Feb 2nd 2007
Anybody with a credit card will eventually get a call, a letter, or a reminder in their statement saying that they should have credit card insurance. So if you haven’t heard of this yet, chances are you will. Credit insurance is a type of coverage designed to pay off the minimum monthly payment in the event that a credit user cannot make their payments. The credit card company that issued you the card WANTS you to have this insurance. They make it very clear what it is and the advantages for you for having it. It’s a simple process, all you have to do is give the go-ahead and they’ll sign you up right away.
A typical credit insurance policy offers:
- Voluntary enrollment, usually a “yes†from you.
- You can cancel any time
Jan 9th 2007
Most credit card frauds involve lost or stolen cards and costs cardholders and issuers hundreds of millions of dollars each year. Everyone pays for credit card frauds by paying higher interest rates, whether or not they have been a victim of a credit card fraud or not.
If you ever do lose your credit card or if it does get stolen, call the credit card company immediately. Most thieves use stolen credit cards within 48 hours. It’s safe to say that all credit card companies have toll-free numbers and a 24-hour service to deal with these situations. Once you report the loss or theft, the companies are required by Law to stop any unauthorized charges to your card.
Dec 28th 2006
The balance transfer has expanded at an incredible rate for credit card companies. Despite many credit card companies suffering due to an increase in levels of bad debt, we still see a lot of competitive deals entering the market. It’s not common to see a lot of offerings like a 0% for 12 months on balanace transfers.
The idea of switching to a 0% credit card is so that you can pay off as much as you can every month. Every penny you fork over during the interest-free period will go towards paying off your debt. However, keep an eye out for cards charging balance transfer fees. Many now charge a fee usually ranging between 2 and 3 percent of the balance. So for those who are transferring larger balances, this would make it a bit unattractive.
Dec 19th 2006
I’m sure many of you have a credit card and chances are you’ve probably received convenience checks. They’re those personalized blank checks which are typically mailed in sets of three and are tied to your credit card account that can be used to make a purchase or to transfer balances. They come with hefty fees, some are as much as 5 percent of the check amount and the interest rates are often 20% or more.
These checks are called convenience checks for a reason: all you have to do is fill them in and sign them. Sure, convenience checks can come in handy when you’re in need of fast cash. But they should only be used as a last resort. Because the checks are linked to your credit company, chances are you’ll be charged ridiculous fees for using the checks. The fees can be anywhere between 2% to 5% of the check’s amount. Also, convenience checks are not like credit cards, you don’t get a 30 day grace period to pay off the balance before the interest kicks in. The interest kicks in the moment your convenience checks are cashed. Convenience don’t come free these days, you got to pay for it.
Dec 12th 2006
Your credit report contains personal information about where you work and live and whether you pay your bills on time or not. Data is typically submitted to a credit reporting agency by your creditors, by the court system or from other public records, and by debt collection agencies. It’s important that the information in your report is complete and accurate.
Here’s what you will find in a credit report
Personal Information on Your Credit Report These items are not used to evaluate your credit history. They are gathered from information you give to your creditors. This includes items such as:
- Your full name or any other aliases you have.
- Current and previous addresses.
- Date of birth.
- Social Security number.
- Your employment history.
- Driver’s license number and State where issue.
- Your marital status.
Dec 10th 2006
Life without a credit card can be hard. Your credit history can have a huge affect on your life from insurance coverage to even your job application. Now, lets think about this, what do you think is required when you get a loan or a credit card? The simple answer is a good credit history. The only way of getting a good credit history is by getting a loan or a credit card and paying on time when they’re due.
More and more businesses are starting to look at credit histories and credit scores. Credit histories were originally developed as financial tools to help lenders assess whether consumers would pay their debts. Today, credit histories are being used as a screening tool for everything from jobs to insurance rates. It’s almost impossible to get a home, car or even some jobs without having any credit. Life costs more when you can’t access credit.
Nov 24th 2006
Consumers who have declared bankruptcy can still obtain a credit card. Today, more and more credit card companies are offering those with bankruptcies and poor credit a way to get a credit card and begin to rebuild their credit. These offers are going to look attractive and inevitably credit will need to be reestablished. Be very careful when filling out those credit card applications, there are companies that prey on the recently bankrupt and charge outrageous fees and interest rates.
One of the drawbacks to filing a bankruptcy will be higher fees in getting a credit card. This is normal practice considering you were not able to pay your debt before, but the fees should not be excessive. The invitation will look pretty and the offer will be enticing but before you jump in with both feet, read the fine print. Read every single page. High rates are a concern, but the bigger concern is your ability to manage credit.
Nov 6th 2006
A good credit rating is invaluable. It will help you get more credit and open up financing options. Potentially negative items can cause lenders to raise your rates. Whatever they may be, know that you have the right to dispute them and attempt to clear up your credit report. For this reason, it is vital to know how to monitor and clean up your credit report. You don’t need a credit repair clinic to clean up an outdated or inaccurate report.
You can do it yourself, often for free! In order to clean up your credit, you will need a copy of your credit report. In the U.S., the most popular credit reporting agencies, known as “the big three,” are Equifax, Trans Union, and Experian. Each of these sites has information about getting a copy of your credit report directly and also for joining their credit monitoring services. Everyone is allowed at least one free credit report each year. If you’ve already gotten yours this year, you may have to pay a small fee for one.
Nov 5th 2006
You’ve seen the ads on roadside signs, in the newspaper, on TV commercials, and on the internet. They all make the same claims: “Wipe out your debts legally using the protections provided by federal law!”, “We can erase your bad credit — 100% guaranteed.†Don’t believe these statements, they simply take your money and vanish! So now you still have bad credit, and less money.
The Federal Trade Commission advises that the following are warning signs of a credit repair scam. Look for these signs of scam:
- Explain your legal rights and what actions you can take for free.
- Recommend that you not contact a credit bureau directly.
- Suggests that you try to invent a “new” credit report by applying for an Employer Identification Number to use instead of your Social Security Number.
Oct 26th 2006
Charge it. Get something back. It’s the new mantra among the nation’s largest credit card companies. Gone are the days when a pen or photo frame arrived in the mail as a thank-you for being a loyal customer. Reward programs are becoming more popular and better than ever, as card issuers offer gift certificates at your favorite store, discounts on airfares and cars, and even hard cash to nab your business.
Many consumers are interested in reward credit cards because they make it possible to complete routine purchases while receiving special rewards. Common rewards provided by these cards include airline miles, gift certificates to restaurants and stores, cash, and unique gifts. Most major credit card companies are becoming specialized in designing credit cards with savings to suit a variety of lifestyles. The best rewards credit cards come with no annual fee, but they usually require good to excellent credit ratings. Read the credit card offer closely. Some rewards cards have high interest rates or annual fees that cancel out the special benefits. Make sure you understand how the rewards are calculated and redeemed.