If you are struggling to pay off accumulated debt from more than one credit card, you are certainly not alone. Credit cards are too readily available and so when you reach your limit on one card, it is tempting to apply for another one. So many people have at least three different credit cards and each have an overdue balance just waiting to be paid.
However, there is a way in which you can consolidate all the debt you racked up on each of your credit cards, and it is not as difficult as you might first imagine.
How to Consolidate Credit Card Debt Consolidating your credit card debt is a good idea if you also exercise restraint and discipline in not accumulating debt on your cleared cards. All you have to do is apply for a card that has a 0% balance transfer deal. Once you receive the card, you then transfer the balance from all of the cards having an overdue balance to the new card you with a lower rate. That way, they will be paid off and you will have so many months to pay off the balance from your newly acquired card.
However, while it may sound simple, there are some points you should keep in mind. The first is whether the credit card you are transferring the debt to has any rules regarding the amount you can transfer. For example, you may only have a credit limit of $500 and if your debts mount up to $1500 then you could well be charged interest and other fees. Most credit cards are strict when it comes to going over your agreed balance and so it is a much better option to stay within your limit.
Another thing to watch out for is whether there are any rules on how many credit card balances you can transfer onto the card. Some companies may have set a limit of just one card and so it is better to compare offers for balance transfer cards carefully.
Finding a Balance Transfer Deal Due to their popularity, balance transfer deals are actually becoming limited as lenders constantly lose out on money. So actually finding a good balance transfer deal can be hard work. You also need to look for a deal which has a good interest rate. This is because if your balance is quite high, you are unlikely going to be able to pay it all off within the certain time period. This means that you need to know how much you will be charged if you do go over the balance transfer deal period.
Overall, balance transfer deals are a great way to consolidate your credit card debts. However, once you have changed them over you should then be careful with what you spend. If you spend as you usually would and get the balance back up on all of your other cards, then once again you will find yourself seriously in debt. By having your debt under control you will experience less of one of the most strenuous types of stress - financial stress, by focusing only on having to pay one lower bill rather than several higher bills from several credit issuers.
Thursday, August 2, 2007
How Credit Cards Can Help the Small Business Entrepreneur
Are you worried about the urgent cash payment you need to make to your dealer for the bulk of raw material you ordered? Does it happen with frequent regularity? Business credit cards may be good option to manage you business expenses.
Credit cards are issued to the owner to pay his/her monetary liabilities. These cards contain a monetary value which is reduced each time the card is used to pay off a liability. There are many business credit cards available catering to a business owner's particular need.
There are special term business credit cards available in the markets which have proved to be beneficial for many small business enterprises. Here are a few options available for you if you own a small business firm.
• Platinum Business FreedomPass Credit Card from OPEN- these cards do not charge any annual fee from the owner and also offer 5000 points on their first purchase. Other than this they also offer a lot of discounts along with the usual service. It is a very good option for a small business team as it covers various liabilities like car rentals, flight charges and travel expenses.
• The Advanta Platinum Business Custom Card- this business credit card offers the user an introductory 0% annual APR for 15 months. The APR is 7.99% fixed thereafter. There is also a generous 5% cash back for purchases or an option to receive travel awards.
• Business Line Card from OPEN- this credit card is more like a business loan. Small business entrepreneurs can make use of this scheme for their business expansion. Their value can vary according to customer choice and preference. There is no need for any application fees. You can make use of the amount with electronic cards issued by the bank. Like an ordinary loan scheme, it follows the same procedure; the only difference lies in the transaction process which mainly makes use of electronic cards/credit cards.
• Discover Business Cards- these cards offer cash bonus to the user. The user can enjoy a 5% cash bonus for office supply purchase, 2% on gasoline purchases, an 1% on al other purchases. This card also has the added benefit of fee-free PurchaseChecks to pay merchants who do not accept credit cards.
The list does not end here as there are plenty of credit card schemes available for small business owners.
For the home- based business entrepreneur, business credit cards are very useful as they come in handy when any monetary transaction need to be made immediately for inventory or preparations for critical selling season in your business cycle. Home-based firms make use of e-commerce processing on a routine basis. While finalizing a deal credit cards are used to pay off bills to secure the deal promptly so opportunities for profit are not lost. So whether you run a home-based business firm or a conventional "brick an mortar" a business credit card can be an immense help.
Credit cards are issued to the owner to pay his/her monetary liabilities. These cards contain a monetary value which is reduced each time the card is used to pay off a liability. There are many business credit cards available catering to a business owner's particular need.
There are special term business credit cards available in the markets which have proved to be beneficial for many small business enterprises. Here are a few options available for you if you own a small business firm.
• Platinum Business FreedomPass Credit Card from OPEN- these cards do not charge any annual fee from the owner and also offer 5000 points on their first purchase. Other than this they also offer a lot of discounts along with the usual service. It is a very good option for a small business team as it covers various liabilities like car rentals, flight charges and travel expenses.
• The Advanta Platinum Business Custom Card- this business credit card offers the user an introductory 0% annual APR for 15 months. The APR is 7.99% fixed thereafter. There is also a generous 5% cash back for purchases or an option to receive travel awards.
• Business Line Card from OPEN- this credit card is more like a business loan. Small business entrepreneurs can make use of this scheme for their business expansion. Their value can vary according to customer choice and preference. There is no need for any application fees. You can make use of the amount with electronic cards issued by the bank. Like an ordinary loan scheme, it follows the same procedure; the only difference lies in the transaction process which mainly makes use of electronic cards/credit cards.
• Discover Business Cards- these cards offer cash bonus to the user. The user can enjoy a 5% cash bonus for office supply purchase, 2% on gasoline purchases, an 1% on al other purchases. This card also has the added benefit of fee-free PurchaseChecks to pay merchants who do not accept credit cards.
The list does not end here as there are plenty of credit card schemes available for small business owners.
For the home- based business entrepreneur, business credit cards are very useful as they come in handy when any monetary transaction need to be made immediately for inventory or preparations for critical selling season in your business cycle. Home-based firms make use of e-commerce processing on a routine basis. While finalizing a deal credit cards are used to pay off bills to secure the deal promptly so opportunities for profit are not lost. So whether you run a home-based business firm or a conventional "brick an mortar" a business credit card can be an immense help.
Being Aware of the Additional Costs of Credit Dings
Nobody wants blemishes or dings on their credit report. It just does not make good business sense, even for Joe Average Consumer and his household budget. When you start getting dings on your credit report due to late payments and overdue accounts, now your existing accounts and any new accounts you may want to open, such as a loan for a new car, look at you as a higher credit risk. That pushes you up into a higher interest rate on that loan.
And if you have enough dings on your credit report, your existing accounts can also raise the interest rate that you are paying. You may not realize it, but your existing accounts probably do a credit check on you every year or every couple of years to make sure you are still the credit risk they thought you were when they opened your account. If you are a significantly worse credit risk, you may get a letter from them stating that they have decided to raise your interest rate to cover their additional perceived risk.
Note that I'm talking about "dings" on your credit report. Hopefully you don't have a full-fledged fender bender like an account being charged off, or a total head-on like a bankruptcy. You can still work with those, but you have just made your task quite a bit tougher, both in terms of time and in terms of your efforts to straighten it out.
While it's bad enough to have some dings on your credit report because of some unexpected things that popped up, there is an additional cost there, in real dollars, that most people aren't aware of. Those credit blemishes can also raise your car insurance rates.
The auto insurance industry is now starting to use your credit score as one of the determining factors when they establish the rate you will be required to pay for car insurance. If you do not use credit very much, and even if you don't have any blemishes, your credit score might be too low to make an accurate determination of what kind of credit risk you are, so your car insurance rates might be quoted higher.
The theory used by the car insurance companies is that your credit score is a direct reflection on your character and your credit worthiness, and their studies allegedly indicate that someone with a lower credit score is a higher risk driver. Interestingly enough, the Federal Trade Commission also supports those studies and findings with studies of its own, which indicate that credit-based insurance scores are a pretty accurate predictor of the number and cost of claims. At this time, the top 14 car insurance companies utilize the consumer's credit score to establish rate premiums.
What can you do about it? A lot, although most consumers are not aware of what they can and should be doing on a regular basis. The bottom line is that you need to raise your credit score. We're not talking some illegal activity here or some scam artist. The fact is that most credit reports contain errors, and the more errors you have, the worse your credit score will be. So when you add in a couple dings, your score is reflected as worse than it really is. It is your right to have an accurate credit report, but if you don't take action to get it corrected, nobody else will either.
And if you have enough dings on your credit report, your existing accounts can also raise the interest rate that you are paying. You may not realize it, but your existing accounts probably do a credit check on you every year or every couple of years to make sure you are still the credit risk they thought you were when they opened your account. If you are a significantly worse credit risk, you may get a letter from them stating that they have decided to raise your interest rate to cover their additional perceived risk.
Note that I'm talking about "dings" on your credit report. Hopefully you don't have a full-fledged fender bender like an account being charged off, or a total head-on like a bankruptcy. You can still work with those, but you have just made your task quite a bit tougher, both in terms of time and in terms of your efforts to straighten it out.
While it's bad enough to have some dings on your credit report because of some unexpected things that popped up, there is an additional cost there, in real dollars, that most people aren't aware of. Those credit blemishes can also raise your car insurance rates.
The auto insurance industry is now starting to use your credit score as one of the determining factors when they establish the rate you will be required to pay for car insurance. If you do not use credit very much, and even if you don't have any blemishes, your credit score might be too low to make an accurate determination of what kind of credit risk you are, so your car insurance rates might be quoted higher.
The theory used by the car insurance companies is that your credit score is a direct reflection on your character and your credit worthiness, and their studies allegedly indicate that someone with a lower credit score is a higher risk driver. Interestingly enough, the Federal Trade Commission also supports those studies and findings with studies of its own, which indicate that credit-based insurance scores are a pretty accurate predictor of the number and cost of claims. At this time, the top 14 car insurance companies utilize the consumer's credit score to establish rate premiums.
What can you do about it? A lot, although most consumers are not aware of what they can and should be doing on a regular basis. The bottom line is that you need to raise your credit score. We're not talking some illegal activity here or some scam artist. The fact is that most credit reports contain errors, and the more errors you have, the worse your credit score will be. So when you add in a couple dings, your score is reflected as worse than it really is. It is your right to have an accurate credit report, but if you don't take action to get it corrected, nobody else will either.
Get Rid Off Credit Card Sharks - Eliminate Credit Card Debt
Have you ever thought why credit card companies are minting money while the customers are paying heavy interest & penalties on their over dues? Yes, these credit card companies are big sharks who charge astronomical interest from their customers on over due payments for using their credit facilities.
Customer’s Pain Is Their Gain
As per 2006 statistics, all credit card companies, put together, have profits of more than $90 billion from interest charged alone. From fee charged on cards the single year figure stands at $55 billion. You can very well imagine the kind of money they are mopping from their gullible customers. And we as the customers have no option but to dole out interest almost double or at times more than the going market rate. It is high time we wake up and take steps to eliminate credit card debt.
How Can You Eliminate Credit Card Debt?
If this realization has dawned on you that credit card companies only trap you, then help is not far away. The best way is to pay off all your loans at once and stop the ever-rising meter of debt. Better still, you can go for credit card consolidation. Other options are credit card counseling and in a worse scenario, bankruptcy. Options like credit card debt counseling to eliminate credit card debt suits the individual who has a consistent growing income and can go for a long-term agreement. The Consumer Counseling Agencies get in touch with the credit card companies on your behalf and bargain for fee waivers and lower interest on overdue payments. What’s expected from you is consistent payment without default. Through the last option of bankruptcy, you can legally eliminate credit card debt, but it is not advisable. It is in fact the worst option for you since your credibility will bite the dust.
Credit Cards Consolidation - The Best Strategy
Of all the strategies discussed above, the credit card consolidation is by far the best way to legally eliminate credit card debt. The strategy is simple. The over dues on all your cards will be paid off at once and another loan consolidating that amount will be due from you. The benefit being that interest charged will be a fraction of what you are paying to card companies. Moreover, the payment option will be kept suited to your paying capacity and comfort.
Customer’s Pain Is Their Gain
As per 2006 statistics, all credit card companies, put together, have profits of more than $90 billion from interest charged alone. From fee charged on cards the single year figure stands at $55 billion. You can very well imagine the kind of money they are mopping from their gullible customers. And we as the customers have no option but to dole out interest almost double or at times more than the going market rate. It is high time we wake up and take steps to eliminate credit card debt.
How Can You Eliminate Credit Card Debt?
If this realization has dawned on you that credit card companies only trap you, then help is not far away. The best way is to pay off all your loans at once and stop the ever-rising meter of debt. Better still, you can go for credit card consolidation. Other options are credit card counseling and in a worse scenario, bankruptcy. Options like credit card debt counseling to eliminate credit card debt suits the individual who has a consistent growing income and can go for a long-term agreement. The Consumer Counseling Agencies get in touch with the credit card companies on your behalf and bargain for fee waivers and lower interest on overdue payments. What’s expected from you is consistent payment without default. Through the last option of bankruptcy, you can legally eliminate credit card debt, but it is not advisable. It is in fact the worst option for you since your credibility will bite the dust.
Credit Cards Consolidation - The Best Strategy
Of all the strategies discussed above, the credit card consolidation is by far the best way to legally eliminate credit card debt. The strategy is simple. The over dues on all your cards will be paid off at once and another loan consolidating that amount will be due from you. The benefit being that interest charged will be a fraction of what you are paying to card companies. Moreover, the payment option will be kept suited to your paying capacity and comfort.
How to Improve Your Credit Score
Your credit report and credit score can help you to assess your creditworthiness. There are many reasons that may cause a poor credit score to be assessed by the major credit bureaus - too many debts or outstanding bills, bankruptcy, low credit to debt ratio, not paying taxes, missing loan payments and negative reports to collection agencies from a retailers.
The foremost step to improve your credit score is to analyze the sources that have the most impact on your credit score. Firstly, your credit history plays a major role in determining your score. You need to have fewer outstanding bills, taxes, debts, liens and delinquencies to improve your score. Though the past cannot be changed, paying off debts and taxes on time going forward can definitely start moving your score in the right upward direction.
Paying off present loan balances completely can also help your credit score. Stretching payments by only paying the minimum allowable amount can signal a weakened financial position to those determining your score. In the eyes of creditors you will be less trusted with any extension of added debt. If you cannot pay your balances off completely make it a goal to pay your balances off to 50% of your credit limit. Maintaining a balance above 50% of your credit limit can start to adversely affect your credit score.
Surprisingly enough, refusing to take credit for a long period of time can negatively impact your credit score as well. This is because lenders will not have any access to past activity to assess you as a credit risk. This is why it may be a good idea to maintain open accounts instead of closing them, when your debt is paid. Demonstrating that you had credit available but use it judiciously sends a message of being responsible with the credit extended to you.
Check for errors in your score by asking for credit reports from all three major credit bureaus. Taking this step will make you familiar with your past credit history and you may find errors in verifying the information presented in all three credit reports.
For instance, should you find a delinquent payment you are sure you have paid you can correct the error by sending a letter with proof that you made the payment on time. Following through with a correction like this can typically raise your score in about 30 days. By law credit agencies are obligated to correct errors in your credit report that are brought to their attention.
The steps outlined above can be applied to most situations to boost credit scores, however there are professional advisors and credit counselors to help if your credit matters are more complex. These professionals can be sought to form a more personalized strategy to see you through your specific credit issues.
The foremost step to improve your credit score is to analyze the sources that have the most impact on your credit score. Firstly, your credit history plays a major role in determining your score. You need to have fewer outstanding bills, taxes, debts, liens and delinquencies to improve your score. Though the past cannot be changed, paying off debts and taxes on time going forward can definitely start moving your score in the right upward direction.
Paying off present loan balances completely can also help your credit score. Stretching payments by only paying the minimum allowable amount can signal a weakened financial position to those determining your score. In the eyes of creditors you will be less trusted with any extension of added debt. If you cannot pay your balances off completely make it a goal to pay your balances off to 50% of your credit limit. Maintaining a balance above 50% of your credit limit can start to adversely affect your credit score.
Surprisingly enough, refusing to take credit for a long period of time can negatively impact your credit score as well. This is because lenders will not have any access to past activity to assess you as a credit risk. This is why it may be a good idea to maintain open accounts instead of closing them, when your debt is paid. Demonstrating that you had credit available but use it judiciously sends a message of being responsible with the credit extended to you.
Check for errors in your score by asking for credit reports from all three major credit bureaus. Taking this step will make you familiar with your past credit history and you may find errors in verifying the information presented in all three credit reports.
For instance, should you find a delinquent payment you are sure you have paid you can correct the error by sending a letter with proof that you made the payment on time. Following through with a correction like this can typically raise your score in about 30 days. By law credit agencies are obligated to correct errors in your credit report that are brought to their attention.
The steps outlined above can be applied to most situations to boost credit scores, however there are professional advisors and credit counselors to help if your credit matters are more complex. These professionals can be sought to form a more personalized strategy to see you through your specific credit issues.
3 Helpful Tips on Payday Loans for People With Bad Credit
Payday loans for people with bad credit can give you access to the cash you need at times when it is needed the most. Maybe your car broke down, your electricity was turned off, or you have a hospital due? Most people do not have the extra income to deal with unexpected situations when they arise. If you have bad credit, a traditional bank loan is more than likely out of the question. Where does that leave you? You can ask friends or family, but most people are reluctant to do so. With such few other options available, a payday loan for people with bad credit might just be your best option. Here are 3 helpful tips on payday loans for people with bad credit that will save you some money and improve your credit in the long run:
1) Find a Lender who Reports to the Credit BureausWhile lenders who provide payday loans for people with bad credit will not actually pull your credit, they can very well report your loan to the credit bureaus. This is actually a good thing, and something you should look for in a lender. If you do have bad credit, you should be working to improve your credit situation. By paying your bad credit payday loan off on time, your lender will report positive information to the credit bureaus and your credit score will go up each time you get a loan.
2) Compare Interest RatesInterest rates on payday loans for people with bad credit are always high, as they are unsecured loans. The typical interest rate is around 20-30%, working out to be $20-$30 for each $100 that you borrow. However, these rates can vary significantly from lender to lender. Let's take a look at an example scenario. You are looking to borrow $500 with a payday loan for people with bad credit. Lender A charges 20% interest and Lender B charges 30% interest. That does not seem like a huge difference right? Wrong. That difference could cost you an extra $50, actually more due to the way interest works. That being said, be sure to shop around and compare interest rates when looking for payday loans for people with bad credit.
3) Only Borrow What You NeedMany people who get payday loans for people with bad credit will get a loan amount in excess of the money they actually need. For example, they need $500 to fix their car, but yet they borrow $1000, giving them an excess of $500. It may be tempting to ask for more money than you need when you are applying for a payday loan, but you need to resist the temptation. As mentioned previously, these loans carry high interest rates and so the more you borrow, the more interest you will pay. Therefore, it is wise to only get the minimum amount of money you need to fix your financial situation. Doing otherwise will cost you more money and will put you at a greater risk of not being able to pay the loan back when it is due.
Payday loans for people with bad credit can be obtained for any reason at any time. These loans can provide you with up $1,500, and it can be deposited directly into your checking account in 24 hours or less. Some lenders can even provide you with your loan amount in less than 1 hour from the time you apply. This sounds like a great option, but keep in mind that these loans do charge high interest rates. If you have no other financial options available to you, payday loans for people with bad credit might be an option to help you through a cash crisis.
1) Find a Lender who Reports to the Credit BureausWhile lenders who provide payday loans for people with bad credit will not actually pull your credit, they can very well report your loan to the credit bureaus. This is actually a good thing, and something you should look for in a lender. If you do have bad credit, you should be working to improve your credit situation. By paying your bad credit payday loan off on time, your lender will report positive information to the credit bureaus and your credit score will go up each time you get a loan.
2) Compare Interest RatesInterest rates on payday loans for people with bad credit are always high, as they are unsecured loans. The typical interest rate is around 20-30%, working out to be $20-$30 for each $100 that you borrow. However, these rates can vary significantly from lender to lender. Let's take a look at an example scenario. You are looking to borrow $500 with a payday loan for people with bad credit. Lender A charges 20% interest and Lender B charges 30% interest. That does not seem like a huge difference right? Wrong. That difference could cost you an extra $50, actually more due to the way interest works. That being said, be sure to shop around and compare interest rates when looking for payday loans for people with bad credit.
3) Only Borrow What You NeedMany people who get payday loans for people with bad credit will get a loan amount in excess of the money they actually need. For example, they need $500 to fix their car, but yet they borrow $1000, giving them an excess of $500. It may be tempting to ask for more money than you need when you are applying for a payday loan, but you need to resist the temptation. As mentioned previously, these loans carry high interest rates and so the more you borrow, the more interest you will pay. Therefore, it is wise to only get the minimum amount of money you need to fix your financial situation. Doing otherwise will cost you more money and will put you at a greater risk of not being able to pay the loan back when it is due.
Payday loans for people with bad credit can be obtained for any reason at any time. These loans can provide you with up $1,500, and it can be deposited directly into your checking account in 24 hours or less. Some lenders can even provide you with your loan amount in less than 1 hour from the time you apply. This sounds like a great option, but keep in mind that these loans do charge high interest rates. If you have no other financial options available to you, payday loans for people with bad credit might be an option to help you through a cash crisis.
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