I speak from experience on this period because, during that time my job was to sell private label credit card programs for retailers. It was easy. With so many merchants in progress, competitors were forced to adopt this method of extending credit to compete. Once the market was saturated with card programs, retailers have begun to up the ante. They wanted to find a way to be different from the competition to attract businesses. They began to offer "interest free" programs on their credit cards. This led consumers to spend even more, because many of them operating under the misguided idea that if it is irrelevant, it is not really debt.
Initially, you had to make six or twelve monthly payments in order to obtain, without interest. So who has changed to three months without payment or interest, and then six months and, finally, some merchants offer a maximum of two years with no interest or payment.
Can you imagine what happened to the people who were susceptible to "The E Factor"? They spun out of control for some shopping with a first payments, such as twelve months, and then forget. For many, it was as if they had acquired the goods for free, until the day of reckoning came when they were forced to pay it all in one lump sum or over time refinancing, loans at exorbitant interest rates. Little did they know, they were mortgaging their future.
As the 1980s ended, I have seen credit costs unprecedented in my career. There were some days where we've been inundated with requests for a handful of stores in a city of average size. We worked overtime, sometimes on Saturday and Sunday to monitor and address this. We also wish to participate in sales promotion and to provide on-site financing, with our representatives on site, requests from buyers to take until midnight so that sellers could spend more time on the floor their income. It was crazy.
I remember being horrified to find credit applications and credit reports for certain candidates. There were many, I recall, that are applicable to virtually all the stores in town. I could see where they had asked for a file, since it appeared on the credit bureau report. Whenever someone asks for a credit bureau report was requested, it's called an investigation. It was not abnormal or even twenty or thirty requests for information within three months on a folder. Also evident that these same people have begun to show signs of being overburdened with too many debts.
I knew that this trend in the loan, like all folly would end. In fact, I could see the end corning like a freight train barreling tracks.
Please contine reading part 4 (the last part)
Other part
The long chronicle of Debt part1
The long chronicle of Debt part2
The long chronicle of Debt part3
The long chronicle of Debt part4
The long chronicle of Debt part3
The long chronicle of Debt part2
Credit cards changed all that. Credit is now granted to a pre-established limit that customers can self-approve a loan at any time they wanted, to a certain amount. It was really the beginning of an unprecedented upsurge of consumer debt: as you imagine in May Without the benefit of professional guidance for each credit transaction, those most affected by "The E Factor" have their finances in the soil to excessive credit spending.
This is less regulated, as a loan was more profitable for banks because they could charge rates significantly higher, for example, 18 percent for personal loans, for example, 12 percent, while their cost of money has been exactly the same. This of course resulted in higher profit margins. Another factor lending was the cost that way. p is no longer required to pay an employee to re-evaluate each credit transaction or to counsel for the borrower. Thus, money was saved, and the process of reassessment has been selected for much larger and more profitable loans. This is only the beginning of good corporate citizenship to make room for the pursuit of higher returns.
Over time, there were more and more means of access to credit. The number of members in the credit bureau, ie: companies to grant loans grew by leaps and dogs that industry retail enjoyed the benefits of the baby boom in the most productive years of purchase.
In the 1980s a new form of credit card was emerging - the "private label" credit card. Here is an example. If you visit an electronics store - for example, Acme Electronics - May you see a demonstration of credit applications made to look like his own store. However, if you read the application, you will find Acme Electronics is not the lender. The fine print in May that Friendly Finance is the lender, even if the application and credit cards will carry all the name of Acme Electronics. Thus, the term private label, retailers felt that it was cheaper for them to secure the services of finance companies, manage their credit card programs. After all, customers have used venture capital money and the store does not have to hire people to do the administrative work. Once again, more profitable.
Credit cards really peaked in popularity in the mid 1900s with a credit program available to virtually any retail merchant who wanted one. Like credit cards MDD are gaining popularity, credit cards and bank are also growing at a phenomenal rate, the baby boom reached its peak buying years, and hell. Thus, again came to call the 1980s the decade of excess, because of all the expenditure that has taken place, much of it is used, rather than needs. All electronic toys imaginable was available to the public-ended credit programs (loans without reassessment of credit), and it leads to a frenzy of spending.
Please continue reading part 3
Other part
The long chronicle of Debt part1
The long chronicle of Debt part2
The long chronicle of Debt part3
The long chronicle of Debt part4
The long chronicle of Debt part1
Debt, poorly managed, to ensure a lifetime of renting, paying someone else mortgage. it will ensure financial instability, the same difficulty. Debt can lead to very inappropriate. It has been known to destroy the chances, homes due to loss, shortened careers, marriages and wrecks, in extreme cases even lead to suicide.
Now the debt is not taken. On loan for a purpose that we can afford, as a house, is perfectly acceptable. However, borrow money needlessly is a problem. Borrowing money is needlessly caused by the desire for instant gratification, something that we have previously referred to as "The E Factor." To understand where we are today in the consumer debt, begin with a brief review of history. When I entered the financial services industry in 1972, I remember that Visa was just becoming popular. It has been around since the late 1960s, but it really started to take off in the 1970s. I remember to have representatives of the bank to come into our friendly offices in the Finance, one day, offering to pay us $ 1 each just to complete a visa application.
Before the arrival of the big bank credit cards, shopping in department stores would have to apply for a store credit card if they wanted. Then, gradually, department stores began accepting major credit cards, as well as their own. Anyone looking for a small loan can try a bank, but at that time, finance companies are those specializing in small loans. A Friendly Finance, we have people lined up the starting gate in mid-November each year for loans for the Christmas season. It was easily our busiest of the year.
Each time someone from applying to us for a loan, we would take a new application, and to reassess its ability to pay. This process allowed us to determine whether a person was a candidate for credit issues because we saw an overview of their credit history of the last application for a loan before. If they were too far in debt, and demand for credit too often or for trivial reasons, he gave us the opportunity to counsel the customer and encourage them to reduce their debt borrowing until that were under control. Sometimes, when a customer has borrowed from elsewhere to our knowledge, arid, he came to our attention that they had difficulty with payments, we offer "pool" of their payments to creditors without charge. "Globalization is a process by which the client pay a lump sum every month and we send to all creditors in proportion to the amount due. It was a form of credit counseling, all part of our professional services.
Thus, the process by which a new application and a new evaluation was made for each credit transaction, really helped keep things in check. It was a good service for the customer, even if most do not realize that. In many cases, it has avoided the suffering of people with very serious consequences of excessive debt.
Please continue reading part 2
Other part
The long chronicle of Debt part1
The long chronicle of Debt part2
The long chronicle of Debt part3
The long chronicle of Debt part4
Being Credit card clever by 4 ideas
Most people have a love-hate relationship with their credit cards. They like the convenience and the "free" money, hatred and the bill when it comes in. It is obvious that the best way to manage your card is to choose one that suits your spending style, but here are some ideas on how to ease pain at the statement arrives
IDEA 1 Set yourself a limit
Often the key to the skilful handling of the credit card is to establish borrowing limits and not be tempted by the flattering letters: "You have been an excellent customer service, we have increased your credit limit to $ 5000 'variety. These letters can be disastrous for the poor management of credit cards.
Consider the application of two cards: one with a low limit for purchases, and one with an upper limit, for larger, longer-term purchases. Low limit on the card, looking for a good interest-free period (40-55 days), and with the upper limit of the card is not without interest, but a period of lower interest rate.
If your credit card has a debit, use it. This way you spend your own money instead of the bank when making a purchase. You can deposit funds to the card, earn interest and enjoy the convenience of plastic.
When selecting a credit card, are not necessarily gold or platinum varieties that offer a higher credit limit.
The advantages such as wine club, theater preferred reservations and travel insurance typically at a price, usually a higher fee. If you change a higher credit limit, to implement this standard on the Lard.
IDEA 2 repay in full
Try to avoid paying only the monthly minimum on your credit card, then you pay a high level of interest on the balance in May and the period without losing interest entirely.
Use the interest-free period to your advantage to pay your card at the last minute, but again do not have money sitting in the bank earning a few percent interest while you pay high interest rates on your outstanding credit - card balance.
Unless you're desperate, avoid drawing cash on your credit card because increasing credit card debt. This is a very expensive way to get money, that interest is generally from the date of the cash position is established and you lose the interest-free period.
IDEA 3 Leave the house!
If you love to shop while and can not resist a deal, try to leave your credit card at home when you feel the urge to spend. This way you can have time to reconsider whether you really need that "negotiation".
Beware of the Christmas holidays, because it is a time when the debt of credit card can spiral out of control, a situation not helped by the fact that some cards offer a 'Christmas' from of your minimum repayment. Do not be tempted.
IDEA 4 Have your own card
It is good for you and your partner to have credit cards. This ensures three things: that you will not be able to have the card frozen your partner should die and you are not the primary cardholder, you are less likely to find left to pay the debt of someone else, and you have your own credit history, which will be important if you need to borrow money in the future.
My shoddy credit score should away
Repair your credit score, either negative or errors can sometimes be a long and laborious process because there are several credit bureaus, and possibly creditors to deal with the necessary corrections. As you can see a specialist for an illness or a mechanic to repair your car, there are companies that specialize in helping you to repair and / or improve your credit, resulting in significant savings due to lower interest rates. I saw many people, both good and bad credit alike, to improve their credit score in mobilizing assistance from the services of credit repair legitimate. Please see the "links" of my website for a list www.BraunMincher.com.
Unfortunately, many people wait until they apply for a loan to learn they have on their credit defaults. Knowledge is power, and as a consumer, you need to know the adverse effects of the information on your credit report at least six months before submitting a credit application so that you can improve . This also applies to someone who already has "good" and credit is "great honor" to win even more.
The strategy of legitimate consultants repair credit is to analyze your credit report and to advise you what can be done to improve your credit score. This can be as simple as transferring your balance to a credit card to another to reduce the ratio of the balance, or by identifying incorrect information and have it corrected by a creditor. They then contact the credit bureaus on your behalf and literally dog to death until the corrections are made. A friend of mine even got a letter from one of the credit bureaus notifying them that their credit repair consultant was great with the paperwork and offered to make the requested correction if they request to stop sending letters. Credit bureaus May not like that, but that is what I call an action on the resolution!
Unfortunately, the FTC (Federal Trade Commission) found that some companies in both the credit repair and credit counseling (the next sub-chapter) firms are less scrupulous operator to desperate among us. They adopted the Law on Credit Organizations Repair (CROA), for our protection. Under CROA, it is illegal for consumers to be accused of money promised for the services of credit repair before being performed. Also, some companies say they can legitimately remove negative credit information about you for your benefit. It is also clearly illegal. Credit repair and counseling companies must also give you a written statement that everything they do, you can, quite frankly, to do it yourself.
Disputing negative, inaccurate and / or misleading information on your credit report is your right as a consumer. The legitimate right to use an agency credit repair is legal and encouraged if you have several errors or a complex situation of credit reports.
Fantastic Plastic card (credit card)
Other than bank overdrafts, the best known forms of credit are immediate credit and debit cards. The word "credit" has that warm and friendly connotations that it is often easy to forget that credit is debt. Credit cards can cause more havoc than the budget just about anything else, it is important to use or not use them at all.
As credit cards are relatively easy to acquire, the harder is likely to decide which of the many maps available at present more than 200 will give you the best deal. The most common are Visa and MasterCard, but only every financial institution offers its own version. In addition, Visa and MasterCard also offer "affinity cards" (or loyalty cards), and major retailers such as Myer-Grace Bros, David Jones, Sportsgirl and freedom of furniture have their own store cards.
Credit cards offer an interest-free period or interest charges immediately the purchase is made, but at a lower rate, some also charge an annual fee. Just as you need your bank account through its paces, we need some crunch numbers on your credit card. Your style will determine whether spending an interest-free period is useful or not. In 2002, the Reserve Bank announced its intention to force banks to reduce hidden costs from the processing of credit card transactions. These costs are generally passed on to the retailer, who in turn forwards them to you in the cost of goods. In theory, then prices will fall as the tax is reduced, and the fee must be disclosed in May, you can pay less by paying cash. But it is not good news, as some banks have responded by increasing the annual card fees to offset lower revenues. Ultimately, as usual, it pays to shop around for the best deal.
Finally, take care of your card. You May be responsible for all debts until you have a missing report, a thief can quickly undo all the good that your spending patterns of care were achieved. Know your credit card number and ring number if your card is stolen or missing, and to act quickly to report it. Do not disclose your PIN or Lard lend to anyone, and be wary of giving your card number over the phone, unless it is a reputable company.
Watching your debt repayment pattern, please
The best way to reduce the cost of credit card debt is to avoid it, first when you make purchases of consumption. You can prevent consumers by eliminating the debt of your credit or restricting the purchase of consumer items that you can repay each month. Remember, take that for long-term investment.
Do not keep a credit card that charges you an annual fee, especially if you pay your balance in full each month. Many toll-free credit cards exist - and sometimes even offer an advantage to use:
• Discover Card (800-347-2683) rebates of up to 1 percent of purchases in cash.
• GM Card (800-846-2273) provides credits worth 5 per cent of your expenses that can be used for the purchase of most vehicles manufactured by GM.
• AFEA (800-776-2265) offers a map for free.
• USAA Federal Savings (800-922-9092) offers a map for free.
You should consider the cards in the list above if you pay your balance in full each month without charge, because the cards usually levy high interest rates for balances held in the month. The small reward that you get you do not really much good if they are offset by interest charges.
If you have a credit card that charges an annual fee, try calling the company and you want to cancel the card, because you can get a competitor of the card with no annual fee. Many banks agree to waive the fee on the spot. Some require you to remember each year to cancel the tax - a problem that can be avoided by a real card free of charge.
Some cards charge an annual fee and provide credit to purchase a specific item, like a car or plane ticket, a value of May whereas if you pay your bill in full each month and charge $ 10,000 or more per year.
Note: Be careful - May you be tempted to charge more on a card that rewards you for other purchases. Spending more for premium rack LIP defeats the purpose of credit.
Credit card universal default clause
There is a new game in town, and it will bite you hard if you are not aware. By this point in the book, you probably know that if you pay credit card bill late, you will have a late fee, it will affect your credit score, and the map are behind you of increasing interest rates on you.
Well, it seems that the sentence is no longer sufficient. Nearly 40% of all credit cards now carry a clause universal default. With a universal default clause, not only your credit card company to increase your interest rate if you are in arrears, they also increase your interest rate if you are late for other companies! And in May this not happen unless you pay another credit card company late, but if you pay your car loan, mortgage, or even the end of your phone bill!
It is in all the small print of your credit card, the paper that nobody ever reads, but should. The credit card issuers' theory is that, while May had never been in arrears, you are in fact a late payer, and the end are bad payers. They think, why wait to get burned by tomorrow if you can start to bear risk at the moment? This, of course, has always been the case when the source apply for credit, but the idea to do mid-term, and when you've never made late payment by the issuer in question, is fairly new.
Credit cards with universal default clauses to keep a tight control on your credit report, you should also do. And if they see something they do not .. . BAM! They can and your interest rate overnight, without warning. The average "default" in 2005 was 24%. As the Prime lending rate has increased, this figure is likely to be even higher today.
Always be aware if you have a card with this feature. If you do, to turn away from him through a balance transfer. Also, check your statements every month. Do not just watch your account balance, view your interest rate as well. May it has risen and you do not know.
The important of interest rate when use Credit card
The most important thing for people who carry balances on credit card compare interest rates. Some cards offer low in May from 1.9% promotional rates, but you must be aware that this is probably for a period of time and increase in May so if you have not paid, the card or transfer the balance to another location. Beware the introduction of "teaser" rate. May the best for last a year or more, but some of them only last a few days. As always, read the fine print. A simple web search will show several comparisons of interest rates of credit cards. The best permanent (not variable), the rates at the time of writing are about 6.9%, the highest being 25%, the average is probably around 13% on an annual basis, making it the one of the most expensive debt. Remember that the interest, especially compound interest, adds quickly, and even a couple of points can have a big impact, if you carry any type of significant balance. Unlike mortgage interest, credit card interest is not tax deductible.
It is important for consumers to know if they receive a card with a fixed or variable interest rate. Variable will be linked to some market index like the first rate in a certain way. An example of 10% in May on the first. If the first is 5%, the rate is 15%. If the first increases to 7%, you get up to 17% and so on. It is interesting to note that the rate has more than doubled over the past three years before writing these lines and is currently just below 8%.
Credit card issuers typically have interest rates that they charge for different categories of consumers and the various types of transactions. Ironically, people who are less likely to be able to pay are charged the highest rates. The reason is that these individuals pose the greatest risk for issuers of credit cards, and also the most profit potential. People with bad credit and limited financial resources, even if they do well, get stuck paying for others in their same situation, which by default. If you manage your finances and to maintain good business credit, you generally get more credit and lower interest rates in the future.
The credit card business is very competitive and we can usually negotiate better rates with your transmitter, simply by calling them assuming you have good credit, are not overloaded, and made all your payments on time.
I do not usually credit card balances, but recently one of my companies wanted to use one of his credit cards to carry a small stock for a short period of time. When I saw that I would be charged almost 19% interest, I called the credit card company and told them that I would like to use their card for next purchase, if they could offer me a better rate interest. They lowered the rate by almost half to 12%, simply by calling my! In my case, this probably led to a nominal value of the savings of twenty or thirty dollars, but think of the savings for someone who has thousands of dollars of debt credit card for a period of weather.
Credit card issuers also classify the different types of transactions. Typically, you receive the lowest interest rates on balances related to regular purchases. Other transactions such as cash advances, have much more interest charges which are usually just under the limit to be considered usury (excessive illegally), depending on what state you live in (18 to 29%). Both balance transfers and verification (sub-section below) are sometimes classified as cash advances after the promotional rate period.
Thus, at the end of the day, what are you looking for in a credit card?
• Little or no annual fee
• A sort of rewards program
• A long grace period
• A low interest rate (if you balances)
Not credit card shopping BUT Shopping for Credit card
These days it seems that credit cards come in all sizes, shapes and colors. What May is the right card for another person is not necessarily the right card for you, and the right card for you today May not be the right card for you in the future. Thank you to the Internet, it is actually very easy to acquire credit cards and compare them on equal points.
First, choose the type of credit card you want. Visa and MasterCard are accepted almost everywhere in the world that accepts credit cards. Discover a large annual cash-back incentive, but it is somewhat less common. American Express has many advantages such as the prestige and no pre-set spending limit, but again, not all merchants accept, and even when they do, they sometimes try to surcharge purchase because the merchant costs are so high. Note that Visa and MasterCard are issued by many companies such as banks, credit unions, credit providers and other affinity programs, it is therefore in your best interest to shop around for the best case . American Express is simply no comparison-shopping permitted. Also, most American Express cards traditionally require consumers to pay the balance in full each month.
I recommend not to hide the cards like Carte Blanche and Diner's Club. Maybe there was a place for these cards in the disco 70s, but I have no idea how or why these cards still exist today. This also includes the gas station or store credit cards because they offer limited use, generally charge high interest rates and affect your credit score, just like a traditional credit card .
Then, whether there is an annual fee. Most major credit cards are available with no annual fee, but be sure to check if it is only a first year of promotion or a permanent policy. Most cards with a certain type of "reward" in the program shall pay an annual fee to help offset the cost of providing such a service. These range from approximately $ 60 per year for the United Mileage Plus Visa, to $ 395 for American Express Platinum. Do not pay an annual fee just to have a credit card, do so only if the benefits they offer more than offset this cost.
Then research whether the card offers a "reward programs" or "programs". In these cases you will receive in May air miles for every dollar spent, or petrol, merchant discounts, or even be part of your purchases to support a cause you believe in.
Airline miles is by far the most popular rewards program credit card. In most cases, consumers earn one mile for each dollar they spend, but the exact formulas vary widely and some have even cap the number of miles you can earn per year. If you like Journey, using one of these cards to make your everyday purchases might make sense.
When I built a new house several years ago, I used some of my credit cards to make purchases of all equipment from timber. Ultimately, I had accumulated enough miles for multiple tickets. Even if they are a regional carrier based in Denver, I personally believe that Frontier Airlines is one of the best values of their credit card. They offer one mile per dollar spent, and it only takes 15,000 miles for a round trip ticket (35,000 for an international destination).
"Cash Back" is another great outlet for a map. It allows customers to receive cash as well as their property in case of payment by card.
Other credit card programs with co-market traders or causes. For example, Starbucks has its own credit card that consumers earn points that can be used free lattes. This could be a significant savings for anyone who frequents the store often. Even the Hooters restaurant chain has its own credit card, I can only imagine what their reward. Some credit cards offer benefits to attract customers and help them to justify their annual dues. My card is American Express Platinum me free access to several airline lounges when traveling, and have an international airline travel program that provides a free companion ticket on certain travel that recently saved me about $ 2000. Some cards also give a percentage of your expenditures for a variety of causes such as the American Cancer Society, the Red Cross, and others.
Take a look at the grace period offered by the card. At the worst end of May are the cards that have no grace period at all. Interest begins to accumulate when making a purchase. Read the fine print and your knowledge. More generally, a period from May through twenty to forty-five days from the date of purchase, depending on the billing cycle of your card uses.
You are probably using a credit card in some way anyway, so you should get the card that best fits your needs. I can not emphasize enough, however, the importance of maintaining good credit and pay your balance each month to save you from excessive interest charges. We've become a society conditioned to instant gratification and maintaining the pace of our neighbors, with little regard for the long term.
Do you know about Consumer Protection for credit card user
Most often, worry about the credit card is a stolen card. Such a flight could occur as a result of the loss of innocence of your portfolio, who is the victim of an aggressor or a pickpocket, or less direct methods such as thieves go through trash.
If you have pre-offer credit card (and most of us all the time), make sure you grind if you're not interested, do not simply run these offers in the trash. This is particularly important if you send them a real card, which is also very common. Cut the card in place.
True story: when I worked at Sears in the school, a guy approached me and said, "Hey, I have a lot of my Visa card stolen from the people mailboxes. If I may make a lot of purchases with them, I'll sell the stuff and split the money with you. "I knew that this condition and clearly wanted nothing to do with it. So I told my supervisor and we called the police. They suggested the creation of an injection. When the fraud came into the store and made a lot of big purchases, I (wink wink) ran through the credit card and obtained approved. Since they were, in fact, large purchases, I would go to the loading dock to pick them up. He walked into the police and put the badge and a gun in his face. Sometimes, crime does not pay. Now, do you want to know how much more stupid this episode was from the fraud guy? This happened at the time Scars did not even take Visa!
I heard many people say: "I would never make a purchase on this new Internet thing kind. You must give them your credit card number. "Well, yes, you do. You can also do this every time you go to a restaurant and pay by credit card. 50% of all credit card fraud perpetrated in the face-to-face transactions, such as returning your card to a waitress or a clerk. And yes, the other 50% occurs on the Internet. Let's face it, when the card from your hand, it is someone else. There are machines that can copy the magnetic strip on your credit card in seconds. Even more low-tech is simply an opportunity for someone to copy number, even the little "secret" number to three digits back of the card. This is called skimming.
Credit card fraud costs hundreds of millions of dollars per year and most of this burden is placed on the market, which is why my Visa card at Sears thief wanted my cooperation. Retailers have to protect themselves in order not to be stuck holding the bag. Of course, the merchant receives more than the victims, most consumer prices will in order to compensate. Thus, we all bear the brunt of crime.
Keep your account numbers and credit card phone numbers in a safe place. Keep them in your wallet with your card is not a safe place. Can you say "termination?" As a backup, you can also view your most recent statement, which probably means that the information.
Do not carry your credit cards with you. If you have eight credit cards, you do not need eight hours with you all at the same time, just for that reason. I mean, if your wallet is stolen, you must cancel your cards and it will take some days to get new ones. This could leave you without credit cards, which is not a comfortable position to be in.
If you've left three of them back in your safe, at least you can use them in the meantime.
Another thing to think: some cards can be used as either a debit or credit card. If you make a face-to-face transaction and asks if you want to use your debit card or credit still claim the credit. What reason? With direct debit, you must enter your PIN (Personal Identification Number). This gives people around you, as clerk, or even that one a few meters with the camera phone an opportunity not only to obtain your account number, your PIN as well.
The credit card application process
Literally, everyone receives pre-approved applications for credit card in the mail these days. Remember, the "pre-approved" is a fuzzy-wuzzy sentence. People were asked to complete the application and always turned down, depending on what information is collected about them. Another tactic marketing of some credit card companies is to tease you with low interest rates, but then you agree with one which is much higher than the quotation from your credit score does not meet the criteria to receive the lower interest rate.
You are certainly not limited to the card offers you receive by mail. You can also open the relationship itself. Some online search in May turn offers great credit card that May be worth considering. There are links to them on my website and www.BraunMincher.com. Remember, you may be a client in this process, even if this is your first credit card. Most of these tracks, you go to websites where you can apply on line for immediate approval, although on paper are still very common.
Lenders use a wide range of information to evaluate your application for credit card. This includes information you provide on your application form and information from credit bureaus. I've never heard of an application for credit card asked for financial statements or income verification. You are asked what you win and they take it from there. Yet I would not recommend lying, no one knows where are your data? Add a few zeros to your income to get a credit card with an upper limit and you will find Mr. May IRS knocking on your door to ask what the place.
Lenders use a system known as Risk Based Pricing. This means that their customers pay the APR (Annual Percentage Rate) according to their risk profile. The less they know about you from your application and file reference credit, the lower your credit limit is likely to be in the first instance. Once you become a client, you can look into increasing your credit limit, usually after a minimum of "acclimatization" period of six months.
How to punish your credit card bank
Is your credit card ever made you angry? I mean, really angry to the point where you just want a little revenge for the way you were treated? The only problem is that in May you feel their thank you, as they are somewhat higher. Well, you know what? They are not! No bank has a monopoly on the Green Paper calls money. tuning and show them that what they do not like you the right customer, you are, you will take your business elsewhere in a big way. This point is illustrated in a recent incident in my own personal experience of consumer credit.
I received an excellent offer of credit of one of my credit cards, including a low rate for purchases to maximize this offer, I needed to use all of the credit line by the offer, the deadline. With at least $ 3 in the remaining available credit, and ling in need of a new 27-inch TV, I decided to take advantage of a sale at a discount store.
The TV, the tax is $ 318. When the clerk from my credit card through the register, the transaction was rejected. I knew I was close to the limit, but as I am this credit stuff (I like to play these games for fun), I told the clerk to wait while I gave to the bank a call. I wanted the bank to approve an increase in credit line on the ground so that I can complete the transaction.
I called the customer service phone number on the back of my Lard and talk is an account that I transfer the credit department. I explained the situation and was told that I must give them some information before they could give me the increases result has been a formal request for phone in which I wrong to disclose all details of my financial life to get quick approval.
After about a minute, they came back with a No response! I asked the woman, "Why Are you kidding?" The reason: too many open accounts and too lel'r. I told him to look at my payment record. She said: "You've never been late." Okay, now how about my record of your bank? Again. "Never late. In other words, I have instructed and paid over $ 2000, in time, over the past two years." This is a lot of profit for your bank, and now you say that first time I call to ask for help I can not even get a $ 50 credit line increase? "His reply was: "Not bad, I even asked the director and he said he is out of our hands. Sorry, we could not help them. To which I replied, "That's okay, I'm sure another bank can help." I told him to note in my record that I will pay my balance tomorrow so I'm not such a great credit risk of the bank! "Boy, was I fuming. I had to run to a MAC machine (ATM) for cash to buy TV. Twenty Clerk said something, man, that happened to me last week. Yeah. thank you for the credit. The next day I called another bank on my good credit provides the list and did issue a check to the bank of the crime in its entirety. This should attract their attention. Their profit has ended today, but this story does not end there.
Like a movie with a good end, I learned to rub in the face of the bank. Eleven days later, I received a call from the bank of the crime. Can you believe it, they offered a bid of 5.9% for six months, no annual fee. If I stopped the balance transfer. It seems they received my transfer check and wanted me to empty to keep control of my company in exchange for the so-called offer. I was brilliant! They felt the pain of losing a good customer. and it is wrong.
I asked the woman to the offer if she could, what is happening in my account I asked in particular to a credit line increase and was denied. I explained that when I called and asked for help, they are not there for me. I said: "I can not believe that after all the money. I loaded and returned on time, I am still considering a bad credit risk by the bank.
According to my notes, fees and interest they have about $ 900 a year from my account number and just went to zero. With all that profit and my perfect record, the bank rejected my credit line increase, forcing me to drive to an ATM and return so that I can buy the TV. Then I had to switch to another bank to serve my needs for credit because the bank does not know how to treat its customers.
I thank the woman to listen and asked him to note in my account what I said. I told him that I will accept another offer from the bank in the future, give them another chance. I offer many good choices, and I do not need theirs. While I would normally take. I explained that I needed to punish them as they punished financially mc when I make a purchase.
The moral of this story, the consumer credit of 1 mm from the point of view is that you must have a credit history to be awarded to punish a bank. You need other lines of credit to turn in these situations. I know that your bank will have many credit cards to choose, and you're not treated with respect von deserve, you drop them in a heart beat and move to another bank that wants to profit.
Always check into debt consolidation Organizations
I do not want to tell my saddle, but I used to cut the credit card trap. I had a lot of credit card debt that had become out of control. We made stupid decisions when I was young and lead to a burden of debt.
No matter how hard I tried, my debt still kills my happiness. I decided to find consumer credit counseling services. And hope this can help me get out of debt credit card. After completing the research, I give the floor to one of the advisers to register with their program. Everything seemed great. In fact, they advised me that the creditors of our credit report in a more positive since we have now affiliated with CCCS.
Unfortunately, this is not the case. Each month, we made our schedule for payment of our debt rhymes and began to decline. About 18 months later, we decided to look into buying a house. When we applied for the loan, much to our surprise, the mortgage company advised us that to be a member of the CCCS was a step above bankruptcy. It was like receiving a kick in the head. What happened to the positive aspects of being members of the CCCS.
We were not the case, close to bankruptcy. It was just a springboard to help us get out of debt. We do not receive phone calls harassment or recovery. Now, we have been marked as a bad risk. This has been devastating. I immediately contacted CCCS and to my surprise to discover that our advisor was no longer affiliated with this office. We immediately spoke with a counselor and explain what has been said about us. They were not helpful in any way. At that time, I decided to take matters into my own hands. I wrote a harsh letter to our association with CCCS J1scontimiing their organization.
Then, my husband and I sat down and calculated what should be paid in oil and how long a period of time. We then started to examine the credit reports to see what negative information and it was about how we can repair them.
After one year, we were able to repay our debt (our own) to repair the negative information on our reports and our confidence in purchasing homes. So we were able to turn a horrible situation in a felicitous.
If it were not for the customer service representative at the mortgage company, we never experienced a terrible impact CCCS could do for our future credit.
A word to the wise, always check the debt consolidation organizations very carefully and check with credit agencies report what effect a consolidation of debt agency on May your future credit. If this is your only hope, and then participate in a debt consolidation. But be aware that if they make promises on your credit history from negative to positive, then they are frauds.
This is just a small piece of my saga continues with the credit.
The best credit card offers on the internet
Surfing on the internet. I bet you do it almost everyday. What do you do on the internet? Shopping? News reading? This is opportunity to use the internet find the best credit card offers and you can move your card to low one if you have a chance. How much do you really save by transferring balances from one card to another? It’s easy to illustrate that if your currently pay for credit card debt at 18% interest rate between the lower one at 8%, you will save 10% - over 50% save in this case.
Before you start to find the best credit card, you have to learn some basic about credit card - all loan variables and fees in order to make an accurate comparison. Note that you must pay debt on time for at least 6 months consequently and there are no fees for balance transfer. Remember that all money is the same no matter who Iend it to you. Therefore, the only difference between lenders is the cost of the loan. Cheapest is correct.
The following is full illustrate for make you clearly about it.
If you leave the balance on the 19.8% card and make 6 monthly payment of $60, the amount owed after the 6th payment is $2934.
Another way is that you paid off only $66 of the original principal ($3,000) in 6 payments of $60. You can view that as only one payment going toward paying the principal, and the other 5 payments being the fee. After all, it cost you $360 (6x$60) to pay off $66 of that loan. This means only 18% of the payments went toward the loan and the other 82% of payments were fees. How’s bad?
Now let’s see what happens it we take advantage of the 5.9% offer for the 6—month trial offers. If you transfer the $3,000 balance to the 5.9% card for 6 months and continue to pay $60 per month, your balance after 6 payments is $2,725!
In this case you paid off $275 of the loan which means that 76% of the $360 in payments went toward the Ioan principal, while only 24% went to fees. Great reduce from the first.
So let surfing on the internet to get rid of credit card debt.
7 Habits for eliminate your credit card debt
Many people may say that eliminate credit card debt is common sense: “Use only cash and then no debt occurred”. This statement true but hard to do unless having a lot of money for pay everything.
Rarely to find someone who by house in cash. Most of people apply for loans or credit card for buy goods or services, this is ‘debt’. Is it the worst things to have debt? The answer -doesn’t necessarily imply that you’ve mismanaged your entire financial life.
Once you know that your debt is starting to get as large as the federal government’s, you may want to consider a quick diet for debt reduction.
Step 1: Debt for emergency and the others use cash.
Control your debt by control your spending. If you don’t stop overspending habit, no way for get out of the debt.
Step 2: Evaluate your financial condition and build a plan.
“If you fail to plan, you plan to fail,” that’s true statement. Plan usually helps you, let you know about your debt status, and guide the way to you. It have many steps to get the plan, review every creditor you owe, try to know how much it’s costing you to have each particular debt, and reviewing your payment history with all creditors.
Step 3: Find some money-saving options available.
Ever notice that when you become interested in Living a particular car you suddenly see cars of that model driving around, where before you didn’t see any! Well, those cars didn’t just get there; they’ve been there all along. This is like the eliminate debt options. As you review your debt status closely, you’ll see many opportunities to save money. For instance, that low— rate credit card offers.
Step 4: TAKE ACTION!
As you are the best professor but never do anything in real, you are just a plain professor. Success people are become wealthy by taking action. Learning by doing is the best. Formulate your money—saving plan today and, most important, follow through on it! Simply knowing the route from your home to your destination won’t get you there until you start traveling.
Step 5: Update credit card offers and loan offers information.
Simply check this on the internet or see your email inbox. And save those best rate in too some format file such as Microsoft excel. As you want to get lower rate you can see your own information for make any decision. Also, you need to track otters from your existing credit accounts.
Step 6: Ensure to close credit card account.
When you close your credit card account, you close your options. As long as your current credit card accounts aren’t charging you any fees for inactivity. But holding more card doesn’t imply more wealth. You still use credit cards in case of emergency only. I mean you have more card, you have more options to choose what credit card to use.
Step 7: PAY ON TIME-no matter what it takes!
Paying late for credit card means paying more, including late fees and interest charged. This hurts you suddenly, which would have been better used to reduce your debt, and a strike against your future bargaining power. Paying late also cost high interest rate due to your bad credit, of course you may not able to get the best rate too. In my experience, I pay debt on time for ten years and I got only 8% APR for reward.
Debt management is a continuous so stay on top your situation and keep more of your money!
Maintaining Good credit, just tell to my friend
Yesterday, I talked to my high-school friend. His name is hastalor. He told me that he wants to apply for home loan but he not has a good credit. I answers he immediately, I have some way to help you. There are many things that I told to him and I think it’s useful for told to my reader too. This blog provide some tips technique about get rid of credit card debt and also provide way to build a good credit. The context below is the same as I told to my friend.
The key to maintaining good credit is to follow a few simple rules:
• Pay your bills on time. Pay on time mean that you have ability to pay and also remain your good condition of credit history. Most lenders accept only 30 days late. YOU have to fit the profile of the people who pay their bills on time.
• Don’t spend close to your credit limits, especially overspending out of how much you can afford it. Typically, lenders will compare your credit card balances to the total amount of credit von have available. The more cards you have close to the limit, the more of credit score decrease.
• Cancel any credit cards that you don’t use. If you already have five or six major credit cards (even if they have zero balances), you will have a tough time getting additional credit. Why? Because lenders will think that you already have more than enough.
• Get a copy of your credit report and correct or claim any errors to your credit card company. If it’s correct, you must review what item cause your bad condition of credit card debt.
• Find out how many inquiries there are on your credit report. The more inquiries there are, the less likely you are to get the credit you’re seeking.
When Credit card scammed cheat you
Credit repair Companies always claim that they can reduce your credit problems immediately this is illegal, and if you’re not careful you could take your body into jail. This is scams. But you don’t confuse with the good credit counseling that truly help you to eliminate credit card debt. Scammer always have the sign that let you know about they are scamming. In other words, you are scammed. Two often sign have shown below:
• This fly-by-night, rip-off artists can’t do anything for you that you can’t do for yourself.
• They’ll probably charge you anywhere from $50 to several thousand dollars for something that you can get for free or just a few bucks.
“In many cases,” says the Federal Trade Commission (FTC), “this Scammer takes your money and does little or nothing to improve your credit report. Often, they just away.” Example: Kaezy make credit card debt to $20,000 on five credit cards. A credit repair clinic “consolidated” their debt, reduced their total monthly payments to only $350 per month, and told that it require only four year completing payment. Then they exciting because they will get out of the debt. They send their payments to the credit repair clinic—but lately Kaezy’s been noticing late payment charges on her monthly statements. That is credit repair scam do nothing for them.
“Don’t worry, we’ll take care of it,” is all the company will tell Kaezy and her husband. But they still didn’t do anything. You may follow these tips for eliminate your credit card debt:
• Only three things can improve your credit record: Time, a conscientious effort on your part, and a debt repayment plan.
• Say “no” to any credit repair outfit that suggests you invent a “new” credit identity by applying for an Employer Identification Number (EIN)—which businesses use to report financial information to the IRS—to replace your Social Security number (SSN). The trick is called “file segregation.” It’s not only frowned on by the federal government, it’s also a federal crime to obtain an EIN from the Internal Revenue Service under false pretenses. Plus, you could he prosecuted for mail or wire fraud.
• Beware of credit repair mechanics who ask you to fork out money for their services before they are provided. That’s in violation of the Credit Repair Organizations Act, which requires those companies to tell you in writing about your legal rights. I hey re also supposed to give you a contract that spells out exactly what services they are to perform, how long it will take to get results, and the total cost. Even a “money-hack guarantee” won’t protect you if the company is shady.
“Why spend a lot of money for something that you can do yourself in 30 minutes?” If you want any advice for reduce your debt. The nonprofit Consumer Credit Counseling Service, with 1,440 locations nationwide, is a good place to start repairing your credit. It will guide you in fixing your credit report and, for little or no fee, negotiate with creditors and set up a payment plan you can afford. Call 1-800-388-2227 for the location nearest you, or for on-line counseling.
Credit card debt as the worst case of debt
Do you think credit card debt is the worst case of debt? I think so, as I usually said before. It rise very quickly, but it decrease slowly. Furthermore, in all form of debt, interest rate of credit card is highest.
How you get it: Very easy by spending more than you can afford with plastic credit card.
Leave card at home. Make spending inconvenient. Use credit card for emergencies case only. And the most important, don’t buy anything you can’t afford. If you really want to prevent credit card debt, think of it like pregnancy. It’s fun to get into, but it grows uncomfortable in a mere 9 months, and then it’s around for 18 years or more. The best prevention is not have sex, this is likely not use credit card.
Some points to consider when eliminate credit card debt:
• Take more time to your interest rates. You should always find for a better one that lower rate, and if you can transfer your credit card balances to a card with a lower rate without incurring fees, it’s in your best benefit to do so.
• Befriend with the credit card company. We know that debt collectors can be harassing and unpleasant; remember that if you do for their like your friend, familiarity can help you to negotiate with them. If you don’t have the money to pay them right now, tell them so. And send signal that you can pay it in the future- you don’t default intentionally. Sometimes the credit card company representatives will understand if you explain your situation to them. They may lower your monthly payments for a time or work out a special payment arrangement with you.
What a lot of consumers don’t realize is that you can sometimes get a better interest rate simply by calling the credit card company and asking for it.
This last point is build a debt management plans negotiated by credit counselors. It you have to pay $500 monthly in credit card debt, keep paying $500 even after you pay off the card with the highest interest rate. Apply the extra money to the card with the next-highest rate, and just keep going until all the debt is paid. If you do this, your debt payoff will gain interest rate benefit of high interest rate, snowballing until your last remaining credit card balance gets the entire payment each month.
Story of credit card: part2
Today, to get credit is important. New car costs about $2,000. Of course everyone want to pay in cash for that car but don’t have enough, they need a loan. The rates and terms of that loan will subject to credit history which is filed by credit bureaus for an up-to-date record of all credit users. If you have used credit wisely in the past and repaid previous loans on time, you will be in a favorable position. If not, the more cost involved with higher interest rates.
Not only do banks use your credit history to determine your credit history but also employers, landowner and businesses read this report to access your record of financial responsibility. Today, Credit cards are very important with your life. Travel agencies need your credit card to book flight reservations and reserve hotel rooms. By without a credit card today make your life struggle for travel and other.
If you wish to take control of your money and manage your debt. Like a football player training for a final-round championship, you will need to train certain techniques. Money, interest rate, payments, and cost analysis are subjects that must be explored thoroughly if you want to maximize benefit. If you are not prepared the plan, you could receive hard credit deal. The most important for planning is you must be able to figure out how much you can afford to borrow based on your current monthly bills and spending before entering a loan, which must pay by your income.
Nowadays, computer is the most powerful and takes less time to calculate or processing. You can use computer to calculate information about specific loans either application program or excel.
Story of credit card: part1
In the past, credit cards are new for many people but continuously evolving. The major laws protecting consumers’ rights involving credit were passed in the mid seventies. In the early 1980s. High interest rates, but the credit card industry started to burst. By the mid-1980s, the volume of credit cards issued was break down because high competitive in industry. Banks that wanted catch market share began offering the best deal to consumers for induce them to become their customers. Although the market for credit was growing, most people were using the card as a convenience rather than as loans. Many people can paid their balance each month at full amount so banks get a little money from credit business. Every bank knows that the best customer for credit industry is one who pays the minimum each month and on time.
According to The Nilson Report, credit card debt hit $273.4 billion in 1992 and is expected to rise to $436 billion in 2001. Credit card debt is rising rapidly and banks are looking for their market share so led this industry to high competitive. It is now more important than ever to find an approach for debt management. This is especially true for people living from paycheck-to-paycheck who must dip into their credit sources to make ends meet. United States is quickly becoming a nation of debtors with the average credit card hold per people is almost ten cards! The people who plan their credit spending and can repayment in the full are offered with extended credit limit and better rates. But the others who can not meet their payment have very few options available since banks have already known their bad credit history.
Having debt not only cause a financial trouble but it also give you a tension. The most things of arguments, and divorce, or married couples are money. No money, having debt, also have family conflicts.
Continue reading part 2 Story of credit card: part2
Eliminate your credit card debt, Success Strategies
Today I read some book about the way to eliminate credit card debt. The book named ‘What’s your net worth’. I read through the book and found something interesting. I want to share it for you now.
You will want to take the following steps to reduce or eliminate your credit card debt:
• First, stop spending unnecessarily—and I mean realty stop. Remind yourself of the ESG principles discussed in the previous chapter, and your goal of increasing your net worth.
• Find a credit card with lower interest rates. You can go to BankRate.com and look for credit card offers in your specific city to Cardweb.com, or to CardClues.com which offers a list of cards based on your lifestyle, interests, and credit standing. Armed with this information, you are now ready to negotiate.
• Call the bank that issued your current credit cards, and negotiate for a lower interest rate and reduced fees. Stress that you have been a long-time customer—one who would like to continue working with them Explain that you are trying to work off your debt and that there are other credit cards offering lower rates. See if they can offer you a lower interest rate, one that will stay in effect for a significant period before reverting to the old interest rate.
• Apply for an alternative credit card. If your bank won’t work with you, then look for a credit card that has a low interest rate. Be sure to find out, however, how long the low interest rate will last before it can be increased. If you have debt you know you will have to carry over from one month to the next for several months, 1 recommends you secure the lowest-rate card, even if it has a monthly fee. If you really intend to pay off your new card in full each month, then you should use a no-annual fee card. Also make sure that the advertised low Interest rate applies to debt transferred from your old credit cards; some cards charge a much higher interest rate on transferred debt. Finally, make sure your new card has a sufficiently long grace period—the time between when you charge something and when you must pay your credit card company to avoid interest payments. Believe it or not, some cards’ grace periods are so short that you will owe interest within a very few days of receiving your credit card bill. You can check all this out at Bankrate.com by going into their site, then into the credit card section, and then to “best cards if you carry a balance.” You can apply on-line and get instant approval. Credit Card Network at www.creditnet.com and GetSmart.com allow you to apply for a card on-line as well
• Read the “important disclosures” of any new credit card for which you apply, whether on-tine or off-line. That’s the place where you’ll find all the stuff you’ll want to know as more people (lock to low-introductory rate credit cards, banks have gotten smarter about hidden lees. Look at pre-payment penalties, annual fees, late payment fees, and even balance transfer fees (when you want to move balances to this new card). Close unneeded credit cards, Call or send a written letter to the credit cards companies and request that your cards be closed. If you call, get the elimination number and the agent’s name. Destroying your old cards will keep temptation away and improve your overall credit rating.
• Compare on-line. If you feel a credit card company is inappropriately
Credit card debt trap – try to avoid now
I guest most of your debt had been occurred by using credit cards. One way they tried to cut into their debt was called “credit card hopping”. The thing you should do is looking for credit cards with lower interest payments than your current cards. Even your goal is find the interest rate below 10% but you should think in mind, did these savings really benefit? To illustrate, if you owed debt in $50,000 in credit card debt and charged 18% on interest, you will have amount of interest payment in next thirty year over $100,000. In the other way, shifting all their debt to credit cards charging only 10% interest, and continuing to making only the monthly payments the interest payment in the next thirty year is only $28,000
So consolidating the debt on lower interest credit cards is works. But I have some other way to reduce your credit card debt. Let’s take a look at all the ways to avoid credit card traps.
Making Only Minimum Payments-the great traps
When your bill arrives; you open it and point to the minimum amount due. Yes! I can pay it at minimum amount. But this is the biggest mistake you and make with credit cards. Minimum payments can extend your debt period and you have more cost in interest rate.
I will show that If you make and minimum payment what affect to your debt period. I start that you have a credit card debt balance of $7,000 on interest rate of 17%. How long do you think to eliminate all of debt if paying minimum of 2% each month? Four years? Seven years?
Don’t surprise if I tell you that almost 45 years to pay off the only $7,000 debt. And you would end up paying about $15,000 in interest on your principal of $7,000.
Max Out Monthly payment- pay as much as possible
If you possibly can, always pay your credit card bills most for avoid any interest payments in the future. In the example above, if you simply continue $1,400 payment per month, you would have debt period only seven years with $5,300 in interest. $5,300 or $15,000 in interest? It up to you.
If you doubt whether to use your bonus to pay off debt or invest in the stock market, you should try the Financenter.com site that can help you about tools for answer this question, ‘Should I pay off debt or invest in savings?”
Your Kids
Today, credit cards are a part of living, but is it right to allow your children to have them? I think credit card unnecessary for children and this is so risky to do that because children tend to spend by not thinking what they ‘want’ or ‘need’. How do you encourage your children to be responsible with credit in the process? One good way is to share your credit card bills, let them pay it themselves. Then they will learn about credit card more, the grace period, and the minimum payment requirements. Use calculators to highlight interest charges.
Check it up! On the internet
In recent year, the trend of money management is arisen, credit card surfing. I believe that you ever receive E-mail about a good credit card offer or lower rate in interest. Now it’s time for surfing!
If you can, try to consolidate all your credit-card debt onto one low-interest card. if have the benefit of savings in interest payments, you will have to make only one simple payment each month. If you can’t consolidate all of your credit card debts, you must payoff the highest interest first or consolidate your debts into the new card. You can order a debt eliminator report from Myvesta.org. It will show you, month-by-month, and the fastest way to get out of debt using the funds you have. Before consolidate debt to a new card, you should read all of the rules and regulations regarding balance transfers for your new card, and it might take time about three months to complete; and when you wait the process to be complete, reduce your highest interest rate credit card that the thing you should do.
What to do if I can’t find credit counselor?
You can manage excessive debt by consolidating the debt to one bulk of loan in the lower rate. Tax laws give benefit for people that have own equity by take home equity loan to consolidate credit card balances, auto loans, and other personal debt. Your payment tends to be decreased, because you have to pay just the monthly interest to stay on. Unfortunately after consolidating, many people think them safe for their debt and take more credit card debt, and they are facing a lot of bills again. This is the worst cycle.
In other way, you can talk to a credit counselor. Legitimate credit counseling agencies charge you a fee, but they won’t guarantee about eliminating on your record. They will help you build a payment schedule with your credit card company and provide some tools that can gathering information of your debt and track your spending in the future. These companies can negotiate with your creditors for reduce your payments and lower interest rates. The process is you pay a monthly to the counseling agency and then they distribute the money to your creditors. Some of the 1,300 Consumer Credit Counseling Service Centers charge a nominal start-up or monthly fee for their services, while others receive a portion of the debtor’s payments to creditors as compensation for their services.
To find a good credit counselor, you can see National Foundation for Credit Counseling website (www.nfcc.org) or the Association of Independent Consumer Credit Counseling Agencies website (www.aiccca.org). Make sure you have understanding of any fees involved, check with your local Better Business Bureau to determine whether the agency you choose has a good customer service record.
Do your best for find credit counselor that suitable for you.