Many lenders avoid people with a bad credit history or those that have no credit history at all because borrowers in these groups are generally a higher risk than others.
However having a poor credit history does not mean that you cannot get a credit card and there are some smaller credit providers who specialise in providing credit to these people.
Generally the main difference is that interest charges are higher than on standard good credit credit cards because of the higher risk associated with having a bad credit rating.
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There are two major advantages of a credit card for people with bad credit
The first is actually getting access to credit. As previously mentioned, people with poor credit ratings are deemed to be high risk and most mainstream lenders would rather not take the chance of the borrower defaulting.
Naturally this can affect a lot of people and many that are not bad borrowers. Some people may have never had any credit previously and others who are generally responsible borrowers can end up with a poor credit rating due to events outside of their control.
So credit cards for people with bad credit will give access to credit for most people, whether they have defaulted previously, have mortgage arrears or have never borrowed before. Bad credit card companies will entertain applications from these people the chance of approval is high.
The second advantage is that using your bad credit credit card responsibly is an excellent method of proving that you are worthy of an improved credit rating. Just use the credit card regularly and ensure that payments are made on time every month. Also make sure that you stay within your credit limits and your credit score is liable to improve month upon month.
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Death and finances are still considered to be taboo subjects in our society, but this is a question worth pondering: if you die while you carry credit card debt, what will happen to that debt? Will your surviving family members be held responsible?
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Thankfully, no. Credit card debt is a type of unsecured debt. As such, the money you owe will be taken out of your estate after you die. If your estate can’t cover the costs, the credit card company will consider the debt to be uncollectible, and they will charge it off.
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It’s worth noting that some collection agents will try to convince your surviving family members that they should pay the debts you incurred. They have no legal obligation to do so, and refusing to do so will not reflect negatively on their credit reports. Be sure that your loved ones know their rights. A probate attorney can be a useful ally if creditors won’t leave your family members alone.
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Though unsecured debts aren’t the responsibility of your survivors, there are special circumstances in which they may be liable for payments. For example, if your relative is an authorized user listed on your credit card account, they will be responsible for any charges they make following your death. Once those charges have been paid, the account is typically closed, leaving the authorized users with a lower credit limit and a lower credit score.
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Joint account holders can still be held responsible for outstanding balances on co-owned credit card accounts. For example, if you took out a credit card in both your name and your spouse’s, your spouse will continue to be held accountable for the debt on that account. The spouse will also continue to have access to the credit card until they close the account.
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It’s not fun to think about death and the effect it will have on your credit card debt, but it’s important for your survivors to know that they have rights and responsibilities. They should keep all documentation of the account, any charges they’ve made, and any collection attempts. The burden of proof is on the credit card company. For more information, do an Internet search or consult a local attorney to become more familiar with the laws in your state.
<p><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.
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Lurking around the corner is that pesky April 15th deadline for filing your federal and state income taxes. In addition to the pressure to get these completed, you have credit card companies who are encouraging you to pay your taxes with your cards. Talk about a discouraging activity. You go from the frying pan to the fire when paying in this manner and here’s why.
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Processing fees. Since the IRS allows only certain companies to process payments to them, and there is an accompanying fee that goes along with your payment. That fee can range from 2% to 3% of the amount charged. If you owe ,000 on your taxes and pay with a card, you could also pay an additional or more from this fee. Also, other fees and charges apply on your credit card account pursuant to your agreement.
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Incurring Interest. You will incur interest charges on your account if you do not completely pay off the amount before the due date. This sounds a lot like double-jeopardy (it is not, but it sounds like it). Can there be anything more discouraging than paying your taxes with a credit card and owing interest on that balance, too?
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Locks you into payments. Now you have payments on your credit card to pay for your taxes. If you are in an employment situation where you taxes are taken out of your check and they are not enough, then you should increase the amount so that you break even the next tax year. If you pay quarterly, then increase those payments as well.
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In addition to all of this, you must consider the following reasons to be wary about paying your taxes with your credit cards.
Your credit limit. If you get close to your credit limit by using your card to pay for taxes that is a red flag to the credit card company. They have certain triggers that cause them concern, and getting close to your limit is but one of them. You might experience an increase in your interest rate because you are an increased risk.
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Cash advance fees. If you do choose to pay your taxes with your credit card, that your payment is not considered a cash advance. If so, then you will be assessed and additional fee which is figured as a percentage of the advance. That can add to the already large amount of fees that you incur as a result of taking this path.
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Security. There is something inherently dangerous in sending in a credit card number to pay for your taxes. Writing it on your return is opening yourself up for a possible theft opportunity for those who are unscrupulous. Your card number must be protected at all times.
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IRS will allow payments. Here is a tip that you have to consider before paying with a credit card: the IRS will be glad to set up a payment schedule for you to allow you to pay your taxes directly to them. It is more common than you might think. Yes, they do charge interest and any other penalties that apply, but they are not nearly as bad as a credit card would be. Consider this strongly as an alternative to using your card.
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Use your refund to reduce debt. If you get a tax refund of any amount be sure to apply it to any debt that you have which can move you towards retiring that debt completely.
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Using these suggestions you will see that paying taxes with a credit card is not a good idea. Make sure you use the alternatives first.<br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.
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We’ve all heard the tales: government officials, school administrators, and even police officers have been caught using their business credit cards to finance personal shopping sprees. Those cases of credit card abuse are infuriating because taxpayers end up footing the bill for such purchases. But what if you’re a manager whose employees have access to corporate credit cards? How can you make sure that their spending is legitimate?
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First, it’s important to define the boundaries of acceptable credit card use. Your company probably has a policy in place. Make sure that the employees receive a printed copy that’s easy to understand. Get them to sign off, stating that they’ve receive the guidelines and agree to them. These guidelines should include deadlines for receipt submission as well as a list of permitted purchases.
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Make sure that your employees know what will happen if they abuse the system. A system of consequences should be in place, and those consequences should vary depending on the severity of the employee’s actions. A couple of accidental purchases could merit a warning, while using the corporate card to finance a personal vacation should be grounds for termination - and possibly litigation!
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Finally, be vigilant with the corporate credit card statements just as you would with your personal bills. Take the time to read the statements each month, and speak with employees about questionable purchases. If your card offers extra security features, such as single-purchase limits or filters, take advantage of them. That will keep employees from making large purchases, or charging goods and services at retail stores.
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Corporate credit card use can be very convenient for employees, but it’s important to make sure those cards are being used as intended. A little vigilance and a few guidelines can prevent a major financial headache down the road.
<p><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.
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Consumers are looking forward to the implementation of the July 1, 2010 credit card rules which are designed to prevent some of the nastier tactics of credit card companies. Because the credit card industry has such a long time to “prepare” for the new laws, many consumers in the meantime are getting slammed with higher interest rates, changes in due dates and decreased credit limits as the credit card issuers look to reduce their risks and prepare for the changes.
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The changes that will take place in 2010 are the biggest changes made to the credit card industry in nearly 30 years. Regulators from the Federal Reserve, National Credit Union Administration and the Office of Thrift Supervision approved the changes in an effort to ensure the consumer protections stated by the Federal Trade Commission Act are being upheld. The Federal Trade Commission Act bans unfair and deceptive trade practices, and as any credit card user has probably experienced at one time or another – credit card practices are not always fair to consumers!
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Not all consumers will benefit from the new credit card rules in 2010, though. While most credit card holders will receive protection from double-cycle billing processes, limits to how often and for what reason the interest rate can be increased, a set grace period for making payments without penalties and improved payment allocation so that additional payments will pay highest interest debt first – not everyone qualifies for these protections.
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<b>Commercial Credit Cards</b>
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Business credit cards are not considered “consumer” cards, and therefore do not receive the same level of protection. Whether you have a small, one person business or a large corporate company – the credit cards used for those businesses will not fall under the new protections to be implemented in 2010. Commercial cards are any cards used for business or corporations – including debit and prepaid cards, credit cards and store credit.
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Businesses regularly rely on credit cards in order to improve their cash flow and grow their businesses. Unfortunately, if the credit card industry is forced to reduce deceptive and unfair practices on consumer cards, they may try to recover some of that lost revenues on business credit card holders who are not covered by the 2010 rules!
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<b>Returning Military</b>
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A teleconference was held in February to discuss the upcoming credit card requirements, with representatives from the Federal Reserve, National Credit Union Administration, Office of Thrift Supervision and Benjamin Olson – an attorney for the Federal Reserve in attendance. For more than two hours, the attorney and representatives answered questions from credit unions and credit card lending institutions regarding the 2010 rules.
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A question was posed by a lending institution regarding returning Military personnel. Currently, there is a “Service Members’ Civil Relief Act” that protects active military members while they’re deployed by requiring credit card companies reduce interest rates on their credit cards to 6%. When the military members return home though, the rates are returned to their previous, usually much higher, amounts. In 2010, credit card lenders will be restricted involving when and how much interest rates can be increased for cardholders; and returning military personnel is not listed as one of the approved reasons to increase interest rates at this time.
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The question stumped the Federal Reserve attorney and the situation is currently under review. <br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.
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Did you know that money squabbles are the leading cause of divorce in America? It’s sad that money can cause so many problems. If you’re dealing with a large amount of credit card debt, things might get pretty stressful when the topic comes up. You might feel like you can’t talk to your partner without starting a fight. If this sounds familiar, try these helpful suggestions for calmly discussing credit card debt with your significant other.
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To start things off on the right foot, you need to be honest about the amount of debt you’ve accumulated. The goal is to have a completely open and honest discussion that fosters trust. You cannot hide your debt from your partner and expect them to trust you. If you’ve been amassing secret debt, now is the time to come clean – just know that your partner might feel angry and betrayed.
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Next, look at your financial statements to see how much debt you can afford to repay each month. Get rid of unnecessary expenses so that you can route more money to your credit card bills. Make at least double the minimum required payment. Anything less, and interest rates and finance charges might sabotage your progress.
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Make a repayment plan that you both can live with. Some couples like to tackle their smallest credit card balances first, for the sense of accomplishment they get when they pay off a card. Others prefer to chip away at large balances first.
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Finally, compare your spending philosophy with your partner’s. Are you a shopaholic who lives for the moment, while your partner scrimps and saves every penny? Your childhood may have more to do with your current spending habits than you’d think. Maybe you were indulged as a child, while your partner grew up in a poor household where frugality was required. Chances are, your partner isn’t trying to put a damper on your fun. They’re just taking a long view and trying to secure a better tomorrow. Listen to each other’s thoughts with an open heart, and never assume the worst.
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Now that you’ve fessed up about your credit card debt and made a plan to tackle it, you can breathe a sigh of relief. Chances are, you’ll feel more relaxed, and your relationship with your partner will be smoother than ever. If you still have frequent fights about money, couples therapy is an excellent way to improve your communication skills – and your marriage.
<p><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.
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One of the options available for those with credit cards is credit insurance. The unfortunate thing is that some cardholders may already be paying for credit insurance and might be totally unaware of its existence on their account. This is unfortunate because credit card insurance can cost between .00 and .00 a month. It would be wise to examine your monthly statement to make sure that you know whether or not you are paying for credit insurance on your credit cards.
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Proponents of credit insurance say that it offers extra protection for borrowers and there’s no doubt that someone who carries a lot of debt and whose health is questionable could benefit from this type of insurance. On the other hand credit insurance is often viewed as a large profit maker for the insurance companies while not offering many positive benefits for consumers.
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The chief purpose of credit insurance is to make monthly payments or pay the balance if the cardholder is unable, pursuant to the terms of the policy. While not very popular among consumers it is becoming more and more common. Here are the components of credit insurance that you should know:
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<b>Credit Disability Insurance. </b>This makes payments on your balances if you become disabled.
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<b>Involuntary Unemployment Credit Insurance.</b> If you are terminated from your job this will make your payments for you.
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<b>Credit Property Insurance.</b> This provides coverage for repair and/or replacement of items that are bought on credit or used as collateral.
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<b>Credit Life Insurance.</b> This feature pays off the debt completely in the event of the death of the insured.
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<b>Credit Insurance Policy Coverage.</b> When you examine these offers, you will see these details on credit insurance policy applications:
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<b>Voluntary Enrollment.</b> Credit insurance is not mandatory for you to purchase. Most people opt out of this feature at the time of the offer.
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<b>Unconditional Cancellation.</b> You can stop the credit insurance anytime you desire. There are no penalties associated with this action.
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<b>State Regulated Rates.</b> State commissioners regulate the rates that are charged and they are calculated without regard to age and gender or health. The most common rate of the insurance is around $.75 for each 0 of loan coverage per month. For example if you carry a monthly balance of 00, the premium would be about each month. While this may not seem like a lot of money the fact is that you are spending over 4 a year for the option.
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<b>Monthly Premium Fee.</b> If you have credit insurance you will find a monthly fee on your statement which is clearly delineated as such.
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<b>Monthly Payment Benefit.</b> This feature is for the minimum monthly payment for the borrower if they become disabled or unemployed.
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<b>Full Payment Benefit.</b> In the event of the death or dismemberment of the insured, the full benefit will be paid with a maximum benefit that is usually set at ,000.
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<b>Credit Rating Protection.</b> Another benefit is that the cardholders personal credit rating is maintained in the event of disability or unemployment.
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Cardholders must be wary that the coverage pays only the monthly minimum payment every month. They are responsible for the rest.
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When determining whether or not to get credit insurance, keep in mind that you are paying a premium for the coverage. The question as to whether or not you should obtain the insurance is dependent upon your situation. Since everyone’s circumstances are different, no hard and fast rule can be applied to all concerning credit insurance. This is something that only you after viewing your financial picture must decide. With a careful examination of the facts you can make a wise decision in this area.<br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.
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Credit cards offer us convenience, buyer protection, and even a boost to our credit scores. But they can also ruin your credit if you don’t use them wisely. Let’s take a closer look at five common mistakes new cardholders make, and how you can keep yourself from following suit.
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Mistake #1 – Having Too Many Cards
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It’s true that having a lot of available credit is good for your credit score. But applying for a lot of cards at the same time will raise lender’s eyebrows. Plus, having too many credit cards proves to be too much temptation for some zealous shoppers.
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To avoid this mistake, pick two or three cards with low interest rates and credit limits of ,500 or more. Don’t apply for more. If you have too many credit cards already, closing your accounts will lower your credit score. Instead, pay off the extras and only use them for a small purchase every few months to keep the accounts active.
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Mistake #2 – Ignoring the Fine Print
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Credit card terms and conditions can be hard to understand, but you have to try. Ignoring the terms and conditions won’t make them go away. Many cardholders are taken by surprise when their interest rate suddenly spikes or their credit limit goes down.
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Don’t make this mistake. Read through your terms and conditions. If you have trouble understanding the phrases, call your credit card’s customer service number or do an online search for a credit glossary.
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Mistake #3 – Not Reading the Statements
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Reading your monthly statements is at least as important, if not more so, than reading your terms and conditions. If you don’t keep track of your monthly charges, you could be paying for a lot of stuff you didn’t even buy.
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Credit card fraud is rampant, so check your monthly statements for unauthorized charges. Some crooks try to sneak in small charges, ten dollars or less, hoping that you won’t catch on. Whenever you find a charge that you didn’t make, call your credit card issuer to report the fraud.
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Mistake #4 – Making Minimum Monthly Payments
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Minimum monthly payments typically range from 2% to 5% of your total balance. If you only make payments at this rate, it will take years to pay off your credit cards. Your lenders won’t mind, though; every month that you carry a balance, they get to collect interest payments and financing fees.
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Making minimum monthly payments will keep you in debt for a very long time. Whenever possible, double up on payments to get your credit card balances down to a manageable size.
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Mistake #5 – Overspending
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This one seems obvious, but it’s a real problem for many consumers. When you see something you just have to have, credit cards make it easy to impulse shop. This is how debt horror stories get their start.
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Before you make a purchase with your credit card, sit down and take a hard look at your finances. Can you really afford it? Do you really need it? How much will your monthly payments be, and how long will it take you to pay for the item? By answering these questions before you buy, you are taking control of your finances.
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Credit cards are a modern convenience, but only if you use them in the way they’re intended. Use this article as a reference when you find yourself slipping into bad credit habits.
<p><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.
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In today’s harsh credit crunch, your credit score is more important then ever. Fair or good credit won’t cut it any more. To have a chance of getting approved for big-ticket items like car loans and mortgages, you’ll need to clean up your credit. Here are five steps you can take to boost your credit score - fast.
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<b>Step 1 – Order your credit report.</b>
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Before you can raise your credit score, you have to know what it is. Get a free copy of your credit report from <a href="http://www.annualcreditreport.com">annualcreditreport.com</a> or order your credit score from <a href="http://www.myfico.com">myfico.com</a>. You’re entitled to a free copy of your credit report each year, or any time you’re denied for credit. While these free reports might not contain your credit score, they will give you some insight into what’s bringing it down.
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<b>Step 2 – Dispute errors on your credit report.</b>
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Most credit reports contain errors. Your credit score could be suffering because of negative items you weren’t responsible for. You can dispute these errors by following the guidelines at the <a href="http://http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre21.shtm">Federal Trade Commission</a> web site.
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<b>Step 3 – Pay down your credit cards.</b>
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Having a lot of available credit is good for your score, but having a lot of debt will bring it down. The best scenario is to have several credit cards that have very few charges. If your cards are almost maxed out, your score could drop by a hundred points or more. Pay down your balances as quickly as you can, and resist the temptation to use the cards while you’re trying to pay them off. You don’t want to sabotage your efforts.
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<b>Step 4 – Don’t apply for too many cards. </b>
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If you have a substantial amount of debt and apply for more credit cards, lenders might take this as a sign that your spending is out of control. Don’t apply for more than one card every six months. Each credit card application you submit will be logged on your credit report, and each one can ding your score by a few points.
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<b>Step 5 – Make your payments on time, every time.</b>
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Even if you can’t afford more than the minimum monthly payment, make sure you pay your credit card bills on time. Each time you’re late by 30 days or more, your credit report will reflect a negative item in your payment history. If your credit card account is closed due to non-payment, it can haunt your credit for up to 7 years.
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Of course, the best way to pull up your credit score and get out of debt is to make more than the minimum required payment each month. If you can double or triple the minimum amount, do so. The faster you pay down your card balances, the faster your credit score will rise.
<p><br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.
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Many people across the country have found they need a second income to survive. While many will take a weekend or evening job in addition to a full-time gig in order to get by, many other entrepreneurial types will be trying their hand at starting a side business, based on a hobby or passion they have for their particular talent. Whether it be a business involving crafts, accounting, cooking, or any of the many other ideas people are developing, it is very important to remember that there is always a potential for these little side business to grow quickly into a profitable and legitimate business or career.
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In fact, many freelancers and small business owners will tell you that the potential earnings from a small side business will far out weigh what can be earned at a part time job. When you combine the earnings from a side business run out of your home with the savings you have not having to drive to a part time job or prepare lunches to take to the second job (or even more savings if you normally buy lunches when you’re working) the amount earned from a side business is far greater.
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<b>Side Business is a Full Time Effort</b>
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With any self-starting business or business in general, it is essential that the operation runs as smoothly as possible. Because one of the goals of most entrepreneurs is to make a profit, money management is a huge responsibility, no matter how small the business may be. Maintaining accurate financial records are very important for tax reasons, growth preparations, and for the bottom line of profit. Businesses who spend more than they earn likely won’t get very far.
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<b>Keeping the Financials Straight</b>
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One way for small side businesses to acquire an accurate financial picture of how the business is functioning from the start is by using a credit card designed especially for small businesses. By tracking spending from the start using the credit card and the monthly reporting statements, businesses looking to grow will have an accurate understanding of what is necessary for expansion, should the business remain successful. This will be especially important in the event additional financing is necessary. Lenders like banks and private investors will want a solid track record of profits and operating expenses for the business before they would consider loaning money or investing in a new business.
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<b>Plan for Growth</b>
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Side jobs, especially one that an owner has a passion for doing, can truly amount to the next great company with a lot of work and dedication. It is definitely a time to remain progressive in business practices and starting off on the right foot will enable a business to keep moving forward. Small business credit cards not only help with accurate accounting, they also can help to build a positive credit rating for a company. With a solid credit history, a new company can benefit from an increased line of credit. Profits from the company can suffer greatly when spending incoming cash on business needs. Using the right business card for your small business can also be beneficial if the rewards program selected offer rewards that make sense for a company, such as cash back rewards, discounts on business travel, or discounts on office supplies and equipment.
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Earning a second income by starting a new business has an excellent potential for growth and prosperity, provided it is done correctly and managed well. Keep track of spending and making notes about operation of the business will be an invaluable resource for a business plan to support expansion. <br><br>This article has been provided by Creditor Web. At CreditorWeb.com you can compare over 100 credit cards from multiple banks and apply for <a href="http://www.creditorweb.com/">credit cards</a> online.
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