Credit Repair services » Credit Rating

Credit Cards: Pros and Cons

admin — Sat, 17 Apr 2010 10:40:58 +0000

Sure, there are a lot of problems with credit cards, but there are a lot of good things attached to them as well. For instance, if you have a small business, fleet credit cards can keep your books in order when you issue them to drivers of company vehicles for gas and automobile repairs. On the other hand, it’s very easy to abuse department store credit cards. And it’s easy to have too many credit cards open at once.

Credit cards can be great for keeping your business in order; fleet credit cards are a tool you should use. With fleet credit cards, you can keep close watch on the expenses of your automotive fleet while building your company’s credit rating by paying off the card regularly; and because the cards are of limited use, it’s difficult for less-than-honest employees to abuse them. Company credit cards are also handy for keeping tabs on small expenditures, such as office supplies or luncheon meetings. But there’s a dark side to credit cards. When you start to slide into credit trouble, it’s often easier to get department store credit cards; and having too many department store credit cards can lead to missed payments and bad credit.

You don’t have to keep a balance on credit cards for it to count against you in your credit rating; instead, having a large amount of money available to use for credit can harm your application for large loans. And having several credit cards available to you makes it easy to either use too many credit cards for too many things, or to use the wrong, higher-interest credit card for your purchases. Either of these bad choices can cost you money and points against your credit rating.

Instead of doing this to yourself, only keep the credit cards you actually plan to use. With small businesses, issue credit cards only to trusted employees, and check the statements yourself. With wise use and proper oversight, credit cards can be a real asset in your professional and your personal life.

By: Jeffrey Altmire

Instant Online FICO Score Credit Rating

admin — Fri, 16 Apr 2010 08:59:43 +0000

Your FICO score is the same as your credit score. It ranges from 300 -850, the higher the FICO score the better. This means that a higher FICO score makes your financial reputation appear less risky to banks, resulting in you higher chances of lower interest on your loans. This rating is most frequently used when clients apply to a bank for a mortgage. Having a higher credit rating will allow you to receive better interest rates and terms on your loan.

An average FICO score is from 700 to 720, if you are within the range then more banks would approve your loan. The computation of your score is based on your payment history, current amount of debt, length of financial history, number of consumer credit cards, and whether you have defaulted on any previous debts. As mentioned a previously, the range is from 300 to 850, and anything below 600 is considered to be a bad credit history and scores higher than 600 are usually viewed as a good credit line.

Because the Internet is a place of endless possibilities, you can now receive your FICO score through several different websites. This is excellent news to anyone who is curious about their own credit history, especially if you suspect you may need to to improve your financial reputation. All you need to do is make a request from an online credit bureau to receive your credit report. This will give you the chance to look over the contents, and check for any errors, fraudulent activity such as identity theft, and out of date information.

By: Zach Ford

Bad Credit Credit Cards – Pros And Cons

admin — Wed, 14 Apr 2010 18:58:44 +0000

In modern society, many people have adopted a buy now and pay later mentality about purchasing. This has caused problems for many people when they fall on hard times and are unable to pay their bills. This problem has come to the attention of some lenders who have developed a range of bad credit credit cards to accommodate people who fall into this financial category.

Bad credit credit cards have benefits for both the lenders and the consumers. Lenders have noticed the potential to charge higher interest rates, raise fees and increase profits making this business very lucrative for them. These cards help many customers to increase credit score and have returned purchasing power back to those who otherwise would have no other options.

There are many types of credit cards for consumers to choose from like prepaid, secured, and unsecured. Prepaid cards are generally just a debit card where the consumer is able to deposit his or her own funds. These cards have no effect on credit score and are not reported to credit agencies. As convenient as prepaid cards are to have, they are not helpful in rebuilding your credit.

When trying to rebuild your credit, think about secured credit cards. These cards are secured by funds that you deposit in to a savings account. This protects you the consumer from getting in over your head, and also protects the credit card company to know that they will receive the funds if you are unable to pay your debt back. These companies will typically report to a credit agency.

Having trouble establishing credit? Bad credit credit cards can be your answer. They are frequently unsecured, but have a higher interest rate and fees for late charges. Keeping your payments paid will not only increase your credit rating but will also raise your credit line which more often than not starts at around $500.

Customers should decide carefully when choosing a credit card. Be sure to find a card that suits your current needs and that also has terms and conditions that are favorable to the customer. Check your online credit score regularly to ensure that your score is being correctly reported.

By: Daniel Lesser

How Long Do Late Payments Stay on My Credit Report?

admin — Wed, 14 Apr 2010 10:38:10 +0000

Late payments do affect your credit rating but what most consumers don’t know is that it also depends on how late your payment is made to the creditor. To start with, late payments that are made to creditors but are no later than 30 days late are not reported to the credit bureaus. So for instance, you have a credit card payment that is due on the 1st of January and you are not able to make the payment until the 27th of January.

This is considered late with the credit card company but will not show up on your credit report as a late payment. It will not show on your credit report until you are more than 30days late and it will show as a “1-time 30day late payment”.

These types of late payments usually affect your score and can have a lasting effect for about 12 months. The same goes with other types of accounts such as car payments, mortgage payments, personal loans as well as secured loans.

Even if the payment is a couple of days late, the best thing is to try and make sure it does not go beyond the 30-day point. It is also important to note that these late payments can cause your interest rate to rise on your credit cards.

This may be the case even if you are only 1 day late as opposed to 20 days late. This will vary depending on the credit card company you are dealing with. You want to check with the your creditor to find out their exact policy.

By: Tony Banks

Poor Credit? Bad Credit? I Still Need a Credit Card!

admin — Sun, 11 Apr 2010 10:17:28 +0000

In many instances, through no fault of our own, we get a less than perfect credit rating. We can lose our jobs, have lay offs, have an unexpected medical emergency and find ourselves in a tight spot. These situations and numerous more are common to so many today. Do not give up! Any one can recover and get a good credit rating. There are many credit cards that can help you recover a good credit rating. Here are a few tips on how to achieve that goal.

1. When applying for a card read the fine print.

2. Check the annual fee. Some cards have a fee and some do not. Compare offers and try to get a card with no fee.

3. The APR can sneak up and bite you. This is the interest charged so be aware of what will happen if you carry a balance.

4. Use discipline when using your card. Charge items that you will pay for in your regular budget. Then pay it off at the end of the month. Remember, your goal is to reestablish your credit. According to the credit bureaus this on time payment is very important.

5. Secured cards are a good option. These cards are secured by a deposit made by the card holder into an account specifically for that card. These cards are also great for first time card holders with no credit or students.

6. Some cards have maximum limits. Some as low as $200, Rebuilding your credit will take some time so be patient.

7. Be sure to check the annual fee charges. If your maximum limit is only $200 and your annual fee is $100 it may not make good sense to apply for that card.

There are many offers to choose from but be aware of the fine print. Use common sense to make decisions about your choices. Be a disciplined purchaser and use the opportunity for your benefit.

By: William Sears