Credit Card Fees Are Dangerous
April 7, 2008
There are so many wonderful credit card promotions that cause you to jump at a great credit opportunity. They are too tempting to pass up and many consumers possess a wallet filled with credit cards. Despite the good deals on the surface, you must always read the fine print. There is a ton of useful information in that small print. Many consumers are hit with unexpected rate increases and hidden fees before realizing it.
Just a tease- This is the most common sort of hidden fee for credit cards. Consumers are enticed by a zero percent or low interest rate. They never expect that these rates are only temporary and will not last forever. Usually, they will last only a year or a few months before expiring. When advertised, the credit card companies never tell you that this is just an introductory promotion.
Transfer that balance- Another common tactic of hidden credit card fees is balance transfers. They start off with a low percentage rate as well, then add extra fees later on. If you want to take advantage of the lower interest rate, then you must act fast. Although this seems like the best deal for you now, weigh your options carefully first and read all of the fine print.
Add a late fee- Occasionally, you may have late payments that are unexpected. This will cost you dearly in the end because your rates will go up. Most late payment fees are not less than $40. Having consistent late payments can add an extra $40 on a monthly basis. Instead of having the opportunity to save your money or spend it elsewhere, you are adding extra costs to your credit card debt.
Don’t make hasty decisions when it comes to getting a credit card. Numerous introductory promotions are teasers and can be extremely dangerous to your credit status. Having high credit interest rates and other hidden fees could place extra burden on you without you realizing it.
Manage Business Credit Cards
April 7, 2008
Most small business owners realize that having a strong credit status for your business is a must. If you want to compete for customers and make large profits, then you must learn how to manage business finances the correct way. Credit card companies are offering their services to numerous small businesses because it is a constantly growing market. Despite the fact that credit cards are easy to get, you should not always jump at the opportunity to add on to your current business debt.
Never mix business with pleasure- One of the quickest ways to get in trouble with your business finances is to mix your personal funds with business funds. Although this can be a very tempting and easy thing to do, avoid it at all costs. When it comes time to tax season, you won’t be able to effectively separate the costs. Set up two accounts in order to keep all your finances organized and up to date. Doing this will also let customers and others know that you are extremely serious about your business. Even if you are running a home business, you can still remain organized and professional when it comes to finances.
Manage spending habits- Always monitor who has control over the business finances. If you have employees for your business, make sure that no unauthorized spending is going on. Providing employees with business credit cards can sometimes help take the pressure off of you, but sometimes it can add it back on as well. Check your monthly statements and question any unfamiliar charges. Also insist on receipts for everything. Employees are less likely to spend business credit when they have to show proof.
Manage your business credit cards wisely and you will not have to constantly worry about paying bills. If you are too focused on how much business debt you have, then you cannot pay attention to growing your business. Think about how your current business decisions will affect your future and you won’t be so eager to splurge.
A Must Have Credit Card for Mom’s
April 7, 2008
As a single Mom I look for all the ways I can save. Even by choosing which credit cards are going to get me the most for my money. Two years ago I signed up for a Toys-R-Us credit card so that I could take advantage of a 10% discount at the register. Little did I know how much I would fall in love with that card and how much it would save me over time.
Having your name on this credit card will trigger the company to send you various coupons. I got a $5 off coupon before my daughter’s Birthday. I also happened to see a coupon in the paper for a certain percent off if you use your credit card at purchase. I ended up getting a $40 Littlest Pet Shop mansion and two littlest pet shop animals for $18. The Pet Shop was on sale too.
The interest rate is reasonable although I always pay my card off when I get the bill. Toys R’ Us is a store you can trust and offers many toys at clearance prices. So why not get yourself a card that will help you earn reward dollars and free coupons? Even if you don’t have any kids you can still use those coupons to get your gaming system games much cheaper.
To recap you get:
-Rewards bucks
-A decent interest rate
-Coupons worth dollars off
-Percents off your purchase
-Happy kids when they get the toys
Eliminate Credit Card Debt Easily
April 7, 2008
Making the decision to improve your credit status is a huge step. Having excessive credit card debt can not only ruin your financial happiness, but it can also cause tons of unwanted stress. Most Americans that experience this type of hardship have a hard time getting out from under this burden. Some think it is best to ignore the problem and pretend as though it’s not here, while others just figure it’s unimportant. Consumers that take steps to control their credit card debt realize that having an unhealthy financial future could minimize their progress.
Make a list- Take the time to write down each and every credit card debt that you have. Not only will this help you identify your problems, but it will also give you the chance to face them as well. List the complete balance, the minimum payment requirement, and the percentage of interest for each credit card debt. Usually, you can locate this information on your credit card statement.
Place in order- Once you have added all of your credit card balances to the list, prioritize them according to interest rate percentages. Place the highest one first and then the others in descending order. Doing this will help when it comes time to make your full payments of each one. You can start with the highest and then eventually work your way down to the least amount.
Create a payment budget- Plan out your financial payments each month. Determine the amount of money you can afford to pay each month. Instead of just making the minimum balance payments each month, try to cut unnecessary expenses for higher payments. The more you pay, the faster you can get rid of unwanted credit card debt. Although you don’t think you can afford it at first, it’s always a good idea to go beyond the minimum.
The best way to free yourself from credit card debt is to face the challenge head on. Cut frivolous spending and start paying off these credit balances. Doing this will increase your credit score and secure your financial freedom. Not facing the fact that your previous spending habits are what got you into this issue would be a large mistake. It may be a slow process, but it will definitely be worth it in the end.
Three Ways to Kill your Credit Score
April 7, 2008
Having a strong credit score in today’s society is a necessity. You won’t be able to purchase a decent vehicle or beautiful home without it. Most consumers never want to think that a credit score can dictate how you live your life. Anyone that has ever been turned down for a loan or even employment because of bad credit will totally understand this. There are a few financial decisions that will cause you to kill your credit score and become hard to recover from.
Late payments- This is the easiest way to hinder the progress of your credit score. Most businesses, banks, or employers will frown on consistently late payments for bills or other accounts. This can easily be looked upon as financial irresponsibility. If you do not have enough control over your finances, then how can someone else trust you enough to control theirs. Start paying your bills on time or even earlier. About thirty five percent of a consumer’s credit score is tied to their payment history.
Non payment- This is another easy way to sink your credit score in an instance. If you don’t pay your bills, then you are not dependable. Most financial institutions will not give you a second look if they see this on your credit report. Creditors feel that they will never see their money, so they charge off your account. Doing this will drastically decrease your credit score status. Despite the fact the account has been charged off, you still owe every last penny of the charges.
A Judgment- This is one of worst ways to have your credit score negatively affected. Not only did you not pay your bills, but the court system had to get involved as well. Having this happen to you is a definite way to sink your credit score. Many financial institutions will consider you as an unreliable high risk. Chances of you getting a loan or new credit is very slim after a judgment has been issued against you.
It is always a good idea to make regular payments on time and don’t bite off more than you can chew. If you can’t afford it now, then patiently wait until you can. Having a high credit score will give you access to many financial pathways in life. Instead of blocking your chances before you get a secure start, think about how your current financial decisions will impact your future life.
Handling Creditors When You Can’t Pay Your Bills
April 6, 2008
It can be very challenging to keep creditors from hounding you if you don’t have enough money to pay the bills. However, there are some things you can do to keep your accounts out of the hands of collection agencies.
Tell Creditors About Your Situation
It may be hard to believe at times but creditors are people too and they are often more willing to work something out if you tell them you are facing financial difficulties. One method that can be effective particularly with a medical bill is to simply write the doctor a letter and explain your situation. Your doctor may be willing to work with you and give you extra time to get your account current.
Pay Small Amounts.
This will at least keep your accounts from being sent to collections. If you have several bills, just pay what you can even if it’s just five or ten dollars. This will also show that you are interested in paying off your debt.
Don’t Create Unnecessary Bills.
Some expenses such as medical care are necessary but many others aren’t. By eliminating purchases for things you don’t really need, you’ll have extra money left over to either save or put towards getting out of debt. Shop using cash instead of a credit card. When you use a credit card, you’re spending money you haven’t earned yet and you may find yourself playing “catch up”. When you buy with cash, at least you are immediately paying for the item even if it was a frivolous purchase. Avoiding unnecessary bills helps keep the creditors away.
