Credit cards

PayBox

2010-09-27T14:56:00.000-07:00

An Instant Approval Credit Card Is What You Get

2010-08-17T08:25:00.000-07:00

Instant approval is the method used by banks and credit card companies to take your application and instantly make a decision based on data they get from your online credit report. In most cases, instant approval means that the bank will give you a temporary approval based on your online credit information that will keep you occupied while they do more detailed research. While many people who apply for them think they will immediately be issued a card, this is not always the case. In fact, it can still take several weeks for a consumer to receive an instant approval credit card, if they do happen to get approved for the card. It is also important to make sure you have good credit before applying for an instant approval credit card. Instant approval is usually obtained online, over the phone or in-store. If you apply for instant approval credit cards online, make sure you go through banks and credit card companies that offer the highest level of internet data encryption.

Instant approval gives banks a reasonable amount of time to determine if an applicant is a good candidate. The applications are just as secure as traditional applications that are sent through the mail. Instant approval is not always a type of card in its own right; often it is a feature that is a part of other common cards, like store credit cards or rewards cards. The cards often appear to be offers that sound too good to be true, but many people are benefiting from them in their daily lives. They are credit cards that are great for people who do not want to wait up to a month for their approval. Instant approval credit cards are also available for small businesses and students and instant approval credit cards are not secured credit cards.

Instant approval credit cards sometimes need more information than what can be gained instantly, by issuers, in order to decide if they will approve your application. Instant approval credit cards are the result of the internet economy as well as consumer wants and needs. You will find instant credit card approvals advertisements are sweeping the internet, since the cards are becoming increasingly more popular among consumers. The entire process for an instant approval credit card is much speedier than applying through the postal mail or over the phone. The cards look the same as any other credit card.

Practically speaking, to search credit cards is as easy as a piece of cake as all instant approval credit cards are carefully arranged side-by-side and selected for you to make the best credit card search. It should be noted that instant approval credit card applicants that have good to excellent credit history are the most likely to be approved. For consumers with very good credit, an online application for an instant approval credit card can result in receiving a new credit card within one to two weeks after applying.

When considering which instant approval credit card to apply for, make sure to look at the various benefits offered. If you have good credit, search for guaranteed approval credit cards such as instant approval credit cards with low balance transfer rate and no annual fee card offers, and business credit cards. Now, many companies offer instant approval credit cards. There are a lot of credit card companies that present platinum credit cards, such as Visa, MasterCard and Discover, with instant approval credit card offers.

Getting an instant approval credit card can literally be as easy as typing a few keystrokes. So, beyond any shadow of doubt, everyone is free to apply online for a credit card and to live a life of leisure with instant approval credit cards like the lowest APR credit cards, no fee credit card and 0 balance transfer credit cards, if you are approved for a card. It stands to reason, if you have access to the internet, you have access to many options for instant approval credit cards. Since all of this is true, do not put it off any longer, check out the instant approval credit card and move upward to greater financial satisfaction.

Getting Smart on a Low - Rate Credit Card

2010-08-17T08:06:00.000-07:00

The intense competition among credit card companies has squeezed their creative brains hard, as they try to come up with innovative features on their various credit cards. One of the most attractive -- and substantive -- features invented by the credit card companies have been the low-rate credit cards.

It is a smart move to take advantage of these cost-saving credit card offers. Potentially, you could actually get the bulk of interest savings from these low-rate credit card offers, especially when you are trying to manage your credit card debt. Indeed, there are people who would advise that you jump from one credit card to another, taking advantage of the 0% apr credit card introductory offers and save yourself a lot of money in interest charges. It would be like getting an interest-free loan every time.

However, as attractive as such offers may seem, it would not hurt to thoroughly investigate the finer details of the credit card terms. The credit card companies, after all, are there to make money, so why should they be giving away their chance to make profits with these 0% apr credit card offers? Being in the business of lending money, credit card issuers earn money by charging interest on credit card balances.

It would be prudent, therefore, to check for hidden costs in these attractive offers before you apply for a credit card. Prudence requires that you study and understand the entire offer. Despite a possible distaste for it, you should read the credit card terms, the back of the offer, and all of the fine print.

You should study these conditions every time consider new credit cards. It's not that you begrudge the credit card companies the right to impose interest and credit card fees; it's just that you would not want any surprises and would prefer to get the better end of the deal. Let us look at some of these details.

Interest rate. This will always be the most important factor when evaluating credit cards. You will have no problem finding the nominal rate because it is usually printed in big bold type in the credit card offer letter. The long and the short of interest rate is this: if you want a balance transfer as a means to save money, you'll have to make certain that your current rate in your existing credit card is significantly higher than the interest rate in the new offer for credit cards. While other considerations should also be weighed, you will agree that if this condition is not true, there is no way you will save money on the new card.

Action date. This may not be as obvious, as it is buried in smaller print. The offer from the credit card company may specify the latest day for you to take advantage of the offer. Sometimes, the offer will specify different rates for different action dates.

Effective period. You need to know how long the low rate will be applied to your credit cards. The introductory periods on credit cards, vary anywhere from three months to fifteen months, and this obviously will impact how much you can expect to save. The longer the time you're in the low rate, the more money you will save. However, if there are credit card processing fees included as a condition on the transfers, you need to calculate a break-even time, that is, you must be in the lower rate for a certain length of time before you start seeing any savings.

Application of payments. You have to make certain how payments will be applied to your credit card account. Sometimes, the credit card issuer will apply your payments to the balance you transfer from other credit cards, which is subject to the low rate offer, while new purchases which may accrue interest at a higher rate will remain untouched by your payments. However, there are cards that offer the low rate for both transfers and new purchases, which is more advantageous to you.

Allowable amount to transfer. Most credit card offers allow transfer balances up to your credit limit, which is great. This can be a little tricky, though, because they often do not specify exactly how much you can transfer. It's tricky because it is possible for you to go over the credit cards credit limit if there are transfer fees and other charges to be paid, and if you do go over that you will get hit with an over-limit fee. Discuss this area thoroughly with the account representative to be certain you don't break any rules. Remember, if the bank thinks it can charge credit card fees for something, they will.

Balance transfer fees. Now most balance transfer offers do not really impose transfer fees. Just double check to make sure; read the fine print carefully. There could be transfer fee schedules based on the amount transferred, which could be something like: a flat minimum fee for any amount; a 2% fee on the amount transferred; or, a maximum fee to serve as a ceiling. It is not saying that credit card fees are automatically onerous, but you must know so that you can calculate if indeed you will save money when comparing the credit card fees to what you currently are paying.

Different rates for different amounts transferred. There may be a varying schedule of rates for different amounts transferred. This could be present in the credit card offer letter, but then again, it may not. Some banks may graduate their interest rate such that the bigger the amount transferred, the lower will be your rate. For instance, amounts below $3,000 will be at 8.9%, $3,000 to $4,999, 7.9%; and over $5,000, the interest is 6.9%. Again you need to know this to calculate the amount you will save on the credit cards.

Late payment condition. You should really be careful with this condition imposed on credit cards. The advantages of the low-rate credit card offer could suddenly terminate and end up costing you hundreds of dollars if you do not read the terms and conditions. Contract provisions like this usually go to the superfine print area, and could read something like, "However, if a minimum monthly payment is not received by the close of the first billing cycle following the payment due date, your promotional APR balances will be 24.9%." That's a jump to the stratosphere from a very low rate credit card offer, and that is for being late once! This is where you realize that it is costly to be late on any of your credit cards. The bottom line is that when you opt to take the low rate offer, make your payments on time.

Interest rate after intro period. You must know what the rate will be when the introductory period is over. Hopefully, the bank will raise the rate to a fair level, but if you comparison shop, you will find that some rates can reach close to 20%. That can be painfully high. You need to know this rate after the promotion period phases out, to be more realistic in your estimate of savings. This assumes that you will not switch to new low-rate credit cards. If the bank tries to gouge you, you probably will. There are so many other offers on credit cards to choose from out there.

How to Stop Credit Card Fraud

2010-08-12T02:45:00.000-07:00

If you are a merchant, particularly someone who sells products online, the chances of your business being exposed to credit card fraud is highly likely. For many businesses, credit card fraud is a cost that they apportion into doing business and they may even account for it in how the price products - similar to how a business may account for bad or doubtful debts. In the UK for example, government published statistics reveal that credit card fraud has went up from £83.3m 10 years ago to £504.8m just before the introduction of the chip and pin scheme. Chip and pin is a system where by a number is assigned to each credit card, meaning a thief has to do more than just fake a signature to complete a purchase with someone else's credit card. This has been said to have reduced fraud by 13% since its introduction.

With so many different types of credit card fraud, it is important to have a strategy to address each one. This article offers an insight into prevention methods for well known techniques of committing credit card fraud.

Card Not Present Fraud

CNP fraud is among the fastest rising category of fraud. The main reason for this is that it is becoming much harder to commit fraud in person, especially with the introduction of Chip and Pin. As online credit card fraud increases there are some measures that all merchants can take to ensure their associated costs of being exposed to online credit card fraud can be reduced.

● Call back customers to confirm orders. Although this is also a cost center, it could be used as a technique when the transaction appears somewhat out with the ordinary

● Pay attention to transactions where the delivery address and cardholder address are different

● AVS or CSC verification doesn't remove risks 100% but it removes the ability for fraud to be done base solely on acquiring account details with out having the credit card in person.

Card Present Fraud

Card Present Fraud has become increasingly hard to commit, and as a result it is no longer associated with being a white collar crime as is often the case with CNP fraud. Despite this, face to face or swiped card fraud can still be an issue which retail merchants still have to deal with. Following certain protocols can help to limit the chances of you being affected, and ensure that your business is refunded by following the correct procedures.

● Train employees to be on the look out for people who appear nervous or uncomfortable. They should not confront then based on that alone, but they should certainly be discreetly vigilant when they do.

● Check that the card number that is embossed matches the card number on the receipt. Pay particular attention to the last 4 digits if this has to be done discreetly and promptly. If they are different then it is important to act. In situations like this it is likely that skimming has taken place.

Finally, large orders from overseas countries with US Billing address are almost always fraud so it's better to have these customers pay via western union or bank wire. Many times fraudsters will order a large order using a stolen credit card and by the time you've discovered the card is stolen you already shipped the order.

Know the Different Types of Credit Card Frauds

2010-08-12T02:19:00.000-07:00

Credit card fraud is one of the biggest loss concerns in a bank. The frauds are usually performed by a group of people either using counterfeit credit cards to cheat unsuspecting merchants or in collaboration with the merchants to cheat the banks. This group of people who performed fraud is known as fraud syndicates.

Types of frauds

There are many types of frauds that have identified by the banks. To ease the efforts of fighting fraud, they are classified into various categories by their natures

1. Counterfeit cards

Counterfeit credit card transactions are one of the biggest fraud reasons in the industry. It make up about 40% of all money lost through credit card frauds. The syndicates used various methods to obtain card information to create counterfeit cards. The illegally created counterfeit cards will have all the information of the genuine credit cards in their magnetic stripes. One of the known methods used is card skimming whereby information contained on magnetic stripes of cards recorded into chips illegally installed into EDC machines or through wire tapping technology.

2. Lost or stolen cards

Lost and stolen credit card fraud formed 20% or the second highest fraud reason. In most cases, the genuine cards are stolen from cardholders in their workplace, gymnasium and unattended vehicles.

3. Mail order or telephone order Fraud

Mail order or telephone order fraud accounts for 10% or is the third highest fraud reason. Usually the fraud syndicates use shady telemarketers and deceptive internet sites to obtain credit card information from the genuine cardholders. In this kind of fraud, the three digits the syndicates need the security number or card verification code (CVC2) which is printed at the back of the genuine card to complete the fraud transactions.

4. Non-receipt Fraud

Non-receipt fraud occurs when the credit cards are intercepted by the syndicates when they are on the way to the cardholders which are usually by courier or registered mails. This fraud reason accounts for about 7% of the total fraud transactions.

4. Other fraud reasons

The balance 23% of fraud transactions made up of the following fraud reasons not exhaustive:

a. Fraudulent applications
b. No cardholder signatures
c. Unauthorized transactions
d. Invalid transactions

HOW TO GET THE BEST CREDIT CARDS FOR BALANCE TRANSFER

2009-10-07T11:27:00.000-07:00

Transferring your credit card balance to a low rate, introductory offer card can provide immediate financial relief but it is important to spend time researching the best credit cards for balance transfers in order to get the best deal possible. Like any important decision, it can be costly to take up the first offer you come across. It is worth comparing the terms and conditions, interest rates (both introductory and regular), balance transfer fees, and ongoing fees and charges. Look at the whole picture in order to make the wisest decision.

The best credit cards for balance transfers will offer a long introductory period, low or no balance transfer costs, competitive interest rates at the end of the term and low ongoing fees and late payment penalties. Try for an introductory period of at least a year. Sometimes it is worth paying very low interest as opposed to no interest if the introductory term is significantly longer. This is particularly the case if other costs such as balance transfer fees and ongoing fees and charges are much lower. Taking a big picture view and making sure that you compare apples to apples and not apples to oranges will help you make the right balance transfer decision.

The easiest way to locate the best credit cards for balance transfers is to do an internet search. Specialist credit card websites that offer comparisons of a variety of different introductory credit card options make it easy to research, compare and apply for these cards. Most of them also have online application forms. This convenience can defeat the procrastination that can easily result from working hours and commitments that make it hard to attend traditional appointments. You can apply from home whenever it is convenient.

To gain maximum advantage from transferring your balance, make the most of your introductory period and pay as much of your interest savings as possible off your credit card balance. If you do this, at the end of your introductory term you will have a much lower balance and perhaps even have paid it off entirely. However, if you still owe money, you can go through the process again of locating the best credit cards for balance transfers and apply for another introductory rate card. By choosing longer introductory term cards, you not only give yourself longer to pay down debt, you also give yourself space before you have to apply to transfer your balance again.

By initially investing time and energy in finding the best credit cards for balance transfers, comparing offers and deciding on the best option for your financial circumstances, you can make the most of this wonderful opportunity. Not only can you de-stress your budget, you can also pay down debt a lot more quickly and put yourself in a much better financial position for the long term. After all, becoming debt free as well as immediately increasing disposable income are the primary benefits of balance transfers. The secondary benefits are lower stress levels and often improved relationships because financial problems are being dealt with. The only regret you are likely to have from this decision is that it took you so long to get around to it.

FINDING THE BEST CREDIT CARDS IN FOUR SIMPLE STEPS

2009-09-21T17:58:00.000-07:00

The best credit cards really didn't go hiding under a rock (even though it may appear that way at first glance). Hey, everyone knows the credit card industry is cluttered with unscrupulous predatory creditors. The humorous Capital One commercials are a prime example of how some credit card companies can make you feel. But the best credit cards are indeed out there and are ripe for the picking if you follow these four simple steps.
1. Repeat After Me -- "I Am Not Desperate."
Yes, you need a credit card, but you do not need a credit card right this very instant. Before you go all gung ho and apply for each and every credit card you come across, reign yourself in and make a conscious decision to set some standards for yourself and the credit cards you consider applying for.
By acknowledging that you will only apply for credit cards that meet certain standards, you will be taking the first step towards finding the best credit cards and avoiding the worst.
2. What's Acceptable?
Now that you know you need to set standards that any potential credit cards have to meet, it's time to define what those standards are.
First and foremost, if you have good credit an annual fee is ridiculous. Many of the best credit cards on the market don't require an annual fee. Yes, some "prestigious" cards require an annual fee. Don't fall for it. Smart consumers worry more about what their credit card can do for them than the name or color of the card.
Also make sure the terms of the credit card are in line with your needs. For many that means a low interest rate. For others, that may not be the case. If you pay your credit card balance in full each month, low interest rates probably don't matter to you but you should make sure you apply for a card that has benefits and perks you'll be able to use.
3. Apples to Apples
Once you have lined up a few different credit card choices, compare them to one another to determine which the best credit cards really are. This means comparing the actual interest rates (not the intro rates), the grace periods, the perks, etc.
4. One at a Time
Remember, there is something called too much of a good thing. Even if you find five different credit cards and you think all five are the best credit cards out there, it doesn't mean you should apply for all of them at once. There's really no reason to carry more than two or three of the best credit cards in your wallet.
And, of course, once you have the best credit cards make sure you do your part to keep them. The best credit cards can become the worst if you end up paying a default rate or incurring late fees and over-the-limit charges. Even the best credit cards make you pay penalties for irresponsible behavior.

HOW TO KNOW WHICH ARE THE BEST CREDIT CARDS

2009-09-21T17:41:00.001-07:00

In order to determine whether or not you are getting the best credit card deal available, you should be careful to read all the fine print detailing how your card will work. Some people find this research “boring” as well as time consuming, but becoming familiar with the terms, conditions and costs is important before you sign up for a card and may save you time, money and grief from possible financial penalties incurred after the fact if you are not fully aware of the guidelines of your best credit card.
Some cards have an annual fee. However, if you only want a low rate credit card with no frills, there is no reason to sign up with a company that charges you a yearly fee. Some popular, high end credit cards provide rewards and perks though in exchange for an annual fee and you should weigh these offers carefully.
What is the card’s APR? If you carry a balance, the lower the APR (Annual Percentage Rate), the less money you will pay on the best credit card. If a credit card comes with a very low introductory rate, you should know how long this rate will last. You should also calculate whether you will be able to pay off your card balance before this “teaser rate” expires.
Fixed rate credit cards are initially more desirable than cards with variable APR because the interest rate does not change each month or each quarter. When you sign up for a card with a fixed rate of 11.99%, for example, it is likely you will be paying this rate for quite a few months. However, you should be aware that fixed rate APR is also liable to change. Federal law permits card issuers to make changes at any time as long as they provide notice to card holders before the new rates take effect. A notice period of only 15 days is required though.
Interest on variable rate credit cards fluctuate with an index. Most card issuers use the Wall Street Journal prime rate as their index. Variable rates – which can change every month of every quarter – are used by approximately 70% of credit card issuers.
Some variable rate credit cards have minimum APRs, which are also known as floors. No matter how much the Fed cuts, once your credit card hits its floor, it will not go any lower.
It is also important to be aware of the length of your credit card’s grace period which is the time from the statement date to the date when your payment is due. If your payment is made in full by the end of the grace period, you are not charged any interest. If you only make a partial payment, interest begins at the end of the grace period. Many credit card companies have decreased their grace period from 25 days down to 20 while some companies do not allow any grace period at all.
When you have done your homework and found the best credit card that appears to be desirable to you, make sure you have checked their penalty policies before you make the commitment and sign on the dotted line.
There's often a lot of confusion about credit cards and which credit card is the best fit for your needs. All credit card companies have amazing offers - or so it would seem. When deciding on a credit card - read the fine print and make sure you know what you're actually signing up for.

CHOOSING THE BEST CREDIT CARDS FOR YOU

2009-09-19T17:26:00.000-07:00

The best credit cards for you are those tailored to your individual financial needs and objectives with low interest rates and, of course, those for which you will be approved. To find out what you’re looking for, answer the following questions:
1. Do you anticipate any large purchases in the next year (i.e. furniture, appliances, etc.)?
2. How long will do you anticipate keeping the principal of a purchase on your card?
3. Do you want to pay your entire balance every month?
4. Are you planning to use this card for purchases over a short time period or do you intend to hold it for a long time?
5. Do you currently have credit limits totaling more than 40% of your annual income or balances outstanding on those cards greater than 50% of the credit limit?
If you answered yes to the first question, you will need a card with a high credit limit and a low interest rate. This may seem obvious but not all people need these things. You may do best getting a card with rewards attached to something you are interested in, like an airline miles card.
If you answered greater than three months on the second question, you will need a low interest rate. Do not be discouraged by a low credit limit. The interest is where you will save money.
If you answered yes to the third question, you may be interested in finding a 0% interest charge card, such as American Express. These cards will not charge you interest as long as you pay your bill promptly and in its entirety every month.
If you answered that you want to hold on to your credit card in the fourth question, you should look for a moderate credit limit and a low interest rate. If you answered that you plan to use this credit card only in the short term, then you should look for a card with an introductory 0% interest rate. These are best coupled with a plan to pay off the balance by the end of the introductory term.
If you answered yes to either part of the fifth question, you may have some difficulty securing new credit cards. Part of your credit score is determined by the amount of credit you carry and the ratio of the balance outstanding to the credit limit. Some banks are unwilling to grant additional credit to those applicants whose credit scores are low due to outstanding credit, even if you have paid on time. The best credit card for you may be a card specializing in bad credit, regardless of how close you are to the acceptable credit rating.

HOW TO FIND THE BEST CREDIT CARDS

2009-09-19T16:57:00.000-07:00

Finding the best credit cards in today’s world can be a bit challenging. Although you may receive hundreds of credit card applications in your mailbox each year, not all of them are worth your time and energy. To find the best credit cards, you should use a general checklist when examining each application. By using this checklist you can guarantee that you know exactly what type of credit card you are applying for and what to expect after you are approved.
Fees
Many people sign up for credit cards without realizing they may be overlooking hidden charges. Credit card companies have the right to charge new cardholders a one-time enrollment fee. This fee can cost as much as $40 in some cases. Most of the time this fee is only explained in the tiny print on the back of the application. With most applicants neglecting to read all of the print, they never know about the fee until the first bill arrives. Another fee that many credit card companies charge is a monthly or yearly cardholder fee. This fee is one that is automatically charged to your credit card each month or year. It is in addition to any finance charges and other fees. It is simply a fee that you pay to have the credit card. Even if you do not make any charges for the entire year, you will still be charged this fee. The best credit cards available are those that have no fees. These “no fee” credit cards can be found if you look and read the applications carefully. Many credit card companies are even beginning to advertise themselves as being “no fee” companies. There is no reason you should pay unnecessary fees when you can get other the best credit cards without fees. So, be sure you are reading the fine print and asking questions before you get a new credit card.
Interest Rates
Anyone who has ever had a credit card knows about interest rates. The best credit cards are those that have a low interest rate. Many credit cards will charge up to 21% interest on all purchases. This makes it very difficult for many cardholders to ever pay off their credit cards. The best credit cards have interest rates lower than 15%. Some credit cards will even allow you a lower interest or no interest on purchases paid off in less than 30 days. It can certainly be to your advantage to use these options some of the best credit cards offer. If you want to try to get your interest rate lowered, simply call your credit card company and request a rate change. If you have been a good cardholder then companies with the best credit cards will take your request seriously.
Remember, the best credit cards are not necessary those with the highest spending limit. There are other behind the scenes factors you should certainly consider. Hidden fees and high interest rates can haunt you and your credit for years. Be sure to check these things out before even applying for a new credit card. You will be glad you researched the best credit cards and your pocketbook will be glad as well.

TWO THINGS YOU NEED TO KNOW ABOUT PREPAID DEBIT CARDS.

2009-09-07T07:24:00.000-07:00

According to the September 2004 issue of the Nilson Report, around $588 billion dollars worth of debit cards were bought in the United States in 2003. By 2008 that volume is expected to grow to $1.231 trillion putting a significant dent in the nation's use of pure credit cards as consumers continue to favor the use of prepaid cards. If you are among the nation's millions who are currently using prepaid debit cards or are among those considering their use, you need to know two things that may detract and enhance your use of the prepaid debit card.
First, know what you're getting. Most people understand the prepaid debit card as the retail gift card. Others know that such gift cards can be purchased through their local bank. What some consumers don't know is that those purchased through their bank can come with hefty fees attached, and those fees can come in a myriad of disguises from up-front purchase fees to various administration fees including replacement costs account maintenance fees and fees for checking the balance. Such fees are currently being debated in the courts, but until a fair resolution is offered, it is up to the consumers to be aware of what they are buying.
Second, despite consumer and fair trade concerns, some applications of the prepaid debit card are both innovative and convenient. For example, there are now some tax preparation services offering what is known as the "stored value" card. In other words, in lieu of waiting for your refund to arrive, you can simply tell your tax preparation service that you would like to have your refund loaded onto your prepaid debit card. Once you have your prepaid debit card "loaded" you can make arrangements with your bank to assign it a routing number so that you may use it just like a checking account. Another new use of prepaid debit cards come from the currency exchange companies, better known as remittance services. The usual remittance companies are facing new competition from small companies who are targeting the immigration population by offering speed and convenience in sending money on-line using a bank account, a credit card or a PayPal account. The customer simply electronically "loads" the desired amount onto a Visacard which is then mailed to the beneficiary.
With the help of the internet, the potential to send money via "loaded" cards is without precedent. The ease, speed and convenience of such services are becoming so popular that many companies are aggressively marketing prepaid debit cards to consumers through customization. Visa, for example, has a prepaid debit card marketed exclusively to teens, know as Buxx. American Express has the TravelFunds Card marketing "for people on the go" and MasterCard has its I-Gen MasterCard marketed to those who prefer to either forego traditional checking accounts or keep only a minimum amount while "loading" their card with the cash their budgets dictate they can spend.

CREDIT CARD DEBT-ONE WAY TO AVOID IT.

2009-09-07T05:34:00.000-07:00

One of the biggest problems people have in these modern times is Credit card debt, and worst is USA. Simply because there have always been so many laws and regulations before you could have a card in the rest of the world, you can't for instance borrow someone elses card and go shopping because you always have to show some ID before they accept cards in Europe.
Credit card debt is an ever growing problem in the U.S. Countless American's are finding themselves in a financial bind because of their over spending habits. Credit cards are a dangerous convenience to those who tend to impulse buy.
Recent statistics in regard to credit card debt are staggering. According to The Motley Fool Credit Center total U.S. consumer credit debt has reached 1.7 TRILLION dollars. Collectively, these card holders pay over 50 BILLION dollars in finance charges, every year.
It is said that, on any given day, approximately 78% of the nation's population would qualify for some type of credit. More than 1.3 million of these card holders will file for bankruptcy, each calendar year.
Credit card companies are as lenient as they can afford to be when it comes to issuing new credit cards and spend MILLIONS of advertising dollars, each year, singing the praises of their specific offer.
They count on the fact that the majority of card holders will, indeed, possess an impulse buying gene. These companies also hope that card holders who apply for a line of credit, to be used only on an emergency basis, will give in when tempted with appealing merchandise.
If you suddenly find yourself struggling with credit card debt there are things you can do that will help to ease your stress and reduce your balances. These common sense steps will assist you in getting your credit card debt, under control.
1. Stop using the cards - this is the simplest way to start reducing your debt. Yes, you still owe for past charges, but cutting up your cards or putting them away in a secure place, will alleviate the urge to purchase things that you don't really need.
2. Stop new credit card offers - It's always tempting to take advantage of a new credit card offer, especially if it is pre-approved. You can easily obtain the forms needed to remove your name from credit bureau lists, by calling 1-888-5OPTOUT.
3. Always pay more than minimum - Credit card companies offer low monthly payments for a reason. The longer it takes to pay off a balance the higher their profit margin. In the long run, you'll be surprised at what a savings this will make.
Credit is a wonderful thing if used wisely. Don't become one of the millions of card holders who are struggling with debt. By setting limits and avoiding un-needed purchases you will stay on the road to healthy credit.
The obvious alternative is to use a prepaid card, that way you can never use more money than you have loaded to your card.

FINDING WAYS TO GET BAD CREDIT CARDS AND LOANS.

2009-09-01T07:09:00.000-07:00

It can be easy to slip up and mess up your credit rating, and then the hard part starts. How do you get more credit so that you can go about your life in a convenient manner and build your credit rating back up? There are actually a number of companies that cater to people with this problem, and offer bad credit credit cards and loans. However, you will have to pay a bit extra for the privilege, so be sure to be careful about paying on time and doing what you can to build your credit rating back up again.
Basically, when it comes to bad credit credit cards and loans, you will have to go one of two ways. You can get secured loans or credit cards, which means you put up collateral in the case of loans and put up cash in the case of credit cards. This can work for some people. Another option, if you don't want to tie up your money like that, is to get a fee based credit card that doesn't require you to put up the entire amount of your credit limit. Of course then you are paying fees, which could get a bit high. Just the fees to open the card and use it amount to hundreds of dollars. There are both monthly and annual fees, as well as the usual fees for being late or going over your limit.
You will have to carefully consider the different options available for bad credit credit cards and loans before making any decisions. Make sure that any credit card that you apply for reports to the major credit report bureaus so that you are actually improving your credit rating through using the card. Since there are a number of different options available, it would be wise to look through them carefully to find the one with the lowest fees. You also want to make sure it will be convenient for you. Some offer online bill paying and the ability to check out your account details online at any time, and this definitely makes it easier to pay on time and keep from going over your limit.
Be sure that once you have gotten your bad credit credit cards and loans you really do stick to the terms so that you will quickly be able to get a regular credit card. That will be the easiest way to minimize your costs.

WHAT CAN YOU DO IF YOUR INCOME DROPS

2009-09-01T07:04:00.000-07:00

A reader recently wrote to me with this problem;
I have never done this before, but I cannot pay my bills Currently they are all current. But, with huge pay cut I got from being a state employee, I can no longer pay the bills. Do I save up some funds and then offer the settlement? I am currently broke.
Signed Broke
Dear Broke;
While this is a serious problem, for sure, it doesn't have to ruin you. No matter how bad it seems at first glance, there are always step you can take to get you out of the mess that you've gotten into.You can work your way to good financial health, and I can give you a few ideas to get you started.
Rule number one - DON'T PANIC! Panic and fear usually force us to make bad financial decisions - decisions that we will later regret. So, take a deep breath, all is not lost. You are still in control here - if you keep your hands on the steering wheel. You must remain level headed and in charge. Then, you'll be able to deal with your finances in a clear and rational manner, and make good decisions.
Let's look at the positive first. All of your bills are current! Do you realize what a great thing this is? You've got some breathing room to figure out what you can do to manage the shortage. Time is a precious commodity - and you've got time! Congratulations for staying current! I'm assuming that, since you're current, your credit is decent. Work hard to keep a good name, as this can really help you.
When you talk of saving up funds and offering a settlement, I assume you're thinking about stopping payment of your debts to force your creditors into some type of settlement. I think you're jumping the gun. Settlement will definitely damage your credit and make future emergencies very difficult to weather. Since you have some time, you have many options open to you that others in a more dire situation wouldn't have . Settlement is a short-term solution that will have many long-term consequences. Before you take a big step like this, you really should take these steps first.
Keep The Lights On
Keep your household running, first and foremost. You and your family need to have a roof over your heads, food in the fridge, stay healthy and maintain a reliable vehicle. Before you make any payments on debt, make sure that you take care of your family and home.
Home. Stay current on your mortgage or rent. Pay the utilities (gas, electric,trash, etc.), insurance and taxes (if applicable). Keep the home in good safe repair.
Take Care Of You And Your Family. Keep food in the fridge. Pay any health insurance premiums. Pay any basic expenses that directly affect the well being of you or your family.
Keep Your Car In Good Shape. Put gas in the tank, change the oil, get new tires if needed. Keep your car insurance current - don't skimp here. You will need reliable transportation to get you to and from work. Do whatever is necessary for basic transportation (heavy on BASIC).
Make A Budget
You have to know exactly where every nickel is spent - "every dollar has a name" says Dave Ramsey. If you don't have one, make a budget - tonight! This is critical to start you on the path to a cure. A budget doesn't have to be fancy - get a spiral notebook, gather all of your monthly bills and get writing. Find out exactly where your income is going.
Put That Budget To Work
Use the above as a guide to determine what your basic expenses are - this will be your minimum monthly requirement to stay operational. Any expenses above this are optional - meals out, entertainment, clothing, vacations, electronics, etc.
At this point, you should have a pretty good idea what it will cost to support you and your family.
Your Debt
You will need to get a total of all of your debt, and all of the monthly payments on that debt. Write this in the same notebook you used for your budget. Add the monthly debt payments to your expenses, and now you have a total monthly outgo. Since your salary was cut, this total monthly outgo is now probably more than your income.
Since I don't recommend settlement at this point, you have two options.
Increase your income.
Reduce your expenses.
In the short term, increasing income can be difficult. You can look for a part time job, but in this economy, it could take time. But, you can cut your expenses to the bone - and still make your debt payments. And, you will have to make sacrifices.
It's amazing how much money you can save just by cutting a few luxuries from your life. For example;
Cut out the Starbucks. At $5 per cup, you could save $1250 per year by making do with free coffee from work.
Get your movies at the library. If you watch just 3 rented movies per week, you could save up to $750 each year if you shop (free) for movies at your local library.
Give up smoking. I know - easier said than done. But, the savings - save over $1400 each year by giving up a pack-a-day habit.
No more bottled water. Did you know that bottled water is more expensive than gasoline? Save at least $500 by drinking tap water.
That's almost $4000 in savings each year if you were to do all the above! If you have cut what you can and find you still can't make your monthly debt payments, you still have some options.
Debt consolidation loan. If your credit is still good, you may see some big savings if you refinance of those high interest rate debts under a lower interest rate personal loan at your local bank or credit union. This could give you the breathing room you need to get those debts paid off.
Negotiate with your creditors. When all else fails, be honest. Call your credit card companies and let them know your situation, and that you're having trouble meeting your obligations. Ask for help - temporary interest rate reductions, payment holiday (skip a few payments). If you have a good record, many will bend over backward to help you out. But, you must keep your word and make good on your promises and your debt.
Move credit card debt to low or no interest rate cards - temporarily. A few credit cards will offer a teaser rate of zero to a few percent interest for up to 6 months to get your business (and your balances). The reduction in interest could give you some breathing room - just remember that the low rates will end, so be prepared to accept the higher payments or move the balances to another low interest rate card.
Change Your Habits
This should go without saying at this point - but I'll say it - STOP CHARGING NON-ESSENTIALS ON CREDIT CARDS! Some financial "gurus" say that you should use NO credit cards. I say that one for monthly essentials is fine if YOU PAY OFF THE BALANCE MONTHLY!
This is just a start - once you balance the income with the outgo, you will need to concentrate on getting that debt paid off.
I really recommend that you get a copy of Dave Ramsey's book "The Financial Peace Planner." It's cheap and full of practical advice.
And, if you haven't gotten a copy of my free report "3 Easy Secrets To Start Debt Cure Now," I highly recommend you do so now.
Oh, and one more thing - swear to yourself that you'll use this lesson to get out of debt ASAP and stay out of debt in the future. Life has plenty of challenges and concerns - why complicate things with debt?

RETURN TO SURVIVALISM

2009-09-01T06:53:00.000-07:00

Growing up during the cold war era, we often heard about the "survivalists," those people who stockpiled supplies, weapons, and other items essential to everyday living for the day when the bombs fell. Fast forward thirty years, and the survivalists may yet return, except instead of bombs falling, they're preparing for the impending collapse of the world economy. For the day when the oil runs out, the stock market collapses, or the monetary system, as we know it, implodes. Think this is impossible? Think again.
Imagine if you will, international terrorists hack into the world financial system via the internet, and infect it with a virus.....and the virus spreads, from server to server, around the world before we can stop it. All financial records are corrupted, from the foreign exchange all the way down to individual bank accounts at local banks. If we suddenly had absolutely no idea what money was worth, in any market, or any idea how much anyone had in the bank, what would happen?
The answer. Total chaos. Impossible, you think? Look in your wallet. How much cash do you really have? Five dollars? Twenty? None? That's right, lots of us carry little or no cash. If your debit card was suddenly worthless, and your credit cards, too...what would you do?
Now, imagine that happening everywhere.....how long would it take before people began to simply take what they needed? How long before riots started in the streets because no one had a way to buy food or gasoline? It's a chilling thought, isn't it? But not too far fetched to imagine either...is it?
As more people awaken to the very real chance that something like this could happen, expect a return of the survivalists of yesteryear. Just like the people who live in areas threatened with extreme weather (think Hurricane Katrina), there are people who already have emergency survival kits in their homes, whether that home is in an urban area or a rural area, and that number of people is growing and will continue to grow. In times of trouble, there are always people who try to plan for their own survival, and we are definitely in times of trouble, aren't we. Still sound impossible? Or, more likely, it begins to sound probable, doesn't it? Should you do anything? Nothing?
Actually, the truth is that we should all be prepared to live on our own for a minimum of three days, and preferably up to seven, at any time, for any reason. Think about it, another hurricane, a tornado, an ice storm...these are all common, everyday occurences, and we should be prepared for these things. Why not be prepared the uncommon? Why not be prepared to live, with no cash, no gasoline, no support from any outside sources for a period of time? Why not be able to take care of ourselves, our family? Perhaps a return to survivalism wouldn't be so bad after all, would it?

PERSONAL DEBTS MANAGEMENT TIPS AND HINTS

2009-09-01T06:30:00.000-07:00

Keeping your personal finances in a healthy state will affect every part of your life. For instance, if you manage your finances poorly, your personal relationships may be affected. In the worst case scenario, you may even have to file for bankruptcy, which will have a negative impact on your career. Here are some tips on how to manage your finances wisely.
Tip 1: Managing your cash flow.
This is the number 1 cash management tip - always keep a positive cash flow. Very frequently, we hear people complaining about how cash strapped they are. What they are actually saying is that they are spending more than what they earn. They have mortgages to pay, car loan repayments for that fancy car that they don't really need, credit card loans, and so on.
Sit down and take some time to list out all your expenses. Notice where your money is going. Only then can you begin to take action. The goal is simply this: always spend less than what you earn. If you see an expensive item that you'd like to buy but you know that you can't really afford such an item, then just don't buy it. Don't use your credit cards foolishly and end up with a huge loan amount that you have trouble paying off.
Tip 2: Make your payments promptly.
Sometimes, you may need to use your credit cards to buy items that are necessary. For instance, you really need to replace the refrigerator and the washing machine. These 2 items can add up to cost several thousand dollars. So you use your credit card to pay for the items first.
In this case, make sure that you pay the monthly bills promptly when they arrive. Don't delay the payments. Usually, for such purchases, the loan is interest free. But you have to pay on time. If you don't, late interest payments will be applied. Interest will then snowball and you end up having a bigger loan amount. If you continue to ignore the bills, the debt may possibly get out of hand.
Tip 3: Debt consolidation.
Prevention is always better than cure. But the first 2 tips above are useless if you are already heavily in debt. If you find yourself unable to cope with the monthly payments, perhaps it's time to contact a debt consolidation company.
Debt consolidation allows you to consolidate all your debts into one single monthly payment. The benefit of doing is that the debt becomes more manageable. Often, the interest rates are also reduced and you find that you have a lower monthly payment amount to pay off.
Each case is assessed on a case-by-case basis. Professional debt experts will assess your situation and then decide on the solutions that will be most suitable for your case.
Note that even if you have a bad credit rating, there is still the possibility of getting a consolidation loan. So don't strike out the option of working with debt consolidation companies. They may suggest solutions that may help you get back on your feet .