You Should Also Be Getting A Monthly Statement From The Credit Counselor

Category: Finance, Credit.

We have all seen and heard the commercials telling us how great credit counseling is. When first heard, they sound like a miracle solution to all of our credit problems.

These organizations brag that they can help us to repair our credit and may even be able to reduce those nagging monthly payments. Yet, before you rush off and call that phone number to that credit counselor, you should think about a few things first. The National Foundation for Credit Counseling suggests that you may need a credit counselor if one or more of the following factors are true. - Your total monthly credit card payments amount to 15 percent or more of the amount of your take home pay. - You can t afford even the minimum monthly payments on these charges. - You can just barely afford those minimum charges. - You can t pay all your creditors, every month. - You routinely use your credit cards as payment for gas and food, because this is your only option of purchasing these needed items. Such as: Do you really need this help? If you do find yourself in the predicament that you were able to answer true to most or some of those circumstances, then your best bet may well be credit counseling. Firstly, look at their credentials. Now what are your options and what should you do before and as you hire one?

Some people have actually been scammed by people claiming to be credit counselors and all they did was lose more money and further tarnish their credit ratings. You can also check out the NFCC( National Foundation For Credit Counseling) and see the list of their members, who train at regular meetings and must meet ethical standards, are non- profits, and who are, are bonded audited regularly. If you want to hire a credit counselor you have the option of checking their credentials to see if they are listed on the US Department of Justice s list of agencies of approved counsel bankruptcy clients. You should always be wary of credit counselors who do any of the following: - Try to push a plan on you without giving you time to assess the situation or without the counselor doing the same. Bankruptcy and the like is not always the final outcome. Sometimes a counselor may recommend a new budget.

Plus, that first interview should take a half hour or more to discuss all your angles of your finances. - Charge enormous upfront fees. Administrative monthly costs also generally run about$ 2- The counselor promises to fix your credit rating. The average fee for that first consultation is around$ 20If you decide to join a debt management program that cost usually ranges close to$ 5This charge is for the agency setting up all the account and repayments for you. No counselor can wipe away your bad credit record by charging you a fee, without doing something illegal or unethical( such as setting up phony accounts under another person s name and social security number, which is illegal) . This means you want to check those monthly statements that comes in every month to make sure those payments are still being made. Finally, if you do decide to go ahead with the debt management program, be sure to track your progress.

You should also be getting a monthly statement from the credit counselor. Remember these charges are still your responsibility. Check this as well. If they are not paid, you are the one who will be held responsible and you will be the one who has the damaged credit rating. Many people with credit problems have been able to clear up their debt quicker with the help of a credit counselor. For these two reasons pay attention to what your counselor is actually doing.

Just make sure you pay attention to all the details before hiring one and before signing any contracts with one.

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Poor Credit Is Not The End Of The World

Category: Finance, Credit.

Bad credit points are earned when a person who has taken a loan finds repayment to be difficult. As a result, he will not be given top priority if he later needs another loan.

What this means is that his credit ranking drops considerably. But this does not mean that he is not eligible for any loan at all. This is probably the reason why banks and various other lending institutions have begun to finally take them seriously. These days, we are seeing a rise in the numbers of people who fall into the category of people having poor credit. Any business is good business say the entrepreneurs of the world. One should not be too hard on people who are going through a tough financial situation. And who knows, one day the very same person who is struggling with bad credit might grow big and he might improve his credit scores considerably.

Cash crunches are a truth of life and we all have to deal with them at some time or another. At such times, they will have to try and get out of the troubled times. Most times, if a person is going through a bad financial situation, it will most likely end up being nothing but a temporary phase. It could be a smart move to go and look for some financial help. By extending loans to people, banks are helping people to repay their other debts. It is a good idea for people with debt troubles to approach a bank for a loan. These loans are also forwarded to people who are looking to rebuild their credit history once again.

This might provide him with an opportunity to start building his credit levels. For all we know, such a venture might just turn out to be a major turning point in the life of the person who has been saddled with a history of bad credit. One must remember that the blame for adverse credit does not always lie with the individual. However, all things said and done, there are lenders who will not offer loans or credit cards to people with a poor credit history. Often enough, it is the situation that leads to adverse credit, and not the person himself. Also if a person has defaulted on his payments, credit card companies might avoid him by tagging him as a high risk element. Going into depression because of bad credit will not be helpful.

Unless these people prove to these companies that they can meet the payment schedules, they might not be able to procure the money that they need. Instead, one must try and get back on one s feet and work on rebuilding one s credit. This will also give them an idea as to where they stand and what they are capable of. A good financial planner must be sought out to help consolidate finances and pave the way for tomorrow. This will provide the necessary confidence to get out of such a situation. In the world of today, people with adverse credit need not give up hope.

Poor credit is not the end of the world.

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The majority of banks now offer no annual fee credit cards to lure in potential customers.

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Debt Settlement Agencies

Category: Finance, Credit.

As the consumer debt increases every day there has been parallel growth of debt management services. And the better services will go beyond that and help their clients to stay clear of future debts once they have successfully eliminated their present debt.

The function of these services is to help their clients get rid of their existing debt. So the services help their clients to get their financial footing back again and stay that way for the rest of their lives. This feat is mainly accomplished by counseling their clients and developing their budgeting and counseling skills. How does the debt management firm achieve this? It is only after the consumer inculcates these skills that he will be able to stay clear of the debt trap which is such a threat posed by credit cards. The main objective of Debt Settlement is similar to what it is of Credit Counseling and that is to make their client get rid of the debts they have accumulated. Debt Settlement Agencies.

But there is a difference in the way the two perform. Personal Loans. While the Credit Counseling or Debt Reduction method work on reducing the rate of interest for you to pay off your debt more easily, the Debt Settlement method actually reduces your original principal amount of loan by up to 50% -75% . Personal loans are generally a good option when it comes to credit repair. The loans are sanctioned quickly. This is because you can get a loan sanctioned with relatively little paperwork. And the loan comes with a moderate rate of interest, much lower than what you pay on your dues on a credit card.

So unlike home equity loans you are not risking something very important to you. Also personal loans don t require you to provide any security. Home Equity Loans. The reasons are simple. The home equity loan is very popular, both with the investor and the creditor. The creditor sees that his loan is secured because you are putting your most prized possession on the line.

On top of that some tax systems actually give you tax benefits on the interest of your loan if it is under the home equity loan. As an investor you will be happy because you will be getting generous interest rates from the creditor. We have just discussed four options here. Of course there are plenty more which you can avail of.

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Let s talk about the most common questions asked about frequent flier miles credit cards. Generally, points are earned based on the amount of purchases charged on the credit card.

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Britons financial difficulties are set to increase over the course of the coming months, an industry expert has reported. He added that such fiscal difficulties have also been exacerbated" a bit" on the part of financial services providers who are attempting to recoup some of the money lost via bad debt by becoming stricter with lending criteria.

Another Very Popular Option Is Debt Consolidation

Category: Finance, Credit.

Debt is a burden most consumers struggle with on a daily basis.

Choosing the correct way is a personal choice involving, among other things. The approach we take in dealing with this burden is what separates us as individuals. Family discussion, best interest rate research, and visitation with a debt management or debt consolidation professional. First, you may want to consider reducing the principal balance on a current loan, or even take this step with multiple loans. There are two distinct ways to deal with consumer debt. Paying a bit more than the minimum required and having that amount applied to the principal is one small way to reduce debt in the long run. Another very popular option is debt consolidation.

It may be wise to look into the specific loans you have, take a close look at your budget, then see if there are ways to reduce the amounts owed on the various loans. With debt consolidation, you can reduce your monthly payments by placing several loans under one all- purpose consolidation loan agreement with one lender. Debt( the amount of money owed to a bank, credit union or individual lender) is composed of just a few pieces. In addition to simplifying expenses and optimizing your budget, reducing your payment can help your overall credit profile, since debt burden is measured by comparing your loan payment as a percentage in relation to your total income. Simply put, debt is calculated by the amount borrowed, plus the interest charged for the privilege of borrowing said money, and usually some final additional administration and bookkeeping charges. When considering debt consolidation in any situation it is best to also understand the difference between secured debt, such as home mortgage loans, such as credit, and unsecured debt card bills. Tip: Be sure to include changes in interest and additional finance charges when figuring the cost of new loans and/ or consolidation loans.

With the original loans or a consolidation loan, if you are able to make the payments and don t have trouble with late- payment penalties, you are managing your debt fairly well. It is at this point that the difference between a secured loan and an unsecured loan can be crucial. But if you miss payments, the lender will have to take some action. With a secured loan, the lender may be able to take your property if you don t keep up with payments according to the agreement. A lender may even be willing to reduce or suspend your payments for a short time. Most lenders are willing to work with you if they believe you are acting in good faith. When you resume regular payments, you may have, though to pay an additional amount toward the past due total to get back on track.

But, since there is no collateral to take, the debt may be discharged if your financial problems lead to bankruptcy. If you have unsecured loans, your credit rating will suffer and you will not be able to get future credit or loans easily. This certainly does not mean that unsecured debt is the best way to go. Making the choice between a secured loan and an unsecured loan depends entirely on the individual situation and be considered carefully. In fact, to get unsecured personal loans you will have to have an extremely good credit history and, proof of sufficient, generally income. There are other bumps in the debt consolidation road that can cause trouble if they are not understood from the beginning. But keep in mind that lenders offering debt consolidation may charge high interest rates and significant late- payment penalties for those who already have trouble keeping up with current payments. (This may be necessary precisely because consolidators are working with problem borrowers. ) With one high interest rate rather than two or three your monthly payment is lower but, in the long run, you pay more in total.

The existence of several loans with high interest rates may lead you to think that debt consolidation is an easy answer. One of the key reasons for consolidating debt in recent years has been the rise in credit card debt, which often comes with interest rates that are considerably higher than with other loans, mortgages etc. Debt consolidation can help in many cases, though a change in spending habits is advisable so that new credit card debt is avoided in the future. People can build credit card debt because they spend more than their income, buying luxury items( or even things they feel are necessary) , hoping to be able to pay off the amount borrowed with future earnings. In fact, almost every reputable debt management counselor will advise treating the real cause of debt problems. To most of these professionals, debt is a symptom of other problems that must first be addressed. The lax underlying spending and saving habits of its customers.

If you have built up a lot of credit card debt or your particular situation has made it necessary to get two or more loans( and you want to simplify things with one monthly payment) , personal property such as a home or car may allow you to get a lower interest rate. In some cases, the total interest and the total cash flow paid towards the debt is lower, allowing the debt to be paid off sooner, incurring less interest. Using a home or other valuable property as collateral allows you to work with a bank or other lender to get a secured loan. Because the property is a" guarantee" for the loan, the lender may offer a lower interest rate, more agreeable payment schedule and fewer extra fees and charges. (However, keep in mind the difference between secured and unsecured loans. ) Any debt consolidation plan, whether it is a home equity loan, unsecured loan with a credit card company or even a personal loan, can add to debt problems rather than help solve these same problems. Debt consolidation can be the answer to financial problems, if it is managed properly in the correct situation. That is why it is very important to take time, to figure all, from the beginning the costs for the entire period of any loan.

Getting out of debt is not easy, but you can do it, you just need a plan.

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This Card Makes It Quite Attractive To Make Purchases, Too - Wendi Study's Finance and Credit blog:

It s actually quite rare in our society that we have the time or resources to truly make a difference, but with the Make- A- Wish Platinum Visa Card, you can change a child s life every time you buy groceries or fill your car with gas. Since that time, 000 children worldwide, more than 144 have been helped by this amazing organization, 000 volunteers standing, and with 25 ready, all that s needed is your support to" share the power of a wish. " Each time you buy anything with your Make- A- Wish Platinum Visa Card, a percentage of that purchase is donated to the foundation that helps so many children.

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Next, You And The Counselor Will Go Over All The Debts You Have To Pay

Category: Finance, Credit.

What exactly do credit counseling agencies do?

The agency will: A) Detail what you owe. To put it simply, a credit counseling agency analyzes your sources of income and your expenses. B) Give you an organized picture of your financial situation. D) Tell you the steps you need to take to reach those goals. C) Provide options that match your resources, and goals, lifestyle. Whether you first contact a credit- counseling agency by phone, e- mail, the counselor will, or in person ask you why you re there, what you d like to accomplish at the meeting, and what your short- term and long- term goals are.

You ll be asked about your income sources and tax deductions, as well as your monthly expenses. Then some fairly detailed data- gathering will take place. Having a good idea about what your monthly expenses are is very helpful, but it isn t a requirement- if you don t know, the credit counselor can help you estimate them. The counselor will suggest ways to adjust your expenses or income, to get you to a positive cash- flow position( in which more money is coming into your household than is going out) . A quick subtraction of expenses from income will tell you how much you have available for monthly debt service, if any. Next, you and the counselor will go over all the debts you have to pay. If anything is left over, you re basically done- you ll leave with an action plan and a budget you can follow to keep your expenses in line with your income.

The positive cash flow from the earlier calculation will be applied to the amount you have to pay out. If the result is negative( if you have more expenses than you have income) , you and your counselor will rework the expenses to free up cash flow and he ll tell you what your debt service would be under a debt- management plan. If you can t get to a positive cash flow, the counselor will refer you to an attorney or other community resources for additional help. This process of reducing your expenses and increasing your income will continue until you and the counselor get to a positive cash flow or it becomes apparent that, no matter what you do, the numbers just don t work in your favor. Everything described above can be done through the mail, or via e, over the phone mail. For example, you might start out on the Internet filling out a contact form and asking questions.

Often, the process involves more than one of these methods over a series of contacts and days. Then you might follow up with a phone call to clarify and discuss matters further. The method of contact you use is just a matter of what you re most comfortable with- one method isn t better than another. And you might go into an office or use the mail to finalize your solutions. Unfortunately, there is no magic wand to make all your financial problems disappear, but a good certified credit counselor will always offer solutions. Your counselor will give you a balanced perspective of what you need to do, how long it will take, and what resources are available to help you along the way. Expect more than one solution, and expect some solutions you don t like.

Your counselor will probably discuss bankruptcy, as well as other solutions. A good credit counselor offers solutions with your future goals in focus. The counselor will propose solutions not just in the light of your current situation, but in light of your future needs. A solution that works best for you is one that not only deals with current issues but takes into account how you see your future. For about 75 percent of the over 1 million people who bare their souls to credit counselors each year, advice and direction are all they need. For example, if you re planning to buy a house, get a security clearance at work, or send your triplets to college in five years, that future goal will affect the course of action that will best fit your needs. An unexpected by- product is improved financial communication.

Expect to have a customized action plan when you re finished with your credit counselor. For many couples and families, credit counseling is the first time that goals, and even some, spending priorities secrets such as hidden debts are openly discussed. To be useful, an action plan has to fit you and the way you live. You don t wear clothes that are too tight- and you won t follow a poorly fitted financial plan. If it doesn t, you won t follow it. A comfortable budget designed with your spending and saving style in mind is more likely to be something you ll follow. Expect some fine- tuning as you go.

If you re struggling toward the abyss of debt, a good credit- counseling agency can help you understand how you landed in your predicament, what you need to do to correct the problem, and how to maintain your good financial reputation. Although your counselor will anticipate as much as possible when developing your plan, he can t foresee the future. Not only can things go wrong, but with limited financial resources, every bump in the road will feel much worse. Murphy s Law applies to credit counseling in spades. Ongoing involvement with your credit- counseling agency as you navigate this credit- repair journey will help you stay the course. You should be able to go back to your counselor for additional suggestions and referrals as you go along although most people, when they have a workable plan in hand, are off on their own.

Expect the agency to make this easier for you, by giving you names, e- mail addresses, and phone numbers of people to contact beyond the agency for more help.

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The Basics Of Credit In Regards To A Mortgage

Category: Finance, Credit.

Mortgage credit repair is one of the most damaging things you may have to undertake because your mortgage is on the line. Your credit rating bears a heavy standard on your mortgage possibilities, so mortgage credit repair is vitally important if you have a bad credit rating and are looking for a good mortgage rate.

In order to learn more about this, you should learn about mortgages first and the effect that they can have on your overall credit rating and vice versa. You may find yourself in a difficult situation if you cannot properly repair your credit rating. Arranging a mortgage is basically seen as the standard practice by which people can purchase land or commercial/ residential real estate. A mortgage is a method of using property to serve as security for the repayment of a loan. This is because it presents the buyer with the option to not pay the full value immediately and rather take out a mortgage instead to cover the costs. The Basics Of Credit In Regards To A Mortgage. You would need mortgage credit repair if you were in a situation in which you required a mortgage but if your credit was not good enough to support the agreement.

Mortgage credit repair, is needed if, as mentioned your credit is in a bad place and you are unable to borrow against the property. A credit report is a report from a credit bureau that contains detailed information in regards to your credit- worthiness and your credit history. You would find this information out with a credit report. From this document, companies can decide if you are worthy of credit or make determinations based on your credit history and decide on your mortgage rate or whether or not to even grant you such a loan with terms. When you obtain your credit reports, a major step to take in mortgage credit repair is to check for errors. A credit report contains personal information, information from public records, information from collection agencies, information from various creditors, and information from inquiries. There are often errors in credit reports and these errors can cost you a lot of time and money in waiting for the right loan agreement because of the incorrect data in your report.

Always be diligent in checking reports and search for errors that may be hindering the process of taking out a loan for your family.

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Credit card is a convenient and cashless way to carry money.

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When Is It Time To Get Serious About These Fees

Category: Finance, Credit.

Most borrowers pay little attention to the" fine print" on a credit application.

Unbeknownst to them they are committed to a legal contract that is heavily weighed in the creditors favor. Most shrug their shoulders, promise themselves they ll never get in trouble with their credit card, and sign away. Yet again the" I want it now" mind- set has overcome better judgment. What is the real cost of bad credit? That legalese at the bottom of every credit application, that few seldom read, clearly outlines what will happen if you break your promise to pay on time. There is the obvious increase in borrowing costs, not to mention the hassles of opening up new credit lines. What about the added stress to your family, missed opportunities that having good credit would have allowed you to capitalize on, and the fact that now you are" marked" as a bad credit risk with your financial history open for all potential lenders to see?

The extra interest you pay is only scratching the surface of the problems created. Even if your problem is short- term your creditors do nothing to help you. These fees do nothing for you, but help the creditor in a couple of ways: They cause you to focus on their bill instead of another creditor s bill. They simply enforce the credit agreement and hit you with some fat fees. The creditor makes more money off you because of the late fees you agreed to pay when you signed the agreement. If you fall behind several months in your house payment you may be hit with huge fees that have to be paid in full to avoid or stop foreclosure. If you think the fees are bad on credit cards they are even worse on secured loans, such as mortgages.

When is it time to get serious about these fees? As soon as those show up it is time to pick up the phone and call the creditor and ask to have the fees waived. As soon as you realize you may be obligated to pay late fees, deficiency fees, legal fees, and default rates to name a few. Start by explaining how you plan to get current and let them know you need their help, not their fees. That is why we take the time to meet with our clients and explain ALL of their options to provide comprehensive foreclosure help. There are many reasons why homeowners sometimes are unable to pay their mortgages and every situation is unique.

No matter what your situation, you have options and we can help you stop foreclosure.

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As long as they are able to handle the responsibility that comes along with it well.

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Debt settlement is increasingly being adopted as a popular means to get out of credit card debt.

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First, Be Sure To Use An Authorized Credit Reporting Site

Category: Finance, Credit.

American consumers are allowed to check their credit annually from the three major credit reporting agencies: Experian, and TransUnion, Equifax. It is wise to take advantage of this free annual service by spacing out credit checks over the course of the year, as a consumer can keep a closer eye on his or her quarterly credit reporting.

What most people make the mistake of doing is checking all three at once. First, be sure to use an authorized credit reporting site. If there are any previous credit reports available, gather them up for review and comparison purposes. The free annual credit reporting process does not require a consumer to sign up for monthly monitoring, fraud alert protection service, or any other optional services provided by that specified reporting agency. It is also necessary to have on hand any banking, or current credit, past residence card information, as sometimes it is needed during for verification purposes during the credit checking process. If there have been previous credit reports in your name, it would be prudent to select the credit reporting agency that issued the oldest report.

Next, choose which agency you wish to start the credit checking process with. This way, all information can be compared to previous information contained in the old credit report for a more- long term comparison. To take full advantage of this process, try to space out the credit checks over an annual basis by performing a credit check every quarter. Be sure to keep a log of when you performed the new credit check, with what company you chose, and make sure to highlight any changes or discrepancies from the old credit report on to the new one. A good schedule to keep would be to perform checks in March, July and November. In addition to performing free credit checks, it is also a good idea to go ahead and spend the small investment( usually less than$ 10) and check your FICO score. By checking your credit report with once agency during these months, a consumer is guaranteed to receive three updates during the year for free.

This is especially important for consumers planning to purchase new insurance, vehicles, real estate, or other avenues which require a company to perform a credit check. Having a clear, error- free credit report, along with an excellent FICO score, will greatly improve your chances of appearing to bank and finance companies as someone who is very responsible with their personal credit management.

The National Debt Line Is A National Phone- In Helpline

Category: Finance, Credit.

The National Debt Line is a national phone- in helpline.

Their helpline can be used all week long and there is also an internet site that has lots of practical assistance and support on it. It gives( free of charge) , independent and confidential guidance to people on settling debt problems in the United Kingdom. National Debtline is a branch of the Money Advice Trust or MAT for short, and is a fully registered charity. I would like to begin this article by providing a range of definitions of terms used. The Money Advice Trust presents consumers a structured method to correcting critical indebtedness in order that they might take back control of their money. A bad debt is any kind of borrowing where the money has not been paid back in accordance with the terms and conditions of the loan agreement. A bad debt on your credit file will make it more difficult for you to borrow at a future point.

A debt tends to become bad where it is unlikely that the creditor will ever be able to regain the money. A debt management company helps you re- arrange your finances in order to get you free from your debts. A debt consolidation loan is when you borrow money to pay off current debts. However, they usually charge a fee for their services and they may recommend taking out more lending! So essentially you are lumping together all of your present debts, clearing them with a debt consolidation loan and then making only one payment monthly to clear the outstanding balance. In addition there is the psychological element of having just one monthly obligation to manage instead of lots.

You might find that it is less expensive also, as obtaining a lower APR loan to pay off a credit card with an outstanding balance accumulating interest at high APR makes perfect sense. If you are experiencing financial difficulty and have debt problems, then it makes sense to see a specialist for free help and advice. There are a number or organisations who can help, such as your local Citizens Advice Bureau( CAB) ; Money Advice Centres or Law Centres( you can find their details in your local telephone book) ; The National Debt Line( helping people living in England and Wales) ; and AdviceUK( or Adviceni for people living in Northern Ireland) . These organisations can help you sort out your finances and even negotiate with your creditors on your behalf. You may have to wait for an appointment, so do let your creditors know your situation. Once you have made an appointment to see one of these organisations, make sure you get together all the necessary financial information that they will require. Many will be pleased for the involvement of an independent specialist and may not take any further action until an agreement has been reached.

This will be information such as: details of your income and expenditure and that of your spouse/ partner. details of any County Court Judgements/ other arrears. bills. credit agreements. By seeking specialist advice, you are taking the first step to tackling your debts.

Credit Card Is No Longer A Luxury

Category: Finance, Credit.

Credit card is no longer a luxury. Recognising the increasing need for this convenient resource in the face of a dynamically growing number of financial transactions, there are many companies who are coming up with innovative offers.

It is turning out to be a basic need. There are a lot of business card plans which the major companies have devised, in order to see to your convenience. It is upon you to decide the one best suited to you according to your convenience, especially keeping in mind your budget and spending habits. Essentially, many of them offer you cards at low- interest rates or they may offer many shopping discounts. One of the best places to look out for a credit card is on the Internet. Card offerings are many and the Internet can supply you with a lot of resources to find that out.

After logging online, you can check out various offers available in the market. It is a good idea to glance through the lists of offers available. When you decide the one that suits you, you can fill out the application form to request for a credit card. In fact, it is most important to carefully go through the quotes provided for each credit card and to compare the terms and conditions of every offer that you find interesting. You would require filling in general details, such as your address, credit history, age, and the like. One important thing to remember with the use of any credit card is to clear all outstanding balances at the due dates, failing which you are likely to incur huge penalties as well as unnecessarily miss out on the available interest- free period. After verification of your request and approval thereafter, which is done in not more than a few minutes by the credit card verification officers, you can receive the card via postal mail in a few days.

I Want To Show You How To Protect Your Credit

Credit held jointly can haunt you. especially after a divorce. What most divorced couples find out after it's too late is that both borrowers on a joint account are responsible for the loan- regardless of what the judge says- until the loan is either paid off or refinanced in one person's name.

With the divorce rate as high as it is( about 43% of all first marriages end within 15 years according to a study by the National Center for Health Statistics) be sure of your long- term relationship before you eagerly enter into a loan together. And if your ex- spouse is more than 30 days late paying the bill, your credit reports will also be affected negatively and your credit scores will plummet. A couple gets divorced, the judge says the husband is responsible for paying off the credit cards and loans, and the wife goes home happy, thinking she's off the hook( or vice versa) . I' ve seen it happen hundreds of times. Then, a few months later, after the ex- husband fails to make payments or defaults on some loans, the ex- wife's credit scores sink. What I' m trying to say is that a mean- spirited spouse can continue to ruin your credit for many years after a divorce by making late payments( or not making them at all) on any credit held jointly.

And keep sinking. And if you cannot afford to pick up the slack. things will be rough. You have to be proactive and get your name off of all joint accounts. or volunteer to be responsible for all joint accounts to ensure they get paid on time. So remember, just because a judge says it's so- doesn' t make it so. For some real world advice. read a collection we' ve compiled from divorced Life After Bankruptcy readers to give you a balanced perspective. Of course, I' m not trying to promote divorce. Go here to download the report.

I want to show you how to protect your credit. OK, let's say that you have really low credit scores and your spouse has great credit scores. How the spouse with good credit can speed up the recovery of the spouse with bad credit. The best way for you to increase your scores is to have your spouse add you as an authorized user to their credit card accounts. But here's the interesting part. As an authorized user- you' ll get a new credit card with your name on it- but the primary card holder will still be responsible to pay the amount owed, regardless of who charges on it.

Most lenders will report the entire credit history of the account on the authorized user's credit reports. But, don' t pick just any card to be an authorized user on. So, you instantly get a good credit history added to your credit reports! You should choose the accounts wisely. Another word of caution. I would select the oldest accounts, with the highest credit limits, that have the lowest balances.

Just remember, if you' re the primary cardholder and any of your authorized users go on a shopping spree, then fly the coop- you' re still responsible for the balance owed. ".But my husband charged my account to the hilt and left me. " Doesn' t matter. ".But my husband lied to me, and left in, stole my children the middle of the night without me. " Lenders don' t care. ".But my wife was having an affair with the pool boy and maxed all of my credit cards that she was an authorized user on. " Tough luck. Lenders don' t care what's going on in your personal life. You get the idea. All they care about is that the balance gets paid. And if you' re going to become the authorized user of your spouse's credit card, make sure everything's going OK at home first and that there are no surprises around the corner. So, if you have good credit, please think twice about sharing it. Sometimes it's just about your FICO credit scores. putting your best foot forward.

For example, when you apply for a department store credit card, there's no negotiating. When applying for credit cards your scores are either high enough to qualify or they aren' t. You' re either approved or not. So put your best foot forward at the beginning. The decision is based on one of your FICO credit scores. The person who has the highest FICO credit scores should apply for credit.

When it's time to apply for new credit it's all about who has the highest FICO score from the credit reporting agency the lender uses to make a lending decision. Michele and I do this all the time. Sometimes my scores are higher. It doesn' t matter to us whose scores they use, we just want to qualify for the best terms. Sometimes hers are higher. In fact, the" putting your best foot forward" strategy isn' t always exclusive to credit cards- it works with any lender that makes lending decisions based primarily on FICO credit scores. When I decided to keep it a little longer, my scores were high enough to get the best terms- so I refinanced using my scores.

For example, the car I' m driving right now was originally financed by one of my wife, Michele's FICO scores. You can purchase your credit scores to determine who should be applying for unsecured credit cards right now. Once approved, you can add your spouse to the account as an authorized user. "By the power vested in me. Preferably whoever has 700+ scores. I now pronounce you. finished reading this article. "