July 28, 2010
July 27, 2010
July 26, 2010
July 25, 2010
July 24, 2010
July 22, 2010
Bankruptcy Credit Card: How Choose One
R. Lawrence Anderson asked:
There are many credit card issuers out there promoting what some people refer to as “bankruptcy credit cards” – that is, credit cards for people who have a bankruptcy on their credit report.
Of course, these credit card issuers target individuals with poor credit in general, not just those with bankruptcies – but for the purpose of this article, we will use the term “bankruptcy credit card”.
Most of the bankruptcy credit cards you see advertised are secured credit cards. If you are not familiar with a secured credit card, it’s “secured” by a special savings account you establish with the issuing bank which acts as collateral for the line of credit you receive with the bankruptcy credit card.
So how do you go about choosing a “secured” bankruptcy credit card? The first step is to come up with a list of criteria. In After Bankruptcy Credit Solutions I cover eight criteria you can use. When I apply the eight criteria, only a handful of bankruptcy credit cards are left – so it narrows it down to the better ones quickly.
There’s not enough space here to cover all eight of the criteria I use when selecting a bankruptcy credit card, so let’s focus on a few of them as a starting point:
1. Has Reasonable fees
What’s reasonable? Well, while researching some bankruptcy credit card issuers I came across one that charged a $120 application fee. Compare this to a number of others that charge no application fee at all! But that’s only part of the picture -you also want to make sure the bankruptcy credit card issuer offers an interest rate that is competitive with other issuers. This where comparison shopping, and making sure you are aware of every fee the card issuer charges, is critical.
2. Reports to the major credit reporting agencies
This is very important – if you want to rebuild your credit history, make sure the issuer of the bankruptcy credit card reports to the major credit reporting agencies: Experian, Equifax, and Trans Union. You also want to make sure the information is reported a certain way – in After Bankruptcy Credit Solutions, I go into detail on this.
3. Reports credit limits
Why is this important? If the bankruptcy credit card issuer does not report your credit limit, this could lower your credit score with some credit scoring models because they may automatically assume you are at your limit – even if you are using only 10% of the available credit line.
We’ve only touched on three of the eight criteria I cover in After Bankruptcy Credit Solutions. But, at the very least, it should give you a starting point when it comes to choosing a bankruptcy credit card.
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Copyright
There are many credit card issuers out there promoting what some people refer to as “bankruptcy credit cards” – that is, credit cards for people who have a bankruptcy on their credit report.
Of course, these credit card issuers target individuals with poor credit in general, not just those with bankruptcies – but for the purpose of this article, we will use the term “bankruptcy credit card”.
Most of the bankruptcy credit cards you see advertised are secured credit cards. If you are not familiar with a secured credit card, it’s “secured” by a special savings account you establish with the issuing bank which acts as collateral for the line of credit you receive with the bankruptcy credit card.
So how do you go about choosing a “secured” bankruptcy credit card? The first step is to come up with a list of criteria. In After Bankruptcy Credit Solutions I cover eight criteria you can use. When I apply the eight criteria, only a handful of bankruptcy credit cards are left – so it narrows it down to the better ones quickly.
There’s not enough space here to cover all eight of the criteria I use when selecting a bankruptcy credit card, so let’s focus on a few of them as a starting point:
1. Has Reasonable fees
What’s reasonable? Well, while researching some bankruptcy credit card issuers I came across one that charged a $120 application fee. Compare this to a number of others that charge no application fee at all! But that’s only part of the picture -you also want to make sure the bankruptcy credit card issuer offers an interest rate that is competitive with other issuers. This where comparison shopping, and making sure you are aware of every fee the card issuer charges, is critical.
2. Reports to the major credit reporting agencies
This is very important – if you want to rebuild your credit history, make sure the issuer of the bankruptcy credit card reports to the major credit reporting agencies: Experian, Equifax, and Trans Union. You also want to make sure the information is reported a certain way – in After Bankruptcy Credit Solutions, I go into detail on this.
3. Reports credit limits
Why is this important? If the bankruptcy credit card issuer does not report your credit limit, this could lower your credit score with some credit scoring models because they may automatically assume you are at your limit – even if you are using only 10% of the available credit line.
We’ve only touched on three of the eight criteria I cover in After Bankruptcy Credit Solutions. But, at the very least, it should give you a starting point when it comes to choosing a bankruptcy credit card.
================================================================
Copyright
July 20, 2010
July 18, 2010
Credit Card Transfers – Uncover the Cost of Balance Transfer Offers
Morgan Hamilton asked:
Are you in the market for credit card transfers? Without question balance transfer offers hold the potential for cardholders to realize substantial savings. Note that I used the word potential here. When contemplating transferring a balance from one card to the next, there are several factors to take into account.
First and foremost you are going to want to familiarize yourself with the terms of the offer. You can do that by reading the disclosure statement, which is sometimes also referred to as the terms and conditions. There you will find all the important details including information about the interest rates, fees and payment periods, credit limits, etc.
Oftentimes credit card transfers will be advertised with a 0% or low APR introductory rate. These will be offered for usually 6 months and sometimes up to 12 months. They can be a great deal if you are currently carrying a balance on a high interest rate card. But you also must look past that as well.
When I say look past that I mean you have to know what the interest rate is going to be when the introductory rate expires. If you are going to aggressively pay down your current balance then finding a 0% APR or low interest rate credit card transfers is a fantastic way to pay off the principal while being charged little or no interest.
However, many people make the mistake of either forgetting or not realizing that the predetermined interest rates on the offer will kick in when the introductory period ends. Be sure that you know exactly what those rates will be before you transfer your balance.
Be honest with yourself and question whether you will be able to pay off your balance in full before the introductory period expires. If you do not believe that you will be able to pay it off then you have to make sure that the interest rates will be affordable and not excessively high.
Compare those rates with what you are paying now and that will help you determine if doing a balance transfer is in fact in your best interest. You also must take into account any and all fees that are charged such as annual fees, late fees, and so on. All these factors determine how much your credit is going to cost you.
And finally, and this is very, very important, you must know what the balance transfer fee is going to be. Most major issuers now charge a fee to transfer balances from one credit card to another. It usually ranges in the neighborhood of around 3% of the total to be transferred but it can be higher or lower depending upon the offer.
Jesse
Are you in the market for credit card transfers? Without question balance transfer offers hold the potential for cardholders to realize substantial savings. Note that I used the word potential here. When contemplating transferring a balance from one card to the next, there are several factors to take into account.
First and foremost you are going to want to familiarize yourself with the terms of the offer. You can do that by reading the disclosure statement, which is sometimes also referred to as the terms and conditions. There you will find all the important details including information about the interest rates, fees and payment periods, credit limits, etc.
Oftentimes credit card transfers will be advertised with a 0% or low APR introductory rate. These will be offered for usually 6 months and sometimes up to 12 months. They can be a great deal if you are currently carrying a balance on a high interest rate card. But you also must look past that as well.
When I say look past that I mean you have to know what the interest rate is going to be when the introductory rate expires. If you are going to aggressively pay down your current balance then finding a 0% APR or low interest rate credit card transfers is a fantastic way to pay off the principal while being charged little or no interest.
However, many people make the mistake of either forgetting or not realizing that the predetermined interest rates on the offer will kick in when the introductory period ends. Be sure that you know exactly what those rates will be before you transfer your balance.
Be honest with yourself and question whether you will be able to pay off your balance in full before the introductory period expires. If you do not believe that you will be able to pay it off then you have to make sure that the interest rates will be affordable and not excessively high.
Compare those rates with what you are paying now and that will help you determine if doing a balance transfer is in fact in your best interest. You also must take into account any and all fees that are charged such as annual fees, late fees, and so on. All these factors determine how much your credit is going to cost you.
And finally, and this is very, very important, you must know what the balance transfer fee is going to be. Most major issuers now charge a fee to transfer balances from one credit card to another. It usually ranges in the neighborhood of around 3% of the total to be transferred but it can be higher or lower depending upon the offer.
Jesse
July 16, 2010
Clear Your Credit Report Quickly – Simply Stunning Success Strategies
Tina Bardo asked:
In this article we are going to quickly look at some easy ways to fix your credit report. For many people with bad credit, their lives are a continuing cycle of high interest rates, fewer financial opportunities and many missed chances to succeed in our materialistic plastic culture and community.
It is unfortunate then, that so many don’t realize that there are very simple laws available to you right now, designed to ensure that your credit report is accurate, and not unduly punishing for past problems in the financial arena.
Simply stated, the Fair Credit Reporting Act (FCRA) and several other laws regarding debt and its repayment were enacted due to the lack of oversight many credit bureaus faced when reporting your credit worthiness to a potential lender. After a veritable avalanche of complaints (the FTC said that there were more consumer complaints about the credit bureaus than all of the other trade associations combined!) Congress stepped in and formulated laws that serve to protect you still. These laws have been amended several times since, and even further protections have been enacted during the Bush administration, proving once again that consumers have benefited dramatically from having them in place.
What do they provide, you may ask? Simple. They give you the right to dispute ANY information you believe to be inaccurate in ANY way. They give you the right to a statute of limitations on how long information can be reported as delinquent. They put firm rules for the “aging” of debts – i.e., when did the debt first go delinquent? They provide a clear cut channel to facilitate the process of filing a dispute with the bureaus if you feel you have been wronged. They acknowledge the right and existence of credit repair companies, and SO much more that it would take far more space than this article allows to detail.
Suffice it to say, the FCRA and the tangential laws that involve your debt (such as the Fair Debt Collections Practices Act) gives your rights and pathways to fix your credit legally in a jiff should it need it! It is unquestionably the #1 “secret” resource that all of the fat cat lawyers and credit clinics refer to when advocating in your behalf. And of course – if you need to fix your credit, simply understanding the rights afforded you under this sweet legislation is 75% of the battle. The rest is simply taking some action and getting to work! Good luck.
Lorraine
In this article we are going to quickly look at some easy ways to fix your credit report. For many people with bad credit, their lives are a continuing cycle of high interest rates, fewer financial opportunities and many missed chances to succeed in our materialistic plastic culture and community.
It is unfortunate then, that so many don’t realize that there are very simple laws available to you right now, designed to ensure that your credit report is accurate, and not unduly punishing for past problems in the financial arena.
Simply stated, the Fair Credit Reporting Act (FCRA) and several other laws regarding debt and its repayment were enacted due to the lack of oversight many credit bureaus faced when reporting your credit worthiness to a potential lender. After a veritable avalanche of complaints (the FTC said that there were more consumer complaints about the credit bureaus than all of the other trade associations combined!) Congress stepped in and formulated laws that serve to protect you still. These laws have been amended several times since, and even further protections have been enacted during the Bush administration, proving once again that consumers have benefited dramatically from having them in place.
What do they provide, you may ask? Simple. They give you the right to dispute ANY information you believe to be inaccurate in ANY way. They give you the right to a statute of limitations on how long information can be reported as delinquent. They put firm rules for the “aging” of debts – i.e., when did the debt first go delinquent? They provide a clear cut channel to facilitate the process of filing a dispute with the bureaus if you feel you have been wronged. They acknowledge the right and existence of credit repair companies, and SO much more that it would take far more space than this article allows to detail.
Suffice it to say, the FCRA and the tangential laws that involve your debt (such as the Fair Debt Collections Practices Act) gives your rights and pathways to fix your credit legally in a jiff should it need it! It is unquestionably the #1 “secret” resource that all of the fat cat lawyers and credit clinics refer to when advocating in your behalf. And of course – if you need to fix your credit, simply understanding the rights afforded you under this sweet legislation is 75% of the battle. The rest is simply taking some action and getting to work! Good luck.
Lorraine
July 13, 2010
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