Thursday, April 12, 2007

Prepaid Credit Cards: Instant Relief from Past Credit Problems!

"Are you kidding me? You really never buy online?" Asks your friend.

Your friend continues his pursuit of the truth oblivious to your
discomfort. In the meantime, you fidget around while trying to find a graceful way out of this situation without revealing the truth.

You don’t want to tell him that you cannot buy online not because you are worried about identity theft. You can't rent a car not because you are underage. The limitations you face are entirely related to the requirements of our credit based society. You simply don't have a credit card. Your past credit
problems haunt you like a relentless dog in pursuit of a game. There may be a solution: Prepaid Credit Cards.

What are prepaid credit cards?

Prepaid MasterCard cards and/or prepaid Visa cards look exactly like a regular credit card. Neither you and your friends, nor the merchant who accepts MasterCard and Visa will be able to identify it as a prepaid credit card.

You obtain these prepaid credit cards by "pre-loading" them, which means you deposit cash into your account up-front, similar to a pre-paid calling card. Then you use your prepaid MasterCard or Visa anywhere these cards are accepted.

Prepaid Credit Cards are more practical than cash for many with
previous credit problems since you pay for your purchases before you even buy anything. This helps you plan your purchases better and avoid impulse buying.
Prepaid credit cards offer other advantages:

They are easy to get since they do not require stringent credit check or income verification.

They can be purchased online and at many retail stores.

They have very short credit card application.

They do not have any interest charges since you are not borrowing money.

They cannot lead into credit problems due to inability to pay borrowed funds. Again, you are not borrowing money.

Prepaid MasterCard or VISA have world wide acceptability virtually any anywhere VISA and MasterCard are accepted.

Don't forget the downside of prepaid credit cards:

They are costly to get with set-up fees of $5-$50.

They are costly to maintain - "Loading" fee of $5 or more every time you deposit money into them.

They requires up front cash.

Some prepaid credit cards cannot be used for recurring payments like monthly subscriptions.

After all said and done, prepaid credit cards may be your only
solution to carry and use a credit card. With prepaid credit cards you no longer have to carry your past credit problems like a sign on your forehead. Instead you can reach into your pocket and pullout that prepaid credit card.

They may be a blessing that helps you take care of day to day needs and make personal changes to help you get on track to a disciplined attitude toward money and spending. If you decide to get a prepaid credit card, compare several offers and select the one that most closely matches your needs and special circumstances.

Don’t rush it.

And while you go about your struggles with this and other of life’s ups and downs, remember Robert Johnson who said, “Measure yourself by your best moments, not by your worst.”

Friday, April 06, 2007

Restructure Your Debt Before Buying a Home

The enticement of getting into the runaway lodging market is understandable. Simple nest egg accounts are returning less than 2% per year. CDs and chemical bonds are not much better. "Safe" finances are yielding 5% pre-tax. And existent estate is surging, offering both equity grasp and tax protection. However, if you are in debt, it's important to do certain you reconstitute it and consolidate it before pickings the leaping into the lodging market.

So many see the hazard of taking on a house that is beyond their agency as deserving taking in order to make value and construct a financially secure future. The problem is that the lenders, once predominantly banks prostrate to conservative lending standards, now include pension funds, insurance companies and other investing physical things eager to put loans to maintain their money working.

It is not the lenders who will be hurt. They will travel swiftly to foreclosure, retrieve the house, and resell it. It is the borrower who gets burned. Bankruptcy laws are changing in October and it will no longer be convenient to register bankruptcy to avoid creditors. Individuals, once protected from forced liquidations, will happen that to be the norm rather than the exception. So it is more than of import than ever to learn how to renegociate or restructure debt before one is forced into bankruptcy court.

Renegotiating debt is best done before you are too delinquent. With a solid payment history with your lenders you are more than likely to happen them willing to work with you when you near them. Debt can be restructured a number of ways but there are some cardinal regulations to detect so that you continue your ability to command the restructuring of your debt.

1. Bash not wait until the debt have been turned over to a aggregation agency. By then it is too late to deal with the original issuers of the debt who might have got an interest in helping you. They have got discounted and sold off your debt when it is turned over to collections. That agency they have got got written off what they would have conceded to you to a 3rd party. The 3rd party's lone motive is to do money off your bad situation.

2. Before you seek debt relief, develop a personal budget that is feasible and a program which you can handle. Now you are ready to raise the telephone and phone call for help.

3. Don't be afraid to inquire for help. Advising the lender of a looming problem allows them to assist you avoid it becoming a major issue.

4. Be persistent. "No" is easy for creditors to say. You will hear it a lot. Call back and seek to get to person else. Talk to the same individual repeatedly until they get to get to cognize you and start wanting to assist you.

6. Be pleasant. You need to develop a resonance with the other individual so they desire to assist you. Getting huffy often do things worse.

Debt restructuring is a basic word form of negotiation. You have got a need. The lender also have a need. You have got a solution to offer. They have got to be convinced to listen to you. You have got to convert them of your earnestness and why they should chance with your plan. Don't inquire for a manus out. Ask for approval of a specific plan.

A program that plant for you should give them something as well. The two primary trade goodss are clip and money. If you have got money, but not enough, explicate your state of affairs and offer to pay off the debt at a discount. If they sell off your debt they will be lucky to get 50 cents on the dollar. You should be able to settle down between 50% and 100%. If you offer to pay the full amount, but over time, you will be economy a batch in money and maintain you credit evaluation from being impacted. But be certain to negociate both the interest rate and a committedness not to report the problem to any credit reporting agency. It makes you no good to widen your payment time period if you are also going to be paying a higher interest rate. Interest rates are negotiable.

The most of import facet of personal debt restructuring is to inquire before you get in too deep and before they begin chasing you to pay. A good customer's lawsuit always sounds better than a supplication from a habitual problem customer.

By successfully restructuring your debt and reducing it to something you can manage, you will have got protected your credit for future raids into the lodging market or any other venture.

Wednesday, April 04, 2007

Your Money Or Your Life

Have you stopped to recognize that although you travel to school to learn about of import subjects, no 1 learns you how to manage your money?


Money is an indispensable portion of life in our chase of happiness, yet very rarely will a parent sit down down and technical school their kid how to manage their money.


This is true in class school, high school and worst college.  So what happens?  Many of us halt up in an extremely large amount of debt.  We can’t look to get it together even if we do more than money.


I establish myself in this trap about 13 old age ago.  I had an all right job, a car, and an apartment.  Nice Iodine thought soon Iodine would purchase a house and unrecorded the “American dream”.  Wrong!  I could never salvage adequate to purchase a house.  I had plenty of credit cards, so many that Iodine never had enough money owed to many payments to set aside for my dreaming home.


What was happening to my paychecks?  Well, Iodine was over drawn-out in credit card debt for one.  The bargain now pay later syndrome was well embedded in my head.  That outlook had to stop!  Since, Iodine wasn’t terribly behind in my payments Iodine was able to get some aid from the creditors.  I simply asked for a lower interest rate and/or the ability to jump a payment.  After that call, Iodine had to cut up and dispose of the cards.  No! Iodine didn’t call off my cards but Iodine got quit of them just the same. 


Next I bought a tablet just for my budget information and bills.  I also purchased a software programme to maintain path of my expenses.  I believe it is of import to maintain something manual that you can carry as well as a computing machine software tool.


Next, as measures came in, I wrote them down with the name, address, phone number of the creditor, my sum balance, interest rate, and minimum payment due, the owed date, and if there were any annual fees acquired with the card.


Review the card with the highest interest rate and pay more than then the minimum due.  Always inquire if they can reduce your rate or seek the possibility of debt consolidation bargain applying for a low interest rate loan or credit card.  If you haven’t cut up your credit cards make not get a consolidation loan.  Because most likely once your payments are manageable you’ll begin using your cards again.


Minimizing your disbursement is the cardinal to financial freedom.  Make certain to start a nest egg program after you’ve gotten your debt under control.

Sunday, April 01, 2007

Small Business Credit Cards Advantages

A batch of people associate credit cards with just personal credit card which an individual posses and usages for shopping etc. However, there is another class of credit cards and that is called small business credit cards. As suggested by the name itself, the small business credit cards are meant for small businesses or people running small businesses.

So how makes the small business credit card differ from the other credit cards in general?

The very obvious difference is that small business credit cards have got the credit account in the name of the small business and not any individual, though the benefits indirectly accrue to the business owner. The other difference is with the terms and statuses that come up with the small business credit cards. Finally, there are some elusive benefits with small business credit cards which would not be applicable to personal credit cards. Let’s check all these things 1 by one.

We cognize that the credit cards supply a batch of convenience and security for an individual and a batch of other benefits too. Most of the benefits related to personal credit cards apply here too. What is interesting here is the indirect benefits that result from using a small business credit card.

The indirect benefits associated with small business credit cards are so great that it do them almost indispensable. The most of import benefit is that you can easily segregate your business and personal expenses. So if you have got been cachexia a batch of clip keeping path of your business measures and trying to maintain them separate from personal bills, small business credit cards could help. You just need to guarantee that you always do all your business payments using your small business credit card. When the credit card measure come ups at the calendar month end, you will have got itemized account of all the business disbursals as a single document. Thus small business cards reduce (and in some cases completely remove) the need for clerking for a small business. The credit card company makes that for you for free, although indirectly.

Another of import benefit come ups from rolling credit. If you have got to pay for your purchases upfront and still invoice your clients later (a state of affairs faced very often with small businesses), you can revolve the credit, you are providing your client with, to your credit card. Moreover, since these purchases are mostly urgent, arranging for money immediately can sometimes be a problem. In such as cases, the small business credit card is the 1 which can bail you out. Well, if you are thinking that your personal credit card could make the same for you, you are a spot off the path on two fronts. Firstly, you desire to maintain your business disbursals separate from your personal disbursals and secondly, the APR on business cards is generally lower as compared to personal credit cards. A batch of the small business credit cards don’t necessitate you to pay an annual fee even.

So if you run a small business but haven’t got a small business credit card yet, it’s about clip that you considered this fantastic option.

Friday, March 30, 2007

Understanding Credit Card Penalties

Because most of us have got got one or two credit cards and we utilize them every day, apprehension credit card punishments and fees is a important issue since one clip or another we have paid a punishment for some reason. Every user of a credit card must first understand that every charge on the credit card stand for a loan which must be repaid. It’s like the loan for purchasing a house or a car; the same manner these loans should be repaid, the credit card debt should also be repaid and even more than than it should be paid in clip and at least the minimum amount or else you’ll end up paying more interest fees and punishments than the existent borrowed amount. So, we can state it is of import that reading and apprehension credit card punishments and fees to be done before you apply for a credit card and start using it. A credit card user should read, before signing, the understanding and especially what is written with small letters because those small written lines sometimes are the most important. The understanding of the credit card usually incorporates regulations on how and when the credit card issuer can apply punishments and fees, but you should also look for the lines where it is clearly stated how and when the payments should be done. You, as the hereafter user of the credit card need to have got complete and accurate information in order to be able to take a right decision.

In the past few years, credit card companies and banks are put to do as much net income as they can, in any manner they can. They have got got introduced all kinds of punishments and fees, and have come up up with assorted strategies on how to get more than than people to pay more money. So, apprehension credit card punishments and fees policy is a must for every credit card user, as he must always cognize how and when to pay his debts in order not to be charged punishments of higher interest rates. Nowadays, you can pay punishments for a batch of situations. If you lose a payment deadline, you’ll wage a punishment that very much depends on the balance you have: for a small balance a small punishment and for a large balance another penalty. Other banks or credit card companies charge you the same punishment regardless of the balance you have, but this punishment be givens to increase as the clip passes. There is also another system: for late payment you’ll have got to pay a punishment and a punishment interest rate. And you should cognize that card issuers don’t have got a bounds on how high the interest rate can go, it all depends on your cardholder agreement. In fact, credit card issuers don’t expression at the late penalty payment as a punishment. For them punishments are a manner of preparation you to maintain your commitments, in other words to develop you paying in time. A credit card is a line of credit, and when you accepted to take this credit both of you and the credit card company made commitments: the company to impart you the money and you to pay the money back. The company have already shown her good religion and gave you the money, but you you’re late with the payments the credit card company starts wondering whether you’re still committed to pay the money back. So, the punishment is the manner to remind you that you have got to do the payments in time.

We can inquire ourselves why credit card companies are more than than and more interested in punishments and fees. The reply is: because of the increased competition on the credit cards market the companies are making less and less money from finance charges compared to the past years, So, the credit card companies are finding other ways to do more than than people pay more money. That is why is of import that reading and apprehension credit card punishments and fees policy to be done before applying for a card and not after when you are already piled under a batch of debts accumulated for paying assorted punishments and higher interest rates. For not getting into such as a situation, the most of import advice is to cognize from the beginning the existent cost of the money you’re borrowing, not only the interest rate but also the punishments and other fees. Also, it is indispensable not to be fooled about the great offers of the large credit card that you have in your mail box. Shop around for other credit cards and make up one's mind only after seeing more than than one offer.

Wednesday, March 28, 2007

Credit Card Debt: Repair After Bankruptcy

Ah, credit card debt. You've asked yourself the inquiry many
times, "Will Iodine ever get credit again?" The answer, although
seemingly complex, is quite simple: Yes. You can have got another
opportunity at re-establishing your credit. Filing bankruptcy is the first
intelligent measure taken to wiping out accumulated credit card debt. The
adjacent measure you'll have got to take is to repair your credit report. In
order to make this, you'll need to develop great forbearance while you're
re-establishing your credit, as these things make take time.

Two or three old age after you've eliminated credit card debt by
filing bankruptcy, you'll desire to begin rebuilding good credit. How, you ask? Apply for secured credit cards. Preferably
cards without annual fees attached to them. Bash your research
on the internet to see what others have got done in similar situations. If you come up across an offer which looks to good to be true, it
most likely is. Use discretion when giving out Sociable Security
numbers and personal information online.

Start small. Don't anticipate anyone to manus you a $10,000 credit
bounds overnight. You've had a history of credit card debt, it's not
going to happen. Brand lenders trust you again. Brand monthly
payments in the full amount. Your payment transactions will
determine how successful your new credit report will be. If
you're late with payments you're heading in the incorrect direction. You don't desire to stop up on the route to credit card debt or
bankruptcy again, make you? Of course of study not.

The stronger your current financial status is, the better
campaigner you may be for future credit. Convert lenders that
you've left the past behind you. You've changed your ways. Show them how you've handled money since the bankruptcy. On Time payments made in a full amount are very impressive to
a credit lender. If you're denied a major credit card, don't get
distraught. Try applying for a section store's line of credit
or a card issued by an oil company. These are some small
stairway to a successful debt-free future.

It's also of import to maintain an oculus on your credit report. Make
certain that everything is accurate and looks is it is supposed to. Errors, which can travel unacknowledged will only harm you in the
future. Your local bank can give you a transcript of your current
credit report for a nominal fee. However, if you're a legal
occupant of the United States, you are eligible to have free
credit reports. Specifically, one credit report per year.

In 2005, the Federal Soldier Trade Committee announced that every
United States citizen is eligible to have one free credit
report on an annual basis, regardless of where they live. This
was fantastic intelligence to Americans everywhere. To receive
your free credit report, you must provide cogent evidence of your identity. Questions you may be asked will include: your name, address,
societal security number, and a personal inquiry [for security
purposes] that lone you will know.

Nevertheless, be very careful. There's a broad number of
companies who will assure free credit reports. But are they
legitimate? Anyone can construct a website and claim that they're a
credit agency. Why hazard giving out your personal information to
a stranger? Identity theft have go increasingly popular. Don't fall quarry to a fraudulent credit agency that you cognize
absolutely nil about. Bash some background research on
the company prior to using their services. If you can't happen any
information relating to their services they're probably not very

Credit reports can be received online or through physical mail. Be certain that the company which is offering free credit reports
is being employed by the FTC. Bear in mind, anyone can say
they're affiliated with the FTC. Brand certain that they're legitimate. Such a debacle occurred recently on the internet. Thousands of
people were taken advantage of when they filled out a word form for
a "free credit report." Don't give out your information to anyone
but a trusted bank, a reputable mortgage broker, or an agency
employed through the Federal Soldier Trade Commission.

Monday, March 26, 2007

Credit Card Wealth Secrets

"Credit card wealthiness secrets," the advertisement read. I assumed it was yet another over-hyped impracticable scheme. It probably was, but it made me retrieve the modern times in my life when I have got used credit cards to do money.

As Henry Martin Robert Kyosaki says, there's "good debt" and "bad debt. Borrowing for consumer points is bad-debt. You restrict your hereafter options, and you get less in life. It looks like more, because you get it now, but with interest, and the inclination to pay more than than when purchasing on credit, you'll never be able to purchase as much as those who pay cash.

Credit card wealthiness secrets have got to go around around the thought of "good debt." This is any borrowing that additions your income, or bring forths capital gains. So how make you get your credit cards to begin doing that for you?

Credit Card Wealth Creation

A good friend once borrowed $6,000 from me at 9% interest. I didn't have got the money at the time, but I had a credit card offer for a cash advance for 8 calendar months at 5% interest. I loaned him the money for six months. Okay, a 4% spreading meant only a $120 net income in the end, but it was easy.

A better illustration is when we bought a small house in Montana. A cash offer would get us a great deal, so with our nest egg and a $2,000 worth of repairs on a credit card, we made it work. We paid less than $100 in interest before merchandising the house a few calendar months later for a $6,500 profit.

My money was tied up when my blood brother establish a motortruck we could do some money on. I set it on a card, and paid maybe $35 in fees and interest. The car was sold 10 years later, and we divide the $950 profit.

A friend of mine once borrowed $300 at more than than 100% annual interest ($50 for two months). Why? To purchase the tools he needed to re-start his dry-walling business. He probably made enough the first hebdomad to refund the loan.

The point is that any debt - whether from credit cards or other beginnings - can be good debt if it makes more than than it costs. I have got got known people that have started successful businesses or "flipped" houses for large additions with the aid of credit cards. Get rich quick? Doubtful, but then my incredulity almost made me forget my ain "credit card wealthiness secrets."