How to Borrow $5,000

if you need some extra money to finance a remodel, go back to school, pay for a wedding, cover a medical expense, or consolidate bills, there are some great options available online. For this month's newsletter, we'll give you a quick run down of the best ways to borrow $5,000:

Personal Loan

You can borrow $1,000 to $15,000 online with a personal loan. The repayment term is usually between 1-4 years depending on how much you borrow. Your interest rate will depend on your credit standing, but it will be much lower than a credit card is most cases. There's no prepayment penalty with a personal loan, meaning you can pay it off early anytime.

After you apply for a personal loan online, our system forwards your information to the best- matched lender from our network. This lender will contact you directly to complete your loan approval and give you a no-obligation quote. If you decide to accept the loan, you'll go directly to the lender's local office to pick up your money.

Personal loans are convenient to use because they have a low interest rate and a long repayment term. For example, a $5,000 personal loan for three years with a 12% APR would have a monthly payment around $166 a month. After three years, you would have paid around $980 in interest.

Credit Card

If you have a plan to repay the $5,000 debt within a couple of months, you might consider using a credit card instead of a personal loan. Although credit card interest rates are higher, they are more convenient to use for a short term debt. If you paid off a $5,000 debt on a 15% APR credit card in three months ($1,666 a month), you would be charged about $128 in interest.

Using a credit card would get very expensive if you didn't pay off that debt right away. With only paying the minimum payment due on your $5,000 each month, it would take you 11 years and cost you $2,200 in interest to pay off the account.

Also, you should make sure that you have enough available credit limits so that charging $5,000 won't cause damage to your debt-to-limit ratio and credit score.

Peer-to-Peer Lender

New lending services are popping up online that connect people wanting to invest money directly with borrowers. Lending Club is an example of a company that lets you bypass the banks and borrow directly from a group of individuals. You can borrow $500 to $25,000 for up to three years with a peer-to-peer lender. You'll need good credit to qualify, however -- usually a score above 680.

Peer-to-peer lending is a great option for borrowers with perfect credit looking for a really low rate, as low as 7.37%. If you got a 3 year loan for $5,000 at 10% through Lending Club, you would pay about $800 in interest.

All three of these loan options allow you to pay back your $5,000 debt early without penalty. Early payment is a key way to reduce your interest costs on your debt. No matter which borrowing method you choose, it's important to make all your payments on time each month

Any more questions about how to borrow $5,000? Other borrowing ideas to share? Send us your questions and comments at tidbits@credit.com anytime!

Article Source:
http://www.credit.com/tidbits/archive/October07_Tidbits_web.htm

All Credit Cards are Good

All credit cards offer many benefits and features. Some come with a few disadvantages. To convey my point I will leave the disadvantages for others to write about. All credit cards are good in their own way for their own purpose and for that specific applicant. There are many credit cards for applicants with good credit, bad credit or with no credit at all. There are the so called "bad credit cards" and the "good credit cards." Bad credit cards fit consumers looking to build "good credit." Good credit cards fit consumers with good credit looking to take advantage of benefits that suit their daily lives. So are all credit cards good? Yes, because in some cases you have to start somewhere and sometimes, it comes at a price.

Consumers with good credit attract the credit cards that would better suit their income, credit history, spending habits and paying habits. Many credit cards that approach consumers with good credit tend to offer great transfer rates and lower interest rates on future purchases as long as the consumer's credit doesn't change in the wrong direction. Everyone has their individual needs and perceptions of their credit. So the only challenging factor for someone with good credit is to maintain the good credit status and keep a close eye on your credit limit to credit debt ratio. In my opinion, your ratio should be at around 25% to 40% because it is a responsible level to be proactive in managing your credit cards. A 25% credit limit to credit debt ratio would be $250.00 balance on a $1,000.00 credit limit. Investing in a credit monitoring service also helps to keep a third eye on your credit so you can focus on your busy life.

Consumers with bad credit attract the credit cards that seem to be outrageous because of interest rate, credit line or terms of the agreement such as annual fees and processing fees. In my opinion, their is no such thing as a bad credit card as long as they report the account to Experian, Transunion and Equifax (CSC Credit Service). Instead of them being called bad credit cards they should be called credit building cards. If you cannot get over yourself by accepting a credit building card, maybe a secured credit card from your bank would be the best choice as long as they report to the credit bureau. Never think bad credit is forever or that it can't ever improve, it can with responsible steps. If you get a so called bad credit card then make sure you fulfill your end of the agreement, and don't make excuses for not paying on time or letting it charge off because it was only $300.00. I think one factor that makes that type of card good is that the credit lines are usually no more than $500.00. That low of a credit line is a good thing because worst case scenario your minimum payment is between $15.00 - $25.00. Not bad for establishing a credit line that will be worth dividends in the long run. Yes, it will benefit you as time is established behind the credit card. Credit building cards are only short term because once you have began to establish yourself with 2 - 3 credit building cards your score will reflect the responsible habits and your score will begin to rise. So are bad credit cards good, of course they are.

Whether you have good or bad credit cards the responsibility is the same. Make your payments on time and watch your credit limit to credit debt ratio. These two simple steps, if followed consistently, will keep your credit cards as the good benchmark for your credit score to be based from. I have only referenced your credit cards that allow minimum payments and not any other types of credit cards or other credit lines on your credit report. I have also not referenced the impact of derogatory items on your credit report that would affect the establishing of your credit. All cards have benefits and features that are advantageous to consumers or contain hidden value, even if the card does not seem very desirable. When you decide to get any credit card base it on your own financial need and on the advantages that will benefit you and your credit profile. Credit is life and life is credit, understand it wisely.
Article Source: http://www.articlesbase.com/credit-articles/all-credit-cards-are-good-212430.html

Strategic Benefits Are in the Cards: Credit Cards, That Is

Unlike playing the card tables in Las Vegas, the strategic benefits of a well-managed agent credit card program are proven and time-tested.

Community banks gain bottom-line revenue, stronger customer relationships, and a way to expand a bank's brand. Community bankers are able to realize these benefits by offering competitive credit card products.

There are two primary types of card programs: agent and direct. With an agent bank credit card program, the bank selects a cardissuing partner who handles all marketing and operations, and absorbs all the risks. The bank earns revenue based on results. In a direct card program, the bank is a direct issuer and is responsible for all marketing, operations, and credit decisions. The bank earns all revenue, but in turn absorbs all the risk.

In 2002, ACB Card Services selected InfiCorp Holdings, Inc. to offer the ACBInficorp Agent Bankcard Alliance as a turnkey agent bank credit card solution. Since that time, a number of ACB members have seen significant results.

"We have partnered with the great folks at InfiCorp for the past 18 months to offer personal credit cards to our customers," said Dennis Floyd, sales and communications manager for banking customer support at ACB member HomeStreet Bank. HomeStreet is a community bank based in Seattle with 20 bank branches and $1.75 billion in assets.

"Within six months of initiating the agent bank program with InfiCorp, we had over 1,500 credit card relationships. Previously, we had relied on one of the country's top volume credit card companies. In that five-year relationship, we had only 1,200 credit card relationships," he said.

"The folks at InfiCorp offer a competitive product and back it up with marketing sophistication and operational excellence," Floyd said. "They work with us as partners and are constantly suggesting ways for us to increase customer satisfaction and credit card usage. In 25 years of banking, I have used four agent bank credit card programs. No one can match InfiCorp for bottom-line results and client service," he added.

For many ACB members, now is the time to make a decision regarding the credit card program. Selecting the best strategic partner is critical-both in the short and long term. The decision is not just about the credit card program. It's about protecting your most valuable asset-your customer relationships.

InfiCorp is well positioned to support banks that plan to start an agent relationship, or those banks that want to upgrade their existing agent program. Competitive fee income is derived from a combination of new account originations and earnings from the portfolio. At the same time, InfiCorp is interested in purchasing quality credit card portfolios, enabling banks to sell their portfolio without selling their customer relationships.

The alliance is a partnership of mutual respect and support. ACB members maintain rights as brand owner with the authority to approve brand usage. Banks also retain control over access to customers. At the same time, ACB members have a relationship manager within InfiCorp who serves as an internal advocate.

InfiCorp provides non-compete protections and a contractual promise not to market other products and services to customers. Unlike so many other issuers, InfiCorp does not have a competing proprietary brand, nor does it support any other type of loan or deposit products.

Most cardholders use credit cards as a convenient lending vehicle, so they are focused on getting the lowest interest rate possible. Other cardholders are looking for more from their credit card-for instance, the opportunity to earn travel rewards or a cash rebate based on their spending.

"The InfiCorp Visa credit card program has allowed us to expand our product line within a turnkey program that is seamless to bank personnel," said Roland Bunnell II, a senior vice president at Framingham Cooperative Bank, an ACB member based in Framingham, Mass., with $302 million in assets.

"We searched for years to find a competitive credit card that we would be proud to put the Framingham Co-operative Bank name on. This program allows our customers to choose from a super low-rate program, a cash-back rebate program where they earn cash back on purchases, or the Rewards Passport program where they earn points redeemable for travel and merchandise with every purchase they make," Bunnell said.

Regularly scheduled mailings keep the credit card option in front of customers. For customers who already have a card, ongoing marketing presents promotional offers to attract clients who may wish to switch, Bunnell said.

Framingham Co-operative has a link on its Web site (www.framinghamcoop.com) for customers to apply for a card online or access information on their account through a Web site branded with the bank's name and logo.

"We are pleased with the results of being involved with this ACB-sponsored program," Bunnell added.

The ACB-InfiCorp Agent Bankcard Alliance helps institutions expand their franchise base, making it an attractive option for community banks.

Hudson, James "Strategic Benefits Are in the Cards: Credit Cards, That Is". Community Banker. . FindArticles.com. 26 Sep. 2008. http://findarticles.com/p/articles/mi_qa5344/is_200401/ai_n21343454

CREDIT CARDS

Credit cards make buying things so easy. The difficult part comes when the bills start rolling in and the interest rates keep adding up.

Drowning in plastic

If you have ever looked at the list of bankruptcies published in this newspaper, you know Kansans have a problem with credit cards.

Debt is crippling households across the country, and the worst form of debt --- credit card debt --- is on the rise. The average credit card debt per household in 2001 was $9,900, up 207 percent from 1991, according to a press release from Morningstar Communications Co.

At 18 percent interest rate, the interest expense on $9,900 credit card debt would be $1,782 per year, or $148 per month. Paying off that amount of credit card debt requires discipline because the minimum payment per month just won't get you anywhere. You will have to cut monthly spending and contribute at least $50 over the minimum, and stop adding to the principal every month.

The average American has 6.5 credit cards and devotes 14 percent of his or her take-home wage to paying off personal debt.

Stowers Innovations --- a Kansas City, Mo., based publishing house and forum for self-made billionaire James E. Stowers --- sponsored National Cut-Up-Your-Credit-Card Day last Wednesday.

For 24 hours, Americans were encouraged to put away their credit cards and pay cash only. If you missed the official observance, you still can designate your own date to do the same thing. If cutting up the cards is too painful, at least put them in a drawer for a day or week or month and see how it feels.

"Most of us have more wants than we have money," Stowers said in a statement. Stowers, who was a struggling mutual fund salesman in 1952, is today one of America's wealthiest men and a philanthropist. "Unless you prioritize your wants, you can easily fall into the credit card trap and over-extend yourself using credit."

Debt problems aren't just a problem among the poor and middle class. The Oct. 9 Wall Street Journal said wealthy families are piling on debt the fastest, largely because of increased borrowing against the value of their homes.

Stowers Innovations offered several ways to take charge of your credit cards:

--- Adopt a policy of cash only. No checks, no plastic. You will find it's a lot harder to turn over good old-fashioned paper money.

--- Recognize the difference between need and want. Needs fall in the line of food, clothing, shelter and health care. Just about everything else can be left at the store on the shelves.

--- Review your credit card statement. If there are items you forgot you bought or a series of small purchases, you are an incidental spender. Leave your credit card at home.

--- Contact your creditors. Tell them you need a lower interest rate. Most will accommodate your request rather than lose you as a customer.

--- If you use coupons at the grocery store, write yourself a check for the savings and apply it to your credit card balance.

--- See if your banker will loan the amount of your credit card balance at a lower interest rate than the credit card company is charging. Use this money to eliminate your credit card debt. Make a solemn vow never to fall into that trap again.

--- Don't get caught paying late fees. The average late fee has more than tripled on credit cards to more than $35.

--- Learn to pay yourself first. Every pay day, put money in a savings account, regardless of the amount, and leave it there. As little as $2 a day adds up to more than $700 a year.

Financial freedom doesn't just happen. It takes hourly, daily and monthly effort over long periods of time. But the rewards are profound. Imagine having no debt.

Capital-Journal "[ CREDIT CARDS ]". Topeka Capital-Journal, The. . FindArticles.com. 26 Sep. 2008. http://findarticles.com/p/articles/mi_qn4179/is_20021022/ai_n11789198

Goldfish credit card centre

BARCLAYCARD is axing 900 jobs at its Goldfish credit card centre and politicians are saying there's no loyalty to the Scots workers. Loyalty? This is a bank. They don't do loyalty - only billions in profits.