Archive for July 17th, 2010
How to Get Accepted For a Credit Card
Saturday, July 17th, 2010
Acceptance for credit cards will depend on your credit rating standing. If you have good credit then you are practically guaranteed to be accepted. But if your credit report is not as good as you would like it then you need to take action immediately. First of all you need to see a copy of your credit report. You can normally request one copy per year for free and this information is the exact same that a bank and credit card Company would see once they do a credit search on you.
If you have a bad credit rating then all is not lost. You just have to repair this credit. The most damaging item to find on a credit report is CCJ’s or County Court Judgements. These are given to you because you have failed to pay back some form of debt. It could be a credit card or loan but after going through the procedure of repayment for some reason the debt is still outstanding. This is the last resort for the banks who have tried everything else to recover their money so they are forced to go through the Courts. If you have these then you need to borrow money or make some extra temporary income and pay them off in full.
If you cannot wait for the credit report to look much better and you need a credit card urgently then you have a further two options. You can purchase a pre-paid card. This type of card is funded by you so you are guaranteed to be accepted. You can only spend the credit you have on the card so there is no chance of you getting into debt. These pre-paid cards are not just very practical but they also give your credit rating a boost because you are constantly funding and using the card.
If you want a standard type credit card then you are going to get hit with a very high interest rate because of your bad credit. You can still get accepted fairly easily but remember you are going to be financially punished every time you use your card. The interest rates on these types of cards are normally 30-40% so you need to not only use them wisely but you must always pay off the balance each month. If you spend 100 on the card then you will have to pay back 130 or even 140 depending on your credit card rate. These types of cards should only be purchased in an emergency and are not he answer to controlling your current debt.
There are many ways we can rebuild our credit history over time. We want to accumulate as many positive points as possible so our credit report can be transformed. This may take 6-12 months but the sooner you start the better. Try taking out store cards. These are again very high interest rate cards but you do not have to spend much on them each month. The key is to repay the amount back every month. Never go into debt with them. You purchase small items which are affordable and you pay back the balance each month. These regular repayments will look great on your report.
Contracts are also a great way to get back some credit report respect. Mobile phone contracts are easily available. Take out a 12-month contract. You get a new phone and you use it within the tariffs that have been set. If you overuse it you are going to get charged excessively. Just use the phone each month within the tariff and make sure you pay the bill on time. Do this for 12-months and you are rebuilding your credit report with minimum effort.
Credit card acceptance always reverts to your credit report. Have a look at yours and start to rebuild it using the steps above. In no time at all you will be back in good credit standing and will get accepted for most credit cards.
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About the Author:
Vilma has been writing articles for many years on a variety of topics. You can see her latest web site at http://www.walkingstickshop.com This is also a great resource for walking sticks accessories and supplies.
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Redeem Yourself With The Best Credit Card Reward Points
Saturday, July 17th, 2010Who doesn’t like to be rewarded? What better way than to be rewarded at the end of each month for being a loyal customer? Surely most of us wouldn’t mind, right? Well, at least that was the conclusion drawn by many companies when they launched their incentive schemes better known as ‘reward point programs’.
In a nutshell, reward points are redeemable points accumulated on your credit card statement when you use your credit card to purchase items. The more you spend, the more points you get. It seems like reaping the rewards has never been more exciting but there’s a catch. These incentives and rewards are also very effective in enticing their customers to splash out more. From the customer’s point of view the benefits gained can be easily dwarfed by the costs incurred. It may be tempting to pay that extra bit to get those points so make sure you understand your terms of agreements before joining the scheme.
The best way to make the most of your rewards is by simply taking advantage of them. So what’s in store for you? Anything from air miles and cash back rewards to discounted concert tickets but if you unsure as to what your points entitle you to simply go online or contact your credit card provider. It’s important that you make the most of such cards as the restrictions imposed can be costly.
Keep in mind that not paying your bills on time, delaying on your payments or exceeding your credit limit can disqualify you from redeeming your rewards. Not to mention the fact that rewards card usually comes with higher interest rate than regular one therefore it is recommended to pay off the balance before any interest collects. If it wasn’t enough to put you off reward points have expiry date too. The amount of time allowed differs from card to card but unredeemed points are not transferable to the next period and you will have to start all over again.
For those desperate to rack up more precious points every month, here’s a handful of suggestions. Why not to pay the utility bills by using your credit card? This way you can accumulate more points on your account without breaking your budget. Or perhaps you could ask your family members to make their purchases through your card and repay you in cash later? Remember that there are dozens of ways to ‘beat the system’ so get creative.
While the incentives can be tempting, reward point cards are not for everyone. You need to be sensible when using them. Making purchase after purchase only to accumulate reward points can put you into some serious debt problem eventually. If you manage to balance it out it can become a rewarding experience.
This article has been written for information and interest purposes only. The information contained within this article is the opinion of the author only, and should not be construed as advice or used to make financial decisions. Expert financial advice should always be sought and any links contained within this article are included for information purposes only.
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About the Author:
Andrew Regan writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
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Declined and Blocked – A Brief History of Credit Card Fraud Prevention
Saturday, July 17th, 2010The credit cards was invented primarily for allowing the consumer to have a hassle-free line of credit. However, the use of the credit has evolved from a simple once-in-a-while affair into something that is integral for most people’s lives. With increased demant, credit card companies have sprouted everywhere. Due to an increased level of competition, credit card companies were forced to innovate by adding features to the financial instrument, and fraud protection was born.
Fraud protection gives credit card users peace of mind because they will not be required to pay for transactions which they do not authorize. With this, the popularity of credit cards surged even more, so that it is almost always expected that every person should have at least one of them.
However, this additional feature is a major financial risk for card companies and it is thus normal for them to find ways to avoid unnecessarily financial losses arising from credit card fraud. Every year, banks and other credit card companies collectivly lose hundreds of millions of dollars to credit card fraud, and that minimizing this loss is tantamount to the financial viability of these intitutions.
Hence, credit card companies thus started to hire more financial analysts, statisticians, and various other risk experts to come up with models that can prevent this unfortunate occurence. With the aid of a sophisticated network of special computers and customised in-house computer programs, today’s credit card institutions can more effectively prevent credit card fraud by stopping then right before they happen.
All of these strategies boil down to pre-emptively blocking further use of the suspicious credit card until it has been confirmed that no fraud is present. Hence, it is essential for the user to let their credit card issuer know if they will be using the card for something that can be considered as out of the ordinary so that they can avoid extreme inconvenience
And thus, headaches were born.
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About the Author:
After a long day of writing, Sammi enjoys working in her garden. She purchases most of her supplies from her favorite, safe, and secure website, Garden Harvest Supply. In the spring she uses their garden seed planter to plant her tomato seeds, once they are grown she uses a foldable tomato cage to stake them.
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Chase the American Dream – The Three Best Ways to Salvage your Credit Score
Saturday, July 17th, 2010Everybody loves to chase the American Dream. However, the definition of the American Dream varies from person to person. But then, there is one common denominator among all those – the need for decent credit score. With a good credit score, one can easily buy a house, a car, any material possession in life. With a good credit score, one can easily help a loved one in distress. But what will you do if your credit score is so bad?
Credit is money owed. Hence, credit is supposed to be repaid. A credit score is a number than denotes one’s likelihood to do so. Yes, you may have gone through rough times. You weren’t able to keep some of your promises, so the banks frowned at you. Thus, here are the three best ways to salvage your credit score, your path towards the American Dream.
First, stop accumulating debt for the meantime. Your situation is bad enough; do not make it worse by sinking further into debt. Try to live within your means. As soon as you get a paycheck, set aside a small percentage (say, 10-20 percent) to pay off some your credit balance, and then find ways to make both ends meet with the rest. This involves a lot of will power, and you must be up for it.
Second, talk to the companies that you have owed money from. To talk to collection agents is annoying, but they are annoying because you are not willing to pay in the first place. Actually, when you call them and tell them that you’re in a fix, the two of you can usually find ways to make it easier to repay the debt. Sometimes, these companies can slash their interest rate on revolving balances, so that your debt will cease from ballooning any further.
Third, never accept or activate cards which were mailed to you “for free.” Do not keep to many cards in your wallet. Most of these cards actually charge maintenance fees that can rip you off, even if you don’t use them at all. Furthermore, you will have more temptations to deal with, thus making it harder to learn financial responsibility.
Are you up for it? You might as well be.
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About the Author:
Sammi loves gardening, and has found that growing her own vegetables saves her quit a bit of money. She buys most of her supplies at her favorite gardening website, Garden Harvest Supply. Some of her favorites from them are the American made cultivators and the handy little pest pistol.
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Credit Repair Back From the Brink
Saturday, July 17th, 2010Taking Control
No matter what your credit looks like today, there is a solution, a way to restore your credit scores and the health of your report. Credit repair is the answer. Credit repair offers an alternative to living with poor credit, a dynamic way to do something positive. Take the following steps and regain control.
Make Today the Day
Credit repair does not have to be a dream about the future. Put your feet on the path and you will find that the horizon is not far off. Good credit may be as little as six months away, a tolerably short time. Make the decision and discover the wonderful and liberating feeling that comes from doing something right for you.
A Small Investment
Start the credit repair job with a decent credit report. Saving money is important so do not misunderstand, but this is not the time to try to save pennies. Spend fifteen or twenty dollars on a credit report that will make your task easy. Tri-merged reports sold by the credit bureaus are wonderfully user friendly and will allow you to identify errors quickly.
Expect Trouble
The credit bureaus do a quite decent job, but most credit reports have errors. And if you have had late payments, charged off accounts, or collections, you are statistically much more likely to have errors than someone that has had no credit difficulty. The errors that are generated following real derogatory events can be very costly. Take the time to find everything that looks wrong and get ready to dispute it.
Keep it Lean and Simple
Once you have found all of the questionable issues on your report it is time to write letters to the credit bureaus. When it comes to credit repair dispute letters, it is a time tested fact that less is more. Make the letter clear, and include the important identifying information about the accounts, but do not tell your life story. A single line stating the nature of the problem and a request for correction is enough.
Credit Repair means Patience
The credit bureaus can be cantankerous. Some people even believe that a solid twenty-five percent of the dispute letters that are sent to the credit bureaus are either thrown away or systematically rejected without examination. To get the job done with minimal stress, try to relax, and plan to send your request a few times if necessary. If you get a verification letter stand your ground and demand that the bureau does further research.
Rebuild Simultaneously
While you are fighting the good fight with the bureaus, it would be wise to use the time constructively and rebuild your credit. One of the great secrets of credit repair is that new credit opened after troubled times is given enormous weight by the credit scoring models. Use this fact and open a couple of little secured cards right now. Your dispute process may take six months. By the time your reports are cleaned up your score will be looking fine!
Help is Near
If you feel overwhelmed by the situation there are many options. Credit repair companies are typically very affordable and can manage the complete process for you, including providing the advice you need to build and manage your new and existing accounts. These services are valuable and a great option to fixing your credit on your own. Time moves quickly, take action today.
Copyright © 2010 Ian Webber. All Content. All Rights Reserved.
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About the Author:
Ian Webber is an expert in consumer law and credit repair. Ian is a graduate of the London School of Economics and The University of Chicago where he earned his LLM. Ian consults with one of the leading online credit repair services and is currently based in Florida.
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Declined Again – Common Reasons Why Companies Block Credit Cards based on Transaction Cost
Saturday, July 17th, 2010Credit card companies block credit cards when uncharacteristic usage patterns are detected. As soon as a person uses a card for his first transaction, each succeeding transaction is recorded in an electronic database that determines the amount, location and frequency of the purchases. In this article, we will discuss, in detail, the two most common reasons why credit cards get blocked based on transaction cost.
First, companies block credit cards when the transaction cost is much more than what you normally spend. A credit card company’s fraud prevention system averages the amount of your past transactions and then predicts a range of values that your future transactions can fall into. Declined attempts often happen when one performs a transaction for stuff that are not purchased on a regular basis.
Suppose a credit card user spends an average of 20 dollars per purchase and he has used the card for years, and he has never gone over 100 dollars in any past transaction. If he tries to purchase a high-end notebook pc that costs two grand, something that he does only once in a couple of years, there is a big chance that it will be declined. Hence, notify the bank about the big purchase so that they can temporarily lift their thresholds.
Second, companies block credit cards when they are used in cross-border transactions involving relatively large amounts. This happens very frequently for purchases over 1500 dollars as per the provisions of the United States PATRIOT Act. This can be extremely inconvenient for people who need to do high-value but legal transactions, so it is best to let the card company know about what you use it for and why. This is all for the sake of national interest.
Fund transfers via credit card cash advances are the usual victims of this policy. However, it is understandable that a credit card user may have a child who lives or studies abroad that need financial assistance. However, proper notification to bank authorities is essential.
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About the Author:
Along with writing, Sammi enjoys raising her own vegetables. She uses Garden Harvest Supply as her main source for supplies. They have rain barrels for sale and the hard to find vegetable seed planter which is a tremendous help when planting!
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Declined Again – Common Reasons Why Companies Block Credit Cards based on Transaction Location
Saturday, July 17th, 2010Credit card companies block credit cards when uncharacteristic usage patterns are detected. As soon as a person uses a card for his first transaction, each succeeding transaction is recorded in an electronic database that determines the amount, location and frequency of the purchases. In this article, we will discuss two most common reasons why credit cards get blocked based on location.
First, companies block credit cards when transactions show up in a location that was not previously registered. This happens most often when a person has a long history of purchases that are confined in a well-defined geographical area, and then a transaction pops up somewhere else.
Suppose a credit card user lives in Los Angeles and he has used the card for years, only within the boundaries of that city. If for some reason, a New York-based transaction registers in the database, the card gets automatically blocked. The system thinks that the card was stolen from the authorized user, shipped somewhere else, and fraudulently used there. Hence, if a user will travel, it is best to inform the credit card company beforehand.
Second, companies block credit cards when they are used simultaneously in two distinct locations that are very far apart. It is assumed that a single card is not supposed to be swiped miles apart at almost the same instant. It is physically impossible for the user to be in two places at the same time unless he is a superhero, which is often not the case.
This happens a lot when a credit card user is has memorized his credit card information as per his continuous use of it for year, and then he lends it to a loved one or a trusted friend for use in some other place. As the auxiliary user swipes the card in a remote location, the original user could have manually entered the card information in a point-of-sale machine.
Everything goes haywire at this point. To avoid this, call your credit card company so they can add authorized users into your account, and thus issue a separate card for them.
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About the Author:
In addition to writing online articles, Sammi loves working in her vegetable garden. While using trellis netting to keep her veggies off the ground, she uses st. gabriel organics to keep the mosquitos off herself!
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RBI raps banks for rising credit card complaints
Saturday, July 17th, 2010In a new move to push banks into becoming more customer-friendly, the Reserve Bank of India (RBI) has asked them to reduce the number of complaints related to credit cards.
Warns of monetary penalty for violating norms
At a time the number of credit cards in circulation is starting to go up again, RBI today said the offices of the banking ombudsmen continued to receive numerous complaints from credit card holders. RBI has said that penal action, including a monetary penalty, may be taken if banks fail to follow the guidelines on credit card operations.
The complaints received are regarding excessive charges, issuance of unsolicited credit cards, unsolicited add-on insurance policies and recovery of premium charges, charging of annual fee in spite of the customer being told that the card is free, billing, offensive calls and poor response from call centres, among others.
RBI also said that banks should prescribe a ceiling rate of interest for credit cards on the lines of the ceiling rate (including processing and other charges) for small value personal loans.
“The fact that a higher interest rate is being charged to the card-holder on account of his payment/default history should be made known to the card-holder,” said the central bank.
Credit cards issuances, which fell for 18 consecutive months till March, rose about a million in April to 19.29 million.
In the last financial year, 6.4 million cards were culled. The country’s credit card number fell to 18.28 million as on March 31, from a peak of 28.3 million in April 2008, according to RBI data.
HDFC credit card base of 4.45 million on March 31, is issuing 80,000-90,000 new cards a month, while SBI credit cards is adding about 20,000 cards a month.
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About the Author:
Working with a WRS Info India Pvt Ltd.
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