Students Of Success

We all know that life is expensive and that sometimes we just don’t have enough cash to purchase the things in life that we really need. For example, not too many people have enough cash laying around the house to purchase a new car or a house or to finance a college education. And this is where credit comes in. You see, there are many more ways to finance a purchase than just having cash. You can fill out a credit application and see what kind of credit you qualify for.

Basically, getting credit for a big purchase works much the same way as a credit card does. With credit, you are allowed to purchase something without actually having the money for it because a bank or another lender believes that you have the financial means to pay off the bill. When it is believed that you are in a strong enough financial standing to deserve credit, that is when you are allowed to make large purchases without the cash on hand. The first step to finding out of you are eligible to receive credit for a purchase is to fill out a credit application.

A credit application is just what its name suggests: an application to see if you qualify to receive credit for the thing that you need financing for. Many people do not know how to go about the actual process of qualifying for credit because they don’t understand that it really is a process and that you must apply to be approved. Unlike what some people think, there is not an endless amount of money that is available to anyone just because they ask. On the contrary, the process of receiving credit is not always easy and it demands a full credit application and a report of any previous credit that you have received.

You see, banks and other lenders need to be careful that they are not lending money to people that have no means or intention of paying them back. That is why a credit application is required and why there are seemingly strict requirements for receiving credit.

So if you are looking to finance a purchase or a project with the help of a lender, then head to your local bank or to your financial advisor and get a credit application today. It is your first step to getting the money you need to live the kind of life you want.

Julee Mitchelsin is a financial advisor who counsels people to take the credit application process seriously. See www.easycreditapplication.info for more details.

Negotiable instruments like checks and drafts have become an indispensable part of any business transaction today. As a result, it has become increasingly important to safeguard a business against financial losses arising from the receipt of fraudulent or bad checks.

A check can be considered bad if it is bogus or the NSF checks (non sufficient funds check), also referred as bounced check.

The issuance of a NSF or bad checks is an unlawful act and can attract civil and criminal penalties. The onus of a bad check is assigned to the person signing the check and such a person, upon incrimination, is likely to face legal action as specified by the judicial system of the state.

A bounced or NSF check is the result of insufficient funds in the account of the issuer of the check. An NSF check leads to the disruption of a healthy business cycle and also attracts bad check/NSF fees for the issuer of the check. The credit worthiness of the issuer is put under circumspection, which may blemish the business reputation of the issuer.

Measures Against Bad and NSF Checks

The receiver of the check should evaluate the credit worthiness and conduct due diligence of the business/financial repute of the issuer of the check.

A businessperson wanting to mitigate the risk of NSF or bad checks can employ the services of a check guarantee company. Check guarantee companies take upon themselves the liability of a bad or NSF check for a predefined fee.

The receiver of a NSF or bad check can transfer or sell the check to commercial collection agency, which will pay the receiver an up front sum of a certain percentage of the face value of the check. Later, the commercial collection agency employed tries, with good success rate, to recover the check amount from the issuer by employing difference collection techniques.

Check transactions, which constitute an important part of business payments, can prove to be detrimental to the financial health of the business itself, unless they are handled carefully.

The collection of bad debts arising due to NSF and bad checks can become an unwieldy task for a business. Commercial collection agencies are equipped with the necessary know-how and resources to tackle such cases involving fraudulent checks.

Collection Agency Services offers you a wealth of information on how to select the best collection agency for your business.

When you hire a debt collection agency to act on your behalf to collect severely overdue accounts, the agency puts into action a streamlined process which works in the majority of cases. As a result, the debt will be made good and you will receive your money back, less a percentage reduction as fees for the work of the collection agency.

Essentially, this process is one of negotiation. The company will remind the debtor of the facts and seek to open up a dialogue with the debtor. What they want is for the debtor to respond meaningfully to them.

Ideally, a debtor will respond positively, whether by paying the debt in full or agreeing and sticking to a scheduled repayment plan. Either way, the collection agency has scored a success. More rarely, a debtor may refuse to pay and the collection agency may have to submit a poor credit report to the major credit agencies or take the debtor to court to force cooperation. This is regrettable, but necessary.

Collection agencies work within a legal framework and do their best to respect that framework which is there to ensure that the debtor is properly informed of the facts of the case, of their rights to dispute a debt and their rights to privacy, both with regards to the debt and with regards to how and when the agency communicates with them. In short, they will adhere to the legal framework of fair debt collection.

Tristan Andrews is a writer for Collection Agency Quotes.

Do you have a low credit score?

If your credit score is below 700, you may not qualify for some of the best interest rates on credit cards, loans or mortgages. This means that just by having a credit score of 695, instead of 725 (just an example), you may end up paying thousands more in interest on any new credit you are granted, which you can avoid by just taking some simple steps to increase your credit score before applying for a new personal loan, auto loan or mortgage. It is widely believed that a credit score of 720 or higher is ideal.

How to improve a low Credit Score

If you have a recent bankruptcy on file, repossession, foreclosure, missed or late payments… it will take time to bring your credit score back up after such a blow. If you are in this position, in the mean time just be sure to borrow “within your means” (although you may have trouble getting approved for any new credit) and don’t overextend yourself. Keep paying your bills on time, and you will be back on the road to raising your credit score.

If you pay your bills on time, don’t have a recent bankruptcy on your record, and don’t have any missed payments or collections on file, look at your credit card balances. Normally you will want to keep your debt-to-credit limit ratio, on your credit card accounts, below 25%. If you owe more than 25% of your total credit limit on your credit cards, consider paying them down.

Example: if you have a credit card with total credit line of $10,000, and you have a balance of $2,500 on the card, you would owe 25% of your total credit line on that card.

Also keep in mind that even if you pay your credit card balance off each month, it still may be reported to the credit bureaus that you are carrying a balance on that card. It depends on what time of the month your credit card issuer reports to the credit bureaus, they will list whatever your balance is on the day they report it. However, most (if not all) lending institutions are aware of this, so this is generally not something to worry about.

Too many open credit card accounts

Also, too many open credit card accounts can be a bad thing. But, if you already have several open credit card accounts in good standing, don’t cancel them, the added “good” credit history can help your credit score. If you find that you have way too many open credit card accounts and you have decided to cancel some of them, be sure to cancel the most recently opened accounts. Keep the oldest accounts open. Normally the longer your payment history on an account, the better your credit score will be.

Try not to open any new credit card accounts that aren’t necessary. Generally when you open a new credit account, it will lower your credit score slightly, at least for a short period of time.

How you manage your “revolving credit” (credit card accounts) is a big factor in determing your credit score.

Newly Opened Credit Accounts

Usually your credit score will take a slight hit from newly opened credit accounts such as credit cards, auto loans, or mortgages. How many points your score will decrease depends on how many times you have applied for credit in recent months.

However, this decrease is only temporary, your score should rise again after several more months of making your payments on time. Normally this is not something to worry about, unless you have submitted many applications for new credit in a short period of time. That may indicate to credit issuers that you are beginning to overextend yourself (applying for too much credit), or that you are being denied credit and you keep trying other lenders hoping for a different result.

Short Credit History?

If you have a very short credit history (length of time you have been using your credit), that can also be a reason as to why you have a low credit score. Keep paying your bills on time and follow good overall credit management, and rest assured - with time - your score will rise!

No Credit History?

If you have absolutely no credit history, your credit score will most likely be low to start with. You can get started by applying for a credit card in an attempt to establish your credit history, or if you are trying to obtain an auto loan, but haven’t had any luck getting approved because of a short credit history (or no credit history), you can ask someone you trust to help you by co-signing on a loan with you.

These are just 2 of the ways you can start establishing your credit, but probably the 2 most common ways. When you are approved for your first credit account, be sure to pay your bill(s) on time, and you will be on your way to a better credit score!

Jake Rustenhoven is the webmaster of www.freebiecreditreport.com, and the author of many other self-help and finance related articles such as this one.

Balance transfer credit cards are those that make an excellent choice for transferring balances from one card to the other. The main purpose behind transferring balances is to remove debt from a card with a higher interest rate to one with a lower interest rate. In this way, the consumer can save money by reducing or even eliminating finance charges. When looking for the best balance transfer credit cards, it is important to look at a variety of factors.

The Annual Percentage Rate (APR) is one of the first factors a consumer should consider when looking for the best balance transfer credit cards. Credit card companies are hoping to steal your business away from other credit card companies. As a result, they often make special introductory offers with lowered interest rates for balance transfers. In many cases, this APR will even be 0.00%. Be sure to find the balance transfer credit card offering the lowest APR, and then only use that card for your balance transfer. Don’t use it to make any purchases. This is what the credit card companies are hoping consumers will do so they can assess finance charges on the purchases they make with their card.

The length of the special introductory APR varies from card to card. Sometimes, the length is also dependent upon the applicant’s credit history. It is important to be sure how long this period lasts and to set goals to have the balance paid in full once the introductory period is complete. The best balance transfer credit cards will keep the special introductory rate in effect on the card for the life of the loan. In other words, the APR stays the same until it has been paid off entirely. For consumers that will not be able to pay off the balance within the introductory period, this is certainly the best way to go.

Most credit cards assess fees when making balance transfers. These fees are generally determined as a percentage of the total amount of funds transferred. Most commonly, balance transfer fees are 3% of the amount transferred. Many balance transfer credit cards will, however, waive these fees during the introductory period. It is best for consumers to choose these balance transfer credit cards. Otherwise, they may be paying large amounts in fees, negating the savings in finance charges.

Some balance transfer credit cards require initiating balance transfers at the time of application for the card. Yet others allow balance transfers to be completed throughout the duration of the introductory period. The best balance transfer credit cards are the former, simply because they allow for more flexibility. Consumers who are sure they will not need to transfer balances later may, however, be happy with a credit card that only allows transfers to be made at the time of application.

Some balance transfer credit cards place restrictions on the types of balances that can be transferred. For example, some business credit cards only allow business expenses to be eligible for introductory rates. It is important for consumers to be sure to understand what type of balances can be transferred before applying for a card to ensure it meets their needs.

Many balance transfer credit cards also have special rewards programs. Consumers need to compare the programs before deciding on a credit card so they can choose the card with the rewards program best suited to their lifestyle. In addition, some balance transfer credit cards do not count the funds that are transferred toward the points system used in the rewards programs. To get the most of the card, consumers should find balance transfer credit cards that do count the transfers toward their rewards programs.

Robert Willard recommends you visit CreditCardAssist.com to learn more about the best balance transfer credit cards currently available in the marketplace.

Bad credit loans are in high demand. And if you do any research on “bad credit loan”, you’ll find plenty of advice on how to get the lowest interest rate. You’ll also find plenty of people willing to give you a bad credit loan, but you’d be making a mistake to accept it.

Unfortunately, most of what you’ll find approaches the problem from the wrong direction. The way to get the VERY best interest rate on a bad credit loan is usually overlooked or concealed altogether.

But before we continue, let’s digress briefly and look at how significantly the higher rate for a bad credit loan affects the borrower.

Let’s say you want to buy a house, but have bad credit. No matter how diligently you shop for a lender, you’re still be charged a higher interest rate for a bad credit loan than if you had good credit.

With good credit, you might get a mortgage loan at 6% interest. But a bad credit loan will cost you closer to 12%. Assuming you get a $100,000 mortgage over 30 years, the difference you’d pay in interest amounts to a monstrous $154,461.60 MORE because you have bad credit. That’s over 1 times the loan itself!

Now getting back to our original problem, how can you get a better interest rate for a bad credit loan? The answer is probably not what you were expecting.

The solution is to “think outside the box.” The way to get a bad credit loan with the best interest rate is to NOT get one! Instead, spend a couple of months fixing your bad credit, and then look for a “good credit loan” instead.

This answer probably comes as something of a shock to you. More than likely, several objections to this approach will come to mind.

1. “I need a loan NOW” or “It’s not worth my while to wait until I repair my credit.”

Oh really? Well, is it worth a savings of $150,000 or more? Granted you may not be looking for a $100,000 loan. But even if you want to borrow only $10,000 or so, the better rates you’ll enjoy with good credit will still save you several thousand dollars.

2. “Fixing my credit will take too long, or it just isn’t possible.”

It’s often possible to make very a significant improvement in your credit rating in just a few months, and in some cases as little as 30 days.

3. “I don’t know how to repair my credit and can’t afford to hire a credit repair agency”

For a fraction of the cost of a professional agency, you can purchase a good book on credit repair that will walk you through the whole process.

4. “Do-it-yourself credit repair is too difficult” or “I don’t think I can repair my own credit”

Don’t be intimidated by the idea of fixing your own credit. If you can write a few letters, address, stamp, and mail them you can repair your own credit.

Your decision comes down to this; you have two choices.

1. You can spend some time (maybe a LOT of time) shopping for a bad credit loan with the lowest possible rate, and still end up paying thousands (even tens of thousands) more in interest.

2. You can spend some time fixing your credit and spend those thousands on your family’s needs, instead of paying them to your lender.

Do you really think your lender needs your hard earned money more than you and your family need it? Anybody can work on fixing their own credit. That’s right, anybody!

Get a good book on credit repair and get started TODAY!

(c) 2005 eBusiness Power

Jim Eastman is the support contact for www.ErasingBadCredit.com. People wanting to repair

their credit rather than pay thousands too much for a bad

credit loan, can visit the site and sign up for a free mini-coures on credit repair.

The way to help build a bright future is to extend your education into a higher learning facility. A 2004 study by the U.S. Department of Commerce found that a high school graduate earns an average of $36,000 per year, while a person with a Bachelor of Arts Degree averages $65,442. These startling figures alone should encourage most students to continue their education after high school graduation.

As parents, we see that our children attend school to get their book smarts and urge them to further their schooling. But quite often we neglect teaching them one of life’s more important lessons, money management. This can be one of life’s tougher lessons and not so easily learned. That’s where the student credit cards can come in. The lower limits set on the student credit cards can keep the lid on expenditures, while at the same time showing the student exactly where their money is going. The discipline of meeting that monthly payment each month is part of their higher education while at the same time helping to build a future. It’s another form of education, but in real life.

As the college degree brings a much higher earning potential, no matter what your income level is, a good and solid credit rating is a must for every person. Whether it’s a home loan or a car loan or a department store credit card, a good credit rating is a necessity of life. There’s no easier way to begin building that credit history than to take advantage of one of the hundreds of student credit card offers being made today. Whether it be an online credit card offer or one received in the mail, students should seriously consider obtaining a student credit card.

The student credit card offers vary. From 0 introductory APR to cash back programs, there’s an offer to fit everyone’s needs. Some credit card companies offer rewards to students for keeping their grades up and paying their bills on time. You just may be able to afford that graduation trip through one of the rewards programs being offered. This is the perfect way to learn Finance 101, the discipline of money management, build a good credit history, and be rewarded at the same time. Obtaining a student credit card makes perfect money cent$.

Bradley Carson is an online marketer……his website is www.cards-king.com

Do you know what your credit card is truly costing you? Many
people assume that they do, but aren’t familiar with the
hidden fees that many credit card companies are charging. In
fact, if you don’t keep close tabs on your credit card, you
may end up paying hundreds of extra dollars per yearwithout
ever really knowing it!

And if you’re trying to budget your money, those hidden fees
can add up!

Let’s take a look at some of the most common credit card
fees, and then talk about how you can avoid them.

Grace Periods

In the past, we could always count on grace periods before we
ever had to start paying interest. For example, if we
charged our card to the limit, and could get it paid off
before the grace period expired, then it would be like a free
loanwe wouldn’t have to pay any interest.

Unfortunately, the credit card companies are making this
harder and harder to do. For starters, many of them have
reduced the traditional 30 day grace period to 20-25 days.

If you hold a credit card, but didn’t realize this, then
you’re likely paying interest without even knowing it!
What’s worse is that more and more credit card companies are
eliminating grace periods altogether. That means if you
charged lunch today at noon, at 12:01 pm, you would be
already paying interest on it.

How about your credit card? You need to take a close look at
the fine print and find out what kind of grace period you
have. If your credit card company has reduced it
significantly, or eliminated it altogether, you should
seriously consider canceling it and getting a more
user-friendly card.

Late Fees

When is the last time you checked to see what amount your
credit card company charges you for a late fee? The truth is
that these fees have doubled in just the past ten years, and
that, combined with the reduced grace period, means that the
credit card companies are raking in a lot of dough on late
fees!

If it’s possible, you should try and send off the check (or
electronic transfer) the day that you receive your credit
card bill. There are three reasons why it’s important never
to be late. The first is obvious; you will want to do
everything in your power to avoid a hefty late fee. Next, if
you are late, it will likely be reported to the credit agency
and you will have a bad mark on your credit report. The
third is the direst, and we’ll discuss it below.

Interest Rate Hikes

Did you know that if you are late–even one timeon your
credit card payment, the company will in all likelihood raise
your interest rates? That’s right; one late payment gives
them the right to do it. What’s more, that isn’t just
limited to your credit card payment. Any late payments from
any lender that show up on your credit report gives them the
justification to raise your rates, so be careful!

Copyright (c)2005 by Michael Ambrosio. You may publish this
article on your site or in your newsletter provided this
resource box remains in tact. Michael Ambrosio is the author
of many credit related articles. Visit his website today:
http://www.yourcreditandyou.com and rebuild your credit.

Many people are attracted to an instant approval credit card because they want instant gratification. Basically, advancements in technology have caused our society to become used to getting things quickly. Credit cards are no exception. While there are many reasons why you might want to get an instant approval credit card, there are many things you need to take into consideration in order to decide if an instant approval credit card is what you are looking for.

Do you need the credit card right away, or can you wait?

If you need a line of credit right away, an instant approval credit card may be just the thing you are looking for. For example, if you had a great business opportunity or vacation package suddenly appear and you need the funds right away, then you might want to apply for an instant approval credit card. Or, if you have unexpected medical expenses or other emergency-related expenses, then you might want to get a credit card right away to help you take care of those expensive. Or, perhaps you lost your job and need to pay your bills. In this case, an instant approval credit card might be what you need in order to stay on top of your living expenses as you get through rough times. If you don’t have a pressing situation to contend with, however, you don’t necessarily need to apply for an instant approval credit card.

You are probably now wondering what could be the harm in applying for an instant approval credit card if you don’t absolutely need a credit card right away. In some cases, there may not be any harm in this. On the other hand, many instant approval credit cards have a higher interest rate than traditional credit cards. Or, they assess processing fees, annual fees, or other membership fees for the convenience of instant approval. If you do not need to have the card right away, it is simply not in your best financial interest to apply for an instant approval credit card online.

Are there benefits to this instant approval credit card that you can use?

If there are special benefits to the instant approval credit card, then it might be a good idea to go ahead and apply for the card. For instance, if the card offers a great introductory APR or if it has a rewards program that suits your lifestyle, then the instant approval credit card might be a good idea. Just be sure to look at what the card has to offer beyond being an instant approval credit card. Don’t let that be the deciding factor that makes you choose the card. Instead, look at the fact that it offers instant approval as a bonus for a credit card you would want to have in your wallet anyway.

As with any credit card, make sure the benefits associated with the instant approval credit card are ones that you will actually use. If, for example, the card provides discounts to restaurants that are not even near to your home, you are not likely to be able to take full advantage of what the card has to offer. Take the time to research available instant approval credit cards online to learn as much as you can about them and to compare them side by side in order to decide the one that is best for you.

Have you applied for any other cards recently?

Applying for an instant approval credit card should not be taken lightly. It is just the same as applying for a traditional credit card, and applying for too many credit cards within a short period of time will reflect negatively on your credit report. Therefore, take the time to research different cards to find the one that you think best suits you and has the best chance of being approved. That way, you don’t have a large number of inquiries into your credit history bringing down your overall credit rating.

To decide if an instant approval credit card is the right answer for you, Allan Roberts recommends that you visit www.creditcardassist.com

Mark and Beth, a young married couple in their twenties, established a goal to buy a home within the first three years of their marriage before starting a family. They budgeted and used their money wisely in order to save for the down payment. Whenever they purchased something they always paid cash - no credit cards for them. Why waste money by paying interest to a credit card company?

Within two years they’d reached their savings goal and began house hunting. They found their “American Dream” home in a new community with lots of amenities that seemed perfect for their soon-to-be family. They were elated that their years of saving were about to finally payoff.

But, they ran into a big problem when they went shopping for a mortgage. Even though they had enough income to make mortgage payments and enough money saved to afford the down payment, they had no credit history. Lenders had no FICO score to evaluate their creditworthiness in order to offer them a loan. Fair Isaacs Co. established a credit scoring system in the 1980’s and since then FICO scores have been used to determine if someone will qualify for a mortgage and the interest rate they would pay.

Over 50 million U.S. adults fall into the same category - they have either too little credit history or no credit history at all. But now thanks to a new FICO formula, called FICO Expansion Score, lenders will now have opportunities to extend credit to consumers based on non-traditional credit data that are excluded from credit bureau reports.

FICO Expansion will consider a wide range of financial transactions including payment activities such as rental payments, deposit accounts, payday loans, book or CD club payment plans, and retail lay-away plans.

Who stands to benefit from this new scoring model? Anyone who makes little use of banks, credit cards, or checking accounts. The “credit underserved” claims Fair Isaac Co, which includes young adults, low-income consumers, widows or divorcees, and immigrants.

And while those in the credit card and mortgage industry see this new scoring model as a potential benefit, those in the credit counseling sector foresee potential problems.

Fair Isaac CEO Tom Grudnowski is excited about his company’s new credit-scoring resource. “This extension of the FICO score gives lenders and other businesses another powerful tool …, while expanding service options for consumers who have missed out on opportunities simply because they lack a traditional credit history.”

The opposition, namely debt and credit counselors, see both the good and the bad. Some consumers will benefit by qualifying for less costly credit arrangements. However, others could fall prey to becoming overextended unless they also receive some basic credit and debt education.

Tom Hicks, a credit counselor in Chicago, worries that “with the average American household owing $8,000.00 in credit debt, this could open the door to others finding themselves unable to handle credit properly. Ultimately the burden lies with the consumer,” he says.

Fair Isaac Co. estimates that at least half of those without traditional credit profiles will benefit from this new scoring method.

About The Author

© 2004, http://www.yourfreecreditreportnow.com

Author: James H. Dimmitt

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