Why you should Leave your Bank and Join a Credit Union
by Tom Cribbs
So maybe you've had a savings account for a while or maybe you've taken out a mortgage for a house. Is your bank actually helping you, or it is doing more harm than good? If you've never looked into the benefits of a credit union, maybe now is a good time to switch. There are actually many benefits, many of which you've probably never even heard about.
Simply put, a bank is an establishment that is there to make money for itself. This isn't necessarily a bad thing; it's what every single business is in business for: to make its own money. So what's so great about a credit union? What makes it different? A credit union is a non-profit organization that is there specifically for its members. Basically, it's a group of people dedicated to their money. So instead of stockholders making decisions for the bank they have partial ownership of, you can literally own a portion of your credit union yourself and be able to vote and participate on different aspects of the company. It is completely Democratic and members even elect a volunteer Board of Directors. Sounds good, right?
Credit unions also offer higher rates of interest payout in savings accounts as well as having typically lower interest rates on loans and personal lines of credit. They also offer many free services such as checking accounts, debit and credit cards, and personalized service.
There are some people skeptical about credit unions because they believe that their money isn't safe. This rumor is no longer true and all credit unions now legally have to be federally insured, just like a bank. So there really shouldn't be any question in which establishment you should choose.
Now that you're convinced, go a step further. What other corporations do you spend your money at? The grocery store, clothing venues at the local mall. Once you start saving your money wisely, try spending your money wisely, too. Everything you do can become more frugal and help you in life. Learn to shop around. Do your research on which credit unions offer the lowest interest rates and the highest interest payouts.
Tom Cribbs has done research on car insurance.
Article Directory: Article Dashboard
Showing posts with label credit. Show all posts
Showing posts with label credit. Show all posts
Wednesday, February 20, 2008
Sunday, January 20, 2008
Get the Most From Your Credit Card
Get the Most From Your Credit Card
by Finance Globe-14426
Credit cards can be a valuable money management tool if used properly. We have many choices in card features, perks, and rewards. Getting the most out of any credit card starts with choosing the one (or several) that best suits your needs.
Credit cards offer more than a convenient way to pay, and if you manage your credit card accounts well, you can be sure to get the most out of your credit card while paying less for those benefits. The extras your credit card offers will depend on the type of account you qualify for. Carefully consider all aspects of any card before you apply, and use your card in the way that will benefit you most once you get it.
Secured cards and credit cards for people with poor or limited credit are usually bare bones credit cards that don't offer many, if any, benefits. They charge significantly higher interest rates than other credit cards and usually have a somewhat steep annual fee. The only real benefit they offer is that they can help you establish or improve your credit until you qualify for better terms. You have to actually use your card to improve your credit history; just having the account open without using it won't improve your credit. The best way for you to build your credit is to use your card every month, use no more than 30% of your credit limit, and pay your bill in full every month to avoid finance charges. If you've had one of these types of credit cards for some time, you've stayed within your credit limit, and you've always paid your bill on time, contact your credit card issuer to see if or when you'll qualify for a better card. They may agree to return your security deposit, reduce your interest rate, or do away with the annual fee. You may even qualify for a card with rewards. Your credit score can be hurt by closing old accounts and opening new ones, so see if you can upgrade the terms of your credit card while keeping the same account number.
Regular credit cards are for people with average to good credit. Regular credit cards often have a reasonable annual fee and fair rates. They don't require a security deposit and usually have a higher credit limit than cards for people with poor credit. Some come with limited rewards, such as travel miles, points you can redeem for merchandise, or even cash back. Cards with no annual fee usually don't offer as many rewards or charge a higher rate of interest than cards with an annual fee; if you want a low rate or rewards, you might have to pay an annual fee. Basically, you're going to pay for the use of credit somewhere. You can reap the benefits and avoid the costs of a credit card by choosing one with rewards you can use and no annual fee. If you can pay your balance in full every month, it really won't matter what the card's APR is. Many regular cards, and even cards for people with poor credit are marketed as "platinum", but really don't offer many benefits to validate the platinum status. Find out if you're really getting better treatment from the platinum card before you apply; you may get a better deal from a plain vanilla credit card.
Premium credit cards are for people with good to excellent credit. Credit card issuers want your business, and they will offer you their best terms because they know their competition is offering you their best deal, too. You have many choices in credit cards with no annual fee, great interest rates, and generous rewards. Many even offer extras like extended product warranties, roadside service, car rental insurance, and travel accident coverage at no charge. Some offer special discounts at selected merchants. You are likely to qualify for high credit limits because credit card issuers know they can trust you to manage your debt well. If you are interested in a credit card that's available to people with average credit simply because it offers benefits that are important to you, check with the card issuer before you apply. They may be willing to sweeten the deal due to your stellar credit rating.
Getting the most from your credit card
Be true to yourself when choosing a credit card. Before you shop for any product, the first step is to know what you want and how you're going to use it. Then you've reduced your choices to products that suit your needs. Once you've decided what type of product you actually need, you can further narrow your choices based on the price of the product. It's no different with credit cards. You may get credit card solicitations every week in the mail, but what are the chances that it's the best one for your needs when you have so many to choose from? Every day a retailer wants you to apply for their credit card at checkout, as if the card's incentives will prevent you from shopping anywhere else. Don't let them suck you in just because they offer credit; be sure that you'll benefit from the use of that particular card before you apply.
Rewards aren't freebies; they come at a price. I overheard a conversation in a store at checkout the other day, a shopper's friend commented that the shopper had spent way more than she said she was going to. The shopper replied, "Oh, it's okay, this card gives me rewards and the minimum payment is really low." Her response showed that she was not being rewarded at all, but being punished. It's too bad; she obviously didn't realize it. It's fun to think of all the things you can do with your credit card rewards; travel the world, redeem points for gift certificates, or even get cash back. But it's important to understand how much those rewards are actually costing you if you carry a balance.
For example, many rewards cards generally give you one point for every dollar you spend. One hundred points equals one dollar in redemption value. So what it boils down to is that for every dollar you spent, you get back one cent. To get one full dollar back, you have to spend one hundred dollars. If you carry a balance, that one hundred dollars will accrue an annual finance charge of anywhere from ten to thirty dollars, depending on your card's APR. How can you call it a reward if you are paying that kind of interest? You can't, that's why it's so important to pay your balance in full every month to truly benefit from the rewards your card offers.
Another way people are missing out on their rewards is by overspending simply to build up rewards points. If you are hoping to earn a plane ticket valued at three and fifty dollars, you would have to charge thirty-five thousand dollars on your credit card. That's a lot of money! It's better to pay for your ticket outright rather than buy stuff on impulse just to accrue rewards points. You can benefit from the card's rewards only if you are using your credit card for things that you would normally buy anyway. Use your rewards card for everyday purchases, like gas and groceries, to build up points based on what you normally spend, without spending more just to get the rewards. Over time, you can redeem your points or miles to get a bonus, without breaking the bank to get that bonus.
For people who don't pay their balance in full every month, a card with a low APR is the way to go. Forget about the rewards you'll be "missing"; many rewards cards charge a significantly higher rate of interest than a no rewards card. The card issuers have to make up for the cost of their rewards somewhere, and they often do it by charging a higher APR. If you always carry a balance, and you can get a card with an APR that's 5% lower than a rewards card, you'll automatically be saving five dollars in interest for every hundred dollars you spend. That's a much better deal than the one dollar you'll get back with a rewards card!
It's up to you to decide what kind of credit card will benefit you most. You must consider your spending habits, as well as your debt repayment habits. It's great to be rewarded for buying the things you already spend money on, as long as you aren't paying more in interest charges than the rewards are worth.
Finance Globe is a professional contributor of personal finance publications. All inquiries pertaining to this aricle should be submitted to them.
Article Directory: Article Dashboard
by Finance Globe-14426
Credit cards can be a valuable money management tool if used properly. We have many choices in card features, perks, and rewards. Getting the most out of any credit card starts with choosing the one (or several) that best suits your needs.
Credit cards offer more than a convenient way to pay, and if you manage your credit card accounts well, you can be sure to get the most out of your credit card while paying less for those benefits. The extras your credit card offers will depend on the type of account you qualify for. Carefully consider all aspects of any card before you apply, and use your card in the way that will benefit you most once you get it.
Secured cards and credit cards for people with poor or limited credit are usually bare bones credit cards that don't offer many, if any, benefits. They charge significantly higher interest rates than other credit cards and usually have a somewhat steep annual fee. The only real benefit they offer is that they can help you establish or improve your credit until you qualify for better terms. You have to actually use your card to improve your credit history; just having the account open without using it won't improve your credit. The best way for you to build your credit is to use your card every month, use no more than 30% of your credit limit, and pay your bill in full every month to avoid finance charges. If you've had one of these types of credit cards for some time, you've stayed within your credit limit, and you've always paid your bill on time, contact your credit card issuer to see if or when you'll qualify for a better card. They may agree to return your security deposit, reduce your interest rate, or do away with the annual fee. You may even qualify for a card with rewards. Your credit score can be hurt by closing old accounts and opening new ones, so see if you can upgrade the terms of your credit card while keeping the same account number.
Regular credit cards are for people with average to good credit. Regular credit cards often have a reasonable annual fee and fair rates. They don't require a security deposit and usually have a higher credit limit than cards for people with poor credit. Some come with limited rewards, such as travel miles, points you can redeem for merchandise, or even cash back. Cards with no annual fee usually don't offer as many rewards or charge a higher rate of interest than cards with an annual fee; if you want a low rate or rewards, you might have to pay an annual fee. Basically, you're going to pay for the use of credit somewhere. You can reap the benefits and avoid the costs of a credit card by choosing one with rewards you can use and no annual fee. If you can pay your balance in full every month, it really won't matter what the card's APR is. Many regular cards, and even cards for people with poor credit are marketed as "platinum", but really don't offer many benefits to validate the platinum status. Find out if you're really getting better treatment from the platinum card before you apply; you may get a better deal from a plain vanilla credit card.
Premium credit cards are for people with good to excellent credit. Credit card issuers want your business, and they will offer you their best terms because they know their competition is offering you their best deal, too. You have many choices in credit cards with no annual fee, great interest rates, and generous rewards. Many even offer extras like extended product warranties, roadside service, car rental insurance, and travel accident coverage at no charge. Some offer special discounts at selected merchants. You are likely to qualify for high credit limits because credit card issuers know they can trust you to manage your debt well. If you are interested in a credit card that's available to people with average credit simply because it offers benefits that are important to you, check with the card issuer before you apply. They may be willing to sweeten the deal due to your stellar credit rating.
Getting the most from your credit card
Be true to yourself when choosing a credit card. Before you shop for any product, the first step is to know what you want and how you're going to use it. Then you've reduced your choices to products that suit your needs. Once you've decided what type of product you actually need, you can further narrow your choices based on the price of the product. It's no different with credit cards. You may get credit card solicitations every week in the mail, but what are the chances that it's the best one for your needs when you have so many to choose from? Every day a retailer wants you to apply for their credit card at checkout, as if the card's incentives will prevent you from shopping anywhere else. Don't let them suck you in just because they offer credit; be sure that you'll benefit from the use of that particular card before you apply.
Rewards aren't freebies; they come at a price. I overheard a conversation in a store at checkout the other day, a shopper's friend commented that the shopper had spent way more than she said she was going to. The shopper replied, "Oh, it's okay, this card gives me rewards and the minimum payment is really low." Her response showed that she was not being rewarded at all, but being punished. It's too bad; she obviously didn't realize it. It's fun to think of all the things you can do with your credit card rewards; travel the world, redeem points for gift certificates, or even get cash back. But it's important to understand how much those rewards are actually costing you if you carry a balance.
For example, many rewards cards generally give you one point for every dollar you spend. One hundred points equals one dollar in redemption value. So what it boils down to is that for every dollar you spent, you get back one cent. To get one full dollar back, you have to spend one hundred dollars. If you carry a balance, that one hundred dollars will accrue an annual finance charge of anywhere from ten to thirty dollars, depending on your card's APR. How can you call it a reward if you are paying that kind of interest? You can't, that's why it's so important to pay your balance in full every month to truly benefit from the rewards your card offers.
Another way people are missing out on their rewards is by overspending simply to build up rewards points. If you are hoping to earn a plane ticket valued at three and fifty dollars, you would have to charge thirty-five thousand dollars on your credit card. That's a lot of money! It's better to pay for your ticket outright rather than buy stuff on impulse just to accrue rewards points. You can benefit from the card's rewards only if you are using your credit card for things that you would normally buy anyway. Use your rewards card for everyday purchases, like gas and groceries, to build up points based on what you normally spend, without spending more just to get the rewards. Over time, you can redeem your points or miles to get a bonus, without breaking the bank to get that bonus.
For people who don't pay their balance in full every month, a card with a low APR is the way to go. Forget about the rewards you'll be "missing"; many rewards cards charge a significantly higher rate of interest than a no rewards card. The card issuers have to make up for the cost of their rewards somewhere, and they often do it by charging a higher APR. If you always carry a balance, and you can get a card with an APR that's 5% lower than a rewards card, you'll automatically be saving five dollars in interest for every hundred dollars you spend. That's a much better deal than the one dollar you'll get back with a rewards card!
It's up to you to decide what kind of credit card will benefit you most. You must consider your spending habits, as well as your debt repayment habits. It's great to be rewarded for buying the things you already spend money on, as long as you aren't paying more in interest charges than the rewards are worth.
Finance Globe is a professional contributor of personal finance publications. All inquiries pertaining to this aricle should be submitted to them.
Article Directory: Article Dashboard
Monday, December 10, 2007
Paying Off Holiday Debt Quickly
Paying Off Holiday Debt Quickly - 6 Tips for Consumers by Valeri A. James
Dana, a 30-year old public relations specialist, may be earning big bucks while climbing the corporate ladder but like most unattached career women in town, she is struggling with the payment of her credit card balances. For Dana, Christmas is a challenging season as she would have to rein her spending impulses to remedy her already worsening credit rating.
Like Dana, most Americans (single or married) are faced with budgeting problems. Bad credit can get worse with overspending especially during the Christmas season. Holiday debts can pile up and contribute to a negative credit rating.
A negative credit rating is just a symptom of a budgeting problem that can get worse if it goes unchecked. If you still have left-over holiday debts from last year or if you have already placed yourself in deep Christmas debt this year then talk to a debt counselor or consider the following sure-fire tips for paying off your holiday debts quickly.
1. Use CASH whenever possible. Have you noticed how you become more conscious of spending when you need to pay in cash? Paying in cash allows you to keep track of your purchases in real time and by doing so (whenever possible) you would be able to keep yourself from splurging. Ergo: less credit card balances to pay at the end of the month or whenever your card is due.
2. Use your credit card wisely. That strip of hard plastic should be used only when necessary. The first rule of thumb is to use CASH whenever possible. However, American society is so dependent on plastic that you may have to use your credit card more often. Just make sure you do so for reasonable and necessary purchases. Christmas is not a license to overspend. You may be able to buy all the things you want for Christmas (up to your credit card's limit, that is!) but your credit history will suffer if you are not able to pay all your debts on time.
3. List all your outstanding debts. You may be spending too much because you do not keep track of your debts. Document your debts (both credit card and otherwise) and print them out for a quick reference. Seeing your actual debt in black and white will help you cut back on unnecessary expenses and Christmas spending until you have cleared your credit card balances.
4. Make holiday debt payment a priority. It is fun to spend but if you have over-expended your wallet then you have no choice but to prioritize the payment of your debts first before you incur new ones. If your Christmas debts are divided among several credit cards, choose the ones with the least amount and pay it first. Then choose the other credit card balances that you can afford to pay given your financial state.
5. Sacrifice your little pleasures. Paying off your credit card balances can be a pain especially when your finances are limited. This can mean little sacrifices like cooking home meals instead of eating out and drinking instant or office-made brewed coffee instead of going to expensive coffee shops during break time or after work. Before you know it, you already have enough savings to pay for some of your holiday debts.
6. Look for additional sources of income. If your income is limited then you may have to look for additional sources of income to pay off your holiday debts. You can monetize your hobby and make good money out of it. If you are good in photography, why not take photos of your fellow workers during the Christmas party and sell them their photos? Or if you bake a mean chocolate cake, why not sell them this Holiday season? Who knows, your sideline can become a business someday which will help you improve your finances.
If despite these tips you still find yourself overspending and incurring Christmas debts like there is no tomorrow then you should get professional help. Debt counseling groups and Certified Credit Consultants can help you get your spending habits as well as your credit back in track.
Valeri A. James is the President and CEO of Simple Solutions Credit Consulting, Inc. A consumer advocate and author, she has spoken on radio programs and to hundreds of people at seminars, workshops, and business groups. She has over 22 years of experience in the credit industry helping thousands of consumers escape the trap of debt and bad credit. If you are feeling helpless about your debt or low credit score visit http://mycreditsolutions.com or call 1-888-303-7722 for a FREE consultation.
Article Source: Article Directory
Dana, a 30-year old public relations specialist, may be earning big bucks while climbing the corporate ladder but like most unattached career women in town, she is struggling with the payment of her credit card balances. For Dana, Christmas is a challenging season as she would have to rein her spending impulses to remedy her already worsening credit rating.
Like Dana, most Americans (single or married) are faced with budgeting problems. Bad credit can get worse with overspending especially during the Christmas season. Holiday debts can pile up and contribute to a negative credit rating.
A negative credit rating is just a symptom of a budgeting problem that can get worse if it goes unchecked. If you still have left-over holiday debts from last year or if you have already placed yourself in deep Christmas debt this year then talk to a debt counselor or consider the following sure-fire tips for paying off your holiday debts quickly.
1. Use CASH whenever possible. Have you noticed how you become more conscious of spending when you need to pay in cash? Paying in cash allows you to keep track of your purchases in real time and by doing so (whenever possible) you would be able to keep yourself from splurging. Ergo: less credit card balances to pay at the end of the month or whenever your card is due.
2. Use your credit card wisely. That strip of hard plastic should be used only when necessary. The first rule of thumb is to use CASH whenever possible. However, American society is so dependent on plastic that you may have to use your credit card more often. Just make sure you do so for reasonable and necessary purchases. Christmas is not a license to overspend. You may be able to buy all the things you want for Christmas (up to your credit card's limit, that is!) but your credit history will suffer if you are not able to pay all your debts on time.
3. List all your outstanding debts. You may be spending too much because you do not keep track of your debts. Document your debts (both credit card and otherwise) and print them out for a quick reference. Seeing your actual debt in black and white will help you cut back on unnecessary expenses and Christmas spending until you have cleared your credit card balances.
4. Make holiday debt payment a priority. It is fun to spend but if you have over-expended your wallet then you have no choice but to prioritize the payment of your debts first before you incur new ones. If your Christmas debts are divided among several credit cards, choose the ones with the least amount and pay it first. Then choose the other credit card balances that you can afford to pay given your financial state.
5. Sacrifice your little pleasures. Paying off your credit card balances can be a pain especially when your finances are limited. This can mean little sacrifices like cooking home meals instead of eating out and drinking instant or office-made brewed coffee instead of going to expensive coffee shops during break time or after work. Before you know it, you already have enough savings to pay for some of your holiday debts.
6. Look for additional sources of income. If your income is limited then you may have to look for additional sources of income to pay off your holiday debts. You can monetize your hobby and make good money out of it. If you are good in photography, why not take photos of your fellow workers during the Christmas party and sell them their photos? Or if you bake a mean chocolate cake, why not sell them this Holiday season? Who knows, your sideline can become a business someday which will help you improve your finances.
If despite these tips you still find yourself overspending and incurring Christmas debts like there is no tomorrow then you should get professional help. Debt counseling groups and Certified Credit Consultants can help you get your spending habits as well as your credit back in track.
Valeri A. James is the President and CEO of Simple Solutions Credit Consulting, Inc. A consumer advocate and author, she has spoken on radio programs and to hundreds of people at seminars, workshops, and business groups. She has over 22 years of experience in the credit industry helping thousands of consumers escape the trap of debt and bad credit. If you are feeling helpless about your debt or low credit score visit http://mycreditsolutions.com or call 1-888-303-7722 for a FREE consultation.
Article Source: Article Directory
Sunday, December 2, 2007
Christmas and Your Money Problems
Money Problems Are 'More Pronounced Towards Christmas'
By Mark Dawson
More people could be struggling in their ability to handle their finances, new studies have shown.
In research released by Chiltern, the proportion of their income that consumers could afford to pay back to creditors on areas such as store cards and loans during November stood at some 17 per cent, a decrease of one percentage point from figures noted during the previous month. Findings from the firm also showed a slight rise in living costs over the course of November. During the month such expenses accounted for 83 per cent of consumers' income, up from the 82 per cent noted in October. However, with the rate that they are contractually obliged to pay back remaining consistent, money management may become more difficult for a number of Britons.
Commenting on the figures, Joanne Gill, spokesperson for the debt management consultancy, said: "Our research shows that six million people in the UK are struggling with their finances and one million admit to being seriously overstretched - these figures demonstrate that predicament very clearly. Debt is a source of constant stress for many families as they juggle their credit commitments to maintain their minimum payments and spiral further into debt. It is particularly pronounced at this time of year as people feel under pressure to enter into the festive spirit whether or not they can afford to."
According to the firm, a "key indicator" of consumers developing problems with their finances is when at least a quarter of their salary is going towards debt repayments. Another such sign is the use of credit - whether this is through a secured personal loan or plastic card - to pay for essentials such as transport and food. Meanwhile, people are also reported to be developing "debt stress" if they are only able to make the minimum amount of repayments on credit and store cards, as well as having at least four debt commitments.
Consequently, people worried about their capacity to meet various demands on their finances were advised to draw up a list of all the money that they have coming in on a regular basis, such as wages, benefits and maintenance payments. Ms Gill then suggested that people should create an expenditure chart, tracking their payments on mortgages, utility bills, secured loans, food and other spending commitments. After subtracting the total of the former from the latter, should people they find they have a negative balance, Chiltern urged them to seek out help with their finances.
Meanwhile, with the festive period rapidly approaching, those who are already struggling to manage their money may wish to take steps to rein in their spending, with the application for a consolidation loan one possible way in which this could be done. Consequently, many Britons could find that applying for a low-cost loan as a means of consolidating debts could help them get to grips with their expenditure. Such a loan may see borrowers clear off debts owed to a number of creditors quickly and leave them with a single low-rate monthly repayment.
As a result, an application for a debt consolidation loan may especially be advisable for young people as a recent study carried out by iva indicated that about one in four of those between 18 and 24 are struggling to handle their finances. In addition, it was suggested that 1.2 million children currently in school will discover that they will have money management problems in the next five years. Overall, the insolvency publication suggested that 16 per cent of Britons have debts which they feel unable to pay back. As a result, the provision of monetary education in schools was urged to help people manage their spending and to compare loans and other financial products effectively in later life.
Mark Dawson writes for the the Loan Arrangers where you can apply online for low cost loans, you can also compare secured loans online, and apply for poor credit loans.
Article Source: http://EzineArticles.com/?expert=Mark_Dawson
http://EzineArticles.com/?Money-Problems-Are-More-Pronounced-Towards-Christmas&id=858689
Sunday, November 25, 2007
Home Equity Credit Line
Home Equity Credit Line
by Tsubaki Chan
What is a home equity line of credit?
A home equity line of credit is a form of turning credit in which your home serves as collateral. Because the home is liable to be a consumer's prevalent asset, many homeowners use their credit position only for main objects such as schooling, home improvements, or health invoices and not for day-to-day expenses. With a home equity line, you will be official for an unusual total of credit your credit check, the utmost total you may sponge at any one time under the plan. Many plans set the credit check on a home equity line by pleasing a percentage (say, 75 percent) of the home's appraised treasure and subtracting from that the tally allocated on the free credit. For example, accept example [D] In determining your actual credit check, the lender will also respect your ability to reimburse, by looking at your returns, debts, and other monetary obligations as well as your credit saga. Many home equity plans set a flat stage during which you can sponge money, such as 10 days. At the end of this "draw stage," you may be all allocated to renew the credit line. If your plan does not authorize renewals, you will not be able to sponge additional money once the stage has broken. Some plans may call for payment in bursting of any outstanding tally at the end of the stage. Others may authorize reimbursement over a flat stage (the "reimbursement stage"), for example, 10 days. Once official for a home equity line of credit, you will most liable be able to sponge up to your credit check when you want. Typically, you will use unusual checks to draw on your line. Under some plans, lenders can use a credit license or other means to draw on the line. There may be cessations on how you use the line. Some plans may demand you to sponge a least total each time you draw on the line (for example, $300) and to keep a least total outstanding. Some plans may also demand that you take an original heighten when the line is set up....
What should you look for when shopping for a plan?
If you elect to affect for a home equity line of credit, look for the plan that best meets your particular desires. Read the credit accord carbureting, and sift the language and conditions of diverse plans, well the yearly percentage velocity (APR) and the outlay of establishing the plan. The APR for a home equity line is based on the activity velocity forlorn and will not show the last outlay and other fees and charges, so you'll want to relate this outlay, as well as the APRs, among plans....
Interest rate charges and related plan features
Home equity position of credit typically contain adaptable quite than flat activity velocities. The adaptable velocity must be based on a overtly existing sign (such as the superior velocity available in some main daily newspapers or a U.S. bargains invoice velocity); the activity velocity for sponging under the home equity line changes, mirroring fluctuations in the treasure of the sign. Most plans cite the activity velocity you will pay as the treasure of the sign at a particular time good a "margin," such as 2 percentage points. Because the expense of sponging is fixed openly to the treasure of the sign, it is important to find out which sign is worn, how regularly the treasure of the sign changes, and how high it has risen in the older as well as the total of the margin. Plans sometimes bargain a temporarily discounted activity velocity for home equity positional velocity that is unusually low and may last for only an introductory stage, such as 6 months. Variable velocity plans available by an apartment must, by law, have a ceiling (or cap) on how greatly your activity velocity may heighten over the life of the plan. Some adaptable velocity plans check how greatly your payment may heighten and how low your activity velocity may descend if activity velocities drip. Some plans authorize you to convince from an adaptable activity velocity to a flat velocity during the life of the plan, or to convince all or a portion of your line to flatter installment finance. Procedure commonly authorizes the lender to freeze or decrease your credit line under certain circumstances. For example, some adaptable velocity plans may not authorize you to draw additional resources during a stage in which the activity velocity reaches the cap....
Tsubaki Chan writes for http://www.creditlinya.com where you can find out more about Credit Line and other topics.
Article Directory: Article Dashboard
by Tsubaki Chan
What is a home equity line of credit?
A home equity line of credit is a form of turning credit in which your home serves as collateral. Because the home is liable to be a consumer's prevalent asset, many homeowners use their credit position only for main objects such as schooling, home improvements, or health invoices and not for day-to-day expenses. With a home equity line, you will be official for an unusual total of credit your credit check, the utmost total you may sponge at any one time under the plan. Many plans set the credit check on a home equity line by pleasing a percentage (say, 75 percent) of the home's appraised treasure and subtracting from that the tally allocated on the free credit. For example, accept example [D] In determining your actual credit check, the lender will also respect your ability to reimburse, by looking at your returns, debts, and other monetary obligations as well as your credit saga. Many home equity plans set a flat stage during which you can sponge money, such as 10 days. At the end of this "draw stage," you may be all allocated to renew the credit line. If your plan does not authorize renewals, you will not be able to sponge additional money once the stage has broken. Some plans may call for payment in bursting of any outstanding tally at the end of the stage. Others may authorize reimbursement over a flat stage (the "reimbursement stage"), for example, 10 days. Once official for a home equity line of credit, you will most liable be able to sponge up to your credit check when you want. Typically, you will use unusual checks to draw on your line. Under some plans, lenders can use a credit license or other means to draw on the line. There may be cessations on how you use the line. Some plans may demand you to sponge a least total each time you draw on the line (for example, $300) and to keep a least total outstanding. Some plans may also demand that you take an original heighten when the line is set up....
What should you look for when shopping for a plan?
If you elect to affect for a home equity line of credit, look for the plan that best meets your particular desires. Read the credit accord carbureting, and sift the language and conditions of diverse plans, well the yearly percentage velocity (APR) and the outlay of establishing the plan. The APR for a home equity line is based on the activity velocity forlorn and will not show the last outlay and other fees and charges, so you'll want to relate this outlay, as well as the APRs, among plans....
Interest rate charges and related plan features
Home equity position of credit typically contain adaptable quite than flat activity velocities. The adaptable velocity must be based on a overtly existing sign (such as the superior velocity available in some main daily newspapers or a U.S. bargains invoice velocity); the activity velocity for sponging under the home equity line changes, mirroring fluctuations in the treasure of the sign. Most plans cite the activity velocity you will pay as the treasure of the sign at a particular time good a "margin," such as 2 percentage points. Because the expense of sponging is fixed openly to the treasure of the sign, it is important to find out which sign is worn, how regularly the treasure of the sign changes, and how high it has risen in the older as well as the total of the margin. Plans sometimes bargain a temporarily discounted activity velocity for home equity positional velocity that is unusually low and may last for only an introductory stage, such as 6 months. Variable velocity plans available by an apartment must, by law, have a ceiling (or cap) on how greatly your activity velocity may heighten over the life of the plan. Some adaptable velocity plans check how greatly your payment may heighten and how low your activity velocity may descend if activity velocities drip. Some plans authorize you to convince from an adaptable activity velocity to a flat velocity during the life of the plan, or to convince all or a portion of your line to flatter installment finance. Procedure commonly authorizes the lender to freeze or decrease your credit line under certain circumstances. For example, some adaptable velocity plans may not authorize you to draw additional resources during a stage in which the activity velocity reaches the cap....
Tsubaki Chan writes for http://www.creditlinya.com where you can find out more about Credit Line and other topics.
Article Directory: Article Dashboard
Sunday, July 8, 2007
Bankruptcy IS NOT The End
Guidelines For Buying Things After Bankruptcy Proceedings
By Wade Robins
There are special guidelines you need to follow when filing for bankruptcy. There are also things to remember about buying things after a bankruptcy. Can you get a loan? Can you Can you get a credit card? The answer is simple, do you want to get back into debt after getting out.
After bankruptcy, you may find it a little harder to obtain a loan or a mortgage, but it can be done. Many bad credit programs pop up everywhere and make it easier for people who had the unfortunate bankruptcy filings on their credit report to obtain financing for a loan or a mortgage, even a credit card.
More companies want to help people with bad credit obtain car or home loans and offer many different types of loans for this specific reason. Many people who want to purchase a car or a mortgage will want to check into the many different options. One reason people become qualified is that people cannot file for bankruptcy again for at least seven years after the first filing. This is all part of the guidelines for bankruptcy that you receive when you file.
Before trying to buy anything after a bankruptcy, you should work on building your credit score and watch any credit card balances to make sure that your total debt is not over fifty percent of your income. By adding positive credit history to your credit report helps to raise your credit score. You can apply for a credit card even if it is small as three hundred dollars for the limit, use it, and pay it off many times. This builds positive credit.
Knowing what creditors look for when giving out credit helps you prepare for obtaining credit. You might need to talk to creditors or a credit repair counselor to see what you might do to help your chances of getting a loan. Every lender has a different standard when it comes to dealing with people with poor credit reports and scores.
Two things you can count on them wanting are a down payment and income verification, but also they want you to wait at least two years after bankruptcy to apply for a loan. Of course, you need to make all payments you have for anything, on time, including your repayment plan.
If you need a down payment, you can borrow from family or friends or try a program for assistance for receiving a down payment. You might obtain a grant from these organizations and use that towards your down payment. Another way to obtain a down payment is by borrowing from your 401K plan as a way to provide you with a down payment.
You can also find more info on Chapter 11 Bankruptcy and Personal Bankruptcy. Filingpersonalbankruptcyhelp.com is a comprehensive resource to get help in Bankruptcy.
Article Source: http://EzineArticles.com/?expert=Wade_Robins
http://EzineArticles.com/?Guidelines-For-Buying-Things-After-Bankruptcy-Proceedings&id=633151
Wednesday, May 16, 2007
Fix Your Bad Credit in 8 Simple Steps
How to Repair Bad Credit in 8 Simple Steps
By: Garret Belisle
Here is STEP 1: Read your credit report to discover what things are listed on the report that have led to your bad credit rating in the first place.
STEP 2: If you note inaccuracies on your credit report, you'll need to dispute those with the individual creditors reporting them. You can't dispute accurate information even if it does reflect poorly on your credit report, but you can make repairs and improve your credit.
STEP 3: Contact individual creditors and ask if they're willing to work with you to create a repayment plan you can afford, but also assures the creditor of your intent to repay the debt owed them.
STEP 4: Contact your credit card companies and ask for a reduction in the interest rate applied to your credit cards. Some may not be willing, but many credit card companies are willing to do so for cardholders. Use the reduction of interest applied to a credit card account to pay the debt you have on it down faster.
STEP 5: Gather pay stubs and statements for monthly, quarterly, and annual bills (utilities, phone, mortgage, home insurance, retirement account contributions) and create a budget to keep from spending beyond what you actually bring in. You'll also find ways to spend less and use those savings to pay on the debts causing you bad credit
STEP 6: Maxed-out credit cards? Barely able to make the minimum payments on them? Stop using them! Hide them away in a drawer so they won't tempt you to use them and add even more debts to them.
STEP 7: Contact a credit counseling service if your debts are so large that you cannot make regular payments on all of them. A credit counseling service can help you create a plan of action to take care of the debts that are responsible for your bad credit. They can often times speak to your creditors and get you reduced rates and extended payments plans as well.
STEP 8: Apply for a bank sponsored debit or prepaid credit card. As you use this for purchases and make regular payments, you will slowly rebuild bad credit into good credit.
No matter how bad a credit problem may be, it can either get better or worse. In many cases much, much worse. Almost everyone has had credit issues at one time or another in their lifetime. The fact is that our credit rating has a very large effect on our every day lives. Always remember that the better your credit becomes the more money you can and most certainly will save on a variety of things such as; mortgage rates, credit card interest, car payments to name but a few.
Stick to a budget and both you and your credit will be happier for it. Good luck.
Send this page to:
Author Bio
Garret Belisle authors for www.need-to-get-some.blogspot.com, he is also a business consultant for several companies within his community. This is a fun blog that changes daily, not keeping to any particular topic. Check it out, you never know what you'll read (or possibly learn:-)
Article Source: http://www.articlegeek.com
Sunday, May 6, 2007
Know what's in your Credit Report!
What Does Your Credit History Look Like?
by Cornie Herring
If you have ever taken out a loan, used a credit card or taken advantage of a "buy now, pay later" offer, you will have a credit history. Whenever a financial institution, such as a bank, a credit card company, or any other business gives you credit, it may send information about whether or not you make your payments on time to a credit-reporting agency.
It is important to get a copy of your credit history. You may think your credit history is perfect because you have never been late or missed any of your loan payment, but recent studies have shown that perhaps as many as 50% of all credit histories have errors in them. And these errors could be a problem for you.
Today, you credit history is used as a measuring tool more than simply applying for a loan. Statistic shows that 92% of insurers are using credit history to predicting potential losses and apply appropriate rate for their customers. A potential employer, especially financial industry may want to review your credit history before they offer you any of their job positions. With tight rental market in many metropolitan areas, landlords want to see prospective tenant's credit histories. Whether you are going to be able to pay the rent of not is foremost on their minds.
Your credit report contains information about your past and present personal and financial situation. Credit cards that never been formally cancelled will appeared on your credit history as an open line of credit. Beside that, credit-related court judgment against you in a lawsuit such as bankruptcy, if any will be recorded in your credit report and follow you as your credit history for many years. If you have any delay or unpaid debts, they will be appeared in your credit report. These can potentially cause problems because, if you are applying for a loan such as a college loan, a home mortgage or job application, they will be entered into the credit formula as debt and affect your credit ratings. Bad credit ratings prevent you from getting the best offer in term of best interest rate, approve with higher loan amount, or getting hire in your job application.
Hence, your pass credit records are important to you and if you have a good record, make sure that they appeared correctly in your credit history as you should be. There are three major reporting agencies: Equifax, Experian and Trans-Union, and they do not share information with each other, so you need to check your history from all three agencies. If you find errors, you can write to the agencies explaining the error, and they have 30 days to correct the error. You will want to check your report again after you have sent the corrections to be sure the changes were made.
In summary, it is your responsibility to ensure that your credit report is displaying your actual credit history. Take your initiative to confirm the correctness of you credit report so that you won't face any problem when come to the time you want to use it for any purpose.
Cornie Herring is the Author from http://www.studykiosk.com/CreditBasics/. An informational website on credit basics, debt consolidation & bankruptcy. Learn more about money from our Money Lessons.
Article Source: FreeArticleSubmission.com
by Cornie Herring
If you have ever taken out a loan, used a credit card or taken advantage of a "buy now, pay later" offer, you will have a credit history. Whenever a financial institution, such as a bank, a credit card company, or any other business gives you credit, it may send information about whether or not you make your payments on time to a credit-reporting agency.
It is important to get a copy of your credit history. You may think your credit history is perfect because you have never been late or missed any of your loan payment, but recent studies have shown that perhaps as many as 50% of all credit histories have errors in them. And these errors could be a problem for you.
Today, you credit history is used as a measuring tool more than simply applying for a loan. Statistic shows that 92% of insurers are using credit history to predicting potential losses and apply appropriate rate for their customers. A potential employer, especially financial industry may want to review your credit history before they offer you any of their job positions. With tight rental market in many metropolitan areas, landlords want to see prospective tenant's credit histories. Whether you are going to be able to pay the rent of not is foremost on their minds.
Your credit report contains information about your past and present personal and financial situation. Credit cards that never been formally cancelled will appeared on your credit history as an open line of credit. Beside that, credit-related court judgment against you in a lawsuit such as bankruptcy, if any will be recorded in your credit report and follow you as your credit history for many years. If you have any delay or unpaid debts, they will be appeared in your credit report. These can potentially cause problems because, if you are applying for a loan such as a college loan, a home mortgage or job application, they will be entered into the credit formula as debt and affect your credit ratings. Bad credit ratings prevent you from getting the best offer in term of best interest rate, approve with higher loan amount, or getting hire in your job application.
Hence, your pass credit records are important to you and if you have a good record, make sure that they appeared correctly in your credit history as you should be. There are three major reporting agencies: Equifax, Experian and Trans-Union, and they do not share information with each other, so you need to check your history from all three agencies. If you find errors, you can write to the agencies explaining the error, and they have 30 days to correct the error. You will want to check your report again after you have sent the corrections to be sure the changes were made.
In summary, it is your responsibility to ensure that your credit report is displaying your actual credit history. Take your initiative to confirm the correctness of you credit report so that you won't face any problem when come to the time you want to use it for any purpose.
Cornie Herring is the Author from http://www.studykiosk.com/CreditBasics/. An informational website on credit basics, debt consolidation & bankruptcy. Learn more about money from our Money Lessons.
Article Source: FreeArticleSubmission.com
Subscribe to:
Posts (Atom)