The Credit Card Dilemma

The Credit Card Dilemma

Part One:

Are you totally confused by the wide selection of Credit / Debit Cards that are available?

Narrow Down Your Choices

• Go through the list of various cards – highlighting the ones that you believe you will not be able to get.
• If for example you are not a student, you can eliminate Student Cards
• How is your Credit Score? Have you been in trouble and lapsed on your payments to Banks, Stores and other Creditors? Or are you a Bankrupt or has some Creditor taken you to court? Answer yes to any of the forgoing questions and your chances of getting a Credit Card – are very low.
• If your Credit Score is rubbish and knowing your chances of getting a Credit Card are almost nil – you can cross off your list of possible cards to apply for, any with the words 'Credit Card' on it.
• So if your previous Credit Score is less than perfect and you have eliminated all Credit Cards from your list – what have you got left?
• Debit Cards – your saviour. Having a Debit Card is not a stigma – you have nothing to be ashamed of, people from all professions have found themselves in financial difficulties at times.

Therefore, with a Debit Card you can do practically anything you can do with a Credit Card.

The big advantage of having a Debit Card is that you can't get into any further trouble.

You have to fund a Debit Card yourself.

How Can You Fund Your Debit Card?

• From your Current Account
• Have your Salary or other regular money paid into your Debit Card
• Transfers from your Savings Accounts into your Current Bank Account.

Is There a Limit to How Much You Can Spend While Using a Debit Card?

You are limited to how much you have in your Current Account at the Bank or Building Society.

• You can't overspend
• If you do go over your bank account balance – and you haven't an Overdraft agreement with your bank, you won't be able to pay for whatever it is you are trying to buy or pay for.

This can be embarrassing – especially if you are holding up the queue at the supermarket, but it's not going to get you into any further debt.

How Can You Make Sure You Don't Embarrass Yourself?

Try to keep an account of all your money received into your Current Account and your Expenditure – money being paid out

· Check your Bank Balance online daily.

· If you have Direct Debits or other regular payments coming out of your Current Account – make a note of whom you are going to pay - the date due and the amount.

If you have a wall calendar – and you have made a note of dates payments are due - as you mark off each day … you will have a reminder of what's due that day.

This could mean that if you are due to pay Joe Bloggs that day and having checked your Bank Balance – you haven't enough money – be sure to contact Joe Bloggs, explain to him the situation and promise to pay him some date in the future. Never make rash promises that you can't keep. Better, before phoning your Creditor, seriously work out when you will be able to pay him – and keep your promise.

You will find that if you keep your Creditors in the picture, they will treat you with respect and make allowances for you. Nevertheless, as said in the previous paragraph – make no rash promises.

If You Haven't Enough Money In Your Current Account, What Should You Do?

· Can you transfer money from your Savings Account (if any) into your Current Account?

• Unfortunately, if you have no way of topping up your Debit Card – you will just have to do
  without whatever it is your heart desires and put your Debit Card away for another day

In Part Two we will discuss the Various Credit Cards and which one is best for you.

The Credit Card Dilemma

Credit Reports - Are They Harming Your Credit Score?

Credit Reports - What's On Them, and How to Check Yours

Businesses in the United States buy more than two billion credit reports every year. Since there are currently fewer than 300 million people in the country, this means that the average adult has his or her credit reports examined by someone about once every other month. And yet, only a small percentage of Americans have ever laid eyes on their own credit reports. Viewing your credit reports, at least twice a year is a necessity in today's electronic age, and while it may not always be free, getting access to your credit reports is much easier and less expensive than it has been at almost any time in history.

What is a Credit Report?

There are three major credit bureaus in the United States. They are Equifax, Experian, and TransUnion. These three companies are competitors, and therefore they don't share information with one another. As a result, your Equifax credit report may be significantly different from your Experian credit report, and your TransUnion report may be different still. Sometimes this is a good thing - if only one of the credit agencies reports a bad history, for example. However, more often than not, it's a headache, since at least one of your credit reports is bound to have some incorrect, negative information on it.

What's On Your Credit Report?

Although each of the three credit agencies record slightly different information, the following is a basic list of what you'll find on each of your credit reports: Your name and your spouse's name. Where you live, where you work, and where you used to live (and used to work). Your social security number, phone number, and birth date. A list of your credit accounts and when you've paid your bills - on time, late, late by more than 30 days, late by more than 60 days, etc. How much total credit you have available. Whether and to whom you've made an application for credit in the past six months. Which companies have requested and obtained your credit report. And finally, dreaded "public records" - bankruptcies, foreclosures, repossessions, court judgments, convictions, and tax liens.

How Long Does Information Stay On Your Credit Report?

Positive information stays on your credit report indefinitely, which is a good thing. Most negative information should be deleted after seven years, with the exception of certain types of bankruptcy, which can stay on your report for ten years. If one of your credit reports is missing positive information or contains negative information that's older than seven years, contact the appropriate credit bureau. Their website addresses are listed at the end of this article.

How To Obtain Copies of Your Credit Reports

Usually, you may have to pay for your credit reports. The fees that the credit bureaus can charge vary by state, but the maximum is $9.50. You can find out more information by visiting the individual sites of the three bureaus: equifax.com, experian.com, and transunion.com.

However, if you'd rather get your reports for free, you can do so through an exclusive partnership through our website:

http://lancslass39.ecreditdirectory.com

Eva Moffat had her own Book-Keeping Practice for over 25 years. Now she is offering her advice and guidance to you if you are contemplating applying for a Credit or Debit Card. Visit her website now for the best selection of Credit / Debit Cards.

http://lancslass39.ecreditdirectory.com

Credit Cards and the Larry Rule

The Larry Rule - Is Applying for Store Credit Cards Bad for Your Credit?

Larry Lindsey is probably not a name that you know, but he is an important figure in the history of personal finance. Currently, Mr. Lindsey is President Bush's chief domestic economic advisor. Prior to that, he was a Federal Reserve Board Governor. However, neither of these distinctions are what make Larry Lindsey significant. Instead, it was a little incident at Toys 'R Us that gave birth to "The Larry Rule."

The Larry Rule - What No Retail Clerk Will Ever Tell You

In 1996, Larry Lindsey was a Federal Reserve Board Governor. While it isn't known for sure, it's probably safe to assume that Mr. Lindsey was then, and is now, a millionaire. An even safer assumption is that he always paid his bills on time and should have had a top-notch credit score. After all, he was a member of the most prestigious financial committee in the world, and his personal credit history was undoubtedly vetted by politicians and regulators before he could be appointed to the Fed.

Despite all of this, Mr. Lindsey was denied a store credit card - at Toys 'R Us of all places. The reason? He lacked a sufficient credit score due to too many recent inquiries. You see, Larry Lindsey had been trying to prove a point. Whenever a retail clerk offered him an opportunity to apply for credit, he did so. He filled out the application correctly, even stating that he was a Fed Board Governor under "employment." He listed his six-figure income and all other pertinent data, and until Toys 'R Us came along, he had always been approved.

It wasn't that Mr. Lindsey actually wanted or needed all of these retail credit cards. His objective was to point out this flaw in the credit scoring system - applying for too many retail charge accounts can hurt your credit and prevent you from qualifying for real credit cards. Ask yourself, which is more important - the charge card at JCPenny that can only be used at JC Penny, or a real Visa or Mastercard that can be used at JCPenny and everywhere else, too?

To Apply or Not to Apply - That is the Question

On one level, the Larry Rule makes at least a little sense. After all, someone who is out there applying for credit all over town would seem to be in some form of financial distress. When the credit bureaus created their scoring criteria years ago, they didn't factor in pushy retail clerks who get bonuses for getting people to apply for cards they don't need. You do need a real credit card. Having two or three isn't a bad idea. But department store cards count as lines of credit on your credit report, and having too many of them can make you look like an unworthy applicant in the eyes of real credit card companies.

Armed with the knowledge that applying for and receiving retail store credit can be harmful to your credit, you should think twice before applying. First, ask yourself if you really want the store credit card, or are you just filling out the application so that the clerk will stop bugging you? If the store offers you a discount for applying, ask yourself if the money you'll save is worth the negative impact that the inquiry (or even being accepted) could have on your credit score.

If you actually do want the card or the discount is a real money-saver, then ask yourself this question:

Will I need to apply for credit for something important, like a real credit card, a car, or a home loan, in the near future? If the answer is yes, then it is probably best to "just say no" to the retail application. You wouldn't want an inquiry from Toys 'R Us to inhibit your financial future.

We highly recommend that you research your credit card options before applying for a card. Then, choose the best one that is best for you, not one placed in front of you by a store clerk. In fact, you can search hundreds of cards right now at:

http://lancslass39.ecreditdirectory.com

We recommend you browse this directory and pick out one or two solid cards that you plan on keeping for the long term. With this sound financial advice, you will be on track for a great credit future.

P.S. Don't wait, now's the time to get the card you need for the future:

http://lancslass39.ecreditdirectory.com

Eva Moffat had her own Book-Keeping Practice for over 25 years. Now she is offering her advice and guidance to you if you are contemplating applying for a Credit or Debit Card. Visit her website now for the best selection of Credit / Debit Cards.

http://lancslass39.ecreditdirectory.com

Credit Cards for Teens

Credit Cards for Teens and Young Adults

Are Credit Cards for Teens A Good Idea?

It's great when parents are willing to help out with their kids' futures, but make sure that you understand all of the implications before you help your kids build credit.

A credit card is a great way to start building credit as a teen or young adult, and many young people receive their first credit card from their parents. Before you hand your teen a credit card as they head off to the mall, think about whether it's helping (or possibly hurting) their future credit.

Authorized Users vs. Co-Applicants

Often, a teen's first introduction to credit is becoming an authorised user on a parent's credit card. This is an easy way to get a credit card, but it's not usually the best way. In almost every case, an authorised user does not build positive credit of their own, but if the primary cardholder goes into default, it can be reflected on the authorised user's credit report. In other words, your child does not stand to benefit from your good credit but could suffer if you fall into hard times.

Placing your child on your account as a co-applicant can have even more harmful consequences. If your credit card company requests a signature from the child, they are likely adding the child as a co-applicant. Think long and hard before you take that step. Being a co-applicant means that they are equally liable for any debts that you incur. If your child is an authorised user and you run up $25,000 in debt that you can't pay, your child could get an ugly stain on his or her credit. However, if you list your child as a co-applicant, the credit card company can expect them to pay back that money, and even take him or her to court!

Make sure you look at all the factors. Even if your credit is great and you have no intention of racking up debt, is there a possibility that a lost job, medical bills, or another disaster could change your circumstances? If there is virtually no chance of that happening, your child might be fine being a co-applicant or an authorised user. However, even if you won't hurt your child's credit, you won't help them much either. The best course of action is to get a card in the child's name tied to his or her social security number only. If you've been thinking of adding your child to one of your cards, call you Credit Card Company and ask to open a separate account in your child's name instead. Since you already have an open account with the company, and are bringing them additional business, you will usually get a better rate for your kid than he or she could get on his/her own.

Why Start Early at All?

Even if he or she has to open a starter credit card offer with a high interest rate, it will still help your child's credit in the long run, as long as you teach him or her to act responsibly. The easiest way to help them build good credit is to have them use their Credit Card for one use, paying his cell phone bill or buying gas, and pay it off each month. When your kids get an early start on credit, they'll have a huge advantage over their peers. If you show them how to use their new card responsibly, the credit card company will reward them in the future with higher credit lines and lower rates, so they can gradually use their credit card for more "adult" things, like furniture for their first apartment or a post-graduation vacation.

Don't let common mistakes like adding your child as an authorised user or a co-applicant harm his or her future credit. Imagine what a shock it would be if she attempted to buy a car or pass a credit check for an apartment, and she found out that the credit card she'd been making payments to for years isn't on her credit report. And furthermore, imagine the phone call you'd get shortly after asking for a loan! Your kids' credit can have a negative financial impact on you as well, so start early!

Do You Need a Credit or Debit Card? Click below for a wide choice of Credit Cards

http:lancslass39.ecreditdirectory.com

Eva Moffat had her own Book-Keeping Practice for over 25 years. Now she is offering her advice and guidance to you if you are contemplating applying for a Credit or Debit Card.

Visit her website now for the best selection of Credit / Debit Cards.

http:lancslass39.ecreditdirectory.com

Bad Credit - Are You Ashamed of It?

Bad Credit – Are You Ashamed of It?

Bad Credit? Lose The Shame, Take Responsibility, and Begin Rebuilding

In Three Steps:

According to the research firm Sherbrooke and Associates, 43 percent of American households are "credit constrained." This is probably because they carry too much current debt, or they were forced into making poor choices with their credit in the past. With interest rates rising and the housing market cooling, the number of credit constrained households is likely to increase. Therefore, if you find yourself in such a situation, know that you're not alone.

Having excess debt and bad credit is a source of shame for many, and it has even been known to break up otherwise loving marriages. Many people who are credit-constrained feel there is no way out - particularly now that bankruptcy laws have been changed to make filing for bankruptcy more difficult for people with even average incomes. The truth, contrary to what most bankruptcy lawyers will tell you, is that bankruptcy is rarely the answer. You can dig yourself out of debt and repair your credit - all that it takes is commitment, discipline, and most of all, a new attitude.

Step #1 - Let Go Of Your Shame

Unless you fraudulently charged items that you had no intention of paying for, you need to let go of all shame related to your bad credit and debt. After all, the credit system is set up with the understanding that some people will be unable to pay their debts - that's why lenders are paid interest, to compensate them for risk. If you buy a corporate bond and the company goes under, nobody feels sorry for you, so don't let your creditors make you feel sorry for them. Just like buying a bond, your creditors took a financial risk by lending to you, and they didn't do it out of the kindness of their hearts - they did it to make money. So long as you had every reason to believe that you'd be able to pay for your debts, you have nothing to feel guilty about.

Letting go of your guilt and shame is not the same as abdicating all responsibility. To one degree or another, you are responsible for your situation. To another degree, externalities - things in the outside world - are responsible. Take responsibility for your actions, but do not let anyone make you feel guilty or they will wield that guilt as a weapon against you.

Step #2 - Contact Your Creditors

Once you've let go of your shame and have committed to taking responsibility, it will be much easier to face your creditors. Explain to them that you're over your head in debt, and while you want to honour your commitments, you would appreciate it if they would work with you to make doing so easier. Most of the time, your creditors will be more receptive than you would imagine - after all, they're used to people in your position ducking under a rock and ultimately sticking them with the bill.

Your creditors may offer to let you skip a payment or two in order to help you get back on your feet, or they might offer to lower your interest rates.

If you still have your accounts open, they might offer to suspend your credit while you pay off the balance in principal only at regular monthly intervals. Finally, they may offer to settle your accounts at less than the full amount due if you pay in one lump sum.

Step #3 - Begin Rebuilding Your Credit

While restructuring your payment terms, by all means, stop abusing credit. You need to work out a budget that will prevent you from finding yourself in this situation again. If you still have credit cards that haven't been cancelled, you should continue to use them - but make absolutely sure that you can pay for everything you've charged that month when the bill comes due. By doing this, you'll keep a credit account active, which is good for your credit.

Many of these negotiated payment plans will adversely affect your credit - particularly settling for less than the total amount due, which will be a black mark on your credit report for up to seven years. The fact is that negotiated settlements may still be superior to falling deeper and deeper into debt, which could ultimately destroy your credit and lead to legal action being taken against you.

Once you're back on your feet, be sure not to repeat the same mistakes you made in the past, but don't swear off credit altogether, either. Just because you're in bad shape now doesn't mean that you always have to be. Open up a small credit account and pay your bills in full and on time, and in a matter of just a few short years, your credit can be just as good as anyone else's. The sooner you start rebuilding after a near credit meltdown, the sooner you'll be able to experience the security and peace of mind that the other 57 percent of Americans enjoy.

Do you need a Credit or Debit Card? Click below for a wide choice of Credit Cards.

http://lancslass39.ecreditdirectory.com

Credit Card vs Debit Card - Which is Best for You?

Credit Card vs Debit Card - Which is Best for You?

You are thinking of getting a Credit Card or would a Debit Card be more suitable for your needs?

Let's go through the pros and cons of each so you will be able to make an informed choice.

First, We Will Discuss Credit Cards.

The Advantages of Having a Credit Card

· You don't need to have any money initially

· The Credit Card company will give you a set amount of money eg £1 000 – this will be your Credit Limit. You can spend up to that amount.

· Each month you will receive a statement from the Credit Card Company – you will be able to choose to pay the whole outstanding balance (what you have spent since your last payment) or if you are short of money you will be able to pay the minimum amount.

· If you pay the full outstanding balance you will not have to pay interest

· By using your card at certain times – you may be able to enjoy up to 55 days interest free expenditure

· The Credit Card companies are battling for your custom. Therefore, they will use many different ways of tempting you to obtain one of their Credit Cards. One of their ruses is to allow you to transfer any other Credit Card balances you may have.

· Transferring your balances from other Credit Cards into your new Credit Card will usually mean you will only need to make one payment each month; this will probably be a lesser amount than if you were to pay each card individually. The term for this is 'consolidating your debts.'

· The outcome of transferring your balances and thus forking out less money each month means you will have more money at your disposal.

· You can use your Credit Card in most parts of the world.

· You can withdraw cash from Automatic Teller Machines (ATMs) in most parts of the world and you will receive cash in the currency of that country

· You can buy Goods or Services online from most parts of the world

· You can pay your bills or buy Goods or Services telephonically.

· Or a visit to the shops and you can pay at the till with your Credit Card

· You can buy goods from Ebay and pay for them through Paypal

· Paypal accept a wide range of Credit and Debit Cards

Even with all the above advantages – there are some disadvantages to having a Credit Card.

These Disadvantages Are:

· Unless you are very strict with yourself – you may overspend and go over your Credit Limit. The Credit Card company will add an additional Penalty Charge on top of their normal monthly Interest Charge.

· You won't be able to receive Cash Back at the Supermarket

· If you only pay the minimum amount each month – over time you will pay very high Interest rates. This means that even though you are paying each month, the Credit Card company will add Interest so your outstanding balance won't reduce

Having a Debit Card Has Some Advantages

· You can't spend more than you have in your Bank Account; this is because you are financing your own Debit Card.

· You can't get into trouble or overspend, because your Debit Card is attached to your Current Bank Account.

· You can only spend as much as you have in your Current Account.

· You can use your Debit Card to pay for your Goods or Services ie physically at the shops, telephonically or online in most parts of the world.

· There are no Interest or Penalty Charges

· At the Supermarket you can use your Debit Card to pay for your Purchases

· Also, at the Supermarket you may be able to receive Cash Back. This means you will save yourself a journey to an ATM to draw cash. In addition – the Supermarkets do not make a charge for giving you Cash Back

· You can use your Debit Card in most parts of the world.

· ATM's in most parts of the world will dispense cash to you in the currency of that particular country

· You can buy goods or services online from most parts of the world, by shopping online or telephonically

· Ebay accepts payment through Paypal

· Paypal accepts practically all Credit and Debit Cards including Visa Electron

· Clickbank also accept Visa Electron Debit Cards

The Disadvantages of Having a Debit Card

· You don't have the Credit Limit of a Credit Card, therefore if you haven't got the money in your Current Account – you can't afford whatever it is you want to buy

· Some Debit Cards are Electron. Unfortunately, Electron cards are not accepted by all Providers of Goods and Services.

· WorldPay don't accept Visa Electron Cards

Having a Credit or Debit Card (known as plastic money) in your wallet is safer than carrying cash around with you.

Therefore, whether you choose to apply for a Credit or Debit card – use the above advantages or disadvantages for each then make your choice with your eyes wide open.

Bear in mind that the Credit Card companies don't care if you can afford to make the monthly payments or you can't. In addition, they don't care if you have a handful of cards to juggle. So, it's too easy to get yourself into some serious trouble.

Now Credit or Debit card – the choice is yours.

For Details of Credit or Debit Cards Available - Click the link below:

http://lancslass39.ecreditdirectory.com