Raise Your Credit Score

2007-07-10T04:15:00.000-07:00

There are tons of published reports of successful people and CEOs of companies who had bad credit problems by the time they graduated from college, and some with bad credit problems even before they graduated from high school. At those times in your life, having the ability to purchase things with "free money" is almost irresistible, but it sets up a habit that is tough to break and starts to put your credit rating on a downward spiral that increases in speed until you reach rock bottom.

Your credit score is calculated by the credit bureaus. There are three major credit bureaus – Equifax, TransUnion and Experian. But since they do not share information between them, and because different creditors and lenders report to different agencies, your credit score is almost certainly different, depending on the credit report you get from which agency.

A "perfect" credit score in today's world is 850, but you typically only get that if you are a multi-millionaire, have a significant number of accounts, and have not been past due with a bill since birth. A "good" credit score is around 700 and the average credit score is around 650. A score of 650 or more would indicate stability, being employed, keeping your financial head above water, with perhaps a few problems in years past but nothing really major. A score under 600 would be considered having bad credit.

But unless you have a credit score that is in the "excellent" to "perfect" range, and ESPECIALLY if you have bad credit, there are steps you must take to get your credit score raised. I am not talking about underhanded or illegal or shady tactics, but I am talking about things that most consumers don't know or don't take action on.

For example, did you know that a bad credit score can cause you to have to pay more for your car insurance premiums, even if you have never filed a claim? Did you know that if you are applying for a new job, your credit score with many companies carries even more weight than your qualifications for the job? Did you know that your mortgage interest rate could be as much as a full percent lower with good credit, which causes your mortgage payment to be hundreds of dollars higher just because of the bad credit you had when you got the mortgage?

Obtaining and keeping your credit score as high as possible is not just a one-time thing that you do and then forget about it. It is something that takes constant care and feeding, and regularly checking over. Does that sound like too much trouble? Only if you don't mind paying more for car insurance and loans and mortgages than you need to, or if you don't care about getting that higher-paying new job.

Settle your debts if you have past due accounts. Almost all creditors will work with you to come up with a payment plan that you can live with. They realize that if your account needs to go to their collections department, chances are that they may not even get the full amount owed, so for the most part they are willing to work something out. But it is YOUR responsibility to contact them and indicate a willingness to work something out. You would be surprised at how receptive they are to that.

Get a secured Visa or MasterCard account. This is one where your credit limit is exactly how much you have on deposit with the issuer. Use the card and make timely payments, which will be positively reflected on your credit report.

Get a copy of your credit report from each of the three major credit bureaus and go over it with a fine tooth comb. Chances are better than excellent that there are errors on the report. It is your right and DUTY to file a dispute with the credit bureau to get the inaccurate information removed, and if that was negative information (which it almost always is when erroneous data is reported), that will raise your credit score.

Also watch in your credit reports for accounts that you do not know about. The crime of identity theft is one of the fastest growing crimes of this century, and virtually anyone can be a victim of it. If you see accounts on your credit report that you have no idea what they are or where they came from, dispute it, because that could be an indication that you are a target of identity theft. Feel free to visit our web site to get more information about Prevent Identity Theft.

You can turn a bad credit score into a good credit score, but it does not happen overnight. But with work and diligence, it can be done and you will reap the rewards.

Six Ways To Find The Right Credit Card For You

2007-07-03T22:53:00.001-07:00

No matter where you go and what you do, you will need a means to pay for it. More often than not, you will be using some form of credit card. Credit cards are accepted by almost every vendor across the world.

Each has different rates, requirements, restrictions, rules, and yes, perks too.

The following are six easy steps to find the right credit card for you:

1.) Understand your credit - You must have a thorough understanding of how credit works before applying for credit cards in the first place. First, understand that the issuance of credit is a loan that must be paid back. Second, understand that you should pay your credit card bill on time monthly to avoid adverse information being placed on your credit file. Third, review your credit regularly; every 60 to 90 days is adequate. Fourth, if something is out of the ordinary, report it immediately.

2.) Know Thyself - Before you begin your investigation into currently available credit card offers, first evaluate your credit card needs, especially your spending habits and bill-paying habits. Why do you want another card? What do you plan to use it for primarily? Big purchases, regular use, or emergencies? Do you pay your monthly balances in full or do you pay them off slowly over time? Are you looking to consolidate debt or take advantage of an enticing rewards program? Once you know why you want a credit card and how you plan to use it, you're better able to evaluate which credit cards world best suit your needs.

3.)Prioritize Features - What qualities of your ideal credit card are most important to you? Low interest rate? Special 0% promotion on balance transfers? High limit? Airline miles? Cash back at the gas pump? Longer grace period? By the same token, ask yourself if there are any features that really don't matter to you that much at all.

4.)Compare, Contrast, and Narrow Your Choices - Now it's time to look closely at credit card offers currently available. Check with banks. Check online credit card directories and review sites. Check your mailbox for the latest offers. Check everywhere you can think of and rule out all those that don't meet your criteria. Now let's take a look at what you've got left.

5.)Look Deeper - Take this, hopefully, fine-tuned list of offers that meet your basic criteria and read the Terms and Conditions to all of them. Read all the fine print, no matter how tedious it seems. They may all look alike, but they're most definitely not. Find out what makes each of these cards different. Maybe one has an annual fee. Maybe one has a fee for balance transfers and another doesn't. Maybe one offers lower APRs on cash advances or better protection against identity theft or a heftier penalty for late payments. Each institution can devise their own rules and restrictions because as long as you agree to it by signing on the dotted line, it's valid and enforceable. What Terms and Conditions are you most willing to sign? Or, to put it another way, which one are you least unwilling to sign?

6.)Confirm - Confirms everything you've just found out about the card that you've decided to apply for. Applying for too many cards can damage your credit. Better to find one or two that seem right for you and apply only for those. Check with the bank or financial institution directly to confirm the terms of the offer and see if there are any additional stipulations not listed in the offer. Check third-party sources for reviews and customer feedback on your chosen credit card(s). Check with the Federal Reserve for the most updated version of any card's Terms and Conditions.

Are Your Revolving Accounts Lowering Your Credit Scores?

2007-07-03T22:52:00.002-07:00

One of the most important ways to achieve and maintain excellent FICO credit scores is to carefully manage your revolving credit.

When I say, "revolving credit," I'm referring to any credit account you have where the monthly payment can vary. Credit cards are the most common form of revolving credit.

Of course, "revolving credit" refers to almost everything in your wallet or purse that's plastic that you can use to buy something. This includes American Express, Discover, MasterCard, or Visa credit cards. This also includes retail store cards such as Macy's or Target, and gasoline cards.

The exceptions are check cards and debit cards. These little dudes may be plastic and have a MasterCard or Visa logo, but they aren't really credit cards. They're more like plastic checks than anything else. Debit cards have nothing to do with your credit scores.

Why your credit reports can show that your credit cards are maxed out when they're not

In my case, my credit scores were lower than they should have been because I was using my personal credit cards for my business. An easy fix...I just applied for a corporate card and began using only that card for anything business related. (You should do the same if you have a small business.)

A few small business leases were also reporting as revolving accounts on my personal credit reports. Those were simple to resolve by just paying the small amounts off.

Then, I did a quick analysis of my credit reports.

The only way to really discover if revolving credit is lowering your scores is to do a quick analysis of your revolving credit accounts. (I'll show you how at the end of this newsletter.) That's how I found the big culprit that was destroying my credit scores...

Beware of home equity lines of credit

When I analyzed my credit reports I got a big surprise...I discovered several of my home equity lines of credit (HELOCs) were being misinterpreted as credit card accounts.

This was fooling the FICO scoring model into thinking that I had an enormous amount of credit card debt. But of course, I didn't.

What I learned was that HELOC accounts can look exactly like a credit card account on your credit reports.

When I was trained by Fair Isaac Corporation, I got a different story. I was told there are two situations when a HELOC won't be mistaken as a revolving credit card:

1. When the original amount of the line of credit is more than $50,000
2. If the account has a narrative attached to it (e.g., equity line of credit or real estate)

Even though Fair Isaac claims the above is true, I didn't find that to be the case with my HELOCs.

It's bad enough that my HELOCs were being mistaken as credit cards...but to make matters worse...all of my HELOCs were maxed out!When a HELOC is mistaken as a credit card, and it's maxed out, then it looks like you have a high-limit credit card and you're using all of its available credit—which lowers your credit scores. Ouch!

My HELOCs were lowering my FICO scores, and it was making it more expensive for me to get personal and business credit. This HELOC issue was a tough nut to crack. We were able to pay off a few of the smaller HELOCs. But we couldn't afford to pay them all off. So we decided to refinance them into home equity installment loans (HEILs).

What's better—a HELOC or a HEIL?

There are a couple of important differences between a HELOC and a HEIL. Once you understand the differences you can strategize on what's best for your credit and financial situation.

Here are the differences:

- A HELOC is a revolving account. This means you can have variable monthly payments determined by the balance you owe each month. A HELOC also allows you to take some or all of the available credit out as you need it...just like a credit card.

- A HEIL is an installment account (just like a car loan or mortgage). This means you'll have the same payment every month until it's paid in full. A HEIL lets you take out only a fixed amount in one lump sum.

- A HELOC could be mistaken as a credit card account by the FICO scoring model because they report as revolving accounts. However, a HEIL cannot be mistaken as a credit card account because a HEIL appears on your credit reports as an installment account.

Because of the effect HELOCs may have on our credit scores, my wife and I are now committed to always using HEILs to tap equity in our properties even though the interest rates are usually higher.

How to protect yourself against holes in the credit system

Here's a strategy you can use to insure yourself against the flaws we've been talking about in the credit system. If you want to tap into your home's equity, apply for the highest HELOC amount you can qualify for. Just don't use more than 10% of the limit. The most essential part of this strategy is your discipline after you're approved. If you can keep yourself from going out and buying things with your new line of credit, you can really protect your credit scores.

This way, even if your HELOC is misinterpreted as a credit card, your credit scores can't be hurt...in fact, it could even help them. So, a HELOC can be a good thing if your balance is extremely low or nonexistent.

My Wake-up Call

Had I not performed a quick revolving analysis of my credit reports—I never would have known my credit scores were suffering because of a simple credit misinterpretation.

Think about all of the things that can lower your FICO scores...late payments...too much credit card debt...too many inquiries, etc.

These are legitimate and understandable reasons why your scores would go down. But to lose points for a silly loophole in how HELOCs are reported is just...irritating.

It goes to prove what I've been teaching for more than 10 years now...having good credit takes more than paying your bills on time. Way more.

Credit Card Traps

2007-07-03T22:52:00.001-07:00

One pitfall of credit cards is the cash advance. Most credit cards will issue you a Personal Identification Number (PIN) so that you can withdraw cash at any ATM, just like a debit or bank card. Although the convenience is great, so is the cost. Cash advances from credit cards rarely, if ever, have a repayment grace period. In other words, interest accrues on your cash advance the minute you pull a greenback out of an ATM machine. This is in contrast to a purchase, where you might be afforded a period in which interest does not accrue.

Additionally, credit card companies charge more for cash advances than they do for purchases. If you read the fine print on your credit card fee schedule, you might find that the APR for cash advances is different than that of purchases or balance transfers. Not only do you pay interest from the minute you withdraw cash, you are paying more interest than normal. You might save more money if you purchased an item and sold it yourself.

Some credit cards will also charge you a cash advance fee on top of the higher interest rate. Add to this the ATM fees that banks will charge, and you have perhaps the most expensive way to put cash in your pocket. It’s always good to have the option to withdraw cash from your credit card, but only use it in an extreme emergency situation.

Another pitfall of credit cards is fraud. The new buzzword these days is “identity theft.” With the proliferation of shopping over the internet, it has become increasingly easy to use a stolen credit card to make purchases, not to mention telephone and catalog purchases. Further, pre-approved credit card offers can be swiped from mailboxes. Sometimes these offers will come pre-printed with personal information, including your name, address, phone number, and even your date of birth and social security number. This makes it extremely easy for another person to open an account in your name, or even represent themselves as you with your existing accounts.

Make sure you dispose of any pre-approved credit card offers securely if you choose not to take advantage of them. If you have no intention of obtaining a credit card from these offers, you can write to the address contained in the offer to remove your name from any further solicitation.

When a credit card bill arrives, some people never actually read the bill. They only read the minimum payment due, and maybe the balance. By doing so, you could be missing out on any potential fraudulent charges, or even honest overcharges. Scrutinize your bill to ensure that all charges are legitimate. You should also scrutinize the amount charged, as you might have been overcharged for something you bought. This can happen if the amount of your charge is manually entered into the credit card machine, instead of the machine obtaining the information from the cash register.

You should pay special attention to your APR and the finances charges. Credit card companies can increase your interest rate with no prior notice or warning, and they are within their rights to do so. The fine print of their cardholder agreement outlines the instances in which they can increase your rate. These events can include a late payment (even if it’s only 1 day late), going over your credit limit, and even the lowering of your credit score.

If you find that your APR is higher than when you applied, find out why. If it relates to your credit score, you might be able to get your rate back down to the original level if you raise your score. Get a copy of your credit report, find out your score, and take the necessary steps to boost it. You’ll save hundreds of dollars in interest charges in the long-run.

Overextended Credit

2007-07-03T22:51:00.000-07:00

Perhaps you’re on the brink of entering this predicament. Perhaps you’re already months behind on some of your payments. There are a few steps you can take to dig out. First, write out all of your debts, including payments, balances owed, and interest rates. Include your mortgage or rent and every utility bill – cell phones, gym memberships, cable TV, car insurance, everything. Take inventory of everything you pay out.

With everything listed, prioritize which liabilities are the most important. Obviously, mortgage would earn the top spot on your list. Next would likely be your utility bills. Water, electric, and gas are absolute necessities.

After utilities, any car loan you might have would be pretty important, although you can look to reduce this expense. For example, you can sell your car and purchase a less expensive one. Hopefully, the new car will also be fuel efficient and less costly to insure.

Once you’ve budgeted for life’s top priorities, it’s time to start cutting the fat. See if there is anything you can cancel without penalty. Gym memberships, cable television subscriptions, magazine subscriptions, and even cell phones are not categorized as bare essentials. You can get television over the air for free. You can work out at home. You can go to the library or browse the bookstores to read magazines. You can get a pre-paid cell phone plan that doesn’t require a monthly commitment. Remember, once your financial affairs are straightened out, you can always re-subscribe.

This brings us to your credit cards. It is always important to pay all of your debt on time. However, if you are truly overextended, this may not be possible. If you know that you need to miss a payment on at least one or two cards, you should be proactive with your creditors.

Call each of your creditors and honestly explain your financial situation. Let them know that you will likely miss your next payment. Don’t make weak excuses. If you have a true hardship, you might find that your creditors might be willing to work with you. After all, it is in their best interest to do so.

If you’re already behind, many creditors will arrange a payment plan to help you to catch up. Let them know that you are sincere in your sentiment to bring your account current. Tell them how much you might be able to afford every month. Inform your creditors that you fully intend to catch up. Before you do, however, make sure you know exactly how much you can afford and stick to that number.

Unfortunately, it becomes a game of hardball. Either they have to accept a lower payment, or they accept no payment at all. If they agree to a lower payment, make sure you get the terms of the payment plan in writing. Some companies might charge you interest or penalties “in arrears.” This means that they’ll tack on the missed interest payment at the end of your loan, although this mostly applies to installment loans like car loans and mortgages.

If your situation is particularly dire, some creditors might allow you to skip a monthly payment or two, although this is rare. If they do offer it for you, be sure to get it in writing. You do not want to rely on the word of a customer service rep who might be working in a call center overseas.

Whether looking to request a payment plan, reduced payment, or a skipped payment, be persistent. If you don’t get the answer you’re looking for, call again. Most credit card companies are so large that you will never speak with the same person twice. Just because they all work for the same company doesn’t mean they all know what’s going on with your account. Call center workers have varying degrees of experience and responsibility. You just might get a different answer.

While you’re looking to negotiate with your creditors, keep an eye on your credit scores. You want to be able to minimize the damage to your credit. In fact, if you have a little time before you have to miss a payment, get a copy of your credit report to see what your credit picture looks like. If your score is a little low, look into ways to increase your score in the quickest amount of time. Then, you might be able to secure a debt relief loan to consolidate your debts.

Credit Monitoring Services

2007-07-03T22:48:00.000-07:00

Online credit monitoring services provide consumers with a suite of tools that help you to take proactive action in monitoring your credit report, while protecting your credit and identity information. Monitoring services notify you via email and/or wireless telephone instantly of any changes made to your credit report, which can help you identify fraudulent activity faster, and therefore minimize the negative impact it would have on your credit.

Notifications by Credit Monitoring Services

What types of activity will generate a notification or alert from the credit monitoring services? As a member of such a service, you’ll receive notification whenever your address has been changed, a new account has been opened, or when an existing account has been changed. This is extremely valuable information as you will know immediately if someone is attempting to use your good name to obtain financing. Time is of the essence when dealing with credit and identity fraud, and without credit monitoring services, it could be several months before you are aware of fraudulent activities.

Tips for Improving Credit

Most credit monitoring services also provide a host of tools that allow you to see what your credit score is at the current time, as well as steps you can take to improve it. Since credit scores are used to determine whether or not to extend individuals credit and at what interest rate; it’s important that your score be as high as possible.

Citi’s Credit Monitoring Service provides a very useful credit analyser function that allows members to determine the effects of several types of activities on their credit score. For example, if you’re considering applying for a car loan, you can use the analyser to determine how much of an impact applying will have on your score, as well as what would happen if you obtained the loan or applied and were denied the loan.

You can also use the analyser to view how missing a payment or two might effect your score overall, or determine which activities will raise your score the most and how long it will take. Extremely useful for individuals who are working diligently to improve their credit score, the Citi Credit Monitoring Service with credit analyser takes the guesswork out of improving your credit.

Identity Theft Insurance

Many credit monitoring services offer identity theft insurance programs that will reimburse members of the credit monitoring service up to a certain dollar amount if there are instances of fraud. (This service is not available to individuals living in the state of New York.) Typical expenses that are covered by identity theft insurance include:

* Lost wages for several weeks of work missed if you take time off to deal with the fraud
* Repayment of notary or certified mail costs for the delivery of affidavits.
* Long distance phone costs in conjunction with the fraud
* Attorney fees incurred for dealing with the fraud

Companies Offering Credit Monitoring Services

There are numerous companies that offer credit monitoring services. Most of the services offered are the same or similar, but a few companies having notable differences may make their services more beneficial to individuals. If you’re looking to improve your credit, you want to be sure a credit monitoring service offers an analyser, like Citi Credit Monitoring Service, TrueCredit, or Identity Guard.

If you want to see results from all credit bureaus, then it’s important that you select a company that provides access to all of the major credit bureaus and not just one. Equifax offers a credit monitoring service, but only for your credit information with Equifax. Each of the credit bureaus may report slightly different information, so you may want to go with a service that can provide access to all 3 of the major credit reports.

Need a Credit Card for Bad Credit?

2007-06-22T04:46:00.002-07:00

Have you been looking for a great credit card for bad credit? You're not alone. A good number of consumers have found themselves in credit trouble and in need of such a card. The problem is that there are dozens of bad credit credit card offers out there and I wouldn't wish more than half of those cards on my worst enemy.

How do you tell the good from the bad? By looking at these specific terms.

1. Interest

If you need a credit card for bad credit, you need to make sure you don't fall for the "you deserve a bad interest rate" line of thought. So you have damaged credit... So what? Everyone makes mistakes and it's not the end of the world. It definitely doesn't mean you should fork over 30 percent interest.

Believe it or not, you can find a credit card for bad credit that offers a decent interest rate. You just need to do a bit of searching. If a card charges more than 20-percent interest, run in the other direction.

2. Fees

Fees, fees and more fees... You would NOT believe some of the fees certain companies will try to charge you for a credit card for bad credit.

An annual fee IS acceptable. An annual fee of $100 or more is NOT. Also make sure that you don't get taken with any "processing" fees, "application" fees or monthly "participation" fees. You're going to be paying an annual fee and interest. There is absolutely no reason a credit card company should need more money than that to offer you a credit card for bad credit.

3. Up-Front Money

Has a company offering a credit card for bad credit tried talking you into sending money in up front (other than a security deposit)? If so, run in the other direction and run fast.

No legitimate credit card company makes you pay up front for a credit card for bad credit and they definitely won't make you pay hundreds of dollars for the privilege of carrying one of their cards. If a sales rep tells you otherwise, they're not offering a credit card for bad credit -- they're running a scam.

4. Grace Periods

Late payments got you here to begin with -- you want to avoid them at all costs. Making sure that you find a credit card that offers a reasonable grace period is key.

There are some bad credit credit card offers out there for cards that have a short grace period (or no grace period at all). Do yourself a favor and avoid them. Only apply for credit cards with a grace period of at least 20 days.

And, of course, remember that a bad credit credit card is a temporary solution. When you do find the right credit card for bad credit, make sure that you prove yourself and pay your bills on time each and every month. Then, in about a year, apply for a credit card with better terms and put your credit card for bad credit away for good.

Using Commercial Cards In Your Business

2007-06-22T04:46:00.001-07:00

Although credit cards are often associated with individuals, using credit cards within business is also a viable option. If you have a business, then using commercial credit cards could really help you to keep track of spending and improve your business cash flow. Here are some tips on how to use commercial credit cards in your business.

What are commercial cards?

Commercial cards are much the same as normal cards, except they are used for business purposes. This means a number of people can use the cards, and that you are not personally liable like you would be for a personal credit card. Commercial cards can be in the form of credit cards, charge cards or debit cards.

Different users

One advantage of having a commercial card is that a number of different people will be able to use the card. The cards can be used by a variety of staff, and you can even specify different credit limits for each card. This means you don’t need to be there all the time when large purchases are made for the company.

Monitoring spending

If you are a company that uses cash for minor expenditures like lunches or office equipment, then using a credit card instead will help to improve your budgeting and make it easier to monitor expenditure. With a credit card you can see exactly how much has been spent and what it has been spent on, meaning you can work out areas that expenses can be reduced or areas where more spending can be given.

Interest rates and fees

In general, commercial credit cards will have a higher interest rate than personal credit cards, mainly because the risks are higher and also because the credit limits will usually be larger. However, commercial credit cards often offer a longer interest-free period if the balance is paid in full, sometimes up to 56 days. This means you don’t have to deal with business expenses all at once if you are having a particularly costly month of expenditure.

Charge and debit cards

Although credit cards are the most common commercial cards, there are other cards available. Charge cards for business purposes are similar to regular charge cards, where the balance needs to be paid in full each month. This can be useful if you want to maintain a definite budget each month. However, charge cards usually come with an annual fee and don’t offer the flexibility of credit cards. Debit cards are a good option for small expenses like staff lunches or emergency items. They are usually given free with a business account and the money comes straight out of the account, meaning they are a faster and cheaper method than using cheques. Although there is the risk with all business cards that employees will spend too much, they are a convenient way of budgeting and reducing paperwork as well as stopping you from being personally liable for your business debts.

Liberty Union Debit Card - Great Budget Management With Credit Builder Features

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Ever wanted a prepaid debit card which has the convenience of credit card and comes with simply excellent features? Liberty Union Debit Card is for you. Safe and great for travel expenses this debit card, works like a credit card but you can spend only the amount you load into your account. The result, great budgeting a habit which pays for the entire lifetime. Let us take a close look at what all this Liberty Union Debit Cards has in store for us.

Like all other prepaid cards in the market the Liberty Union Debit Card, does not do any credit checks or verifications for issuing the debit card. This means a debit card with no employment verifications, no security deposits, no credit checks and there are no turndowns.Of course, the Liberty Union Debit Card will be issued according to the terms and conditions of the debit card company but, almost everyone gets accepted.

The fees associated with Liberty Union Debit Card is pretty low and there is no need for check cashing locations. With every issued Liberty Union Debit Card the company provides impeccable toll-free phone support, online and offline access and you don't even require a credit check or bank account to get the Liberty Union Debit Card.

Purchasing the Liberty Union Debit Card is very easy and there are multiple options to place money on this prepaid Visa card. The Liberty Union Debit Card holder can withdraw funds or make purchases up to the balance on the card. There is no overdraft facility available. And this means that there are no late fees or interest charges to be paid to anyone. Now, that's real cool.

The conveniences that comes with Liberty Union Debit Card are simply great. It eliminates check writing hassles, there are no security deposits, with the Liberty Union Debit Card you can pay your bills over the phone, and it keeps your money safe. The Liberty Union Debit Card replaces all your money and eliminates the risk associated with carrying cash.

Learning About Credit Card Transfers

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Unfortunately, credit card fraud happens way too often. This is why you should be very careful who you allow to see your credit card information. Be very careful whenever you do a credit card transfer. This way you will always be sure that you do not end up with a stolen credit card. Keep in mind that if you begin to feel like the company you want to use for a credit card transfer is not honest then do not use them.

Make sure that the company you might be doing a credit card transfer with has not been in trouble for stealing credit information. Also, make sure you know how long the company has been in business.Then you can be sure that they have not been doing anything wrong with your credit information.

If you are going to build credit card purchases online, make sure you only give your credit card data to businesses that are official and that have been established for a long time. The credit data should always be on a professional looking page.

When purchasing many things online, you might want to look into taking an account with a business that will take care of dealing with your credit understanding for you. Paypal is a great company to help you with these things, especially if you do a lot of things on Ebay. Paypal has been around for a long time and is very trustworthy.

Even if you're not buying online, you should always be careful regarding credit card transfers. You may find yourself dealing with a stolen credit card if you are not careful with your credit data.With this information applied to your life then you should be able to avoid most of the problems that might come up if the wrong business gets your credit card knowledge.

The Pros And Cons Of Prepaid Credit Cards

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Observers in the lending industry have estimated that there may be at least 50 million Americans who are not able to qualify for credit. These consumers are usually young, often members of the minority groups and unbanked…and they are faced with the long-standing dilemma of credit: how can I build my credit record if no one will give me any credit at all?

One of the answers offered by credit card companies is a variety of prepaid credit cards, designed for use by specific segments in the market. The prepaid credit cards are meant for that significant portion of the population that cannot meet the qualification criteria for regular credit cards, or who qualified before but have since lost their credit due to repeated defaults and other reasons.

Advantages of Prepaid Credit Cards For those who do not have enough credit history or have had it blemished, prepaid credit cards are an effective way to build or slowly rebuild credit. That may not happen immediately, but it is something to work on over time. The banks that issue prepaid credit cards are also prepared to extend normal credit the moment you are able to show that you have become a worthy credit risk.

For the moment, you may have to make do with prepaid credit cards. You can use prepaid credit cards as you would any other regular credit card to purchase airline tickets, reserve hotel rooms, or order items online.

Prepaid Credit Card for Students

There is a special prepaid Visa credit card for students, which offers a lot of convenience not only for the students but also for their parents. These reloadable prepaid credit cards offer parents several options on how to reload. Parents can add money to reloadable prepaid credit cards by depositing money, by arranging an automatic transfer of funds from their account (a deposit account or their own credit card account), or by online transfer. Using the prepaid Visa credit card is no different from giving the regular allowance to their child, only they do so by electronic means and there is no more cash that changes hands.

The big advantage of the prepaid Visa credit card is that the student is limited to spend only as much money as there is in the card. The parent is thus able to control to some extent the spending behavior of their child. They can use the prepaid credit card anywhere that the credit card brand is accepted.

Prepaid Credit Cards as Gift Certificates

Some prepaid credit cards function like gift certificates. You buy the prepaid credit card for a certain amount, and your recipient can purchase items with it at any of the brick-and-mortar stores or online merchants, and also for mail order items, that accept the particular credit card brand. Your recipient can use the prepaid credit card only up to the amount of money that you loaded on it. This particular version of prepaid credit cards is non-reloadable.

Like any gift certificate, recipients of prepaid credit cards can buy whatever it is they want at any time they want. Unlike a gift certificate that, when it gets lost is lost forever to the recipient, prepaid credit cards may be replaced if it gets lost or is stolen.

Prepaid Credit Cards for Travel There is a prepaid credit card designed for travel. These reloadable prepaid credit cards can be purchased in lieu of travelers’ checks or cash. In a way, it combines the best features of a credit card and a traveler’s check because of its convenience and security features. Should you lose the prepaid credit card while you are on travel, you can easily obtain an emergency replacement, both for the prepaid credit card and some cash.

Prepaid credit cards for travel are accepted all over the world, and also allow you to obtain currency from ATM machines. When you need to reload and you are already traveling you can arrange for the reload by phone or online. Apart from the fact that it is a prepaid credit card, you can use it exactly like a regular credit card. That also means you enjoy other benefits just like a regular card — reimbursements for lost luggage of up to $1,000 per cardholder if your luggage is lost; zero liability if your prepaid credit card is used fraudulently after you lose it or have it stolen from you; purchase security up to $500 per claim for any items you buy with prepaid credit cards, which subsequently gets stolen or damaged for certain reasons.

Generally, you can purchase prepaid credit cards of all the major credit card brands at their participating retailers. You don’t have to worry about not having acceptable credit because prepaid credit cards are made available without need of a credit report or a bank account. The only qualifications you need to have are that you have reached 18 years of age and that you must be able to present a valid identification issued by government.

Disadvantages of Prepaid Credit Cards

There are a few things about prepaid credit cards that may not be as convenient as the regular credit cards. For one thing, you load only so much money onto it. You will need to keep track of the balance on the prepaid credit card because not all of the merchant terminals where you use the card may be able to help you determine it. However, there are procedures that tell you how to determine your balance, and you will these detailed on the back of the prepaid credit card and in the instructions accompanying it.

The process of reloading your prepaid credit card may be a little inconvenient to some. If you’re using cash, you would have to visit the participating outlet where you bought your reloadable prepaid credit cards. The more convenient way will be reloading online.

There are also the charges. Prepaid credit cards impose an application fee, the amount of which varies with the issuer, and there is also a service charge that you have to pay monthly. You also have to pay for transaction fees, charges when you transfer funds to top up the balance, when you replace your prepaid credit card, and many other fees. To be sure about the fees, you should read closely the fine print on the prepaid credit card account.

Prospects of Prepaid Credit Cards

Prepaid credit cards do not provide credit; it is your money that you’re using. You are asked to pay other charges, so it is not for free. You are paying for the convenience and security of carrying plastic instead of large amounts of cash. People with bad credit will be able to act as if they had a regular credit card and enjoy the convenience of one.

Issuers of prepaid credit cards realize that it is a good way to monitor the credit behavior of the cardholder. A prepaid credit card would be a source of information that indicates to the credit bureaus and issuing lenders about how you as the individual cardholder use the card to pay your bills such as utilities. If these consumer data could be formatted in such a way as to provide the basis for a statistical model on probable future behavior in spending, then this could become the foundation for building a credit history.

You would benefit, because by using prepaid credit cards you are rebuilding your credit. The prepaid credit card issuers would benefit, too, because they would be making previously unproven customers bankable. More people could then qualify for regular credit, and that would mean tremendous incremental revenue for the lenders.

Role of Credit Bureaus in Credit Card Approvals

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If the credit bureaus rate your credit high, you may find your mailbox flooded with credit card offers from the thousands of credit card issuers in the country. There are many banks offering various credit cards, with rewards this and rewards that; platinum, gold, or silver; and so many variations thereof. You may get offers from your professional organization (lawyers, doctors, and engineers), your alumni association, and your environment club or sports association. Thousands of others, who are rated as safe payers by the various credit bureaus, receive similar offers. In fact, every year credit card issuers send out several hundred millions of offers.

To process all of the applications resulting from these offers, the credit card industry makes extensive use of quantification, or credit scoring, to double check whether an applicant should be issued a credit card (or even become target for other kinds of credit). The industry turns to credit bureaus for the quantification part.

The credit bureaus credit scoring systems give creditors the capability to evaluate millions of applicants on a consistent and impartial basis. This has made the credit card one of the most highly efficient methods of obtaining, granting, and expending loans. The credit bureaus base their credit scoring systems on large samples of the population in order to make it statistically valid.

In the credit card industry, the credit scoring system generally involves a two-step process.

First, your credit card application itself is scored by the credit card company. For example, if you own your home you are likely to get more points than if you only rent one. If your application obtains a sufficient number of points, then the credit card company buys your credit report from the three major credit bureaus.

The three credit bureaus operating nationwide are Transunion, Experian, and Equifax. The issuers buy from all three credit bureaus because your Experian credit report will have different ratings from your Equifax credit report, and the credit score Transunion will also differ from the rest. The variation exists because each of these credit bureaus will have different sets of businesses and creditors that report to them. Thus, although the parameters that the credit bureaus track may be similar, the quantification or credit scoring results will differ.

The score on the credit report issued by each of the credit bureaus is central to the decision to issue a card.

As the vice president of a company that is in the business of designing scoring models for lenders once described it, an applicant may submit an application that’s good as gold, but if the credit reports from the credit bureaus are lousy, the applicant will get turned down every time. In other words, it is the numbers on the ratings submitted by the credit bureaus, not the qualitative factors, which are ultimately decisive.

It may turn out, in the end, that the majority of applicants will get approved by one credit card firm or another. Because the profits from the credit card business are extraordinarily high, credit card firms can afford to have a small proportion of cardholders who are delinquent in paying their bills or even some of those who default on their debt. Nonetheless, it is in the interest of credit card companies to weed out those who will not be able to pay their accounts.

Scoring models of the credit bureaus will also vary from one locale to another, and these are regularly updated to reflect changing conditions. Despite great variation between the different credit bureaus’ reports, the following items generally receive the most weight:

· Possession of a number of credit and charge cards (30 per cent or more of the points). You should realize that if you own too many cards, this may cost points, and that having no cards at all may be an even more serious liability. Having too many cards will increase the amount of credit that is available to you at any time, and it would be easy to run up your debt by charging more to the various credit cards. This is what causes concern with the lenders. On the other hand, the credit bureaus believe not having a credit card at all is definitely alarming: there must be something terribly wrong.

· Record of paying off accumulated charges (25 percent or more of the points). You are likely to lose more points if you are delinquent on any of your credit cards than if you are late on a payment to a department store. The observed credit behavior that is common among the credit bureaus’ scoring models is that when people are having economic difficulties, they will try to stay current on their credit card payments but might let their department store bill slide. Thus, if you are delinquent on card bills, this is interpreted as an indication of serious financial difficulties. Delinquencies of 30 days might not cost you too many points, as allowance is given for late payments, but delinquencies of 60 days or more might well scuttle your chances of getting a new card.

· Suits, judgments, and bankruptcies involving the applicant. Bankruptcies are likely to be particularly damaging to your credit rating. Officers of credit bureaus explain that among lenders, they are not in any way forgiving about bankruptcy; the interpretation is that a bankrupt ripped off a creditor and got away with it legally.’

· Measures of stability. You will earn credit points for longer tenure on the job and in your place of residence. In the scoring models of credit bureaus, someone who has lived in the same place for three or more years might get twice as many points as someone who has recently moved.

· Income. It goes without saying that the higher your income, the greater the number of points you will earn from the credit bureaus on this parameter. It will certainly help if you have other income sources in addition to your job.

· Occupation and employer. If you belong to the highest-rated occupations, executives and professionals, you are likely to earn a large number of points from the credit bureaus. Similarly, being in the employ of a stable and profitable firm is likely to garner you many points, whereas employment in a firm on the edge of bankruptcy is likely to be very costly.

· Age. Generally, the older the applicant, the greater the number of points awarded by the credit bureaus. Those who have retired will probably earn fewer points on this aspect.

· Possession of savings and checking accounts. Checking accounts, because they tend to require more ability to manage finances, generally score twice as many points with the credit bureaus than savings accounts do.

· Homeownership (often 15 per cent of the total points). An applicant who owns a home is more stable than one who rents, has a sizable asset to protect, and is responsible for regular payments. This translates to higher points awarded by the credit bureaus.

The role of credit bureaus in making credit card approvals a speedy process cannot be overemphasized. Although you may think the system is arbitrary or impersonal, it does help make decision-making faster, more accurate, and more impartial than individuals. The credit bureaus thus take pains to ensure that their credit scoring models are properly designed to embody this impartiality and give equal credit opportunity — including those who may not garner enough points and become marginal cases in the overall credit scoring system.

What is a FICO Score?

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FICO Score

A FICO score is in reality a credit score and can tell if you can receive a credit card or not. If you are eligible it can determine how much of a limit you can have on your credit card. This score can carry a lot of impact on your future borrowing and can be disastrous in some cases. The information is collected in your credit report and creditors can use this to determine if you can pay back any monies that you may borrow from them. If you have a high score it is good so the higher your score the better risk you are to the creditor. If your score ranges from 700 to 719 you are able to obtain favorable terms, 675 to 699 is still a good standing, 620 to 674 score may give you a little trouble to get the credit you want, 560 to 619 you will have trouble obtaining credit and if your 500 to 559 then you need to start improving your score.

The score will give you a certain percentage in five categories such as your payment history takes thirty five percent, the amount you owe takes 30 percent, the length of your credit history takes fifteen percent and the types of credit you use takes up ten percent. Lenders look at your payment history and the 35 percent is made up of such things as credit cards, retail accounts, installment loans, finance company payments and mortgages. If you have had any past due accounts they will look at this and at the balance that you have and if you have had bankruptcy in the past they will look at that also. The amount owed, which takes up thirty percent, is based on what you owe on your credit at the time. It also takes into consideration how many accounts you have open at the time you're looking for more credit.

Credit Card Application in Canada

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There are various credit card providers to select from in Canada. As long as you have good credit, getting the appropriate credit card provide is no difficult task. In fact, financial organizations and banks make the whole process easy for you.

By doing the application online, Canadians find it quite convenient. There are a number of leading financial service banks and providers that are located in Canada and have no difficulty in selecting the right credit card service providers. This is because credit cards are popular especially in online transactions. Cities such as Vancouver, Toronto and Montreal accept credit cards from any merchant outlets.

There are so many ways in initiating the whole application process for a Canadian credit card. Especially in the time of communicating online, applications over the web are the priority. The processing time is faster than that of actual applications (wherein the individual personally visits the main office of the credit card provider.) It is important to know which credit card is suitable for you. Signing up for the wrong credit card service provider will only result to problems.

Most users look at the APR or the Annual Percentage Rate of their credit card provider options. They compare one to the other. They try to discover what kind of credit card is said to be the requirement basically because there are two kinds – the secured credit card and the unsecured credit card.

Getting a secured credit card means the person must have an excellent credit standing. Also, the processing time of the secured credit card is faster than that of the unsecured credit card. Unsecured credit cards are the last resort of those how have poor credit standing.

Nonetheless, the interests of both credit cards are still high. That is why it is important to compare one credit card provider to the next. Who knows? You might get a better deal if you took the time to compare the APRs.

When applying for a Canadian credit card, it is important that one has the creditworthiness needed for Canadian providers to grant credit cards. There are various credit card service providers but most of the request for collateral. As there are a lot of credit card service providers, it is important that the individual does some background study and research in order to get the credit card provider that is most suitable for him, his lifestyle and his budget.

Web portals and online journals serve as big guides in finding a good credit card. Canadian financial organizations often offer 411 seminars on the selection of credit card and the maintenance of a credit card standing at different times of the year.

Just remember that whenever you apply for a Canadian credit card online, you know what you are getting into. It is important that you know the figures and the facts involve before you sign anything else. You also have to make sure that your identity, and that of your loved ones, are secure whenever you do the application.

Before you sign up for any application online, do a background check on whether this credit card service provider is legal in the big cities in Canada. Once you are sure that this credit card service provider is the real thing and not a hoax, it’s time to do your thing.

Cash Gift Cards - Lazy Man's Option?

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Cash gift cards were formerly referred to as the “lazy man’s choice”. It was a way for people to avoid looking for specific gifts since giving gift cards would allow the recipient to make the choice themselves.

However, cash gift cards have enjoyed an increase in fame, with more people choosing them. Hectic lifestyles may be to blame. The combination of having no time and pleasing the gift recipient makes cash gift cards stay in style. So what better option than this person picking her own gift, according to what she wants?

Cash gift cards are available in any budget, from $10 to upwards of $1000. There can even be $2500 limits. They can also be customized to available card designs. Logos can be used by businesses to customize or design their own particular card.

Recently, cash gift cards have been used more and more by businesses. A useful tool for promoting goodwill, rewarding employees is another way of using these. The gift card option allows everyone to buy whatever they want, when they want

Visa, MasterCard, Discover, and American Express are the four companies that provide these cards. Stores also offer gift cards, but the major difference between the two is that store cards can be ‘cashed in’ only at the specified store, whereas cards like Visa and American Express can be used at any store where they use the brand credit card. Many banks also use cash gift cards.

Please note that just because they are called cash gift cards, it does not necessarily mean that the cards can be redeemed for cash. They are pre-paid gifts and work the same way as gift certificates. Bear in mind that many of these cards hold hidden fees and restrictions. The back of the card where the card policy is discussed should always be read with the eyes of a hawk.

Buying a Car with Bad Credit - Bank or Dealer Financing?

2007-06-19T04:05:00.001-07:00

So you want or need a new car but you have done some mistakes in the past that has led to a bad credit history? This is quite unfortunate but not an obstacle that you can't cope with. Many people experience difficulties when looking for a new car deal just because they have bankrupted before or simply have made more mistakes with their credit card usage or home mortgage repayment fees. Of course buying a new card with bad credit will not be that easy as buying a car with good credit history however it is possible.

The first thing to worry about is to get the financing right. You can borrow the money from someone; look for bank loans or car dealers' loans.

Bank loans. Despite the fact your credit history is bad there will be banks that will give you the money for your new car. You need to be persistent and patient and check as many banks as possible until you find the best deal.

Once you think you have found it all you need to do it to fill in a loan application and wait for the bank's approval. A significant advantage is that most of the banks have online applications that you can fill from the comfort of your home and without the embarrassment of speaking to bank assistants. Another advantage of applying for a credit with a bank is that most of the banks would respond quickly - usually within one business day. The terms of your credit will be clearly outlined in your contract and the risk of surprises later is almost not present.

Dealer financing. Many car dealers give financing to car buyers - both with bad or good credit history. If you haven't manage to find a loan from a bank than this is your only option.

Dealers would offer you much more flexibility than banks however their terms might not be that good in the long term. Usually you should watch out for "loops" in the contract that would allow the car dealer to change the interest rate drastically or the final car price.

Car dealers usually get the finances from other money institutions so you should be extra careful for the terms. Since you already have a bad credit history you should be extra careful about the terms of the new loan you are taking. Make sure you have read and understood the whole contract; if necessary speak to a professional before signing the documents. The last thing that you want is another unbearable loan that you wouldn't be able to pay off and that would harm your credit more.

Improving Your Standing On the Credit Score Range

2007-06-19T04:04:00.002-07:00

If you've ever fallen a couple of payments behind on your Penny's charge or maxed out your Clout Visa, chances are you've encountered phone calls with unfamiliar voices on the other end calling you by your first name. Your credit score's average is off the charts, mostly because there's no rating of -245 isn't in the 300-850 credit score range. Of course, since you're indebted to them for buying one too many pairs of Manolos last month, you have to put up with, "Get out your checkbook and pay your bills," or "I can promise you we're not the ones that you want to have problems with," right?

Quite the contrary, no matter how many overpriced Italian shoes you bought with no means of paying for, collectors have a set standard that they must adhere to in their effort to get the bill paid. In fact, said set standard has a name, it's called The Fair Debt Collection Practices Act; think of it as law enforcement for vultures-or bill collectors-which ever they prefer.

There are even ways to boost your place on the credit score range from bad to, dare we say it, an average score! Ok, ok, so average credit may not get you your beachfront house in Malibu anytime soon. But with Mel Gibson being from Malibu and all, it's only a matter of time before that neighborhood goes. A good credit average can get you out of that 1974 Ford Pinto and into something manufactured in the last decade or so.

Ways to Raise Credit Scores

According to the experts, countless Americans know about as much about ranges, scores, credit averages and how they stack up in it all, as they do about the War of 1812. Not very much, and what you don't know can hurt you.

Understanding were you score on the credit score range is the first step to raising your credit. Be advised that anything above 713 on the 800 point scale is considered good credit, anything below 600 could make getting a loan for a new condo iffy, at best.

You are entitled to one free credit report every year, although the concept of having to pay for a document that contains information about you smells a bit like a warped form of extortion, take advantage of the opportunity. There may just be something there that wasn't there before (Yes, that was a song featured in Disney's Beauty and the Beast). You won't know if you report contains a mistake unless you take a look at it. So get on the phone with Equifax, TransUnion or Experian.

A bad credit score would be a lot easier to stomach if everyone had one, and contrary to popular belief, most people don't. In fact, the average American falls in the 750-799 range, that's roughly 27%. Pay your bills on time: Late payments can lower a credit score by a much as twenty points. Having a $10,000 credit limit doesn't mean that you have to use it. Average scores can go up seventy points just by keeping those balances low.

Yes, all of those pre-qualified cards you get in the mail are tempting, but the more accounts you open, the lower you credit score becomes.

Credit cards are good for establishing credit....as long as their sole purpose isn't financing a daily shopping spree at Bebe. Manage your credit cards responsibly. A responsible cardholder has more options at their disposal than someone who has never had a credit card a day in their lives. How will they prove that they're capable of making payments.

Ask for a payment plan. If you owe American Express $3,000, and you've got $2,500, AE may be willing to settle the debt for that amount. It'll certainly save them legal fees and the pressure of securing a collection agency. Talk it out.

Closing an account that's been pestering you to death doesn't help anything, in fact they're often times still factored into your credit score. The key is dealing with debt. Chances are you're not David Copperfield and that's going to make playing a credit card disappearing act, a difficult feat.

Credit Cards with Rewards JP Chase

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JP Chase can be considered one of the pioneers of the modern bank credit card industry, when it issued its first credit card in 1958 along with the Bank of America. It continues to be a strong credit card issuer, and has introduced a few innovations of its own into the industry.

Over the past couple of months, JP Chase reaffirmed its commitment to establish a strong presence in the business credit card market, by being the first in the industry to issue credit cards with rewards for small business contractors. The JP Chase Contractor credit cards with rewards enable small business contractors to manage and improve their cash flow, by providing 60-day payment terms on qualified purchases in excess of $1,000.

Cash Rewards credit cards

Some JP Chase credit cards with rewards give the card holder cash rewards for usage. The contractors’ credit card is one such example, but there are JP Chase personal credit cards that offer the same cash rewards benefit. JP Chase credit cards with rewards for cash, may give between 2% up to as much as 5% cash back on certain purchases and 1% cash back on all other purchases.

The Chase Business cash rewards card is quite liberal with discounts and will give you 5% cash back on all kinds of purchases. A different card, the Chase Business Card with premier cash rebate will give 3% cash back on purchases at restaurants, gas stations, stand-alone office supplies stores, and home improvement and hardware stores. All other purchases receive 1% cash back.

When you choose between these JP Chase credit cards with rewards for cash, irrespective of whether it is a business credit card or a personal card, you should consider the nature of purchases that you make most often and go for the card that gives the most cash rewards for such purchases.

Flexible Rewards credit cards

Some JP Chase credit cards with rewards offer you flexible reward points. There are some cards that earn 1 point for every $1 spent, and others that earn as much as 3 points per Dollar spent on certain purchases.

The flexibility comes into play when you want to redeem the points. Unlike regular rewards cards, you are afforded a choice between travel, merchandise, cash, or gift certificates/cards. You are allowed to start redeeming when you reach 2,500 points. As a further sweetener, flexible rewards credit cards do not charge any annual fees.

If you select cash redemption, you will get $25 for every 2,500 points (equivalent to a 1% cash back reward). Redemption for travel may be done through an airline ticket, car rentals or hotel stays. If you opt for merchandise, you are given a pick of several products from well-known brands.

Regular Rewards credit cards

Regular rewards cards refer to traditional credit cards with rewards for frequent flyer miles and cash rewards. When you redeem your points for airline tickets through a travel agency service, you are normally charged a fee. You are also subject to restrictions such as space availability and fare classifications. There is also an advance ticketing period of 21 days.

In all of these JP Chase credit cards with rewards, you earn points only on actual purchases not on balances transferred, other non-purchase transactions and cash advances.

Virtual Prepaid Credit Cards

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Cardholders can sign up for the free program at their credit card company's website. When they want to make an online purchase, they receive a 16-digit number, randomly generated by the credit card company. This temporary credit card number can be used once or sometimes repeatedly at the same online store.

virtual prepaid credit card numbers were initially designed for Internet shopping, but can be also used for purchases made over the phone as well as through the mail. However, they cannot be used for in-store purchases or whenever a traditional plastic credit card is required for payment.

The virtual credit card technology has been around for six years, but according to consumer advocates the technology has not been very popular with consumers. Interest in virtual credit cards seems to be increasing, though, thanks to recent headlines regarding identity theft breaches. A major benefit of virtual card programs is that personal information is concealed during the transaction.

A recent study found that 46% of credit card fraud victims had no idea how fraud occurred, but 21% said they believed their credit card number was stolen off the Internet. Obviously, card issuers hope that virtual card programs will help address such concerns.

The virtual card program is simply an extra layer of security to protect the credit and identity of consumers who choose to buy online, much like installing a home security system helps to protect a home from intruders.

Is online shopping really safe?
Stories of high-tech hackers breaking into company databases on the Internet to steal customer information (such as credit card numbers) stop many people from making online purchases. Although these types of problems don’t happen often, there is an ever-present fear among consumers that the wrong person may get hold of their credit card number or other private information.

Because of booming e-commerce and the love affair with the Internet, there is much at stake for credit card companies should these problems or fears get out of hand. As you might expect, companies are working quickly with new technology to stop the problems and calm the fears of their customers. Their solution? Disposable or temporary credit card transaction numbers.

Private Payments assigns unique random numbers that are linked to a consumer’s actual card account, but the numbers are only temporary and do not reveal any private information. This temporary credit card number is good for one purchase only, meaning that it does no good for someone to swipe that number because they won’t be able to use it after the initial purchase.

For example, each single-use card number is unique to an online store that you visit and will not be valid at any other store. In addition, you may use the same number for recurring charges such as monthly bills that you elect to pay online. Although disposable credit card numbers are not available with every company yet, do not be surprised if these types of programs are offered by most major credit card companies soon. Regardless of whether you take advantage of disposable card numbers , you should always protect yourself with safe Internet shopping practices.

Insolvency London, UK - System in Peril

2007-06-19T04:03:00.001-07:00

The British insolvency code is under attack from small to medium sized business owners. There are elements of the code that said owners find quite biased. Here, in a nutshell, we will expose a few of the issues to stimulate further research.

Economist contend that when secured creditors hold all, or nearly all, control rights for a company in distress, then it creates an non-objective tendency towards liquidation. It is further argued that small and multi-party creditors are difficult to rescue when insolvency standards are not based with collective action. It is proposed that they in turn will not succeed in realizing the value of collective action, and thereby panic themselves into a ‘creditor’s run’ mentality.

‘Lazy banks’ are created as a result of heavy collateral lending in the UK banking system. With such collateral on the line, the banks fail to monitor the vitality of businesses until they are in financial distress. Lenders therefore possess superior bargaining positions in terms of working out agreements. This often prevents valuable renegotiations from taking place. On a more positive note, companies are often spared mandatory insolvency proceedings if they replace management and make substantial, yet partial repayments of principal.

Unlike in the US, the British insolvency code is operated almost entirely outside of the court system. The bank’s powers are seldom questioned or challenged. It is prevalently argued that this undisputed control exerted by the banking system hinders competition in the general marketplace.

The most common method of recuperation before forced insolvency utilized by business owners and individuals in financial distress are CVAs and IVAs. CVAs (Company Voluntary Arrangements) allow a company to settle their debts. Current directors remain in control of the business. Creditors favor CVAs because they receive more with these than a company that goes under. They ease cash flow issues and stop court actions.

Individual Voluntary Arrangements (IVAs) likewise allow individuals to relax by stopping chasing letters and court actions. They also freeze interest from accruing on debts. Both CVAs and IVAs must have cooperation from 75% or more of a company’s or individual’s creditors.

Credit Scores And The Mortgage Loan Application Process

2007-06-19T03:51:00.000-07:00

You've probably heard that your credit score is important to getting a mortgage, but maybe you don't really know what your score is and what it means to your mortgage loan application process.

Let's start with the basics. Your credit score is actually called your FICO score. FICO refers to the credit reporting agency Fair Isaac Corporation that lenders turn to when it comes time for credit scoring of home loan mortgage application. Although the exact formula for deriving a credit score isn’t known, we do know that your credit score is based on your total amount of debt, your repayments of debt in the past, and the availability of credit.

FICO scores can range from 300 to 850. The higher your score the better; while 850 represents the “perfect” credit score, no one ever attains the perfect score (well, maybe Bill Gates or Warren Buffett).

When it comes time to take out a mortgage, your FICO score means a lot. First, the decision of whether you will get a mortgage at all rests on your credit score. If your score is lower than 500, chances are you won’t be able to qualify for a home loan. You should work with a mortgage expert or credit counselor to find ways to raise your score. It may take some time, but it’s not impossible.

If you have a credit score that ranges between 500 and 600, you should be able to qualify for a mortgage loan. You will have to make a down payment on the loan, and you might have to pay a slightly higher interest rate, but you can buy a home.

If your score is between 600 and 640, you should have no problems finding a loan with a good interest. You should also be eligible for a variety of minimal down payment mortgage loan programs.

If your score is between 640 and 700, you are in excellent credit shape. Not only can you qualify for a loan, you can qualify for loan programs that don’t require down payments and offer great interest rates.

As you can see, your credit score is one way of determining what level of risk you are to the lender. When you have a higher credit score, you present little credit risk to a lender or financial institution. These lenders are more interested in offering competitive mortgage programs to individuals.

No one wants to be merely a number, but when it comes to the mortgage loan application process, your FICO score is an incredibly important number. You should protect your credit score by carefully evaluating your available credit, your debt ratio and how quickly you repay your debts. It’s an important asset in your financial health.

Steve Essington has been in the mortgage business for over 9 years. He is licensed in Arizona, New Mexico, Oklahoma and California. Steve believes in smart financial planning for today and tomorrow and that integrity always comes first.

Court Awarded Money Can Be Yours Today With Settlement Loans

2007-04-17T05:20:00.001-07:00

People find the settlement loans extremely advantageous, or at least most of the time. The negative part about the legal processes is its length that most of the time is longer than the paying ability one claimant has. Such finances turn the claimant into a free-temptation to settle early and for a lesser-than-hoped-for amount. Settlement loans are usually obtained a in a speed process, because the financier generally does not ask for any other collateral except for the eventual settling of the claimant’s claim. The loan recipient is taking more advantage from it as the lender cannot ask for reimbursement unless the claim is settled. A big interest rate will compensate for this. There are many lending institutions that apply this and the borrower can still shop around for the best offer.

Neither credit, employment requirement or any up-front fees or processing charges involved do not qualify the settlement loans. In such cases the claimants who must tarry their time until their claims are favorably settled. Such settlement loans will allow them to cover the costs of daily living, legal expenses, medical bills, professional maintenance costs, investigator’s charges, etc. The terms of interest seem to have favorable terms as the financing firms have become very competitive in priding settlement loans and vie with each other for customers. As the flexibility has increased as far as the provision of settlement loans is concerned, this means that they can be distributed over a period of time or a single up-front payment. The availability of such loans are now made public to the customer that are financially constrained through attorneys, as the courts require it nowadays.

Don't Make These Credit Mistakes

2007-04-17T05:19:00.001-07:00

A good credit score is not only vital to financial health, but to many other aspects of your life as well.

But what many people do not realize is that there are many things they can do to unintentionally sabotage their financial picture and their credit score as a whole.

The credit score is a very sensitive thing and can be greatly affected by things that the regular consumer does that they think will have little or no affect on their score.

But the opposite is actually true. Everything from opening or closing a credit card, to even moving can affect your credit score – and most of the time it is for the worse.

A recent article featured on AOLMoney.com, “Top 5ive credit score mistakes,” discusses the most common things that consumers do to hurt their credit score that are actually quite easy to avoid.

The number one thing that consumers do that drastically decreases their score, and thus prevents them from receiving favorable rates and terms on a loan, is missing a credit card payment. “It goes without saying that late payments hurt your credit. What many people don't realize is how much. ‘Being reported as delinquent in paying your bills is the biggest whammy for your score,’ says Craig Watts, a spokesman for Fair Isaac, the company that calculates FICO scores. A single late payment could sink you by as much as 100 points, especially if your credit history has been good up to that point.” The next common mistake that people make is maxing out their credit cards. Even if a person has a perfect payment history but has used up the available limit on their credit card, their score will suffer.

Be sure that you never use more than half of your available credit limit at one time. The next thing a consumer can do to ruin their score is apply for too much credit at one time. Each time you apply for a credit card or loan your score is negatively affected, so make sure you limit the amounts of credit inquiries during a specific time span.

One surprising thing that can hurt a score is closing a credit card that you no longer use. “Many folks think closing unused credit cards will improve their credit score. Quite the opposite: Closing unused accounts in fact decreases your score, Watts says. Why? You're eliminating a chunk of available credit, which then automatically increases your credit utilization, or how much of your available credit you're using. Credit utilization is responsible for a hefty 30% of your credit score, so the effects of closing a credit card with a generous limit could be pretty severe.”

The last mistake that people make, which is largely unavoidable in the first place is moving. This is because when you move bills can get lost in the mail that you have forgotten about and will be reported to collections before they are even reported to the person in some cases. Just be sure that you keep track of all your bills and what you owe when you move so even if you don’t have the statement you can still pay.