Insightful Tips For Eliminating Bad Credit

Bad credit also known as subprime credit in the mortgage industry, will
affect your pocket book in more ways than making it more difficult for you
to get a home loan. Not only will you have a higher interest rate on your
mortgage but it will also translate into higher interest rates on car loans,
store credit cards and the well-known bank issued credit cards. In addition,
poor good credit can even prevent you from getting some jobs.
As a result, it is clearly important to improve your credit if it's fallen
into such a condition.

You're probably thinking, sounds good, "but how do I do it?"
Remember, developing bad credit didn't happen overnight and you can't
improve overnight either. However, it's not as difficult as you might think
if you follow a few simple rules.

First and foremost, you must stop spending more than you can afford. Surely
a common sense principal but not followed by millions of Americans.

Next, stop making your payments late. Late payments show up on your credit
report as 30, 60, 90 and 120 plus days late and each time this happens it
goes into the formula for calculating your credit score and results in a
lower score.

If your debt has gotten out of control you need to seek credit counseling or
even bankruptcy. Neither is a bed or roses but if you're to that point your
need to bite the bullet, humble yourself and take the plunge. If you can't
make the payments and the interest rates on your credit cards has already
been raised to 20 or 25 percent these may be your only options.

Setup a budget or your monthly expenses and keep track of everything. If you
don't know how much it costs to live each month compared to your income
you'll never get your financial house in order. Once this is done take a
look at where you can cut back. Hey, nobody said this would be easy but once
you make a few changes, exercise a bit of financial restraint you'll be
amazed at how much additional cash you can free up each month to pay down
your bills.

Another key ingredient to remember is that regardless of how bad your credit
has gotten it doesn't take the 5, 7 or even 10 years like you always hear
about to fix it. Follow this simple advice and within 2 years you can have
your credit back to good or even very good. Of course, a prerequisite is
that you get your current bills under control.

Ok, all you need is two credit cards. Use one to buy groceries, the other to
buy gas and then pay them off at the end of each month. Simply switch
between the two for "emergency" purchases but always try to pay them off at
the end of each month or keep a very low balance. Use cash to buy everything
else. You only need two credit cards or what the credit industry calls
"trade lines" paid on time and preferably paid in full each month to really
raise your credit score. So follow the two credit card rule above and even
if you just had a bankruptcy or you've gone through credit counseling,
within a few short years you can have your credit score back to where it no
longer hurts.

Last but not least, get a copy of your credit report from the 3 major credit
reporting agencies: Experian, TransUnion and Equifax and then take a close
look at them to make sure they are correct. Many people who have gone
through credit problems have credit reports that haven't been updated
correctly to reflect their current status with creditors, even after they've
paid off bills or made special arrangements with their creditors. The bad
information can be on their reports for years hurting their credit score, so
make sure you get a copy of credit report after you've done your part in
putting your financial house in order. You can simply type in the name of
the above credit reporting companies in any of the major search engines to
find their home pages.

Better yet, go down to your local bank or mortgage company and apply for a
loan (even if you're not interested at this time in getting a loan) and ask
them for a copy or your credit report (after your initial meeting and
they've called you back).
However, make sure it's a tri-merge credit report, which includes
information from all 3 credit reporting agencies or your credit report won't
be accurate.

About The Author: Visit http://www.aneyeondebt.com or
http://www.aneyeondebt.com/links.html or
http://www.aneyeondebt.com/sitemap1.html for more information on debt relief
options.

Get Rid Of Your Credit Card Debt And Start Investing

Eliminate credit card debt from your life, and you will eliminate a lot of
problems from your life. It is very easy to be trapped by credit card debt;
everybody loves that plastic.
Getting out is a different story. Yes, it is complicated, but it is not
impossible. You may only need a little help in doing so.

If you do not have too much credit card debt, the first thing you may want
to try to do is take advantage of zero interest rate offers. Pay down your
interest rate debt and put the balance on a zero rate card, then start to
pay off the principal. This will work if you have good credit, since the
credit card companies will make you this offer. Just remember that this is
an introductory offer, usually for about six to twelve months; if you make
large payments on this card, you will be able to pay the whole loan off
during this period and be done with credit card debt altogether. If your
credit card debts are large, this solution will not work, since you will not
be able to make large enough payments to pay the debt off before the end of
the introductory period.

The solution if you have high credit card debts is to use is either a home
equity credit line, or obtain the services of a credit counseling company.
You will choose a home equity line of credit if your credit card balance is
very high and you are paying high interest rates on those balances. By using
your home as the collateral for a loan, you will obtain an interest rate
which is much more favorable than the high credit card interest rates. You
then pay off the balances on your credit cards and just pay the mortgage
bank for your equity loan. The other option to consider is the services of a
credit counseling firm or a credit elimination firm. The role of a credit
counseling firm is to negotiate with your creditors to lower your monthly
payments to make them affordable for you. The first thing they will try to
do is get the interest rates lowered so that you are paying off part of the
principal each month, instead of just paying interest. A credit elimination
service should really be considered as a last ditch effort if you consider
your debt an extreme case. These companies will try to negotiate lower
balances on your debt, so you don't have to pay off as much and you can get
out from under. However, since the credit card companies are not getting all
of their money, you will not be considered a good risk for the future.

So you see you can get rid of your credit card debt. It may take some
research, a measure of determination and a lot of phone calls, but it is
much better than being drowned in those bills each month because you only
pay the minimum.

About The Author: Focusing on informating about investing, Johnathan Bakers
writes articles principally for http://www.debtania.com . You can find his
articles over at http://www.debtania.com/howtoeliminate.html and other
sources for eliminating credit card debt knowledge.

The Best Credit Card Offers

Credit cards had been one of the most widely used forms of paying various
types of bills. This may range from regular purchases, to bills payment
transactions in large amounts.

This is different from debit cards in the sense that the former may purchase
in its behalf even if the owner does not have a corresponding amount
credited to the card.

Generally, the issuer of the card provides a credit limit. The predetermined
amount is the maximum allowable transaction to be made by the consumer or
owner of the card.

Credit card companies compete for the fast growing market by offering
various promotional strategies such as the following:

1.Interest rates

Credit card companies try to offer the lowest possible interest rate per
payment due. Said interest rate may range from 1.2% up to 5%.

2.Minimum amount due

Every month, the credit card company has a predetermined percentage of
amount due based from the current charges or purchased made by the owner of
the card.

Failure to pay the said minimum due would result to additional charges on
the part of the owner/consumer.

3.Waiving of dues

The usual practice had been that of waiving the first of the cards' annual
dues.

Other offers had been cutting off one or two billing periods without any
additional charges if the consumer did not pay for the period covered by the
promotional advertisement.

Should the consumer pay the whole amount charged to the card before its
billing period, the interest due from the balance is likewise waived

4.Extension card

Supplemental cards are usually offered for the cardholder to enable them to
extend the use of the card for any family member (or friend) to whom they
would want to grant access to its use.

5.Balance transfers

Most credit card companies offer a very low interest rate charging for any
balance transferred to their card from that of another one.

The catch is to encourage consumers to transfer all the balance charges from
their current card to their very own card company.

Payments are arranged on a predetermined period of time. The disadvantage of
this is that if the consumer decides to pay the whole balance earlier than
the stated date, no rebates would be granted.

Consumers that are not wary of their purchases may find themselves in
immense debt if payments are foregone or if the individual makes purchases
more than he or she is capable of paying at the end of the billing period.

Missed payments would result to finance charges that would be added on top
of the month's interest charges. Thus resulting to higher charges.

It has been said that the rampart use of the credit card system had resulted
to the Great Depression of the 1920's.

The rise of the automobiles during this period resulted to a great increase
in the demand for fuel. To accommodate the large purchases, fuel companies
accepted credit payments so as not to loose transactions to their
competitors.

And the rest, as they say, is history.

Still, if the individual is wary and cautious when making purchases using a
credit card, one may find that he or she may use it for his or her own
convenience.

Below are some of the advantages of using a credit card:

1.Low risk of loosing cash.

Large purchases may be made without having to carry the money around.

2.Readily available

Emergency purchases, such as that of medicines, may immediately be
accommodated at any store that accepts credit payment.

About The Author: Mario Churchill is a freelance author and has written over
200 articles on various subjects. For more information checkout
http://www.supercreditcardoffers.com and
http://credit-card-offersonline.info.

Unbelievable Credit Rate Hikes For Poor Christmas Shoppers

Incredible credit rate hikes lie in store for the poor and vulnerable who
wish to borrow to make their festive season a happy and memorable one. The
festive are generally a time for genuine profit for all businesses and in
fact, some shops will admit to making most of their profits around this
time. This includes credit card companies, banks and above all loan sharks.
For the lucky ones who have some form of savings or have saved towards this
season, there are no worries.

However, for those who have no savings but intend to borrow to enjoy the
festive season, things can get tricky if not costly, much later one. First
of all, there are many spend-now-pay-later schemes not to mention
buy-now-pay-later offers that saturates the market this season. In fact, one
UK company, Shopacheck, is offering vouchers from major brand name shops and
those interested do not have to pay a dime until the New Year.

Sounds like a very good idea at first, as you can instantly obtain all your
festive hampers without breaking any sweat. All you need to do is spread the
cost over a certain period. Now here's where the catch is: sky-high interest
of historic proportions. For instance, a borrower of 400.00 ($790.00) will
end up paying around 550.00 ($1050.00) this well over 70% interest! Someone
repaying this at a rate of 5.00 ($9.00) a week will not finish paying for it
by next Christmas.

In addtion, we should not forget that voucher companies like Shopacheck buy
theie goods at wholesale prices. Thus, not only are they making money
reselling them, they are raking in even more profits with the
spend-now-pay-later scheme. This is in the wake of the collapse of a well
known Christmas hamper company, Farepak, just before Christmas, which left
some unease in these Christmas Clubs who seem to think of themselves rather
than their clients who save hard-earned money throughout the year in the
hope of celebrating the Holidays in style.

Needless to say, the big brand-name shops whose vouchers are being sold in
this scandalous way have sought to distance themselves. Some say Shopacheck
is buying it through an agency, others deny being connected to them at all
while some have offered to investigate this further. As for Shopacheck, they
claim they are not doing anything against the law and that customers know
exactly what's on offer as they do not hide anything.

Without a doubt, this proves that the onus is on the consumer to be weary of
any credit provider especially during the festive season when one is wont to
forget the details and consequences in the whirlwind of activities.
Borrowing can be a good idea especially if you are able to pay it off within
a short time. Missing payments, on the other hand can severely affect credit
rating and therefore your ability to borrow for important things like a home
or a car.

To reduce debt or avoid it altogether this season can be tricky if plans
were not made earlier. Nevertheless, it is best not to use credit card for
festive shopping unless you have to. Debit cards are far better. Should you
use your credit card, then it will be good to pay it off when the next bill
arrives or as quickly as possible to avoid paying any interest. There is
still hope however, if your credit is totally messed up, credit fix is
available as the last resort to improve credit history.

About The Author: http://www.cheap-credit-cards.org
http://www.cheap-credit-cards.org/credit-cards
http://www.cheap-credit-cards.org/insurance

Applying For A Platinum Card, Things To Watch Out For

With the relatively easy availability of credit today, more can get plastic
cards, including students and even those with bad credit ratings.

A credit card is a simple way of getting a credit rating and used smartly,
can help provide flexibility in spending and even bonuses like cash back
offers or travel credits.

To obtain a gold or platinum card you will need to have a higher annual
income. This higher level of income is generally needed to qualify for these
cards contrary to standard credit cards.

These cards can offer several additional benefits such as free travel
insurance, free purchase protection, savings on travel and/or hotels and
free extended warranty for additional year(s) on many household appliances.
They may also offer higher credit limits and let you access to a higher
amount of cash on a daily basis. The possibilities are endless for the owner
of the card.

While carrying a gold or platinum card once give a certain prestige,
nowadays there is very little difference between them although some credit
card companies charge a fee for a Gold card, for example.

If you can afford to have a platinum or gold card, use Internet to help you
get information. Browse around as many of the major credit card companies as
you can and seek out the best possible rates. You have to ensure that a deal
really suits you. You can find a credit card directory at
http://www.platinumaz.com/

There are numerous types of platinum cards. There are cards with frequent
flyer programs for those who travel a lot.
Business cards are ideal for those with good credit history and regularly
charge business expenses to their personal credit card. Those who would like
to earn rebates can choose some rewards card.

What's more, you can find very specific cards for your very special needs or
buying habits, for example if you are frequent guest of Intercontinental
Hotels, only interested in Sony rewards or actually are a coffee drinker.

The credit card companies don't just make their money on unpaid balances. Be
careful how or where you use your card, because you may be hit with
unexpected charges, so it's important to read all the terms and conditions
thoroughly of the card before you apply for it.

There are some things that you also have to watch out for. For example, be
wary if you are asked to pay up-front fees when the promotion or ad without
mentioning that there may be additional costs. Find out the total cost
before applying for this type of card.

Be suspicious about any promises to erase bad credit or to secure major
credit cards regardless of past credit problems.
Think twice about any offer to get "easy credit."

Marketers of 'gold' and 'platinum' cards often claim it's easy to get major
credit cards after using their cards for a while.
In fact, the only major cards you usually can get through these marketers
are secured.

About The Author: Fruzsina Csery is a freelance copy writer.
She occasionally writes for http://www.platinumaz.com/

Slow And Steady Is The Best Way To Clean Up Bad Credit

A bad credit problem can influence your every waking - and sleeping - hour.
There are few things more worrying than wondering how to make ends meet, and
when your outgoings, comprising loans, cards, hire purchase deals and such
like, are biting huge chunks out of your income, it really can look like an
impossible thing to sort out.

One major problem is denial. Although you're well aware of the debts
intellectually, there's an emotional block on them. So to start with, write
down all your outgoings, what are their values and how long you have left to
pay them. This, of course means everything. You have to be honest with
yourself.

It could be time to consider a consolidation loan. You can take out one big
loan with a long repayment term and pay a small amount off every month. For
the first few months it might look like nothing is happening, but persevere
and you will eventually see that your payments are taking larger and larger
bites out of the consolidation loan. Hopefully by now you'll have cut up
your credit cards, because the last thing you want is to be paying off more
debts. Self-discipline is key. But the interest will be a whole lot more
manageable.

You can also look at what else you're spending your money on.
It's amazing how much of our money we waste on needless purchases. It's also
a good time to start shopping around.
Prices of essential items vary widely from store to store; saving five pence
on a tin of food might not seem much, but remember, this is for the
long-term, and you'll be making savings all along. Keep all your change in a
jar and once every few months put it in bags and deposit it in your bank
account.
Wherever possible, buy in bulk - either from a wholesaler or by using
supermarket multipacks or two-for-one offers. And if you're insisting on a
holiday, remember what a beautiful country you live in!

So the sequence is: accept, calculate, consolidate, economise.
You have to change your mindset completely, and accept that your recovery
will take time and that these seemingly small savings will, over several
years, lead to a new start. You won't have to change your lifestyle too
much, just do the same things in a different way.

About The Author: Clive Willis is a recognized expert on all personal money
matters. His opinion is featured on many sites including the Crazy Credit
website - a guide to the personal credit world. http://www.crazycredit.co.uk