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

Beware Of Credit Card Scams

Please remember that each credit card has it’s own particular package of rewards with certain advantages and terms for their use, when you are searching for a credit card to fit your nees.You can quickly find yourself in deep debt with no quick or easy way out if you have no real knowledge of how credit cards work.Some of the nearly 100 credit card offers we receive each year are true offers of low interest cards but there are some that only offer you a perfect way to be parted from your own money.

Reguardless of what your credit standing is, there are some credit card companies who offer to let you use their credit card for a small upfront fee.At first it may seem to be a great deal, but the small fee is actually already charged to your small credit line on the card when you receive it and when interest is added immediately that small start-up fee becomes a large total balance on your first monthly statement.You will probably owe about 25% of your card’s total credit line and you haven’t even used the card to purchase anything.The people who do not know how to use their credit properly are at the mercy of some of the credit card companies who use them to make all of their profits.Certain policy terms may be used by some credit card providers to confuse uninformed credit applicants in the proper use of their credit so it is a very good idea to study the credit agreement for a hint of a scam operation.

The reason why most credit card companies offer debt suspension as a service to their customers is that some of their customers may be facing the circumstances of debt from unpaid medical bills or the loss of employment.A temporary suspension of payments on the card’s balance, until some other debt problems are resolved, is offered by the credit card company.For this service a fee may be added to the credit card’s balance but this seems to be taking advantage of someone who needs debt relief already>Credit card protection is offered for a fee by some independent agencies, but a major credit card company will usually protect the cards they issue from theft or loss.The credit card protection companies usually waste your time and money and offer little compensation for your losses.

We all need to be aware of the credit card scams used to commonly take advantage of unsuspecting consumers who have little knowledge of how they are operated.The things we all should be learning are the best ways to use credit and the best times to not use it.Although credit cards can hinder the management of our debt, they can also help a great deal when you have an emergency situation and no cash is available to ease the problem.

Credit card scams are there to take advantage of any of us who lets their guard down, so be on the alert when you are looking for a new credit card to use. Alisdair Cosgrove has been writing finance articles for many years and can find more of his work at the UK site CreditCardsWeb.co.uk, offering

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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

Universal default on credit cards?

Almost half of credit-card issuing banks surveyed by a San Francisco-based consumer group have universal default policies, which can lead to higher rates for cardholders who miss payments unrelated to the bank's credit card.

Citibank, Providian and Bank of America tied for the second highest default rate of 29.99 percent, according to the survey released today by Consumer Action.

Merrick Bank used the highest default rate -- 35 percent.

Jack Carsky, senior vice president for investor relations at San Francisco-based Providian Financial Corp., defended the practice.

"If people default on a payment or go delinquent on a credit card or on another bank's credit card, obviously the risk profile has increased. We look at it on an individual basis," he said.

"We do not use universal default," Bank of America spokeswoman Betty Riess said. Instead, the bank uses a "penalty rate, which is based on customers' behavior with their Bank of America credit card." The penalty rate is variable but can get as high as 29.99 percent, she said.

Janice Tarter, a spokeswoman for the credit card division of Citibank, said it recently changed its practice to provide consumers with a way to opt out from the higher rate.

"Before we increase the rate, we give the prior notice and explain why. We give the customer to right to opt out of the increase," she said.

Those who do so can continue to use their Citibank-issued credit card with the old interest rate until it expires, she said.

Both Citibank and Providian will consider lowering the higher default rate once a cardholder's credit situation improves.

The findings regarding universal default policies are included in Consumer Action's annual survey of the credit card industry released today.

"It's an easy way for them to generate more profit," spokesman Joe Ridout said."For a great deal of credit-card holders, this is something they could run into."

The survey, conducted from April 1 to June 21, examined credit card practices of 47 banks issuing 146 credit cards.

Ninety percent of banks with universal default policies raised a cardholder's interest when there was a decline in the credit score. Eighty-six percent raised rates after a late payment on a mortgage, car loan or other credit obligation.

One out of three banks with universal default policies set higher rates when a cardholder gets a new credit card, while 24 percent do so when an inquiry is made about a car loan or mortgage. (Percentages cited in the survey resulted from responses of customer service representatives).

"It's fundamentally unfair to cardholders. This is a policy that actually punishes the good customers. They don't even have to miss a payment," Ridout said.

Twelve of the 21 banks with universal default policies said the higher rates might be decreased after six months of improved credit but not necessarily back to the original rate, the survey found. Among the banks cited by Consumer Action that don't have universal default policies were American Express, Commerce Bank, Capital One, First Federal, State Farm and Wilmington Trust Company.

Other survey findings included:

- For the 146 cards surveyed, the average interest rate was 12.61 percent. The lowest rate for a card was 6 percent (charged by Ranier Pacific, Town Bank and Wells Fargo) and the highest rate was 24.94 percent (Merrick Bank).

- 95 percent have late-payment fees. The average was $27.46.

- 67 percent had no annual fees. Cards with annual fees imposed an annual fees of $43.27.

To get the survey, go to http://www.consumer-action.org and click on "Credit Cards." Or send a self-addressed, stamped (60 cents) legal envelope to Consumer Action-CC, 221 Main St., Suite 480, San Francisco, CA 94105.

Eve Mitchell can be reached at (510) 208-6474 or emitchell@angnewspapers.com.

c2005 ANG Newspapers. Cannot be used or repurposed without prior written permission.
Provided by ProQuest Information and Learning Company. All rights Reserved.

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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

Credit Cards For People With Bad Credit, Poor Credit Or Poor Credit Score

Bad Credit is a term used to describe someone who is considered a "high risk" to lenders and other finance companies such as factors.

People with bad credit you can still get a credit card. You'll just pay more as result of higher interest rate, and the terms of your card deal will be much stiffer than the average cardholder has to deal with. Before applying for Credit cards for bad credit let us understand what does bad credit really means and then we'll look into obtaining credit cards with bad credit

Credit - Understanding the genesis of bad credit.

It's very obvious that we now live in a credit world. There are lots of banking institutions offering different forms of credit from credit card to personal loans.

Because of lack of enough financial education and discipline on the part of most of these consumers they often find themselves in bad credit situations like court judgment, bankruptcy, and loan default which often make it difficult for them to get any credit at all in future. You may now want to ask - what exactly is credit?

Credit means that you are getting a service or cash grant to use for your own purpose. You are often bound with a contract or agreement to repay in future as agreed with lender or service provider. Credit exists in different forms like loan, mortgage, or credit card.

Before you can get credit from any financial institution or lending agency, they will first check your credit history. If you have default on loan before or have bad credit history you will find it almost difficult to get credit any time you apply for it.

However, it's possible for you to improve your bad credit history or build a new good credit history by repairing your bad credit, thus re-establishing your credit-worthiness. This process is called credit repair. It's the process in which consumers with unfavorable credit histories attempt to re-establish their credit-worthiness.

Though there are lots of credit repair companies nowadays that promises repairing your bad credit for you, but if you can follow simple guide, it's very possible for you to do it yourself - after all it's your credit.

If you repair your bad credit it will make it easy for you to get low interest credit, car or home loans. However, with poor credit rating you may not be able to get loan or be subjected to high interest rates and several other unnecessary conditions. So it's very important that you repair your credit if you have bad credit. You will get lots of tips on how to do this easily in this book.

Your credits score - how you can improve it.

Your credit score is a very important in any financial transaction that you make or intend making in future. So it's good you know what exactly your score is, understand its meaning and learn how you can improve it if it's not good enough.

"Many factors can contribute to a negative rating from the credit reporting agencies. Many factors like are non-payment of an account or late payments over an extended length of time, can contribute to someone getting a "bad credit" rating or poor score. Whether non-payment of an account is willful or due to financial hardship, the result can be the same, a negative rating. ... But there is hope to get credit cards for people with bad credit, poor credit or lower credit score"

Credit report - its effect on your personal credit

Credit report is a compilation of your credit history, past financial transactions and personal information possible. This report is usually compiled by accredited agencies known as credit reporting agency.

Credit reporting agencies are organizations that help credit card companies, loan companies, banks, and departmental stores in the country to ascertain the credit worthiness of their would be clients.

Once they have detail information from these sources, they give it to any organizations in need of it when requested. Though they keep on file information concerning you and your credit, they don't make final judgments as to your credit worthiness. The decision is up to the credit card companies or any lender which you are dealing with.

Credit cards: - types and what you need to know about them.

Nowadays, everybody wants to have at least a credit card. Everywhere you go you see adverts from various banks and other financial institution offering you credit card. However, before you apply for a credit card, there are several factors you need to consider. So it's very important that you know more about the types of cards available, and one that will work best for you.

Secured credit card: - A secured credit cards for people with bad credit requires a security deposit as collateral before you can get approval. Its type of card that best suit the need of people with no or poor credit who are trying to build their credit history. Your collateral must be equal or greater in value of the credit amount you are applying for.

With a secured card you put up your own money (into a savings account with the bank you are applying for credit card) and that amount (or part of it) is the credit line for your card. Put in $500 and you could have up to a $500 credit line. You can deposit anywhere from two hundred to two thousand dollars into an account, and that will be your spending limit.

This will give you the flexibility of using a credit card and because if you pay off every statement you are letting creditors know that you can handle credit (again) and your bank may soon begin extending your credit line beyond what you have put in. So you are on your way back to healthier credit, to a status where you will no longer need a secured card.

Business credit cards: - These are the card that's available for business owners, directors and business executives. They come with several features just like any traditional credit cards. You have to consider the terms and condition for these types of cards too before applying.

Student credit cards are another type of credit card specifically for students. These types of cards are made for students because of their lack of credit history, and if given chance they can build their credit history with such card.

Prepaid credit cards are set of cards that are just acceptable wherever the traditional credit cards are acceptable, but they are not credit card. You will have to always transfer money to your card before you can make use of the card and you may not be able to spend more than you prepaid for the card.

Presently this is almost the best card for people that want to avoid interest and other fees charged on traditional credit card and also for people with bad credit. However, other little charges like monthly fees, application; over the limit and ATM fees are still applicable, but these gets offset if you pay your bills via money order.

Whichever card you decide to choose make sure that you go over the terms applicable very well to avoid putting yourself in financial bondage. In second part of this article we will continue looking at other types of credit card.

Balance credit cards are unsecured standard cards designed to allow consumers to save money in interest charges by transferring higher interest credit card balance onto a lower interest rate credit card.

Low interest credit cards are other types of non secured standard credit card. They offer either low introductory APR that change to a higher rate after a certain period of time or a low fixed rate. You can take advantage of the low introductory APRs to make larger purchases for now and pay them off several months later. It wont be possible to get this credit card for people with bad credit

Air Mile Credit cards are cards that are good for people that travel frequently or planning to go on vacation. It's a form of reward card that allow you opportunity of obtaining a free airline ticket. You will need to accumulate specified air miles before you can be entitled to free ticket. All accumulated mile points will be based on dollar amount of your credit card purchases over a period of time based on predetermined point level.

Specialty credit cards are other set of standard non-secure cards designed specifically for individual business users and students with unique and special needs.

Make sure that you study the terms of any of the card that you pick very well to avoid risking your credit rating. Also, when you pick any of the reward cards make sure you study the forms and offers very well because credit card issuing companies do offer different reward programs and their promotional offers often change. So make sure you thoroughly look over the card's terms and conditions of each specific card before applying.

Article Source: http://www.articlesbase.com/finance-articles/credit-cards-for-people-with-bad-credit-poor-credit-or-poor-credit-score-172901.html

Secured Credit Cards

What is a secured credit card and how does it differ from regular credit cards and prepaid cards?
A secured credit card is an option for a person to build or rebuild his or her credit. Furthermore, a secured credit card provides the opportunity for consumers to gain access to certain services such as renting a car or hotel room. Secured credit cards differ from traditional credit cards in that a deposit is required to serve as the consumer’s credit line whereas with traditional credit cards, the consumer’s credit line is collateral free and based partly upon their credit and payment history. Secured credit cards differ from prepaid credit cards as well. With prepaid cards, there is no required credit history check and the consumer’s credit line is limited to what the consumer has previously paid, or loaded, on the credit card. On the other hand, a secured credit card requires its user to open a savings account which will serve as his or her credit line. The consumer will then continue utilizing the secured credit card as a traditional credit card; in the event the secured credit card user defaults on his or her credit card payment, the user’s savings account will be used as collateral.

What are the benefits of a secured credit card?
- Access to a credit card = Obtaining a secured credit card may benefit some people who have a tarnished credit history and therefore, have been denied by traditional credit card providers such as Visa®, MasterCard®, and American Express®. By gaining access to a secured credit card, a consumer has a whole variety of purchasing opportunities available to him or her, such as making online purchases, reservations, and features such as automatic bill pay.
- Improve your credit history= Once a secured credit card has been procured, a consumer now has the opportunity to make consistent, on-time payments. Just as important as making timely, in full payments, it is imperative to confirm with the secured credit card provider, prior to opening the secured credit card, that it reports to the 3 major credit bureaus (Equifax, Experian, and TransUnion) and that it does not mark the reports as a secured credit card. Having the secured credit card provider report positive payments to the bureaus without flagging the reports as a secured credit card is the main way that secured credit cards can improve your credit history and probably improve your credit score.
- Save and or earn money= A secured credit card requires its users to open a savings account that serves as collateral in the event the user defaults on his or her payments. If the user makes timely and consistent payments on his or her secured credit card, this savings account will not and cannot be touched. This is beneficial to the user because for the time that their secured credit card account is open and in good standing they will be saving the money. Furthermore, more than likely the money in that savings account will be earning interest, a net gain.

What are the disadvantages of a secured credit card?
- Upfront costs= In order to obtain a secured credit card, one must open a savings account to serve as collateral in case the user defaults on his or her payments. Therefore, funds are required to be available prior to procuring a secured credit card. The amount of money that is required depends on the bank or credit union with which the savings account is opened and the amount of money the secured credit card provider requires to be in the savings account. Additionally, some secured credit card providers have application fees.
- Hidden fees= While secured credit cards offer many benefits, there are fees associated with the usage of secured credit cards such as annual fees. Moreover, secured credit cards almost always have much higher interest rates than traditional credit cards, and thus, it is suggested to utilize them only for as long as needed or until one’s credit has improved. Additionally, some secured credit card providers hold on to the funds in the user’s savings account for a designated period of time after the secured credit card has been cancelled to safeguard themselves against any possible lingering charges. Therefore, it is extremely important to shop around numerous providers for a secured credit card.
- Hinder your credit history= Although secured credit cards may be beneficial to some people, if a user defaults on payments, especially past the amount being held as collateral in his or her savings account, it can tarnish their credit history and consequently lower his or her credit score.

In summary, secured credit cards may be very beneficial to its users by opening doors to new purchasing opportunities, improving credit histories, and saving and/or earning money if used appropriately. However, if a user cannot meet the payments of what they charge on the secured credit card, he or she may be worse off than in the beginning. Finally, if a consumer has decided to use a secured credit card it is imperative to shop around for the best deal, including but not limited to: non-flagged reporting to the 3 major credit bureaus, lower interest rates, lower annual fees, and inexpensive or no application fees.

If your serious about improving your credit score Contact CreditlawGroup at (800) 508-0041 our competent legal representation can help protect your rights and remove inaccurate, outdated, unverifiable, incorrect and other erroneous items from your credit report.

Article Source: http://www.articlesbase.com/credit-articles/secured-credit-cards-576606.html

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.