Financial Planner Articles

If you’re like a lot of people, at some point in your life you will probably desire a higher credit limit on your primary credit cards. A higher credit limit will enable you to make much larger ticket purchases. Sometimes, your borrowing levels don’t keep up with your lifestyle changes. There are some different ways that you can get a new higher credit limit. Below, are some tips that could help you raise the limit of your credit.

Like any other goal in life, you should approach this issue from various different angles. One method in which to do that is to focus on raising your overall credit worthiness. Boosting your credit worthiness means that to a bank, you would appear to be much less of a risk exposure. Assigning a figure to you is one of the first things a bank does when deciding whether or not they will deal with you.

According to common logic, financing a purchase that you can afford to pay off immediately sometimes seems like a bad idea. Most people would rather just pay for it right away if they can afford to right then. Financing it will likely cost you more money. This is certainly true. However, these big ticket item purchases that are bought on credit give you an opportunity to develop a good credit history. If you stay on top of your payments, it will actually make you look a little better on your credit report. Think about that next time you go to pick up some new home furniture.

If you work on your building your credit, over time it will become easier for you to get an increase in your credit limit. Along with that higher credit limit comes more responsibility on your part. You are going to need to restrain the impulse to go make a purchase that weakens your score again. Otherwise, you basically destroy the positive affects of your recent efforts.

Your credit card usage habits can affect decisions regarding your credit limits. If you use your cards on a regular basis, it helps to blur sudden changes in your pattern. Otherwise, it is possible that a bank could get a little nervous if they happen to see any sudden increase in purchases. Because of this, it might be wise of you to develop a habit of using them more regularly.

Never forget to make a payment on time. Always try to pay more than the minimum due amount. This is sure proof that you are committed to fully pay back the entire amount as quickly as you can. This is one of the best ways to improve your risk profile in a banker’s eyes.

Achieving a higher limit on credit cards isn’t brain surgery. Actually it is quite simple. If you really want it, you’ll get it. You just need to become exceptionally reliable when it comes to getting loans and paying them back. The more reliable you are, the higher your limit will reach over time.

You may not believe it but you can use credit cards to rebuild credit after bankruptcy. The last thing you want to do right now is get discouraged about your situation. The reality is that it could happen to anyone. I’d like to talk to you now about using credit cards to rebuild credit.

First, The Good News

The good news is that your credit future has not come to an end. You can regain the same life you had before bankruptcy. Positivity is a must if you want to start moving forward. Nobody likes to start over with their credit but at least you are given the opportunity.

Building Trust

You will find that there are credit companies that will be willing to lend to you after bankruptcy. If your going to use credit cards to rebuild credit you can expect to pay high-interest on the money you borrow. You only want to establish trust by making regular on time payments.

Responsibility And Restraint

Ideally you should plan to pay your credit cards in full every month. What this will begin to show is that you are capable of exercising restraint and reponsibility. Let the credit lenders see that you’ve made the necessary changes.

Another Option

Secure credits cards are yet another option that can be used. You can use a personal savings account to obtain a secure credit card. In the event that you fail to make the payments the funds in the account may be claimed by the lender. This will allow the lender the ability to take on more risk with credit card applicants.

This Takes Time

Although it won’t happen as fast as you’d like you now know that you can use credit cards to rebuild credit. Learn from your mistakes to ensure you don’t make the same one’s twice. As long as you are patient and persistent and your credit will eventually improve.

People have been talking about taking advantage of 0 percent balance transfers. It’s obvious what the idea behind these offers are. Transfer high-interest debt over to 0 percent credit cards and use the money you save on interest to pay more against your debt.

What if you don’t have any high-interest debt to reduce? Is there still an advantage to using 0 percent credit cards? Yes. Next I will explain to you the steps taken to use 0 percent balance transfers to make money or save money.

Getting The Money

A simple way to aquire the money is to receive a balance transfer check from the credit card company and deposit it into your account. If this doesn’t work you can use an alternative solution. You will have to get another card, ideally without an outstanding balance. (Card #1) You’ll also need a card that is currently offering 0 percent balance transfers. (Card #2)

The next step is to do a balance transfer from (Card #1 to Card #2). The result will be that (Card #2) makes a payment to (Card #1) leaving a negative balance. You now ask for a balance refund. You can make this request either online or over the phone.

Working With Your 0 Percent Balance Transfers

At this stage you have two possible choices. You might put the money into a high yield savings account making 5%. In order to maximize your profits you must avoid any fees.

The other choice is for those of you who are carrying high interest credit debt. You can use your 0 percent balance transfers to reduce your outstanding debt. In the second choice your profits come in the form of saved interest.

Final Note

A drawback to this plan is your credit score could be slightly affected. When you max out your 0 percent credit cards you raise up your debt to utilization ratio. To get around this problem you will need to have other credit cards that have a zero balance on them. The idea is that the credit cards without a balance will offset the other cards.

Get started today using 0 percent balance transfers to lower you debt. You must be determined to succeed. There will be moments of weakness but you must remember your goal.

Credit seems to be the buzz-word regarding the economy these days. Credit is something that affects the biggest banks in the country as well individuals like me and you. And according to the government a credit crunch and banks unable to lend would be devastating to our economy. So the macro-economics (big picture) and the politics of credit is confusing, and even irrelevant for those of us who are struggling month to month.

So your credit score is just an intangible number, but it also can have a great effect on your day to day life. It can effect whether or not you can lease an apartment or get utilities, if you can get a car to drive to work, and other aspects of our day to day lives.

Chances are, if you are reading an article about credit restoration then you have bad credit that you need restored back to good. The most important part of restoring your credit is to understand what exactly your credit is and what things effect your credit. I put things and your credit in quotations because to me they seem to be ambiguous phrases that need to be clarified and explained in order to move forward to financial freedom.

Your credit is determined by a mathematical algorithm and has nothing to do with you as a human being. This is good news and bad news. The bad news is that there are human factors that go into your financial circumstances and these are just not accounted for. The good news is that all mathematical problems have a solution!

So, the trick is to put emotions and circumstances aside and evaluate your financial situation objectively and numerically. If you understand how your credit score and credit is calculated and determined, then you will have leverage in the system.

Credit scores and credit reports are not the same thing. Check out my website to learn more about the differences.

Secondly, there are 5 factors that go into the algorithm that calculates your credit score. You will have to visit my website to learn more about these! These are they keys to finding debt relief and to restoring your credit.

You can actually obtain your free credit score very easily. Why would you want to? Because knowing your credit score is important knowledge that will greatly benefit your chances of obtaining new credit. The purpose of this article is to give you the necessary information you need in which to quickly obtain your free credit score.

Most credit applications are initially assessed based upon your personal credit score. This is quite possibly something you had not appreciated. In order to be approved your credit score is calculated by the lender and your application accepted or rejected based upon whether it exceeds a certain threshold. This threshold is call the threshold level for acceptance. If your score does not shape up then it is quite likely your application will be rejected without further consideration.

If this has given you pause for thought then before making any further credit applications you may do well to find out your credit score at the moment. But, you probably don’t know how to go about establishing your score. Well, there are in fact a couple of simple and useful ways of getting hold of your credit score for free.

The first is probably the most straightforward. You simply ask for your credit score from an existing debt provider. Actually not as ridiculous as it may initially sound. There really is no particular reason why your debt provider should withhold your credit score information from you. In actual fact, it may well be as simple and as free to get hold of this information by simply asking for it.

The next way to get hold of your credit score for free would be to take advantage of one of the offers made by companies on the web. They are relatively easy to find on the web. All you really have to do is to use Google to search for free credit score and you will quickly see that there are many such offers available and free of charge.

The companies making these offers are actually hoping to sign you up to a subscription service. This is why it may well seem as though you are having to provide intimate personal financial details. However, the solution is straightforward. Once you have got what you want, your free credit score, you simply cancel the arrangement. Simple.

The hope is that this information is useful in helping you to get hold of your credit score for free. The importance of your credit score on any future credit applications should not be underestimated, so you would do well to follow the advice and try to establish your score ahead of time. It really can be free.

In order to get out of credit card debt takes perseverance and willingness to succeed. So whether or not you are being swallowed by the sink hole of credit card debt or you are just starting out to dig yourself into credit card debt - you have to take action before it’s too late in order to be come debt free.

The six tips listed below will help you get out of credit card debt…if you use them.

1. Stop using your credit cards - By using your credit cards you are paying additional interest on the credit card balance you owe on which you’ve already been charged interest. Unless you pay the new charges when you are billed you are accumulating additional interest on both present and past charges.

2. Figure out how much credit card debt is costing you. You can find out how much credit card debt is costing you by seeing how much interest rate you have to pay. This is done by reading the fine print on your latest credit card statement. If you do not understand then you call your credit card company and have them explain it to you. (By law they have to explain it to you.)

3. Lower that interest rate!!!! Lowering your interest rate is the most effective and easiest way to get your credit card debt problem under control. You can lower the interest rate you are paying by transferring high interest rate amount balances to lower or no interest credit cards.

4. Call your credit card companies and tell them to lower your interest rates. Since you already know the interest rates it is time for you to ask your banks and credit card companies to lower the interest rates. You should call them and ask to speak with a supervisor. The supervisor has the authority to give you a lower interest rate.

This is what you tell them: The rates are too high and you want it lowered. And also let them know that if they are not willing to lower your interest rate you are considering to close your account and transfer all your credit card balances to the company that is willing to give you the lowest interest rate. (since they don’t want to loose the future profits from you they may lower your rate in order to keep your business.)

5. Consolidate your credit card debts - transferring all credit card balances to one credit card - is an effective way of getting out of credit card debts. So when negotiating to get a lower interest rate you should let it be known that your ultimate goal is to get out of credit card debt at the lowest possible cost and not credit card shuffling.

6. Cut your savings in half. It would be foolish to be paying high interest rates while continuing to save the usual amount, if you are indeed saving. Once you have removed the credit debt you can actually increase your savings by adding the former “credit payment” to your savings account.

It works like this. Get all your credit card balances. Divide each balance by the minimum amount you are required to pay each month. This tells you how long it would take to pay off each balance. Start by paying off the one that takes the least amount of time (half your savings + minimum payment). Continue making minimum payments on the rest. When that least payment is finished you would pay the next least payment and so on. You would continue using this tactics until you are no longer in debt.

If you follow the above tips and tactics you should be on your way to getting out credit card debts in very short order.

Your credit score is very important. It determines whether or not you can get loans, a mortgage, a vehicle loan and a credit card. People with higher credit scores are more able to get better rates on any loan and get approved for loans or credit. It can even affect whether you get a job or an apartment. Many low credit scores come from mistakes or out-of-date information about your personal credit history. If there are any mistakes or negative information on your credit report, it can remain there for seven years or longer. That?s why it?s important to keep it up to date and to ensure there are no mistakes on it. There are many good credit repair books on the market today to help you with this.

Credit Repair is usually considered to be the removing of bad credit elements from your credit report. This is very possible, and anyone who tells you otherwise does not understand the process. The process can be quick and simple but one needs to understand the fundamentals to good credit.

The way that credit scores work, is that if your credit score is low, you are looked at as a greater risk for a loan. If it is high, the lender believes there is less risk. If you have a low credit score, that does not necessarily mean that no one will lend to you. It means that you will likely be a charged at a higher or potentially much higher interest rate.

There are three primary Credit Bureaus, Equifax, TransUnion, and TRW. Each has the obligation to provide one credit report for free per year. One of the most effective ways to determine how credit repair can help you is to read credit repair books. There are several good ones on the market and can be found on Amazon or a reputable books site.

The credit bureaus tend to err on negative information. If you state that what is in your credit bureau is not accurate and the credit bureaus are unable to confirm the information, then they will eliminate it from your credit report. With some credit bureaus you can dispute the information online.

If you are looking for credit repair there are many solutions available to you. There are lawyers that can help you with credit repair. However, lawyers tend not to be affordable. You can also attempt to do it yourself but that can be a very time consuming and confusing solution. Then there is affordable credit repair software which can be a very effective and fast solution.

In order to get a good interest rate on any sort of loan, or to acquire a credit card, mortgage or car loan, it is imperative that your credit rating be as high as it can be. It is suggested that you check your credit regularly for inaccuracies. A growing problem of late has been identity theft which can cause credit rating to go way down.

My recommendation for affordable credit repair is CREDIT REPAIR MAGIC. It is software that does all of the hard, complicated work involved in credit repair for you. It works incredibly fast and has been known to increase a person?s credit score by up to 50 points in a single use. It is 100% guaranteed and is very inexpensive. Click Here!

In 1949 Diner’s Club launched the first charge-card company. According to Dove Consulting, Americans now spend more with their credit cards - over $2 trillion yearly - than they do with cash. The creditworthiness of card users is an increasingly important issue for creditors and consumers alike.

Most people know that their creditworthiness is tracked on a credit report, but few understand how scoring works. The FICO score was developed by Fair Isaac & Co. to evaluate the likelihood that consumers will pay their bills. Scores range from 300 points (highest risk) to 850 points (lowest risk). According to Equifax, one of three major credit bureaus in the United States, FICO scores are the deciding factor on more than 75% of credit applications. In 2003, nearly 50% of Americans scored between 700 and 800.

FICO scores are mathematically determined using five factors: previous credit performance, current debts, credit tenure (how long you’ve had credit), types of credit available and pursuit of new credit.

What’s on The Report and Why Should I Care?

An in-depth look at an Equifax report provides an overview of the information that can be obtained from any of the major credit reporting bureaus. An Equifax report is divided into seven sections.

The first section contains personal data such as current and previous addresses, social security number and employment history. This is crucial information for identity thieves, so protect it. Make sure it is accurate, and shred it thoroughly before discarding it.

The second section provides a summary of your credit history. It includes the number and type of accounts (both open and closed) that you hold and whether those accounts are in good standing. It also contains a record of your credit inquiries over the last year.

It may seem like the more accounts you have, the higher your credit score will be, but in this case more is not necessarily better. Many financial institutions assume that you will use all of your available credit and factor payments that would be required to service that debt. You may have a dozen cards with zero balances and have no problem making monthly $2 000 mortgage payments, but if the bank factors your ability to pay on those cards your creditworthiness is diminished.

The third section provides detailed account information. It includes the name, type, number, opening date, balance and status of every account on your record. A breakdown of each account provides payment history, date of last activity and contact information for the credit issuer. If you disagree with any of this information, challenge it. Under federal law, the agency has 30 days to respond. If your challenge is successful, offending information will be removed from your report.

The fourth section addresses inquiries into your credit history. Inquiries are classified as “hard” or “soft”. Hard inquiries are generated when you authorize companies to access your credit report. These are tracked, and a large number of them in a one-year period will negatively affect your FICO score. Soft inquiries are generated when current creditors check your status, when card issuers review your file without being solicited and when you personally check your credit. These inquiries do not impact your credit report.

The fifth section details accounts that have been turned over to credit agencies. The sixth section provides information about liens, wage garnishments or other judgments against you in federal, state or county court records.

The final section outlines how to dispute information on your credit report. Despite the claims of late-night infomercials there is little you can do about delinquent accounts and other damaging information but wait. The Federal Trade Commission says most of this information remains on your report for seven years. Bankruptcy remains for ten years and lawsuit-related information remains until the suit is settled. You don’t need such difficulties: make payments in a timely manner and address all credit issues immediately.

How That Information Impacts Your Score

The consumer credit reporting company Equifax cites late or missed payments, credit tenure and the size of account balances in relation to credit limits as major factors impacting your FICO score. You may have an excellent income and pay your cards off fully each month, but oversized balances may still negatively affect your score. In addition, if you don’t have a mortgage, car payments or other revolving debts it is unlikely that your FICO score will reach 850.

Check Your Credit

Credit reports can be obtained instantly online for less than $50. If you are contemplating a significant purchase such as property or a second home, run a credit check on yourself at least 90 days prior to your purchase. This gives you plenty of time to address any discrepancies that appear on the report.

The three major credit bureaus in the United States are Equifax, Experian and Trans Union. They operate independently, so request a report from each of them to get a complete picture of your credit history.

Conclusion

Despite advertisements that promise to repair bad credit, prevention is the best way to avoid problems. If it is accurate, there is little you can do to clear negative information from your report but wait 7-10 years. Prevent damaging information from getting onto your credit report in the first place and improve your chance of obtaining future financing by making payments on time and addressing all issues that arise with creditors.

Credit cards have a time period in which you can pay off your balance without being charged interest. This is called a grace period. The grace period on most cards is 25 days, while other cards have shorter grace periods. Pay attention to your grace period to avoid penalties, fees, and higher APR.

Some cards offer low interest rates, but have annual charges. Others have no annual charges, no fees for cash advances, yearly account summaries, purchase security, insurance protection plans, a 25-day grace period, credit up to $35 000 and fixed rates as low as 9.9%. This is one of the better deals to be found, and you can apply for these cards on a secure site. Other cards offer APR up to 14.9% and some have only a 20-day grace period.

When you are applying for major credit cards online, it is important to consider whether it offers a fixed rate APR. Unlike variable rate cards, interest on fixed rate cards rarely changes. If interest rates do change the card provider must let you know in advance. Variable rates cards can change rates at any time, and providers need not inform you of changes beforehand. You may also want to check out tier rate cards, though few companies offer this option.

It is important to understand and monitor your grace period, since this helps determine how much you will pay each month. You may make a purchase of $150 but if you carry a balance beyond your grace period, you will end up paying a lot more.

Many card providers calculate your APR every day. In this case, if your card has a 9.9% APR and your purchase is $150, you could pay $170 or more the following month by missing your grace period.

Go online and search for the best deals when applying for a credit card. Apply only with reputable companies, as many credit providers will scam their clients.

Not long ago several credit card companies were sued for illegally adding charges that they should not have. You must protect your self as a credit essentials by investigating thoroughly before you sign agreements. Once you have your card, monitor your statements carefully. Even reputable companies will concoct evil plans to maximize their profits.

If you have a bad credit history be sure you watch the activities of your creditors. Your company is obligated to update your status with the credit bureaus twice a year. If you have made the necessary payments for six straight months your credit status should improve. Some companies, however, can be negligent in making their reports. Ensure that your good behavior is reported and rewarded. This is important when rebuilding your credit.

Only use your card when you need it, especially if you have bad credit. If possible, pay all of your bills on time. Use your credit card to avoid utility shut-offs, but if you have low-income status you may qualify for state support. Explore your options before using your credit card.

What is FICO?

FICO stands for Fair Isaac Corporation, known as the best and most widely used credit score model in the U.S. FICO scores are based on a customers credit information and are what banks and other lending institutions use to base their lending decisions on. If you want a low interest rate on a new loan, a high loan dollar amount and little or no collateral or security requirements, then you want a good FICO score.

History of Payments

The biggest part of your FICO score (35%) relies on your payment history so if you pay your debts on time you’ll have a better credit score. Late payments can adversely have effects on your score, and delinquent payments and collections have a major negative result on your score. Delinquency and collections stay on record for 7 years, and think twice before filing for bankruptcy it’ll complete devastate your score.

Outstanding Debt

The next largest chunk to determining your score is total debt. Percentage owed on car loans and mortgages and the quantity of credit cards maxed out can lower your score. For credit cards, the guideline is to keep your card balances at 25% or less of their maximum.

Credit History

The longer you’ve had credit cards open and good standing the better it looks on your record, so don’t close your oldest accounts. 15% of your FICO score relies on your credit score. On a side note, don’t forget to not open more credit card accounts than you actually need.

Credit Inquiries and Types of Credit

Several credit inquires within a short period can have a damaging effect on your score. On the other hand, having many varieties of credit accounts in good standing can increase your score. It helps your credit to have plenty of installment loans like an auto loans and a mortgage open with some credit card accounts all paid on time each month.