Some Words to Defend Master Card

Poor Credit Mastercard

Today there are a number of different credit cards a person can apply for today and no longer is applying for these restricted to those with good credit history. Today even people with poor or bad credit have the right to apply for credit cards if they so wish. Generally the best lenders to apply for such a credit card through especially with poor credit are MasterCard and Visa. But why should someone prefer to choose a poor credit MasterCard over a Visa one?

In most cases these two credit cards are the same as they are generally both accepted by various retail outlets around the world. Although in a lot of cases you will find that the MasterCard is one that more people easily recognize and which is accepted in a lot more places.

But as well as being well recognized both these types of credit cards for people with a poor or bad credit history will be very similar. They will offer the user a lot of the same benefits and the rate of interest that they will charge on them will be much higher than on their normal credit cards. But however if a person chooses to use their MasterCard wisely and ensure that they make the payments on the balance outstanding regularly this will help them improve their credit history and help to reduce the rate of interest they pay on the card in the future.

Yet when you are considering applying for any kind of poor or bad credit, credit card it is important that you carry out as much research as possible before you sign on the dotted line. Today the quickest and easiest way to search for the best possible deals on these kinds of cards is online. Doing it this way you will be able to find quickly and easily those companies who offer a MasterCard credit card to those with either poor or bad history.

When you carry out your research as to which cards are available and which you may be able to apply for there are a number of different ones on offer, below we take a look at some and the benefits that they offer to you.

1. Continental Finance Gold MasterCard
This particular card provides you with the chance of a way to rebuild your credit rating by reporting monthly to the three main credit reporting agencies of how you are dealing with them. As well as this should a person make their payments on time each month and stay within the credit limit they have been provided with they may decide over time to actually increase the amount of credit limit a person has.

2. Orchard Bank Platinum MasterCard
This particular card does not require the applicant to pay any up front fees and will protect all purchases that they may with it. Again as with the Continental Finance poor credit MasterCard this company will provide monthly reports to the main 3 credit reporting agencies with regard to how you are managing your card with them. But the other advantage to particular card is that you pay a much lower annual fee for this particular one compared to others and the APR it charges on the card balance is very competitive as well.

Less Importance of Credit Score

Credit Score Mythology

There is so much information out there on improving your credit score that it is hard to know what really works. Because most people never take a class or fully understand the credit system, a host of myths and misinformation has developed regarding the subject. Some of these misnomers may seem logical or possible, but really have no grounds for proof. Sadly, much of this information is coming directly from sources that should know what they are talking about, such as bank representatives or mortgage lenders. For this reason, it is important to be aware of the basic credit score myths to keep from wasting your time or even hurting your score.

Perhaps the most common piece of bad information that people receive concerns their current accounts. If a broker or other individual claims that closing accounts will improve a credit score, they are completely flawed in their logic. Yes, having too many open accounts will reflect negatively on a score, but closing existing accounts is another matter. Once the accounts have been opened, the damage is done, and it is best to keep them open. Shutting accounts can actually hurt your score. The amount available to an individual is one factor affecting credit scores. When accounts are closed, the amount of available credit shrinks, making account balances seem larger by comparison. Paying down debt is an excellent idea, but in the process, leave opened accounts open.

Many people believe that checking your FICO score can actually hurt your credit. This is another common confusion due to the fact that certain inquiries can hurt it while others do not. Applying for new credit will often hurt your score, but ordering a copy of your report will not. Mass pre-approval inquiries also go unpunished. When a score reduction is caused by an inquiry of some kind, it will only change the score by 5 points or less, so even in this event, this is not a huge factor in your score.

Your ability to qualify for certain loans may be impacted by the use of counseling, however, many people think that counseling will scar your credit in the same way as bankruptcy. This is simply not the case. The most current FICO formula actually ignores counseling all together. This was a change that occurred due to a research study conducted three years ago that supports the fact that people using counseling did not default on their debts any more than other people. However, take note that using counseling might impact your ability to qualify for certain loans. Sometimes, counseling agencies make late payments to your creditors or settle for lesser amounts, and these things will show up on your score, but the use of counseling in general will not negatively change your credit.

These myths are some of the most widely accepted misnomers about the industry. Understanding their falsehood will help you to manage your credit more knowledgably or seek the right kind of help to repair your credit. If a broker, counselor, lender, or agent tries to feed you one of these myths, you might seriously consider how knowledgeable they really are about everything else involving your credit.

Do Not Let Deceive You!

Credit Repair Scams

Erase Bad Debt

Remove Negative Items From Your Credit Reportт

You've probably seen these headlines and others just like it promising to clean up or fix bad credit. For someone who suffers from a bad or poor credit rating, these headlines are certainly an appealing offer.

Imagine finally being able to buy that new car, get debt collectors off your back, and enjoy a new found freedom from your past debts.

Sound to good to be true ? It probably is. Once you fall prey to the credit repair offer and pay the hefty fees involved to clean up your record, here's what happens:

1) The credit repair scam artist contacts the credit bureaus and reports that the negative information in your file is false.

2) The credit bureau removes this negative information from your report while they investigate the claim.

3) The scam artist will then show you the cleaned up version of your credit report and ta-da your credit history has been fixed !

But here's what the scammer doesn't tell or show you. After the credit bureau completes their investigation the negative information is placed back on your credit report.

Negative but accurate information cannot be removed from your credit profile. Only incorrect information can be removed.

Accurate information remains on your credit file for a period of 7 years from the time it is reported to the credit agencies; a bankruptcy appears for a 10 year period.

Many legitimate companies exist that can help you with your debt problems. But how do you spot a scam offer ? Easy, they'll ask you for their fees up front. By law, credit repair agencies cannot ask for payment until they've provided the service they promised.

Additionally many states require that a credit repair service, whether they are for-profit or not-for-profit, must provide you with a detailed written contract, an explanation of your legal rights, and the opportunity to cancel any signed contract within 3 days.

Also, be aware that a credit repair offerт could be an attempt to steal your identity by getting you to provide personal information such as a Social Security number, bank account and credit card account numbers.

Always make sure you know who you are dealing with before accepting any offer to help you repair your credit. Those who don't can have their credit ruined further and create more debt problems.

Credit Card Telephone Marketing

Telephone Sales for Credit Card Rewards Programs

Often credit card companies have your phone number and they will attempt to call you to get you to buy more stuff from them or sign up for another credit card under the same account with a different name on it perhaps for a spouse. Telephone sales for credit card programs are quite common and many credit card companies partner with other companies who try to sell you stuff.

Often this infuriates clientele and nevertheless there is nothing the customer can do about it because they do actually do business with the credit card company already and that makes it within the law. What kind of things, credit card rewards programs?

Sometimes they give discount airline miles and sometimes they give discounts or prepaid merchandise cards and various large retailers. This helps the retailer, which is also their customer and it makes the credit card customer feel like they're getting a good deal even though they are get reamed by the high-priced credit card interest rates.

Telephone sales for credit card reward programs generally net about 10% of the people called and they know that since you already do business with them they can simply add costs on to your credit card. They also know those customers who pay their bills on time and therefore they know they will collect. Please consider this in 2006.

Student's Debt Problem

Avoiding Student Credit Card Debt

Students are valuable customers for credit card companies, as they tend to stay loyal to their first card and continue to make purchases with it for many years, despite having loans and not having jobs in many cases. In order to not fall into debt traps, students should avoid using the credit card barring emergencies. They should be aware of the after effects of using a credit card which would help them keep track of money in a better way.

Students should be aware of the fact that credit cards geared towards students often come with high interest rates and many unfavorable terms. This is largely due to high default rates among students than among other age groups. Another reason for the high rates is that students usually have limited credit histories. A point to note for the students is that the credit card should not be considered as a source of income. Even though students have good intentions of paying off their bills in a timely manner after they enter the workforce, such intentions are never realized. Most often, students lack money managing skills which hit them hard when they use their cards to the maximum limit.

Some of the credit cards issuers do not require parental approval for issuing credit cards to students. This leads to further mismanagement of money by the students as they are given access to a credit card with pretty high credit limits, which they assume to be their money and spend on various things. Instead, the use of cash is advisable, whenever possible. Debit cards are good alternatives for college students. They allow retailers to deduct the money from the purchaser's bank account immediately. They work at ATMs too, if the student requires cash.

Thus, try not to take up a credit card in the first place, and if you do take one, try to clear the bills within the payment due date. Because, if you don't, you could be fighting your way out of debt longer than getting your way through school.

Credit Bureaus. Do They Like You?

Establishing Credit

Establishing credit is very important. Whether you have previously had a good credit standing and lost it, or you are just beginning to accumulate credit and establish a credit rating, a few standard concepts will help you establish a good credit rating.

The principle way that a lending agency obtains information about your credit history is through one of the credit bureaus. There are three nationwide credit reporting agencies in the United States that handle this, and they are Equifax, Experian, or TransUnion. These agencies collect your financial information from anywhere that you have developed a payment history. When purchasing anything on payments, these three credit reporting agencies keep a permanent record.

When borrowing money and establishing credit, you must be able to prove to the lender these four things:

1) Stability - You must prove that you can hold a steady job with a dependable income and that you have lived in the same place for a certain length of time.

2) Ability to repay - You must be able to demonstrate that your income exceeds your expenses.

3) Assets - Lenders will look more favorably on your application for credit if you have assets such as a home, car or savings account that can serve as collateral.

4) Credit references - Lenders will look to see that you have credit references and a good credit standing!

These four principles will help you establish good credit history, and from this, a credit score, to evaluate your availability to repay.

To maintain a good credit standing all purchases bought on time must continue to be handled in a timely fashion. To be responsible in your payments, you will need to prepare a budget from year to year to keep your finances on track; there is no way around it! Obviously you cannot spend what you do not make, so the easiest way to prepare your budget is to list exactly what is coming into your household and where that money is going.

Make two columns on a piece of paper. Title one side "Inflow" and the other side, "Outgo". Under the heading "Inflow", list all the finances that come into your household including paychecks from employment, part time jobs, side jobs, alimony, child support, everything. On the other side, make a list of your expenditures, and be as thorough as possible. List rent or mortgage, utilities, food, gas, clothing, credit cards, loans until you have created a list of everything that is spent in a month.

When you total each side, the Inflow should be larger than the Outflow. If it is not, then you will have to make some adjustments. It will have to come back into line because you cannot continue spending more than you are making!

Once you accomplish the budget and determine the financial level that you can maintain, when you make more money - you can make more purchases. If you overextend yourself for a temporary purchase, you run the risk of ruining your permanent credit history that you?ve been working so hard on. Think before you spend, and save your credit cards for emergencies by paying the entire balance each month. A good credit score is worth its weight in gold in today?s society where everything is bought on credit or credit cards.

Got a Bad Credit History?

Quickly Improve Your Credit History

The purpose of this article is to help you understand some of the ways to improve your credit history quickly once you find out that you have a bad credit rating.

A Bad Credit History Sets the Stage
A history of bad credit can be a major headache and a recurring nightmare. You are almost solely limited to using cash for your financial transactions.

A bad credit history will make it very difficult for the usual financial transactions. These include bank loans, buying a car, buying a house, leasing an apartment or house and, of course, applying for a new credit card. Businesses, banks and landlords will turn their backs on you once they review your credit report. There is only one thing to do to get your life back to normal and that is to work diligently to quickly raise your credit rating.

Upgrade Your Credit Rating
What can you do to improve credit history fast once you're credit rating has taken a beating? Where do you start? Unfortunately, it's a catch 22 because you need a good credit report for many of these options.

One option is a credit counseling service because they can handle almost any poor credit history. There are two major benefits to using a credit counseling service.

These services are experts at understanding the reasons for your poor credit ratings. Secondly they are experts at suggesting proven ways to begin the process of raising credit scores.

There are millions of people who have had bad credit histories and many of them have used the services of credit counseling services. So do not be ashamed, there is a good chance that your next door neighbor or a family member has used one in the past.

Collection Agencies - The Enemy
One of the initial steps recommended by credit counseling services includes tidying up previously identified past debts. If you've missed payments or forgotten about some old bills, these need to be cleared up as well because they create major consequences to your credit history.

Your creditors have long memories and they will turn your problem over to collection agencies. Collection agencies are tireless at collecting money from you and once they have given up on you, they will further damage your credit history.

By law, you must be made aware of any outstanding debts being handled by a collection agency. But if they cannot contact you because you have moved or you have a new phone number, they may decide to report you to the credit bureaus further damaging your credit even though you know nothing about the problem.

Conclusion
In summary, to improve credit history fast, the first step is to resolve forgotten and old bills. Then you must show a good faith effort to pay these off by paying a little each and every month consistently.

For credit cards, you must make the monthly minimum payment or more and if you do not have a credit card, if you can obtain a secured credit pay the monthly minimum on it. Credit counseling services are highly recommended. They help people like you every day and know the ins and out of the credit bureaus and can make many proven suggestions to help.

Some Words about Credit Card Fraud

Introduction To Identity Theft

Identity theft is no longer an unusual occurrence. It is rapidly evolving and is quickly becoming a socio-economic inevitability. Identity theft is the fastest growing white-collar crime. It is a crime in which an impostor obtains key pieces of your personal identifying information such as your Social Security number or driver's license number and uses them for their own personal gain. Identity pirates can gather all sorts of confidential information about you by prowling the Web. They begin with the misuse of your personally identifying information such as your name and Social Security number, credit card numbers, or other financial account information. Once they have this information, identity thieves may rent an apartment, obtain a credit card, or establish a telephone account in your name.

An Identity thief can take your personal information from your mail box or your home. Identity theft is bad enough but right now it is also pretty much of a cottage industry relying primarily on techniques like dumpster diving. Identity theft laws and crack-downs, while improving, are definitely not where they should be. It's hard to pin down, because each law enforcement agency may classify ID theft differently--it can involve credit card fraud, Internet fraud, or mail theft, among other crimes.

Detecting Identity Theft & credit card Fraud

A key way to detect fraudulent accounts is through credit monitoring / reports. Review your credit information regularly (free annual reports are available from the Credit Reporting Bureaus) Visit your bank's, credit card issuer's or biller's web site(s) frequently to monitor regular account activity. Victims of identity theft don't normally know they've been victimized until:They are contacted by a collection agency over past due accounts they never knew they had; significant charges may show up on a credit card bill for purchases they never made; a lender tries to repossess a car they didn't know they owned; or they are contacted by the police after a crime is committed in their name. It is important to resolve fraud promptly, minimizing losses and protecting your credit record. You should ask your financial provider about zero-liability guarantees against fraud and dedicated resources to help you resolve and recover from any potential losses. Some banks will work with you if you have an account at their bank. If you are a Victim of theft, promptly notify your financial providers, begin monitoring your accounts more frequently, and place an "alert" at all three credit bureaus (Equifax, Experian or TransUnion). when someone uses your name, Social Security number, credit card number or some other piece of your personal information to apply for a credit card, make unauthorized purchases, gain access to your bank accounts or obtain loans under your name.

Problems On The Internet

Schemes known as "phishing'' use e-mail messages to lure unwitting consumers to Web sites masquerading as home pages of trusted banks and credit card issuers, corporate security specialists say. Online visitors are then induced to reveal passwords as well as bank account, Social Security and credit card numbers. The crimes ranged from the theft of a credit card number to more elaborate identity thefts used to secure loans.

Thieves have turned toward the theft of information, and specifically personal information, because with an assumed identity criminals can purchase goods and services at will using someone else's credit..

Social Security Issues

Do you use your Social Security number for identification. The identity thief uses key pieces of your information such as Social Security and driver's license numbers to obtain credit, merchandise and services in your name. Almost 50 percent of students have had grades posted by Social Security number. While there are many ways to get a Social Security Number on someone, most criminals start with a phone book. They may use your name and Social Security number to get government benefits. Theives may get a job using your Social Security number.

A new Social Security number may not resolve your identity theft problems, and may actually create new problems. Even if the old credit information is not associated with your new Social Security number, the absence of any credit history under your new Social Security number may make it more difficult for you to get credit. And finally, there's no guarantee that a new Social Security number wouldn't also be misused by an identity thief.

Fighting Back

Each of these actions places you at risk of being a victim of identity theft because each requires you to share personal information such as your bank and credit card account numbers, your Social Security number, or your name, address, and phone number.

1. Based on the latest findings, the Better Business Bureau, Wells Fargo, Visa and CheckFree have issued the following tips for consumers to protect themselves against financial identity fraud: Prevent access to your personal information
2. Replace paper bills, statements and checks with Internet (paperless) versions
3. Consider moving to an electronic bill payment service, such as your bank or biller's web site,
4. Stop sending signed paper checks through the mail.

Many of the most vicious cases, say analysts, involve corporate insiders who hijack sensitive personal information from corporate databases in order to begin picking people's pockets. Call and speak with someone in the security or fraud department of each company. Avoid using easily available information like your mother's maiden name, your birth date, the last four digits of your Social Security number or your phone number, or a series of consecutive numbers.

Be aware of how information is stolen and what you can do to protect yours, monitor your personal information to uncover any problems quickly, and know what to do when you suspect your identity has been stolen. They can steal your wallet or purse, or convince you to give out personal information. In short, any piece of paper you no longer need that contains personal information. Do you use your personal computer to buy merchandise or purchase tickets for travel, concerts, or other services. This is the same personal information that identity thieves use to commit fraud. Once they have your personal information, identity thieves use it in a variety of ways.

Fixing The Damage

Victims are spending more time to resolve identity fraud cases, which has increased from 33 hours in 2003 to 40 hours in 2006. Typically, victims don't have to pay debts incurred by another person, however that's not the point, the time, the stress, and the many sleepless nights you have to go through to clean up your record that really hurts most victims. It can take months and even years to undo the damage inflicted on the reputation of the victims and the stressful trail of destruction that takes its toll.

Prevention Is The Best Remedy

Experts say that the solution to preventing identity theft is a simple, three-step process:

1. Curb the use of the Social Security number as a unique identifier for business use, a measure that has been introduced in Congress and defeated several times over the past decade
2. Force credit-granting agencies to require more identifiers and shore up their credit card policies
3. Restrict all selling of personal information by credit bureaus, state and federal agencies, and marketing firms.

Preventing identity theft is not as hard as it may seem. From a personal perspective, make sure that you take advantage of technologies that enhance your security and privacy when you use the Internet, such as digital signatures, data encryption, and "anonymity" services. Companies and their management need to be more aware of how they're putting their customers at risk.

Obviously, identity theft is not only of great concern for the individual affected, but by the financial institutions that are deceived by this practice. According to the FBI, Identity Theft is the fasting growing crime in the US. And it is is costing an estimated $6 Billion.

Credit Act Main Features

The Basics EVERYONE Must Know About Consumer Credit Act

Unknown to many people, the consumer credit act is one of the most powerful privileges that you have. It is a tool you should use when you trying to correct errors in your credit report as well as dealing with your debt problems. If you know how to use it properly, it will help resolve all your credit and debt problems.

It is widely accepted in the U.S that you can buy anything you desire as long as you agree to pay back the loan and the accompanied interest. This opportunity has led many Americans into debt. Consequently, many of these people have a bad credit rating or score. This means that they can't have access to loans, credit cards or mortgages.

The consumer credit act's protection are only applicable to contracts between the following group of people:
тАв traders and individuals
тАв individual traders
тАв partnerships
Unincorporated organizations

On the other hand, the act's protection are not applicable to accords between traders and limited companies.

What do you stand to gain from the consumer credit act? As a consumer, you are protected from possible exceptional practices. In addition, you are protected from incompetence on the part of those who give credit on a commercial or professional basis. Unfortunately, many consumers out there are not aware of the immense benefits that the act gives to them to correct the mistakes.

All dealers who make regulated contracts are required by the law to hold a license given by the office of fair trading. The law also stipulates that debt advisors, credit brokers and similar bodies hold a license.

In addition to the need for you to acquire necessary and additional information on the consumer credit act, I will like to say that it is useless knowing and acquiring the information without applying it. Hence, get the information and make use of it when necessary.

Changing Credit History

The Truth About Creating An Alternate Credit File

If you have been doing any research about how to repair your credit, you have probably heard people talk about creating an alternate credit file. This is something that was so prevalent a few years ago that the Federal Trade Commission launched an operation against businesses doing this called "New ID Bad Idea."

The premise behind this was companies would offer people with bad credit a brand new credit file by opening a new file for them using an Employer Identification Number (EIN0 in place of their Social Security Number (SSN). The companies doing this even went so far as to tell their clients that this was sponsored by the federal government.

What they would do is get an EIN from the Internal Revenue Service for their client. They would then tell the client to apply for credit using the new EIN and a new address. When the customer would do that, the credit would run a credit check. The credit bureaus would not find an existing file for that EIN at that address. So a new file would be created, effectively giving the client a clean credit file. The only problem is this is highly illegal.

How you can create an alternate credit file legally.

There is a technique that you can use which is similar to this, but not illegal. You see anyone can decide to start a business, and a business is allowed to apply for credit. So to create a new credit file legally, you can set up a business under the form of a Corporation or an LLC. This can be done in most states through the Secretary Of State.

You can apply for a business even if you do not have a business. You could use your last name and place the word "holdings" behind it. For example, "Kamagra Pharmacy Holding" You can do this legally an have the business keep title to your house, or vehicles, or anything else you want. You should consult with an attorney and possibly an account about doing this before you actually do it.

Once your business receives the entity designation you seek, you can apply for business credit in the name of your company. Now you have just created a new credit file legally, and have not violated any laws to do so.

Payday Loan and Credit Card

More credit card Applications Turned Down

A payday loan is the perfect way of funding a one-off purchase when you don't want lingering debts and credit card bills accruing interest like there's no tomorrow. Payday loans range from $80 to $1,000, and with interest rates reasonable and affordable, you will manage to pay off the loan far quicker than paying back escalating credit card debts.

Sometimes you want quick access to money to fund a one-off celebration or unexpected household costs, for example, but you don't want the incentive to remain in debt offered by a credit card. You want an instant loan which can be paid back on pay day in short, a payday loan.

Also, it is well known that people have to overcome bureaucratic hurdles and wait for days on end to receive a new credit card, which can prove especially problematic if you want a quick and moderate injection of cash. Yet new research reveals that 1.7 million credit card applications were turned down in the past year alone.

Not only does this reveal the difficulties facing millions of people in gaining access to credit cards, it also highlights how credit cards have driven people to accumulating uncontrollable debts: financial firms are tackling this collective debt by tightening their lending policies.

Being turned down for a credit card is unsettling and it is difficult to find out why you were rejected. Sean Gardner, MoneyExpert.com's Chief Executive, explains: "The days of easy credit are drawing to an end for many people. It is important to understand your credit profile and be realistic about the products that are suitable for you.

"The risk of being declined when you apply for a credit card, loan or mortgage appears to be rising among those applying to the wrong type of lender."

MoneyExpert's research suggests that many people are simply unaware of any source of loan except credit cards. It found that 60 per cent of people would apply again if an application was rejected, with 12 per cent saying they would apply again to the same lender and 48 per cent to another company. Only 20 per cent would give up altogether. Of the remaining 20 per cent, 18 per cent said they didn't know and two per cent refused to answer.

A reputable company will treat each individual case as it comes and get back to you immediately, leaving no room for ambiguity. You will never pay back any more than is explicitly stated and fees do not exceed $25 for every $100 borrowed. What's more, there is no risk of seeing weighty longer-term commitments accrue because you pay a payday loan back on the best day of the month: payday. With a credit card, in contrast, you are allowed so much time to pay back your bill that before you know it your monthly interest payments have skyrocketed and your personal debt gets out of control hence the reason credit card companies are rejecting so many applications. With a payday loan there is no chance of that happening.

Credit Reputation How to Improve It

Improving One's Credit Reputation

People who have been burdened with a history of adverse credit know that it is a surefire way to feel like an outcaste. Take for instance, the case of a person who is afflicted by a disease that is very infectious. You will find that even after he has recovered, people around him continue to assume that he is ill. As a result, they find it difficult to stop behaving cautiously around him. Having a bad credit history is a lot like that.

Lenders assume that a person with bad credit will be permanently unreliable. As a result, a person with a bad credit score gets treated like a second-class citizen. It is sad, but most definitely true. Most lenders may fail to realize that the person might have had a good credit standing earlier, but developed adverse credit due to unavoidable circumstances. Instead, lenders will choose to concentrate on the fact that at the given point of time, the loan seeker's credit background is not good enough for him to be able to borrow money. However, companies and banks today are slowly feeling the need to extend loans to all kinds of people. Hence, they have begun extending their services to everyone in need of financial aid. It is clear to all that here is a great trend that will benefit customers. Finally, people with adverse credit have a fair opportunity to rebuild their credit histories. They can finally assert to the world that financial difficulties need not prevail over infinite periods of time.

Most times, a person with bad credit is looking for financial aid to help him tide over the trouble he is in. Timely repayments could help one a great deal in rebuilding credit. There are many kinds of personal loans that can offer financial aid for those who are starting a new business venture or are looking for a turnaround. If a person with bad credit were to opt for a secured loan and place his property as collateral, his bad credit would vanish and he would no longer be treated like an outcaste. The only reason why banks are cautious while dealing with people with bad credit records is because such borrowers generally earn the tag of being irregular. In the case of secured loans, the bank has a hold on the borrower and is assured that the latter is financially stable enough to gather funds to repay the loan.

Personal loans issued to persons with adverse credit are a lot more expensive than other loans. Such borrowers are asked to adhere to the payment schedules that have been drawn out. This is because bad credit borrowers are high risk borrowers, and banks cannot afford to do charity here. Taking the guidance of financial advisors would help people with adverse credit make better decisions in terms of the kinds of loans they should opt for. Multiple loan options are available these days. Some lenders offer loans that are considerably cheaper than others. So, it is up to the borrower to decide which would suit his needs better. If people who have bad credit records avail of personal loans and do not default on payments, their credit scores would benefit significantly.

Card Processing Costs

Shops Criticise Banks' Card Processing Costs

Banks have come under attack from retailers who have accused the financial institutions of promoting plastic rather than cash in order to boost their profits from the use of debit and credit cards in shops.

The high cost of processing debit and credit card transactions in shops has been roundly criticised by The British Retail Consortium (BRC), which points out that every бё20 transaction costs them approximately 17 pence in charges. However, if they were to bank бё20 cash the total charge to the retailer would only be four pence. The director general of the BRC sees this as extremely unfair saying: "Banks have abused their position for many years by imposing higher charges on retailers for processing card payments than banking cash. Clearly banks see using cards rather than cash means a further boost to their profits."

BRC research has found that debit and credit cards are used for 46% of all transactions in the retail sector. That means that cash is still the most popular way of paying for goods at the checkout. However, payment by cheque in shops, popular as recently as five years ago, has all but died out and has now been replaced by much easier to process debit and credit card transactions. Ease of use, speed of transaction and other added benefits have helped the general acceptance of debit and credit cards by customers.

One such benefit is that in order to promote their use, most credit card deals now include some level of purchase protection, allowing shoppers a form of insurance for the goods they buy using their card against breakage and theft.

The BRC criticism comes after the Office of Fair Trading (OFT) announced earlier this year that it would launch an investigation into the fees charged by the card issuers for processing debit payments, and also look into the charges that Visa and Mastercard apply on credit card transactions.

Of course, none of that makes any difference to the customer in terms of the way they compare credit cards in their wallet and decide which one to use, as the fees are invisible to the buyer - being totally borne by the retailers instead. But, retailers argue that prices are being pushed up because the banks are taking so much of their cut as transaction charges. This argument looks like it will run and run, but regardless the outcome is unlikely to improve the lot for the consumer; it is merely to decide who takes the profits - the banks or the shops.

Finance Guide for Students

Student credit card Debt: A Survival Guide for Students

College is the last care free step before real life begins, or at least it should be. Students should be able to go to sleep each night with the only pressing responsibility being the English exam tomorrow morning. They should still get to live in a world where although they can't afford much more than the occasional late night drive through Taco Bell or downloading the latest hit single, at least they aren't worrying yet about paying a mortgage, most forms of insurance, utility bills, or the college loan that is allowing them to get an education.

Unfortunately, for many college students this is not the case. Many are already burdened with financial pressure because they are accruing credit card debt, in some cases over $7,000 worth of it. Increasingly, students are even coming to campus with credit card debt in hand. Consolidated Credit Counseling Services Inc. reports that 20% of freshman got their credit card in high school and nearly 40% sign up for one in their first year at college. With the abundance of on-campus, mail and Internet card offers giving low introductory rates, freebies, and bonus airline miles, it's not surprising to find that according to a 2001 Nellie Mae study 83% of all undergraduate students have at least one credit card and carry an average balance of $2,327.

The problem of high credit card debt has many implications for a student. Some end up dropping out of college all together so they can work full-time just to pay credit card bills. If they are able to stay in school, but have in the process ruined their credit rating, it can affect their ability to rent an apartment, afford insurance and even get the job that will help them to pay off their debt. Even relationships suffer as a result of financial stress. There is also a psychological affect on students. The stress can lead students into depression, and in a few cases has been a contributing factor to suicide.

Of course it hasn't always been like this. According to Dr. Robert D. Manning, Professor at Rochester Institute of Technology and author of credit card Nation, in the late 1980s student credit card limits were around $300-$500 and parents were required to co-sign. But when credit card companies began making a lot of money during the 1991 economic recession, they started looking for new markets and found it in the student population. Issuers dropped the co-signing requirement and started raising limits, which, when combined with parents' increasing financial pressures and higher costs of education, gave students a way to fund themselves through college.

And students are an easy market to tap into. In his article credit cards on Campus, Manning writes, credit card companies encourage fantasies of easy money because students are so profitable: teens have financial naivetУЉ, high material expectations, and responsiveness to relatively low-cost marketing campaigns, high potential earnings, and future demand for financial services.

Credit companies advertising to the vulnerabilities of young students is not the only factor that goes into the current trend. Most students simply have not received the education in personal finances and credit card management that they need to meet the onslaught of offers. According to Consolidated Credit Counseling Services, Inc only 15% of high school students take a personal finance class. And, according to the Jump$tart Coalition for Personal Financial Literacy, a non-profit organization which promotes financial literacy at the K-12 level, parents for a variety of reasons are not talking to their children about the privilege and responsibility that goes along with using a credit card.

Dr. Carol Carolan, Executive Director and Founder of the Center for Student credit card Education, says that the single best thing parents can do to help their children avoid the pitfalls of credit card debt is educate them. Parents need to talk to their children about it early on and regularly. Dr. Carolan suggests the following tips for parents.

When a child has reached an appropriate level of maturity and understanding of personal finances, co-signing a credit card can be very beneficial.

Get a credit card with a low limit and no annual fees (visit the "Card Reports" section of our website to comparison shop for student credit cards).

Discuss with your child the details of the credit card including interest rate on purchases and cash advances. Review all the expenses every month.

Show your child what finance charges might apply if the balance is not paid in full and on time. This includes any interest, fees, and penalties.

Be a good role model.

Experts don't all agree on the appropriate age for a first credit card. Dr. Manning, for instance, argues in his article credit cards on Campus that having them at an earlier age may actually result in fewer debt problems later on. Other experts argue that waiting until the junior or senior year in college is best. The bottom line parents need to realize is that once students reach the college campus, they will be inundated with credit card offers and will be able to get a card regardless if they are supported financially solely by their parents.

And talking with students involves more than mere calculations of fees, interest rates, and balances. Students need to understand the messages they receive through advertising, the difference between a want and a need, as well as the lure of money. Give students a healthy, realistic perspective of money and material possessions and they will be better equipped to make wise decisions.

Universities and colleges play a huge role in the current trend of high student credit card debt. Some invite credit card issuers onto campus because they receive revenue as well. But others are starting to recognize the problem and are restricting the activities of credit card companies on campuses. Manning states in his book credit card Nation, that During the academic year 1999-2000, over 400 colleges and universities formulated official policies against on-campus credit card marketing and nearly 600 other schools are considering similar restrictions.

Some institutions like Rochester Institute of Technology (RIT) and the University of Central (UCA) Arkansas are even beginning to require classes in personal and consumer finances. Mary Ann Campbell, CFP, professor of personal finance at UCA and professional speaker with Money Magic, Inc., has a mission to educate students, educators, and adults about money. She is currently working on her dissertation about college students and credit card debt. Campbell is researching the best methods of reaching college students through a high impact presentation warning them of the perils and privileges of plastic. Like other experts, Campbell is not against students having credit cards. In fact, she says it is easier to get one as a student and can help them build the good credit history needed after graduation. But students do need to be educated. Campbell gives the following tips and reminders for students.

There is true magic to compound interest when it's working for you (as in an investment or savings account), but true devastation when it's working against you (as in credit card debt). Even when you buy something on sale, the interest alone can double the price.

Account for everything. Keep records of each credit card including the interest rates, fees, balances, due dates and purchases. Campbell suggests a good way to do this is to setup a spreadsheet in Excel. This will also keep you organized so you don't miss another payment.

The only way to get out of debt is to stop charging and always pay more than the minimum. If more than one credit card has an outstanding balance, then begin paying off the one with the highest interest rate first, then go to the next highest interest card, and so on.

If in trouble, talk about it with someone you trust and respect. This could be a parent, teacher, or friend. Hiding it doesn't make it go away.

Credit scores can make all the difference in the world for good or bad. It can take many years to recover from a bad credit score.

Learning to use credit cards responsibly is a gift. Seek to gain knowledge and wisdom. Credit is a privilege and it is the student's personal responsibility not to let it become a peril. Campbell says, The magic comes from you.

While in college, students need to think outside the box, but live financially within the box.

credit cards can be an invaluable tool for a student. While providing security and convenience, if used wisely a student will build the good credit rating that is needed to secure other consumer loans, jobs, and lower insurance rates after graduation. Dwayne Blew, a member of CreditBoards, a forum dedicated to credit issues, is one example of a student who didn't buy things he didn't need and paid his credit card balance in full each month during college. Now he is reaping the benefits of a good credit score. Dwayne says, One of the reasons you're going to college is to improve your lifestyle once you graduate. After putting so much effort into school, why let something small like a credit card end up ruining it all?

Many excellent resources exist to help students both avoid and get out of the credit card debt trap.

Comparing credit cards is an important step in finding the best one to suit your needs. CardRatings.com makes this search simple and easy by allowing you to research the best rated student credit cards.

Consider utilizing the services of a nonprofit credit counseling service. Be very careful when considering a credit counseling service, though, as many counseling services are scams, including nonprofit services.

Consolidated Credit Counseling Services, Inc. has a free, downloadable Budgeting Guide for students.

Dr. Carolan has written a booklet titled The ABCs of credit card Finance Essential Facts for Students that can be ordered online and it will be mailed to individuals free of charge.

Message boards or forums are a great source of information. You can post questions, concerns, or comments and a real person will respond with real life information. Campbell says they are a gift and can even become a support group. You can join the main-card.blogspot.com Message Board for free.

Even if your school doesn't require a personal finance class, take one if it's offered.

The financial decisions students make in college have a long lasting impact on their future. They are learning how to use and manage various financial tools vital for life in the real world. When used wisely, credit cards are one tool that can open the doors for a life unencumbered by financial burdens.

Bad Records

Correction Of Incorrect Credit Records

It is common knowledge that information all your day to day financial transactions goes on to your credit report. But you cannot be 100% certain that the credit reference agencies hold the correct information on all your financial dealings. Incorrect or outdated information on, say, long ago missed payments which have now been resolved, could affect your credit rating in the future. So how do you go about correcting this wrong?

One of the ways to prevent this from happening is by always checking your credit card statements, from time to time. When you do this, you are just not ensuring that you are not a victim of identity fraud but also making sure that correct information of your credit card/s transactions have been posted to the credit reference agencies.

Keep all the receipts of the current transactions that have been made on your credit card/s so that you'll be able to counter check the statements when it arrives by post. If you do find any areas that you wish to dispute, then you can contact your credit card issuer while it is still hot. These types of customer disputes can be resolved quickly if you have your receipts in your possession. If the credit card provider accepts the error, then they will not only be obliged to put the record straight but also inform the credit agencies of their error, within a period of 28 days.

If the disputed item cannot be resolved, you can then contact the credit reference agencies directly by sending them copies of your receipts/paperwork along with a copy of your credit report. They, in turn, will carry out their own private investigation of your case. If it transpires that incorrect information has, indeed, been supplied by your credit card provider, you credit report will be duly amended and your record put straight.

Some Useful Tips

Some Tips On Using Credit Cards

After getting credit cards, it can be very tempting to go on a spending spree and buying all sorts of new things that you otherwise wonт•—t buy before. So, chances are there that you end up shopping a lot and go beyond your affordability level. Ultimately you may be in debt. So, you must resist that temptation and use your credit cards wisely. It may be difficult; but proper planning will be helpful.

To begin with, you have to remember that you should not spend more than what you can afford. You should have a budget to figure out your affordability. Subtract your monthly expenses from your monthly income. The result you get is your disposable income; you can afford to spend on shopping. Anything beyond this you spend may cause you trouble; remember this when you use your credit cards.

However, credit cards give you the leverage to go beyond the surplus amount. But you should not exceed your disposable income just because you can do this with the credit cards. Over usage of the cards may take you to above the credit limit and wonт•—t be able to spend any more, even if you have an emergency. And being unable to use the credit cards on emergencies is something really pathetic.

Do not use the credit cards on impulse. Unless it is very urgent, wait for some days and shop when you get some rebate or cash back. Very often, credit card companies give special offers; you can make use of these offers. This does not mean that you should not use your credit card except in emergencies. Rather, you should use your credit cards periodically. Finally, do not delay in paying off the bills. Delay in paying bills may make you pay some extra that is just money going down the drain.

Cristmas, month after

Credit cards and Christmas

So what are you to do when your liquid cash refuses to flow beyond its financial frontiers? Take heart and donт•—t worry because now is the time to review and obtain good credit card deals.

The media, be it the internet, television, radio, newspaper or magazine, have a surfeit of advertisements offering various kinds of credit card deals. Many of these credit card deals come with either 0% APR which can last from any period between six to fifteen months or a higher lifetime APR (for example 4.9%). More often than not, credit card issuers rely on their potential customersт•— lack of awareness in reviewing all the credit card options available on the market. So, if you are not already on a 0% APR or a higher lifetime APR credit card deal, and you want to obtain, say, a credit card for the first time or wish to transfer an outstanding balance from your current credit card, then it would be prudent to shop around first before deciding on a credit card deal.

So, with Christmas round the corner, it would be wise for the Father Christmas in you to hunt for that 0% APR credit card deal where you do not have to pay any interest during the currency of that credit card deal. All payments made by you during this period will go to the reducing of your outstanding balance. But if you want to transfer the outstanding balance from your current credit card to a new credit card offering the 0% APR deal, do remember you will be charged a balance transfer fee which will be typically between 2% and 3% of the amount transferred. But if by the end of the 0% APR credit card deal you have not managed to clear the outstanding balance transferred and now wish to transfer the remaining balance to a new 0% credit card deal, then it is likely you will incur yet another balance transfer fee.

Alternatively, you could think of considering the lifetime APR credit card deal on balance transfers. Although you will have to pay a higher APR, this very APR will remain the same percentage throughout the life of the balance transfer i.e. until the amount has been repaid in full. You will also be charged a balance transfer fee which is usually between 2% to 3% of the amount transferred. The good news is that, unlike the 0% APR credit card deal, you will not incur any more balance transfer fee after this transfer.

So now you can go ahead and be Father Christmas by spreading the good cheer around! A big Ho-Ho-Ho to you and Merry Christmas!

Identity Fraud

Credit Card Identity Fraud

This type of fraud occurs when a fraudster has an easy access to your bank details either through your credit card statements or utility bills and craftily uses this information to make an application for a credit card in your name. Once the application has been approved, the fraudster is then able to purchase goods and services in your name. Sounds ghastly, doesn't it? But the ugly truth is that you then become the unfortunate victim of identity fraud. So how can one protect himself or herself from becoming a victim? Here are a few possible ways to ensure that this unfortunate event never happens to you:

First and foremost, remember to shred all official documents that you no longer need to keep in your possession. If you were to simply scrunch up your official document into a ball and then bin it, the fraudster is likely to scavenge your bin, smooth out the creased document and hey presto, all your personal details has, like magic, slipped into his hands! Shredding is a good way of avoiding such a terrible occurrence from happening.

Always remember to check your credit card statements every month so as to ensure no unauthorised transactions have taken place in your name. If you see a suspicious looking transaction recorded in your statement, report this fact immediately to your credit card provider and to the police.

Get the most recent copy of your credit card report and check if there has been any credit search against your name. This will give you a vital clue if anyone has made an application for a credit card in your name. If you find this to be the case, report the matter to the credit card provider immediately. When you move house, remember to inform all official bodies that you no longer reside at your old address. You could also contact Royal Mail for details of their re-direction service.

And lastly, never, ever, reveal your PIN to anyone. And don't make the mistake of writing it down because if others, whether they are known or unknown, get to read it, they will have an easy access to your bank account. Memorize it instead. Do keep in mind, that the chip and PIN method is an excellent anti-fraud measure to keep potential fraudsters at bay. Without your PIN, the fraudster will be unable to purchase goods and services at retail outlets or withdraw your cash from the ATM.

Credit Card Counseling

Credit Counseling Options

So what is credit counseling or credit counselling?

It's a debt help process offering education to consumers about how to avoid incurring debts that cannot be repaid. The process is actually more debt counseling than a function of how to handle your credit more effectively or efficiently.

In the UK there is a regulatory body for these services called the CCCS or Consumer Credit Counselling Service. The CCCS is a charity, so you won't pay a penny for any of their services - whether you need immediate debt advice tailored to your situation or more general budgeting advice.

So what options are available in credit counselling?

The following options are justa few options available and are typically for debts over 15,000. However a credit counsellor will be able to help even if you debts are lower than 15,000 and may even suggest a DMP for this purpose.

Debt Management Plan (DMP)

Credit counseling often involves negotiating with creditors to establish a debt management plan (DMP) for a consumer. A DMP may help the debtor repay his or her debt by working out a repayment plan with the creditor. DMPs, set up by credit counselors, usually offer reduced payments, fees and interest rates to the client. Credit counselors refer to the terms dictated by the creditors to determine payments or interest reductions offered to consumers in a debt management plan.

Individual Voluntary Arrangement (IVA)

An IVA is a formal and legal agreement, and is designed to help those who have high levels of debt - that is, those with a large amount of debt that cannot feasibly keep up repayments based upon their income - to benefit from lower monthly repayments and the opportunity to free themselves from debt in a far shorter period than they would otherwise be able to. With an IVA, the idea is that you reach an arrangement with all of your creditors with regards to how much you can afford to repay each month based on your income and outgoings. You then pay the agreed amounts to each creditor for a period of five years, after which the remainder of the debt is written off. The amount of the total debt written off can be as high as 75% depending on circumstances.

Conclusion

An IVA or DMP are just a few of main options offered by a credit counsellor. In extreme situations a bankruptcy may be suggested but this would only be in the most extreme of cases.

Credit counselling is certainly something you should consider, especially if you are already struggling to keep up with repayments on existing debts. Credit counseling will certainly give you peace of mind and the sooner you act the sooner you can start living a debt free, and stress free, life.

Loan Debt Problems

Credit Card Debt Problems

It is not uncommon for people these day in age to have money problems, or more to the point, debt problems. Or if you want to go even more specific, in this day and age, it's not ratified to find that many people have credit card debt problems. This seems to be the up-to-date madness of the one hundred you get a remark card, you buy, buy, buy; then you pay up up off only the unfinished minimum on your credit card describe statement at the end of the month, and repeat the process all over again.

Which, if you will but take a step back and look at it logically, is only release to lead to disaster upon disaster occurrence to poor you who is unable to pay up off your credit card, and which will ultimately, lead you to have credit card debt problems.

This unfortunately, is the type of life we lead these days, and something that we just can't seem to get out of. Most of us spend more per calendar month than we have available to us, and then try to fight and keep up with payments to pay off the excesses of last month.

credit card debt problems are very leisurely to fall into, and many of us do this virtually without thought about it. We go out, we see something we want, and hey presto! because of our credit card being with us at all times, we are able to give in to our desires and purchase what we want, when we want, without a thought to the consequences.

The jest to getting out of all your mention card problems and staying out of them, is to first realize where you are expiration wrong. Once you have pinpointed the fact that you are genuinely spending more than you earn, or more than you can give to serve up out for a month, you can then go about trying to set things to right direction. And the best way to do this, is to start by leaving your credit cards at home; or, if you find that this is a problem for you, then have your credit boundary capped.

This is the only way to get out of any existing advert card debt problems which you might have leave the cards at home or ceiling your bound until you can yield off that debt you have accumulated. In this way, you will be able to decrease your existing credit card debt problems without adding to them! And once you have realized this, you can then set about making sure that you don't do the same thing again by going away your credit cards at home.

Find what you were looking at for? I trust this article provided good information. If not, have a look at this blog. You will find tons more information there.

Perfidious Traps of Credit Cards

Avoiding credit card Traps

The next time you open your credit card statement, take a closer look at the small insert titled changes to your credit card agreement. You know the one I'm speaking about. It's that small, folded paper written in legalese that you promise to read some other time (but of course that time never comes) or you just discard it with the other junk inserts.

First and foremost you must understand that using your credit card after you've received this notification results in your automatic agreement to the new terms in the notice. To prevent these new terms from affecting your account you must stop using that credit card immediately or by the date given in the notification statement.

The most common modifications to credit card agreements include new APR's (annual percentage rates), new fees and/or changes to existing fees, or a change to the grace period on your account. The grace period is the number of days during which any credit used for purchases may be repaid in full without incurring a finance charge.

Not knowing or not keeping track of the dollar amount limit on your card is another trap you should avoid. credit card issuers will allow you to charge a small amount over the limit set on your account. However, don't be surprised when you get hit with an over limit fee, usually around $35.00 or higher, on your next statement. Also, be prepared for your APR to be increased if you go over your credit limit.

You'll also trigger an increase to your interest rate if you miss your payment due date. Some companies consider your payment late if not received by noon or 1 p.m. on the date due. Along with the higher rate, you'll also pay a late fee of $29 on up. Be sure to use the company's preprinted envelope when sending your payment. These envelopes allow the pre-printed bar code to be scanned by the post office so that it can be delivered more efficiently.

If you've counted on those few extra days from the time you mail your check and the time the check clears your bank, beware! Many credit card issuers have switched from the traditional method of processing checks to a new electronic process. This new system shaves off a day or more from the traditional method it normally takes for your check to clear by electronically debiting your account.

If you're considering paying your credit card bills online, check to see if any additional fees will be charged for using this type of payment. I recently received an e-mail message from one of my credit card companies announcing how easy it would be to make my payments online. Included in fine print at the bottom of the e-mail was this note - fee of up to $14.95 may be charged for this service and will be deducted from your checking account. Hmmm, spend 37 cents on postage and mail my payment five days before the due date or pay now and get charged an additional $14.95 fee? I'll bet you can guess which choice I made.

Taking the time to carefully read and understand your credit card agreement now will help you save money by avoiding unnecessary fees or climbing interest rates later down the road.

Credit and Credit Score

Using Credit To Build Credit Scores

Many experts agree that restoring credit scores often depends on how wisely you use credit after a financial bump in the road. Obtaining credit when one has damaged credit is not as difficult as one might think. There are many unsecured and secured credit card offers that are designed specifically to help you restore your FICO score to excellent levels. If you have damaged credit, I strongly urge you to investigate offers of credit that are specifically designed to build credit scores. But, be forewarned, you must use the cards wisely or they will have the opposite effect, one other than intended.

What follows are some important tips for using credit cards wisely. The advice below is aimed at those working to rebuild credit but it is good advice for anyone.

• Try not to carry a balance on the card. Pay what you owe promptly and pay all of what you owe if you can. If you must carry a balance, pay more than the required minimum payment. This will help you avoid high interest charges and, over the long haul, will save you hundreds and perhaps thousands of dollars.
• Do not use your credit cards without keeping accurate records of your spending. Keep your receipts, write down your card use as you use the card in a place certain (I use my date book for this purpose). You should always know what you have charged and when any given transaction took place. Aside from helping to control spending this simple technique will help you avoid identity theft.
• Never use your credit card for consumable items. Don't buy groceries, gas, medicine, and so on. If you don't want to carry cash, use your debit card for these purchases. My rule of thumb is if the purchase has no lasting value to me or to my family I pay in cash or with a cash equivalent (debit cards or checks). Of course, don't forget to keep track of these transactions as well.
• Do not be afraid to switch cards in order to reduce your interest rate, avoid annual fees, or two-cycle billing. While you are in the process of rebuilding credit this will not be a serious option, however, once your FICO score increases to something over 650 the possibilities of obtaining new credit may prove to be advantageous to you.
• There is probably no good reason to carry more than two credit cards for personal use. If you have more than two keep the two with the lowest interest rate and cancel all others. If you need more than two cards you are probably not managing your credit purchases well.

credit card abuse begins with not having a clear picture of how much you are spending and how you are using credit. Following these few simple tips will help you gain control of your credit card spending, help increase your credit score and help you to build a bridge to your secure financial future.

Card Debt Relief

Secured credit cards For Rebuilding Credit

Secured credit cards are designed to assist people who have never had credit or those who have bad credit, in order to enable them to establish a good credit rating. Secured credit cards are special type of credit cards in which you must first put down a deposit between 100% and 150% of the total amount of credit you desire. Secured credit cards are generally used to help people raise their FICO scores, or the line of credit that companies are typically offering them. Secured credit cards are secure for both the lender and the borrower.

Some people are hesitant to apply for a Secured business credit card, thinking that in doing so, they are posing themselves as high risk borrowers. Secured credit cards can be used as a stepping stone to a regular, unsecured credit card. Secured business credit card cards are not just limited for those who have bad credit history. secured credit cards are good for those who are discharged bankrupts or for those who want to control their spending a little more carefully. With a secured credit card, your credit limit matches the security deposit you provide. With good payments you can be considered for unsecured credit card offers.

Even better, you don't have to worry about slipping into credit card debt, because of the security deposit. Since you aren't borrowing any money, you can't get into debt. If you default, the lender will use the amount in the security account to pay off the debt and this can result in more damage to your credit rating. Whenever you can make more than the minimum payment, this helps you to avoid extra interest charges that will prolong your indebtedness. Unfortunately, some people are not aware of how long it can take to repay a debt when only paying the minimum each month.

With a secured credit card, you may have to pay a higher than average interest rate, however, this does not mean that the interest charge is outlandish. The best secured credit cards tend to have interest rates that are comparable to many unsecured credit cards. Interest rates can vary considerably from card to card, and the interest rate on a particular card may jump dramatically if the card user is late with a payment on that card or any other credit instrument, or even if the issuing bank decides to raise its revenue. Interest rates for attractive secured cards should not exceed 19%.

When you go in for secured credit cards, you are required to provide a security deposit as a guarantee of payment. A deposit is required before secured credit card providers will issue you a card. This deposit is held in a special savings account. The cash deposit you make will become the credit line for that account. For example, you would deposit an amount into a bank, or with a credit card company, (this can sometimes be as low as $100), and then the amount that you deposited would be your credit limit on the credit card. In addition to putting up a deposit against the credit limit on your credit card, you can also expect to pay a yearly service fee.

By making consistent payments on the card you show the credit card company that you are capable of paying your bills on time. The . cardholder should ensure that the creditor regularly informs credit-reporting agencies of their payment history. Some financial institutions can arrange for automatic payments to be deducted from the user's bank accounts.

Even if you're currently in credit card debt, secured credit cards can help prove you're changing your spending habits and are serious about being a financially responsible person.

Credit Card Processor for Small Business

Select A Credit Card Processor For Your Business

A competitive credit card processor can save thousands of business. While it may be convenient to let your bank handle the processing credit cards, you may be able to save more using another provider. However, fees shouldn't be the only factor taken into consideration while selecting a credit card processor, since terms are often open to negotiation.

Usually, a basic rate of 2% per bill is considered good for fees. However, comparing prices seem intimidating as there is no single resource. The fee structures are generally difficult for the common man to understand and contracts might contain language that is often confusing. To make things comfortable for yourself, ask for a monthly statement itemizing every transaction and its associated fees.

Credit card processors are required to pay a fee to the credit card company that generally amounts to 1.65 percent for a normal credit card transaction. Any credit card processor claiming to offer an incredibly low rate of 1 percent should be avoided as the company can make up for that loss by piling on added fees or even hiking rates partway through your contract.

Credit card processing equipment is another matter of concern. These credit card processing equipments generally cost between $300 and $800. In addition, you will need a method for connecting to the processor, either by using a separate telephone line or over the internet.

While selecting a credit card processor for your business, you would also want to know the lag time. Lag time is the time that takes you to receive your customer's payment. The lag time should be anywhere from one to five days.

Debt Relief

Credit Debt Relief in Different Foms

Consolidating credit card debt is an option for people who are having a hard time keeping up with their payments. As interest rates rise, many are experiencing a crunch as they try to stay current with their credit card and home loan payments. This problem occurs when people take on credit card and home loans at low rate levels, only to have those rates increased as a result of penalties or changes in the market.

Further, some people are living in houses which they can't really afford. As the housing market cools, people are finding it more difficult to sell their houses at a price that would allow them to pay off their mortgage. As they struggle to keep up with their mortgage payments, some rely on credit cards to pay for their day-to-day expenses like gas and groceries. In the end, they are left owing on their mortgage, as well as having to pay off increased credit card rates.

At this point, one's options are limited. Consolidating credit card debt is one way that people may regain control of their situation. They may do this through the use of a home equity loan, which would allows them to make a single payment every month on a loan with a much lower interest rate than those charged by credit card companies.

Another option is to consolidate credit card debt with the help of a credit counseling agency. A credit counseling agency may help to negotiate for a lower interest rate from your creditors. Credit counseling agencies may also help negotiate with creditors on behalf of their clients to settle their debts for a discounted amount, sometimes as little as half the total debt.

Credit card debt consolidation can be risky. One may end up paying on another unsecured loan with a tremendously high interest rate. While credit card debt consolidation is never the easiest solution to one's debt problems, it is often the only option for someone struggling with debt.

Students Cards

Student Credit Cards

If you're a college student, you probably already have a credit card. If not, you may have plans to get one or more soon. So why should you read on?

• Because financial debt is one of the main reasons that many students end up dropping out of college.

• Because your college years can be some of your most memorable and some of your most costly. They don't, however, have to be the beginning of an adult life strapped with debt.

• Although you may still feel in limbo between your teen years and adulthood, it's time to take charge of your finances and manage them as an adult. The sooner you do, the sooner you'll be able to start saving and spending your own money.

For those new to credit cards and for others who know all about credit, let's go back to the basics.

Why do credit card companies court college students?

It's obvious by the friendly representatives who offer a free t-shirt or CD just for signing up in the student center. Or the applications slipped into bookstore bags. Or mail boxes crowded with card offers. Credit card companies want college students to carry their card.

Did you ever stop to wonder why? One reason is loyalty once a person has a card in their wallet, they are likely to keep that particular card and its upgrades for years to come. Another reason: college students are good customers.

While this may seem ironic considering that most college students are without a steady source of income, CNN says this is one example of how the credit card industry has changed radically in the past decade or so. Previously, conservative rules deemed a good customer as one that paid their bills on time, he says. Now, a good customer is one that can't repay their debt.

Credit is no longer an earned privilege, continues CNN. It's now considered a social entitlement, and the screening criteria (for card applicants) is weak.

Banks make money by charging annual fees, late payment penalties and interest fees on unpaid credit card balances. Therefore, card holders with revolving debt (those who do not pay their balances in full each month) are desirable. It illustrates this point beautifully through an example of a student with a credit card balance of $15,000 at an interest rate of 18.9%. If this student faithfully makes the minimum monthly payment of 3% or $25 whichever is higher, and does not charge anything else to the account, it will take more than 16 years and $7,173 in interest fees to repay the bill!

Additionally, CNN notes the banking industry has learned that college students will draw upon various sources of income to pay their debt including student loans, money from part-time jobs, and as a last resort, many will ask a family member to supply the funds to get them out of debt.

How to make credit work for you, not against you

According to CNN, 79% of college freshman have at least one credit card. And for good reason. Credit cards enable online purchases from text books to concert tickets, make it possible to rent a car, and help with medical emergencies or vehicle breakdowns. Used wisely, credit cards can be helpful throughout college, and can assist you in the development of financial management skills.

As soon as you get your first credit card or loan, you have entered the world of credit reports and scores. A credit report is compiled by credit bureaus and contains information about your identity and credit relationships, among other things. Credit scoring is a system that lenders use to help determine your credit worthiness.' Credit scores are based upon your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt and the age of your accounts.

It's vital to know that your credit score affects your ability to get loans, car loans, and home mortgages. Future jobs and insurance premiums can also be influenced by your credit score. By paying your bills in full or in a timely manner, a credit card will help you establish a good credit score. Late payment or no payment will help you earn a poor credit score. For more information on credit reports and scores and how they affect you, check out a money educator, cites unrealistic expectations as a major reason for high student debt.

CNN, who teaches personal finance courses, says Many students' expectations of their earning potential after college far exceeds what their actual income will be. She notes that some students use their credit cards with abandon during college, planning to pay off their debt when they land that great job after college. Indeed, some students forget that in order to get to the top of the career ladder, there are a few rungs, i.e., less paying jobs, they have to climb first. And the expense of starting a new job and life on your own can just add to existing debt.

contains a great resource for students seeking a more realistic view of the first few years after college. Using the Budget Estimator,' a module designed by him, students can identify an average yearly or monthly starting salary for jobs in their particular major. The program automatically figures in estimates for taxes and social security payments. Students can then plug in expenses for housing, car payments, utilities, food, insurance, telephone and internet bills, clothing, credit card bills, student loan payments, and entertainment, etc. The module lets you know when you have spent more money than you make, and allows you to adjust payments as necessary until you get the hang of how your money is best distributed.

Students that seem to have the most credit woes? Those who believe their standard of living during and after college should not vary from when they lived at home on their parents' income. Cable television, cell phones with cameras, and new cars become necessities' instead of nice extras.

Advice to grow on

When it comes to credit cards, students have great advice for other students. Heather, a college junior from Arkansas, recommends getting one card with a low limit. This limits the amount of credit you have access to and therefore removes the temptation to spend more than you have or more than you can pay off immediately, she says.

Another student recommends selectivity. Don't sign up for a card that charges an annual fee to use it, and read the terms of the card before applying. You wouldn't believe how many people don't know what an APR rate is.

Merchant Account anf Credit Card

How To Accept Credit Cards Without a Merchant Account

To increase sales on your website, you must accept credit cards. To process credit cards, you could apply for a merchant account through your bank or other financial institution.

Sometimes, though, you would be further ahead to use the services of a credit card processor. This is especially true when you are first starting out and have more limited resources. In this way, you may process credit card transactions without the high front-end costs and requirements of a merchant account.

Here, then, are just a few ways of accepting credit cards without a merchant account. I personally use all of these vendors and can recommend them wholeheartedly.

1. Clickbank

If your product is downloadable (such as electronic books or software), you might consider ClickBank.com . For a $49.95 initial fee, you can process credit cards and on-line cheques for $1.00 per transaction plus 7.5% of sales.

You receive additional exposure through free listing on their website and through the search facilities of other websites, such as CBMall.com .

As an added bonus, you have your own built-in affiliate program. You decide what commission (from 1% to 75%) you would like to pay your affiliates.

2. PayPal

PayPal.com has no initial fees. For just 2.9% of sales and $ .30 per transaction (and sometimes less), you can receive money from anyone.

Also, you can pay others by credit card or chequing account without supplying your personal credit information to the payee. PayPal can be used to collect money from your auctions, website sales, or even from friends or clients.

3. PaySystems

PaySystems.com can handle either intangible (downloadable) or tangible (shippable) products. For an initial fee of $49.00, you can accept all major credit cards as well as online checks. Fees are just 3.95% of sales and $1.00 per transaction. Alternatively, you may pay 5.5% of sales and $ .35 per transaction.

For this, you receive shopping cart, integration with third-party affiliate programs (such as ClixGalore.com ), fraud screening, multi-currency transactions, toll-free support, marketing tools, and more.

Wise Use of Credit Cards

Using Credit Cards To Your Advantage

Obtaining a credit card is fairly easy and if used the right way you won't get into debt. Credit Cards can pay your bills, college tuition and the next vacation. What you do not want is to be a slave to your credit card.

Principal #1

Only buy something which you planned for in advance and have the money to cover the credit card in the bank when the bill arrives. This allows you to basically take out an interest free loan for a month while your money collects interest in the bank. However, this takes discipline and planning.

Principal #2

Never use the credit card to pay off another credit card. This will only set you up for big time debt and future financial worries.

Principal # 3

Choose a credit card that does not have a yearly fee and gives you air mileage. I like to pay the card off each money and collect air miles at the same time.

Principal # 4 Use the credit card responsibly and do not allow impulsivity to take over.

In summary, credit cards can be your best friend especially around christmas, birthdays or holidays or they can be your worst friends after all is said and done. You have to treat them with care and do not abuse them. Always pay them off each month and enjoy the feeling of borrowing money from others at their expense. I do and it is a great feeling.

Secure Credit

Got Credit?

Getting a credit card is very important set for most adults, however not everyone knows what to look for especially if your credit is blemished. Look for APRs or the annual percentage rate this is the amount of interest that you will pay if you carry a balance. APRs are stated in yearly interest rates.

Because with multiple interest rates, for example you may think that you have a low interest rate of 8% and if you take out a cash advance your interest rate may jump to 19%. Sometimes you have a tired interest rate, meaning that your rate changes depending on the amount of your balance.

Penalty APRs are in effect when you miss a payment, some banks will penalize you if your payment arrives late by increasing the interest rate. For example if your payment is 10 days late your APR may go up from 12% to 16%. Introductory APRs are very common, you may receive an offer that sates a 5% APR for the first 6 months, after that it my rise to 18%.

If your credit card is lost or stolen and used without your authorization, you do not have to pay more than $50 of those charges. This is a protection provide by the Truth in Lending Act. You do not need credit card insurance to cover amounts over the initial $50.

Credit Card Processing

Credit Card Processing

In modern times so many business establishments accept credit cards that many consumers have come to take their use for granted. Between debit cards and credit cards, the world economy is gradually shifting to a cashless society. True to science-fiction predictions a half-century ago, it's possible that in the near future almost all transactions can be handled without the need of paper money.

Of course, this trend leaves businesses with very little choice in the decision to accept credit cards. Even losing the ability to accept them on a temporary basis may result in a damaging decline in sales. The end result is that accepting credit cards in a timely and successful manner has become an absolute necessity for not just large corporations but even small business owners as well. Indeed, small businesses especially need to provide safe and dependable credit card service to their customers, as that extra source of income can often make or break a fledgling enterprise.

Offering customers credit card service begins with setting up your merchant account. A merchant account provider, who will offer a variety of protection and security services, typically furnishes these accounts, either free of charge or for nominal fees, when you set up your account. Sometimes, a merchant will use a bank as its merchant account provider; however, some banks charge exorbitant fees for credit card services, including even charging 5% or more of each transaction.

When choosing a merchant account provider, a good way to shop is to check and verify which trade associations the provider belongs to. You may also want to consult and research businesses in your industry or market, verifying which providers they use and aligning yourself with their practices. Of course, simply checking with the Better Business Bureau is another surefire, time-efficient means of choosing your merchant account provider.

There is perhaps no more important area of the economy for reliable and safe credit card processing than the Internet. Since the rise of ecommerce in the late 1990s, the demand for effective credit card services and Internet merchant accounts has grown exponentially, with many small businessmen choosing to deal with a merchant account provider directly in handling their ecommerce needs. With today's higher awareness and risk of identity theft especially, choosing the right credit card services provider becomes all the more crucial. Many credit card service providers are available online, and require only the simplest forms of registration. Though many are not completely reputable, some adhere to the strictest codes of ethics and practices. When choosing your service provider, look for their seals of approval and research testimonials from actual users. You may also want to look for the seal of approval given by a number of Internet service providers and software manufacturers.