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

Drawbacks Of Not Having A Credit Card

There are very few things that are as ubiquitous as the credit card. This little rectangle of plastic can give us so much convenience, but to the unwary can also bring so much misery. Credit cards may be the easiest way to get a standby line of revolving credit, always available when you need it, but it can also be the fastest way to get mired in credit card debt. People may complain about credit card debt but everyone agrees that despite the risks, there are too many drawbacks to not having a credit card.

Credit cards as we know them today are relatively new and are continuously evolving. The major laws protecting consumers' rights involving credit were passed in the mid-seventies. It may be timely that Congress is currently considering added measures to enhance consumer protection. Yet, for a long time, people were using credit cards as a convenience product rather than as loans. Many people paid their entire balance each month. Credit cards were not as essential then as they are now.

Banks do not make money if people did not carry balances since a grace period for purchases, where no interest is charged for one month, is usually standard. As far as banks are concerned, the best credit card customer is one who carries a balance each month after remitting the minimum payment on time. Credit card issuers got really creative and have managed to make credit cards a necessary part of daily living. They worked to have credit cards accepted in more and more establishments, and to have credit card holders understand the many benefits and conveniences that they stood to gain from using their credit cards.

In our times, credit cards no longer a luxury. If you travel, you need your credit card to book flight reservations and reserve hotel rooms. You also need credit cards to rent cars, to purchase gas, and buy products by telephone or online. Being without credit cards today would make your life as difficult as traveling by horse and buggy. Without our even being aware of it, credit cards have become a business standard.

A credit card is one of the quickest ways to build a credit history. When you apply for a credit card and you still have no history, there are credit card issuers that you can approach. These issuers specialize in providing credit card products to customers who, because they are still attempting to establish or expand their credit history, are generally evaluated as higher credit risks. Many college students, for example, fall into this category, along with those who have limited employment income, or otherwise have poor credit history.

Today, having credit is a necessity. An inexpensive, reliable new car costs thousands of dollars, and although most people may want to pay in cash, the reality is they will need a loan. The rates and terms of that loan will be determined by your credit history, which is easily obtainable from the credit bureaus throughout the country. If you have used credit wisely in the past and repaid previous loans on time, you will be in a favorable position. If not, the result will be a more costly loan with higher interest rates.

The use of the credit card as a source of loans is illustrated by the fact that overall credit card debt now runs several hundred billions of dollars. Credit card debt has risen quickly to unimaginable proportions, and still banks continue to compete heavily for your business. Every year, billions of credit card flyers with invitations to transfer to another card issuer are sent out. The average American credit card holder is now in possession of almost a dozen credit cards, with average debt of $13,000. The credit card has indeed become a cornerstone of everyday living. Other than its necessity in making flight and hotel reservations, credit cards help the credit card holder with:

• "Cashless" transactions that avoid the risk of carrying around too much cash
• An interest-free loan from the time of purchase until the payment is due
• Cash advances from an ATM, in emergency cases
• The ability to shop by telephone or online
• The ability to purchase items when cash is not sufficient
• The ability to withhold payment when dissatisfied with a purchase or to dispute erroneous billings
• An instant source of credit that is available without filling out forms or undergoing further credit checks.

Cash, when it gets lost, is irretrievable; unlike cash, if you lose your credit card you can get a replacement no matter where you are. You also get protection against fraud or unauthorized use, which means you have minimal or even zero liability. Credit cards can be a resource in case of emergencies, such as a large car repair bill or an unforeseen expense.

Credit card companies normally provide the card holders with copies of their monthly statements. These statements list down in detail all charges that have been made against your credit card account. The monthly statements can thus serve as a complete financial record which, to the prudent credit card user, can become a guide for budgeting and controlling expenses. If the card user is a student, the monthly statements can become a tool for learning financial responsibility. Indeed, for personal finances and small businesses, credit cards have become a necessary financial tool.

There is also the prospect of being able to save money on future transactions because the usual credit card offers a number of rewards privileges that include frequent flyer miles, cash rebates, discounts or free telephone calls, points that go towards reduction of the cost of airplane tickets and hotel stays, points that can be redeemed as consumer products or gift certificates. All of the major credit cards - Visa, MasterCard, American Express - offer a multitude of card products with endless permutations on rewards, benefits and privileges that you can enjoy to maximize the value you get from your credit cards.

Ownership of a credit card entails certain responsibilities on your part. If these responsibilities are not exercised dutifully, you could unwittingly put yourself in a difficult situation where you lose your credit card privileges and suffer the drawbacks of not having credit cards. Your primary responsibilities as a credit card holder include the obligation to pay your bills on time, to stay within your pre-set spending limit, and to maintain the worthiness of your credit.

The convenience of having credit cards may tempt you to live beyond your means. You need to remember that excessive credit card debt and late payments will impair your credit rating and make it more difficult and costly to obtain credit in the future. Remember it is very easy to lower your credit ratings, but painfully slow to raise it.

It is now more important than ever to be effective at managing credit card debt. This is particularly true for people living from paycheck-to-paycheck and who must dip into their credit sources to make ends meet. If you are able to plan your credit spending and payments to your account, you will be rewarded with higher lines of credit and better rates. Otherwise, if you're not efficient and disciplined with your credit card, you'll have very few options available.

Article Source: http://www.articlesbase.com/finance-articles/drawbacks-of-not-having-a-credit-card-232275.html

Online Credit Card Application: The Fastest And Most Convenient Way To Get A Credit Card

Thanks to the advancement of technology, particularly the internet, people now has a way to communicate cheaply, and even do some shopping. In fact, applying for credit cards is now possible through the internet. You will see that applying for a credit card online will be much faster and easier than ever before.

Online application for credit cards means no more hassles of visiting credit card issuers, such as banks. All you need to do is go to their website and fill out the application form.

Although this may sound easy, the hard part in applying for a credit card is still getting an approval. Of course, you still need to consider your credit rating in order to make sure if your application will be approved or not. If you have a good credit score or credit rating, you will have an easier time when applying for a credit card online. So, before you even think about filling a credit card application online, you first have to make sure that you have a good credit score.

You also have to consider that you need to know about the different offers of different credit card companies. Even if you do have a good credit score, you still have to know about the different features of the credit card you are trying to apply for. There are several factors you have to look for in order to make sure that you are applying for a good credit card.

The first and perhaps the most important factor thing you should ask about is the annual percentage rate or the APR of the credit card. Even if the credit card is offering low interest rates and zero annual fees, you should know that the APR is the determining factor on all the different fees that is related to the credit card, which will include cash advances, late payments and even your monthly bills.

Also, you have to remember that there are spywares circulating in the internet today and fake websites as well. Make sure that you don’t visit just any website on the internet that is suspicious-looking. Always remember that you should always visit websites that are legitimate. To make sure about a certain website, you should try and call the credit card issuer and tell them you are interested in applying for a credit card online.

You should also make sure that your computer is free from any spyware. To do this, you should get the latest and the most reliable anti-spyware software available. By doing this, you will protect yourself from identity theft or fraud.

As you can see, the risk of identity theft is also present when using the internet. So, make sure that you don’t provide any financial and personal information if you don’t have any anti-spyware software installed in your computer or you are not sure about the website.

With all the necessary security measures, you can be sure that your application for a credit card online will be fast, easy and convenient. Just make sure that you should first shop around in order to get the best credit card offers possible.

These are the things you have to remember when applying for a credit card online. Always remember that security as well as knowing what to look for is very important when applying for credit cards online.

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Pay With Credit Cards for Maximum Security

When you make purchases, it’s easy to swipe your credit card for the sake of convenience. But convenience isn’t the only benefit that credit cards offer. Did you know that when you buy goods and services with your credit cards, you’re actually using one of the most secure payment methods available? Let’s take a look at some of the safety benefits of buying with plastic.

First, credit cards offer fraud protection. If identity thieves came into possession of your credit card number and used it to make fraudulent purchases, you’ll be taken care of. The credit card company will refund the unauthorized charges.

Have you ever been disheartened because you purchased an item that went on sale the very next day? Some credit cards offer price protection. If you purchased your item with a credit card and see it on sale for a lower price, just provide proof of the new price to your credit card company. If they offer price protection, they’ll refund you the difference. Most Chase and Citi credit cards come with price protection.

When you shop with credit cards, you’ll never have to spend money on extended warranties again. Just buy an item with a regular warranty, and your credit card company might allow you to extend that warranty for a year – for free. American Express and World Visa offer this service.

What if you buy something that’s not quite right and you need to return it? If you paid in cash, you’ll have to show a receipt in order to get a refund. But if you bought the item with your credit card, all you need to do is show the merchant your credit card statement. Then they will have documented proof that you made the purchase at their store, and your refund will be forthcoming.

Online shopping has surged in popularity. Unfortunately, when we buy things online, we can’t test out the merchandise before we make the purchase. If you end up with a defective product from a seller who doesn’t offer refunds, don’t despair; your credit card company’s got your back. They’ll reimburse you for the transaction if you report the faulty goods within 30 days.

What if someone steals or damages an item that you purchased with your credit card? No worries. Besides the protection they extend for fraudulent purchases, credit cards also offer item insurance. Their coverage can extend into the tens of thousands of dollars. Gold and Platinum cards offer more insurance than regular credit cards. Just be sure that you have proof of your purchase as well as a well-documented account of the theft or damage incident. Include dates, details, and witness statements if applicable.

Many travel credit cards also guarantee your reservations for hotel rooms or airplane tickets. If something happens and the airline goes bankrupt, you’ll be refunded the cost of your tickets.

Credit cards vary, so be sure to read the fine print contained in your agreement. It will spell out the details of the safety benefits you can expect.

Article Source: http://www.creditorweb.com/articles/pay-with-credit-cards-for-maximum-security.html

Turn the Tables- Let Your Credit Cards MAKE You Money Instead

If you’re tired of credit card companies making money off you (interest, finance fees, annual fees… etc), why not use your credit cards to make you some money instead? Sound impossible? Here’s what you can do:

• Find a credit card offering 0% interest on cash advances for 12 months OR;
• Find a credit card with 0% interest on new purchases for 12 months, and then use your Paypal account to process a credit card payment like a purchase (essentially, you are charging the credit card and the money ends up being placed in your Paypal account as cash, but without a cash advance fee)

With this 0% interest money, make a deposit into a high interest savings account or a 6 to 12 month CD (FDIC insured) , like one of the following:

• ING Direct
• Capital One Direct Banking
• E*Trade

Deposit as much as you can take from your 0% interest credit card and let it earn interest for the full 12 months in the high interest savings or Certificate of Deposit. During the year, make the minimum payment required on your credit card (you aren’t paying interest, so this is ok!) and before your 12 month promotional interest free offer ends, withdraw money from where you deposited it to pay back the remaining balance. The money that remains is what you’ve earned from the credit card.

Deposit $10,000 in a 5% interest account for 12 months, and you’ll make about $500 off the interest. Re-invest the $500 into a new Certificate of Deposit, or keep it the high interest savings account to grow more; and you can look for a new 0% interest offer and start all over - only this time you’ll have the extra money you earned from the last time to include with your deposit!

Women's Credit Card - How to Get Best Credit Card in No Time

Have you ever wondered why you get credit card offers in mail when you have not even made a request for it. If your name and address is in public information system than by now you must have received many credit cards offers. Each giving better offer than other competing credit card company.

With so much information to process will lead to confusion and wrong acceptance of credit cards. Choosing a right credit card is a daunting job, it needs careful analysis and close scrutiny of fine points written in small fonts. Special attention should be given to credit card rates, when new higher rates will apply. Give importance to reading terms and conditions of credit cards. You will get new understanding of how credit cards work. Before you start applying credit cards you need to know few important terms used in credit card. By knowing these terms will help you applying for a correct credit card.

Credit Cards

As you know small plastic card known as credit card is in dimension of 85.60 X 53.98 mm. As the name suggest you get moneyon credit or you buy things in market on credit. The credit card differs from Debit card because when you make purchase by using your credit card it doesn't remove money from your bank account. where as when you do purchase using Debit card it removes money from your bank account after every transaction you make.

When you make transaction using credit card the credit card company lends money to merchant where you did shopping. Usually you get one billing cycle money on credit without any interest being charged to you.

All is required from you is to pay full balance before due date to avoid interest charges. In case you have made big purchase which you can pay in full in one month, try paying off balance as soon you can to avoid more interest charges.In case you are not able to pay money back to credit card company please ensure you pay at least minimum balance required by due date. Usually this amount is little and it helps you to keep your account in good standing. Ideally this option should be avoided as it will pile interest amount on your borrowed amount and in no time your borrowed money will start swelling.

Credit card company issues credit card to user after his/her request for application has been approved.

Every credit card compnay will set credit limit for each customer based on his/her credit strength

The credit card user will make purchases by using issued credit card.

The credit card on average is in dimension of 85.60 x 53.98 mm

Every credit card has number written on it by which your account is identified.



Some of the known credit card companies: Chase - Bank of America - Citigroup - Wells fargo - American express - discover etc. Practically every major bank issues its credit card to users.

When you make purchase at any merchant you sign a small receipt acknowledging you will pay same amount to your credit card company.

Few of the transactions can be done over phone, such as airlines and hotel booking, by giving your credit card number and expiration date etc. Please be care full when making such transactions. Ensure you do such transactions with trusted parties.

Almost all merchants or store owners have credit card verification system, while you swipe your card for payment it is checked in background for fraud or missing card status.The credit card payment terminal or Point of Sale (POS) system helps store owners to do verification with issuing credit card companys sytem.

The security code of credit card is printed on back of credit card.

Each month credit card company will send monthly statement to credit card users. The statement will include details of transaction made by credit card user. The important details will be visible such as day of transaction, merchant's name, amount paid etc. This information helps you to cross verify purchases made with amount charged on credit card.

The credit card statement also gives other information such as billing cycle, due date (payment date), total balance and minimum payment you can make.

The grace period is the number of days to make payment back to credit card company from the day he/she made purchase.

The credit card companies form associations and many bank become member of these credit card associations. The known associations are VISA, MASTERCARD,DISCOVER, AMERICAN EXPRESS etc.

Electronic transaction processing network, which allow electronic transaction to work through secure system. Following are few companies which are in this business. NDC Atlanta, Nova, Cardnet, Nabanco, Omaha, Paymentech, Vital, VisaNet and Concord EFSnet.

Secure credit card: Some credit card companies issues secure credit card after applicant has deposited 10% of credit limit into his/her account. This type of account is for new users with very little credit history to show.

Pre-Paid Credit Card: This is not really a credit card, because no amount is borrowed from lender. This type of credit card is used by students when their parents deposit required amount into account for their shopping. This type of credit card comes with VISA/MASTECARD logo thus is called pre-paid credit card

Security of credit card is dependent upon the number on credit card. Few merchants will allow certain types of sale by just getting credit card number. Ensure you don't compromise security of credit card.

You can also withdraw money through credit card at ATM's using your secure pin number

Annual percentage rate (APR): Learn what is APR and how it is calculated.The annual percentage rate is the interest you will be paying on borrowed money to lender.

The APR rate applicable to your account will differ from the rate which was given as introductory, partly because of few month introduction rate and other fees get added to final interest calculation.

In simple terms APR is monthly interest multiplied by 12 months will result in annual APR rate. This assumes there is no other fees involved.

Balance transfer: Why would you transfer debit amount in your credit card to other card. the reason could be better interest rate and terms. some of the credit card companies give introductory offers such as no interest on balance transfer for 6 months to 2 years.

These offers are good when you are paying high interest rate or you have high balance on credit cards and you are looking for cooling period to fix your debits.

How important is to protect your Credit Card

This small plastic card which you carry in your wallet is very precious more than your jewelry you wear on your body. The security of credit card should be taken very seriously. Once your credit card is stolen, your account information is known to others, it will take good time before you will get those charged removed from your account.

Meanwhile your credit rating will take hit if there is big charge on your credit card and you are not able to settle those charges. take every effort to safe guard security of your on-line identity and security of credit card.

Few security tips: Always keep your credit card in secure place when not using.

Never reveal your credit card numbers to others.

Try to avoid giving your credit card information on phone.

Any loss of credit card should be immediately informed to issuing credit card company.

If you are using on-line access to check your credit card account, please use secure methods to protect your identity and credit card etails.

Install "fire wall" and good virus and spyware scanner on your omputer.

Change your on-line account passwords periodically.

Never use public computers to access on-line accounts.
Article Source: http://www.articlesbase.com/credit-articles/womens-credit-card-how-to-get-best-credit-card-in-no-time-362358.html