by Joshua Heckathorn for Creditnet.com
It really is a classic Catch-22. You've got to have credit to get credit. So if you have no credit history at all, how should you go about building a good credit score from scratch?
The tactics will vary depending upon your personal circumstances, but several proven methods are sure to get anyone started in the right direction. If you just don't know where to begin, try the following three tips first.
1. Get a Secured Credit Card from Your Bank
Ask your bank where you have a checking account if they offer secured credit cards. Chances are they do, and secured cards are one of the best options for individuals building or rebuilding their credit histories.
They're called "secured" credit cards because your credit limit is secured by the amount you deposit in cash with the creditor. For example, if you deposit $1,000 in cash, then your credit limit will be $1,000. And since you have basically pre-paid for the maximum amount you may charge to the card, the creditor is guaranteed you will never miss a payment.
In return, most banks will report your activity on a monthly basis to the credit bureaus just as they would for an "unsecured" credit card.
2. Piggyback on Someone Else's Good Credit
Piggybacking is a technique that allows consumers with good credit to help boost other's credit scores by adding them as authorized users on accounts. If you haven't heard the term before, it's not a new thing by any means.
Parents have used the technique for a long time to help their children build solid credit while young. So, if you have a spouse, relative, or close friend with good credit who is willing to add you as an authorized user on his or her account, you're in luck!
This may be the fastest way to establish a credit history without actually securing a credit card in your personal name.
3. Carefully Choose & Use a Retail Credit Card
All of us have been bombarded with retail credit card offers at stores like The Gap, Express, or Banana Republic. Does the phrase "Would you like to get 10 percent off your purchase today" sound familiar?
You may be programmed to always says "No", and that's okay. But while retail credit cards generally carry very high interest rates, low credit limits, and other penalties the cashier won't tell you about on the spot, these credit cards are still much easier to obtain if you have limited credit history or none at all.
However, be sure to choose your card carefully, keep your credit utilization low, and pay your balance in full and on-time each month. If you do, a retail credit card can be an excellent way to build good credit history when there aren't many other options at your fingertips.
Unfortunately, today's lenders depend almost exclusively on your credit reports and credit scores to determine whether you will receive credit and at what rates and terms. So, you're fooling yourself if you think your credit score is something you don't need to consistently monitor and develop.
The truth is, establishing a good credit history at the youngest possible age has never been as important as it is today. Doing so will not only save you plenty of headaches in the long run, but your pocketbook will thank you as well.
Don't waste any more time procrastinating. Follow these three tips today and begin your journey to excellent credit on the right path.
Friday, April 6, 2012
Tuesday, March 6, 2012
Tips to Prevent Credit Card and Identity Theft
by: Debbie Dragon
70 plus million people this year will have their identity compromised. Credit card and identity theft is actually one of the fastest growing crimes in our country. Every month people open their credit card bills and bank statements to find fraudulent activity. There are a number of things you can do to protect yourself. By following the tips in this article, you can hopefully protect yourself from becoming a statistic.
Always keep track of your credit card and bank cards. Know where they are at all times. Only carry cards with you that you use often. Leave other cards in a safe place at home.
Always get a receipt and immediately double check it. Verify that the receipt is correct and nothing has been added to it. Only give out your credit card information to reputable companies. Never give your credit card information to someone over the phone unless you were the one to make the call and you are absolutely certain the company you are dealing with is legitimate. Beware of phone call scams where people will try to get you to give them your credit card number over the phone for some type of verification.
As soon as you receive your bank and credit card statements each month open them and carefully look them over. If there is any suspicious activity call the company immediately to report the fraudulent charges. Almost all credit card companies have 24 hour phone lines so that you can report card emergencies any time day or night.
Shred your bank statements and credit card statements; never just toss them in the trash. Do the same thing with your credit card receipts.
Never share your personal information at on-line social networks, like Facebook for example. Identity thieves look for information they can use like your address, place of birth, etc.
If you receive credit card applications in the mail that you are not going to use, shred them immediately. Identity thieves can take the applications, and with the right information may be able to apply for and get a card in your name without you knowing it.
Never write down your pin number and keep it anywhere near you credit or debit card. Some people will write their pin number right on the card or keep it on a piece of paper in their wallet. This is obviously a big no no.
As soon as you get a new card sign it. If it is replacing an existing card, shred the old one immediately.
Don’t ever let anyone borrow your credit cards, even someone you really trust. You never know what could happen.
Be careful when using atm machines. Make sure you are using a legitimate machine and be careful of lurkers that could be trying to get your information. Make sure you are aware of your surrounding and use your body to cover as you type in your pin number and are accessing your bank information.
If you are planning to move, be sure to notify your credit card company, preferably before you move.
Unless you use them, call and ask your credit card company to not send you blank checks in the mail. These can easily be stolen by identity thieves.
If you do suspect that you are a victim of credit card or identity theft, know your rights. US law protects consumers, and once you have reported to your credit card company of loss or theft of your card, you are not responsible for any unauthorized charges. Under federal law you are only liable up to $50.00 for each card. Most credit card companies work with their customers who have had compromised accounts and will not even charge them the $50.00 the law allows them to.
70 plus million people this year will have their identity compromised. Credit card and identity theft is actually one of the fastest growing crimes in our country. Every month people open their credit card bills and bank statements to find fraudulent activity. There are a number of things you can do to protect yourself. By following the tips in this article, you can hopefully protect yourself from becoming a statistic.
Always keep track of your credit card and bank cards. Know where they are at all times. Only carry cards with you that you use often. Leave other cards in a safe place at home.
Always get a receipt and immediately double check it. Verify that the receipt is correct and nothing has been added to it. Only give out your credit card information to reputable companies. Never give your credit card information to someone over the phone unless you were the one to make the call and you are absolutely certain the company you are dealing with is legitimate. Beware of phone call scams where people will try to get you to give them your credit card number over the phone for some type of verification.
As soon as you receive your bank and credit card statements each month open them and carefully look them over. If there is any suspicious activity call the company immediately to report the fraudulent charges. Almost all credit card companies have 24 hour phone lines so that you can report card emergencies any time day or night.
Shred your bank statements and credit card statements; never just toss them in the trash. Do the same thing with your credit card receipts.
Never share your personal information at on-line social networks, like Facebook for example. Identity thieves look for information they can use like your address, place of birth, etc.
If you receive credit card applications in the mail that you are not going to use, shred them immediately. Identity thieves can take the applications, and with the right information may be able to apply for and get a card in your name without you knowing it.
Never write down your pin number and keep it anywhere near you credit or debit card. Some people will write their pin number right on the card or keep it on a piece of paper in their wallet. This is obviously a big no no.
As soon as you get a new card sign it. If it is replacing an existing card, shred the old one immediately.
Don’t ever let anyone borrow your credit cards, even someone you really trust. You never know what could happen.
Be careful when using atm machines. Make sure you are using a legitimate machine and be careful of lurkers that could be trying to get your information. Make sure you are aware of your surrounding and use your body to cover as you type in your pin number and are accessing your bank information.
If you are planning to move, be sure to notify your credit card company, preferably before you move.
Unless you use them, call and ask your credit card company to not send you blank checks in the mail. These can easily be stolen by identity thieves.
If you do suspect that you are a victim of credit card or identity theft, know your rights. US law protects consumers, and once you have reported to your credit card company of loss or theft of your card, you are not responsible for any unauthorized charges. Under federal law you are only liable up to $50.00 for each card. Most credit card companies work with their customers who have had compromised accounts and will not even charge them the $50.00 the law allows them to.
Wednesday, February 8, 2012
Everything About 0% Intro Rate Credit Cards
Tired of reading review after review about 0% APR intro rate credit cards? Having no luck when it comes to finding an all-in-one-review about 0% APR intro rate credit cards? Confused with what you've read so far about 0% APR intro rate credit cards because everything seems to be contradictory? Well, look no more because this article is indeed what you're looking for.
In here, you'll learn everything you want to know about 0% APR intro rate credit cards. In this article, you may also discover more than you bargained about 0% APR intro rate credit cards - in a good way, of course. Ready for Lesson Number One about 0% APR intro rate credit cards? Well, here goes.
It's True - Yes, 0% APR intro rate credit cards do exist and if we have our way about it, you'll be one of the lucky people to qualify for a 0% APR intro rate credit cards.
The Application Process - Applying for any credit card, whether it's for 0% APR intro rate credit cards or for credit cards offering reward points is always a tad difficult so don't expect overnight success, especially since you're angling for 0% APR intro rates.
The application process for a 0% APR intro rate credit card starts with submitting the necessary documents - this is SOP for all credit card applications - that would substantiate your contact details and give them an overview about your present financial status. Upon submission of the usual documents, depending on your income level and credit reputation, you may be contacted by the credit company and asked to submit additional documents.
The Qualifications for 0% APR intro rate credit cards - Basically, if you want to have 0% APR intro rate, you must have a squeaky clean credit reputation. That means having a reputation of paying debts promptly, not owing too much from the bank, not having high balances on your other credit cards, not having too much mortgages under your name and not having so many people requiring a credit check on you.
If you're not sure whether you qualify for a 0% APR intro rate credit card, simply approach the nearest credit bureau and request for a copy of your credit report. The details in your credit report can easily tell you if you've a good shot of owning a 0% APR intro rate credit card or not. People with FICO scores equal to 650 or more are more or less guaranteed of having their application approved.
Author Bio
Michael Colucci is a technical writer for Low Interest Credit Cards - A site that offers credit cards with an intro rate of 0% for 12-15 months.
In here, you'll learn everything you want to know about 0% APR intro rate credit cards. In this article, you may also discover more than you bargained about 0% APR intro rate credit cards - in a good way, of course. Ready for Lesson Number One about 0% APR intro rate credit cards? Well, here goes.
It's True - Yes, 0% APR intro rate credit cards do exist and if we have our way about it, you'll be one of the lucky people to qualify for a 0% APR intro rate credit cards.
The Application Process - Applying for any credit card, whether it's for 0% APR intro rate credit cards or for credit cards offering reward points is always a tad difficult so don't expect overnight success, especially since you're angling for 0% APR intro rates.
The application process for a 0% APR intro rate credit card starts with submitting the necessary documents - this is SOP for all credit card applications - that would substantiate your contact details and give them an overview about your present financial status. Upon submission of the usual documents, depending on your income level and credit reputation, you may be contacted by the credit company and asked to submit additional documents.
The Qualifications for 0% APR intro rate credit cards - Basically, if you want to have 0% APR intro rate, you must have a squeaky clean credit reputation. That means having a reputation of paying debts promptly, not owing too much from the bank, not having high balances on your other credit cards, not having too much mortgages under your name and not having so many people requiring a credit check on you.
If you're not sure whether you qualify for a 0% APR intro rate credit card, simply approach the nearest credit bureau and request for a copy of your credit report. The details in your credit report can easily tell you if you've a good shot of owning a 0% APR intro rate credit card or not. People with FICO scores equal to 650 or more are more or less guaranteed of having their application approved.
Author Bio
Michael Colucci is a technical writer for Low Interest Credit Cards - A site that offers credit cards with an intro rate of 0% for 12-15 months.
Friday, February 3, 2012
Costly Credit Card Mistakes to Avoid
by: Debbie Dragon
For many people, using credit cards is a way of life. Most people today instead of carrying around cash carry around plastic. It certainly is easier and more convenient. While many people use their credit cards wisely, others are not so careful. If you do not pay close attention you could find yourself buried in unwanted credit card debt and unwanted credit fees. This can cause unwanted stress. Here are some tips to help you avoid credit card pitfalls.
First, make sure you know your due date. With the new credit card regulations this will be easy as your credit card bill must now be due the same day each month. Most credit card companies offer an email reminder that is sent to you just a few days before your due date. If you are known for missing payments this is a good thing to sign up for. Writing the due date on your calendar is another helpful way to remind yourself not to miss your payment.
Another option with many credit card companies offer is to set up automatic payments from your checking account each month. As a word of caution, if you choose this option make sure that you have the money in your account the day it will be taken out. Repercussions of missing your due date are severe. You will rack up late payment fees and interest charges. This in turn can affect your credit report and score. If you always pay your bill on time and miss once, call your card holder immediately. Sometimes they will reverse the fee and interest charges one time for you.
The second credit card mistake to avoid is not paying your balance in full each and every month. This seems to be the biggest pitfall that credit card holder make each month. When you don’t pay you bill in full each month you get charged interest finance charges. You then have to start digging yourself out of the black hole of what is known as credit card debt.
Simple common sense can help you avoid this costly credit card mistake. Don’t charge more than what you can truly pay off each month. While it is so easy to say I will pay for it later, you must avoid this at all costs if you want to use your credit card wisely. Only charge what you need and what you have budgeted for. Setting up a simple monthly expense budget can be very helpful in avoiding this credit card mistake.
A third credit card mistake to avoid is ignoring your credit card debt. So many people each month pull out their plastic without a thought in the world and spend uncontrollably. Before they know it they have thousands of dollars in credit card debt and instead of taking control they spend more and avoid the problem.
If you have racked up credit card debt, the sooner you take control the sooner you can wipe it out and live a less stressful life. Following the above tips will get you a start on not racking up more debt. Coupled with that you will need to develop a plan to start paying off what you have charged. A monthly budget is a great first step. Giving up luxuries for awhile and instead paying down your debt each month is a great way to start.
Many find that in order to get control that they need to give up using their plastic all together, at least until they have paid off what they owe. Still others are so buried, they find it easiest to seek professional help. If you are in credit card debt, no matter what method you choose to get out, it will be worth it.
For many people, using credit cards is a way of life. Most people today instead of carrying around cash carry around plastic. It certainly is easier and more convenient. While many people use their credit cards wisely, others are not so careful. If you do not pay close attention you could find yourself buried in unwanted credit card debt and unwanted credit fees. This can cause unwanted stress. Here are some tips to help you avoid credit card pitfalls.
First, make sure you know your due date. With the new credit card regulations this will be easy as your credit card bill must now be due the same day each month. Most credit card companies offer an email reminder that is sent to you just a few days before your due date. If you are known for missing payments this is a good thing to sign up for. Writing the due date on your calendar is another helpful way to remind yourself not to miss your payment.
Another option with many credit card companies offer is to set up automatic payments from your checking account each month. As a word of caution, if you choose this option make sure that you have the money in your account the day it will be taken out. Repercussions of missing your due date are severe. You will rack up late payment fees and interest charges. This in turn can affect your credit report and score. If you always pay your bill on time and miss once, call your card holder immediately. Sometimes they will reverse the fee and interest charges one time for you.
The second credit card mistake to avoid is not paying your balance in full each and every month. This seems to be the biggest pitfall that credit card holder make each month. When you don’t pay you bill in full each month you get charged interest finance charges. You then have to start digging yourself out of the black hole of what is known as credit card debt.
Simple common sense can help you avoid this costly credit card mistake. Don’t charge more than what you can truly pay off each month. While it is so easy to say I will pay for it later, you must avoid this at all costs if you want to use your credit card wisely. Only charge what you need and what you have budgeted for. Setting up a simple monthly expense budget can be very helpful in avoiding this credit card mistake.
A third credit card mistake to avoid is ignoring your credit card debt. So many people each month pull out their plastic without a thought in the world and spend uncontrollably. Before they know it they have thousands of dollars in credit card debt and instead of taking control they spend more and avoid the problem.
If you have racked up credit card debt, the sooner you take control the sooner you can wipe it out and live a less stressful life. Following the above tips will get you a start on not racking up more debt. Coupled with that you will need to develop a plan to start paying off what you have charged. A monthly budget is a great first step. Giving up luxuries for awhile and instead paying down your debt each month is a great way to start.
Many find that in order to get control that they need to give up using their plastic all together, at least until they have paid off what they owe. Still others are so buried, they find it easiest to seek professional help. If you are in credit card debt, no matter what method you choose to get out, it will be worth it.
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