Everything About Credit Cards

When you apply for a credit card it is important to note that there are two different types – secured and unsecured. An unsecured credit card requires a certain credit score and credit history. Most of the offers that come in the mail are for unsecured credit cards. A line of credit is issued, up to a certain amount and the recipient can spend it as needed.

If you have no credit history at all or you need to improve your credit scores, a secured credit card can help. Instead of just getting a regular line of credit, you provide the bank with a deposit. For whatever you pay, you are given access to between 50 and 100% of the deposit. Many people look at a secured credit card much like they would a pre-paid debit card.

One of the benefits of a secured credit card is the ability to build up your credit score. When choosing a bank or company to work with, be sure that they report to the credit bureaus. Without the reporting, there is no way to build or improve upon your credit score. It will take time for the reports to be issued and you want to show a real consistency for an extended amount of time.

Unlike a pre-paid debit card, you can`t depend on your deposit to cover the charges to your card. You are still required to make payments and pay off the amount that you spent. The key is to only make purchases that you know you will be able to pay off. As payments are consistently made on time your score improves. Eventually you may be able to turn the secured credit card into an unsecured credit card account.

Before signing up with any company for a secured credit card you need to make sure that you read all of the information provided to you carefully. You already know that you want a company that will report your good credit choices to the credit bureaus, but there is more. You also want to shop around for a company that charges reasonable rates.

You can expect that it will cost you more to set up a secured credit card than it would an unsecured card. At the very least the interest rate is typically higher. There will be an annual fee and if you are late or miss a payment entirely, the fees will add up quickly. In some cases, depending on how much of a deposit you gave, it can wipe out the deposit completely. If possible, send your payments in on time to avoid overwhelming fees.

Over time your credit score will improve. If the company or bank you are working with offers you an unsecured credit card you can transition over your account. If the company does not offer this type of transition, you should be able to find another offer from a different bank or company.

If you are interested in obtaining a secured credit card, take the time to shop around for the right company to work with. As you work to repair your credit and pay off the existing debt, use a loans calculator to see just how much your debt is costing you and what type of changes you can make. For further help with loans calculations visit
http://www.simplyfinance.co.uk/calculators/personal-loan-monthly-payment-calculator.html

With the US unemployment rate hovering around 10 percent, federal government along with several states are now contemplating to ban employers’ right to access credit history of job applicants. While some argue that applicants with bad credit are always stuck in the same vicious circle because of their inability to get a reputable job, there are others who claim that credit checks give employers an indepedent outlook on the financial reliability and qualifications of the job applicant. 

<b>Supporters of the Ban</b>

Speaking in favor of the ban, National Consumer Law Center’s Staff Attorney, Chi Chi Wu, mentions checking the credit history of job applicants to be an absurd practice, especially during the recession when 15 million people were unemployed. Credit checks in such dire circumstances is like “kicking someone when they are down,” Wu said.

It is a vicious circle. Candidates need good credit to land up with a job, however since they have poor credit, they cannot get a job and repair their credit. So, they are trapped with bad credit.

It’s quite a ridiculous scenario, retorts Lauryn Beer, who is an Oxfor Graduate along with a degree in law from Georgetown University, and has been a victim of such a situation. She emphasises how such method of hiring is actually negating the consideration of the capability of a job candidate to perform the job in question, in leiu of their credit rating. Aggravated with her struggle, Beer started with her own blog few years back discussing the loopholes of the credit reporting industry.

<b>Employers’ Take</b>

On the other hand, employers refute this proposition, arguing that credit checks give them an objective perspective on qualification of potential employees, when many companies shrink from providing any negative reviews on employee performance for the fear of getting sued. 

Another counter point provided by employers is that only 13 percent of employers check credit history of all job applicants, as testified before the Equal Employment Opportunity Commission by Christine V. Walters, a HR expert. Credit checks are primarily utilized to hire for executive, financial and other similar positions. Consequences of hiring the wrong applicant can cost a great deal to a company, in terms of both safety of work environment as well as the financial losses that the company may have to bear, he says.

Although credit check is only one aspect of evaluating a job applicant, but it is definitely very useful in hiring the right candidate. It’s a good proof for an employer to determine the prowess of a candidate in handling money.

<b>Final Verdict</b>

Around 16 states are now considering to restrict the <a href=”http://www.freecreditreportsinstantly.org/”>credit report</a> access for hiring job applicant, as given by the press accounts. This data includes states, like South Carolina, Wisconsin, and Maryland. Few states are thinking to restrict access to only financial savvy jobs, or when any specific candidate is suspected of unacceptable financial dealings.

<i>Brenda Lyttle is a credit specialist, consumer advocate, and an Internet marketer currently living in Georgia. She aims to educate public about illegal collection tactics, credit scores, and debt management through her <a href=”http://www.idcredit.org/”>credit score</a> and credit report related sites.

Lyttle is a graduate from Columbus State University in Columbus, Ga., in 2004 with B.A. degree in English Literature. She has worked as a teacher in junior high school for two years before she decided to pursue credit advice full time, working with private clients, as well as getting involved in third party credit consulting.</i>

So you wish to fulfill your obligation of being a good American citizen and are thereby planning to pay your taxes on time. Great! But if the thought of paying taxes through your plastic money has crossed your mind, beware!

Although IRS suggests that paying taxes through your credit cards is a safe and convenient option, you must be smart enough to track that it isn’t really a cheap option. Listed below are the three primary reasons why you should avoid paying taxes through credit cards:

1. Additional Convenience Fee – IRS contracts few companies to deal with the payments they receive through credit cards, however these companies are not paid by the government for their services. Consequently, it’s you, the tax payer, who has to pay for their services. The convenience charge usually varies between 1.9% and 2.35% and depends on the credit card you are using, as well as the company you approach to make the payment. The company names along with the rates charged by them are given on the IRS website, here. For instance, a tax bill of $1000 can cost you a convenience fee of around $23.50, and this is excluding the interest rate that will be charged by your credit card company.

So, unless there really is no alternative and you are stuck in a financial emergency, credit card payment to pay taxes doesn’t make much sense. In a dire financial need, however you will be happy to know that your convenience fee is exempted from tax. This tax deduction is allowed only until a limit of two percent, so make sure you discuss this with your tax preparer before you proceed.

1. Interest May Accrue on Your Tax Payment – It’s common knowledge that if you do not pay your credit card bill due to any reason or simply forgets to pay it, within the grace period, interest on your tax would accrue over time, adding onto your misery. So, you will pay for your convenience fee, enormous interest rate of the credit card company, plus your tax amount. You will not even know when the next year arrives, and it will be time to make the tax payments again! Agree, some credit cards do provide you introductory offer like zero percent APR for the initial one year but still you will be paying the convenience fee extra. Aren’t the taxes that we already pay enough?

1. It May Signify a Warning to Your Credit Card Issuer – This may or may not be true for you but paying taxes through credit cards often leave an impression that you are undergoing a financial crisis. As a result, you are suddenly viewed as a credit risk. It reduces the amount available in your credit limit. The revolving utilization ratio on your card also decreases that impacts your credit score.

Due to this, your card issuer becomes finicky about your credibility of paying their bills on time. Consequently, you may have to bear their unjustified actions, like decrease in your credit limit, increased APR, et al. Hence, if by any chance you may have to make a credit card payment for your taxes, make sure that you pay them off without any delay to dispel the apprehension of your issuer.

In a nutshell, the cons of paying taxes with credit cards far outweigh the benefits they offer. It is thereby advisable to prefer the usage of other modes of payment to pay off your taxes and discard plastic money unless you have no other option left with you.

According to recent debt statistics, it has been seen that there is too much credit card debt that is bothering the debtors in the US. If you too are someone who has been spending sleepless nights due to the rising level of personal credit card debt level, you must be looking for some solid steps to get rid of the high interest debt burden. If you want to lead a peaceful life without the harassing calls from the collection agencies, you must take some vital steps on your own. Though credit card debt consolidation companies are there to help you with your unsecured debt burden, yet it is always better to take some do-it-yourself steps on your own so that you can save your dollars and value them. Have a look at the steps that you can take on your own in order to get out of debt.
 
1.    Resolve to spend less than what you make: Make it a fundamental habit to save money and spend less than what you make in a particular month. You must realize once and for all that you cannot get things that you can’t afford to pay now. Though you may be using more than 2 credit cards, yet whipping the plastics for every little purchase is not the way to go. Pay only for the things that you can do with cash and not with credit.
 
2.    Gather all the latest bills of all the accounts: You must gather the latest bills of your credit card debt accounts so that you get to know the exact amount that you have to repay your multiple creditors. Unless you know the amount, you can never devise a solid saving and spending plan in order to pay off your rising debt burden.
 
3.    Pledge to make more than the minimum monthly payment: Though the creditors may ask you to make just the minimum monthly payment on all your credit cards, you must make sure that you do not follow their words. These are just advices that can drown you into high interest debt as you may take a longer time to repay your debt burden. Try to make something more than the minimum monthly payment so that you may out of debt sooner, not have to pay too much as interest rates.
 
4.    Follow a frugal budget: The frugal budget is the best way to control your personal finances and without this you can neither plan your future financial goals nor pay down your credit card debt. Eliminate all unnecessary spending and spend your valuable dollars only on the things that you can’t do without.
 
5.    Negotiate with your creditors: You can also arbitrate with your creditors and tell them about your financial hardship. It often happens that if you tell them about your financial hardship, they can relax the terms and conditions on your credit cards, thereby expediting the repayment procedure.
 
Showing your creditors a well-planned budget may act as a catalyst in making them agree to a relaxed term on your credit cards. Instead of paying the professional credit card debt consolidation companies, you can certainly try do-it-yourself debt consolidation.

Not only national and household debt that are the major things of concern for the people in this nation, the amount of student credit card debt is also considered to be a major problem for the US students. As per reports, from the last quarter of 2010, the student credit card debt amount was gradually growing out of control and majority has been opting for debt consolidation. You may also be one of those students who’s knee deep in credit card debt. But, better not lose heart as there are various options through which you can pay off your student credit card debts.

Credit card consolidation options
 
There are different ways in which you can consolidate the credit cards that you had used while you were a student:

1. Taking out consolidation loan – You can obtain debt consolidation/credit card consolidation by taking out a consolidation loan. There are two types of consolidation loan – the secured and the unsecured consolidation loan. If you take out a consolidation loan, you may be able to consolidate the student credit cards you have and pay those off.

2. Opting for balance transfer – You can consolidate your student credit cards through balance transfer. Balance transfer is the process through which you transfer the balance from all the credit cards that have high interest rates to a new credit card that if offering you 0% interest on balance transfer. You will have to remember that it is important for you to pay off the whole debt amount within the offer period. Otherwise, once the offer period ends, the interest rate is going to rise and this is going to increase the debt amount too.

3. Getting credit card debt help – You can consolidate your student credit cards through a debt consolidation program. For that you will have to go to a credit card consolidation company, they will analyze your debt situation and help you budget. They will then negotiate with the creditor so as to lower the interest rates on the credit cards. Then you are supposed to make a large but single monthly payment to the credit card consolidation company. They will then forward the payment to your creditors. This can help you to become free of your student credit card debt.

So, if you are in credit card debt, you have the above discussed credit card consolidation or debt consolidation options through which you can become free of the dues. Thus, you will be able to pay off your student credit card debts in full and also improve your credit in the process.

If you have a credit report, which has generated a score below 600, then it is time that you consider repairing your credit score. It is very important that you have a good credit score in order to get your new loan requests granted. Your credit report is the judging parameter for a lender or bank to decide whether or not the loan request will be granted. Thus you should try your level best to repair your credit score.

How can credit card consolidation help you?

Most of the times your credit report is affected negatively when you default on your monthly payments that you have to make to pay off your debts. If you see that you’re able to make only the minimum monthly payments then you can opt for credit card consolidation. While consolidating your debts, you can take out a new loan at lower rate of interest and pay back all your original credit card debts. In this method, all your multiple debts are consolidated into a single monthly payment which is convenient to make and keep a track of. Also your interest rate on the new loan is less, which in turn ensures the monthly payments get reduced. Thus you save a lot of money in the long run. But in order to take out a loan at sufficient low rate of interest, you need to improve your credit ratings to some extent.
 
How can you improve your credit ratings?

These are some steps that you can take to improve your credit ratings.

1.    Dispute incorrect information – Many a times your credit report may have inaccurate negative information. It is necessary for you to evaluate your credit reports thoroughly and note down all the incorrect information which you need to dispute. These mistakes can either be attributed to clerical errors or wrong reporting by credit card company.

2.    Clear any unpaid judgements – It is important that you clear any outstanding judgements you have. Otherwise, this will keep hurting your credit till you have either paid it off or it falls after 7 years, whichever comes earlier.

3.    Checking your payment history – You should get current on delinquent accounts in order to improve your credit scores. You may also negotiate with your debt collectors to remove collection accounts and charge-offs from your credit report in return of certain sum of money.

If you take these necessary steps, then you can improve your credit score to some extent, which will help you take out a loan for credit card consolidation at suitable terms. Once you have paid all your debts through this loan, your accounts will be updated in your credit reports as “Paid in Full” and this may improve your credit score. 

Besides the financially savvy or those predispositioned to be accountants, who really enjoys making budgets?  No one!  If living paycheck by paycheck, worrying about paying your bills, coming up short, stress, and the inability to save for those higher ticket items such as vacations is a lifestyle you enjoy, by all means, skip the budget.  If your dreams, however, are greater than that, then making a budget is one evil that you cannot avoid.  

Do not be alarmed, the budget project is not as difficult as one might think.  A person’s budget starting point should always begin at income.  How much money is coming into your household?  Start with the total dollar amount as the top line item.  Next, list your bills as individual line items.  Go through your bank statements and check to see what the absolute most is that you spend on all of your bills.  Be sure to include water, sewage, natural gas, cable, phone, electric, entertainment, grocery, loan and credit card payments, charitable contributions, car and mortgage payments, insurance, gas, and anywhere else your money goes on a regular basis. 

After one determines where there money is going, they should then determine how much income they have left over.  It is important to only spend 90% or less than your monthly income; save the other 10% in an emergency fund.  Check for luxuries disguised as necessities, this may be where precious dollars can be saved.  For example, your cable could be reduced to a basic plan, or you could live without cable at all.  Is it really necessary to have a home phone and cell phones?  Also, be aware of unnecessary cash leakage.  It is easy for those little ATM fees to add up, or those 411 calls.  Stop handing your hard earned dollars over to fees and charges.

Last, do not count on year-end bonuses, and cost of living pay raises.  Bonuses are never guaranteed, and neither is employment.  Cost of living pay raises are for just that, inflation and ever rising gas prices.  Live off of what you make now, and anything else count as an extra blessing. 

If you need more budget assistance feel free to Contact us at Indianapolis Bankruptcy Attorneys

Marketing has been around since the first products were sold. Universities have offered advanced degrees in marketing for many years where the trends and techniques of advertising and promotions were isolated and studied for various brick and mortar businesses.

The internet has expanded the scope of marketing and also made marketing trends clearly visible even to non-experts. Marketing is about positioning your products for maximum sales.

Amazon Chase Credit Card Review

Amazon has taken a huge step in online marketing with introduction of the Amazon Chase Credit Card.

Amazon is a huge consumer marketplace where you can find almost any product you can think of. Not only will you find that product – you will find related products and competing products as well. The driving force behind Amazon’s amazing growth is the competitive pricing and free shipping on many of items sold.

Amazon moved quickly to partner with other online merchants and with offline manufacturers to provide an ever increasing range of products available to site visitors. For several years, the only competitive edge Amazon lacked was the option for buyers to use a payment method other than a credit card. The popular payment processor, PayPal, is owned by eBay which is Amazon’s biggest competitor.

Amazon’s response was to offer its own branded credit card through Chase.  Credit card account holders receive top bonus points when they use the card to make purchases on Amazon.com. Rewards can be purchase discounts or redeemed as cash back with 5000 points.

This card can be used for purchases anywhere a Visa card is accepted (which is almost anywhere in the world). For purchases at participating gas stations, restaurants and drugstores, you earn 2 points for every dollar spent when using the credit card. At all other merchants, the Amazon Chase credit card earns 1 point for each $1 charged.

However, if you are shopping on Amazon, you earn full 3 points for each dollar spent. When you receive your new credit card, your first purchase at Amazon will also reward you with a $30 credit on your credit account. That could easily pay for that first item you buy.

Two options are available – the Signature Card and the Platinum card. The Signature credit card account has the lower interest of 13.24% and is available to consumers with excellent credit ratings.

The Platinum card will have an APR of 18.24% or 21.24% depending on creditworthiness. Other fees on both Amazon Chase credit cards are similar to those offered throughout the credit lending industry today.

No annual fee

$10 or 5% transaction fee for balance transfers

$10 or 5% transaction fee for cash advances

$35 fee for returned payments or returned checks and for late payment

For the Signature Amazon Chase credit card there is no fee for going over the spending limit while the Platinum card has a $35 over limit fee assessed. Point earned can be used one you reach 2500 points which translates to approximately $830 spent on Amazon.

Advantages

With the number of products available on Amazon, it is possible to buy almost anything you need at a price high competitive and with free shipping included.

If shopping online is something you do frequently, bonus points can add up quickly.

Disadvantages

If you use credit responsibly there is no disadvantage to use of the Amazon Chase credit card. The terms are in line with offers from other credit issuing banks and the ability to accumulate points on a site you use frequently is a great option.

Summary

You can quickly build points or earn cash back with the Amazon Chase credit card. Most of the necessities we buy every day are sold at competitive pricing on Amazon’s website. High shipping costs may not be a consideration for most purchases as the majority of items on Amazon can qualify for free shipping.

This credit card can also be used for all other purchases you make from any merchant accepting the Visa logo. If you shop at Amazon and you want only one credit card, this is the perfect option for you.

Reputed to have over 50 million customers, the Capital One card is recognized as a credit card from a major lending institution.

What has Changed?

When new laws regulating how credit card companies conduct business with the public Capital One pulled many of its previous credit card offers off the market. This was not unusual as it was being done at the time by every major credit card lender. It didn’t long for Capital One to realign its credit business and the company was quick of offer new credit card offers to appeal to a vast audience of consumers.

No matter what type of rewards program you prefer, you will find it offered by Capital One. For both personal and business use, Capital Cards are heavy competitors in the credit lending marketplace. It seems no segment of the market is left unturned as even those with bad credit can obtain a Capital One credit card account.

Changes at Capital One

For several years, the marketing at Capital One was aimed at people who had less than good credit. While other lenders might focus on rewards or status of their credit cards, Capital One ads appealed to consumers those other banks might decline.

This greatly increased the number of customers using the Capital One card. However, a deepening recession led to a high number of defaults. After the new credit lending rules went into effect, Capital One began giving consumers information on the level of creditworthiness needed to obtain each of the Capital One cards.

This is a smart move as consumers can easily see whether fair, average, good or excellent credit is needed for any particular Capital One card. Decent credit ratings are required at Capital One. The lowest rating of “fair” refers to consumer with little credit but not to those with bad credit.

Rewards and Benefits

The flagship cards for Capital One today are the Venture Rewards credit accounts. The rewards program offers miles earned on every purchase made with the card. 10,000 bonus miles can be earned in the first three months if you charge $1000 to your new account.

Excellent credit is required and you can choose from a card with no annual fee or one with higher rewards and a $59 annual fee. An attractive feature is a lower than usual APR or 13.9% or 14.9%. There are two Platinum Capital One card options. The most popular requires good credit while the Prestige version carries a lower interest rate and is issued only to consumer with excellent credit.

If cash back is your favorite credit card reward program, the Capital One No Hassle Cash Rewards card is a good choice. With 2% cash back for gas and groceries, your credit can build quickly if you use this credit card for day to day necessities. There are two versions of the Capital One No Hassle credit card – one requires excellent credit while the second lists fair credit as a requirement.

There are two other Capital One card options for those with little credit history. The first is the Capital One Classic Platinum card. There is a 0% introductory rate and a $39 annual fee. The 19.8% variable APR reflects the higher risk of approving an account holder with less than good credit. There are no miles or cash back awards for this account but you can create your own card design.

The Capital One Student Rewards card requires fair credit as it is assumed a college bound students would not have built a credit file as yet. The cash back reward is 2% on restaurants, entertainment venues, cell phone bills (with certain providers) and books. All other purchases are awarded 1% cash back. There is no annual fee but the interest rate is exceptionally high at 24.9% variable APR.

If you are a student applying for your first credit card it is advisable to compare other offers for student credit cards with the Capital One card. Although the cash back benefit is attractive, the high interest rate may cancel out the benefit unless you are able to charge your purchases and pay for them in full each month.

Capital One Cards for Bad Credit

Many consumers today have bad credit due to high medical bills or job loss. Bad credit can keep you from renting an apartment or buying a car. You will be charged more for insurance and turned for loans if you have a bad credit rating. Bad credit is not insurmountable. Secured credit cards from Capital One are credit lines issued after you have placed funds in a savings account to guarantee your credit card.

You could fund a debit card purchased over the counter and use it like a credit card without placing several hundred dollars as a guarantee. However, the cash debit card will do nothing to improve your credit. With the debit card, you are only spending the money you have on the card. There is no interest rate and there is no risk for company issuing the card.

A secured credit card can rebuild your credit if the lender is one reporting to credit bureaus monthly. Capital One is such a lender. You will pay an annual fee and the interest rate will be close to 20% but will be able to overcome the bad items in your credit file in time as good payment reports override the black marks.

The Capital One Secured Master Card will help rebuild bad credit as the accounts are reported to the three major credit rating bureaus. Online tools are available to help you control your use of credit and plan your purchases. This card can be used just like any MasterCard and you may qualify for credit line increases in the future with no further deposit required.

Students who have damaged credit can obtain a secured Capital One card for young adults. This card is reported monthly to rating agencies and using it wisely can rebuild your damaged credit.

Summary

Capital One is one of the leading issuers of credit cards in the country. You can apply for the Capital One card you need and be confident of approval if you heed the credit requirements listed for each account.

This credit lender has a card to suit almost any consumer need. If you want to earn miles quickly, get cash rewards on everyday items or need to rebuild you credit, there is a Capital One card for you.

The way you use your credit cards has a huge bearing on your credit scores, so here are a few hints for using them to your best advantage.

First, pay attention to the elderly. Elderly credit cards, that is. Protect them even if you aren’t using them at the moment, because the longer your credit history the better your scores.

Since credit card issuers are now closing cards for non-use, be sure to take those old cards out and use them every 2-4 months. You don’t have to carry a balance or pay interest. Just make a small purchase and then pay the bill in full when it arrives.

This is a good practice for all of your credit cards, by the way. Those who don’t close your account could instead charge you an annual “inactivity fee.”

Pay down your accounts, but do it wisely. If your balance on one card is a higher percentage of use than on other cards, work first to pay that one down – even if it carries the lowest interest rate. Try to get all your balances under 30% of your credit line.

That means you should not consolidate high interest cards onto a low interest card unless you can do it without passing the 30% mark.

Yes, you’ll save on interest now, but if you’re going to need credit in the future, that savings will cost you in higher interest on future loans. 

A strange quirk in the credit scoring models looks at each of your credit card accounts individually. So while you might have $30,000 in available credit, if you owe $8,000 and put it all on one card with a $10,000 limit, you’ll lower your scores. The same amount spread among all your cards won’t hurt you.

Ask for credit limit increases. But when you get them, don’t use them. Your aim is to widen the gap between what you owe and your available credit.

Never apply for credit you don’t need, and don’t let retailers run your credit report unless you have made the decision to buy using their financing.

Shopping for the best deal is smart when you’re making a major purchase. But allowing every store to check your credit will pull your scores down quickly.

That means you should resist those in-store offers of 10% off today’s purchases when you apply for their credit card. That 10% could cost you far more than your savings on today’s purchases.