How to Decrease Your Mortgage Payment by Hundreds of Dollars

Obviously there is some turmoil in today's real estate market. Sub-prime lenders have given mortgage loans to a lot of folks who really couldn't afford the loan. And within a year or so, many of these individuals could not make their monthly payments and were eventually foreclosed upon. For many, the only option to lower a mortgage payment is to refinance to a lower interest rate. Unfortunately, in today's market, that isn't an option banks are affording many home owners. However, there is a certain type of homeowner for whom it is easier than one might think to substantially decrease ones mortgage payment. And oddly enough, this type of homeowner is the one with TWO mortgages. Specifically, a HELOC (Home Equity Line of Credit).

HELOC owners have MUCH more freedom then they ever realize. The fact is, there are several simple ways that the average Joe can utilize to lower their HELOC bill. There are no programs to sign up for or services to pay. These methods are easy to implement and can be initiated immediately! In this article I'll go through just a few, although there are several others.

1. What is your HELOC balance? In other words, on how much money is your monthly HELOC bill calculated? Perhaps you already realize this, but your HELOC payment is calculated based on the account's average daily balance. For the vast majority of people, this balance only changes once a month: when you pay your bill. However, if you're making interest-only payments (as many do with HELOCs), then your monthly (and more importantly your average-daily) balance NEVER changes. This means you pay the same amount, month after month. However, if you could find a way to decrease the balance in your HELOC, then your average daily balance would also decrease, and your payment would be lower. So far this is all common sense. The higher your loan balance, the higher your monthly payment. Duh. Now comes the innovative method...

How much money do you have in your checking/savings account? Chances are good that it's more than you need for your monthly expenses. If this describes you, congratulations. You have just discovered the first (and perhaps easiest) way to decrease your HELOC payment. Here's what you do: take all the money that you don't need for monthly expenses, and put it into your HELOC. That's right. Clean out your savings account, leave just what you need for monthly expenses in the checking account, and dump it all into your HELOC. This does one extremely important thing: it decreases your average daily balance, and thus the amount on which your payment is calculated. In other words, you pay less each month!

Now some may say, "wait a minute", why would I put all my money in my HELOC account? What if I end up needing that money for something?" That's the great thing about a HELOC, you can take money out WHENEVER YOU WANT. That means if you need a few thousand dollars extra one month to buy a new car, but you've put all your savings into your HELOC, don't worry! All HELOCs come with checks and/or check cards, which you can use IN THE SAME WAY AS YOU WOULD A CHECKING ACCOUNT. You can deposit money or withdraw it WHENEVER YOU WANT.

The take home here is this: put as much money as you can in your HELOC and let it sit there, offsetting finance (interest) charges. Okay, now for #2.

2. Use a 0% interest credit card balance transfers.

These things are literally FREE MONEY. Sign up for a 0% balance transfer credit card (you probably get these offers from time to time in the mail, if not http://www.creditcard.com is a great place to shop for one). Then transfer the balance of the credit card's limit (or whatever portion you want) to your HELOC account. The money will sit there, month after month (most of these 0% offers are for 16-18 months) offsetting interest and lowering your monthly payment.

I myself have been using these and other equally simple methods for about 7 months now, and have lowered my payment over $165! Each month I'm paying more than $165 LESS than I was 7 months ago. That's $165 more each month I can spend on taking my family out to eat, or putting into an investment, or buying toys!

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Top Ten Money Apps for the Blackberry

Need to manage your money and cannot take your laptop everywhere with you? The following ten money apps for the Blackberry can help you with your financial needs:

1. Mobile Checkbook - This handy app allows you to keep track of all of your bank accounts and credit card accounts. No need to write everything in the ledger when you can input it here and have it do the figuring for you.

2. MiBudget - Set up a budget and stick to it with this app for the Blackberry. It can be used for personal or business and is fully customizable.

3. Stocks + - Stocks + allows you track your stocks or stocks that you are interested in investing in. With this app you never have to search online or in the paper to see what your stocks are doing.

4. VQ Mileage Tracker - You may be thinking how is a mileage tracker considered a money app? With gas prices the way they are these days, keeping track of how much fuel you are using can help you to better manage your driving habits and can save you money.

5. Mortgage Payment Calculator - Thinking about purchasing a home but are not sure what the payments would be or how much you can spend on it? This calculator figures in every aspect and shows you your monthly payments.

6. Currency Exchange Rates - Anyone who is traveling to a foreign country needs to know the exchange rates. This calculates currency for over 120 countries.

7. Bill Log - This app allows you to track and keep a record of your monthly bills. They are not always due at the same time each month and for this reason some payments may get overlooked. This is not a problem when you have the reminders turned on.

8. ChargeBerry - Those who take their work on the road can appreciate the ability to run credit cards directly from their Blackberry. No more waiting to get back to the office to process a credit or debit card payment.

9. MyTimesheet - Many people have to punch in and out at work. If you want to keep your boss honest, use this app to keep track of your hours.

10. CreditCard Manager - Using this app allows you to keep track of all of your credit cards along with their payments. Know in an instant how much balance there is left on each card with just one look at the app.

Managing money does not have to be a chore when there are so many great apps for the Blackberry for this task. You can keep track of every aspect of your finances all in one place whether you are at home or on the go.

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Wealth Creation A Personal Financial Plan

Creating your own personal wealth, from whatever means of income you enjoy, requires knowing where you're going, and accounting for your own personal finances. It is essential to know what you are worth - your assets and liabilities - and Owner's Equity - before you can start to develop a good
financial plan to create wealth.

In the world of accounting Assets = Liabilities + Owner's Equity so this is what we have to establish now.

Firstly you have to work out what your assets and liabilities are, then you can calculate your Owner's Equity. When you know what you are worth, developing a financial plan to reduce your debt and achieve your financial goals is the frst
step to personal wealth.

Step 1. Calculate the amount of your outstanding liabilities (or money you owe). This means you write down in a list exactly how much you owe right now on
your mortgage, credit cards, and any other bills or loans.

Step 2. Now make a list of all your assets (dollar value you would get for these if they were sold). For example your cars, home and cash you have in the bank - list all your major assets.

Using the Assets = Liabilities + Owner's Equity equation we gave you before, calculate what you are worth. Most financial or credit advisers agree you need to allocate money every month into responsible saving, investing and paying down your debts as crucial part of your financial success. It's not enough to just put money in the bank when you are also carrying a credit card balance because you are losing the benefits of any interest earned on your savings.

To increase your Owner's Equity you must pay down your liabilities and avoid borrowing more money to buy more assets. It's dificult sometimes to stick to this plan when there's advertising in your face all the time to buy this, buy that and buy it NOW! - the "must have everything now" attitude. But you must stay with your financial plan if you want success and personal wealth.

Here is an example of a good financial plan (but this is by no means th only one):

1. The money you are currently investing or putting into your savings account every month, divide the total of it by 3, then -

2. Pay off one third of this money every month to your outstanding debts.

3. Pay one third of this money and deposit it in your savings account at your bank. This will accumulate into a pool of money for your monthly needs. Over time you can use it to finance your family's future needs or apply it to the goals of your financial plan.

4. Pay the final one third of this money to buy 1-5 year Certificates of Deposit, but save up until you can buy CD's of $1000.00 every time you invest. Do this buying at one CD every three months to six months, but ensure you keep enough cash in your checking and passbook savings for any emergency.

The biggest barrier to financial success is large credit card debt and not paying it off as quickly as possible. By following these tips you will pay off your liabilities in an appropriate manner. By investing in 1-5 year CDs you're earning interest and compounding your money by purchasing more CDs at definite intervals. Compounding is very powerful.

It is also suggested when you've enough money saved up in your normal savings account, you begin to speed up your mortgage payments every month. Most mortgage lenders allow extra payments per month but check this out with your lender before you increase your payments. If they do, start paying extra every month and you will build equity in your home faster, save on interest charges and complete the mortgage much sooner.

This financial plan is only one of several, but these principles are basic and necessary to reduce your debt faster and build wealth for you and your family quickly. It will also help you acquire spending, saving and investing habits that are conducive to your personal wealth creation.

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How To Refinance Your Mortgage

People in debt try to break even by paying their monthly installments. However if they are not punctual or do not manage their finances well, the interests gradually eat into their income. These debts go on accumulating and certain solutions have to be thought of. One such solution could be a mortgage refinancing loan. However the situation should be cautiously analyzed and only after careful thought should the decision be taken.

In mortgage refinancing, you get rid of your existing debts by taking new loans. This money is used to pay off the previous loan. This policy is beneficial in a number of ways. Firstly, the rate of interest is considerable lower. Often the mortgage payments occupy a major chunk of a house owner's income and a lower rate of interest is a definite boon.

When taking these loans one generally has a choice between two different interest rates, either a constant one or a variable one. Mortgage refinancing enables you to toggle between these two rates. People opt for the variable rates when the rates are low. However in the case of higher rates, the smarter option is a constant rate. Also keep track of the interest trends. When you suspect the rates are on the verge of falling, it is advisable to switch from a constant to a variable rate.

Usually, people just beginning their careers or those moving into a bigger home due to the family expanding take home loans. These people then spend at least the next thirty years trying to get rid of the loan. Instead, mortgage refinancing will enable them to accomplish this in about half the time period.

This saves people from the ever increasing interest rates which eat into their hard earned money. Thus they can save a lot more. Also once the mortgage is paid off the money used to pay the installments each month can now be deposited into a bank and one can earn interest from the bank. Thus you can use your money to earn more money. This money could also be used to augment the amount paid as installments to the other loans, thus getting rid of them faster.

Another advantage is that the extra cash now obtained can be put to a variety of uses. It should however be employed smartly. It can be used to beautify the house, thereby increasing its value or for debt consolidation. All these factors help in increasing ones wealth.

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Love, Marriage And Wedding Planning - Reducing Credit Debt Before The Big Day

Reduce wedding day debt and avoid marriage credit debt problems with some helpful tips. Planning for a wedding- and a marriage- needs focus on more than just flowers. Wedding day debt can easily creep over budget without proper planning. Once married, many couples struggle with trying to merge different types of credit histories and outstanding debt. Avoid wedding day and marriage credit debt with some easy to follow tips.

Reduce Marriage Credit Debt Before It Becomes a Problem

Paying off or paying down credit debt before marriage is a smart idea. Relationship experts say that money and finances are the number one reason why couples fight. Why? Married couples often have different outlooks on credit debt that start to sneak into arguments over time. Eventually, some couples seem to do nothing but fight about finances. Work to reduce credit debt before the marriage and the union will be off to a great start.

Wedding Day Debt Can Be a Disaster

Wedding day debt starts to mount during the planning period. Unless a careful eye is kept on expenses, the celebration can easily get out of control. Couple can alleviate wedding day debt through careful planning. Creating a budget for the big day can keep expenses from spiraling out of control. In addition, wedding day insurance provides protection in case the wedding is called off due to severe weather, illness or a host of other reasons.

Wedding Credit Cards Help Ease Credit Debt on the Big Day

A wedding credit card [http://www.expertsoncredit.com/creditcard/american-express/the-nest-credit-card-from-american-express.html] can also help cut costs. Wedding rewards credit cards provide cash back or rewards when using the cards to pay for a wedding. The wedding day debt has to go somewhere, so it might as well come back to the happy couple through a wedding credit card.

Wedding Loans Can Help Pay for Wedding Expenses

Wedding loans are common, and can be a great way to help pay for wedding expenses. A low interest loan can help cover a lot of the unexpected costs related to the event. Couples often get wedding loans to pay for wedding expenses like the honeymoon.

After the Big Day: Marriage and Debt and What to Expect

Once the celebration is over and a couple settles into married life, it's time to assess the marital debt situation. Keeping conversations about money honest and aboveboard can help prevent misunderstandings. No one should find out after marriage that as a couple, they're knee-deep in debt. Keep marriage debt at a minimum by prioritizing bills and planning for the future together.

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Improving Your Credit Reports the Right Way

boost your score within a reasonable time. However, many of the errors that a person will encounter in their credit report will likely be typos or outdated information - such as the listing of a previous employer. To fix and improve your credit reports, all it simply takes is awareness, time, planning, some financial education, and careful scrutiny.

The earlier you review your credit reports, the better your chances at clearing up and improving both your credit reports prior to your next major purchase. Clearing up errors take time and persistence. Improving your credit score, on the other hand, takes time and strategic planning. The importance of understanding the various components that make up your credit report can not be understated. By reminding yourself to check your reports semi-annually, you will be more prepared and better position to obtain a loan at the most favorable rate.

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Making A Family Budget

With a new year, should come making a family budget. I cannot stress enough the importance of coming up with a budget for the household expenses. The budget planning should consist of both persons involved, primarily the husband and wife. You will both need to agree on the numbers, and may even need to compromise here and there. In the end, you will be amazed at what a budget can do for the family. Step one, is to decide what goals or items you need to pay for this year. A few examples would be new tires for the vehicle, maybe a new vehicle altogether, a family vacation, pay off a credit card, or just about any other item like these. Once these are decided, you can kind of work backwords to figure out the budget numbers.

Step two, is to figure out all of the income you have coming into the house. If both parents are working, it is the W-2 income. If you have a home business, then if you need this income to pay for items, figure out a conservative amount from the business, and use this number. Just take into account the current monies you are making. If you plan on getting a raise, or increasing the income from the business, adjust the budget for these later. But for now, play it conservative.

Step three is to then figure out all of the fixed expenses you will have each month no matter what. Examples are the car payments, insurance, rent or mortgage, electric bills, phone bills, cable, internet, you get the point. Do not figure in credit cards yet. Add all of these expenses up, and subtract them from the income. This is the amount you have left to put towards the credit cards, paying them off, vacations, etc.

For credit cards, it is best to take the lowest credit card amount and pay this one off first. For the others, just pay the minimums for right now. Reason for this is so you can actually make some progress and see it. You can normally pay off the lowest account pretty quick, and this will give you the sense of accomplishment. Once this account is paid off, you will them put this entire amount you were paying towards this card, and add it with the minimum you are paying to the next lowest card. You will do this until all credit cards are paid off. This will take some time, but just stick to it.

Once the credit cards are paid off, DO NOT close the accounts. Keep the accounts open, but do not charge on them. This will increase the amount of credit you have available, as compared to the amount of debt. In return, this will increase your FICA scores, or credit scores. This will play a large part in the future for house loans or any other loan you may need.

The last items to consider will the extras. Items such as going out to eat, birthday and Christmas presents, vacations, food, gas, etc. Although Christmas is 12 months away, you should start to budget now for this. It could be just $40 a month, and by the time Christmas rolls around, you will have almost $500 in the account for presents. Do this for all of the extra expenses.

The budget is not set in stone. After the first month, sit down and see how everything went. Did you over spend, or under spend in certain categories? Make the adjustments and then keep going forward. The budget will allow you to know exactly where you are in regard to your personal finances at all times. The more organized and informed you are, the more disciplined you become. And at the end of the year, you will see the progress you have made. Get to making a family budget!!

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Prepaid Visa and MasterCard Debit Cards

Nowadays there are many options to carrying cash, and the one choice that is gaining popularity is the Prepaid Debit Card, also known as the Prepaid Credit Card. Although these debit cards are being advertised on television, radio and the internet, their use and purpose is clouded in mystery. We will explain what they are and how to use the prepaid debit card.

Terms to Know

o Branding - Adding Visa or MasterCard logo to a debit card, thereby backing the debit card with the benefits and security of these credit card companies.

o Debit - Deducting from an existing balance.

o Load - Adding money to the balance of the card.

o Reload - Ability to add more money to the balance once the original 'loaded' balance has been depleted.

"Prepaid Credit Card" - Debunking the Myth

First, we will clear up the most common misconception with these cards. They are not credit cards in the traditional sense. A "traditional" credit card is a card that draws off a credit line balance with each use/purchase. A prepaid debit card is a card with either a Visa or MasterCard logo and can be used to pay for goods or services anywhere Visa or MasterCard is accepted, however all purchases are drawn from a prepaid balance that you have loaded onto the card. Once the balance has reached $0, you are no longer able to use the card for purchasing until the balance is reloaded.

Evolution of an Industry

In the beginning, in terms of banking, there was an Automated Teller Machine debit card. This type of card allowed the holder to access their bank account balance without having to physically go into the bank. The ATM card holder was able to go to a new type of cash access point (the Automated Teller Machine) usually located outside their bank and get cash out, debiting from the available cash balance of their bank account. As this new type of bank account debiting system evolved, merchants and banks teamed up to allow ATM card holders to access their bank accounts at various locations, such as a grocery store or other kiosk ATM machines located around town.

Through gradual progression of the financial industry, Visa and MasterCard got involved and joined the efforts of banks and merchants to brand the ATM card with either the Visa or MasterCard logo. These new Visa or MasterCard branded ATM debit cards now had the ability to be used to pay for goods and services anywhere a Visa or MasterCard credit card was accepted, while still drawing off the bank account balance the ATM card is associated with.

The next step for Visa and MasterCard was to create standalone "Gift Cards", which were originally loaded with a prepaid balance and could be used just as a Visa or MasterCard, but purchases were debited from the actual prepaid balance, and required no bank account. These Gift Cards could not have their balance reloaded.

This brings us current to today's financial landscape, where Visa and MasterCard have introduced prepaid debit cards, which operate like a hybrid ATM card (minus the bank account) and Gift Card (but the balance can be re-added to). The card holder can load money onto the debit card, can access the balance anywhere that Visa and MasterCard is accepted, and can reload money onto the card balance.

The Visa or MasterCard Prepaid Debit Card

Now that you have a good idea of what a prepaid debit card is (and what it isn't), it's time to find out what the benefits are of having this new type of debit card.

Features and Benefits

o No Credit Check - A credit check is required when you apply for credit, since you are going to be trusted to pay the debt back. Since you are adding cash onto the card, and since the balance cannot go into the negative, you are not going to be in a situation where you are required to pay anything back, or owe any money from exceeding the balance.

o Safety and Security - Carrying cash nowadays is a risky venture. If you lose cash, you are out that amount of money and cannot conceivably recover the amount. Since you can load or reload the balance of a prepaid card with cash (almost anywhere), and since the cash balance on the card is branded by either the Visa or MasterCard logo, the same security and fraud protection is extended to the prepaid balance. If the card is lost or stolen, the prepaid card holder is not held liable for any fraudulent transactions. Your money is safe and secure.

o Bank Account Features - Most prepaid debit cards have bank account features, such as check writing privileges (the amount of the check is deducted from the card balance). You can also have your employer (although employment is not required to apply for card) directly deposit your payroll check onto the card balance. Since these are very attractive incentives, most prepaid debit cards have these features.

o Reload the Balance Anywhere - Most prepaid debit cards allow you to reload the balance almost anywhere. You can load via PayPal, at most bank branches, any Western Union or MoneyGram location and even by cashiers check or money order.

o Shopping on the Internet - Nowadays, you can't be too safe when shopping online. Prepaid debit cards are a great choice in this situation because you can determine how much to load onto the card and since the balance cannot go into the negative, the chances of someone accessing your card information and running up a horrendous debt are non-existent.

o Other Benefits and Features - Since prepaid debit cards are branded with either the Visa or MasterCard logs, the prepaid cards have the same perks of regular credit cards. Some of these perks include roadside assistance, auto rental insurance, extensions on original manufacturer warranties, automatic bill pay and even merchandise rewards and cash rebates.

The Bottom Line

The best way to carry cash nowadays is a prepaid debit card. It's also a great way to give a gift or pay kids an allowance. As a gift, the prepaid card is an excellent choice because the prepaid card is accepted anywhere, and doesn't limit the recipient to one particular store or service. As a child's allowance tool its ideal, since the transactions on a prepaid debit card can be tracked and accounted for, down to the last penny. As an online shopping resource, it's handy because the card balance cannot be exploited. As a straight cash card, it can be used anywhere and just as safe as a credit card.

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News Creditcard and New Creditcard

Credit Scoring made simple

It's your right to know what credit scoring agencies are saying about you. Finding out this information doesn't cost a lot and takes only minutes to do - which may be time very well spent.

So what is credit scoring?

Simply put, credit scoring is a method of assessing the credit risk of a loan applicant. It uses mathematical models to evaluate a person's credit worthiness based on their credit history and current credit accounts. The system was first developed in the 1950s, but has come into widespread use in just the last couple of decades.

In the early '80s, the three major credit bureaus (Experian, Equifax and Trans Union) each developed scoring models that allowed them to offer a score based solely on the data of one individual. Creditors, especially those in the home mortgage industry, frequently use these scores when deciding who gets a loan and at what rate. However, it's worth remembering that creditors also consider other information, such as your salary or employment history, when making loan decisions.

What's in a score?

Credit scores are reported as a number, usually in the 300-900 range. The higher the number the better the score. Creditors see the number as an indicator that an individual will repay a loan. Typically, scores are determined by reviewing the following data:

· Your history of late payments
· Non payments
· Current level of debt
· Types of credit accounts
· Length of credit history
· Number of credit inquiries
· History of applying for credit
· Bad credit behavior, such as writing bad checks

Personal details such as race, gender and religion are definitely not considered when determining your score. It's also worth noting that each major credit bureau has its own method for calculating credit scores. However, the scoring models have been fairly well standardized so that a "600" score at one bureau is roughly the equivalent to the same score at another.

What's a good score?

Overall, a score of 650 or above is a sign of very good credit, and a very good credit score. People with scores of 650 or higher will, all things considered, have a good chance of obtaining quality loans at the best interest rates.

Scores of 620 to 650 indicate good credit, but also may point to potential trouble areas that creditors will want to look at and review. A lender may require additional documentation before a loan will be approved.

With scores of below 620, consumers may find that they can still obtain a loan. However, the process will be lengthier and more involved, as creditors consider scores below this threshold to be an indicator of greater credit risk.

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The World's Most Exclusive Credit Cards

It possible that you may have seen the articles in the news recently about a high-rolling businessman and his evening excursion in London with friends to an exclusive nightclub. In just a few hours, the businessman and his 15 friends (as well as some happy gatecrashers) guzzled their way through 102 bottles of champagne, 11 bottles of vodka and a Methuselah bottle of champagne (which contains the equivalent of 8 regular-size bottles). You'd probably have had to reach the age of Methuselah to pay the bill: an enourmous £105,805. But the Dubai-based businessman didn't have any troubles paying the bill; out came his American Express Centurion (also known as American Express Black) card, and the bill was paid.

American Express has taken the first and second slots in a ranking of credit card preferences among high-net worth (minimum $5 million) and high-income (at least $200,000 annually) consumers with its American Express Centurion (or Amex Black) and American Express Platinum. The American Express Black must also be one of the most exclusive cards on the block: membership is by invitation only and there's an annual fee of $2,500.

These two American Express credit cards are typical of the new credit cards for the elite - expensive card products that offer equally expensive perks, like access to private islands and private jets, to those willing to spend amounts ordinary mortals can only dream about. The American Express Black cardholder should spend a minimum of $250,000 annually to be a member. The American Express Platinum card may come at a lower fee than some other exclusive cards ($450 a year annual fee), but they will look after you with assurances such as their offer to evacuate injured American Express members and their families from wherever vacation location they are to where they can be given quality medical attention.

Credit cards for the ultra-rich are becoming very attractive options for credit card issuers. They may not make much from finance charges but 4% merchant servicing fees can mean quite a bundle, if the purchase volume is high enough. That businessman's transaction from his big night out could earn American Express a minimum of $4,000 in merchant processing fees.

Coutts World Mastercard Signia reportedly gives cardholders the opportunity to live like royalty, after all Queen Elizabeth II is a Coutts card holder. The annual fee is $700 but they will kindly waive this if you spend over $100,000 a year on your Coutts credit card. You cannot apply for the Coutts Purple; membership for this is also invitation only.

The market is rich, but the competition is also growing. Smith Barney has its Chairman's Card ($400 annual membership) also offers special perks, including a facility that will set up your quiet dinner meetings at New York's most exclusive restaurants (and in Los Angeles). Stratus Rewards Visa is a by-invitation only card that allows you to fly on private jets when you redeem rewards points.

Bank of America recently launched its Accolades card, which uses the American Express network and offers the common (for this elite class of cards) perks like premium tickets to concerts. The Accolades card has a match-your-donation offer (up to $2,500 a year) for its philanthropic cardholders who wish to make charitable contributions. Membership is for those who have $100,000 of assets in Bank of America's private banking division.

Why do ultra-rich customers bite? They get the status symbol, but they also get big benefits. They're in the stratosphere. But those at ground level also have similar opportunities to enjoy big perks for a little exclusivity in their cards. American Express Gold and special Diners Club credit cards also give you the chance to enjoy exclusive privileges when you want some.

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Choosemyrewards The New Chase Credit Card Rewards Management Tool

In previous articles, I have discussed travel, cashback, interest-savings, and merchandise rewards programs. These rewards specific cards are geared towards people who are grounded in which type of rewards they would like to earn.

For those who are indecisive or those having different rewards interests at different times of the year, should take an interest in the Chase choosemyrewards program. There are two different flagship cards involved in this program, the Chase Cash Plus Rewards Visa and the Chase Flexible Rewards Visa. Both cards offer 0% APR’s for 1 year, and low APR’s thereafter. Statistics show however, that the approval rate for the Chase Cash Plus Rewards Visa is higher.

Let’s take a minute to explain the choosemyrewards program. Like any other rewards program, there is a point system for both cards. You receive one point for every dollar spent on purchases with each card. When these points are accumulated, you then have the option of redeeming them for a variety of goods or cash. Here is what distinguishes these two cards from all other programs. At any time, you may login to the choosemyrewards page on the Chase server to elect which type of rewards you would like to receive. Choices include merchandise, restaurant gift certificates, retail gift certificates, travel rewards, and with the Chase Cash Plus Rewards Visa up to 5% cashback on purchases.

Many other rewards programs make it very difficult for the consumer to redeem rewards, let alone choose them. Typically, you would have to call up the company, wait on hold to get in touch with the proper customer service representitive, and then listen to them give you your list of options before ultimately processing your decision. With the choosemyrewards program this is not the case. In the mail with your new Chase card, you will receive a login pin number and the web address where you may access your rewards account. After entering your pin number, you may view your points accrued and a list of all rewards options. You may then scroll through the list of options and choose the rewards you would like to receive.

It only gets better. Let’s say you logout of your account after you choose your rewards and realize that maybe you didn’t really want that gift certificate to Home Depot that you signed up for. Instead you’d like a gift certificate to your favorite restaurant. All you have to do is simply log back in and switch your reward redemption. This is a very simple and painless process and gives you, the consumer much more control.

Many people save their points until the end of the year, because they never expire, and redeem their points to give gift certificates as holiday presents. Others take a trip to a warm place during the winter. Others just simply trump in on a cashback award in the form of a check. Whatever your interest are, or if they change, enrolling in the choosemyrewards program will make your rewards management more user-friendly and thus, much easier.

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Consumers Benefit From Shopping For Low APR Rates

Consumers find themselves faced with a plethora of choices when shopping for credit cards in today's market. You will find a variety of credit cards that have vastly different interest rates available. Perhaps the most important thing to consider when shopping for a new credit card product is a low APR or Annual Percentage Rate. Not only will a lower APR save you money on your credit card purchases, it will also help reduce your monthly payments, making it easier to pay the bills.

A credit card with the lowest APR available is always a good investment for most people. Higher APRs are not very attractive to anyone, and most consumers with a good credit rating should be able to qualify for a lower rate. The lower the APR usually means that you have better credit. The APR means the annual percentage rate. You won't be paying the total APR on your balance every month, though, as it's an annual rate. Also, the APR typically varies by transaction type, with cash advances typically being charged a higher rate than purchases. This rate is going to be different for everyone. One person's low APR credit card interest rate may be lower than someone else's. It will depend on their credit report and what their credit score is.

Any rate from 0% to 9% APR on a credit card is considered very low these days. These are great rates that you should quickly take advantage of. Any time you can get a credit card with these rates, you should take it, and you may even want to do a balance transfer from a card with a higher rate to this type of card. This will allow you to save money each month when and put the interest you save toward paying off your balance more quickly.

There are many people who will use their low APR credit card for the more expensive purchases or for everyday use. Because they may not have the cash to pay off the balance right away, they will pay off what they can each month and find that the balance is not getting higher because of the low annual percentage rate. This would be a wise financial decision to make.

Anyone can get a low APR creditcard as long as they are willing to make good, solid financial choices that they can feel confident about. When a person is able to keep up with their payments and keep their credit score up, they will eventually be qualified for this great rate.

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Is Credit Shield Useful

A few days ago, a customer came into my office and file a complain. Here is the story, Mr. Smith (name has been changed to protect the innocent) got his credit card a couple years ago. Three months after he received his credit card, he received a call from the credit card company offering to enroll in the company's credit shield program; basically, he was told that it is a life and disability insurance. He was told that in case of death, critical illness or disability, his credit card payments will be taken care of by an insurance company, relieving him and his family of an additional burden. All he needed to do was to pay an insurance fee which is a certain percentage of his monthly balance.

To cut it short he, decided to enroll because of the benefit the telemarketer told him. About six months ago, he had an accident; he was hospitalized for about 5 months. So he called the insurance company and filled out all the paper works. When he received his billing statement the next month, he was so surprised that the insurance company only pays the minimum payment of his balance. What happened to the rest of the balance? It was charged with interest, and will continue to do so until he pay the full amount.

Let's take a closer look. The insurance only cover your whole balance if you are dead, if you are still alive, they will pay only the minimum payment. Did the telemarketer tell you about this? Yes, they did, most of the telemarketer read from a script prepared by the company, this is to ensure that they inform all the necessary terms from the customer. The only thing is that the script have been prepared professionally inserting those terms in such a way that we do not pay attention and the telemarketer has been professionally train that they emphasize only the most lucrative offer.

So the next time the credit card company offers you additional life and disability insurance, make sure you ask them about the coverage policy for temporary disability and permanent disability. If they tell you that the marketer might not tell you the truth, ask them to send you the term and policy, say that you will discuss it with your lawyer before making a decision. This will help you unnecessary problem in the future.

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Credit Card Features Fully Explained

Credit Card Features

Most of us receive credit card offers in the mail with annoying frequency. When you open one up, there are all sorts of great offers in bold print, hoping to grab your attention and get you signing on the dotted line. The problem is, it all looks so good on paper, but the fine print is the part you really should be reading. That’s where the bits that will come back and bite you later on are hidden. You need to look at ALL the features, fees and charges involved, and then, based on your own usage, decide which card is most appropriate for you. Here are some of the things to consider.

Fees and Charges

The saying “there’s no such thing as a free lunch” is particularly true when it comes to credit cards. So work out exactly what fees you’re likely to be paying, and if it’s possible to avoid them. For example, you may avoid paying interest if you pay the balance off in full each month.

The Annual Fee

When the credit card companies realised that some people really could be disciplined and pay off their balance each month, they discovered they didn’t make any money. So in came the annual fee – basically to make sure you pay them something for the use of their card. The good news is that with the credit card market being so competitive, you can often negotiate to have this fee removed. It’s worth a try!

Cash Advance Fee

Nearly every credit card company will charge you a cash advance fee. Be warned – some of them charge some very hefty cash advance fees. So make sure you’re aware of what the charges are if you expect to use this facility more than once or twice. Quite often the interest rate is higher for cash advances, and sometimes your grace period is waived on cash advances, meaning you pay interest from day one.

If you’re taking up an offer to transfer the balance of an existing credit card to your new card, make sure you read the fine print. Some credit companies treat the transfer as a cash advance, and if they charge you a fee based on a percentage of the advance amount and you transfer a large balance – ouch! And again, check what interest rate they’ll charge you. Sometimes the fees and charges on a balance transfer can make it worse than leaving the balance on your existing card.

Other Fees

Credit companies are very good at coming up with fees for almost everything, so check the fine print and make sure you know what they are. Some things to look out for include over-the-limit fees, late-payment fees, return-item fees and set-up fees. Mostly these can be avoided by careful management, but it’s still handy to be prepared if you ever get charged one.

Rewards

A lot of card companies are now offering reward programs in the hope of keeping your business. Quite often you don’t have to do anything other than use the card whenever you purchase something – points are awarded based on the amount of money that gets charged to your card each month. It’s almost never a good idea to choose a card based on the rewards program. Most of the time you have to spend a very large amount on your card to get any really decent reward, and the last thing you need is to start paying huge interest bills as a consequence of the extra spending.

Incentives

Some credit companies have realised that reward programs are losing favor, and have started to offer other types of incentives. These can include rebates on purchases, extended warranties, or frequent flyer miles. Depending on your personal circumstances, some of these incentives can end up being quite valuable, so it’s worth checking out the details. But again, don’t overspend in the hope of getting a reward, because you almost never win in that scenario.

With any credit card, take the time to understand all the details of the card, not just one feature, and then think about whether the card really suits your own personal usage style. There’s no value to be gained in having features available that you’ll never use, or in choosing a card that costs you more because of the way you use it. Special offers are only special if they help you, not make your situation worse.

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5 Reasons Why Your Citibank Credit Card Application Was Denied

It can be a devastating day when you receive a denial letter in the mail when you were expecting a shiny new Citibank credit card. The first question you are likely to ask is, "Why was I denied?" There are several reasons why your Citibank credit card application would be denied including lack of income and already owning too many cards. The purpose of this article is to explain the five top reasons you may be denied for a Citibank credit card.

You're not old enough -

It may seem strange but every year Citibank receives applications from teenagers hoping to get a credit card. While this may seem like fraud, most of these kids aren't trying to be deceptive. They simply do not know that you have to be eighteen in order to qualify for a card. This has become more prevalent since teenagers have access to so many other things, such as email and cell phones, that once were reserved for adults.

You don't make enough money -

This is probably the second most common reason for your Citibank credit card application getting denied. A certain amount of steady income is required in order to qualify for a Citibank credit account.

You haven't been at your residence or your job long enough -

Citibank likes to see a person has stability. One of the ways it notes this is by the length of time at your current residence and occupation. If you've recently moved or switched jobs, your Citibank credit card application will be denied for this reason.

Your credit history is too short or too bad -

This is the main reason applications are denied. If your credit score is below a certain number (which varies from card to card) you will be considered too high of a risk to issue a card. If you have none or too little credit, card companies feel this is just almost as bad as poor credit since they have no basis for trusting you.

You already have too many cards -

Citibank, like any credit card company, doesn't like to see people opening too many accounts. It may indicate that you aren't good with your credit (if your cards are maxed out) or that you may end up in trouble later on (if you max out the cards and then can't pay for them), so most lenders will stop issuing you cards after a certain number.

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Five Debt Negotiation Facts.

These five debt negotiation facts along with a few debt reduction planning tools gives you the ability to control your own debt. For many people today credit card debt is a mounting problem and very few know how to successfully negotiate debt settlements.

If you want to learn how to successfully negotiate with your creditors, follow the five debt negotiation facts below which offers you some solutions to your debt problems. This not only gives you a way to gain control of your credit card debts but all of your finances.

Debt, in the form of credit cards or loans, mounts up daily with interest charges, additional finance fees, and service charges. Lumping these charges and fees on top of the previously borrowed amount can make the price tag on a loan or credit card multiply a lot higher than a person originally figured on. This is what makes debt become too high to properly manage.

When the price of debt becomes too high to realistically pay each month, debt negotiation offers an opportunity to put a time out on the debt process. That allows you to reassess and renegotiate the terms with a creditor that are not currently feasible to comply with.

Knowing how to negotiate debt settlements can be a tricky process and can take a lot of time and effort to successfully complete. But a few simple facts can make the process much less stressful and can produce better odds of success than going into the negotiations blind.

The first debt negotiation fact to keep in mind is that you are the keeper of all of your own information. You must be responsible for accurately knowing the amount of debt you owe, to whom,at what rates and with what fees.

Second, keep accurate records, from this moment, of what you pay and what you borrow. This will enable you to see your own spending and paying habits are to help you discuss them with the people you are in debt to.

Third, be aware that the companies you are in debt to want your money, but they may or may not work with you. Your debt makes them more money in fees, but there will come a point when they are ready to end the arrangement as well.

Fourth, if you really want to learn how to negotiate debt settlements, you have to be prepared to ask for exactly what you want. Keep asking and keep looking for a solution that will benefit both you and your creditors.

Fifth, be willing to follow through with the debt reduction planning tools you and your creditors have negotiated. Put yourself on the line by asking questions, then represent yourself with integrity by following through on the terms of your negotiations.

Debt negotiation works, and offers solutions to achieve financial freedom without bankruptcy and the fact that you were able to handle your own debt. Battling debt can be a scary time in anyone's life, but knowing these debt negotiation facts offers you a light at the end of the tunnel.

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Shocking Facts - What Debt Settlement Companies Don't Tell You

If you're thinking about using a debt consolidation or debt settlement service to help you get out of debt faster and save money on your monthly payments, make sure you do your homework before choosing a company. There are definitely shams and scams out there.

First let me say that debt consolidation is *not* the same as debt settlement/negotiation, which most people don't realize.

Debt settlement companies charge hundreds of dollars as an initial "admin fee" to set up your account, plus a monthly service fee. The fees vary depending on the company and the amount of your debts.

Such companies take your money every month, but don't make monthly payments to your creditors! Instead, they put it in a trust account, negotiate your debts with your creditors, then make a lump-sum payment when there's enough in your account to pay a creditor in full.

That can take *years* depending on the amount of debt you have with each creditor. Meanwhile, you can be sued by your creditors and your wages can be garnished! (Or just don't make payments to your creditors. You'll end up in the same spot without paying someone to help you get there!)

Settlement companies don't ask your creditors to stop all interest, late fees and overlimit fees from accruing. That means while the negotiations are ongoing, your bills will continue to grow! So if you're sued and a judgement is brought against you, you'll owe more money than before!

And shoddy companies, which there are alot of, don't tell you *any* of this up front. I call it "getting permission by omission" because they simply don't tell you how their program works *before* you sign an agreement with them. Or after, for that matter. But if you ask the right questions, eventually you'll figure it out. (Or when the crap hits the fan. Whichever comes first.)

Let me give you an example of how debt settlement works.

Let's say you have $20,000 in unsecured credit card debt. You owe $10,000 to one credit card company, $6,000 to another and $4,000 to a third. You agree to a 5 year plan where you pay $250 a month to the settlement company. (After all, $250 a month for 60 months is only $15,000, so you're saving $5,000 and you'll be debt-free in 5 years, right?)

The admin fee will cost you $750. Your first 3 monthly payments go towards that and nothing gets put into your trust account until your 4th month.

The settlement company keeps $50 of your $250 payment each month for the service fee. That means $200 a month is being added to your trust account.

Most debt settlement companies claim to be able to negotiate your debt for about 50% of what you owe. So let's use the lowest credit card debt as an example.

If you owe $4,000 and your creditor agrees to accept $2,000 as payment in full, it will take 10 months at $200 per month to have enough in your trust account to pay off just that one credit card.

But remember, your first 3 payments to the settlement company only paid the admin fee. That means your first credit card settlement is 14 months *after* you started sending them money.

So what's the problem? It's simple. Your creditor won't agree to accept half of your actual debt unless, or until, it can be paid in full. Otherwise, you're expected to make your normal monthly payments.

Since you don't have $2,000 in your trust account, and you won't have it until more than a year after you stopped paying your creditor directly, they'll probably take you to court and request that your wages be garnished long before you have that $2,000 built up.

And what about your other creditors? Well, they'll be waiting even longer to get their money from the settlement company. The $6,000 debt will take 15 *more* months to pay off, assuming your creditor waits that long and agrees to 50%. And that $10,000 bill? You do the math.

On the other hand, if you signed up for a 3 year plan with the settlement company, your debts would be paid off sooner. But, the question is, will your creditors wait that long? Probably not.

The facts are, you can negotiate with your creditors yourself. Most will agree to take a smaller monthly payment from you and stop all interest and fees from accruing. And, of course, you'll save thousands of dollars in fees to a settlement company.

Before signing up for any service, please be sure you check out the company thoroughly. And don't let the words "non-profit" fool you either. Alot of debt settlement companies claim to be non-profit.

Going back to the example above, if you pay them $15,000 over a 5 year time frame and they settle your debts at half of what you owed, they'll make $5,000 from you. I'd call that a profit, especially since they might not have actually helped you in any way.

Most companies will allow you to cancel your account and get a refund of what you've paid, less the non-refundable admin fee and the monthly service fees. If you feel you've been mislead about their program, don't hesitate to argue til the cows come home. File a complaint with the Better Business Bureau or hire an attorney if you feel you're getting nowhere.

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Credit Card Debt Statute Of Limitation - What You Should Know

Each state has a statute of limitations on old credit card debts. The statute of limitations refers to the period after which, creditors cannot sue you to collect the debt. The length of time is calculated from your last payment date or last activity date (this is when you last used the card).

Refer to the old debts statute of limitations chart, which details the statute of limitations by Oral Contracts, Promissory Notes, Written Contracts and Open-Ended Accounts. Note that the transient nature of state legislature requires you to verify the statute of limitations period with your State Attorney’s office.

In the past 10 years, a growing trend has ensued, where aggressive debt collectors buy old debt accounts and actively pursue consumers to collect the debt, even though the statute of limitations has past. They purchase these accounts for pennies and hope that you will pay up. Even if, you pay $1 on the account - they make a good profit.

This is a violation of the Fair Debt Collections Practices Act. Some creditors even lie and say that the statute of limitations starts from the day that they purchased the debt account. These companies are so bold that some of them will threaten to sue you and in fact proceed with the court case – don’t give in. Others will harass you day and night, use profanity or promise to erase negative marks off your credit repot, if you send in a minimal payment.

If you find yourself in this situation here are a few tips on what to do:
Do not send in a payment - if the statute of limitations is past in your state. Doing so, will make your delinquency look recent. It will also give the debt collectors the idea that you are an easy target and they may attack you on other fronts.

Keep an eye on your credit report to make sure that they are not reporting negative information about you. Your old debt account should not be reflected on your credit report since the statute of limitations is past. If you find that they are reporting the information, take corrective action immediately and fix any errors.

If possible, ignore all contact with the debt collection agency. Do not accept their phone calls. If they send you notices in the mail, you will want to keep these as proof of their harassment.

The Fair Debt Collection Practices Act indicates that there are certain things that creditors cannot do in their attempt to collect debt.

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Credit Cards with Airline Miles - Facts You Should Know!

Credit Cards with Airline Miles can be utilized to gain free flight points, stay at hotels, rent for cars, and some other advantages. Three categories in it are:-

Cards not restricted to a single airline and free tickets on over 250 airlines can be obtained
Cards giving you free miles on your preferred airline company
Cards which can be used to get accommodation at hotels, etc.


Airline sponsored credit cards permit you to target one airline. If the chosen airline has a center in the city of yours or in some nearby place as it can cover for more than locality then this can make it efficient, convenient and even economical for you in most of the cases.

These air miles and credit cards used for the frequent flyer program type of travel can be used for the three given purposes. Apart from that, a few air mile cards also require as little as twenty four thousand points to get a free ticket, and also permit you to gain some advantage over daily purchases. These credit cards of airlines are available in 2 special categories. First, the card which gets sponsorship from the bank, which gives the users free air miles on usage; mostly, the user gets one air mile for one dollar that he spends. These are very popular as they can be made use of on any preferred airline of the consumer.

The second type of card available to the consumer are the ones which can be used only for a given airline. Examples of such are Citibank, Master Card and the American Airlines, among others. This basically is a partnership formed between American Airlines and Citibank for example, and here, the bonus miles that a user earns can be used only for American Airlines, and no other airline.

Given below are some points that you must consider:

Which is your most preferred airline where you can fly many times?
What terms embrace the rewards given?
Are there any dates for blackout?
Is there a fee that is charged?
What is the rate of interest for the balance that is being carried?
What is the implication of other restrictions (if any) that are applicable?

While you make a comparison between offers of companies giving free air miles, keeping in mind the points mentioned above will help you settle for a deal that best suits you, and your needs. You can instantly decide which points in the terms will benefit you, and which points won't. So if you make a comparison between the policies and terms of various companies giving away free air miles, you will be able to make an intelligent and hopefully a good decision.

If you want to make a good decision about the offer of the credit card of which airline will benefit you the most, you must first take into consideration how much you travel and by what way. For this, you may seek help from the airline center located in your city. Credit cards with airline miles can be good value but even though You may come across some very tempting deals however if the airport from which the given airline operates is located very far away from the place where you reside, the deal may not be so attractive!

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Do Gas Credit Cards Reward You At The Pump

There are so many devices and programs that are out there that guarantee to you to save on gas but let's be real here, do they really work? Studies have shown that ninety nine percent of these really don't work. One of the things that do work though are a gas credit card.

A gas credit card is a for sure way to save on gas every time you fill up. It works just like a credit card but offers rebates at the pump. Every time you fill up, you'll save a certain percentage. Depending on the credit card, this will vary. So, the question is, "Who offers the best gas credit card?"

Every major credit card company out there does offer a gas rebate credit card. Each and every credit card is different ranging from it's APR to the rebates you'll get on your fill-up. One thing you'll also have to look out for is if it can only be used at one gas station. You'll usually be able to tell when a gas card can only be used at a particular gas station if the gas station name is in the credit card title.

From my research, I've realized that each and every credit card is very similar. Some credit cards will offer more than just a gas rebate, they may also offer rebates on auto maintenance and other things that are automotive related. These types of cards are great if you tend to get oil changes at particular places because you can save there as well.

When it comes down to rebates, the rebates usually are the same. They will generally range anywhere from three to five percent. What you'll need to look at for is how you'll be redeemed with those rebates. Some credit card companies will reimburse you in the form of points. If you're a fan of getting your cash back, then you'll want to avoid these type of point schemes. You'll want a card that gives you the cash back on your statement. Another thing you'll want to look out for is when the credit card will actually reimburse you. Some cards will only reimburse you every couple months or every month. All of these things will be listed on the application page. It will be your job to keep your eyes peeled.

A gas credit card is a great way to save on money and most cards are very similar in a way. Like I mentioned above, the only differences you'll mainly see are the rates, how you'll get your gas rebates back and when, and other things such as customer service, etc. Also remember that It's important to pay your bills off in full each month to take full advantage of the rewards. If you fail to do this, it won't even be worth applying. Be responsible and do your research. If you can follow these golden rules, you can be saving in no time.

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Top Tips For Increasing Your Credit Card Limit

Having a credit card gives you flexibility and purchasing power that you have grown used to. But what about when it comes to making those big purchases, or consolidating your debts? There are times when everyone wants to charge more on their card, but banks are not always quick to offer a credit card limit increase. What can you do to sway the banks decision in your favor and take that dream holiday in the sun a bit quicker? Here are some tips that should make you a shoo-in.

The banks want to know that you are a good risk; you have to prove to them you deserve it. The easiest and most obvious first step is to abide by terms and conditions set by your bank.

A less obvious, but equally important strategy, is to prove your overall credit rating. Banks immediately look to your credit score to determine whether you might be a bad credit risk. Keep up on your loan (mortgage, student, car) repayments to avoid damaging your credit rating.

Maxing out the card to the limit is bad news, so use your card sparingly. Keep your outstanding balance to less than thirty percent of the limit, even if you pay off the outstanding amount in full every month. When your credit score is calculated, it will also help to have a low balance on your card relative to your available credit. Remember the thirty percent limit.

The older your active credit history is, the better, in the eyes of the bank. Got any old cards lying around that you haven't used for a while? Pull them out and put them to work. If you use your old card once in a while for a small purchase and pay off the full amount before the due date, the information will be updated at the credit bureau and your rating will be positively affected. Don't use your credit card for emergency purposes only. Use it every chance you get. This is another way to increase your credit limit.

Of course you should always make payments on time - nothing damages your credit rating the way consistently overdue payments can. But if you've been a good customer and can't avoid one late payment - you can request a 'goodwill adjustment' to prevent the incident from damaging your record. And it's never too late to start paying on time - if you make 12 consecutive prompt payments, your lender may re-adjust your account to erase a poor track record.

When you do make your payments, try making more than the minimum. The whole lot if possible. The bank will see that you are comfortable making repayments above your current minimum, proving you will be able to cope with the increased minimums that come with a higher limit.

Ironically, having a higher limit can itself improve your credit rating, which makes it something worth striving for. Once you get your increase - spend wisely and protect it by budgeting carefully. Soon enough, you'll have the credit you need - and more - for a comfortable, stress free lifestyle.

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Silver, Gold and Platinum Credit Cards

Aside from all being precious metals; silver, gold and platinum also signify the difference between the various strata of credit cards available to cardholders. So, what's the difference between you having silver, gold and platinum credit cards?

Besides the kudos of having a metallic covered card in a stratum higher than the one below it, with silver being considered the lowest, gold next and platinum at the peak, these days there really is little difference between each of these cards. Two noticeable exceptions are:

Spending Limit

Although the cards are supposed to signify a higher credit limit and spending power, in fact what they do is act as a signal as to you supposed income. This is because as you go up in the line of colors, so (supposedly) should your income - and thus your spending limit. The only problem with this is that while the platinum card used to be an 'invite' only card, these days the qualifying salaries for each of these cards are set so close together that you do not really need to earning that much in order to qualify for a platinum card!

Membership Fees

These days the amount you need to pay in annual membership fees to card providers is the biggest difference between these types of credit cards. In part due to kudos element, card issuer feel at liberty to charge cardholders of platinum cards far more than they do to those who hold silver cards, which may, indeed, even be free of a membership fee!

So, while your spending limit may not be that significantly higher having a platinum card rather than a silver card, your membership fee almost certain will. The decision that you have to make, assuming you qualify, is whether you are willing to pay that extra amount in membership fees to have a higher ranking card. And by adopting a policy of silver, gold and platinum credit cards, the issuers are banking on you doing wanting just that!

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The Benefits of Credit Cards

Credit cards can be one of the most useful tools in tracking your expenses. It is great how they work. You make a purchase on your credit card, the charge is sent to the bank, the bank approves the transaction, and the bank posts it on a website or makes it available for you to download into your personal financial software.

You can't beat the ease of use. If you pay the balance at the end of each month there is no expense for this service. In fact with many of the reward programs available many banks will basically pay you to use their credit card.

This only works of course because many people do not pay their balance at the end of the month. If everyone did, the banks would start losing money and they definitely wouldn't have any of those programs that give you free flights or points toward buying merchandise.

The average amount owed by an American with credit cards is over $8,000. Only 1 in 20 Americans have over $8,000 in credit card debt, but many of these have so much more credit card debt, that it swings the average up to $8,000. For the banks this is a windfall. The interest rate on credit cards is very high, so they make a tremendous amount of money of people carrying balances.

If you have the discipline to pay of your balance at the end of each month and not spend more than you have (just like a checking account). You'll basically get the credit card service for free--paid for by people who don't have enough discipline to pay off their balance each month.

You get free record keeping, free reward points, and many other features. Many credit cards offer some type of insurance if your purchase is stolen. Others offer extra life insurance policies for air travel booked on their cards. Some credit card companies offer extended warrantees on anything you purchased with their card.

One of the most important benefits of a credit card company is the fact that they will usually stand up for a good customer that is being charged in correctly. For example, lets say you cancel an order with a merchant and they ship you the goods anyway. When you try to return the items, the merchant says that you can't. A quick call to your credit card company will probably be all that is necessary to resolve the situation. Credit card companies can revoke money from merchants and this is exactly what they will do if you complain that you were shipped an item that was canceled.

All in all there are many benefits you can obtain by using a credit card--all for free as long as you pay off your balance at the end of each month. Other people aren't going to pay off the balance and they are paying for you to get free service.

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Dumping Credit Cards and Other Debts

At the time of this writing, the average American has at least two credit cards, and the average American family carries at least $5,000 in credit card debt. To many of us, this has just been accepted as, "A way of life," or, "just the way it has to be." Some of us, though, go against what is "normal." Some of us are ready to say, "Enough is enough."

You single greatest wealth-building tool is your income. You are more likely to build substantial wealth by saving and investing your income than you ever will by playing the lottery, saving up rewards points, or playing single stocks. How then, would you utilize your income to build wealth if nearly all of it is owed to someone else each month? Unfortunately, that is how many Americans live. Each month, their entire paycheck comes in, and immediately goes back out to debts.

If you want to utilize your income to its greatest potential, you will have to keep some of it around, and that means dumping debt. A good place to start for most people is usually credit card debts. Credit cards typically carry higher interests rates than, say, student loans or home mortgages, and they are also typically smaller in size than other debts.

To clean up your debts, I support using what is known as the "Debt Snowball" system. The debt snowball is a system for getting out of debt that was developed by financial advisor Dave Ramsey. It has helped thousands (if not millions) of Americans get out of debt and build wealth.

The way the debt snowball works is backwards in the minds of many financial advisors. That is, rather than taking a mathematical approach to dumping your debt, you take a behavioral approach. The theory behind this is that money management is 20% math and 80% behavior.

Do build your debt snowball, you write down all of your debts in order from smallest to largest, paying no attention to the interest rates. This is the order you will pay off your debts. Now you write down your minimum payment on all of your debts.

The first item in your list (the smallest debt) will be your first focus. All of your other debts will only receive the minimum payment, and any extra money you have will go to the first debt until it is paid off. Once the first debt is paid, you add the entire amount you were paying on that debt to the next debt in line. You will pay off your second debt faster, because you are paying the minimum payment, plus the total payment you were sending in for the first debt. Continue down the list this way until all debts are paid.

Let's say your debt snowball looks like this:

1. CreditCard A - - - - Amount $2,400 - - - - Minimum due $25 - - - - Payment $200

2. Credit Card B - - - - Amount $5,200 - - - - Minimum due $80 - - - - Payment $80

3. Car Loan - - - - Amount $12,900 - - - - Minimum due $300 - - - - Payment $300

What we have is three debts, paying $175 extra on the first each month until it is paid off. It will take between 13 and 15 months to pay this debt off, depending on the interest rate, and assuming no extra money is sent. Once debt number one is paid in full, we add the $200 payment we were sending to pay it off on to debt number two. To total monthly payment for debt number two will now be $280.

Hopefully now you can see how using this method, you will be able to work through your debts systematically with a proven strategy.

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How to Find Low Interest Credit Cards and What it Takes to Qualify

Finding credit cards with low interest rates is an effective, and a surprisingly overlooked, way for consumers to reduce their debt and save money. The good news is that this does not have to be an arduous or time consuming process. With a small amount of preparation, a few key pieces of information, and a little persistence, anyone can learn how to be a confident and effective shopper for low interest cards.

Approximately 55% of all credit cardholders carry a balance on their cards, and for these individuals in particular it's important to not only know how to find low interest cards, but to understand the general credit approval criteria used by card companies.

Often, the difference between a low interest credit card and higher interest rate cards can be 10% or more. A card with a balance of $5000 and an interest rate of 10%, for example, would have a minimum monthly payment of $92 (keeping in mind that minimum payment calculations can vary among companies). However, if this same card had a rate of 20%, the minimum payment shoots up to $129. Even worse, the time frame to pay off the higher interest card (paying the minimum payment) increases by nearly two years, and the total interest costs over the life of the card is roughly $4000 greater. Ensuring you are not overpaying on your credit card interest simply makes good financial sense that can directly impact your bottom line.

Preparing For the Search
Before setting out on your credit card hunt, it makes sense to first do a little prep work to aide in your research. Two points are essential. Firstly - be clear on how good (or bad) your credit is. Secondly - you need to understand the various types of fees and penalties associated with credit cards so that you can accurately compare total costs and features between different card offers.

Know what is on your credit report. With today's laws that govern consumer's availability to their personal credit reports, there is no excuse for not obtaining and reviewing reports periodically. Learn the process to request your credit report.Your credit rating determines if, and how much, leverage you have over the credit card companies. Do you have an excellent credit profile that card companies drool over? Or, conversely, do you have poor credit - and find it difficult to get approved for most types of credit? When we talk about one's credit rating we refer not only to the all important credit score, but also the detailed payment history information contained in your personal credit report. Like any loan product, getting the best rates on credit cards will require an excellent credit history and payment record. The better the card interest rate - the more stringent will be the credit requirements. Being clear on your credit rating let's you know if you should concentrate your search efforts on the very best rates, or perhaps focus on a card offer that is a tier or two down from the lowest rates.

It's important to know and thoroughly understand the cost and fees associated with a typical credit card. Regulation Z of the Truth in Lending Act requires lenders to disclose fees and rates in a uniform manner. Credit card interest cost is expressed in the annual percentage rate (APR). Reg Z is extremely helpful in that it ensures that card companies publish the APR in big, easily recognizable lettering. However, beware that other penalties, fees, or rules may be found only in the fine print. For that reason - make sure to always read and understand the terms of any offer before submitting an application. Other fees to consider are; annual fee, late payment charges, grace period before late payment is charged, over-the-limit fees, credit limit increase fee, cash advance fee, interest rate on cash advances, and any other penalties. Hone in on the fees or penalties that are especially important to you. Do you sometimes need a few extra days to make a payment? If so - the grace period and late charge fees should carry extra weight in your card search criteria.

Also critical is to know when and under what circumstances a company can increase the rate. Credit cards come with either a fixed or variable interest rate. Though cards with fixed rates can go up, companies must provide at least a 15 day notice. Variable-rate cards, on the other hand, change automatically and without notice to the cardholder. Most financial experts recommend choosing a fixed-rate card over the variable rate.

Thankfully, we live in an age where the most efficient and speedy method to find, compare and research credit cards is right at our fingertips- the internet. A good first step is to get an idea of the average card rates in the country, which provides you with a reference point to gauge what rates are below average, above average, or somewhere in the middle. Good credit card rate charts can be found at bankrate.com and indexcreditcards.com. It's not uncommon for rate charts from different sites to show a slight variance in rates. Tabulating the average rates among credit cards from across the entire country is a complex process, with a fair degree of differences arising from data interpretation or timing processes. Use the charts as a guide - and try to utilize more than one.

To shop for, and research, a variety of credit card offers, the recognized leader is bankrate.com. There, you'll find an abundance of information to help you find and evaluate rates and other features. You have the ability to search by card type (such as low Interest cards or rewards cards) or credit type (e.g., excellent, good, average, or bad). Additional quality sites include creditcardguide.com, creditcards.com, cardratings.com, and cardtrak.com. MSN.com (moneycentral.msn.com/banking/services/creditcard.asp) has an excellent credit card analyzer tool where you can easily scan information on many cards, while Interest.com ( credit-cards.interest.com/content/compare/) employs a handy comparison tool that enables you to search by state.

As mentioned before, read the details and fine print of each offer that falls into your desired rate target range. Make sure the published APR is just an introductory offer. You may see a "V" next to the APR - this signifies the rate is variable. Use several sights to compare a wide selection of card products and offers.

What you need to qualify
Credit card lenders each have their own separate set of approval guidelines, which is dependent on their risk appetite and other economic and business factors. Generally speaking, to get the cards with the lowest rates, a credit score of 720 to 750, or even higher for some offers, will be required. Lenders will want to see a clean credit payment history, a higher than average income, and a low debt utilization ratio. Debt utilization, or sometimes called credit utilization, is a financial ratio that measure a person's total credit balances vs. their total credit limits - and is a figure lenders watch closely when extending credit. To visualize how to calculate a debt utilization ratio - let's look at an example of a person whose only debt is 2 credit cards, each with a $5,000 balance. If this person has maxed out both credit cards (i.e., their amount owed equals the credit limit), his or her debt utilization will be 100%. Lenders would frown heavily on this scenario as it may appear that a person may be overextending or mismanaging their debt. A figure of 20% should be the target for any individual looking to obtain a card with a low rate.

Final Thoughts
Not all consumers, of course, have the necessary qualifications to get the absolute cheapest cards - yet this need not be the end goal for everyone. For some individuals, simply improving on the rate you currently have could be a sensible goal. Evaluate your own credit worthiness - and then set realistic goals as to what credit card product you will target. An important point to remember is that you don't want to apply to too many offers at one time. Doing so raises a red flag to lenders that you may be trying to get too much credit in a short period of time - and can temporarily reduce your credit score. The best method is to submit one card application, and wait for a credit decision before applying for another offer if necessary.

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Start an Ebay Buyer Account Without a Credit Card

Ebay just wants to verify you are who, you say you are. I have even seen ebay lock up someones account, until they show ebay proof of who you are. Fraudulent accounts are everywhere on ebay, so they have to take measures to assure nobody gets ripped off.

If you are in the USA, you need to start an account with an email address you pay for. Your ISP email address should be used when you sign up for an ebay buyer account. Don't use free email addresses such as yahoo, msn, hotmail, google etc. If you open a buyer account with a free email address, ebay will make you enter a credit card for verification purposes. So, don't use a free email address when you sign up for a buyer account and ebay will never ask for a credit card number. Use your ISP email address when you sign up.

If you are outside the USA, give your correct phone number and ebay will call you with a pin number to verify you are who you say you are. Enter the pin number into your ebay account and you will be automatically verified for a buyer account. You won't have to enter a credit card number if you give your correct phone number for verification purposes.

It's as easy as that. Both of these methods work for everyone around the world. Now you know how to make a buyer account without using a credit card. Ebay has to ask for some kind of identity verification. Thousands of people sign up for ebay everyday just to rip people off. One fraudulent ebay account is opened every minute on average. So don't blame ebay for taking these measured steps. They are only trying to protect your identity. In today's age of identity theft, be thankful that someone is trying to help you.

Remember to be careful. Ebay will never ask for your personal information through an email. They will never ask you to sign in to your account directly from an email. Don't be fooled by the fake ebay scam and phishing emails. Protect your identity at all costs.

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With Non Payment of Credit Cards, What is Likely to Happen to Me

Non payment of credit cards has unfortunately become more and more commonplace in our society. As the credit card companies have been charging ever higher fees, and the minimum payments have risen from a typical 2% to now 3%. While this doesn't seem like a huge jump, those with high balances on their cards felt it.

Credit card companies are starting to routinely send out settlement offers once an account is seriously delinquent. Some of these offers are as low as 20% of the total balance. Of course, these settlement offers must be paid in one lump sum, something not everyone can afford. However, this is starting to change and companies are becoming willing to work with their customers in regards to payment plans and other options.

The non payment of credit cards does set a fairly typical chain of events into motion for the customer. They can expect to receive a stream of phone calls and letters, polite at first then increasingly unfriendly. These calls will get even worse if the balance charges off and is picked up by a debt collector. A debt collector will think nothing of calling family and neighbors, ostensibly to try to reach the customer, but really just to increase the harassment.

Finally, worse case scenario, the debtor can be taken to court and possibly have their wages garnished and or a lien placed on their property.

Of course the way to avoid a non payment of credit cards pitfall is to pay off the credit cards and live debt free. Other options are to settle with the credit card companies, credit counseling, or bankruptcy.
Are you having trouble paying even the minimum monthly payment on your credit cards? You are not alone. Visit: Credit Card Debt Info today to explore your options.

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Credit Card Charge-Off - What Does It Mean and What Should You Do About It

Have you been told by a creditor that your debt is about to "charge-off"? Did the bill collector make it sound like you will be ruined financially if you allow this catastrophe to happen? If you're behind on your bills, unable to keep up with payments on your credit cards and other debts, sooner or later you will hear a creditor representative threaten you with the dreaded "charge-off." So what is a charge-off anyway? Should you be worried? What are the consequences of this mysterious event?

I'll start by explaining what a charge-off is NOT. Because the term includes the word "charge," many people mistakenly think it has to do with cancellation of the account by the creditor. In other words, you can't "charge" anything on your credit card anymore. But it's not the same thing at all, and most banks will revoke charging privileges around 2-3 months before the deadline we're talking about here.

What banks and bill collectors call a "charge-off" is the point at which the creditor writes off the account balance as a "bad debt." It usually happens after six months of non-payment. After that, they no longer count it on their books as an asset. You still owe the money, of course. And they will certainly make continued attempts to collect it from you. But the creditor has been forced by the rules of accounting to zero out the debt on their financial ledgers. For causing this loss, they will punish you by placing a derogatory mark on your credit report. A "charge-off" is a serious negative mark, to be sure, but it is not the financial ruination that debt collectors would like to have you believe it is.

Should charge-offs be avoided if possible? Certainly. Does the prospect of a charge-off mean you should panic if you have no way to pay the bill? No! Is it the end of the world if the account has already charged off? No! Too often, bill collectors make a charge-off sound so bad, and they apply so much pressure, that people cave in and make payment commitments they cannot keep. Collectors usually demand payment via post-dated checks, and this frequently leads to bounced checks and even worse financial problems. Most of us are brainwashed by the banks and media on the subject of credit. Sure, good credit is important. But committing to payments you really can't afford just to preserve your credit is like watering the lawn while your house is burning down.

Here are a few simple rules to follow when trying to avoid a charge-off that hasn't happened yet:

* Don?t be intimidated or threatened by pre-charge-off collection tactics. Keep a cool head and don't take it personally when collectors try to get under your skin.

* Call your creditor to find out the minimum payment necessary to avoid the charge-off, and subsequent payments to keep the account current going forward. Don't commit to this payment (or series of payments) unless you're sure you can follow through.

* Negotiate a lump-sum settlement at 50% or less if you have the resources, or a workout plan for monthly payments that you can live with.

* Do not allow bill collectors to talk you into using post-dated checks, or providing your checking account details over the telephone. Instead, make payments via cashier's check or money order.

* Do not make payments based on a verbal arrangement. Get the deal in writing and signed by a creditor representative who has authority to approve the workout plan.

What should you do if you simply don't have the money to rescue the account from charge-off, or if the account has already been charged off by the creditor?

* Take a deep breath and relax; the sky won't fall on your head just because you had a charge-off.

* Realize that you still have an opportunity to resolve the matter by dealing with the original creditor or the collection agency assigned to the account.

* Negotiate a lump-sum settlement with the creditor or collection agency. Again, aim for 50% or less, and ask for the charge-off to be deleted from your credit report as a condition of the settlement. (Most creditors will not agree to this, but it's worth asking anyway. Do be sure that they will update your credit report to show that the matter has been resolved and the account has been satisfied.)

* If you can't work out a deal with the collection agency assigned to your account, then wait until it goes to another agency! Eventually, it will either be assigned or sold to an outfit that you can deal with to get the matter cleared up.

To sum up, a charge-off is not the end of the world. It should certainly be avoided if possible, but not at the risk of making things worse by committing to payments you're not sure you can keep up with. Just remember that the creditor doesn't want to see a charge-off any more than you do, so use that knowledge to your advantage in working out a mutually acceptable arrangement. Get everything in writing, don't disclose your checking account details, and follow up to make sure the creditor reports the matter correctly on your credit report. You'll find that it's easier than you think to resolve a charge-off situation before it happens, or clean it up if it's already taken place.

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Accepting Credit Cards A Need of Every Business

Credit cards are fast replacing the cash payment mechanisms. With online shopping a way of life now, it is imperative that businesses are able to accept credit cards. Today, an average citizen has at least four credit cards, and they are ready to shop using cards for anything, be it online or in shops.

With such good penetration of credit cards, any business owner, even if the scale of business is not too big, should not miss out on implementing credit card payment gateways at their business establishments or websites.

Implementing the Credit Card Payment System:

There are three important parts of a credit card processing system. The first part is a secure form; one that is S.S.L. enabled and will be used to take the credit card details of the customers. This form will capture the details of the customer's credit card and the total payment will be made.

S.S.L. is short for Secure Socket Layer, a way to encrypt the sensitive credit card information, and is supported by all major browsers and ISPs.

The second thing is getting a merchant account with the bank where all the money will be deposited. For that, you will have to get in touch with a bank that will set up the account etc.

Thirdly, you need payment-processing software, which will connect you with the bank and help you accept payments.

If you want, you can bypass all this and implement a third party account as well, which will take care of all these hassles while you get all your money. However, they charge on a per transaction basis, so on every transaction that they process, you will need to pay a fee. Some may also charge a one time account setup fee as well.

Benefits of Accepting Credit Card Payments:

Accepting credit cards is quite beneficial for all merchants, be it small business owners or large sellers. If a small business owner does not accept credit cards, he/she may lose on the huge crowd of customers in the market, as people prefer more and more to shop with cards.

Next, all the international customers like business travelers, or tourists, prefer to use credit cards when shopping. Tourism and travel are on an all time high, and any merchant who does not offer the facility to accept credit card payments will lose out to them.

There are many facilities which small business owners can derive from such a payment system. Visa has come up with a new cash and credit management product for small business owners. Most credit cards in the world are Visa cards.

Since online purchases can be safely and quickly made using credit cards, most people prefer card payments only. If a small business owner has not implemented the credit card facility for online customers, he/she may lose out to a large number of online shoppers.

Many customers are impulsive buyers. Such customers will buy whenever they see something interesting, wherever they see it. They may not have cash on them at the time, but if they like something, they will buy it with their credit card. So to harness such customers, small business owners need to put a credit card payments system in place.

Some customers may not have enough cash reserves to shop, but may choose to buy now and pay the credit card company later.

Checks cannot be used as a reliable method of accepting payments, as they may bounce due to insufficient funds. Credit cards relieve the merchant of the concerns whether he will get his money or not.

Small business owners can make money as well as save money, as credit card payments are faster modes of payment especially if the business is run online.

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Will I Be Sued For Credit Card Debt Default

The short answer to this is Yes. Even though credit card debt is not secured debt, you can be sued for defaulting on credit card debt and be taken to court.

Once in court, they can garnish your wages. While the rules for taking you to court depends on the state that you are in, generally, most states do allow creditors to take the debtors to court for credit card debt default.

There are several instances where credit card companies have taken debtors to court for credit card defaults of amounts as small as $4000.

What happens if I am taken to court for credit card debt default?

While the specifics depend on your situation, what we describe below is a real life situation that a lot of people have already gone through. So, while most people treat this scenario as the worst case scenario, it is one, that can really occur.

If your credit card company sues you and takes you to court, you will not get a real trial. That means that you will just be asked to verify your identity and asked whether you really incurred those debts. If you answer in the affirmative, then the trial will be over then and there. The judge can ask your wages to be garnished and add the cost of the courts and attorneys to the debts. This amount will then be deducted from your salary every month. As you can well imagine, this becomes a socially embarrassing situation as you will need to explain the condition to your HR department and your coworkers will eventually learn about it.

What is the best thing to do if I know I can't pay my debts?

If you want to eliminate all chances of going through the hell we described above, call your credit card company and explain your situation.

The credit card companies want their money and they may be willing to freeze your interest going forward and chalk out a payment plan with you. This is very often the best scenario for a lot of people who can't afford to pay their debts any longer. They may even waive off your fees.

The specifics will depend on your situation, but it is better to call your credit card company and find out your alternatives before stopping payments altogether.

Act Now

If you find yourself in a situation where you may not be able to make payments, do not procrastinate, act immediately. If you wait too long, you may find yourself in a position from which it is difficult to recover. Once you default on your credit card payments, it will go to the collection agencies. The collection agencies make life really difficult by calling up work and home and creating embarrassing situations.

The default will also appear on your credit report and will ruin your credit score.

It is better to avoid all this and act quickly and decisively. This way, even if your situation worsens, you will be fully aware of what is going on in your life and will not be left second guessing on what happens next.

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