by: Jeff Brown
Victims of credit card fraud can tell you just how traumatic it can be. It's not just the potential money loss, it can also leave a bad mark on your credit report that can take years to sort out.
Most people think that credit card fraud is when your wallet or purse is stolen, and the thief uses your credit cards to buy all sorts of goods and services.
However, the number of purchases made online is growing at an incredible rate and so is the theft or misappropriation of people's credit card details. All the thief needs to cause havoc to your account is your credit card details, number, expiry date, name and security code.
To prevent this from happening it is recommended that you take note of the followng credit card advice.
Here are a few ways that a thief can get your details with appropriate prevention tips:
* You get a phone call where the person on the line tells you about a special offer usually needing a fast response and your credit card details to make the purchase.
Tip #1 - Never give out your credit card details to people who call to sell to you. Only provide it when you call a company to place a phone order and when you are sure that you are dealing with well-established reputable business.
* You find out that someone has gone through the trash bags you left outside for the trash pick-up. Several days later you get your credit card statement and there are lots of purchases you knew nothing about.
Tip #2 - Invest in a shredder! Make sure you completely destroy your credit card receipts and bank statements before throwing them out. Thieves do go through trash bags looking for your statements and other details of your identity.
* You have a meal in a restaurant and use your credit card to pay for your bill. Your next credit card statement shows unauthorized charges dating from the time you had the meal. When you paid, the waiter made an extra imprint of your card when processing your bill, and then used the details to make internet purchases.
Tip #3 - Make sure that you watch the waiter when he processes your bill and make sure that he knows you are watching. If he takes your card, insist that you go with him to the pay station to complete the transaction.
So, what other measures can you take to stop you being a victim of credit card fraud? Here are some more tips:
Tip #4 - If possible, do not carry your credit cards in your purse or wallet. If the worst happens and your wallet is stolen, you will not lose both your credit cards and your cash.
Tip #5 - Only take the credit card that you are going to use that day - leave the others at home in a safe place.
Tip #6 - Make a list of all your credit card details and issuer contact details. The sooner you can report any loss the less damage can be done and your accounts can be frozen until new cards are issued.
Tip #7 - Never ever sign a blank receipt. Cross out any blank lines for tips on the receipt so that charges cannot be added. Always check your receipt befor you sign.
Tip #8 - If you are buying goods online make sure that you do so via a secure site.
Tip #9 - If you move house, let your credit card issuer know the new address as soon as possible. Thieves make it their business to know what is happening in the neighbourhood and will check mailboxes at empty houses hoping to pick up letters with bank, credit card and identity details.
Tip #10 - Spam email is an increasing problem. You may recieve messages that appear to be from your bank, Ebay or Paypal asking for you to update your bank and credit card details. These emails look real. Never provide details when asked to by email. Always log in to the link provided by your bank or payment processor to make any amendments to your details.
So there you have it.......Follow the tips above to reduce your chances of becoming a victim of credit card fraud!
Wednesday, August 13, 2008
10 Tips To Prevent Credit Card Fraud
by: Paul Davis
Imagine opening your credit card statement one morning and discovering to your horror that you suddenly owe thousands of dollars - on purchases that you never made.
Impossible?
Credit card fraud on the rise, so you need to treat your card and its information with extreme care.
Here are 10 tips to help insure you're not the victim of thieves and fraudsters:
1. Sign new and replacement cards immediately.
2. Destroy the old cards by cutting them into pieces and shred all old receipts and bills.
3. Don't fax your credit-card number, if possible. Remember, the faxed document could remain in sight at the other end for long periods of time.
4. Don't give your card number over the phone unless you have initiated the call.
5. Destroy any carbon paper if it's used as part of the credit card transaction. Somebody can grab it and forge your signature.
6. Don't respond to any "scam" e-mails requesting your credit card number.
7. Never send your credit card number in an e-mail to anyone!
8. A good option for discouraging theft is to choose a credit card that includes your photo and signature on the card.
9. If you have questions about mistakes or unauthorized items on your statement, you have the right to challenge them.
10. If your card is lost, stolen, or you suspect fraudulent use, call your company's 24-hour hotline immediately to prevent your card from being used as little as possible. The company will block its use, and you won't be responsible for any charges made by thieves.
You'll never deter fraudsters completely. But you can certainly make life as difficult as possible for them.
Imagine opening your credit card statement one morning and discovering to your horror that you suddenly owe thousands of dollars - on purchases that you never made.
Impossible?
Credit card fraud on the rise, so you need to treat your card and its information with extreme care.
Here are 10 tips to help insure you're not the victim of thieves and fraudsters:
1. Sign new and replacement cards immediately.
2. Destroy the old cards by cutting them into pieces and shred all old receipts and bills.
3. Don't fax your credit-card number, if possible. Remember, the faxed document could remain in sight at the other end for long periods of time.
4. Don't give your card number over the phone unless you have initiated the call.
5. Destroy any carbon paper if it's used as part of the credit card transaction. Somebody can grab it and forge your signature.
6. Don't respond to any "scam" e-mails requesting your credit card number.
7. Never send your credit card number in an e-mail to anyone!
8. A good option for discouraging theft is to choose a credit card that includes your photo and signature on the card.
9. If you have questions about mistakes or unauthorized items on your statement, you have the right to challenge them.
10. If your card is lost, stolen, or you suspect fraudulent use, call your company's 24-hour hotline immediately to prevent your card from being used as little as possible. The company will block its use, and you won't be responsible for any charges made by thieves.
You'll never deter fraudsters completely. But you can certainly make life as difficult as possible for them.
10 Tips for Successful Real Estate Property Investment
by: Rhiannon Williamson
Just because real estate prices seem to have hit a temporary ceiling in many countries around the world, that doesn’t mean that profits from property investments are hard to come by.
Even during a real estate market slowdown, stagnation or depression profits can be made locally and overseas. This article shows you the top ten tips that real estate investors apply to their property portfolio building strategy to ensure success from their investments.
1) Research the curve - the concept of a property market cycle existing is not myth it’s a fact and is generally accepted to be based on a price-income relationship. Check the recent historical price data for properties in the area of the country you’re considering purchasing in and try to determine the overall feel in the market for prices currently. Are prices rising, are prices falling or have they reached a peak. You need to know where the curve of the property market cycle is at in your preferred investment area.
2) Get ahead of the curve – as a basic rule of thumb, professional real estate property investors seek to buy ahead of the curve. If a market is rising they will try and target up and coming areas, areas that are close to locations that have peaked, areas close to locations experiencing redevelopment or investment. These areas will most likely become ‘the next big thing’ and those who by in before the trend will stand to make the most gains. As a market is stagnating or falling many successful investors target areas that enjoyed the best levels of growth, yields and profits very early on in the previous cycle because these areas will most likely be the first areas to become profitable as the cycle begins turning towards positive once more.
3) Know your market – who are you buying property for? Are you buying to let to young executives, purchasing for renovation to resell to a family market or purchasing jet to let real estate for short term rental to holiday makers? Think about your market before you make a purchase. Know what they look for in a property and ensure that is what you are going to be offering them
4) Think further afield – there are emerging real estate property markets around the world where countries’ economies are going from strength to strength, where a growing tourism sector is pushing up demand or where constitutional legislation has been or is about to be changed to allow for foreign freehold ownership of property for example. Look further afield than your own back yard for your next property investment and diversify that real estate portfolio for maximum success.
5) Purchase price – set yourself a budget that will realistically allow you to purchase what you’re looking for and profit from that purchase either through capital gains or rental yield.
6) Entry costs – research fees, charges and all expenses you will incur when you buy your property – they differ from country to country and sometimes even from state to state. In Turkey for example you should add on an additional 5% of the purchase price for all fees, in Spain you will need to factor in an average of 10% and in Germany fees and charges can be in excess of 20%. Know how much you will have to incur and factor this amount into your budget to avoid any nasty surprises and to ensure your investment can become profitable.
7) Capital growth potential – what factors point to the potential profitability of your real estate property investment? If you’re looking overseas at an emerging market, which economic or social indicators exist to suggest that property prices will increase? If you’re buying to let out are there any indications to suggest that demand for rental accommodation will remain strong, increase or even decline? Think about what you want to achieve from your investment and then research and find out whether your expectations are realistic.
8) Exit costs – if you will incur substantial capital gains taxation liability if you sell your property investment for profit, will that render the investment profitless? In Spain a foreign buyer can incur up to 35% capital gains tax, in Turkey on the other hand property sales are capital gains tax free if the underlying real estate has been owned for four or more years.
9) Profit margins – what levels of capital growth can you realistically gain on your property investment or how much rental income can you generate? Work out these facts and then work backwards towards your initial budget to work out your potential profit margins. At all times you have to keep the bigger picture in mind to ensure that your real estate investment has good potential for profit.
10) Think long term – unless you’re buying property off plan and intending to flip it for resale and profit before completion you should view real estate investment as a long term investment. Real estate is a slow to liquidate asset, cash tied up in property is not simple to free up. Take a long term approach to your property portfolio and give your assets time to increase in value before cashing them in for profit.
Just because real estate prices seem to have hit a temporary ceiling in many countries around the world, that doesn’t mean that profits from property investments are hard to come by.
Even during a real estate market slowdown, stagnation or depression profits can be made locally and overseas. This article shows you the top ten tips that real estate investors apply to their property portfolio building strategy to ensure success from their investments.
1) Research the curve - the concept of a property market cycle existing is not myth it’s a fact and is generally accepted to be based on a price-income relationship. Check the recent historical price data for properties in the area of the country you’re considering purchasing in and try to determine the overall feel in the market for prices currently. Are prices rising, are prices falling or have they reached a peak. You need to know where the curve of the property market cycle is at in your preferred investment area.
2) Get ahead of the curve – as a basic rule of thumb, professional real estate property investors seek to buy ahead of the curve. If a market is rising they will try and target up and coming areas, areas that are close to locations that have peaked, areas close to locations experiencing redevelopment or investment. These areas will most likely become ‘the next big thing’ and those who by in before the trend will stand to make the most gains. As a market is stagnating or falling many successful investors target areas that enjoyed the best levels of growth, yields and profits very early on in the previous cycle because these areas will most likely be the first areas to become profitable as the cycle begins turning towards positive once more.
3) Know your market – who are you buying property for? Are you buying to let to young executives, purchasing for renovation to resell to a family market or purchasing jet to let real estate for short term rental to holiday makers? Think about your market before you make a purchase. Know what they look for in a property and ensure that is what you are going to be offering them
4) Think further afield – there are emerging real estate property markets around the world where countries’ economies are going from strength to strength, where a growing tourism sector is pushing up demand or where constitutional legislation has been or is about to be changed to allow for foreign freehold ownership of property for example. Look further afield than your own back yard for your next property investment and diversify that real estate portfolio for maximum success.
5) Purchase price – set yourself a budget that will realistically allow you to purchase what you’re looking for and profit from that purchase either through capital gains or rental yield.
6) Entry costs – research fees, charges and all expenses you will incur when you buy your property – they differ from country to country and sometimes even from state to state. In Turkey for example you should add on an additional 5% of the purchase price for all fees, in Spain you will need to factor in an average of 10% and in Germany fees and charges can be in excess of 20%. Know how much you will have to incur and factor this amount into your budget to avoid any nasty surprises and to ensure your investment can become profitable.
7) Capital growth potential – what factors point to the potential profitability of your real estate property investment? If you’re looking overseas at an emerging market, which economic or social indicators exist to suggest that property prices will increase? If you’re buying to let out are there any indications to suggest that demand for rental accommodation will remain strong, increase or even decline? Think about what you want to achieve from your investment and then research and find out whether your expectations are realistic.
8) Exit costs – if you will incur substantial capital gains taxation liability if you sell your property investment for profit, will that render the investment profitless? In Spain a foreign buyer can incur up to 35% capital gains tax, in Turkey on the other hand property sales are capital gains tax free if the underlying real estate has been owned for four or more years.
9) Profit margins – what levels of capital growth can you realistically gain on your property investment or how much rental income can you generate? Work out these facts and then work backwards towards your initial budget to work out your potential profit margins. At all times you have to keep the bigger picture in mind to ensure that your real estate investment has good potential for profit.
10) Think long term – unless you’re buying property off plan and intending to flip it for resale and profit before completion you should view real estate investment as a long term investment. Real estate is a slow to liquidate asset, cash tied up in property is not simple to free up. Take a long term approach to your property portfolio and give your assets time to increase in value before cashing them in for profit.
10 Tips for Investing in Distressed or Foreclosed Properties
by: Elaine Voncannon
1. Search on the world wide web for distressed or foreclosed properties as a starting point. Use a professional REALTOR to identify great foreclosure deals for you. You may be successful at searching the web on your own, but keep in mind some of the information is outdated, some may be incorrect, and some of the available properties are not even listed. A REALTOR subscribes to updated MLS listings and can offer you the most current information available.
2. If you search yourself for distressed properties and purchase from the selling agent, you are paying a commission to someone with a vested interest. Obtain objectivity in the sale by working with your own REALTOR. You won’t pay any more. Technically, everyone works for the seller, since they pay the commission.
3. With distressed or foreclosed properties, time is of the essence. Purchasers must close on the date specified by the agency, and cannot close after this without penalties of $25-200 per day.
4. It takes 1-3 weeks to qualify a loan. If you are approved for a loan, make sure you are qualified by your lender as soon as possible. If you are paying by cash, make certain funds are available. If finances are in order, the REALTOR will then submit an offer. When the offer is accepted by both seller and buyer, the REALTOR will submit the ratified contract to the lender and closing agent. These steps will begin the process of a successful real estate transaction.
5. When purchasing a distressed property, always obtain 3-4 bids from different contractors to estimate costs of repairs, if you do not plan on doing the work yourself.
6. If you are going to sell the property after rehabilitating it, ask your REALTOR to research similar properties in the neighborhood to ascertain market price.
7. Keep copious records for tax deductions. Any expenses related to the purchase, repair, or maintenance of the property may qualify. Meticulous records are key to a profitable real estate venture.
8. The title you receive after purchasing a distressed or foreclosed property is a special warranty deed rather than a general warranty deed. Some buyers are alarmed by this, but there is no need to worry. The purchase of title insurance protects the buyer. Each lender purchases insurance to protect the loan as well. Titling insurance should be obtained by the property purchaser. It is always offered by the closing agent. Consider using an attorney instead of a titling company as your closing agent. An attorney is only $50-75 more than a titling company. A real estate attorney can remedy any situation that may arise. Therefore, they are more efficient representatives on time sensitive foreclosure properties. 9. Foreclosure properties require special addendums and special contracts by the individual bank and HUD office (where applicable).
10. Foreclosure properties are potentially the most profitable, but require the most attention to detail. A REALTOR experienced in foreclosure deals is highly desirable because the paperwork must be in order to submit a proper bid, and timeliness is critical.
1. Search on the world wide web for distressed or foreclosed properties as a starting point. Use a professional REALTOR to identify great foreclosure deals for you. You may be successful at searching the web on your own, but keep in mind some of the information is outdated, some may be incorrect, and some of the available properties are not even listed. A REALTOR subscribes to updated MLS listings and can offer you the most current information available.
2. If you search yourself for distressed properties and purchase from the selling agent, you are paying a commission to someone with a vested interest. Obtain objectivity in the sale by working with your own REALTOR. You won’t pay any more. Technically, everyone works for the seller, since they pay the commission.
3. With distressed or foreclosed properties, time is of the essence. Purchasers must close on the date specified by the agency, and cannot close after this without penalties of $25-200 per day.
4. It takes 1-3 weeks to qualify a loan. If you are approved for a loan, make sure you are qualified by your lender as soon as possible. If you are paying by cash, make certain funds are available. If finances are in order, the REALTOR will then submit an offer. When the offer is accepted by both seller and buyer, the REALTOR will submit the ratified contract to the lender and closing agent. These steps will begin the process of a successful real estate transaction.
5. When purchasing a distressed property, always obtain 3-4 bids from different contractors to estimate costs of repairs, if you do not plan on doing the work yourself.
6. If you are going to sell the property after rehabilitating it, ask your REALTOR to research similar properties in the neighborhood to ascertain market price.
7. Keep copious records for tax deductions. Any expenses related to the purchase, repair, or maintenance of the property may qualify. Meticulous records are key to a profitable real estate venture.
8. The title you receive after purchasing a distressed or foreclosed property is a special warranty deed rather than a general warranty deed. Some buyers are alarmed by this, but there is no need to worry. The purchase of title insurance protects the buyer. Each lender purchases insurance to protect the loan as well. Titling insurance should be obtained by the property purchaser. It is always offered by the closing agent. Consider using an attorney instead of a titling company as your closing agent. An attorney is only $50-75 more than a titling company. A real estate attorney can remedy any situation that may arise. Therefore, they are more efficient representatives on time sensitive foreclosure properties. 9. Foreclosure properties require special addendums and special contracts by the individual bank and HUD office (where applicable).
10. Foreclosure properties are potentially the most profitable, but require the most attention to detail. A REALTOR experienced in foreclosure deals is highly desirable because the paperwork must be in order to submit a proper bid, and timeliness is critical.
Sunday, July 20, 2008
Expert Tips On Choosing A Credit Counseling Agency
by: Bill Smith
With the debt levels at all time high, credit counseling agencies are reaping on the boom. However, as a consumer, it is in your best interest to choose a credit counseling agency wisely. In generally accreditation is helpful and an accreditation with either the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies is recommended.
When you have narrowed the list of credit counseling agencies you want to work with, it is a good idea to call up your local Better Business Bureau and see if any complaints are filed with them. If a credit counseling agency has many complaints filed against them, you are better advised to move on with other companies.
It is also important to understand what is being offered by a credit counseling agency. A reputed credit counseling agency will offer you a range of services including a certified personal counselor, personal financial budget calculation worksheet, DMP (debt management plan) details, work with creditors to lower interest and a lot of free resources and credit counseling information.
If a credit counseling agency offers erasing your credit history, it generally indicates a red flag. Credit history cannot be erased. Accurate information about your credit accounts will stay on record for 7 years.
Credit counselling fees:
A reputed credit counseling firm will offer budget services for free and charge you for DMP (debt management plan) or other premium services you seek. As a consumer look out for a reputed credit counseling agency that will charge you between $15 - $30. $50 can be considered at the high end of the spectrum when you are totally comfortable with the services they offer.
Try to gather further information on credit counselors. Ask what kind of training is given to credit counselors. Ideally look for companies that offer training as well as accreditation by an outside source. Additionally ask how the credit counselors are paid? If they are paid a commission, they might pressure you into accepting a DMP.
I hope all the above listed information will be helpful in selecting the right credit counseling agency for you. Any research before selecting a credit counseling agency will be time well spent.
With the debt levels at all time high, credit counseling agencies are reaping on the boom. However, as a consumer, it is in your best interest to choose a credit counseling agency wisely. In generally accreditation is helpful and an accreditation with either the National Foundation for Credit Counseling or the Association of Independent Consumer Credit Counseling Agencies is recommended.
When you have narrowed the list of credit counseling agencies you want to work with, it is a good idea to call up your local Better Business Bureau and see if any complaints are filed with them. If a credit counseling agency has many complaints filed against them, you are better advised to move on with other companies.
It is also important to understand what is being offered by a credit counseling agency. A reputed credit counseling agency will offer you a range of services including a certified personal counselor, personal financial budget calculation worksheet, DMP (debt management plan) details, work with creditors to lower interest and a lot of free resources and credit counseling information.
If a credit counseling agency offers erasing your credit history, it generally indicates a red flag. Credit history cannot be erased. Accurate information about your credit accounts will stay on record for 7 years.
Credit counselling fees:
A reputed credit counseling firm will offer budget services for free and charge you for DMP (debt management plan) or other premium services you seek. As a consumer look out for a reputed credit counseling agency that will charge you between $15 - $30. $50 can be considered at the high end of the spectrum when you are totally comfortable with the services they offer.
Try to gather further information on credit counselors. Ask what kind of training is given to credit counselors. Ideally look for companies that offer training as well as accreditation by an outside source. Additionally ask how the credit counselors are paid? If they are paid a commission, they might pressure you into accepting a DMP.
I hope all the above listed information will be helpful in selecting the right credit counseling agency for you. Any research before selecting a credit counseling agency will be time well spent.
Easy Tips For Your Late Credit Card Payment
by: Elaine Lim
There are three reasons that you might have missed a payment on your credit card: either you can’t afford to pay, the payment didn’t get there in time or you just plain forgot. For whatever reason, there’s one thing you need to do, and quickly – get on the phone.
Then, apologise like you’ve never apologised before. Don’t panic, stay calm, but make it clear to the customer service representative that you’re very sorry. Say that things like this never happen to you. If you just forgot, then tell the truth about what happened. But if you can’t afford to pay, then you should say so too.
You will be surprised at how sympathetic credit card companies can be if you phone and apologise. After all, the sensible ones want to keep you paying interest to them for a long time to come, so it’s not really in their interest to punish you.
Remember to show your appreciation if they let you off. Promise that it won’t happen again. Whatever you do, don’t get angry or frustrated. You need their goodwill and to be in their good books.
However, if deemed necessary, you may also want to show that you are willing to transfer your balance elsewhere if they won’t let you off this one mistake. Credit card companies will usually be more accommodating to your request once you make this known.
You need to do everything you can to persuade them not to add your late payment to your credit report. Any negativity in your credit report may adversely affect your applications for any credit. Remember that any late payment can be a black mark against your name for as long as ten years.
On the other hand, if the worst happens and it does get onto your credit report, don’t worry excessively. As long as there’s only one late payment in a year or so, it doesn’t matter too much. It’s the people who consistently pay late who get the truly terrible credit ratings.
In the future, remember to make payments early. This goes especially for the people whose payments didn’t make it in time. It is just not prudent to wait until the day before the deadline to make your credit card payment. Many things can go wrong at the last minute.
In a nutshell, it’s generally a bad idea to let bills of any kind stack up until you get around to them. Review your bills regularly, pay on time and you’ll live a much less stressful life.
There are three reasons that you might have missed a payment on your credit card: either you can’t afford to pay, the payment didn’t get there in time or you just plain forgot. For whatever reason, there’s one thing you need to do, and quickly – get on the phone.
Then, apologise like you’ve never apologised before. Don’t panic, stay calm, but make it clear to the customer service representative that you’re very sorry. Say that things like this never happen to you. If you just forgot, then tell the truth about what happened. But if you can’t afford to pay, then you should say so too.
You will be surprised at how sympathetic credit card companies can be if you phone and apologise. After all, the sensible ones want to keep you paying interest to them for a long time to come, so it’s not really in their interest to punish you.
Remember to show your appreciation if they let you off. Promise that it won’t happen again. Whatever you do, don’t get angry or frustrated. You need their goodwill and to be in their good books.
However, if deemed necessary, you may also want to show that you are willing to transfer your balance elsewhere if they won’t let you off this one mistake. Credit card companies will usually be more accommodating to your request once you make this known.
You need to do everything you can to persuade them not to add your late payment to your credit report. Any negativity in your credit report may adversely affect your applications for any credit. Remember that any late payment can be a black mark against your name for as long as ten years.
On the other hand, if the worst happens and it does get onto your credit report, don’t worry excessively. As long as there’s only one late payment in a year or so, it doesn’t matter too much. It’s the people who consistently pay late who get the truly terrible credit ratings.
In the future, remember to make payments early. This goes especially for the people whose payments didn’t make it in time. It is just not prudent to wait until the day before the deadline to make your credit card payment. Many things can go wrong at the last minute.
In a nutshell, it’s generally a bad idea to let bills of any kind stack up until you get around to them. Review your bills regularly, pay on time and you’ll live a much less stressful life.
Drowning in Debt? Tips and Tricks for Getting Out of Hot Water with Creditors
by: Beth West
Do you, like millions of other Americans, feel like you’re sinking in an ocean of credit card debt? Well, fear not--there are many options for reducing your debt way before you have to be concerned about receiving notices or daunting telephone calls from debt collectors. The important thing to remember is to be proactive in handling your credit card debt. Unmanaged debt can ultimately lead to lawsuits, loss of property, and tarnished credit reports.
Here are a few ideas for managing and/or reducing your debt:
* Get in touch with creditors right away. Often times, creditors will reduce credit card interest rates if you simply ask for a break. Explain your situation, and let creditors know if you’re having trouble meeting your minimum monthly obligation. Many creditors will work with you to arrange a customized payment plan.
* Develop a Budget. While many people dread this very important step in reducing debt, it can be extremely important in taking control of your financial situation. Compare and contrast fixed expenses—-mortgage payments, rent, car payments, and insurance premiums, for example--with variable expenses, such as entertainment and recreation. List all your expenses, even those that seem unimportant. This is an important step in determining your spending patterns, prioritizing expenses, and determining whether or not you have additional money to contribute to the monthly payments on your credit card.
* Consolidate, consolidate, consolidate. While debt consolidation is a sometimes daunting and drastic step, it can be an important move in the quest to reduce your credit card debt. If you’re a homeowner, consider a second mortgage or a home equity loan to pay off high-interest rate debt. While these loans often require you to list your home as collateral, remember that if you start skipping out on credit card payments, you could easily lose your home. What’s more, these loans provide tax advantages that are not available with many kinds of credit.
* Go to Counseling. Credit counseling, that is. Many credit counseling organizations will help you come up with a feasible solution for ridding yourself of debt. You can find credit counselors on the Internet, and many credit unions, universities and military bases provide credit counseling programs. Also, get in touch with your bank, friends, and/or family for a recommendation.
Some of the services credit counselors provide: Advice on how to manage your debt, assistance in developing a budget, and classes and workshops that are geared towards teaching consumers about money management, credit card debt, and budgeting. Counselors can also recommend a debt management plan (DMP), which allows you to make monthly deposits to the specific counseling organization that you’re working with. Your counselor will then develop a payment schedule with your creditors that includes lower interest rates or waives certain fees.
For more suggestions and information on how to manage your credit card debt, please visit http://www.informedcredit.com.
Do you, like millions of other Americans, feel like you’re sinking in an ocean of credit card debt? Well, fear not--there are many options for reducing your debt way before you have to be concerned about receiving notices or daunting telephone calls from debt collectors. The important thing to remember is to be proactive in handling your credit card debt. Unmanaged debt can ultimately lead to lawsuits, loss of property, and tarnished credit reports.
Here are a few ideas for managing and/or reducing your debt:
* Get in touch with creditors right away. Often times, creditors will reduce credit card interest rates if you simply ask for a break. Explain your situation, and let creditors know if you’re having trouble meeting your minimum monthly obligation. Many creditors will work with you to arrange a customized payment plan.
* Develop a Budget. While many people dread this very important step in reducing debt, it can be extremely important in taking control of your financial situation. Compare and contrast fixed expenses—-mortgage payments, rent, car payments, and insurance premiums, for example--with variable expenses, such as entertainment and recreation. List all your expenses, even those that seem unimportant. This is an important step in determining your spending patterns, prioritizing expenses, and determining whether or not you have additional money to contribute to the monthly payments on your credit card.
* Consolidate, consolidate, consolidate. While debt consolidation is a sometimes daunting and drastic step, it can be an important move in the quest to reduce your credit card debt. If you’re a homeowner, consider a second mortgage or a home equity loan to pay off high-interest rate debt. While these loans often require you to list your home as collateral, remember that if you start skipping out on credit card payments, you could easily lose your home. What’s more, these loans provide tax advantages that are not available with many kinds of credit.
* Go to Counseling. Credit counseling, that is. Many credit counseling organizations will help you come up with a feasible solution for ridding yourself of debt. You can find credit counselors on the Internet, and many credit unions, universities and military bases provide credit counseling programs. Also, get in touch with your bank, friends, and/or family for a recommendation.
Some of the services credit counselors provide: Advice on how to manage your debt, assistance in developing a budget, and classes and workshops that are geared towards teaching consumers about money management, credit card debt, and budgeting. Counselors can also recommend a debt management plan (DMP), which allows you to make monthly deposits to the specific counseling organization that you’re working with. Your counselor will then develop a payment schedule with your creditors that includes lower interest rates or waives certain fees.
For more suggestions and information on how to manage your credit card debt, please visit http://www.informedcredit.com.
Sunday, July 13, 2008
Credit Enhancements: Seven Tips For Enhancing Business Credit Transactions
by: George A. Parker
What are the avenues available to businesses with weak credit profiles or to companies pursuing credit transactions that are perceived as too risky by credit providers? Many companies apply for credit at banks, finance companies or equipment leasing firms and are routinely rejected due to the high degree of perceived credit risks. When approaching a credit provider, it is helpful to understand what can be done to reduce the risk of a credit transaction in the eyes of the provider. Never accept a credit rejection without considering credit enhancements. Here are a few tips on credit enhancement to help guide you in approaching the credit process:
1. Credit enhancements are modifications to credit transactions that improve the risk-reward relationship for credit providers. Enhancements can be real or merely perceived by the receiving party. Also, they can be tangible things like real estate and equipment or they can be intangibles like future rights or options.
2. Use credit enhancements to strengthen credit transactions and to improve pricing or terms. They may be used to entice credit providers to approve credit transactions that would otherwise be unacceptable because of the perceived risks. They can also encourage credit providers to make transaction approvals faster.
3. Credit enhancements usually fall within one of these general categories: improvement in credit terms favoring the credit provider; additional collateral; guarantees, insurance or third party assurances; increased pricing, compensation or upside gain potential; or granting of specific rights or options.
4. Some specific enhancements include: granting a security interest in additional equipment, real estate, inventory, accounts receivable, intellectual property rights or other company assets; pledging cash; pledging securities; third party guarantees; surety bonds; letters of credit; pledging cash value of insurance; increase in transaction rate; additional fees or other transaction compensation; shortening the term of certain transactions; granting first refusal rights on future transactions; permitting call options; obtaining re-marketing guarantees or agreements.
5. When considering using credit enhancements to improve your transactions, use these guidelines: try to get a fair and objective assessment of your credit profile and the inherent transaction risks from a knowledgeable credit person; take inventory of the possible credit enhancements your firm can provide; evaluate the cost of possible enhancements to decide whether using them will be worthwhile; if there is time and opportunity for a second chance to present your transaction to the credit provider, present it first without the credit enhancement or with the minimum enhancement you think acceptable; of the credit enhancements available to your firm, decide which ones will be effective and the degree of enhancement necessary to achieve your objectives.
6. It helps to develop a credit enhancement strategy in the planning stage of your transaction. Start by understanding the transaction’s credit strengths and weaknesses. Decide which enhancements available to your firm will help strengthen the risk profile of the transaction. Try to assess the credit provider’s sensitivity to various types and degrees of credit enhancement. Later, if the credit provider turns down your transaction or proposes unacceptable terms, ask the provider to suggest enhancements that will make a difference in the decision. You may be able to negotiate further, once you have this information.
7. All credit enhancements have a cost. In many instances the cost is the opportunity cost of not having the credit enhancement available for future use. Before offering or providing a credit enhancement, do a thorough cost-benefit analysis to make sure the potential benefit is worth the cost to your firm.
Though it is not always possible to enhance a credit to the satisfaction of credit providers, you should understand the value of credit enhancements and know when they may be useful. By carefully considering potential credit enhancements, you can often improve the pricing and terms of your firm’s credit transactions. If your firm has a weak credit profile, use of a credit enhancement might make the difference between obtaining financing or being rejected.
About The Author
George Parker is a Director and Executive Vice President of Leasing Technologies International, Inc. (“LTI”), responsible for LTI’s marketing and financing efforts. A co-founder of LTI, Mr. Parker has been involved in secured lending and equipment financing for over twenty years. Mr. Parker is an industry leader, frequent panelist and author of several articles pertaining to equipment financing.
Headquartered in Wilton, CT, LTI is a leasing firm specializing nationally in direct equipment financing and vendor leasing programs for emerging growth and later-stage, venture capital backed companies. More information about LTI is available at: www.ltileasing.com.
What are the avenues available to businesses with weak credit profiles or to companies pursuing credit transactions that are perceived as too risky by credit providers? Many companies apply for credit at banks, finance companies or equipment leasing firms and are routinely rejected due to the high degree of perceived credit risks. When approaching a credit provider, it is helpful to understand what can be done to reduce the risk of a credit transaction in the eyes of the provider. Never accept a credit rejection without considering credit enhancements. Here are a few tips on credit enhancement to help guide you in approaching the credit process:
1. Credit enhancements are modifications to credit transactions that improve the risk-reward relationship for credit providers. Enhancements can be real or merely perceived by the receiving party. Also, they can be tangible things like real estate and equipment or they can be intangibles like future rights or options.
2. Use credit enhancements to strengthen credit transactions and to improve pricing or terms. They may be used to entice credit providers to approve credit transactions that would otherwise be unacceptable because of the perceived risks. They can also encourage credit providers to make transaction approvals faster.
3. Credit enhancements usually fall within one of these general categories: improvement in credit terms favoring the credit provider; additional collateral; guarantees, insurance or third party assurances; increased pricing, compensation or upside gain potential; or granting of specific rights or options.
4. Some specific enhancements include: granting a security interest in additional equipment, real estate, inventory, accounts receivable, intellectual property rights or other company assets; pledging cash; pledging securities; third party guarantees; surety bonds; letters of credit; pledging cash value of insurance; increase in transaction rate; additional fees or other transaction compensation; shortening the term of certain transactions; granting first refusal rights on future transactions; permitting call options; obtaining re-marketing guarantees or agreements.
5. When considering using credit enhancements to improve your transactions, use these guidelines: try to get a fair and objective assessment of your credit profile and the inherent transaction risks from a knowledgeable credit person; take inventory of the possible credit enhancements your firm can provide; evaluate the cost of possible enhancements to decide whether using them will be worthwhile; if there is time and opportunity for a second chance to present your transaction to the credit provider, present it first without the credit enhancement or with the minimum enhancement you think acceptable; of the credit enhancements available to your firm, decide which ones will be effective and the degree of enhancement necessary to achieve your objectives.
6. It helps to develop a credit enhancement strategy in the planning stage of your transaction. Start by understanding the transaction’s credit strengths and weaknesses. Decide which enhancements available to your firm will help strengthen the risk profile of the transaction. Try to assess the credit provider’s sensitivity to various types and degrees of credit enhancement. Later, if the credit provider turns down your transaction or proposes unacceptable terms, ask the provider to suggest enhancements that will make a difference in the decision. You may be able to negotiate further, once you have this information.
7. All credit enhancements have a cost. In many instances the cost is the opportunity cost of not having the credit enhancement available for future use. Before offering or providing a credit enhancement, do a thorough cost-benefit analysis to make sure the potential benefit is worth the cost to your firm.
Though it is not always possible to enhance a credit to the satisfaction of credit providers, you should understand the value of credit enhancements and know when they may be useful. By carefully considering potential credit enhancements, you can often improve the pricing and terms of your firm’s credit transactions. If your firm has a weak credit profile, use of a credit enhancement might make the difference between obtaining financing or being rejected.
About The Author
George Parker is a Director and Executive Vice President of Leasing Technologies International, Inc. (“LTI”), responsible for LTI’s marketing and financing efforts. A co-founder of LTI, Mr. Parker has been involved in secured lending and equipment financing for over twenty years. Mr. Parker is an industry leader, frequent panelist and author of several articles pertaining to equipment financing.
Headquartered in Wilton, CT, LTI is a leasing firm specializing nationally in direct equipment financing and vendor leasing programs for emerging growth and later-stage, venture capital backed companies. More information about LTI is available at: www.ltileasing.com.
Credit Counseling – Six Tips to Avoid Counseling Scams
by: Charlie Essmeier
Credit counseling is a useful service for anyone with problem debt. A good counseling agency can provide advice regarding money management and debt consolidation. They can also help arrange a repayment plan with your creditors to help you get out of debt. A bad agency can charge excessive fees, pocket money that was intended to pay your bills, and steer you into greater debt than before. Predatory credit counseling has become a multibillion dollar industry, and with the recent passage of the Bankruptcy Abuse and Consumer Protection Act, credit counseling will soon become mandatory for anyone filing for bankruptcy. How can you avoid becoming a victim of credit counseling scams? How can you choose a helpful and reputable credit counselor?
Here are a few tips that can help you avoid becoming a victim of predatory agencies:
# Many agencies claim to be nonprofit, but that doesn’t mean they don’t charge money or work with for-profit companies. Inquire about the fees the company charges. Is there a setup fee? Monthly payments? Does the company keep the first payment, or does some of it go towards your debts? Fees should fall within your ability to pay, and any agency that is trying to help you will know this. A company that charges hundreds or thousands of dollars in setup fees is probably not interested in anything other than your money.
# Ask the counselor how he or she is compensated. A salary or hourly wage is a good answer, but you should be suspicious if they are on commission or earn incentives by steering you towards expensive debt consolidation programs. A good counselor should direct you towards solutions that help you, not solutions that earn them more money.
# Will your creditors work with this agency? Call your creditors directly and ask them if they will negotiate with the specific agency you’re seeing. Counselors often state that they can get your creditors to lower fees, restructure debt or lower interest rates. Can they? Call the creditors yourself to be sure.
# Make sure that you get all of the counselors promises and terms in writing. Anything that he or she tells you verbally isn’t binding, so don’t believe it if it isn’t written down.
# Make sure your agency provides you with monthly reports that state how much you have paid them and who is receiving the payments. Don’t take them at their word that your bills are being paid; verify it.
# Check with your local Chamber of Commerce or Better Business Bureau to make sure that there are no outstanding complaints against this agency. The counseling business is full of fraud, and complaints are common. It’s smart to inquire.
By taking your time, asking the right questions, and doing proper research, you should be able to find a helpful and reputable credit counselor who can help you reduce or eliminate your debts. Thousands of Americans are victimized each year by predatory counseling firms, but there’s no reason why you should become a victim of one. If you have problem debt, you have trouble enough already without looking for more.
About The Author
©Copyright 2005 by Retro Marketing.
Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com, a site devoted to debt consolidation and credit counseling.
Credit counseling is a useful service for anyone with problem debt. A good counseling agency can provide advice regarding money management and debt consolidation. They can also help arrange a repayment plan with your creditors to help you get out of debt. A bad agency can charge excessive fees, pocket money that was intended to pay your bills, and steer you into greater debt than before. Predatory credit counseling has become a multibillion dollar industry, and with the recent passage of the Bankruptcy Abuse and Consumer Protection Act, credit counseling will soon become mandatory for anyone filing for bankruptcy. How can you avoid becoming a victim of credit counseling scams? How can you choose a helpful and reputable credit counselor?
Here are a few tips that can help you avoid becoming a victim of predatory agencies:
# Many agencies claim to be nonprofit, but that doesn’t mean they don’t charge money or work with for-profit companies. Inquire about the fees the company charges. Is there a setup fee? Monthly payments? Does the company keep the first payment, or does some of it go towards your debts? Fees should fall within your ability to pay, and any agency that is trying to help you will know this. A company that charges hundreds or thousands of dollars in setup fees is probably not interested in anything other than your money.
# Ask the counselor how he or she is compensated. A salary or hourly wage is a good answer, but you should be suspicious if they are on commission or earn incentives by steering you towards expensive debt consolidation programs. A good counselor should direct you towards solutions that help you, not solutions that earn them more money.
# Will your creditors work with this agency? Call your creditors directly and ask them if they will negotiate with the specific agency you’re seeing. Counselors often state that they can get your creditors to lower fees, restructure debt or lower interest rates. Can they? Call the creditors yourself to be sure.
# Make sure that you get all of the counselors promises and terms in writing. Anything that he or she tells you verbally isn’t binding, so don’t believe it if it isn’t written down.
# Make sure your agency provides you with monthly reports that state how much you have paid them and who is receiving the payments. Don’t take them at their word that your bills are being paid; verify it.
# Check with your local Chamber of Commerce or Better Business Bureau to make sure that there are no outstanding complaints against this agency. The counseling business is full of fraud, and complaints are common. It’s smart to inquire.
By taking your time, asking the right questions, and doing proper research, you should be able to find a helpful and reputable credit counselor who can help you reduce or eliminate your debts. Thousands of Americans are victimized each year by predatory counseling firms, but there’s no reason why you should become a victim of one. If you have problem debt, you have trouble enough already without looking for more.
About The Author
©Copyright 2005 by Retro Marketing.
Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including http://www.End-Your-Debt.com, a site devoted to debt consolidation and credit counseling.
Credit Card Debt Reduction - 3 Tips To Lowering Credit Card Debt
by: Carrie Reeder
Credit card debt can be reduced through lower rates or negotiating for reduced balances. With reduced interest, you can pay off the principal quicker with the same monthly payment. The other approach is debt settlement, which eliminates part of your debt at the cost of your credit score.
1. Transfer Balances
Credit card companies are always offering introductory deals, such as 0% on transfers. Usually such offers last for several months, giving you the chance to make sizeable payments on your principal.
If you have several credit cards, choose to transfer the account with the smallest amount. Pay off that account, then take that card’s monthly payment and apply it to your next lowest balance. Soon you will be creating a snowball affect, swiftly lowering your debt. Make sure to close paid off accounts to raise your credit score and keep from adding to your debt.
2. Negotiate Lower Rates
Credit card companies are also willing to lower rates. You can try to do this on your own, but you will have more success with a debt management company. For a monthly fee, they will lower rates with credit card companies and handle your monthly payments.
Debt management plans can affect your credit temporarily if your creditors report delayed or reduced payments. This might prevent you from opening new accounts for a year or more. However, with such plans you can be out of short term debt in less than five years with a much better credit score.
3. Settle For Reduction In Debt
Debt negotiation is the most drastic step to lower your credit card debt since it has long term affects on your credit. A debt negotiation company can settle some of your debt with creditors. Lenders will then report the reduced amount to the credit reporting agencies, which will keep it on your record for seven years. Debt negotiation is similar to bankruptcy and can prevent you from qualifying for conventional credit for a couple of years.
Reducing your credit card debt will have long term benefits for you. Less credit means better rates when you do want to apply for financing, especially with a home or car purchase. No matter which option you choose, research companies carefully and compare their services and fees.
About The Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.
View our recommended companies for Credit Card Debt Help http://www.abcloanguide.com/debtconsolidation.shtml.
Credit card debt can be reduced through lower rates or negotiating for reduced balances. With reduced interest, you can pay off the principal quicker with the same monthly payment. The other approach is debt settlement, which eliminates part of your debt at the cost of your credit score.
1. Transfer Balances
Credit card companies are always offering introductory deals, such as 0% on transfers. Usually such offers last for several months, giving you the chance to make sizeable payments on your principal.
If you have several credit cards, choose to transfer the account with the smallest amount. Pay off that account, then take that card’s monthly payment and apply it to your next lowest balance. Soon you will be creating a snowball affect, swiftly lowering your debt. Make sure to close paid off accounts to raise your credit score and keep from adding to your debt.
2. Negotiate Lower Rates
Credit card companies are also willing to lower rates. You can try to do this on your own, but you will have more success with a debt management company. For a monthly fee, they will lower rates with credit card companies and handle your monthly payments.
Debt management plans can affect your credit temporarily if your creditors report delayed or reduced payments. This might prevent you from opening new accounts for a year or more. However, with such plans you can be out of short term debt in less than five years with a much better credit score.
3. Settle For Reduction In Debt
Debt negotiation is the most drastic step to lower your credit card debt since it has long term affects on your credit. A debt negotiation company can settle some of your debt with creditors. Lenders will then report the reduced amount to the credit reporting agencies, which will keep it on your record for seven years. Debt negotiation is similar to bankruptcy and can prevent you from qualifying for conventional credit for a couple of years.
Reducing your credit card debt will have long term benefits for you. Less credit means better rates when you do want to apply for financing, especially with a home or car purchase. No matter which option you choose, research companies carefully and compare their services and fees.
About The Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.
View our recommended companies for Credit Card Debt Help http://www.abcloanguide.com/debtconsolidation.shtml.
Credit Card Application Tips
by: Colm Carraher
When you are filling out a credit card application form, there are some tips you should know about that may help you get accepted.
The Internet is probably the best place to start if you are looking for a credit card. There are millions of ways to gather information and to see what credit card will suit you best.
Before applying for a credit card, you must check your own finances and see if you can handle a credit card. Even the best of us are prone to go on a small shopping spree every now and then; and when the bill comes through, we panic and it can end up in a downward spiral if we are not careful.
If you shop around, then you are more than likely to find the credit card that you have been looking for even if you have a bad credit history. The amount of credit cards that are available to you and everyone else is staggering.
There are still companies that claim that they will give you a credit card without looking at your credit history. But be warned that having a credit card can almost force you into debt. You must be careful when choosing a credit card; always check the small print of everything that you sign. And if you find something that doesn’t look right, then you can refuse to sign the form; or even better - get your lawyer to look at it and he will give you all the advice that you need.
Credit cards are items that should be handled with caution; if you think that you can't handle a credit card, then DON’T apply. You need to be absolutely sure that you can pay the bill every time it arrives in your mailbox. If you think you are not ready for this responsibility, then decline credit card offers until you feel you are.
About The Author
Colm Carraher is an author and regular contributor to www.studentlifesite.com/credit - A comprehensive online resource packed with hints and tips for all credit related topics.
When you are filling out a credit card application form, there are some tips you should know about that may help you get accepted.
The Internet is probably the best place to start if you are looking for a credit card. There are millions of ways to gather information and to see what credit card will suit you best.
Before applying for a credit card, you must check your own finances and see if you can handle a credit card. Even the best of us are prone to go on a small shopping spree every now and then; and when the bill comes through, we panic and it can end up in a downward spiral if we are not careful.
If you shop around, then you are more than likely to find the credit card that you have been looking for even if you have a bad credit history. The amount of credit cards that are available to you and everyone else is staggering.
There are still companies that claim that they will give you a credit card without looking at your credit history. But be warned that having a credit card can almost force you into debt. You must be careful when choosing a credit card; always check the small print of everything that you sign. And if you find something that doesn’t look right, then you can refuse to sign the form; or even better - get your lawyer to look at it and he will give you all the advice that you need.
Credit cards are items that should be handled with caution; if you think that you can't handle a credit card, then DON’T apply. You need to be absolutely sure that you can pay the bill every time it arrives in your mailbox. If you think you are not ready for this responsibility, then decline credit card offers until you feel you are.
About The Author
Colm Carraher is an author and regular contributor to www.studentlifesite.com/credit - A comprehensive online resource packed with hints and tips for all credit related topics.
Cheap Loans – Tips For Borrowing Money At Low Cost
by: George Kane
When availing a loan, it is important that the borrowed amount does not become a burden on your limited earnings. If any such loan results in high monthly outgoings, then you are likely to make payment faults. Your focus, therefore, should be on finding loans at cheap rate of interest and at low costs.
You should note that a low rate of interest on any loan comes only when the borrower does not carry risks. This means that your credit history should have no blemishes like late payments and payment defaults. It is advisable to check your credit report, which you can get from any of the three major bureaus. Make sure that the report has mentioned all of your payments that you made in the past. Ensure that your FICO credit rating is above 600. In case of the credit score falling to lower levels, ensure that you approach the lenders with an improved score.
To ensure the interest at low rate, borrow an amount against your home or any property. Such a secured loan has little risks for the lenders, and they are ready to reduce the rate. However, the lender will sell the property, if you make do not make timely repayments. It is advisable to borrow an amount, which is lower than value of the property that you pledged as collateral.
An unsecured loan carries higher interest rate. Nevertheless, such a loan may come at comparatively lower rate, if the borrower boasts of excellent or good credit history.
Another aspect of cheap loans is its fewer additional charges. This is because, usually, these loans come through online process, which is less costly for the borrowers. Make sure that you have compare different lenders, in order to find out which lender is charging interest at lower rate.
About The Author
George Kane has no formal degree in finance, but years of work that he has put in the finance industry makes him perfectly eligible to be called an expert in financial matters. To find Cheap Loans, Cheap APR Loans, Low APR Loans visit http://www.cheapaprloans.co.uk/
When availing a loan, it is important that the borrowed amount does not become a burden on your limited earnings. If any such loan results in high monthly outgoings, then you are likely to make payment faults. Your focus, therefore, should be on finding loans at cheap rate of interest and at low costs.
You should note that a low rate of interest on any loan comes only when the borrower does not carry risks. This means that your credit history should have no blemishes like late payments and payment defaults. It is advisable to check your credit report, which you can get from any of the three major bureaus. Make sure that the report has mentioned all of your payments that you made in the past. Ensure that your FICO credit rating is above 600. In case of the credit score falling to lower levels, ensure that you approach the lenders with an improved score.
To ensure the interest at low rate, borrow an amount against your home or any property. Such a secured loan has little risks for the lenders, and they are ready to reduce the rate. However, the lender will sell the property, if you make do not make timely repayments. It is advisable to borrow an amount, which is lower than value of the property that you pledged as collateral.
An unsecured loan carries higher interest rate. Nevertheless, such a loan may come at comparatively lower rate, if the borrower boasts of excellent or good credit history.
Another aspect of cheap loans is its fewer additional charges. This is because, usually, these loans come through online process, which is less costly for the borrowers. Make sure that you have compare different lenders, in order to find out which lender is charging interest at lower rate.
About The Author
George Kane has no formal degree in finance, but years of work that he has put in the finance industry makes him perfectly eligible to be called an expert in financial matters. To find Cheap Loans, Cheap APR Loans, Low APR Loans visit http://www.cheapaprloans.co.uk/
Wednesday, July 9, 2008
Bad Credit Mortgage Refinance Tips
By: Jeff Schuman
Not to long ago if you had bad credit it was hard for you to get a loan to buy a house. There were not as many options as there are today. That is not true today. Many lenders have programs for first mortgage loans and refinancing as well. Here are some tips on how you may be able to refinance your mortgage if you have bad credit.
First of all try and work with a mortgage professional who specializes in mortgage refinancing for those with bad credit. You may have more options available than you realize. A mortgage loan consultant who deals with bad credit applicants everyday is going to be on top of the different types of loans just for your situation. Your job is to provide all of the information to them in an honest and timely manner. Hiding something that may come up later does neither of you any good.
Did you know you can get a copy of your credit report from the major credit bureaus one time each year. Knowing how your credit score is improving can impact whether you want to refinance as well. Over time previous things that had a negative effect on your credit can go away or be removed. It is to your advantage to know your credit score before you refinance your mortgage.
There are 3 types of mortgage refinancing loans. A fixed rate loan has an interest rate that stays the same over the life of the loan. An adjustable rate mortgage loan is know as an arm for short. In an arm your interest rate adjusts over a period of time. In a hybrid loan the interest rate is fixed for a period of time and adjusts for the rest of the loan. A point is equal to 1% of the total loan amount. Determining whether you want to purchase points when you refinance is one thing to discuss with your mortgage expert. Understanding the 3 loan types will help you decide which interest rate to choose.
As property values have risen over the years many lenders will loan people with bad credit money if they feel secure in the value of the property. If you are refinancing and have seen the value of your home increase since you last refinanced or since your loan originated then you have options. A bad credit mortgage refinance may be possible for you. Consult with a mortgage advisor to see if this is true for you.
Get free articles in various topic for your website or blog content as much as you want at Article Directory: http://www.articlecompilation.com
Jeff Schuman invites you to visit his mortgage-refinancing.team-schuman.com>mortgage refinancing website for refinancing information, rates, and a free no obligation www.team-schuman.com/mortgage-refinancing/refinance-quote.html>refinance quote. mortgage-refinancing.team-schuman.com> mortgage-refinancing.team-schuman.com
Not to long ago if you had bad credit it was hard for you to get a loan to buy a house. There were not as many options as there are today. That is not true today. Many lenders have programs for first mortgage loans and refinancing as well. Here are some tips on how you may be able to refinance your mortgage if you have bad credit.
First of all try and work with a mortgage professional who specializes in mortgage refinancing for those with bad credit. You may have more options available than you realize. A mortgage loan consultant who deals with bad credit applicants everyday is going to be on top of the different types of loans just for your situation. Your job is to provide all of the information to them in an honest and timely manner. Hiding something that may come up later does neither of you any good.
Did you know you can get a copy of your credit report from the major credit bureaus one time each year. Knowing how your credit score is improving can impact whether you want to refinance as well. Over time previous things that had a negative effect on your credit can go away or be removed. It is to your advantage to know your credit score before you refinance your mortgage.
There are 3 types of mortgage refinancing loans. A fixed rate loan has an interest rate that stays the same over the life of the loan. An adjustable rate mortgage loan is know as an arm for short. In an arm your interest rate adjusts over a period of time. In a hybrid loan the interest rate is fixed for a period of time and adjusts for the rest of the loan. A point is equal to 1% of the total loan amount. Determining whether you want to purchase points when you refinance is one thing to discuss with your mortgage expert. Understanding the 3 loan types will help you decide which interest rate to choose.
As property values have risen over the years many lenders will loan people with bad credit money if they feel secure in the value of the property. If you are refinancing and have seen the value of your home increase since you last refinanced or since your loan originated then you have options. A bad credit mortgage refinance may be possible for you. Consult with a mortgage advisor to see if this is true for you.
Get free articles in various topic for your website or blog content as much as you want at Article Directory: http://www.articlecompilation.com
Jeff Schuman invites you to visit his mortgage-refinancing.team-schuman.com>mortgage refinancing website for refinancing information, rates, and a free no obligation www.team-schuman.com/mortgage-refinancing/refinance-quote.html>refinance quote. mortgage-refinancing.team-schuman.com> mortgage-refinancing.team-schuman.com
Bad Credit Loans – Find Tips For A Suitable Deal
by: Tom Dikkin
Even if you failed to make timely payments in the past and carry lot other faults, you can have access to bad credit loans, thanks mainly to intense competition in the loan business. However, make sure that in availing these loans, you are not laying a new trap for your self. If you do not borrow an amount in a careful manner, chances are that you will end-up in trouble.
The first caution you must take is that you borrow an amount, which is well within your repayment reach. Hence, first assess your current financial position. See how much money you can spare for making monthly payments towards the loan installments. Know your monthly outgoings, before deciding on the loan. you can use the loan for any purpose, common amongst them are home improvements, car buying, wedding, debt consolidation and holiday tour.
You are a high-risk borrower, as there may be late payments, arrears, payment defaults or CCJs, mentioned in your credit report. Get copies of the report from all the major bureaus and check it for any inaccuracies. Know your FICO rating as well. The rating will let you know the rate of interest beforehand.
It is advisable to take bad credit loans against some valued property, which will make the loan approval easier to avail. The loan amount will depend on value of the property, pledged as collateral. Such a loan carries fewer risks for the lenders. Hence, they may offer the loan at lower rate of interest. You can repay the loan in 5 to 25 years. Here, avoid larger repayment duration, as it results in you paying higher amount of interest in the end.
Tenants can go for the unsecured loan option. Only smaller amount of up to £25000 is accessible, without collateral under these loans. The repayment ranges up to 15 years or earlier. Interest rate will go higher.
One way to get bad credit loans at competitive rate and at less extra charges is to make extensive comparison of as many offers as you can. Note that your goal should be to improve your rating. Hence, ensure that you make the repayments on regular basis.
About The Author
Tom Dikkin has done his masters in Finance from Oxford university and is currently assisting Very Bad Credit Loans as a finance advisor. For more information related to Bad Credit Loans, Bad credit personal loans, Bad credit unsecured loans, Very bad credit loans please visit http://www.verybadcreditloans.co.uk/
Even if you failed to make timely payments in the past and carry lot other faults, you can have access to bad credit loans, thanks mainly to intense competition in the loan business. However, make sure that in availing these loans, you are not laying a new trap for your self. If you do not borrow an amount in a careful manner, chances are that you will end-up in trouble.
The first caution you must take is that you borrow an amount, which is well within your repayment reach. Hence, first assess your current financial position. See how much money you can spare for making monthly payments towards the loan installments. Know your monthly outgoings, before deciding on the loan. you can use the loan for any purpose, common amongst them are home improvements, car buying, wedding, debt consolidation and holiday tour.
You are a high-risk borrower, as there may be late payments, arrears, payment defaults or CCJs, mentioned in your credit report. Get copies of the report from all the major bureaus and check it for any inaccuracies. Know your FICO rating as well. The rating will let you know the rate of interest beforehand.
It is advisable to take bad credit loans against some valued property, which will make the loan approval easier to avail. The loan amount will depend on value of the property, pledged as collateral. Such a loan carries fewer risks for the lenders. Hence, they may offer the loan at lower rate of interest. You can repay the loan in 5 to 25 years. Here, avoid larger repayment duration, as it results in you paying higher amount of interest in the end.
Tenants can go for the unsecured loan option. Only smaller amount of up to £25000 is accessible, without collateral under these loans. The repayment ranges up to 15 years or earlier. Interest rate will go higher.
One way to get bad credit loans at competitive rate and at less extra charges is to make extensive comparison of as many offers as you can. Note that your goal should be to improve your rating. Hence, ensure that you make the repayments on regular basis.
About The Author
Tom Dikkin has done his masters in Finance from Oxford university and is currently assisting Very Bad Credit Loans as a finance advisor. For more information related to Bad Credit Loans, Bad credit personal loans, Bad credit unsecured loans, Very bad credit loans please visit http://www.verybadcreditloans.co.uk/
Bad Credit Car Loan Tips
by: Jeffrey Taylor
Get your Car loan approval with Bad Credit!
Know your Credit Score Before you apply
How bad is your credit? It may not be as bad as you think. If you walk into a car dealership without knowing your credit history you are at their mercy. They can basically tell you whatever they want and it will cost you when you get a high interest rate. Some car dealers will lie to you and tell you your score is lower than it is, thus justifying why your interest rate is so high. First and foremost you most know your credit score. Do not rely on the free credit reports because they will not give you your score. The money you pay for a complete report with the score included will be minor compared to what you may end up paying in excess interest for being ignorant. MyFico.com is one service that will give you all 3 scores.
You must run your credit report. There may be some things on there that will greatly affect your interest rate. Some bad credit can be corrected. First and formost get rid of any bad blemishes you can dispute. Close any open credit cards you don't need or use. Pay down or pay off your credit cards. Do not blindly apply for a loan and get declined or get a high interest rate because of factors you can control. If your score is below 620 you will a subprime buyer and you will pay the higher interest rates. Each lender has its own definition of what constitutes a subprime borrower.
Apply online for a loan first.
There are many lenders that will finance subprime buyers. It is in your best interest to get approved before you go to the dealer to buy. This way you know exactly what interest rate you should be paying. The dealer will not do what is in your best interests and you may end up paying more than you should. Shop around, because rates will vary from lender to lender.
If you want to use the dealer for financing.
It's ok to use the dealer for your financing as long as you are prepared for their tricks. Have a copy of your credit report in your hand so they cannot lie to you about your score. Know what the current loan rates are and let them know you will not accept a higher rate. Be prepared to get up and leave if they won't meet your demands. Most dealers have access to many lenders and if you push them hard they will shop the best rate. One place to look for the interest rates on cars is BankRate.com Just because you have bad credit does not mean you should be bullied into accepting a deal you are not happy with. Just say no thanks and go to another dealer.
Here is a list of questions you must ask when in the finance office:
1. What is the precise (to the penny) price I am paying for the vehicle?
2. What is the total amount being financed?
3. What is the dollar amount I'm paying for the credit (finance charge)?
4. What is the exact amount of each payment?
5. What is the total number of payments? Dont get sucked into a 6+ year loan to get your payment lower.
6. Very Important! Is this deal contingent on getting subsequent approval of the financing from a third party? Watch for the "Subject To Financing" clause on the contract. This is where they nail you. they send you home with a so called approved deal and call you several days or weeks later to inform you that the financing fell through and they can't get you the rate they quoted, but they found a lender who will cover the loan at a higher rate. Make sure the deal is approved by the lender before leaving the lot. If there's any question, tell the dealer you'll come back and get the car when everything is settled.
7. Is there a pre-payment penalty if I pay this loan off early?
We advise you to get your car loan online and bring it to the dealer. This allows you to focus on the selling price of the car instead of the monthly payment. You can also use your online approval as leverage against the finance office at the dealership. If they can beat your loan approval you can consider them for your financing.
Buy Here Pay Here as your last resort.
You have tried every lender and have been denied. You have looked at your credit report and know why you are being denied. At this point you must decide how bad do you need a car? There is one final way to get a car. There are many "Buy Here Pay Here" dealers so don't get strong armed into a car that does not fit your needs. Be very careful that you are buying a quality used car or you will end up with a piece of junk that is in the shop more than on the road. Many of the smaller dealers buy unwanted auction and wholesale cars that may not be in very good shape. You have the option to walk out of any dealer that is trying to sell you a high mile piece of junk. There are a lot of big dealers that sell quality used cars that offer in-house financing. Always explore your options before you sign anything. You should avoid any dealer that is offering 20% + loans. You should expect to pay around 18% or lower.
Bring the right paperwork to speed up the process. Most dealers want the following paperwork when you process a loan with them. Have the following items in your folder when you arrive at the dealer. Drivers License, Proof of Auto Insurance, Financial Info (bank and credit card account info), Social Security Number, References, Proof of Employment and paystubs, Proof of Residence, Current phone bill or other utility bill), and a down payment. We advise you to call the dealer first to get an exact list of what they require.
Find out what type of payment do they take? Do you have to deliver the payment or do they take payment over the phone or online? What is their late payment policy? If you are late on a payment you do not want to wake up and find your car has been repossessed overnight. Do they sell low mile quality vehicles? It is in their best interests to sell quality cars but there are dealers out there that sell junk. Do they report to the credit bureaus? You want your good credit history with them to be reported to help build your credit score back up.
Repair and improve your credit!
Bad credit can be fixed. It takes time but it is worth the effort. Although you may be in a high interest loan today, if you work hard at improving your credit your next car loan will be much lower. Watch out for credit repair companies that promise to fix your credit fast. If you are going to use a credit repair company make sure they are reputable.
About The Author
Jeffrey Taylor is a Car Buying expert and has been helping people buy cars for over 11 years. For more information about Bad Credit Car Loans and links to online bad credit lenders go to http://badcreditcarloanguide.com
Get your Car loan approval with Bad Credit!
Know your Credit Score Before you apply
How bad is your credit? It may not be as bad as you think. If you walk into a car dealership without knowing your credit history you are at their mercy. They can basically tell you whatever they want and it will cost you when you get a high interest rate. Some car dealers will lie to you and tell you your score is lower than it is, thus justifying why your interest rate is so high. First and foremost you most know your credit score. Do not rely on the free credit reports because they will not give you your score. The money you pay for a complete report with the score included will be minor compared to what you may end up paying in excess interest for being ignorant. MyFico.com is one service that will give you all 3 scores.
You must run your credit report. There may be some things on there that will greatly affect your interest rate. Some bad credit can be corrected. First and formost get rid of any bad blemishes you can dispute. Close any open credit cards you don't need or use. Pay down or pay off your credit cards. Do not blindly apply for a loan and get declined or get a high interest rate because of factors you can control. If your score is below 620 you will a subprime buyer and you will pay the higher interest rates. Each lender has its own definition of what constitutes a subprime borrower.
Apply online for a loan first.
There are many lenders that will finance subprime buyers. It is in your best interest to get approved before you go to the dealer to buy. This way you know exactly what interest rate you should be paying. The dealer will not do what is in your best interests and you may end up paying more than you should. Shop around, because rates will vary from lender to lender.
If you want to use the dealer for financing.
It's ok to use the dealer for your financing as long as you are prepared for their tricks. Have a copy of your credit report in your hand so they cannot lie to you about your score. Know what the current loan rates are and let them know you will not accept a higher rate. Be prepared to get up and leave if they won't meet your demands. Most dealers have access to many lenders and if you push them hard they will shop the best rate. One place to look for the interest rates on cars is BankRate.com Just because you have bad credit does not mean you should be bullied into accepting a deal you are not happy with. Just say no thanks and go to another dealer.
Here is a list of questions you must ask when in the finance office:
1. What is the precise (to the penny) price I am paying for the vehicle?
2. What is the total amount being financed?
3. What is the dollar amount I'm paying for the credit (finance charge)?
4. What is the exact amount of each payment?
5. What is the total number of payments? Dont get sucked into a 6+ year loan to get your payment lower.
6. Very Important! Is this deal contingent on getting subsequent approval of the financing from a third party? Watch for the "Subject To Financing" clause on the contract. This is where they nail you. they send you home with a so called approved deal and call you several days or weeks later to inform you that the financing fell through and they can't get you the rate they quoted, but they found a lender who will cover the loan at a higher rate. Make sure the deal is approved by the lender before leaving the lot. If there's any question, tell the dealer you'll come back and get the car when everything is settled.
7. Is there a pre-payment penalty if I pay this loan off early?
We advise you to get your car loan online and bring it to the dealer. This allows you to focus on the selling price of the car instead of the monthly payment. You can also use your online approval as leverage against the finance office at the dealership. If they can beat your loan approval you can consider them for your financing.
Buy Here Pay Here as your last resort.
You have tried every lender and have been denied. You have looked at your credit report and know why you are being denied. At this point you must decide how bad do you need a car? There is one final way to get a car. There are many "Buy Here Pay Here" dealers so don't get strong armed into a car that does not fit your needs. Be very careful that you are buying a quality used car or you will end up with a piece of junk that is in the shop more than on the road. Many of the smaller dealers buy unwanted auction and wholesale cars that may not be in very good shape. You have the option to walk out of any dealer that is trying to sell you a high mile piece of junk. There are a lot of big dealers that sell quality used cars that offer in-house financing. Always explore your options before you sign anything. You should avoid any dealer that is offering 20% + loans. You should expect to pay around 18% or lower.
Bring the right paperwork to speed up the process. Most dealers want the following paperwork when you process a loan with them. Have the following items in your folder when you arrive at the dealer. Drivers License, Proof of Auto Insurance, Financial Info (bank and credit card account info), Social Security Number, References, Proof of Employment and paystubs, Proof of Residence, Current phone bill or other utility bill), and a down payment. We advise you to call the dealer first to get an exact list of what they require.
Find out what type of payment do they take? Do you have to deliver the payment or do they take payment over the phone or online? What is their late payment policy? If you are late on a payment you do not want to wake up and find your car has been repossessed overnight. Do they sell low mile quality vehicles? It is in their best interests to sell quality cars but there are dealers out there that sell junk. Do they report to the credit bureaus? You want your good credit history with them to be reported to help build your credit score back up.
Repair and improve your credit!
Bad credit can be fixed. It takes time but it is worth the effort. Although you may be in a high interest loan today, if you work hard at improving your credit your next car loan will be much lower. Watch out for credit repair companies that promise to fix your credit fast. If you are going to use a credit repair company make sure they are reputable.
About The Author
Jeffrey Taylor is a Car Buying expert and has been helping people buy cars for over 11 years. For more information about Bad Credit Car Loans and links to online bad credit lenders go to http://badcreditcarloanguide.com
Bad Credit Automobile Loans - Tips On Finding A Good Lender
by: Carrie Reeder
Much like the bad credit home loan market, the bad credit automobile loan market is a crowded and competitive arena. If you find yourself in the position of needing a bad credit automobile loan use caution in selecting your lender. While most lenders dealing in the bad credit car loan sector are honest, there are those who skirt the law with predatory loan practices. Knowledge is the best defense against these dishonest loan agents. Know more about your own credit than the lenders do. Arm yourself with a recent credit report and FICO score. If a lender says he has different information about your credit than you do, ask him for his sources. If at all possible deal with a financial institution where you already have a banking relationship. Many banks and credit unions will help you apply for "second chance" programs. They know that when they help their customers in the short run they will retain the business of those customers in the long run.
Be Careful With Who You Apply With - Be extremely cautious when responding to any solicitations from bad credit lenders no matter how those solicitations are received. Do not give any sensitive personal information to a lender until you have checked the company out with the Better Business Bureau. The best course of action is to initiate contact with a lender yourself from a list you have compiled through the Better Business Bureau and personal references. Don’t be embarrassed by the fact that you are having to inquire about a bad credit automobile loan. Many lenders make more money off of their bad credit customers than off of their more credit worthy customers.
Find out the current interest rates - Interest rates fluctuate from day to day, so check them often. Depending upon the state of your credit you can expect to pay from as little as 2% above the average rate to as much as 17% above the average rate. Rates above this are in many cases illegal. Watch out for lenders who charge the legal rates but tack on an assortment of finance charges and prepayment penalties.
Research The Price of Your Car - When you have narrowed down your car choices, research the value of the different models. The price of a car being financed with a bad credit loan may be a little higher than the same car for a good credit loan, however, the difference should only be a few hundred dollars not a few thousand dollars. You can become trapped in loan if the dealer inflates the price to the point where the car is financed for more than it is worth. Just as you will shop for your car, shop for your lender and let all of them know that you are talking with more than one company. If you think a lender can do better, state your case and ask for different terms.
Any reputable lender will put its proposals in writing with all the blanks filled in. Further, you should always be allowed ample time to read all of the loan documents. Walk away from any lender who pushes you to sign something that you haven’t had time to read. There are compromises you will have to make because you need to obtain a bad credit auto loan. These compromises don’t include being taken advantage of by a predatory lender. A bad credit auto loan should be a stepping stone to reestablishing your credit not a trap that may result in additional credit difficulties.
About The Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.
View our recommended Bad Credit Car Loan http://www.abcloanguide.com/badcreditcarloans.shtml lenders.
Much like the bad credit home loan market, the bad credit automobile loan market is a crowded and competitive arena. If you find yourself in the position of needing a bad credit automobile loan use caution in selecting your lender. While most lenders dealing in the bad credit car loan sector are honest, there are those who skirt the law with predatory loan practices. Knowledge is the best defense against these dishonest loan agents. Know more about your own credit than the lenders do. Arm yourself with a recent credit report and FICO score. If a lender says he has different information about your credit than you do, ask him for his sources. If at all possible deal with a financial institution where you already have a banking relationship. Many banks and credit unions will help you apply for "second chance" programs. They know that when they help their customers in the short run they will retain the business of those customers in the long run.
Be Careful With Who You Apply With - Be extremely cautious when responding to any solicitations from bad credit lenders no matter how those solicitations are received. Do not give any sensitive personal information to a lender until you have checked the company out with the Better Business Bureau. The best course of action is to initiate contact with a lender yourself from a list you have compiled through the Better Business Bureau and personal references. Don’t be embarrassed by the fact that you are having to inquire about a bad credit automobile loan. Many lenders make more money off of their bad credit customers than off of their more credit worthy customers.
Find out the current interest rates - Interest rates fluctuate from day to day, so check them often. Depending upon the state of your credit you can expect to pay from as little as 2% above the average rate to as much as 17% above the average rate. Rates above this are in many cases illegal. Watch out for lenders who charge the legal rates but tack on an assortment of finance charges and prepayment penalties.
Research The Price of Your Car - When you have narrowed down your car choices, research the value of the different models. The price of a car being financed with a bad credit loan may be a little higher than the same car for a good credit loan, however, the difference should only be a few hundred dollars not a few thousand dollars. You can become trapped in loan if the dealer inflates the price to the point where the car is financed for more than it is worth. Just as you will shop for your car, shop for your lender and let all of them know that you are talking with more than one company. If you think a lender can do better, state your case and ask for different terms.
Any reputable lender will put its proposals in writing with all the blanks filled in. Further, you should always be allowed ample time to read all of the loan documents. Walk away from any lender who pushes you to sign something that you haven’t had time to read. There are compromises you will have to make because you need to obtain a bad credit auto loan. These compromises don’t include being taken advantage of by a predatory lender. A bad credit auto loan should be a stepping stone to reestablishing your credit not a trap that may result in additional credit difficulties.
About The Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.
View our recommended Bad Credit Car Loan http://www.abcloanguide.com/badcreditcarloans.shtml lenders.
Bad Credit Auto Loan Refinance - Bad Credit Auto Refinance Tips
by: Carrie Reeder
Most people know that it is possible to refinance their homes but did you know it is also possible to refinance your auto? Indeed for many people who have high interest sub prime car loans, refinancing their auto loans may be a wise decision. How do you know when refinancing your bad credit auto loan might be a good idea? And once you have decided to refinance, how should you go about doing it so that you actually improve your loan situation?
Just as when you refinance your home loan, when you refinance your auto loan the old loan is paid off in full and it is replaced by a new loan. If when you bought your car your credit score was below 620, the interest rate on your auto loan may be significantly above the interest rate you can qualify for today. By refinancing your bad credit auto loan the monthly payment may go down substantially. Also, over the life of the loan you may save several thousand dollars in interest payments.
You may be a candidate for an auto loan refinance if
Your car loan has become "seasoned"; that is, if you have had it for at least a year.
You have made your payments in a timely manner.
Your car’s value is more than the amount you owe on it.
If all of the above statements are true, then it may be time to investigate refinancing your car.
First, make sure you are fully aware of the state of your current credit report and current credit rating. Both of these are easily available online. You are entitled to one free credit report each year. Your current credit score (FICO score) should also be available for a nominal fee.
Second, find out your car’s value. Having your car appraised is not a requirement for refinancing your auto loan but you should know its value. Most auto loan refinance companies require that your loan be at least $7,500 so your car value must be at least that amount. At your local bookstore and online there are many resources for estimating your car’s worth. Two of the most popular sources are the Kelley Blue Book and Edmunds Buyer Guides. Be sure and have a realistic eye when surveying your car’s condition, you can be sure your lender will.
Third, research the available lenders. It may be that your current lender will be open to refinancing your car. However, you should shop around for the institution that will give you the lowest interest rate and refinance as small an amount as possible. When these two conditions are met you will then also get the lowest monthly payment available.
Fourth, as with any loan, have all offers put in writing. Take the time to read the fine print and compare the proposals.
Finding a lender to refinance your bad credit auto loan may take some time and effort. The savings to your pocketbook every month and over the life of the loan, however, can easily make the time and effort worthwhile.
About The Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.
View her recommended http://www.abcloanguide.com/badcreditcarloans.shtml lenders.
Most people know that it is possible to refinance their homes but did you know it is also possible to refinance your auto? Indeed for many people who have high interest sub prime car loans, refinancing their auto loans may be a wise decision. How do you know when refinancing your bad credit auto loan might be a good idea? And once you have decided to refinance, how should you go about doing it so that you actually improve your loan situation?
Just as when you refinance your home loan, when you refinance your auto loan the old loan is paid off in full and it is replaced by a new loan. If when you bought your car your credit score was below 620, the interest rate on your auto loan may be significantly above the interest rate you can qualify for today. By refinancing your bad credit auto loan the monthly payment may go down substantially. Also, over the life of the loan you may save several thousand dollars in interest payments.
You may be a candidate for an auto loan refinance if
Your car loan has become "seasoned"; that is, if you have had it for at least a year.
You have made your payments in a timely manner.
Your car’s value is more than the amount you owe on it.
If all of the above statements are true, then it may be time to investigate refinancing your car.
First, make sure you are fully aware of the state of your current credit report and current credit rating. Both of these are easily available online. You are entitled to one free credit report each year. Your current credit score (FICO score) should also be available for a nominal fee.
Second, find out your car’s value. Having your car appraised is not a requirement for refinancing your auto loan but you should know its value. Most auto loan refinance companies require that your loan be at least $7,500 so your car value must be at least that amount. At your local bookstore and online there are many resources for estimating your car’s worth. Two of the most popular sources are the Kelley Blue Book and Edmunds Buyer Guides. Be sure and have a realistic eye when surveying your car’s condition, you can be sure your lender will.
Third, research the available lenders. It may be that your current lender will be open to refinancing your car. However, you should shop around for the institution that will give you the lowest interest rate and refinance as small an amount as possible. When these two conditions are met you will then also get the lowest monthly payment available.
Fourth, as with any loan, have all offers put in writing. Take the time to read the fine print and compare the proposals.
Finding a lender to refinance your bad credit auto loan may take some time and effort. The savings to your pocketbook every month and over the life of the loan, however, can easily make the time and effort worthwhile.
About The Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans.
View her recommended http://www.abcloanguide.com/badcreditcarloans.shtml lenders.
Auto Loan Buying Tips
by: Duane Lipham
Have you ever felt like you bought an auto and financed it and don't really know if you got the right price or financing arrangements after it was all over? Well, don't feel alone. This is a common experience for many people who make auto purchases.
Guidelines for negotiating the car price can be found elsewhere, but we want to share some helpful tips on getting that vehicle financed at the best rates and terms for you.
The first step is to make sure that you negotiate the car's price separate from the vehicle financing arrangements. Most dealers want to lump it all together because they can hide quite a bit of the actual price of the vehicle in the loan contract, and they will usually just try to meet a monthly payment figure that you can live with rather than disclose all the details about the loan.
So your work actually should begin before you ever visit the dealer lot. Try to determine beforehand what vehicle(s) you are interested in buying and become familiar with the average cost for that vehicle, either online or locally. Then make sure that it will fit your budget. Most financial experts recommend that you shouldn't spend more than 10% of your monthly income on vehicle costs, including the loan, gas, repairs, insurance, etc.
Since you now know the price that you want to pay, you need to find out what the loan will cost, so visit some auto loan websites and/or local banks, and apply for an auto loan. See what rates and terms they offer you. Much of that will be determined by your credit history. If you can get pre-approved for a loan, all the better.
Experts also recommend that you try to put at least 20% of the car price on the loan as a down payment toward the purchase of the vehicle, either in cash or in the trade equity of your current vehicle. Why? Well, so many people are being put into loans these days with longer and longer payback periods and little down payment and the net result is that if they want to trade that car in within the first year or so they find that they actually may owe more on the car than it is even worth. So using sound financial decisions beforehand can prevent this from happening.
Now, using all of this information, the price you are willing to pay for the vehicle you want, the average loan you can get, and the best terms that you can get that will fit within your budget, you are now ready to visit the dealer, find the vehicle you have been thinking about and get the deal that will fit your needs. Remember to negotiate the price of the vehicle without financing first. After you settle on the sales price you can then reveal what finance terms you already have found and see if they can beat it.
Get the particulars in writing too. What is the price for the new vehicle? What is the trade amount for your old vehicle if you have one? If you finance through the dealer, what is the APR, the total amount financed, the total amount paid at the end of the loan, the total number of payments and the monthly payment figure itself? If the dealer will not give this clear, concise information, leave and go somewhere else to buy. If they can compete with your prearranged loan terms, then great. If not, get your auto loan elsewhere.
A word of caution. Keep it to business. It's exciting to buy a new car and it's also easy to get carried away and buy more vehicle than you need or previously wanted just because it looks so good or has so many features that the dealer will try to convince you that you can't live without. Having predetermined what car you want and the price you are willing to pay will keep you safe in these negotiations but only if you stick to your guns and don't give in to being upsold.
Using these strategies keeps you in control of the negotiation process and keeps you informed all along the way so that you can be confident that the vehicle and the auto loan you purchase is indeed the deal that you wanted.
About The Author
Duane Lipham is a senior editor for http://www.loans.dlbws.com which provides free information and resources for auto, personal, mortgage, home equity, and refinance loans.
Have you ever felt like you bought an auto and financed it and don't really know if you got the right price or financing arrangements after it was all over? Well, don't feel alone. This is a common experience for many people who make auto purchases.
Guidelines for negotiating the car price can be found elsewhere, but we want to share some helpful tips on getting that vehicle financed at the best rates and terms for you.
The first step is to make sure that you negotiate the car's price separate from the vehicle financing arrangements. Most dealers want to lump it all together because they can hide quite a bit of the actual price of the vehicle in the loan contract, and they will usually just try to meet a monthly payment figure that you can live with rather than disclose all the details about the loan.
So your work actually should begin before you ever visit the dealer lot. Try to determine beforehand what vehicle(s) you are interested in buying and become familiar with the average cost for that vehicle, either online or locally. Then make sure that it will fit your budget. Most financial experts recommend that you shouldn't spend more than 10% of your monthly income on vehicle costs, including the loan, gas, repairs, insurance, etc.
Since you now know the price that you want to pay, you need to find out what the loan will cost, so visit some auto loan websites and/or local banks, and apply for an auto loan. See what rates and terms they offer you. Much of that will be determined by your credit history. If you can get pre-approved for a loan, all the better.
Experts also recommend that you try to put at least 20% of the car price on the loan as a down payment toward the purchase of the vehicle, either in cash or in the trade equity of your current vehicle. Why? Well, so many people are being put into loans these days with longer and longer payback periods and little down payment and the net result is that if they want to trade that car in within the first year or so they find that they actually may owe more on the car than it is even worth. So using sound financial decisions beforehand can prevent this from happening.
Now, using all of this information, the price you are willing to pay for the vehicle you want, the average loan you can get, and the best terms that you can get that will fit within your budget, you are now ready to visit the dealer, find the vehicle you have been thinking about and get the deal that will fit your needs. Remember to negotiate the price of the vehicle without financing first. After you settle on the sales price you can then reveal what finance terms you already have found and see if they can beat it.
Get the particulars in writing too. What is the price for the new vehicle? What is the trade amount for your old vehicle if you have one? If you finance through the dealer, what is the APR, the total amount financed, the total amount paid at the end of the loan, the total number of payments and the monthly payment figure itself? If the dealer will not give this clear, concise information, leave and go somewhere else to buy. If they can compete with your prearranged loan terms, then great. If not, get your auto loan elsewhere.
A word of caution. Keep it to business. It's exciting to buy a new car and it's also easy to get carried away and buy more vehicle than you need or previously wanted just because it looks so good or has so many features that the dealer will try to convince you that you can't live without. Having predetermined what car you want and the price you are willing to pay will keep you safe in these negotiations but only if you stick to your guns and don't give in to being upsold.
Using these strategies keeps you in control of the negotiation process and keeps you informed all along the way so that you can be confident that the vehicle and the auto loan you purchase is indeed the deal that you wanted.
About The Author
Duane Lipham is a senior editor for http://www.loans.dlbws.com which provides free information and resources for auto, personal, mortgage, home equity, and refinance loans.
Sunday, July 6, 2008
8 Tips For College Students Wanting To Apply For A Credit Card
by: Mario Churchill
High school life is over. You’ve moved away from home and you’re starting a brand new chapter in your life with college. Independence feels great, but it’s sure to feel greater if you’ve got your own credit card, don’t you think?
8 Tips for College Students Wanting to Apply for a Credit Card
Here’s what you can do to make the credit card application process as hassle-free as possible.
Tip #1 Prepare proof of identification. Have your photos ready as well as all your valid IDs. Credit card companies will always have to verify that you are indeed who you say you are before you can proceed any further. IDs where your age is stated are also preferred because you have to prove you’re at least 18 years old as well. If you have any bills under your name, take them with you as well because they can serve as proof of residence.
Tip #2 Prepare proof of schooling. Credit card companies generally prefer to issue credit cards to students who belong to accredited colleges and universities. If you belong to such a school then you’re in luck. If not, you can compensate it by showing your previous records – if they’re excellent, that is. Just like when you’re applying for a driver’s license, credit card issuers also take academic and extra-curricular excellence as a sign of maturity and trustworthiness in your part.
Tip #3 Prepare proof of financial assets. Student credit cards tend to charge higher rates than usual, but you might be qualified for lower rates if you’re already working or you have money and a bank account in your name. Either way, make sure you can submit documentary proof of your work or assets.
Tip #4 Speaking of interest rates, the first thing you should look for in a credit card is the lowest possible interest rates. This might mean not being able to enjoy a reward-based credit card, but at your age, you might not yet afford the higher rates charged by credit cards offering reward points. If you see a 0% APR credit card, make sure to check how long the offer would last and what the standard APR is afterwards.
Tip #5 A number of credit cards allows you to apply even without a cosigner, but some of them tend to have stricter application requirements. If you don’t want to go through the trouble of submitting additional requirements, simply ask your parent or legal guardian to act as your guarantor when you apply for a credit card.
Tip #6 Always look for a credit card that allows you to manage your account online. This will allow you to check your account balance regularly and know when and how much you have to pay for your credit card every month.
Tip #7 There are a few additional perks that you might deem necessary. If you are fond of shopping online, look for a credit card that offers you fraud liability guarantee at no extra cost. Other credit cards offer you “thank you” points for being a prompt payer.
Tip #8 Now that you know what you need from a credit card, find one that matches your preferences and then submit your application. Remember to be courteous and answer all their questions honestly. You’re sure to have your application approved in no time. Have fun with responsible swiping!
About The Author
Mario Churchill is a freelance author and has written over 200 articles on various subjects. For more information checkout http://www.i-want-a-credit-card.com and http://www.creditcardcorridor.info.
High school life is over. You’ve moved away from home and you’re starting a brand new chapter in your life with college. Independence feels great, but it’s sure to feel greater if you’ve got your own credit card, don’t you think?
8 Tips for College Students Wanting to Apply for a Credit Card
Here’s what you can do to make the credit card application process as hassle-free as possible.
Tip #1 Prepare proof of identification. Have your photos ready as well as all your valid IDs. Credit card companies will always have to verify that you are indeed who you say you are before you can proceed any further. IDs where your age is stated are also preferred because you have to prove you’re at least 18 years old as well. If you have any bills under your name, take them with you as well because they can serve as proof of residence.
Tip #2 Prepare proof of schooling. Credit card companies generally prefer to issue credit cards to students who belong to accredited colleges and universities. If you belong to such a school then you’re in luck. If not, you can compensate it by showing your previous records – if they’re excellent, that is. Just like when you’re applying for a driver’s license, credit card issuers also take academic and extra-curricular excellence as a sign of maturity and trustworthiness in your part.
Tip #3 Prepare proof of financial assets. Student credit cards tend to charge higher rates than usual, but you might be qualified for lower rates if you’re already working or you have money and a bank account in your name. Either way, make sure you can submit documentary proof of your work or assets.
Tip #4 Speaking of interest rates, the first thing you should look for in a credit card is the lowest possible interest rates. This might mean not being able to enjoy a reward-based credit card, but at your age, you might not yet afford the higher rates charged by credit cards offering reward points. If you see a 0% APR credit card, make sure to check how long the offer would last and what the standard APR is afterwards.
Tip #5 A number of credit cards allows you to apply even without a cosigner, but some of them tend to have stricter application requirements. If you don’t want to go through the trouble of submitting additional requirements, simply ask your parent or legal guardian to act as your guarantor when you apply for a credit card.
Tip #6 Always look for a credit card that allows you to manage your account online. This will allow you to check your account balance regularly and know when and how much you have to pay for your credit card every month.
Tip #7 There are a few additional perks that you might deem necessary. If you are fond of shopping online, look for a credit card that offers you fraud liability guarantee at no extra cost. Other credit cards offer you “thank you” points for being a prompt payer.
Tip #8 Now that you know what you need from a credit card, find one that matches your preferences and then submit your application. Remember to be courteous and answer all their questions honestly. You’re sure to have your application approved in no time. Have fun with responsible swiping!
About The Author
Mario Churchill is a freelance author and has written over 200 articles on various subjects. For more information checkout http://www.i-want-a-credit-card.com and http://www.creditcardcorridor.info.
5 Tips When Filling out Instant Approval Credit Card Applications
by: Joshua Shapiro
You get bombarded with them on a daily basis. They come in your mail by the dozens per month. When you go shopping at your favorite department store, they offer you one so you can 10 percent off your purchase. Instant approval credit cards—do you really need them? Are they such a great idea? Anything that seems that easy to get can’t all be silver lining. There must be some dark clouds in there too.
Instant approval, though, can be a extremely convenient way to build up some credit for yourself, and credit is, as every expert will tell you, what you need to build if one day you hope to buy a car, own a house, save for your kid’s college education, and so on and so on until you retire happy and rich. But there are some tips you can follow when applying for instant approval credit cards to help you avoid the pitfalls of ruining your credit, or just not getting the credit card you hoped for.
1. Don’t Get Too Carried Away
The first tip, and possibly the best one of the bunch, is not to go too crazy with your applications. Pick one card to start with, and see how that application process goes. When you start taking offers from every credit card company that sends you something in the mail, you run the risk of damaging your credit. That’s because other credit agencies will begin to see you as desperate, the more credit cards you apply for, and get rejected from.
2. If at First You Don’ Succeed…
Next, if the standard credit cards don’t accept your supposedly instant approved application, then try your hand at a gas credit card or department store card. These are generally easier to get for beginners in the world of credit. They also tend to make for greater "trainer" cards, meaning you can learn how to make monthly payments on time, and build your credit.
3. Get Bill Savvy
Speaking of bills, know how to pay for them. Keeping some carryover debt on a department store card is a good idea. It shows credit agencies that you can handle an outstanding balance. But don’t build up debt on everyday items, such as gasoline, food, or entertainment. That doesn’t look good, and neither does a balance that grows and grows every month.
4. Don’t be Late on Your Payments
Want additional help with instant approval? Here’s a big hint—don’t be late on any payments that you already have, whether they be credit cards, gas bills, cell phone service, etc. Any slip-up like that can ruin any good reputation you may have with the credit agencies in an instant.
5. Take Your Time to Find the Right Deal
And finally, take your time when taking advantage of instant approval credit. Once you try the waters on one card, wait another few months, even a year, before applying for your next. Or better yet, if you don’t need it, don’t apply at all.
About The Author
Joshua Shapiro recommends Find Credit Cards to find instant approval credit card applications. See http://www.findcreditcards.org/type/instant-approval.php for more information.
joshuashapi@gmail.com
You get bombarded with them on a daily basis. They come in your mail by the dozens per month. When you go shopping at your favorite department store, they offer you one so you can 10 percent off your purchase. Instant approval credit cards—do you really need them? Are they such a great idea? Anything that seems that easy to get can’t all be silver lining. There must be some dark clouds in there too.
Instant approval, though, can be a extremely convenient way to build up some credit for yourself, and credit is, as every expert will tell you, what you need to build if one day you hope to buy a car, own a house, save for your kid’s college education, and so on and so on until you retire happy and rich. But there are some tips you can follow when applying for instant approval credit cards to help you avoid the pitfalls of ruining your credit, or just not getting the credit card you hoped for.
1. Don’t Get Too Carried Away
The first tip, and possibly the best one of the bunch, is not to go too crazy with your applications. Pick one card to start with, and see how that application process goes. When you start taking offers from every credit card company that sends you something in the mail, you run the risk of damaging your credit. That’s because other credit agencies will begin to see you as desperate, the more credit cards you apply for, and get rejected from.
2. If at First You Don’ Succeed…
Next, if the standard credit cards don’t accept your supposedly instant approved application, then try your hand at a gas credit card or department store card. These are generally easier to get for beginners in the world of credit. They also tend to make for greater "trainer" cards, meaning you can learn how to make monthly payments on time, and build your credit.
3. Get Bill Savvy
Speaking of bills, know how to pay for them. Keeping some carryover debt on a department store card is a good idea. It shows credit agencies that you can handle an outstanding balance. But don’t build up debt on everyday items, such as gasoline, food, or entertainment. That doesn’t look good, and neither does a balance that grows and grows every month.
4. Don’t be Late on Your Payments
Want additional help with instant approval? Here’s a big hint—don’t be late on any payments that you already have, whether they be credit cards, gas bills, cell phone service, etc. Any slip-up like that can ruin any good reputation you may have with the credit agencies in an instant.
5. Take Your Time to Find the Right Deal
And finally, take your time when taking advantage of instant approval credit. Once you try the waters on one card, wait another few months, even a year, before applying for your next. Or better yet, if you don’t need it, don’t apply at all.
About The Author
Joshua Shapiro recommends Find Credit Cards to find instant approval credit card applications. See http://www.findcreditcards.org/type/instant-approval.php for more information.
joshuashapi@gmail.com
5 tips to help you avoid damaging your credit
by: David Lynes - Loans4
Having a good credit rating in this day and age is becoming an increasingly rare thing, and if you are one of the lucky ones that does not have damaged credit then this is the way you need to keep it. Maintaining good credit offers many benefits, not least of which is being able to get some really great deals on all sorts of finance in the future, whether you are looking for a car loan, mortgage, credit card, personal loan, or any other type of finance.
Damaging your credit can be very easily done, yet rebuilding it can be notoriously difficult. This is why it is so important to try and keep your credit looking as good as possible. Below you will find five effective tips to try and help you to maintain good credit:
1. Make sure you keep up with repayments on your debts. Whether you have credit cards, loans, car finance, or any other type of debt it is vital that you make regular, timely repayments for at least the amount requested. This is particularly important with mortgage repayments, as otherwise you could end up losing your home as well as your good credit.
2. Pay your bills on time. In addition to making debt repayments on time you also need to remember that making bill payments on time is important when it comes to maintaining good credit. This means everything from your council tax to your utilities. When you make late bill payments or miss payments this is logged on your report, and this can quickly damage your credit rating.
3. Don't apply for finance right away if you are turned down. If at any point you apply for finance and you are turned down make sure you find out why you have been refused before you apply for finance again, as mass applications could end up damaging your credit.
4. Check your credit. It is important that you check your credit report on a fairly regular basis, as this can help to flag up any dangers that could result in your credit rating getting damaged. You should order and check your credit report at least once a year to keep an eye on your finances and avoid ending up with tarnished credit.
5. Don't let others take finance out in your name. It may seem tempting to take out a credit card or loan on behalf of a loved one or a friend, but there is no guarantee that the money will be repaid, and it is your credit rating that will suffer the effects of missed repayments.
About The Author
David Lynes
Loans4 provide homeowner loan solutions for homeowners. Please visit http://www.loans4.co.uk for the latest finance related news.
Having a good credit rating in this day and age is becoming an increasingly rare thing, and if you are one of the lucky ones that does not have damaged credit then this is the way you need to keep it. Maintaining good credit offers many benefits, not least of which is being able to get some really great deals on all sorts of finance in the future, whether you are looking for a car loan, mortgage, credit card, personal loan, or any other type of finance.
Damaging your credit can be very easily done, yet rebuilding it can be notoriously difficult. This is why it is so important to try and keep your credit looking as good as possible. Below you will find five effective tips to try and help you to maintain good credit:
1. Make sure you keep up with repayments on your debts. Whether you have credit cards, loans, car finance, or any other type of debt it is vital that you make regular, timely repayments for at least the amount requested. This is particularly important with mortgage repayments, as otherwise you could end up losing your home as well as your good credit.
2. Pay your bills on time. In addition to making debt repayments on time you also need to remember that making bill payments on time is important when it comes to maintaining good credit. This means everything from your council tax to your utilities. When you make late bill payments or miss payments this is logged on your report, and this can quickly damage your credit rating.
3. Don't apply for finance right away if you are turned down. If at any point you apply for finance and you are turned down make sure you find out why you have been refused before you apply for finance again, as mass applications could end up damaging your credit.
4. Check your credit. It is important that you check your credit report on a fairly regular basis, as this can help to flag up any dangers that could result in your credit rating getting damaged. You should order and check your credit report at least once a year to keep an eye on your finances and avoid ending up with tarnished credit.
5. Don't let others take finance out in your name. It may seem tempting to take out a credit card or loan on behalf of a loved one or a friend, but there is no guarantee that the money will be repaid, and it is your credit rating that will suffer the effects of missed repayments.
About The Author
David Lynes
Loans4 provide homeowner loan solutions for homeowners. Please visit http://www.loans4.co.uk for the latest finance related news.
5 Tips to Finding the Best Bad Credit Credit Card
by: Joshua Shapiro
Bad credit can sometimes feel like the end of the world, but it doesn’t have to be. There is now a wealth of credit options, such as credit cards, out there for people with bad credit. Sure, you may not have all the options when it comes to terms and percentage rates, but at least you will have a way to build your credit back up to ultimate personal freedom.
1. Visit Your Local Credit Union
One of the best things you can tell someone with damaged, or bad, credit is to visit their local credit union. These bank-like institutions may be more than likely to extend you a card if you belong to a particular community, civic organization, union, or other social group.
2. Explore Your Alternatives
Another good option is to explore alternative credit card companies, such as gas company cards, department store cards, and newer card companies. These will help you not only organize your finances. They will also help you slowly build up the credit you need to get a card from one of the big credit companies.
3. Get a Buddy to Co-Sign
If you still have no luck securing a card, don’t give up yet. Try to see if you could have a friend or relative be a co-signer on a card. Basically, they’re agreeing to shell over the cash you owe if you default on your payments, an agreement that tends to make creditors feel a bit more comfortable. Hopefully, of course, it won’t come to that. Also, check out secured credit cards. With these newer type cards, you set up your own credit limit by putting that exact dollar amount in a savings account. Basically, it’s like betting on your own good debt behavior.
4. Shop Around
There is a fast and furious market out there for your business. Credit cards like anything else are all about getting new customers and making money, so it stands to reason that there will be a lot of selection out there to choose from. That means, put bluntly, don’t jump on the first "yes" offer. Shop around.
5. Reality Check
Then again, you will have all of these card offers—but don’t expect any one to blow you away. Compared to regular credit cards, bad credit credit cards won’t have the best rates, APRs, penalties, annual fees, or credit limits. For instance, your credit limit may only begin at $500, and late fees may blow your socks off.
About The Author
Joshua Shapiro recommends Find Credit Cards to find the best bad credit card for you. See http://www.findcreditcards.org/type/bad-credit.php for more information.
joshuashapi@gmail.com
Bad credit can sometimes feel like the end of the world, but it doesn’t have to be. There is now a wealth of credit options, such as credit cards, out there for people with bad credit. Sure, you may not have all the options when it comes to terms and percentage rates, but at least you will have a way to build your credit back up to ultimate personal freedom.
1. Visit Your Local Credit Union
One of the best things you can tell someone with damaged, or bad, credit is to visit their local credit union. These bank-like institutions may be more than likely to extend you a card if you belong to a particular community, civic organization, union, or other social group.
2. Explore Your Alternatives
Another good option is to explore alternative credit card companies, such as gas company cards, department store cards, and newer card companies. These will help you not only organize your finances. They will also help you slowly build up the credit you need to get a card from one of the big credit companies.
3. Get a Buddy to Co-Sign
If you still have no luck securing a card, don’t give up yet. Try to see if you could have a friend or relative be a co-signer on a card. Basically, they’re agreeing to shell over the cash you owe if you default on your payments, an agreement that tends to make creditors feel a bit more comfortable. Hopefully, of course, it won’t come to that. Also, check out secured credit cards. With these newer type cards, you set up your own credit limit by putting that exact dollar amount in a savings account. Basically, it’s like betting on your own good debt behavior.
4. Shop Around
There is a fast and furious market out there for your business. Credit cards like anything else are all about getting new customers and making money, so it stands to reason that there will be a lot of selection out there to choose from. That means, put bluntly, don’t jump on the first "yes" offer. Shop around.
5. Reality Check
Then again, you will have all of these card offers—but don’t expect any one to blow you away. Compared to regular credit cards, bad credit credit cards won’t have the best rates, APRs, penalties, annual fees, or credit limits. For instance, your credit limit may only begin at $500, and late fees may blow your socks off.
About The Author
Joshua Shapiro recommends Find Credit Cards to find the best bad credit card for you. See http://www.findcreditcards.org/type/bad-credit.php for more information.
joshuashapi@gmail.com
5 Tips for Savvy Use of Your Home Equity Line of Credit
by: Tim Paul
Tapping your home's equity to pay college expenses, consolidate credit card debt or even to buy a new car or boat is common place. Many economists attribute the additional buying power afforded consumers through home equity debt as a primary reason the nation's economy has been able to emerge from the recent recession. Yet, aside from simply allowing consumers to spendmore, the flexibility and efficiency of a home equity line of credit (HELOC) can provide the financially savvy person with the means to savemoney, make money or simply take advantageof opportune situations he or she might otherwise miss out on. Here are five tips to show you how:
Tip 1: Take Advantage of Higher Insurance Deductibles! You probably know that raising deductibles on auto and homeowners insurance policies can mean big savings on insurance premiums. If you increase the deductible on a homeowner's policy from $500 to $1,000, you'll cut your premium by as much as 25%! Yet many people don't do this because they fear they may not have the necessary cash available in the event of a loss. With low-interest cash readily available through a home equity line of credit you'll have the security and confidence you need to raise your deductibles and reap the savings!
Tip 2: Lock In Big Savings! Credit card companies (e.g. the GM card) frequently have shopping programs with names like "Main Street Savings" on a 30-day free trial basis. These programs allow you to buy discounted gift cards (20% discount) for major national retailers like Target, Sears, and Home Depot. The flexibility afforded by a home equity line of credit can allow you to purchase (during the free trial period) a large amount of discounted gift cards for major retailers you frequent. Then use these cards instead of cash or credit when you purchase everyday items (The cash you would have spent can be used to pay down the HELOC). Although you pay low interest on the home equity credit line, you receive a front-end discount of 20% on everything bought. When combined with store coupons and sales, you can realize total savings of 70% or more! In short, a HELOC provides the low interest cash availability to take advantage of bargains like this that you might otherwise have to pass on.
Tip 3: Take Advantage of 0% Balance Transfer Offers! We've all seen no-fee credit card offering "0% APR" on balance transfers for 6, 12, and even 18 months. If you have a balance on your HELOC, you may be able to take advantage of these offers. Here's an example of how: last year I accepted such an offer and promptly transferred $10,000 from my home equity credit line balance (which had a 4.25% rate). Then I cut up the card! For the next eleven months, I paid the monthly minimum credit card payment (3% of the outstanding balance) by writing a check from my home equity line of credit. In the twelfth month, prior to the expiration of the 0% offer, I paid off the remaining balance with another home equity credit line check. During the 12 months, I also made sure to continue my regular payment towards the HELOC at the same level, meaning that more of each went to pay down principal and less went to interest. Net result: interest savings of over $350.00, lower principal balance on my HELOC, and a positive addition to my credit repayment history!
Tip 4: First Pay With a Rewards Credit Card! If you're contemplating using your HELOC for a major purchase, you should consider whether or not the merchant your dealing with accepts credit cards. Why? Because it makes a great deal of sense to pay first with a rewards credit card and then pay off the card with your HELOC check. On a recent $14,000 bathroom remodel, I was able to charge plumbing services, cabinets, and almost everything else to my Fidelity/MBNA 529 College Rewards Mastercard. This card pays you back by putting 2% of everything charged into a 529 college savings plan. Result: $280.00 in college savings that would have been missed if I paid the bills directly with home equity credit line checks! Whatever rewards credit card you favor, it's sensible to pay first with the card whenever possible. Keep in mind, though, you must promptly pay off the balance and not incur finance charges.
Tip 5: Replace Your 1st Mortgage with a HELOC! According to Money Magazine, if you have more equity than debt and plan to stay in your home for 3 years or less, you should consider replacing your first mortgage with a home equity line of credit. HELOCs are currently available around the country at rates of 4% or lower. Even if rates increase a full percentage point each year, they'll still be low when you pay off the loan. Best of all, there are no closing costs with most HELOCS so you won't have to worry about recouping them through interest savings as you do with a traditional mortgage refinance. A savvy person - using tip 3 in conjunction with tip 5 - might even move a portion of his mortgage to a 0% credit card thanks to the flexibility of a home equity line of credit.
About The Author
Tim Paul has more than 25 years executive financial management experience. His recent area of focus has been to develop and catalog proven strategies for financially savvy persons to get the most from their home equity credit lines. His website is www.sagetips.com.
mail@sagetips.com
Tapping your home's equity to pay college expenses, consolidate credit card debt or even to buy a new car or boat is common place. Many economists attribute the additional buying power afforded consumers through home equity debt as a primary reason the nation's economy has been able to emerge from the recent recession. Yet, aside from simply allowing consumers to spendmore, the flexibility and efficiency of a home equity line of credit (HELOC) can provide the financially savvy person with the means to savemoney, make money or simply take advantageof opportune situations he or she might otherwise miss out on. Here are five tips to show you how:
Tip 1: Take Advantage of Higher Insurance Deductibles! You probably know that raising deductibles on auto and homeowners insurance policies can mean big savings on insurance premiums. If you increase the deductible on a homeowner's policy from $500 to $1,000, you'll cut your premium by as much as 25%! Yet many people don't do this because they fear they may not have the necessary cash available in the event of a loss. With low-interest cash readily available through a home equity line of credit you'll have the security and confidence you need to raise your deductibles and reap the savings!
Tip 2: Lock In Big Savings! Credit card companies (e.g. the GM card) frequently have shopping programs with names like "Main Street Savings" on a 30-day free trial basis. These programs allow you to buy discounted gift cards (20% discount) for major national retailers like Target, Sears, and Home Depot. The flexibility afforded by a home equity line of credit can allow you to purchase (during the free trial period) a large amount of discounted gift cards for major retailers you frequent. Then use these cards instead of cash or credit when you purchase everyday items (The cash you would have spent can be used to pay down the HELOC). Although you pay low interest on the home equity credit line, you receive a front-end discount of 20% on everything bought. When combined with store coupons and sales, you can realize total savings of 70% or more! In short, a HELOC provides the low interest cash availability to take advantage of bargains like this that you might otherwise have to pass on.
Tip 3: Take Advantage of 0% Balance Transfer Offers! We've all seen no-fee credit card offering "0% APR" on balance transfers for 6, 12, and even 18 months. If you have a balance on your HELOC, you may be able to take advantage of these offers. Here's an example of how: last year I accepted such an offer and promptly transferred $10,000 from my home equity credit line balance (which had a 4.25% rate). Then I cut up the card! For the next eleven months, I paid the monthly minimum credit card payment (3% of the outstanding balance) by writing a check from my home equity line of credit. In the twelfth month, prior to the expiration of the 0% offer, I paid off the remaining balance with another home equity credit line check. During the 12 months, I also made sure to continue my regular payment towards the HELOC at the same level, meaning that more of each went to pay down principal and less went to interest. Net result: interest savings of over $350.00, lower principal balance on my HELOC, and a positive addition to my credit repayment history!
Tip 4: First Pay With a Rewards Credit Card! If you're contemplating using your HELOC for a major purchase, you should consider whether or not the merchant your dealing with accepts credit cards. Why? Because it makes a great deal of sense to pay first with a rewards credit card and then pay off the card with your HELOC check. On a recent $14,000 bathroom remodel, I was able to charge plumbing services, cabinets, and almost everything else to my Fidelity/MBNA 529 College Rewards Mastercard. This card pays you back by putting 2% of everything charged into a 529 college savings plan. Result: $280.00 in college savings that would have been missed if I paid the bills directly with home equity credit line checks! Whatever rewards credit card you favor, it's sensible to pay first with the card whenever possible. Keep in mind, though, you must promptly pay off the balance and not incur finance charges.
Tip 5: Replace Your 1st Mortgage with a HELOC! According to Money Magazine, if you have more equity than debt and plan to stay in your home for 3 years or less, you should consider replacing your first mortgage with a home equity line of credit. HELOCs are currently available around the country at rates of 4% or lower. Even if rates increase a full percentage point each year, they'll still be low when you pay off the loan. Best of all, there are no closing costs with most HELOCS so you won't have to worry about recouping them through interest savings as you do with a traditional mortgage refinance. A savvy person - using tip 3 in conjunction with tip 5 - might even move a portion of his mortgage to a 0% credit card thanks to the flexibility of a home equity line of credit.
About The Author
Tim Paul has more than 25 years executive financial management experience. His recent area of focus has been to develop and catalog proven strategies for financially savvy persons to get the most from their home equity credit lines. His website is www.sagetips.com.
mail@sagetips.com
5 Tips for Finding the Best Cash Back Credit Card
by: Beth Derkowitz
Cash back cards can be great if you use your credit card for a lot of purchases and pay off the balance quickly. Using the card a lot means that you earn more cash back, and paying it off right away means that you don't lose what you earn to interest charges on the balance. Most cash back rates are around 1% of the total purchases, before finance and interest charges. Here are five tips to help you choose the best cash back credit card for you:
1. Consider your credit needs and habits. How much do you use your credit card? Do you use it more on certain vendors or types of purchases? Do you tend to pay of the card each month, or carry a balance? Are you looking for a high credit limit? What about extra services and perks?
2. Consider which card features are most important to you. In addition to cash back, are you looking for a low APR? Is it important to have no annual fee? Are you looking for a card that also offers extra services? Considering how important specific features are to you can help in narrowing down your choices.
3. Compare several cards to find the best one. There are all sorts of combinations of terms and features available from different companies, so it's a good idea to compare several cards that meet your most important criteria.
4. Don't lose sight of what's important to you. If the most important feature for you is getting the most cash back, avoid getting sidetracked by special deals that offer less actual cash. Special features are great - as long as you're also getting what matters most to you!
5. Check several sources of information. The Federal Reserve publishes a survey of credit card terms every six months, and there are lots of websites where you can compare offers. Check a variety of sites to view as many options as possible, and then narrow your choices down to the ones that really suit you.
About The Author
Beth Derkowitz
To find and apply for a cash back credit card, Beth Derkowitz recommends Find Credit Cards. Please see http://www.findcreditcards.org/type/cash-back.php for more information.
Cash back cards can be great if you use your credit card for a lot of purchases and pay off the balance quickly. Using the card a lot means that you earn more cash back, and paying it off right away means that you don't lose what you earn to interest charges on the balance. Most cash back rates are around 1% of the total purchases, before finance and interest charges. Here are five tips to help you choose the best cash back credit card for you:
1. Consider your credit needs and habits. How much do you use your credit card? Do you use it more on certain vendors or types of purchases? Do you tend to pay of the card each month, or carry a balance? Are you looking for a high credit limit? What about extra services and perks?
2. Consider which card features are most important to you. In addition to cash back, are you looking for a low APR? Is it important to have no annual fee? Are you looking for a card that also offers extra services? Considering how important specific features are to you can help in narrowing down your choices.
3. Compare several cards to find the best one. There are all sorts of combinations of terms and features available from different companies, so it's a good idea to compare several cards that meet your most important criteria.
4. Don't lose sight of what's important to you. If the most important feature for you is getting the most cash back, avoid getting sidetracked by special deals that offer less actual cash. Special features are great - as long as you're also getting what matters most to you!
5. Check several sources of information. The Federal Reserve publishes a survey of credit card terms every six months, and there are lots of websites where you can compare offers. Check a variety of sites to view as many options as possible, and then narrow your choices down to the ones that really suit you.
About The Author
Beth Derkowitz
To find and apply for a cash back credit card, Beth Derkowitz recommends Find Credit Cards. Please see http://www.findcreditcards.org/type/cash-back.php for more information.
5 Tips for Finding the Best Business Credit Card
by: Beth Derkowitz
Choosing a credit card for your business can be even more complicated than choosing a card for personal use. Interest rates, grace periods, rewards, credit limits, additional services and annual fees are all important to consider in order to save money and to choose a card that also serves your needs well.
1. Consider your company's spending and income trends. Do you need money to buy project supplies that are paid for by your clients after a few weeks or months? Do you need to cover high price expenses like entertaining clients that require the convenience of a card but can be paid off within the next billing period? Do you use a credit card only on rare but necessary occasions? Analyzing your business needs with these questions and more can help you to make sure the terms of your new card mesh well with how you do business.
2. Consider the card features that are most important to your company. Is no annual fee or a high credit limit more important? Do your employees travel enough for an airline card to be worthwhile? Narrow your selection by analyzing only the cards that meet your most important criteria. Then you can use the less essential preferences to choose between them.
3. Compare several cards to find the best fit for your company. It can be tempting to just pick a card that seems ok and be done with the search. By carefully comparing several options, you can potentially save hundreds of dollars.
4. Don't lose sight of what's important. Once you determine which features serve your company best, avoid getting distracted by special deals or extra features from less satisfactory cards.
5. Check several sources of information. The Federal Reserve publishes a survey of credit card terms every six months, and there are several websites on the Internet that will let you compare credit card offers. You can even check with businesses in similar industries to find out what cards they recommend.
About The Author
Beth Derkowitz
To find and apply for a business credit card, Beth Derkowitz recommends Find Credit Cards. Please see http://www.findcreditcards.org/type/business.php for more information.
Choosing a credit card for your business can be even more complicated than choosing a card for personal use. Interest rates, grace periods, rewards, credit limits, additional services and annual fees are all important to consider in order to save money and to choose a card that also serves your needs well.
1. Consider your company's spending and income trends. Do you need money to buy project supplies that are paid for by your clients after a few weeks or months? Do you need to cover high price expenses like entertaining clients that require the convenience of a card but can be paid off within the next billing period? Do you use a credit card only on rare but necessary occasions? Analyzing your business needs with these questions and more can help you to make sure the terms of your new card mesh well with how you do business.
2. Consider the card features that are most important to your company. Is no annual fee or a high credit limit more important? Do your employees travel enough for an airline card to be worthwhile? Narrow your selection by analyzing only the cards that meet your most important criteria. Then you can use the less essential preferences to choose between them.
3. Compare several cards to find the best fit for your company. It can be tempting to just pick a card that seems ok and be done with the search. By carefully comparing several options, you can potentially save hundreds of dollars.
4. Don't lose sight of what's important. Once you determine which features serve your company best, avoid getting distracted by special deals or extra features from less satisfactory cards.
5. Check several sources of information. The Federal Reserve publishes a survey of credit card terms every six months, and there are several websites on the Internet that will let you compare credit card offers. You can even check with businesses in similar industries to find out what cards they recommend.
About The Author
Beth Derkowitz
To find and apply for a business credit card, Beth Derkowitz recommends Find Credit Cards. Please see http://www.findcreditcards.org/type/business.php for more information.
5 Tips for Finding the Best BankFirst Credit Card
by: Beth Derkowitz
BankFirst focuses on the prepaid credit card market, and has a reputation for integrity and solid financial strength. They offer a variety of options, and have cards specifically designed to help cardholders build or rebuild their credit ratings. Here are five tips to help you choose the best BankFirst credit card for you:
1. Know your credit card goals and habits. Give yourself an honest assessment of your spending and payment tendencies before choosing a card to apply for. Are you likely to use the card frequently or just for emergencies? Do you have a plan for raising your credit rating or do you just need a card for things like online purchases and travel reservations? What fees and payment terms fit with your finances?
2. Consider what kind of card will serve your goals best. Once you know what your goals and needs are, you can look at the options available and figure out how each option fits with what you want to accomplish. Then you can look at only the cards that actually serve your needs.
3. Consider which features are most important to you. Many of BankFirst's prepaid credit cards offer the same sort of extra features as regular credit cards, such as cash back or other rewards on your spending. These features can be very attractive, but make sure you are looking at the cards that fit your most important requirements first.
4. Compare all of your options carefully. It can be tempting to just apply for the first credit card offer that catches your eye, but there's no way of knowing if it's a good offer until you compare it to others. By carefully evaluating all of your options you can often save money and improve your credit card experience.
5. Read the fine print. Always be careful to read and understand all of the terms that apply to a credit card offer before applying. Consider the fees, payment terms, and extras will actually work and how they will affect the way you use the card.
About The Author
Beth Derkowitz
To find and apply for a BankFirst credit card, Beth Derkowitz recommends Find Credit Cards. Please see http://www.findcreditcards.org/issuer/bankfirst.php for more information.
BankFirst focuses on the prepaid credit card market, and has a reputation for integrity and solid financial strength. They offer a variety of options, and have cards specifically designed to help cardholders build or rebuild their credit ratings. Here are five tips to help you choose the best BankFirst credit card for you:
1. Know your credit card goals and habits. Give yourself an honest assessment of your spending and payment tendencies before choosing a card to apply for. Are you likely to use the card frequently or just for emergencies? Do you have a plan for raising your credit rating or do you just need a card for things like online purchases and travel reservations? What fees and payment terms fit with your finances?
2. Consider what kind of card will serve your goals best. Once you know what your goals and needs are, you can look at the options available and figure out how each option fits with what you want to accomplish. Then you can look at only the cards that actually serve your needs.
3. Consider which features are most important to you. Many of BankFirst's prepaid credit cards offer the same sort of extra features as regular credit cards, such as cash back or other rewards on your spending. These features can be very attractive, but make sure you are looking at the cards that fit your most important requirements first.
4. Compare all of your options carefully. It can be tempting to just apply for the first credit card offer that catches your eye, but there's no way of knowing if it's a good offer until you compare it to others. By carefully evaluating all of your options you can often save money and improve your credit card experience.
5. Read the fine print. Always be careful to read and understand all of the terms that apply to a credit card offer before applying. Consider the fees, payment terms, and extras will actually work and how they will affect the way you use the card.
About The Author
Beth Derkowitz
To find and apply for a BankFirst credit card, Beth Derkowitz recommends Find Credit Cards. Please see http://www.findcreditcards.org/issuer/bankfirst.php for more information.
5 Tips for Choosing the Best Cash Back Credit Card
by: Beth Derkowitz
The offers to make money as you spend money are quite enticing to the modern consumer. With a cash back credit card, you can earn percentages that can reap rewards at the end of the year. So to choose the best cash back credit card for you, here are some questions that you will want to ask.
1. What counts toward the cash back?
While it might seem that any purchase or addition to the overall cash back credit card balance would reap rewards, this is not generally the case. Many times, balance transfers and cash advances do not contribute to the percentage back. If you think that you will be using the cash back credit card for those purposes, you’ll want to see if you will be rewarded or not.
2. How much cash back are you receiving?
Of course, if you’re looking for a cash back credit card, you’ll want to choose the one with the highest amount of percentage that you can get back. And the cards vary widely in this respect. Look at several cash back credit card companies to see if one seems particularly high.
3. Can you increase your cash back?
Besides increasing the overall balance and contributing to the cash back, some cash back credit card companies also encourage customers to frequent certain retailers to get a larger cash back amount. If you already go to these establishments, these cash back credit card companies might work out better for you.
4. How can you redeem the cash back?
When you’re using a cash back credit card, you want to be able to get your rewards as frequently as possible. There used to be a time when you had to wait until the end of a twelve month cycle to receive the benefits, but it has changed. Some companies are now allowing customers to redeem their cash back as payments against their balance or to contribute to a charity as frequently as certain amounts are accrued.
5. What are the fees?
As with all credit cards, you’ll want to be sure that the cash back credit card you sign up for doesn’t charge a large fee that actually upsets any rewards that you might be receiving. Try to find a cash back credit card that doesn’t make you pay for your cash back.
With a cash back credit card, you can earn a little money as you spend for things that you already need.
About The Author
Beth Derkowitz recommends Find Credit Cards for finding the best cash back credit card for you. See http://www.findcreditcards.org/type/cash-back.php for more information
bethderkowitz@gmail.com
The offers to make money as you spend money are quite enticing to the modern consumer. With a cash back credit card, you can earn percentages that can reap rewards at the end of the year. So to choose the best cash back credit card for you, here are some questions that you will want to ask.
1. What counts toward the cash back?
While it might seem that any purchase or addition to the overall cash back credit card balance would reap rewards, this is not generally the case. Many times, balance transfers and cash advances do not contribute to the percentage back. If you think that you will be using the cash back credit card for those purposes, you’ll want to see if you will be rewarded or not.
2. How much cash back are you receiving?
Of course, if you’re looking for a cash back credit card, you’ll want to choose the one with the highest amount of percentage that you can get back. And the cards vary widely in this respect. Look at several cash back credit card companies to see if one seems particularly high.
3. Can you increase your cash back?
Besides increasing the overall balance and contributing to the cash back, some cash back credit card companies also encourage customers to frequent certain retailers to get a larger cash back amount. If you already go to these establishments, these cash back credit card companies might work out better for you.
4. How can you redeem the cash back?
When you’re using a cash back credit card, you want to be able to get your rewards as frequently as possible. There used to be a time when you had to wait until the end of a twelve month cycle to receive the benefits, but it has changed. Some companies are now allowing customers to redeem their cash back as payments against their balance or to contribute to a charity as frequently as certain amounts are accrued.
5. What are the fees?
As with all credit cards, you’ll want to be sure that the cash back credit card you sign up for doesn’t charge a large fee that actually upsets any rewards that you might be receiving. Try to find a cash back credit card that doesn’t make you pay for your cash back.
With a cash back credit card, you can earn a little money as you spend for things that you already need.
About The Author
Beth Derkowitz recommends Find Credit Cards for finding the best cash back credit card for you. See http://www.findcreditcards.org/type/cash-back.php for more information
bethderkowitz@gmail.com
5 Tips for Choosing the Best Balance Transfer Credit Card
by: Beth Derkowitz
If you have a number of credit cards and you’d like to consolidate your payments, a balance transfer credit card can be the right decision for your finances. Not only are many balance transfer credit card companies offering lowered or even zero percent interest rates, but you might even be able to finally pay down that debt that you’ve accrued.
1. Determine the amount you want to transfer
While most balance transfer credit card companies are willing to transfer larger balances for those with a good payment history, for those that do not have excellent credit, you might find that only small amounts will be transferred. And while this helps, it might not reap the rewards that you were expecting. Talk with the balance transfer credit card before deciding to sign up for their card to be sure that the amount you want to transfer will be allowed.
2. Find out the restrictions
Most of the time a balance transfer credit card company will allow you to enjoy a low or zero percent interest rate when you follow their rules. This means that you should work to understand their rules before signing up. You might not be able to purchase anything on the card for a certain amount of time, or you might have to purchase something within a certain amount of time.
3. What is your time limit?
While it would be nice if balance transfer credit card companies could give consumers unlimited time to enjoy the lower interest rates, this isn’t the case. Find out how long the introductory balance transfer credit card interest rate is good for—the longer the better.
4. Can you get money back?
Some balance transfer credit card companies also offer you money back for new purchases on their card. While you probably won’t get that cash back on the transfer, you can begin to reap rewards for future use. If you think that you may keep the balance transfer credit card for a while, this is a good thing to investigate.
5. What is the annual fee?
When you’re trying to limit your payments, you’ll want to be sure that the balance transfer credit card doesn’t start off with an annual fee as well. Many balance transfer credit card companies do not make a customer pay a fee initially, but some might charge the customer after the initial time period is over.
A balance transfer credit card can help you reduce your monthly payments and get you on the road to a debt-free life, but only if the card is working for you and not against you.
About The Author
Beth Derkowitz recommends Find Credit Cards for finding the best balance transfer credit card for you. See http://www.findcreditcards.org/type/balance-transfer.php for more information.
bethderkowitz@gmail.com
If you have a number of credit cards and you’d like to consolidate your payments, a balance transfer credit card can be the right decision for your finances. Not only are many balance transfer credit card companies offering lowered or even zero percent interest rates, but you might even be able to finally pay down that debt that you’ve accrued.
1. Determine the amount you want to transfer
While most balance transfer credit card companies are willing to transfer larger balances for those with a good payment history, for those that do not have excellent credit, you might find that only small amounts will be transferred. And while this helps, it might not reap the rewards that you were expecting. Talk with the balance transfer credit card before deciding to sign up for their card to be sure that the amount you want to transfer will be allowed.
2. Find out the restrictions
Most of the time a balance transfer credit card company will allow you to enjoy a low or zero percent interest rate when you follow their rules. This means that you should work to understand their rules before signing up. You might not be able to purchase anything on the card for a certain amount of time, or you might have to purchase something within a certain amount of time.
3. What is your time limit?
While it would be nice if balance transfer credit card companies could give consumers unlimited time to enjoy the lower interest rates, this isn’t the case. Find out how long the introductory balance transfer credit card interest rate is good for—the longer the better.
4. Can you get money back?
Some balance transfer credit card companies also offer you money back for new purchases on their card. While you probably won’t get that cash back on the transfer, you can begin to reap rewards for future use. If you think that you may keep the balance transfer credit card for a while, this is a good thing to investigate.
5. What is the annual fee?
When you’re trying to limit your payments, you’ll want to be sure that the balance transfer credit card doesn’t start off with an annual fee as well. Many balance transfer credit card companies do not make a customer pay a fee initially, but some might charge the customer after the initial time period is over.
A balance transfer credit card can help you reduce your monthly payments and get you on the road to a debt-free life, but only if the card is working for you and not against you.
About The Author
Beth Derkowitz recommends Find Credit Cards for finding the best balance transfer credit card for you. See http://www.findcreditcards.org/type/balance-transfer.php for more information.
bethderkowitz@gmail.com
5 Tips for Choosing the Best Airline Credit Card for You
by: Beth Derkowitz
If you need to fly for your work or for your personal life, an airline credit card can reap great rewards for the way that you travel. With these tips, you’re sure to pick an airline credit card that will work for you.
1. Who’s sponsoring it?
While most retailers accept nearly every credit card today, you will want to be sure that the retailers that you frequent will take the card that you choose. In order to increase the levels of frequent flyer miles that you have, you need to make purchases, so you need to be able to make these purchases without trouble.
2. Can you do balance transfers?
In many cases, an airline credit card company will even allow you to do a balance transfer at a lowered interest rate. Though this might sound like shifting balances, it can help to increase the frequent flyer miles on the card. Check the card to see if you can consolidate your debts and get frequent flyer miles at the same time.
3. What are the restrictions?
When you’re looking for a new airline credit card, you want to find out what kinds of blackout dates there are for redeeming your frequent flyer miles. If the policy restricts times when you want to redeem your miles, then you might not be choosing the right airline credit card for you.
4. Are there extras that you can expect?
You will also want to look at the various airline credit card companies to see what kinds of travel extras they offer. Many cards will give travelers discounts on car rentals and offer travel insurance on purchases made with the card. You might also find that you can get emergency cash from the airline credit card when you’re traveling or roadside assistance should your vehicle encounter an accident or pothole.
5. And what are the fees?
The main concern of many potential airline credit cardholders is that the annual fee that they pay is not relative to the rewards that they can expect. In order to be certain that you are getting a airline credit card that works with you, check to see what the annual fee is for a number of cards and then narrow the choices into moderate fees. When you have this group of airline credit card companies, see what the rewards are and make a decision from there.
An airline credit card can make sure that you get where you want to go, but only If you take the time to research the fine print.
About The Author
Beth Derkowitz recommends Find Credit Cards for finding the best airline credit card for you. See http://www.findcreditcards.org/type/airline.php for more information
bethderkowitz@gmail.com
If you need to fly for your work or for your personal life, an airline credit card can reap great rewards for the way that you travel. With these tips, you’re sure to pick an airline credit card that will work for you.
1. Who’s sponsoring it?
While most retailers accept nearly every credit card today, you will want to be sure that the retailers that you frequent will take the card that you choose. In order to increase the levels of frequent flyer miles that you have, you need to make purchases, so you need to be able to make these purchases without trouble.
2. Can you do balance transfers?
In many cases, an airline credit card company will even allow you to do a balance transfer at a lowered interest rate. Though this might sound like shifting balances, it can help to increase the frequent flyer miles on the card. Check the card to see if you can consolidate your debts and get frequent flyer miles at the same time.
3. What are the restrictions?
When you’re looking for a new airline credit card, you want to find out what kinds of blackout dates there are for redeeming your frequent flyer miles. If the policy restricts times when you want to redeem your miles, then you might not be choosing the right airline credit card for you.
4. Are there extras that you can expect?
You will also want to look at the various airline credit card companies to see what kinds of travel extras they offer. Many cards will give travelers discounts on car rentals and offer travel insurance on purchases made with the card. You might also find that you can get emergency cash from the airline credit card when you’re traveling or roadside assistance should your vehicle encounter an accident or pothole.
5. And what are the fees?
The main concern of many potential airline credit cardholders is that the annual fee that they pay is not relative to the rewards that they can expect. In order to be certain that you are getting a airline credit card that works with you, check to see what the annual fee is for a number of cards and then narrow the choices into moderate fees. When you have this group of airline credit card companies, see what the rewards are and make a decision from there.
An airline credit card can make sure that you get where you want to go, but only If you take the time to research the fine print.
About The Author
Beth Derkowitz recommends Find Credit Cards for finding the best airline credit card for you. See http://www.findcreditcards.org/type/airline.php for more information
bethderkowitz@gmail.com
4 tips to spot fake high yield investments
by: Jack Sinclair
High yield investments are things that produce a yield of more than 2 percent per month. You can find some good mutual funds that produce 30% or higher in any given year, and they would fit the description of a high yield investment.
Unfortunately, mutual funds will never produce these stellar results consistently. Their good performance will cause a flood of money to come knocking on their door, and with a lot more money, it becomes harder to produce big returns.
Online, there are thousands of places that offer high yield investments. As you might expect, the vast majority are scams - simple ponzis set up to look like elaborate operations.
Once you have enough experience with high yield investments, you can usually spot the scams with relative ease, but even the best people still get caught in elaborate scams.
Here are the things professional investors look for when looking into high yield investments:
Fixed returns. If a program guarantees a time-based return (2% per day, for instance), then it is almost certainly a scam. No one has a crystal ball, and in the high yield community, uncertainty is the major force that prevails. So any one skilled at foreign exchange trading or options trading would never predict they would make 2% each and every day.
No contact information. The high yield investments that are real will always let you know who is behind it, and what they do. In the normal investment world, there is a prospectus for each offering, which describes what the venture is about, and how they make money. A real high yield investment would always give you the name and resumé for the principal people behind the operation. If you don't get a name, phone number and address, it is a scam.
No registration. All high yield investments will create profit, and be subject to taxation by some government somewhere in the world. If the persons offering a high yield investment have not bothered to register the venture, then it is most certainly a scam.
No Contract. The high yield investments that promise great things should put things into writing, and have you agree to the terms before they begin to earn you an income. If you find a high yield investment that does not require you to sign a contract, you can be sure they will disappear eventually - along with your money.
The SEC publishes a short description of what to look for, and it is well worth a minute to review it. It is at http://www.sec.gov/investor/pubs/investorfraud.htm
You should be aware that investor fraud is at an all-time high, and if you ever find yourself a victim of financial fraud, there is very little chance you will ever see your money again. Governments around the world are overwhelmed by the scams and victim complaints that pour in daily, so the best you can do is file a report, and be happy knowing you reported it.
About The Author
Jack Sinclair teaches people how to make money 24 hours per day. Become a member and get passive income and residual income systems for free at http://www.templarbond.com
High yield investments are things that produce a yield of more than 2 percent per month. You can find some good mutual funds that produce 30% or higher in any given year, and they would fit the description of a high yield investment.
Unfortunately, mutual funds will never produce these stellar results consistently. Their good performance will cause a flood of money to come knocking on their door, and with a lot more money, it becomes harder to produce big returns.
Online, there are thousands of places that offer high yield investments. As you might expect, the vast majority are scams - simple ponzis set up to look like elaborate operations.
Once you have enough experience with high yield investments, you can usually spot the scams with relative ease, but even the best people still get caught in elaborate scams.
Here are the things professional investors look for when looking into high yield investments:
Fixed returns. If a program guarantees a time-based return (2% per day, for instance), then it is almost certainly a scam. No one has a crystal ball, and in the high yield community, uncertainty is the major force that prevails. So any one skilled at foreign exchange trading or options trading would never predict they would make 2% each and every day.
No contact information. The high yield investments that are real will always let you know who is behind it, and what they do. In the normal investment world, there is a prospectus for each offering, which describes what the venture is about, and how they make money. A real high yield investment would always give you the name and resumé for the principal people behind the operation. If you don't get a name, phone number and address, it is a scam.
No registration. All high yield investments will create profit, and be subject to taxation by some government somewhere in the world. If the persons offering a high yield investment have not bothered to register the venture, then it is most certainly a scam.
No Contract. The high yield investments that promise great things should put things into writing, and have you agree to the terms before they begin to earn you an income. If you find a high yield investment that does not require you to sign a contract, you can be sure they will disappear eventually - along with your money.
The SEC publishes a short description of what to look for, and it is well worth a minute to review it. It is at http://www.sec.gov/investor/pubs/investorfraud.htm
You should be aware that investor fraud is at an all-time high, and if you ever find yourself a victim of financial fraud, there is very little chance you will ever see your money again. Governments around the world are overwhelmed by the scams and victim complaints that pour in daily, so the best you can do is file a report, and be happy knowing you reported it.
About The Author
Jack Sinclair teaches people how to make money 24 hours per day. Become a member and get passive income and residual income systems for free at http://www.templarbond.com
11 Year End Tax Savings Tips
by: Kent Irwin
This time of year, now through the first quarter of next year, you will see articles offering year-end tax planning tips. Tax planning tips can increase income in future years, so be careful. Many tax tips often involve accelerating deductions, deferring income, or last-minute charitable deductions (the first three following tips).
For example you may be compelled to make a large charitable contribution this year by December 31st. However if you could be in a higher tax bracket next year because your income is going up because of a substantial raise or bonus, you would have been better off to make the contribution next year. Some may say this is heartless, but I say just the reverse. If you pay less in taxes because of good planning, your will be better off financially and able to give more in the future.
If you have volatile income, before you use the tax savings tips here and in other articles, you may want to run projections for this year and next. A good accountant will run these calculations for you, but understand that tax law changes from year to year and from one administration to the next can often make predicting tricky.
1. Defer income
If you are able to defer income, such as commissions and bonuses until next year, you might be able to pay lower income taxes this year. However, you must consider what your income and taxes will be next year to be sure that you are not actually increasing your taxes.
2. Accelerating deductions
Accelerating major deductions such as state income taxes, property taxes, and mortgage interest may help anyone, especially during a high-income year. If you don't think your personal income tax bracket will be higher next year, and you're not affected by the alternative minimum tax, you can make state and/or local tax payments before the end of this year so you can take a deduction this year.
3. Charitable Contributions
Consider making chartable deductions before the end of the year to receive a deduction. You must make the contribution by 12/31/2007.
Donate appreciated property such as real estate or stock instead of the proceeds of the sale. You may be able to receive a deduction for the value of the contribution without paying tax on the growth portion resulting from a sale, then a gift. If you intend to transfer appreciated property, begin early since it will take several weeks to make the change.
4. Alternative minimum tax traps
Many people face large AMT bills compared to previous years. Be warned if you have larger than usual medical expenses, non-federal income and real estate taxes, or miscellaneous itemized deductions; or if you have exercised large stock options, to name a few.
Year-end tax planning strategies can backfire under AMT. Be very careful accelerating some deductions and exercising stock options at year end. See a tax professional for information on your specific tax situation.
5. Be careful when investing new money in mutual funds at the end of the year
Call the mutual fund and find out when the distribution date is. You may want to purchase after the distribution date to avoid owing taxes on fund shares that you owned only for a short period of time and had little to no gain.
6. Contribute the maximum to retirement accounts
Contribute the maximum allowable to employer-sponsored defined contribution retirement plans, such as profit sharing, 401(k), 403(b) and 457(b) plans. This not only provides an excellent tax deduction, but it also helps you to plan for your future retirement.
You may want to contribute to an IRA; up to $2,000 is fully deductible if you did not participate in a company-sponsored retirement plan or if your income falls below certain levels.
If you are self-employed, you can contribute more to a pension plan than into an IRA. You have until December 31 to set up the plan.
7. Investment Losses
If your investment portfolio has stock that has depreciated in value and is worth less than when you originally purchased it, you may want to consider selling it. You may be able to use that loss to offset capital gains and ordinary income.
Be careful though; investment decisions should not just be for tax purposes. Make sure that you do your research before selling any investment. Some people react too quickly when investments lose value; others sometimes hold on too long. If you decide to sell and invest in something new, make sure that you examine your portfolio to ensure that you have the right mix of investments to match your investment profile, risk propensity and asset allocation model.
8. Save for College
Consider contributing to your child's college savings into a 529 plan. The contributions are not deductible on your Federal return, but parents may be able to write off contributions up to a certain dollar amount on their state income tax return. Log on to SavingforCollege.com to find out information about your state.
9. Home Improvements
Here is a great deal. How about saving energy and the environment, lower utility bills, increase the value of your home and save on taxes — all at once. Projects for the home's shell (insulation, windows, sealing) and heating and cooling may qualify for a one time tax credit of $500. However you are running out of time, since they must be in place by the end of 2007. So while crawling around your attic looking for ornaments, think of adding insulation. If you made home improvements over the last couple of years, be sure to dig up your records; you may already be eligible.
Before moving forward on one of these projects, make sure that you get full information about these and other energy efficient tax incentives from The Tax Incentives Assistance Project at http://www.energytaxincentives.org/. There you will find more information about Home Shell and Heating & Cooling as well as Hybrid Passenger Vehicles and Solar Energy Systems.
10. If self-employed, buy equipment and supplies
Have you been putting off buying needed business equipment and supplies, or do you know that you will soon need them? Now may be the time to invest in your business and save taxes as well. Business tax can be complex; therefore it may be wise to first call your accountant prior to large purchases.
11. Give gifts to children
When you give to friends and family, it is usually not taxable to the recipient or the giver. Many people do not realize though if that gift exceeds $12,000 per person it is taxable to the giver, and at a high rate. Therefore, if you intend to give anyone more than that amount, you could give some this year and some next. The second tip is that you and your spouse can both give $12,000 per person, doubling the amount not subject to tax. Be sure to consult your legal and tax advisor prior to making all gifts.
About The Author
Kent E. Irwin, ChFC, CLU, CAP, co-founder and CEO of eFinplan.com. eFinPLAN is the first and only web-based comprehensive consumer financial planning software designed for people who are trying to do a lot of their own financial planning. Find out more about how do-your-self financial planning and how to reach your goals at: => http://www.efinplan.com/
This time of year, now through the first quarter of next year, you will see articles offering year-end tax planning tips. Tax planning tips can increase income in future years, so be careful. Many tax tips often involve accelerating deductions, deferring income, or last-minute charitable deductions (the first three following tips).
For example you may be compelled to make a large charitable contribution this year by December 31st. However if you could be in a higher tax bracket next year because your income is going up because of a substantial raise or bonus, you would have been better off to make the contribution next year. Some may say this is heartless, but I say just the reverse. If you pay less in taxes because of good planning, your will be better off financially and able to give more in the future.
If you have volatile income, before you use the tax savings tips here and in other articles, you may want to run projections for this year and next. A good accountant will run these calculations for you, but understand that tax law changes from year to year and from one administration to the next can often make predicting tricky.
1. Defer income
If you are able to defer income, such as commissions and bonuses until next year, you might be able to pay lower income taxes this year. However, you must consider what your income and taxes will be next year to be sure that you are not actually increasing your taxes.
2. Accelerating deductions
Accelerating major deductions such as state income taxes, property taxes, and mortgage interest may help anyone, especially during a high-income year. If you don't think your personal income tax bracket will be higher next year, and you're not affected by the alternative minimum tax, you can make state and/or local tax payments before the end of this year so you can take a deduction this year.
3. Charitable Contributions
Consider making chartable deductions before the end of the year to receive a deduction. You must make the contribution by 12/31/2007.
Donate appreciated property such as real estate or stock instead of the proceeds of the sale. You may be able to receive a deduction for the value of the contribution without paying tax on the growth portion resulting from a sale, then a gift. If you intend to transfer appreciated property, begin early since it will take several weeks to make the change.
4. Alternative minimum tax traps
Many people face large AMT bills compared to previous years. Be warned if you have larger than usual medical expenses, non-federal income and real estate taxes, or miscellaneous itemized deductions; or if you have exercised large stock options, to name a few.
Year-end tax planning strategies can backfire under AMT. Be very careful accelerating some deductions and exercising stock options at year end. See a tax professional for information on your specific tax situation.
5. Be careful when investing new money in mutual funds at the end of the year
Call the mutual fund and find out when the distribution date is. You may want to purchase after the distribution date to avoid owing taxes on fund shares that you owned only for a short period of time and had little to no gain.
6. Contribute the maximum to retirement accounts
Contribute the maximum allowable to employer-sponsored defined contribution retirement plans, such as profit sharing, 401(k), 403(b) and 457(b) plans. This not only provides an excellent tax deduction, but it also helps you to plan for your future retirement.
You may want to contribute to an IRA; up to $2,000 is fully deductible if you did not participate in a company-sponsored retirement plan or if your income falls below certain levels.
If you are self-employed, you can contribute more to a pension plan than into an IRA. You have until December 31 to set up the plan.
7. Investment Losses
If your investment portfolio has stock that has depreciated in value and is worth less than when you originally purchased it, you may want to consider selling it. You may be able to use that loss to offset capital gains and ordinary income.
Be careful though; investment decisions should not just be for tax purposes. Make sure that you do your research before selling any investment. Some people react too quickly when investments lose value; others sometimes hold on too long. If you decide to sell and invest in something new, make sure that you examine your portfolio to ensure that you have the right mix of investments to match your investment profile, risk propensity and asset allocation model.
8. Save for College
Consider contributing to your child's college savings into a 529 plan. The contributions are not deductible on your Federal return, but parents may be able to write off contributions up to a certain dollar amount on their state income tax return. Log on to SavingforCollege.com to find out information about your state.
9. Home Improvements
Here is a great deal. How about saving energy and the environment, lower utility bills, increase the value of your home and save on taxes — all at once. Projects for the home's shell (insulation, windows, sealing) and heating and cooling may qualify for a one time tax credit of $500. However you are running out of time, since they must be in place by the end of 2007. So while crawling around your attic looking for ornaments, think of adding insulation. If you made home improvements over the last couple of years, be sure to dig up your records; you may already be eligible.
Before moving forward on one of these projects, make sure that you get full information about these and other energy efficient tax incentives from The Tax Incentives Assistance Project at http://www.energytaxincentives.org/. There you will find more information about Home Shell and Heating & Cooling as well as Hybrid Passenger Vehicles and Solar Energy Systems.
10. If self-employed, buy equipment and supplies
Have you been putting off buying needed business equipment and supplies, or do you know that you will soon need them? Now may be the time to invest in your business and save taxes as well. Business tax can be complex; therefore it may be wise to first call your accountant prior to large purchases.
11. Give gifts to children
When you give to friends and family, it is usually not taxable to the recipient or the giver. Many people do not realize though if that gift exceeds $12,000 per person it is taxable to the giver, and at a high rate. Therefore, if you intend to give anyone more than that amount, you could give some this year and some next. The second tip is that you and your spouse can both give $12,000 per person, doubling the amount not subject to tax. Be sure to consult your legal and tax advisor prior to making all gifts.
About The Author
Kent E. Irwin, ChFC, CLU, CAP, co-founder and CEO of eFinplan.com. eFinPLAN is the first and only web-based comprehensive consumer financial planning software designed for people who are trying to do a lot of their own financial planning. Find out more about how do-your-self financial planning and how to reach your goals at: => http://www.efinplan.com/
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