Category: Credit

By Tanya

Credit card debt can pile up before you know it is happening. People tend to use their credit cards as they would their debit cards, which is always a grave mistake. Getting a set of new tires when you do not have enough cash in the bank to cover it is an acceptable use of your credit card. Paying for a burger and fries with it is not, and is usually the way the debt climbs so high, so fast. If you find yourself in a situation where you are close to or already above your card limit, this article will help you to learn how to pay a credit card off fast.

Are you paying too much on your credit card bills? Compare low interest and 0% APR offers to save hundreds of dollars every month. Click here for free comparison tools.

Tip 1: Don’t miss any payments

This is a no-brainer. Missed payments will not only set you back further from paying off your card, but it will also mess up your credit score. It may also make your interest rate go way above what you are used to and tack on extra fees for being late. So, make sure you pay your bills on time or set up an automatic payment plan to ensure this does not happen to you. Research has shown time and again that avoiding missed payments will keep you on track.

Tip 2: Don’t take on new debt

If you are already maxed out you should avoid bringing any new debt on board. It may seem to you like you really need the new credit card, loan, etc. but when you take on another monthly payment you are taking away from money you could be put towards paying off your original debt.

Tip 3: Have an emergency backup

If your card is high but you have still not reached your limit, set aside some money each week for a cushion for emergencies. When something comes up and you need to make a purchase, it is way too tempting and very easy to reach for the card simply because you know there is some money left on your credit card. In such a situation you can use your backup cash to serve your needs so you do not have to reach for the plastic.

Tip 4: Avoid making minimum payments

It is very understandable when people make only the minimum payments on their credit cards each month. Times are tough with the economy and for those who live from week to week find it nearly impossible to pay more than what is required. Even so, if you can you should pay a little extra. It is best to at least double your minimum payment but if all you can do is add $10 or $20 extra each month, do it. It may not seem like much but it honestly will help you pay off your card faster and knock off some of the interest.

Tip 5: Make some cuts

If you are finding it difficult to pay more on your cards to lower the balance, try cutting other costs in your life. This may mean going for a cheaper cell phone plan, turning off your cable television or forgoing that $5 morning cup of coffee. Whatever money you save from cutting costs can then go toward your credit card payments.

These tips are not a sure thing and it will take some patience to achieve meeting them. However, if you do apply these tips to your life you are sure to see your credit card balance drop much more quickly and isn’t it worth it to see yourself out of credit card debt faster than you expected?

Are you paying too much on your credit card bills? Compare low interest and 0% APR offers to save hundreds of dollars every month. Click here for free comparison tools.

By Rick

Getting your first credit card with no credit history can be a challenging experience. It is like a catch-22 situation, since you need a credit history to secure a card and can only really develop one after you’ve had credit extended to you. In spite of this confusing situation, there are several ways for the average person to obtain a credit card with no credit as long as you take the time to understand the process.

Click here to compare credit card offers from multiple providers, including ones that extend credit for first time borrowers

Companies that specialize in extending credit to first timers

There are a number of credit card companies that specialize in providing credit cards to people with little or no credit. These cards are a great way to establish a credit history that will then allow you to apply for a card from a more established lender in time. Most of these “no credit history” credit cards carry a significantly higher interest rate than a standard card but if you only use the card to buy items you can afford to pay for, you can avoid carrying a balance every month and dodge these fees. Using the card regularly will help you establish a solid credit history and paying off the balance during the grace period every month will ensure a high credit score as well.

Over time the company that offers this card may increase your credit limit to allow you to use the card for larger purchases. Just be careful to not overuse the card so you never get into a situation where you can’t pay at least the minimum due each month. Missing a payment can really damage your credit history and prevent you from moving to a more established credit card later.

Pre-approvals can help sometimes, but not always

When searching for your first credit card you’ll want to choose one that you are pre-approved for if possible. The companies that send you an offer for a card like this have already done a preliminary qualification for you, which almost ensures you’ll be given a card. This is important because these inquiries are considered “soft” inquiries that won’t lower your credit score. Once you apply for the card, the company will do a more thorough credit check that will show up on your report. Knowing you have been tentatively approved will help you but that doesn’t mean your acceptance is guaranteed. The initial pre-approval is much like guesswork. You can’t rely on it.

Compare multiple credit cards

If you receive several offers for a credit card with no credit required, be sure to compare them before applying. The terms and conditions between them can vary significantly and you’ll want to find the one with the best rates and highest credit limit. Only apply for one card at a time. Since you’ll only be using this card for a short period of time to establish a credit history, you won’t need a collection of them in your wallet.

Be aware also that some of these offers for a credit card with no credit may require you to deposit money in an account to use for your purchases. In essence you are spending your own money for the purchases you make with the card. Even though you could make these same purchases with cash, by using the card you are establishing a credit history that will allow you to apply for a traditional credit card later.

Click here to compare credit card offers from multiple providers, including ones that extend credit for first time borrowers

By David

Having a good credit score generally makes things a lot easier, but a decent amount of folks do not realize that until it is too late.  Many make numerous mistakes during their first few years of financial independence — having a bit too much fun with credit card debit cards — and they are often shocked when they find out just how much harder life is for those who have been deemed untrustworthy by the credit bureaus.

Click here to compare 0% APR credit cards with up to 5% cash back. Free comparison of various credit card offers.

Fortunately, even for those with extremely low credit scores, there are a few things that can be done to boost your standing with the credit bureaus:

Take care of delinquent accounts

A good way to let the credit bureaus know that you plan to start taking your financial obligations seriously is by dealing with all the negative accounts on your report.  Reach out to the lenders you have used in the past, and try to work out a repayment plan.  In some cases, when the past due accounts have already been charged off, you might even be able to settle the account by paying a lot less than the initial balance owed.

Maintain current accounts properly

When trying to build up your credit score, it is important that you keep all your current lines of credit in good standing. That includes credit card debit cards, as the former reports your activities to the credit bureaus, while the latter — which doesn’t usually report to the credit agencies — will do just that in the event that your account becomes overdrawn, and the negative balance is not promptly paid.  Therefore, avoid overdrafts on your debit cards, and try to pay the balance on your credit cards in full every month. With every payment made on time, your credit rating will start to move upwards.

Use only a small portion of your credit line

Having access to a large line of credit does not mean you should max it out.  Credit bureaus do not look positively on those who consistently use a large portion of their available credit, and it can be a sign of financial irresponsibility.  Therefore, try to avoid using more than 30 percent of your available credit at all times.

Stop applying for every credit card debit offer you see!

Some folks don’t seem to realize it, but applying for numerous credit lines during any particular period is detrimental to your credit score.  It is often looked at as a sign you might be desperate for funds, which leads them to question the reliability of your income.  If you are trying to build your credit score to buy a house, for example, try not to apply for any credit lines a few years before you plan to make the purchase (while maintaining good standing with your current lenders), as it will do wonders for your credit score.

Having poor credit can be really frustrating, but fortunately, there is hope for those who find themselves in that situation. By following the above tips, you should be able to improve your credit score.

Click here to compare 0% APR credit cards with up to 5% cash back. Free comparison of various credit card offers.

By David

Having poor credit is no laughing matter, as it usually turns basic activities like signing up for cable and other similar actions into difficult tasks. To make things worse, once a person’s credit score plummets, securing lines of credit becomes a lot more difficult. Also, debit cards don’t add to your credit score, leaving many left puzzled on how to rebuild their credit history. Fortunately, there are a few tricks that can be used to salvage your credit rating and get you back in the favorable graces of lending institutions.

Click here to use our free credit card comparison tool to find the best credit card offers for you

Secured credit cards

If you are constantly getting rejected every time you apply for a credit line, you might want to consider going for a secured credit card. Secured credit cards work a bit like debit cards, meaning you have to deposit funds into the account before you start swiping.  However, while debit cards don’t add to your credit score, secured cards do, so every on-time payment you make will be reflected on your credit score. If your credit score is too low to get you approved for a credit card, a secured card is your next best option.

Managing balances properly

Just because you have a credit line — secured or unsecured — doesn’t mean you should pile up all your bills on it, a mistake many make especially when using secured credit lines.  While secured cards require you to deposit funds before spending, they still work like unsecured credit cards. They report your activities to the credit bureaus just like their unsecured counterparts, so little things like using more than 30 percent of your available credit or failing to pay off the balance on your account in full every month can have negative repercussions on your credit file.

Do not forget your debit cards

While debit cards don’t add to your credit score, there no reason to stop using them. Unlike credit cards, the banks do not report your debit card spending to anyone, so there are no strict set of rules you need to follow in order to remain in good standing. Besides, every transaction you make on your debit card instead of your credit card reduces the chances of your falling into debt — which obviously has a negative effect on your credit score. So in a way, debit cards can actually help you improve your credit score indirectly.

Staying on top of your finances

Arguably the most important tip you can get, as it is virtually impossible to build and keep a good credit rating if you are irresponsible with your finances.  Learn to follow a budget, pay your bills on time, and make sure you go through the fine prints of contracts you enter. The whole credit rating system is designed to rewards responsible members of society who manage their finances properly, and once you become one, your score will certainly improve.

With the above tips, you should not have any problems getting your credit score where you want it to be.

Click here to use our free credit card comparison tool to find the best credit card offers for you

By Matt

If you’re looking for a credit card to make everyday purchases, you may be finding yourself overwhelmed by the variety of options available on the market. With over three billion credit cards in circulation worldwide, credit has become the first choice at the cash register for an enormous, and growing, percentage of people. But how can you determine the best credit card for everyday use? You will have to take an honest look at your financial situation and spending patterns to find the optimum card for you.

Click here to use our free credit card comparison tool. Find 0% APR and cashback offers.

The cost of credit

Credit use by definition has an inherent cost. Issuing credit is not charitable work. Credit card companies advance funds to their customers in exchange for interest payments. However, if you are smart about your credit use, you can have free access to credit, and even earn rewards for making purchases. How is this possible?

• Avoid carrying a balance. As long as you pay your monthly balance in full you will not incur any interest charges. If you carry a balance, you will be subject to high interest rates, anywhere from 10% to 22%.
• Find a card with no annual fee. Some institutions charge for the privilege of carrying their card in your pocket. Annual fees can range from $50 to $150. Do some shopping around and you should be able to find a card that waives the annual fee.
• How can credit be free? Even if they’re not making money off of you, credit card companies make money every time your card is swiped by charging a transaction fee to the retailer.

Three top credit card features

1. Accessibility – Make sure your credit card is as universally accepted as possible. The big three names in credit are accepted virtually everywhere.
2. Rewards – You should be able to find a credit card that will offer rewards for spending.  Rewards are typically calculated based on a percentage of your purchases and are conveyed as points, which can be converted to travel or other products, or as a cash back redemption. Find a card that offers premium rewards at your favorite retailers in order to maximize rewards.
3. Low APR – This is a consideration if you are carrying a balance. Your APR (annual percentage rate) will determine your cost for carrying that balance. You will save hundreds of dollars if you can get an APR closer to 10% rather than 20%.

Your credit score

Credit score goes a long way in determining the best credit card for everyday purchases. If you have a poor credit score, you may only qualify at high interest rates, or you may not qualify at all. If you don’t qualify for a card with attractive benefits, then other payment methods might be preferable.  Build up your credit by paying down debt and clearing monthly balances.  Avoid making too many credit applications as each time your credit history is accessed it has a negative impact on your overall score.

By Matt

Getting your first credit card can be tricky. Credit card issuers like to see a credit score before issuing credit in order to evaluate your potential worthiness. If you’ve never had a credit card, then you probably won’t have a credit score, which you need to get a credit card. Confusing, right? Fortunately, there are ways to get your first credit card despite the usual requirement for a credit score.

Click here to compare 0% APR credit card offers

Secured and prepaid credit cards

With a secured credit card, the cardholder makes a deposit to act as a security against any purchases made with the card. The credit limit is usually equivalent to the deposit. If the cardholder cannot meet payment obligations, then the deposit will be applied to outstanding payments. Otherwise, a secured card functions very similarly to a regular credit card, including sending reports to credit bureaus. This is a good option if your goal is to build credit or improve your credit score.

A prepaid credit card requires no credit history or credit score check. Essentially, a prepaid card is very similar to a gift card; the difference being that you can use it wherever credit cards are accepted. There is usually a small fee to activate the card combined with small transaction fees.  If you are after the convenience offered by credit cards, the ability to make online purchases, etc., then a prepaid card is your answer. Prepaid cards do not report to credit bureaus, so they are not a viable option for building credit.

Student credit cards

Student credit cards are typically made available to college and university students. The card issuer considers  the fact that students have little income and limited credit history. The risks borne by the issuer are often offset by a higher interest rate.  Be sure to do your research. Don’t jump at the first free T-shirt offered on campus in return for filling out an application.

Click here to compare student credit cards

Three smart philosophies for your first credit card

1. Read the fine print – While this may seem like common sense it is important enough to be underscored. The fine print explains your interest rate and penalties that will be incurred for missed payments and overcharges.
2. Pay off your balance – You’re young and debt free. While there is not much you can do about aging, you do control your debt. Carrying a balance affects your credit score and the interest rate you receive. A credit card is just a piece of plastic if you max out your limit.
3. Consider this an opportunity – Your first credit card is your chance to prove your credit-worthiness. Good behavior will be rewarded with an improved credit score. In the future, you will be able to take advantage of the benefits offered by a clean credit record.

Remember to be careful with your use of credit. The last thing you want to do is wreck your credit rating before you even have one. A bad credit score follows you everywhere, and restricts your financial freedom, regardless of your prospective income. Properly managed credit will ease your ability to obtain future loans for vehicles and a mortgage on your first house.

By Matt

Credit cards are an extremely useful and arguably necessary means of making financial transactions in today’s increasingly digital world. Consumers without credit cards can find themselves limited in their purchasing options. Most online purchases require a credit card. Even free trials of online services typically ask for a credit card number before the registration process can go ahead.

Finding a great last minute deal on a vacation can be very exciting, but that thrill will quickly diminish as you realize you will need a credit card to make the purchase before the deal expires. And there’s no slicker way to pay for a meal on a date than slipping that gold card into the restaurant’s black billfold.

Click here to compare credit card offers, including offers for those individuals with no credit

Credit scores

Credit scores are used by credit issuing institutions to determine an applicant’s eligibility to receive advance funds. Scores are based on an individual’s historical use of financing, including outstanding loans, payment record, percentage of available credit used, and the frequency of credit checks.

Credit scores are created through the use of credit. If an applicant has no credit score, then institutions will be hesitant to issue a card. This can seem like a bit of a catch 22; no score means no credit card but without a credit card, there will not be a score. Finally, people with a poor credit score, that is, a history of credit abuse, will find themselves in a similar or worse position as people with no credit score.

Three ways to get a credit card and build your credit

1. Secured credit cards – These cards require the applicant to pay a deposit up front. The credit limit is generally determined by the amount of the deposit. Other than the deposit, a secured card works the same way as any other credit card. Unlike a prepaid credit card, your card reports to credit bureaus, creating a credit history and score.
2. Get a co-signer – If you can get someone (preferably a parent or someone else with unconditional love for you) with good credit to co-sign for you will significantly increase your chances of being approved for the card. The drawback to this method is that any credit abuse on your part will reflect poorly on your co-signer’s credit score and s/he will be left on the hook for any of your unpaid bills. Be careful as you don’t want to drag someone else into your financial mess. This can be a sure-fire way to end a relationship (see: unconditional love).
3. Store cards – Department stores that issue their own credit cards usually have lower credit standards than cards with the Visa or MasterCard brands. If your goal is to build your credit make sure you pay your balance monthly, and watch out for high department store interest rates.

Finally, if your reason for getting a credit card is the convenience they offer, then consider a pre-paid credit card. Simply load the card with funds and it can be used anywhere credit cards are accepted or required. Prepaid cards do not report to credit bureaus, so they will not create a credit score for you, but the benefit is they do not require a credit check.

These days, credit score is of vital importance if you need to rent an apartment, buy a house, a car, or  even get a job. Yes, if you will be dealing with sensitive financial information or hold a position of accountability, your employer may check your credit score. Now the million dollar question is how can you improve your credit score? Although, there is no magic required to improve your credit score but some self-discipline, motivation and proper planning can help you raise your credit score.

It’s a marathon, not a 100-meter race

Just remember that you will be able to improve your credit score over a period of time. So be patient and start working gradually. You might be able to raise credit score up to 200 points within three years if you take the right steps. Of course, it is possible that some people will not achieve this number. It is entirely in your hands.

Pay monthly bills on time

In order to maintain a good credit score, what you need to do is pay monthly bills on time. Even a slight delay can cause a few points to be deducted from your credit score. That’s why it is important that as soon as your bill reaches your mailbox, pay it immediately. If possible, you can also register for automatic recurring payments.

Don’t charge over 25% of your credit limit

In case you are just about to start and have a meagre credit report, think about opening one or more credit accounts. Don’t go above 25% of the credit limit and always try to pay your balance in full, if possible. It is not required that you overdo it but it is a healthy habit to maintain accounts which will later on help you build a higher score.

Keep balances low                                 

Just keep your balances low at all times and keep within the 25% range, if possible. In case it goes over this limit, then stop charging and try to pay off your debt first.

Negotiate a lower APR

If you are a regular and a loyal customer for some time then you can ask the customer service to negotiate a lower APR. This may take some effort and persistence but is theoretically possible.

Check your credit reports

Carefully study the credit reports from Equifax, Experian, and Transunion and check each and every entry on the report. If you find any inconsistencies, then go ahead and dispute them. Once it gets fixed, you will be delivered an updated report.

Don’t close all your paid accounts

There is some debate on this one and we have heard different opinions. It is not necessary that you close all the accounts that you are not using. Keep the ones which you have had the longest. Its advantage is that it will make you more credit worthy because the duration of credit history plays an important role in credit score.

If you are one of the few consumers who are eligible for a good credit credit card, then you should certainly consider yourself lucky. Credit card companies simply love consumers who have good credit. It goes without saying that the defining criterion for a good credit may vary from one bank to another and from one credit card company to another. But on a general note, if you have a credit score above 700, then you can safely assume to be in at least one of the “eligible lists” prepared by these credit companies and banks to obtain a good credit credit card.

What are the benefits of having a good credit credit card?

Having a good credit credit card brings in many benefits to the credit card user. To summarize, these benefits come in a variety of forms like low interest rates, 0 % APR interest, exclusive access to high end spas, diners, cruises, music concerts and the like; cash back discounts on most of the purchases, and other similar perks.

Some other benefits are bonus travel miles, free hotel stays, twenty-four hour access to a personal account manager, and shopping discounts on popular brands.

Some banks and credit card companies like to pamper their customers who have good credit credit card, and that is probably why they choose to waive off ALL kinds of fees for these customers. So these special customers do not have to pay any annual charges, any late payment fees and no fees even if they go over their credit limit.

Other benefits extended to people with a good credit credit card are a personalized concierge that is kept ready to assist the credit card holder for any emergency booking of flights, or in getting tickets to any exclusive concerts and in booking hotel stays as well.

All these benefits are well-deserved

Looking at the wide range of benefits perks and rewards for consumers with a good credit credit card, it is but natural that every other consumer begins to yearn for such exclusive facilities. But unfortunately it is not so easy to attain a good credit score and neither is it easy to maintain that good credit score once you have reached it.

So you got to admit that these special credit card consumers definitely well deserve all the exclusive and special treatments being met out to them. If you want to enjoy such exclusive and exotic benefits, you have to work hard on your credit score. But you must know that an excellent credit score that makes you eligible for a good credit credit card cannot be attained overnight. You have to display a committed and consistent track record of timely payments and responsible handling of your finances.

Having an excellent credit score that is more than 700 is your ticket to getting a good credit credit card. Though such excellent credit scores are hard to come by, once you attain the upper level, you can look forward to a lifetime of benefits and rewards.